Helia Group (HLI) H2 2025 earnings summary

Executive summary

• Statutory NPAT for FY25 was AUD 245 million, up 6% year-over-year, with underlying NPAT of AUD 247 million, reflecting strong profitability despite lower insurance revenue.

• Earnings per share rose 18% to AUD 0.899, and return on equity reached 23.5%.

• Paid total dividends of AUD 1.26 per share, including a final ordinary dividend of AUD 0.16 and a special dividend of AUD 0.67, representing a 100% payout of statutory NPAT.

• Faced significant challenges, including the loss of the largest customer (Commonwealth Bank) and increased government intervention in the LMI market.

• Substantial capital was returned to shareholders through dividends and buybacks, with a sharpened operational focus in H2 25.

Financial highlights

• Gross written premium (GWP) increased 23% to AUD 240 million, driven by volume, portfolio mix, and increased market share.

• Insurance revenue declined 5% to AUD 372 million due to structurally lower new business and the impact of the government scheme.

• Insurance service expense reduced to AUD 42 million, with negative total incurred claims of AUD 63 million.

• Net investment revenue was AUD 116 million, with a 4.4% return for the year, though declined 17% year-over-year due to unrealized losses and a smaller portfolio.

• Operating expenses and acquisition amortization reduced, with expenditure down 14% and FTE down 17% year-over-year.

Outlook and guidance

• GWP expected to fall in 2026 due to loss of CBA and expanded government scheme; insurance revenue guidance for 2026 is AUD 320–370 million.

• Total incurred claims for 2026 expected to remain well below through-the-cycle average.

• Continued focus on cost reduction, efficiency, and capital returns.