Earnings release
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Helia Group Limited ABN 72 154 890 730 Page 1 3Q25 APRA lodgement , trading and Board review update 29 October 202 5: Helia Group Limited (Helia or the Company) (ASX:HLI) provides the following update in relation to its 3Q25 Australian Prudential Regulation Authority (APRA) lodgement , FY25 year to date trading and the results of the Board’s comprehensive business review. 3Q25 APRA lodgement Helia notes that it finalised the submission of data in relation to the three months ended 30 September 2025 to APRA on 28 October 2025 (APRA lodgement). The APRA lodgement includes data on two licensed general insurance entities which are both 100% owned subsidiaries of Helia; being Helia Insurance Pty Limited, the Company’s main operating entity and Helia Indemnity Limited, which is in run-off. The APRA lodgement does not provide a consolidated view of Helia or its subsidiaries, has not been externally reviewed or audited, and does not embrace a full review of claims reserving nor any associated adjustments to the profile of insurance revenue recognition. The 3Q25 data submitted to APRA for Helia Insurance Pty Limited included the following: ($m) 3Q25 Year to Date 30 Sep 25 Year to Date 30 Sep 24 Gross written premium (GWP) 66.1 176.0 135.6 Insurance revenue 92.7 274.9 285.2 Total incurred claims1 -27.1 -54.0 -24.8 Insurance service result 91.6 242.5 212.2 Net investment revenue 17.8 121.3 120.3 Net financial result2 7.7 68.5 62.0 Statutory net profit after tax (NPAT) 66.5 200.9 173.6 Prescribed Capital Amount coverage ratio (PCA) (x) 3 1.85 1.85 2.23 1 Total incurred claims is negative, caused by low levels of paid claims and a reduction in reserves. 2 The net financial result represents net investment revenue/loss less an insurance finance income expense/benefit which incorporates the impact of interest accretion and interest rate movements on the value of insurance contract liabilities. 3 The PCA coverage ratio is below the Helia Group Limited PCA coverage ratio due to the timing of intercompany transactions. For personal use only
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Helia Group Limited ABN 72 154 890 730 Page 2 3Q25 trading GWP is up on the previous corresponding period (pcp), reflecting higher market share and increased industry lending volumes. Despite this increase, GWP remains well down on historic levels and continues to be negatively impacted by the Australian Government 5% Deposit Scheme (formerly known as the Home Guarantee Scheme (Scheme)) which was further expanded on 1 October. Insurance revenue is down on pcp, due to lower GWP in recent book years. The FY25 guidance range of $350 million to $390 million remains unchanged. Claims remain extremely low with negative total incurred claims for the last quarter and year to date. There is no sign of a reversal of the current benign claims environment and FY25 guidance that total incurred claims are expected to be negative remains unchanged. Net investment revenue in line with pcp but was weaker in 3Q25 due to unrealised losses on the bond portfolio. Comprehensive business review Helia’s Board has completed its comprehensive business review that was announced in July. “Following a comprehensive review that thoroughly assessed alternatives, the Board is pleased to reaffirm Helia’s ongoing commitment to the Australian LMI market. Helia is focused on continuing to evolve to meet the changing market, building on its 60-year heritage of supporting Australians to buy, invest and upgrade their homes”, said Leona Murphy, Helia Chair. The Company is focused on growing GWP through a combination of existing customers and new customer wins, leveraging our deep expertise in high LVR lending to support our lenders to grow. Helia has the largest share of LMI industry in-force4 of 51% which gives it important local scale, in an industry where expenses have a high fixed component. The expansion of the Scheme will lead to a material reduction in GWP for the total LMI market , which will gradually impact insurance revenue. The Company is proactively managing its cost base to reflect the smaller market and has taken meaningful steps in FY25 by reducing its recurring cost base by $15 million. Further efficiencies through systems and process automation will continue to be a focus in coming years. Helia has a strong balance sheet, with flexibility on its mix of capital through the use of additional reinsurance and the issuance of Tier 2 subordinated debt. The Board will continue to explore options to return excess capital in an efficient and effective manner to shareholders , and the Company’s target capital range of 1.40 to 1.60 times APRA’s PCA remains unchanged. 4 LMI industry in-force as measured by liabilities for remaining coverage (LRC) at 30 June 2025, per APRA quarterly insurance performance statistics. For personal use only
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Helia Group Limited ABN 72 154 890 730 Page 3 For more information, analysts, investors and other interested parties should contact: Investors and analysts : Paul O’Sullivan Head of Investor Relations M: +61 499 088 640 Media: Emma Scammell Corporate Affairs & Communications Lead M+ 61 459 967 747 The release of this announcement was authorised by the Board . For personal use only