Morningstar flags shrinking demand, valuation concerns for Australia's Helia

Helia

29/10/2025 19:29

** Morningstar views shares of Australia's Helia Group HLI.AX as overvalued, citing negative operating leverage as demand in the lenders mortgage insurance business shrinks

** LMI provider on Wednesday reported a third-quarter gross written premium of A$66.1 million ($42.95 million)

** Analysts note a 33% rise in co's Q3 gross written premium, driven by higher lending volumes, but flag that results trail historical levels, with demand hurt by the government's expanded 5% deposit scheme and higher interest rates

** Say that although Helia aims to win new clients, analysts don't factor that potential upside in their forecasts

** However, analysts lower uncertainty ratings, considering tightened lending standards by banks, and improved exposure management by co

** YTD, stock up 43.1%

($1 = 1.5389 Australian dollars)

 (Reporting by Shruti Agarwal in Bengaluru)

 ((Shruti.Agarwal@thomsonreuters.com))