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, supported by robust capital management and low claims experience.

• Insurance revenue was AUD 389 million, down 9% year-over-year due to lower premium volumes, while gross written premium rose 5.6% to AUD 195.6 million.

• Returned AUD 344.5 million to shareholders via dividends and AUD 113 million in share buybacks, reducing share count by 9%.

• Supported over 31,000 Australians into home ownership, ending the year with 810,000+ policies and AUD 235 billion insurance in force.

• Retained 100% of customer contract renewals and improved Net Promoter Score to +83.

Financial highlights

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

• Total incurred claims ratio was negative 9.5% for the year, reflecting reserve releases exceeding new claims.

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

• Gross written premium increased 6% year-over-year in the second half, but overall volumes remain subdued.

• Ordinary dividend per share: 31c; special dividend per share: 53c; total dividends per share: 84c.

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; inflation moderating but labor market may soften.

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

• Company positioned to invest in business growth and continue capital returns.