Fitch Ratings has affirmed its AA- rating with a stable outlook on Westpac Lenders Mortgage Insurance (WLMI).

The agency says its rating reflects the company’s solid financial profile, robust stand-alone capital position and conservative investment approach.

“WLMI’s operating performance has been strong and built on the back of a historically prudent approach to underwriting and risk acceptance.”

Fitch says the company’s risk profile continues to improve.

In 2009 WLMI stopped insuring mortgages with loan-to-valuation ratios above 90%. Last year its reinsurance quota share arrangement was expanded, so 60% of all new risks are ceded to reinsurers.

Although lower premium volumes and higher claims expenses have hit WLMI’s profits, its loan portfolio remains profitable, according to Fitch.