Bulletin: Helia's Strong Profits To Persist Amid Softer Volumes

SYDNEY (S&P Global Ratings) Aug. 22, 2023--Favorable operating conditions should continue to support full-year 2023 (year to Dec. 31, 2023) earnings for Australia-based lenders' mortgage insurer Helia. While we expect claims to gradually rise off the low base, Australia's low unemployment rate and property price resilience, together with sound underwriting practices, will support earnings. Helia Insurance Pty Ltd. (A/Stable/--) reported a net profit after tax of A$147 million for the six months to June 30, 2023 under AASB 17, with claim writebacks and strong investment returns the key drivers. This came despite a 49% decline in gross written premiums on the prior comparable period, due to lower industry mortgage volumes and the Australian government's Home Guarantee Scheme. We expect Helia's

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