Fitch has affirmed Westpac Lenders Mortgage Insurance’s (LMI) insurer financial strength rating at AA- with a stable outlook.

The affirmation reflects the business’ “solid financial profile, which includes a robust stand-alone capital position and conservative investment approach”, Fitch says.

Westpac LMI also has a strong track record in terms of its operating and underwriting performance, according to the ratings agency.

Fitch says Westpac LMI has the capital buffer to ride out severe downturns, and in the worst-case scenario it will have the support of Westpac for any recapitalisation exercise.