Genworth’s losses on claims were $62-million in the fourth quarter, $11-million higher than the same period a year earlier. Genworth’s stress tests suggest it could withstand either a 40-per-cent drop in home prices or a sharp spike in unemployment before its insurance business became unprofitable. But if a 25-per-cent drop in house prices were coupled with a prolonged increase in unemployment into double-digit levels, it would affect profitability. Canada’s largest private sector mortgage insurer, has set up its own internal group of real estate agents to deal with foreclosure sales.