Helia Group post lower third quarter revenue
Key points
- Helia Group reported $82.8 million in third-quarter insurance revenue and a gross written premium of $20.9 million.
- The company cited contract losses, government deposit schemes, and a slowing housing market for lower period figures.
- Helia Group maintained a capital coverage ratio of 2.01 times the prescribed capital amount.
Helia Group (ASX:HLI) posted third-quarter insurance revenue of $82.8 million as a slowing Australian housing market weighed on property transaction volumes.
Year-to-date insurance revenue declined 8% compared to the prior corresponding period to reach $253.4 million.
The company stated that the gross written premium for the first nine months dropped to $82.5 million from $176 million due to the loss of the CBA contract, the expansion of the Australian Government's 5% Deposit Scheme, and slowing home lending.
Helia Group reported a year-to-date statutory net profit after tax of $136.5 million, down from $200.9 million in the prior corresponding period.
The business maintained a strong capital position with a prescribed capital amount coverage ratio of 2.01 times.
Following the announcement, the Helia Group Limited share price was unchanged at $5.23.
As an Australian lenders mortgage insurer, Helia Group provides credit risk mitigation solutions to residential mortgage lenders across the nation.
The group continues to adjust its portfolio management amid evolving macroeconomic conditions and regulatory capital requirements set by APRA.
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