Retirement funding specialist firm Household Capital has announced it has completed a corporate action that has seen Genworth Financial Mortgage Insurance become a strategic business partner.
The new arrangement has resulted from the completion of Household Capital’s $37.6 million Series C fundraising and means both Genworth and Legal & General UK are both investment partners in the organisation.
According to Household Capital chief executive Joshua Funder, completing the capital raising exercise has strengthened the company’s ability to assist Australians fund their own retirement years.
“Genworth understands Australia’s home ownership market and has deep expertise in mortgage and risk evaluation,” Funder said.
“Home equity retirement funding plays a critical role in meeting the needs of an ageing population, particularly as many Australian retirees have insufficient funds in their pension accounts because compulsory superannuation payments by employers only started in 1992.”
Genworth chief executive Pauline Bright-Johnston noted the deal marks an important step in achieving the aim of accelerating Australians’ financial well-being through home ownership.
“Genworth is committed to helping Australians through a range of solutions along all stages of their property journey. Our strategic partnership with Household Capital, together with Legal & General UK’s deep expertise in equity release, will enable us to deliver on this commitment to Australia’s retirees,” Bright-Johnston noted.
Funder confirmed the new partnership will allow Household Capital to increase its foothold in the country’s home equity retirement funding market.
“There are currently around 5 million Australians, or about a fifth of the population, who are retired and this group has more than a $1 trillion in home equity available today,” he acknowledged.
“Home equity is the missing link in the nation’s retirement funding system. We work closely with financial advisers and brokers to deliver their clients access to capital and enhanced income in retirement.”
The move will also see Genworth new ventures chief commercial officer Lisa Griffin appointed to the Household Capital board of directors.