Helia lifts first-quarter profit
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The news: Mortgage insurance provider Helia Group has reported a lift in first-quarter profit on the back of a higher level of housing loans written.
The numbers: The company reported statutory profit of $68.2 million for the March quarter, up 29% from a year ago. Gross written premiums (GWP) were up 33% from a year ago to $51 million, while insurance revenue fell slightly to $92.6 million. Net investment revenue was nearly flat at $41.6 million.
The context: Helia said the lift in gross written premiums was driven by increased levels of new housing loans written as well as an increase in Helia’s market share. However, overall levels of GWP continue to be impacted by low levels of new housing loans written above an 80% loan-to-value ratio, the federal government’s First Home Guarantee scheme and higher levels of lender self insurance.
Helia said it intended to engage with the government over proposed policy changes to the home guarantee scheme, saying the changes “introduced unnecessary risk to the stability of the financial sector”.
Helia provides mortgage insurance for major lenders such as Commonwealth Bank, Bank of Queensland, Bendigo Bank and ING, among others. In March, the company flagged the potential loss of its contract with CBA, which accounts for 44% of its gross written premiums.
The source: ASX
