MELBOURNE (S&P Global Ratings) March 24, 2025--Australia-based Helia Insurance Pty Ltd. faces a decline in its competitive position due to a potential loss of its supply and service contract with the Commonwealth Bank of Australia (CBA). Helia's (A/Stable/--) heavy reliance on CBA already moderates our view of the insurer's competitive position. CBA accounted for 44% of Helia's gross written premiums in fiscal 2024 (ended Dec. 31). The termination of the contract would hinder future business flows for the supplier of lenders' mortgage insurance. Given that earnings are recognized over 15 years, the effect on operating performance would be gradual. If the contract is not renewed, we would review Helia's strategy for new business initiatives and financial management objectives. Integral to
