Genworth Australia’s mortgage insurance operating profit grew to $US62 million ($60.36 million) in the fourth quarter of last year, up 15.5% from $US54 million ($52.57 million).

Overall, the international group reported net operating income of $US166 million ($161.6 million) for the quarter, up 34.6% on the previous corresponding period.

The global mortgage insurance division contributed an operating profit of $US131 million ($127.52 million), up from a $US13 million ($12.7 million) loss in the fourth quarter of 2011. US life insurance operating profit fell 19.2% to $US76 million ($73.98 million).

International protection’s operating profit grew to $US8 million ($7.78 million) from $US5 million ($4.86 million), while wealth management’s dropped 33% to $US8 million ($7.78 million).

The corporate division’s losses worsened to $US64 million ($62.3 million) from $US49 million ($47.70 million) in the previous corresponding period.

In the Australian mortgage market, delinquencies improved by six basis points to 0.41%.

Mortgages insured before the global financial crisis continue to be the worst-performers with a delinquency rate of 0.94% – an improvement on 1.25% in the fourth quarter of 2011.

Delinquencies in catastrophe-hit coastal Queensland improved to 0.82% from 1.13%.

Victoria had the lowest delinquency rate at 0.31%, followed by WA on 0.38%, NSW at 0.39% and Queensland at 0.57%. In other regions the average was 0.38%.

Some 878 claims were paid in the quarter at an average of $81,000, up from 438 at an average of $65,000.

The Australian mortgage insurance ratio stands at 149%, and the book value is $US2.3 billion ($2.17 billion).

The Australian loss ratio fell to 36% from 46% in the previous corresponding period; the US ratio dropped to 131% from 189% and Canada’s fell to 31% from 40%.

Genworth’s suffering in the American mortgage insurance market is greatly diminished.

US losses were $US34 million ($33.09 million), while the rest of the world delivered a $US165 million ($160.62 million) profit. This follows a 2011 fourth-quarter loss of $US96 million ($93.45 million) in the US and an $US83 million ($80.8 million) profit internationally.

Overall, mortgage delinquencies in the US fell to 16,274 from 36,221 in the fourth quarter of 2008.

Genworth was expected to float 40% of its Australian business for $800 million in the first half of this year.

However, Australian CFO Paul Fegan says the raising may be delayed until at least the fourth quarter. The float was initially planned for early last year.