Helia Group shares jump on improved payout, buyback
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More news: Shares in Helia Group jumped more than 12% to $5.44 in early trading after the mortgage insurance provider increased final dividend to 16 cents a share and announced a special dividend of 53 cents a share, in recognition of its FY24 result and strong capital position.
It also announced a doubling of its ongoing $100 million share buyback to $200 million.
Helia Group posts drop in full-year profit, ups dividend
The news: Mortgage insurance provider Helia Group has posted a 16% drop in full-year profit on the back of smaller premium increases and lower benefit from incurred claims.
The numbers: Helia Group posted a net profit of $231.5 million for the year to December, down from $275.1 million the previous year. Gross written premiums were up 6% to $195.6 million, while insurance revenue was down 9% to $389.2 million. It also declared a dividend of 16 cents, up from 15 cents the previous year.
The context: Helia said the fall in NPAT was mostly due to a lower benefit from negative total incurred claims as claims were unusually low in both FY23 and FY24.
New delinquencies rose 17% due to the impact of higher mortgage rates and cost of living pressures. Lower levels of gross written premiums in recent years and less favourable premium increases also reflected in the drop in insurance revenue. It expects FY25 insurance revenue to be within the $310 million to $390 million range.
Helia provides mortgage insurance for major lenders such as Commonwealth Bank, Bank of Queensland, Bendigo Bank, and ING among others.
The source: ASX announcement
