Mortgage insurer Genworth suffered a 20 per cent fall in gross written premium during the year to December and has forecast that GWP could fall by the same amount in 2016.Early last year Westpac terminated its LMI agreement with Genworth. The loss of the Westpac business accounted for about half the fall and will continue to have an impact this year.The other factor leading to lower GWP was the move by lenders to reduce their volumes of high loan-to-valuation ratio lending (90 per cent and above). Mortgage insurers earn higher premiums on high LVR mortgages.The ratio of high LVR loans to total new insurance written has fallen from 36 per cent in 2013 to 21 per cent last year. These conditions are expected to continue this year.The company will recover some lost ground with a premium increase, which will take effect in March.Genworth's net earned premium (after adjusting for reinsurance costs) was down 5.4 per cent to A$469.9 million and the underwriting result was down 3.7 per cent to $234.2 million.Investment income took a hit - down 61.1 per cent to $68.9 million. The majority of the company's investments are in fixed income securities, which are marked to market. With the yield curve steepening last year the portfolio value was marked down.Net profit was down 29.7 per cent to $228 million. After adjusting for the investment result, underlying profit was down 5.3 per cent to $264.7 million.Return on equity fell from 12.2 per cent in 2014 to 11.6 per cent last year.Genworth chief executive Georgette Nicholas said that while volume was down a positive for the company was that business quality improved. Genworth paid 1184 claims last year, compared with 1545 in 2014. The average payout was $56,300, compared with $58,650 in 2014, and the total payout was $67 million, compared with $91.5 million in 2014.However, the loss ratio, which calculates net claims as a proportion of net earned premium, rose from 19 per cent to 24 per cent year-on-year.The combined ratio, which calculates claims plus underwriting expenses as a percentage of premium income, rose from 44.7 per cent in the December half in 2014 to 51.4 per cent in the December half last year (the increase represents a deterioration).Genworth declared a final dividend of 14 cents a share, increasing its dividend payout ratio from 57.7 per cent to 63.2 per cent. It also declared a special dividend of 5.3 cents a share.