US-based insurer Genworth is targetting “the fourth quarter of this year or later” for an initial public offering (IPO) on its Australian mortgage insurance business, but says it will keep a close eye on market conditions.

“Overall, the Australian IPO market has seen some improvement but uncertainty regarding recent outlooks in the mining sector and from China make us cautious,” President and CEO Tom McInerney told an earnings briefing.

“We will continue to monitor the market as we move through the second half of the year and we intend to proceed with the IPO if it makes sense for shareholders.”

US-based Genworth has already delayed the IPO on up to 40% of the mortgage insurance business.

The Australian operation posted net operating earnings of $US55 million ($61 million) in the second quarter, up from $US44 million ($49 million) in the second quarter last year.

Premiums grew 3%, new insurance written gained 7% and the loss ratio fell 19 points.

Genworth’s overall second-quarter net profit grew to $US141 million ($156 million) from $US76 million ($85 million).

“We are beginning to see good results from our efforts to improve the operating performance of the business,” Mr McInerney said.

The global mortgage division’s net operating income doubled to $US102 million ($113 million), while US life insurance earnings grew 23% to $US79 million ($87 million).

US mortgage insurance net operating income was $US13 million ($14 million), up from a loss of $US25 million ($28 million) in the second quarter last year but down from $US21 million ($23 million) in the first quarter of this year.