Helia Group shares slump as ING seeks new mortgage insurance partner
Investing.com-- Shares of Australian insurer Helia Group Ltd (ASX:HLI) tumbled on Wednesday after the company said ING Australia was seeking an alternate provider for mortgage insurance services.
Helia’s shares slumped 27.4% to A$3.98, their weakest level since early-April, and vastly lagging a 0.5% rise in the ASX 200 index.
Helia said on Wednesday that ING Australia had informed the insurer that it was in talks with an “alternate provider” for lenders mortgage insurance services. While the ING contract is only set to expire on June 30, 2026, Helia said ING could terminate the contract with three months notice.
The ING contract accounted for roughly 17% of Helia’s gross written premium in 2024, representing a sizeable chunk of the company’s earnings.
Helia, formerly known as Genworth, said its board had commenced a “comprehensive business review” to respond to the expected loss of new business. ING is potentially the second major client loss for Helia this year, after the company in March disclosed that it was almost certain to lose its contract with Commonwealth Bank Of Australia (ASX:CBA). CBA was seen entering negotiations with a rival.
Helia shares are trading down nearly 14% so far in 2025.
