Helia Group shares plunge as ING seeks alternative provider
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More news: Helia Group shares tanked in early trading after the mortgage insurance company warned that ING is in talks with an alternative provider, casting doubt over a contract that represented 17% of its gross written premium last year.
Helia shares were down 25.6% to $4.08 at 10:45am AEST.
Helia Group says ING contract at risk, begins internal review
The news: Mortgage insurance provider Helia Group has warned that another major customer contract is at risk after being informed that ING Bank is in talks with an alternative provider.
The numbers: Helia's lenders mortgage insurance (LMI) contract with ING expires on 30 June 2026, but includes a right for the bank to terminate the contract by providing three months' notice.
The LMI business underwritten under the contract represented around 17% of Helia's 2024 gross written premium (GWP).
In March, the company flagged the potential loss of its contract with Commonwealth Bank, which accounts for 44% of its GWP.
The context: Helia said it has started a "comprehensive business review" to consider the company's response to the "expected loss of new business from two significant customers".
The review will also assess the broader impact of the recently announced changes to the government's Home Guarantee Scheme for first home buyers on the company's operating environment.
What they said: “The financial impact of ceasing to write new business from ING will emerge gradually over time and the absence of new business from ING will likely increase the level of organic capital generation and scope for further capital management activity,” the company said in an ASX release.
The source: ASX
