Helia Group’s board has engaged an independent adviser to review employee share trading before news broke the insurer was on track to lose its largest customer.  

Commonwealth Bank said in March it had entered into exclusive negotiations with an alternative provider of lenders’ mortgage insurance, pointing to the end of a 50-year relationship with Helia.

Helia stock slumped by a quarter on the expected contract loss.

Since late February, CEO Pauline Blight-Johnston had sold shares worth about $2.6 million.

Helia previously said she sold in an allocated window for staff and directors to trade after reporting earnings results.

“The board believes there is no indication of any breach of law or company policy by Helia or any of its people in relation to these matters,” chair Leona Murphy said last week.  

“The review is highlighting opportunities to uplift Helia’s governance, including our policies and processes. The board will be considering the expected loss of the CBA contract and the outcomes of the review in determining 2025 remuneration outcomes.”  

Ms Blight-Johnston says the CBA news was unwelcome but housing affordability challenges support an ongoing need for LMI in Australia.  

“We were of course disappointed, [but] growth in the LMI industry ... should partially mitigate the reduction in new business from the expected loss of the CBA contract.

“LMI remains an important tool for home upgraders and investors.”

Helia also says it will “proactively engage” with politicians as the re-elected Labor government finalises expansion of the Home Guarantee Scheme.  

Planned changes to income and property price limits and an uncapped number of places are likely to significantly expand the program among first home buyers, who made up 25%-30% of Helia’s gross written premium last year.

“Helia will engage with government with the aim of seeing the policy modified to ensure an ongoing vibrant LMI industry,” the insurer said.

Helia had more than 810,000 policies in-force and insurance in-force of $235 billion at the end of last year. It offered loan deferrals and restructures to 11,000 Australians experiencing hardship last year.

Ms Blight-Johnston says labour market strength has enabled most homeowners to continue meeting their mortgage obligations.

“Similar trends have continued so far into 2025, with benign claims experience driving strong profitability and new business growth continuing,” she said.

Helia’s first-quarter GWP was $51 million, up from $38.4 million a year earlier, driven by more mortgages above the 80% loan to value ratio, plus increased market share.