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 at AUD 247 million, reflecting strong profitability despite lower insurance revenue.

• Gross written premium (GWP) rose 23% to AUD 240 million, the highest in three years, driven by increased market share and lending volumes.

• Navigated significant industry changes, including the loss of the largest customer and expansion of the government deposit scheme.

• Delinquency rates and claims paid both declined, supported by a robust labor market and rising dwelling values.

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

Financial highlights

• Insurance revenue for FY25 was AUD 372 million, down 5% year-over-year due to structural market changes and lower GWP in recent book years.

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

• Total dividends declared were 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.

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

• Operating expenses reduced 8–14% to AUD 124 million; FTE down 17%.

Outlook and guidance

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

• Total incurred claims for 2026 anticipated to remain well below through-the-cycle averages.

• Portfolio quality remains strong, with prudent underwriting and embedded equity.

• Demand for high LVR lending expected to increase, but first home buyers will be a minor part of the private LMI market.