Helia Group Ltd
ASX:HLI
Helia Group Ltd
Helia Group Ltd. engages in the provision of lenders mortgage insurance. The company is headquartered in North Sydney, New South Wales and currently employs 209 full-time employees. The company went IPO on 2014-05-20. Its LMI provides protection to lenders to help them purchase a property with a smaller deposit. The company protects the lender against the risk of potential losses, in case they are unable to make home loan repayments, and the lender is unable to recover the outstanding loan amount from the sale of the security property.
Helia Group Ltd. engages in the provision of lenders mortgage insurance. The company is headquartered in North Sydney, New South Wales and currently employs 209 full-time employees. The company went IPO on 2014-05-20. Its LMI provides protection to lenders to help them purchase a property with a smaller deposit. The company protects the lender against the risk of potential losses, in case they are unable to make home loan repayments, and the lender is unable to recover the outstanding loan amount from the sale of the security property.
Profit Surge: Statutory net profit after tax rose to $134 million, up 38% from the prior period, driven by low claims and strong investment returns.
Dividend Payout: The Board declared a fully franked interim ordinary dividend of $0.16 per share and an additional unfranked special dividend of $0.27 per share, recognizing a surplus capital position.
Revenue Guidance Raised: Full-year insurance revenue guidance was narrowed to $350–390 million, with the bottom end raised from earlier guidance.
Claims Remain Exceptionally Low: Claims continue to be negative, supporting high profitability, and this trend is expected to persist short term.
Major Customer Loss: Helia is losing Commonwealth Bank and ING as customers from 2026, which will significantly impact new premium volumes and market share.
Market Challenges: The federal government’s expanded Home Guarantee Scheme is expected to reduce LMI market size, especially among first homebuyers.
Cost Reductions Underway: Helia has started making the business leaner and more efficient, cutting costs by 6% year-over-year.
Strong Capital Position: The company maintains a robust capital buffer at 2.30x the regulatory requirement, enabling ongoing shareholder returns.
