Helia Group (HLI) H2 2025 earnings summary

Executive summary

• Statutory NPAT for FY25 was AUD 244.9 million, up 6% year-over-year, and underlying NPAT was AUD 247 million, up 12%, reflecting strong profitability despite lower insurance revenue.

• Earnings per share rose 18% to AUD 0.899, and return on equity improved to 23.5%.

• Paid total dividends of AUD 1.26 per share, including a final ordinary dividend of AUD 0.16 and a special dividend of AUD 0.67, representing a 100% payout of statutory NPAT.

• Faced significant challenges, including the loss of the largest customer (CBA) and increased government intervention in the LMI market.

• Undertook a comprehensive business review, reaffirming commitment to the Australian LMI market and focusing on rebuilding new business, efficiency, and capital discipline.

Financial highlights

• Gross written premium (GWP) increased 23% year-over-year to AUD 240 million, driven by volume and portfolio mix.

• Insurance revenue declined 5% to AUD 371.5 million due to structurally lower new business and the impact of government schemes.

• Insurance service expense reduced to AUD 42 million, with negative total incurred claims of AUD 63 million and a negative claims ratio of (17.0)%.

• Net investment revenue was AUD 116 million, with a 4.4% return for the year, though investment revenue declined 17% year-over-year.

• Operating expenses and acquisition amortization reduced, with expenditure down 14% and FTE down 17% year-over-year, aided by a $15 million recurring cost reduction.

Outlook and guidance

• FY26 insurance revenue is expected to be in the range of AUD 320–370 million.

• Total incurred claims ratio for FY26 is projected to remain well below through-the-cycle averages.

• GWP expected to fall in 2026 due to loss of CBA and expanded government scheme.

• Continued focus on cost reduction, efficiency, and capital returns.