Helia Group (HLI) H2 2024 earnings summary

Executive summary

• Achieved strong FY24 financial and operational performance with underlying NPAT of AUD 221 million and statutory NPAT of AUD 232 million, supported by robust capital management and low claims experience.

• Assisted over 31,000 Australians into home ownership, ending the year with 810,000 policies in force and AUD 235 billion insurance in force.

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

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

• Strategic progress included six new customer integrations and launch of a digital onboarding system.

Financial highlights

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

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

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

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

• Net tangible assets per share rose 5% to AUD 3.93.

Outlook and guidance

• FY25 insurance revenue expected between AUD 310 million and AUD 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 economic environment.

• Early signs of cyclical recovery in high LVR lending and continued market share growth.