Mortgage insurer Genworth has reported a near 30 per cent drop in full year profit as tighter lending requirements put pressure on the company's core business.
The insurer's total net profit for the year to December 31 declined to $228 million, linked to a decrease in the value of its fixed-security investments.
However, its underlying profit fell 5.3 per cent to $264.7 million.
"High loan-to-value ratio lending as a proportion of total mortgage originations has reduced recently in response to tightened lender risk appetite. We expect this to lead to a lower level of new insurance written in 2016," chief executive Georgette Nicholas said.
The company will pay a fully franked ordinary dividend of 14 cents plus a special dividend of 5.3 cents.
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