Helia Insurance Pty Ltd.

The stable outlook on Helia reflects our view that it will maintain its strong competitive position as the largest provider of LMI in Australia, as well as strong capital adequacy for at least the next two years. Although unlikely, we could lower the ratings on Helia over the next two years if there is: A deterioration in its competitive position, resulting in a material weakening in its market share; A material decline in its operating performance; or A weakening in its prospective capital position to below the 'Strong' level, under our global insurer capital model. We could raise the ratings on Helia over the next two years if our prospective view of its capital adequacy sustainably improved to the 'Very

...Helia Insurance Pty Ltd. will maintain its market leadership in the Australian lenders' mortgage insurance (LMI) sector for the next three years. The insurer is the oldest and largest provider of LMI in Australia and has most key customers contracted for the next two to three years. Our strong competitive position assessment recognizes some concentration in Helia's customer base, with its largest customer accounting for over half of its premiums, as well as its limited product diversity as a monoline insurer. We expect Helia to maintain a robust capital position. The insurer has strong capital adequacy, according to S&P Global Ratings' mortgage insurance capital model, and a regulatory capital ratio well above its target range. We forecast the company's capital position will remain sound, with no material impact from ongoing capital management actions that reflect reducing capital requirements due to the run-off of its in-force book. We also view the change to Helia's net assets with the...

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