Risk in force grew by about $3 billion or little over 2% from the previous quarter. This is a slower growth rate from previous quarter, but could be seasonal. They are certainly still writing alot of new policies an probably prudent to conserve capital anyway.
I read on web site that RIF in Australia is actually much higher than America. the Australia business is larger than the U.S.? Or am i interpreting this wrong.
Australia typically has full coverage on their insurance whereas the U.S. typically has Down-to coverage which is, on average, about 25-40% of the total insurance.
Since the sale of the home yields between 50-80% of the original property value in both countries, the listed RIF on a full cover insurance policy is 100% of the loan, but, depending on the LTV, the realistic RIF could be much lower (between 35-55%).
Therefore the Australian RIF is overstated. It's best to look at revenues, because the premium on 100% full coverage is only marginally higher than the premium on Down-To 40%.