Australia's Helia Group tumbles as ING explores alternatives

Helia

02/07/2025 05:11

Updates with share moves, analyst comments

** Helia Group HLI.AX shares down 22.2% at A$4.265

** Top pct loser on the ASX 200 benchmark index .AXJO, which is up 0.4%

** Earlier, stock down as much as 28.5%

** Mortgage insurer reports ING Bank (Australia) seeking alternative provider; contract expires on June 30, 2026

** Initiates review to consider of loss to business

** About 1.2 million shares change hands, 1.7x 30-day average volume

** Morningstar cuts HLI's 2027 gross written premium outlook by 30% on ING contract termination assumption

** Maintains fair value estimate of A$3.60, factoring in contract loss from 2027, with assumptions of more material operational costs savings and lower tech investment offsetting earnings hit

** YTD, shares up 4.2%

 (Reporting by Sherin Sunny and Nichiket Sunil in Bengaluru)

 ((Sherin.Sunny@thomsonreuters.com;))