Genworth Mortgage Insurance Australia’s net claims incurred grew 51% to $75.4 million in the half-year to June 30, as loan delinquency increased.

Queensland and WA are among the worst-affected areas, as the states struggle in the post-mining boom era.

The delinquency rate increased to 0.43% in the half from 0.4% in the corresponding period last year.

The number of delinquencies stood at 6413 at the end of June, up from 5900 a year earlier.

“An increase in new delinquencies, particularly in Queensland and WA, lifted the portfolio delinquency rate,” Genworth said.

“The overall portfolio continues to be supported by strong performance in NSW and Victoria.”

First-half net profit for the lenders’ mortgage insurance specialist grew 20.2% to $135.8 million, as a 49.5% rise in investment income to $56.2 million cushioned declines in other parts of the business.

Gross written premium fell 33.5% to $189.8 million and new insurance written dropped 20.9% to $14 million.

The combined operating ratio deteriorated to 57.3% from 48.8%.

“Overall economic conditions are supportive and the fundamentals of the residential mortgage market are sound, but there is pressure in some areas of the market,” CEO Georgette Nicholas said.

“It is clear the business is navigating through some variability and changes in the residential mortgage market.

“In particular, there has been a significant decline in the proportion of high loan-to-value ratio loans originated, given regulatory changes and changes in lender risk appetite.”