Helia Group (HLI) Q1 2025 TU earnings summary

Executive summary

• Gross written premium (GWP) increased to $51.0m in 1Q25 from $38.4m in 1Q24, driven by higher industry new housing loans above 80% LVR and increased market share.

• Insurance revenue slightly decreased year-over-year, reflecting lower GWP in recent years and minimal top-up premium credits.

• Total incurred claims were negative, benefiting from favorable experience and reserve releases.

• Net investment revenue remained stable compared to the prior year.

Financial highlights

• Statutory net profit after tax (NPAT) rose to $68.2m in 1Q25 from $53.0m in 1Q24.

• Insurance service result increased to $79.2m from $63.3m year-over-year.

• Prescribed Capital Amount (PCA) coverage ratio improved to 1.91x from 1.86x year-over-year.

• Regulatory capital base remains well above PCA, though down from December 2024 due to dividend payment.

Outlook and guidance

• Proposed policy changes to the Home Guarantee Scheme (HGS) could significantly expand the program, impacting LMI demand.

• Helia plans to engage with government to ensure policy supports a sustainable LMI industry.