Helia Group Limited (ASX:HLI): 2026 Dividends and Mortgage Insurance Earnings

Aditi Sarkar

14 October 2026 03:50 PM AEDT

Helia Group Limited (ASX:HLI): 2026 Dividends and Mortgage Insurance Earnings

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Highlights

Helia declared a 16.0-cent fully franked interim dividend and a 27.0-cent unfranked special dividend for 1H26.
First-half statutory net profit after tax was A$100.0 million, compared with A$133.7 million a year earlier.
Gross written premium fell as the Commonwealth Bank contract ended and first-home-buyer volumes changed.
Regulatory capital stood at 2.07 times the prescribed capital amount at 30 June 2026.
The renewal of a significant lender agreement and further capital management measures shaped the 2026 outlook.

Helia Group Limited (ASX:HLI) provides lenders mortgage insurance and related risk solutions to Australia’s residential mortgage lending industry, helping lenders manage the risk associated with lower-deposit home loans. Its 2026 financial disclosures show how changing premium volumes, insurance earnings and surplus capital distributions are affecting its financial profile.

Ordinary and Special Dividends in 2026

For the half year ended 30 June 2026, Helia Group Limited (ASX:HLI) declared a fully franked ordinary interim dividend of 16.0 cents per share and an unfranked special dividend of 27.0 cents per share. Both were scheduled for payment on 4 September 2026. The company also paid a 16.0-cent ordinary final dividend and a 67.0-cent special dividend in March 2026.

Together, these 2026 payments totalled 32.0 cents per share in ordinary dividends and 94.0 cents per share in special dividends, or A$1.26 per share in aggregate. Unlike an ordinary dividend, a special dividend represents an additional capital distribution and should be distinguished from recurring payments. The ordinary dividends were fully franked; the special payments had differing franking treatments.

Half-Year Earnings and Premium Trends

Helia Group Limited (ASX:HLI) reported statutory net profit after tax of A$100.0 million for 1H26, compared with A$133.7 million in the corresponding period. Underlying net profit after tax was A$106.3 million. Gross written premium declined 44% to A$61.6 million, while insurance revenue decreased 6% to A$170.6 million.

The reduction in new premium writing partly reflected the expiry of the Commonwealth Bank of Australia arrangement and reduced activity in the first-home-buyer segment, including the influence of government deposit-support schemes. Helia Group Limited (ASX:HLI) also reported lower operating expenses, reflecting cost-management measures and reduced acquisition-related expenditure.

Capital Coverage and Customer Agreements

At 30 June 2026, Helia Group Limited (ASX:HLI) reported regulatory capital of 2.07 times its prescribed capital amount, above the board’s stated operating range. The company also announced an on-market share repurchase programme of up to A$75 million, with completion planned by 31 December 2026.

Customer relationships remain central to future new-business volumes. During 1H26, Helia renewed an exclusive agreement with ING Bank Australia, which accounted for approximately 22% of gross written premium. This renewal contrasts with the expiry of another major lender arrangement and highlights how individual institutional contracts can materially influence premium production.

Insurance Exposure and Distribution Considerations

The operating environment for lenders mortgage insurance is connected to household borrowing, employment conditions, residential property values and mortgage arrears. If borrower defaults increase and the proceeds from property sales do not cover outstanding loan balances, insurers may face higher claims. Investment income, regulatory capital requirements and customer contract changes also affect the amount of capital available for distribution.

Helia Group Limited (ASX:HLI) indicated that FY26 insurance revenue was expected to be between A$330 million and A$360 million. Future ordinary dividends and any additional capital returns remain subject to financial results, regulatory requirements and board decisions.

Key Insights

Helia Group Limited (ASX:HLI) combined ordinary dividends with sizeable special dividends during 2026, while its half-year results recorded lower profit and new insurance premium volumes. The company’s regulatory capital coverage and renewed customer agreement provide additional context for its capital management decisions. Separating recurring distributions from special capital payments, and premium income from earnings on existing policies, gives a clearer picture of the insurer’s reported position.

FAQs

Q: What does Helia Group do?

A:It provides lenders mortgage insurance and related risk solutions to Australian mortgage lenders.

Q: What ordinary dividend was declared for 1H26?

A:A fully franked interim ordinary dividend of 16.0 cents per share.

Q: Was a special dividend declared for 1H26?

A:Yes. The company declared an unfranked special dividend of 27.0 cents per share.

Q: What was Helia’s 1H26 statutory profit?

A:Statutory net profit after tax was A$100.0 million.

Q: What influences Helia’s future dividend capacity?

A:Insurance earnings, claims experience, capital requirements and decisions made by its board.

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