Genworth shares are taking a hit

Photo: Matt Cardy/ Getty Images.

Shares in Genworth Mortgage Insurance fell hard after the company issued a profit warning.

A short time ago, they were down 5.6% to $2.945.

Genworth says net earned premiums are expected to be 17% to 19% lower than 2016, instead of the previous guidance of a 10% to 15% fall.

The company’s business has been impacted by more cautious lending from the banks, meaning less demand for mortgage insurance.

Last month Genworth reported statutory net profit after tax of $32.1 million for the third quarter, a 31.3% fall compared to the same three months last year.

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