Genworth Mortgage Insurance Australia has reported an 83.9% decline in first-quarter net profit and announced plans for a share buyback of up to $100 million.

Net profit declined to $8.4 million from $52.2 million in the corresponding period last year, but gross written premium (GWP) more than doubled to $174.1 million.

CEO and MD Georgette Nicholas says the March-quarter results reflect initiatives to “redefine” the core business model and an $11.5 million loss on the investment portfolio.

“We reiterate that [this] will be a transitionary year for our business… having said that, we are making good progress in redefining our core business model,” Ms Nicholas said.

“The increase in GWP we reported this quarter is indicative of the opportunities we have to grow our business by offering customers a broader suite of complementary capital and risk management solutions.”

New insurance written fell 36.8% to $4.3 million in the quarter and net earned premium declined 37.5% to $67.4 million. The loss ratio deteriorated to 55.9% from 34.8%, and the combined operating ratio worsened to 89.5% from 60.1%.

The share buyback is subject to shareholder approval at the annual general meeting on Thursday.