Genworth Financial Mortgage Insurance achieved an underwriting profit of only A$3.3 million in the year to December 2012, data compiled by the Australian Prudential Regulation Authority shows.In 2011, the business made an underwriting profit of $89 million.A top-up in reserves in early 2012 lifted the level of gross incurred claims for Genworth last year to $260 million, up from $195 million in 2011. This is close to $200 million more than that experienced by QBE Lenders Mortgage Insurance last year.Genworth's US owner hopes to sell a 40 per cent stake in its Australian business, through an initial public offer, by early next year.Genworth reported net assets of $2.1 billion at the end of 2012.Moody's Ratings Service explained its cut in the ratings of mortgage insurers in Australia earlier this year, saying it decided on the cut after a "review focused on the sufficiency of the LMIs' capital levels in the event of an unexpectedly severe downturn in the Australian housing market."