QBE has flagged its lenders mortgage insurance (LMI) as an avenue for future growth in its Australia Asia Pacific operations.

In 2010, the LMI business recorded gross earned premium of $US342 million ($336 million), which represented 9.2% of the gross premium earned in the Asia Pacific operation.

This was up 76% from $US194 million ($191 million) in 2009, which represented a 7.5% contribution to its 2009 gross earned premium.

Group CEO Frank O’Halloran told last week’s investor briefing that this represents a strong performance with an improved claims ratio.

He says the division, which has a strong presence in the Australian and Hong Kong markets, is poised for future growth in Asia, with the Singapore market a potential target.

“We need to be satisfied that the business in other markets would not be dissimilar to what we do in Australia and Hong Kong,” Mr O’Halloran said.

QBE LMI was formed from the acquisition of the Australian operations of US-based PMI Group in 2008 for $US920 million ($905 million) and the acquisition shortly after of PMI’s Asia business for $US55 million ($54 million).