Helia Group Limited delivered robust half-year results for 2025, reporting a statutory net profit after tax of $134 million and a significant 28% increase in gross written premiums. The company strengthened its capital position while navigating a shifting mortgage insurance landscape.
- Statutory NPAT of $134 million and underlying NPAT of $126 million
- 28% half-on-half growth in gross written premium driven by market share gains
- PCA coverage ratio improved to 2.30x following Tier 2 notes redemption
- Declared fully franked ordinary dividend of 16 cents and unfranked special dividend of 27 cents per share
- Operating environment marked by easing interest rates and rising dwelling values
Strong Financial Performance Amid Market Shifts
Helia Group Limited has reported a strong set of financial results for the half year ended 30 June 2025, underscoring its resilience and strategic positioning in the lenders mortgage insurance sector. The company posted a statutory net profit after tax (NPAT) of $134 million, up from prior periods, alongside an underlying NPAT of $126 million, reflecting solid operational performance despite some headwinds.
Gross written premium (GWP) surged 28% half-on-half, a notable increase driven by higher market share and increased lending volumes. This growth was achieved even as insurance revenue declined 6% year-on-year, primarily due to lower premiums in more recent book years. The company’s ability to expand its footprint in a competitive environment highlights effective risk and capital management strategies.
Capital Strength and Dividend Strategy
Helia’s capital position improved significantly, with the Prescribed Capital Amount (PCA) coverage ratio rising to 2.30 times, well above the board’s target range of 1.4 to 1.6 times. This was supported by the redemption of $190 million in Tier 2 notes in early July 2025 and a disciplined approach to capital deployment.
The company declared a fully franked ordinary dividend of 16 cents per share and an unfranked special dividend of 27 cents per share, signaling confidence in its cash flow generation and commitment to returning value to shareholders. These dividends come amid a backdrop of ongoing capital management initiatives, including share buy-backs and efficient balance sheet management.
Navigating a Changing Operating Environment
Helia’s results were delivered in a context of a resilient Australian labor market, with unemployment remaining low at around 4.3%, and national dwelling values rising by 2.4% in the first half of 2025. The Reserve Bank of Australia’s easing of interest rates, with the cash rate target reduced by 50 basis points to 3.85%, has also contributed to a more favourable mortgage lending environment.
Delinquency rates showed a modest seasonal uptick but remained low overall, with Helia’s closing delinquencies down 4% year-on-year. Regional variations were noted, particularly in Victoria, but the overall portfolio quality remains strong. The company’s claims experience continued to benefit from favourable trends, including property price appreciation and stable cure rates.
Strategic Outlook and Market Position
Looking ahead, Helia expects full-year 2025 insurance revenue to be between $350 million and $390 million, an upward revision from previous guidance. Total incurred claims are forecast to remain negative and well below historical averages, reflecting ongoing favourable claims experience and prudent reserving.
The company is also preparing for the expansion of the Government’s Home Guarantee Scheme (HGS) effective 1 January 2026, which is expected to increase market opportunities by removing income caps and increasing property price limits. Helia currently holds a strong position in the low-to-moderate income (LMI) segment, with a 44% share of industry GWP and 50% share of in-force policies.
Helia’s strategic priorities focus on adapting to market changes, simplifying operations, regaining new business market share, and deploying capital efficiently. Sustainability initiatives targeting social wellbeing, climate resilience, and accessible housing underpin the company’s long-term vision.
Bottom Line?
Helia’s robust half-year performance and strengthened capital base set the stage for navigating evolving market dynamics and regulatory changes ahead.
Questions in the middle?
- How will the expansion of the Home Guarantee Scheme impact Helia’s market share and profitability in 2026?
- What risks could arise from potential shifts in interest rates and housing market conditions on Helia’s claims experience?
- How will the redemption of Tier 2 notes and capital management initiatives influence Helia’s future dividend policy and growth investments?