Helia shares dive on Commonwealth Bank contract uncertainty
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The news: Shares in Helia Group tumbled on the ASX after it was advised by the Commonwealth Bank of potential changes to its lenders mortgage insurance (LMI) contract.
The numbers: Helia was the worst performing company across the ASX 200 by 11:45am AEST, with shares down 16.6% to $3.52.
Helia, which has provided CBA with LMI for more than 50 years, said its existing LMI contract with the bank represented around 53% of its gross written premium in FY23.
The context: Helia said it was advised of CBA's intention to issue a 'request for proposal' relating to its group-wide LMI requirements.
Helia's existing LMI supply and service contract with CBA expires on 31 December 2025.
What they said: Helia CEO and managing director Pauline Blight-Johnston said: "Helia has provided CBA with LMI for more than 50 years and we welcome the opportunity to continue and extend our relationship".
"Helia is Australia's first LMI provider and has played a pivotal role in the property market since 1965," she said. "We harness the power of almost 60 years' experience to help aspiring home buyers realise their property dreams and get into homes sooner."
The source: ASX announcement
