Helia Q3 profit and revenue lags
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The news: Mortgage insurance provider Helia Group has reported a drop in third-quarter profit due to a lower level of housing loans written.
The numbers: The company reported statutory profit of $75.7 million for the September quarter, taking year-to-date profit to $173.6 million, down 18% from a year ago.
Gross written premiums (GWP) were up to $50.4 million, while insurance revenue was down to $90.4 million.
The context: Helia said year-to-date gross written premiums were lower as lender mortgage insurance volumes were 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.
Lower insurance revenue reflected the lower levels of GWP in recent years.
It has, however, maintained full-year guidance for insurance revenue in $375 million to $415 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
