Genworth Financial in Australia has hired Bank of New York Mellon (BNY Mellon) as custodian of its $3.1 billion insurance portfolio.

Australia’s largest mortgage insurer chose the US bank over incumbent custodian JP Morgan to service its portfolio of Australian fixed income securities, says a person familiar with the matter who requested anonymity. The portfolio helps Genworth meet its insurance liabilities and the liquidity requirements set by the prudential regulator.

As domestic sub-custodian for BNY Mellon, National Australia Bank (NAB) will profit from the deal by providing services that include settling transactions, processing payments and reporting for the Genworth portfolio. The Wall Street bank outsources the custody of clients’ Australian-domiciled assets to NAB because it does not operate a domestic master custody business.

BNY Mellon is custodian for Genworth in the US, where the Richmond, Virginia-based company holds about US$100 billion in assets. JP Morgan became custodian for the Australian business in February 2007 but in 2009 the parent company decided to shift these duties to BNY Mellon.

In Australia Genworth has 50 per cent market share of the mortgage insurance market and has underwritten about $300 billion of Australian mortgages since 1965, according to the company’s website.

A Genworth spokesman declined to comment on the change of custodian.

Simon Mumme became a fnancial journalist through a stroke of luck. Upon graduating with a Master of Journalism from The University of Queensland in 2006, he set out to fnd a news organisation that would employ him as an overseas correspondent or business reporter. Or both, ideally. Conexus Financial hired the bright-eyed cadet, and in the ensuing years he wrote for all of its titles until being appointed editor of Investment Magazine in June 2010. Under his guidance, the magazine continues to dominate the Australian institutional investment media through its authoritative, insightful and engaging feature stories and analysis. Outside of work, Simon trains keenly in Muay Thai kickboxing, revels in the surf breaks fringing the Sydney coastline and reads as much high-quality journalism and non-fiction writing as he can. Committed to his role as a niche business reporter, Simon is aware that an overseas posting as a correspondent still eludes him. He hopes Conexus can help him with that career goal too.
Leave a comment