CommBank's non-renewal of contract to hit Australia's Helia hard, brokerages say

Helia

25/03/2025 24:01

Adds share moves, comments from Macquarie

** Helia Group HLI.AX marginally up 0.6% at A$3.63

** Lenders Mortgage Insurance (LMI) provider said on Monday it anticipates its current supply and service contract with Commonwealth Bank of Australia CBA.AX might not get renewed after this year

** Morningstar says, "even multiple new agreements will not fill the void likely to be left by Commonwealth Bank"

** Morningstar lowers fair value estimate by 14% to A$3.60, reflecting 40% drop in gross written premiums from 2026

** Jefferies says QBE Insurance QBE.AX is likely an alternative provider for CBA, as they already offer LMI services to CBA's unit

** Jefferies maintains "hold" rating at PT A$3.14

** Macquarie says loss of CBA negative in long run but continues to see ongoing capital generation and slightly more capital management activities

** Macquarie trims price target to A$3.55 from A$4.2

** Helia down 10.9% YTD

 (Reporting by Kumar Tanishk and Nikita Maria Jino in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk))