Helia Group (HLI) H1 2024 earnings summary

Executive summary

• Underlying NPAT for H1 2024 was AUD 107 million, with statutory NPAT at AUD 97 million, reflecting operational resilience despite lower insurance and investment revenue.

• Insurance service result reached AUD 141 million, supported by reserve releases and favorable claims experience.

• Over 12,000 families assisted in home purchases, with a customer-focused strategy and renewed key contracts.

• Returned AUD 177 million to shareholders via dividends and share buybacks, exceeding NPAT for the half.

• Interim dividend of 15 cents per share (fully franked) declared, payable 19 September 2024.

Financial highlights

• Insurance revenue for H1 2024 was AUD 194.8 million, down 11% year-over-year due to lower premium volumes and government schemes.

• Total claims incurred were negative AUD 10 million, as reserve releases exceeded new claims.

• Net investment revenue was AUD 41.3 million, impacted by unrealized bond losses.

• Annualized underlying ROE reached 19.3% for the half.

• Net tangible assets per share at AUD 3.63 as of 30 June 2024.

Outlook and guidance

• Full year 2024 insurance revenue expected between AUD 375-415 million.

• Total incurred claims anticipated to increase in H2 2024 but remain below the long-term average claims ratio of 30%.

• Annual ordinary dividend for 2024 expected to be similar to 2023, with a AUD 100 million share buyback underway.