Helia Group reaffirms guidance, flags 'extremely low' Q3 claims
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The news: Mortgage insurance provider Helia Group has reaffirmed its full-year guidance but flagged that its gross written premium (GWP) is "well down on historic levels" with the number of claims in the third quarter remaining "extremely low".
The numbers: Third quarter GWP of $66.1 million was up 31% on the prior corresponding period, reflecting higher market share and increased industry lending volumes.
However, the company said GWP is running below historic levels and continues to be negatively impacted by the federal government's 5% deposit scheme, which was expanded further on 1 October.
Insurance revenue fell year on year to $92.7 million due to lower GWP, though Helia reaffirmed its full-year guidance of between $350 million and $390 million.
The context: Helia said the number of claims remain "extremely low" with negative total incurred claims for the last quarter and year to date.
"There is no sign of a reversal of the current benign claims environment and FY25 guidance that total incurred claims are expected to be negative remains unchanged," the company said this morning.
The group also confirmed that it had completed its comprehensive business review, announced in July after flagging the potential loss of its lenders mortgage insurance (LMI) contracts with Commonwealth Bank and ING Bank.
"Following a comprehensive review that thoroughly assessed alternatives, the board is pleased to reaffirm Helia's ongoing commitment to the Australian LMI market," said Helia chair Leona Murphy.
The source: ASX
