Helia Group (HLI) H1 2024 earnings summary

Executive summary

• Underlying NPAT for H1 2024 was AUD 107 million, down 22% year-over-year, while statutory NPAT was AUD 97 million, down 34%, reflecting operational resilience despite lower insurance and investment revenue.

• Over 12,000 families assisted with home ownership, maintaining a customer-focused strategy and renewing key contracts.

• Returned AUD 177 million to shareholders via dividends and share buybacks, exceeding NPAT for the half.

• Interim fully franked dividend of 15 cents per share declared, up 7% from 1H23.

• Received industry recognition for customer support, employment practices, gender equality, and reconciliation initiatives.

Financial highlights

• Insurance revenue for H1 2024 was AUD 194.8 million, down 11% year-over-year due to lower premium volumes and government schemes.

• Total incurred claims were negative AUD 10 million, driven by reserve releases and favorable delinquency trends; claims ratio improved to -5.1%.

• Net investment revenue was AUD 41.3 million, with a running yield of 4.7% per annum, but impacted by unrealized bond losses.

• Gross written premium declined 11% year-over-year to AUD 85.9 million.

• Annualized underlying ROE reached 19.3% for the half.

Outlook and guidance

• Full year 2024 insurance revenue expected between AUD 375-415 million.

• Total incurred claims anticipated to increase in H2 2024 but remain below the long-term average claims ratio of 30%.

• Annual ordinary dividend for 2024 expected to be similar to 2023, reflecting a preference for stability.

• Ongoing $100 million share buy-back program, with $92 million outstanding as of 30 June 2024.