Genworth Mortgage Insurance Australia’s net profit fell by almost half last year to $75.7 million, hit by tighter credit standards, interest rate rises and the moderating housing market.

New insurance written dropped 7.1% to $22.2 billion and net earned premium fell 24.1% to $281.3 million. The loss ratio worsened to 51.9% from 38.3% the previous year, and the combined operating ratio weakened to 85.4% from 67.5%.

Despite the result, Genworth says it is on the right track as it pursues a program it began in 2017 to redefine the operating model.

“We are operating in a dynamic market subject to technological, regulatory and competitive changes,” CEO Georgette Nicholas said.

“Within this environment, lender and customer expectations are evolving. To address these expectations and to enable us to compete effectively, we commenced a strategic program… to leverage our existing core competencies in managing credit default risk and position.”