Helia Group (HLI) H2 2024 earnings summary

Executive summary

• Achieved strong FY24 financial and operational performance, supporting over 31,000 Australians into home ownership, with 810,000 policies in force and $235 billion insurance in force.

• Underlying NPAT was $221 million, statutory NPAT $232 million, both down year-over-year, benefiting from low claims and unrealized gains.

• Retained 100% of customer contract renewals and improved Net Promoter Score to +83.

• Returned $113 million to shareholders via buybacks, reducing share count by 9%.

• Declared fully franked final ordinary dividend of 16c and special dividend of 53c per share.

Financial highlights

• Insurance revenue was $389 million, down 9% year-over-year due to subdued premium volumes.

• Total claims incurred were negative $37 million, reflecting reserve releases exceeding new claims.

• Net investment revenue reached $141 million, with a 4.9% return.

• Gross written premium increased 6% year-over-year in the second half, but overall volumes remain soft.

• Net tangible assets per share rose to $3.93.

Outlook and guidance

• FY25 insurance revenue expected between $310 million and $390 million.

• Total incurred claims ratio projected to remain well below the through-the-cycle expectation of 30%.

• Profitability in 2025 will depend on claims timing and magnitude, which are difficult to predict.

• Early signs of cyclical recovery in high LVR lending and continued pursuit of new customer opportunities.