Helia Group expects to lose ING Bank as a lenders’ mortgage insurance customer.

The bank has opted for negotiations with an alternative LMI provider. Its contract represented about 17% of Helia’s gross written premium last year.

The news comes after Commonwealth Bank – Helia’s largest customer – revealed it was in exclusive negotiations with an alternative LMI provider.  

In addition, the federal government is reducing demand for the cover by acting as guarantor for more first home buyers with deposits of just 5%.

The Helia board is now undertaking a comprehensive business review.

It will consider the “response to the expected loss of new business from two significant customers and the broader impact of the recently announced changes to the government’s Home Guarantee Scheme for first home buyers on our operating environment”.

Last month, Helia appointed an interim replacement for Pauline Blight-Johnston, who stood down after more than five years as CEO and MD.

Helia shares closed 21% lower last Wednesday after the statement on ING.

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