Genworth Mortgage Insurance has continued to feel the pressure of regulatory intervention in the home loan market with a 31.3 per cent fall in third-quarter profit.
The insurer on Friday said net profit for the three months to September 30 fell 31.3 per cent to $32.1 million, with net earned premium - a key measure of profitability - dropping 13.6 per cent compared to the prior corresponding period.
The company had already reported a 35 per cent fall in first-half profit.
Genworth reiterated its guidance for a 10-15 per cent full-year decline in net earned premium, citing the impact of investor loan rate rises, regulatory limits on interest-only lending, and elevated mortgage delinquencies in Queensland and WA.
"House price growth continues to moderate following regulatory measures to slow the growth in investment lending and limit the flow of new interest-only lending," Genworth said in a statement to the ASX.
"Mortgage interest rate increases, particularly for investor and interest-only loans, and recent changes to minimum bank equity requirements may also impact price growth this year."
The Australian Prudential Regulation Authority has told lenders to restrict annual growth in investor lending to 10 per cent, and to limit interest-only home loans to 30 per cent of new lending.
Genworth, which provides lenders mortgage insurance for National Australia Bank's broker business, experienced a 10.9 per cent fall in full-year profit in 2016.
Shares in Genworth have fallen almost 20 per cent since February, when it warned under-employment and subdued wage growth was likely to lead to a rise in loan delinquencies in regional Australia.
Chief executive Georgette Nicholas warned at the time that the 2017 full-year loss ratio was expected to widen to 40-50 per cent, but Genworth on Friday flagged a ratio of between 35 and 40 per cent.
It was 35.1 per cent in 2016.
