Mortgage insurer Genworth has impressed investors with a 40 per cent rise in first half profit and forecasts of further growth.
Shares in the company, which provides insurance for a range of banks and other mortgage lenders, jumped by nearly 10 per cent after it unveiled an underlying profit of $133 million.
The result was the first it had reported to investors since making its stock market debut in May.
The insurer also flagged a full year profit of between $231 million and $250 million.
Genworth said the strength of the housing market during the past 12 months meant fewer loans had been placed in arrears, which reduced the number of claims the company received.
Genworth's gross written premium rose almost 15 per cent to $313.6 million in the first half after increasing prices and signing up more customers.
Chief executive Ellie Cornerfield said the company was in a good position heading into the second half.
"The performance is marginally ahead of our expectations and positions us well for the remainder of the 2014 financial year," she said.
Genworth shares closed 32 cents higher at $3.59, their highest point since listing.
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