Helia Group (HLI) H2 2024 earnings summary

Executive summary

• Achieved strong FY24 financial and operational performance with underlying NPAT of AUD 221 million and statutory NPAT of AUD 232 million, driven by robust capital management and favourable claims experience.

• Insurance revenue was AUD 389 million, down 9% year-over-year, while total claims incurred were negative AUD 37 million due to reserve releases exceeding new claims.

• Retained 100% of customer contract renewals and completed AUD 113 million in on-market share buybacks, reducing share count by 9%.

• PCA coverage ratio at 2.10x, well above the Board's target range, reflecting a strong capital position.

• Strategic progress included six new customer integrations and the launch of a digital onboarding system, reducing customer transition time.

Financial highlights

• Underlying NPAT of AUD 221 million, statutory NPAT of AUD 232 million, and insurance revenue of AUD 389 million for FY24.

• Underlying ROE at 18.4%, statutory ROE at 20.8%, and underlying diluted EPS of 60.8c.

• Total incurred claims ratio was negative 9.5% for the year, reflecting continued favourable claims experience.

• Net investment revenue reached AUD 141 million, with a 4.9% return.

• Book value per share increased to AUD 3.97 and net tangible assets per share to AUD 3.93 as of 31 Dec 2024.

Outlook and guidance

• FY25 insurance revenue expected between AUD 310 million and AUD 390 million.

• Total incurred claims ratio projected to remain well below the through-the-cycle expectation of 30%.

• Profitability in 2025 will depend on claims timing and economic environment.

• Early signs of cyclical recovery in high LVR lending and continued market share growth.