The Australian arm of mortgage insurance company Genworth contributed net income of US$40 million in the December 2008 quarter to its owner, and steady with the profit in the same quarter a year ago. In commentary in the media release to announce the profit, Genworth wrote that  earnings grew modestly in Australia in the current quarter, excluding a US$9 million change in net benefit from updates to premium recognition curves and loss factors. Genworth said the loss ratio was 47 per cent, down slightly from the prior quarter, still reflecting higher mortgage rates that pressured customer affordability, along with the seasoning of the business in a slowing economy. New flow insurance fell 25 percent, while there were "very limited bulk sales" covering securitisation programsGenworth insured US$6.6 billion in new home loans in Australia during the December 2008 quarter, down from US$11.6 billion in 2007, with the decline in the exchange rate exaggerating the actual decline.