Company Reports

Helia's first-half 2026 profit excluding unrealized gains declined 16% to AUD 106 million. Softer demand and the loss of Commonwealth Bank as a client hurt revenue, but the bigger drivers were a smaller benefit from changes to claim liabilities and lower investment income.

Helia, formerly known as Genworth, has a long history of providing mortgage insurance to lenders in Australia but has only been listed on the ASX since May 2014. Global US-based insurer Genworth Financial listed it and completely sold out in 2021. We think it is likely Helia will find it challenging to grow its lender's mortgage insurance business in the face of increased competition. We believe the entrance of Arch Capital Group and the increasing tendency of lenders to self-insure will see Helia hold less share than it has historically.

Helia has retained ING Bank as a lender's mortgage insurance, or LMI, client, signing a new four-year exclusive agreement. The deal reverses course from 12 months ago, when ING told Helia it was negotiating with an alternative insurer. ING made up roughly 20% of Helia's 2025 written premiums.

Helia, formerly known as Genworth, has a long history of providing mortgage insurance to lenders in Australia but has only been listed on the ASX since May 2014. Global US-based insurer Genworth Financial listed it and completely sold out in 2021. We think it is likely Helia will find it challenging to grow its lender's mortgage insurance business in the face of increased competition. We believe the entrance of Arch Capital Group and the increasing tendency of lenders to self-insure will see Helia hold less share than it has historically.

Helia's first-quarter gross written premiums fell 32% on the same period last year, hurt by the loss of Commonwealth Bank and less demand from first-home buyers due to the government's expanded 5% deposit scheme. Claims are low, with an AUD 9.5 million benefit from lower reserves.

Helia's 2025 underlying profit increased 12% to AUD 247 million. Earnings were supported by low claims, benefits from changes to claim liabilities, and cost savings in preparation for shrinking gross written premiums. Shares jumped 16%.

Helia, formerly known as Genworth, has a long history of providing mortgage insurance to lenders in Australia but has only been listed on the ASX since May 2014. Global US-based insurer Genworth Financial listed it and completely sold out in 2021. We think it is likely Helia will find it challenging to grow its lender's mortgage insurance business in the face of increased competition. We believe the entrance of Arch Capital Group and the increasing tendency of lenders to self-insure will see Helia hold less share than it has historically.

Helia, formerly known as Genworth, has a long history of providing mortgage insurance to lenders in Australia but has only been listed on the ASX since May 2014. Global US-based insurer Genworth Financial listed it and completely sold out in 2021. We think it is likely Helia will find it challenging to grow its lender's mortgage insurance business in the face of increased competition. We believe the entrance of Arch Capital Group and the increasing tendency of lenders to self-insure will see Helia hold less share than it has historically.

Driven by increased lending volumes, Helia's third-quarter gross written premiums are up over 30% on the same period last year. But on an annualized basis, it's still a far cry from historical levels, with demand hurt by the government's expanded 5% deposit scheme and higher interest rates.

Helia, formerly known as Genworth, has a long history of providing mortgage insurance to lenders in Australia but has only been listed on the ASX since May 2014. Global US-based insurer Genworth Financial listed it and completely sold out in 2021. We think it is likely Helia will find it challenging to grow its lender's mortgage insurance business in the face of increased competition. We believe the entrance of Arch Capital Group and the increasing tendency of lenders to self-insure will see Helia hold less share than it has historically.

Helia's first-half 2025 profit excluding unrealised gains increased 18% to AUD 126 million. A bigger benefit from changes to claim liabilities and higher investment income was a material driver. An unfranked special of AUD 0.27 adds to a fully franked interim dividend of AUD 0.32.

Helia, formerly known as Genworth, has a long history of providing mortgage insurance to lenders in Australia but has only been listed on the ASX since May 2014. Global US-based insurer Genworth Financial listed it and completely sold out in 2021. We think it is likely Helia will find it challenging to grow its lender's mortgage insurance business in the face of increased competition. We believe the entrance of Arch Capital Group, and increasing tendency of lenders to self-insure, will see Helia cede further share over time.

Helia shares sold off heavily after announcing one of its largest customers, ING Bank, is proceeding with negotiations with an alternative provider of lenders mortgage insurance.

Helia’s first-quarter 2025 gross written premiums rose 33% to AUD 51.0 million from the previous corresponding period, but insurance revenue decreased marginally by 1%. With incurred claims of negative AUD 14 million, Helia's net profit after tax increased by 29% PCP to AUD 68.2 million.

Helia shares tumbled after announcing its largest customer, Commonwealth Bank, has entered exclusive negotiations with an alternative provider of lenders' mortgage insurance. This could end a 50-year relationship between Helia and Australia's biggest bank.

Helia, formerly known as Genworth, has a long history of providing mortgage insurance to lenders in Australia but has only been listed on the ASX since May 2014. Global US-based insurer Genworth Financial listed it and completely sold out in 2021. We think it is likely Helia will find it challenging to grow its lender's mortgage insurance business in the face of increased competition. We believe the entrance of Arch Capital Group, and increasing tendency of lenders to self-insure, will see Helia cede further share over time.

Helia, formerly known as Genworth, has a long history of providing mortgage insurance to lenders in Australia but has only been listed on the ASX since May 2014. Global US-based insurer Genworth Financial listed it and completely sold out in 2021. We think it is likely Helia will find it challenging to grow its lender's mortgage insurance business in the face of increased competition. We believe the entrance of Arch Capital Group, and increasing tendency of lenders to self-insure, will see Helia cede further share over time.

Claims remain exceptionally benign at no-moat Helia. Low unemployment, record labor force participation, and strong house price growth continued to support mortgages, despite broader cost-of-living pressures. As such, the insurer reported yet another negative claims/insurance revenue ratio in 2024 of minus 10% as reductions in the liability for previously incurred claims more than offset current claims. While Helia’s insurance services result was marginally stronger than we expected, investment income was softer. Underlying net profit after tax of AUD 221 million missed our forecast by 16%.

Helia, formerly known as Genworth, has a long history of providing mortgage insurance to lenders in Australia but has only been listed on the ASX since May 2014. Global US-based insurer Genworth Financial listed it and completely sold out in 2021. We think it is likely Helia will find it challenging to grow its lender's mortgage insurance business in the face of increased competition. We believe the entrance of Arch Capital Group, and increasing tendency of lenders to self-insure, will see Helia cede further share over time.

Gross written premiums are still soft at Helia, Australia's largest provider of lenders mortgage insurance. For the year to September 2024, GWP is down 4%. However, low levels of claims and higher investment income are positive earnings contributors in the third quarter.