Helia, the mortgage insurer, has announced a 38 per cent increase in net profit after tax for the six months ending June 30, 2025. The company’s positive financial results will see shareholders receive a fully franked interim dividend of 16 cents per share. Despite the strong half-year performance, Helia has cautioned investors about upcoming challenges impacting new business opportunities. Helia provides lenders mortgage insurance, which protects lenders against losses if a borrower defaults.
The company has flagged the Australian government’s expansion of the First Home Guarantee scheme, which allows eligible first-home buyers to purchase property with a 5 per cent deposit without lenders mortgage insurance (LMI), as a potential drag on revenue. Helia has faced significant headwinds in recent years, including major contract losses and changes in government policies.
Helia, formerly known as Genworth, experienced a substantial drop in market value last year when Commonwealth Bank (CBA) sought a new mortgage insurance provider. In its half-yearly update, Helia confirmed that CBA will transition to a new LMI provider from 2026. The company previously lost its LMI contracts with National Australia Bank (NAB) in 2020 and Westpac before that.
Adding to these challenges, Helia informed investors in July that ING Bank is also negotiating with a rival provider. ING’s current contract with Helia is set to expire on June 30 next year, creating further uncertainty for the company’s future business prospects.
