Research Update: Helia Insurance Pty Ltd. 'A' Ratings Affirmed Following Revised Capital Model Criteria; Outlook Remains Stable

On Nov. 15, 2023, we published our revised criteria for analyzing insurers' risk-based capital (see "Insurer Risk-Based Capital Adequacy--Methodology And Assumptions"). The revised risk-based capital criteria have no material impact on the prospective capital adequacy of Helia Insurance Pty Ltd. (Helia), and no impact on the credit ratings. We affirmed our 'A' long-term financial strength and issuer credit ratings on Helia. At the same time, we affirmed our 'BBB+' long-term issue rating on the insurer's subordinated debt. The stable rating outlook reflects our view that Helia will maintain a strong competitive position, solid earnings, and robust capital adequacy over the next two years. On May 15, 2024, S&P Global Ratings affirmed its 'A' long-term financial strength and issuer credit ratings

...Key strengths Key risks Strong competitive position, with support from its leading market share in Australia's lenders mortgage insurance (LMI) sector. Monoline business and relatively concentrated client base. Solid capital adequacy, underpinned by conservative reserving practices. Operating performance sensitive to economic conditions. Low-risk investment portfolio and low financial leverage....

Research Update