Big mortgage insurer bought by big insurer
Mortgage insurer PMI Australia and New Zealand, and its sister business in Hong Kong, are being bought by QBE insurance in a deal believed to be worth about $1 billion. Operating since the late 1960's PMI writes about 40 per cent of residential mortgage insurance in Australia. In Hong Kong, it is one of five authorised reinsurers to the region's Mortgage Corporation – which has 85 per cent of the market. QBE said that if PMI was to face claims of $1 billion over a three-year period, it would have enough of its own insurance cover and could claw back sufficient funds from the deal's delayed $200 million payment to make up for any losses.
Source: Sydney Morning Herald