A doubling in the claims ratio helped slice the underwriting profit for QBE Lenders Mortgage Insurance last year. Underwriting profit fell to A$76.7 million in the year to December 2012, from $102.6 million in 2011.Claims incurred increased to $61 million, from $28 million, a trend consistent with the rise reported by its major rival, Genworth Financial. The net loss ratio doubled to 30 per cent.QBRE said, in financial statements lodged with ASIC, that it saw "heightened rates of conversion of defaults to claims and greater claim severity."On the other hand, it said, loss ratios "even in the most badly hit regions [were] significantly less than in previous downturns."Lower interest rates later in 2012 are moderating the recent level of claims, however.In addition, new business for QBE LMI increased handsomely - up 25 per cent, to $339 million.