Australia's Helia eyes biggest daily drop since July,  Morningstar flags rising claims risk

Commonwealth Bank of Australia

Today 24:57

updates
** Shares of Australia's Helia Group HLI.AX drop 7.4% to A$5.020, on track for their worst session since July 21
** Mortgage insurance provider on Friday reported a 53.1% fall in YTD gross written premiums to A$82.5 million 
** Co attributed the decline to the loss of the Commonwealth Bank of Australia contract, the expanded government deposit scheme and slower home lending 
** Morningstar says recent low claims are unlikely to persist, citing weaker home prices, higher interest rates and rising unemployment 
** Morningstar lifts its 2026 and 2027 claims forecasts, cutting short-term earnings forecasts by an average 4%
** Adds shares remain overvalued given rising claims risk and pricing pressure 
** Stock up 8.2% YTD 
     

(Reporting by Shruti Agarwal in Bengaluru)
((Shruti.Agarwal@thomsonreuters.com;))