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Genworth Mortgage Insurance’s revenue dropped after the company changed its premium earning pattern review.
The company said yesterday (7 February) that its full-year net earned premium fell by 18% to $370.5m for the 12 months to December 2017, in line with its guidance.
The leading LMI provider modified its earning pattern review amid slowing house price growth. It had said earlier that the change reflected its expectation of risks, including losses from resource regions.
Gross written premiums went down by 3.4% to $369m as banks tightened risky lending activities following restrictions from APRA on investment property lending and interest-only loans.
The company said the decline in gross written premiums reflects changes in the customer portfolio.
Its full-year statutory net profit after tax was $149m, down by more than 26% from $203m a year ago.
Chief executive Georgette Nicholas said the housing market conditions are likely to ease further this year as prudential measures continue to take effect and record levels of new housing supply come to the market.
She expects the housing markets of Sydney and Melbourne to moderate, while regional markets – particularly resource states – will face continued pressure.
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