Helia Group (HLI) H1 2026 earnings summary

Executive summary

• Statutory NPAT for 1H26 was $100.0 million, down 25% year-over-year from $133.7 million, with underlying NPAT at $106.3 million and a return on equity of 22%.

• Delivered strong operational performance and renewed key customer contracts, including a new four-year agreement with ING Bank Australia, while advancing efficiency initiatives such as automation and AI.

• Maintained low delinquencies and strong portfolio equity, though results were impacted by lower insurance revenue, investment gains, and the expiry of a major contract.

• Surplus capital was returned to shareholders via dividends and a planned $75 million share buyback.

• Strong cost management led to a reduction in operating expenses and FTEs.

Financial highlights

• Statutory NPAT: $100.0 million; underlying NPAT: $106.3 million for 1H26; statutory diluted EPS: 36.2c; underlying diluted EPS: 38.5c.

• Gross written premium (GWP) was $61.6 million, down 44% year-over-year, mainly due to loss of CBA new business and lower first-time buyer volumes.

• Insurance revenue declined 6% year-over-year to $170.6 million.

• Operating expenses reduced 16% year-over-year to $53.1 million, driven by cost reduction initiatives.

• Fully franked interim ordinary dividend of 16.0cps and unfranked special dividend of 27.0cps declared.

Outlook and guidance

• Full-year insurance revenue expected in the range of $330 million to $360 million.

• Claims ratio for FY26 expected to remain well below through-the-cycle averages.

• GWP is expected to remain impacted by the expiry of the CBA contract and government schemes.