Genworth Financial’s Australian division stepped up in the September quarter, with net operating income from its mortgage insurance business rising 58% to $US57 million ($54.77 million), compared with $US36 million ($34.59 million) in the previous corresponding period.

However, the mortgage and life insurer may again postpone the $800 million sale of 40% of the Australian business, due earlier this year but initially rescheduled to the first quarter of next year.

“Adverse market or other conditions might further delay or impede the planned IPO of the company’s mortgage insurance business in Australia,” Genworth says in its third-quarter earnings statement.

The Australian income stemmed from mortgage insurance exposure flows of $US8.8 billion ($8.45 billion), up from $US7.1 billion ($6.82 billion) in the previous corresponding period. There was an improved Australian claims position, with the loss ratio falling to 0.47% from 0.54% in the second quarter.

Australian mortgage repayment delinquencies were down 10% on the second quarter, falling in all states.

Victoria, with 23% of Genworth’s Australian exposures, had the lowest delinquency rate – 0.34%. NSW, with 30% of exposures, had a 0.45% rate, while Queensland, with 23% of exposures, had a 0.69% rate following a spate of natural disasters. In the first quarter of this year coastal Queensland’s delinquency rate hit 1.13%.

New business in Australia was 30% above levels achieved a year ago. The Australian regulatory capital ratio was 136% at the end of the third quarter and book value of the business under international accounting rules was $US2.3 billion ($2.21 billion).

Genworth Financial’s overall result was stronger, with net operating income at $US121 million ($116.29 million), compared with $US62 million ($59.58 million) in the previous corresponding period.

“Steady improvement in our operating results in the global mortgage insurance division and stable underlying performance in the insurance and wealth management division increased total net operating income both year over year and sequentially again this quarter,” Acting CEO Martin P Klein says in the report.

In the US, life business operating income was $US86 million ($82.65 million), down from $US103 million ($98.97 million). The global mortgage insurance division earned net operating income of $US56 million ($53.8 million), compared with a $US11 million ($10.57 million) loss in the previous corresponding period.

Genworth’s US holding company and life operation have recently been downgraded to BBB- by Standard & Poor’s – leaving their debt just one step above junk status – because of concerns about the US mortgage market. The Australian business had its outlook, but not its rating, downgraded in response.