Helia Group (HLI) H1 2025 earnings summary

Executive summary

• Statutory net profit after tax reached $134 million, up 38% year-over-year, driven by low claims and robust investment returns, with underlying NPAT at $126 million.

• Insurance revenue was $182 million, down 6% year-over-year, while GWP increased 28% due to higher market share and lending volumes.

• Fully franked interim ordinary dividend of $0.16 per share and unfranked special dividend of $0.27 per share declared, with capital management including redemption of $190 million in Tier 2 notes.

• Major contracts with CBA and ING, representing up to 61% of premiums, will not be renewed, significantly impacting future business.

• Comprehensive business review underway to address customer losses and government policy changes.

Financial highlights

• Net profit after tax of $134 million, up 38% year-over-year, with underlying diluted EPS at 46.0c.

• Insurance revenue was $182 million, down 6% year-over-year, but GWP rose 28% year-over-year.

• Negative total claims incurred of $27 million, reflecting favorable claims experience and reserve releases.

• Net investment revenue of $104.4 million, annualized return of 7.3%.

• Basic earnings per share rose to 49.1 cents from 32.8 cents year-over-year.

Outlook and guidance

• Full year insurance revenue expected between $350 million and $390 million, with guidance raised.

• Full year claims expected to remain negative, with a continued favorable claims environment.

• Revenue from in-force policies with CBA and ING will be recognized over the next 15 years, but new business from these clients will cease in 2026.

• Longer-term loss ratio expected to average around 30% across cycles.

• Board reviewing strategic options in response to contract losses and Home Guarantee Scheme changes.