Helia Group shares slump as ING seeks new mortgage insurance partner

Published 02/07/2025, 01:46

Investing.com-- Shares of Australian insurer Helia Group Ltd (ASX:HLI) tumbled on Wednesday after the company said ING Australia was seeking an alternate provider for mortgage insurance services.

Helia’s shares slumped 27.4% to A$3.98, their weakest level since early-April, and vastly lagging a 0.5% rise in the ASX 200 index. 

Helia said on Wednesday that ING Australia had informed the insurer that it was in talks with an “alternate provider” for lenders mortgage insurance services. While the ING contract is only set to expire on June 30, 2026, Helia said ING could terminate the contract with three months notice.

The ING contract accounted for roughly 17% of Helia’s gross written premium in 2024, representing a sizeable chunk of the company’s earnings. 

Helia, formerly known as Genworth, said its board had commenced a “comprehensive business review” to respond to the expected loss of new business. ING is potentially the second major client loss for Helia this year, after the company in March disclosed that it was almost certain to lose its contract with Commonwealth Bank Of Australia (ASX:CBA). CBA was seen entering negotiations with a rival. 

Helia shares are trading down nearly 14% so far in 2025.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.