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Helia’s largest LMI customer seeks new terms

Helia Group has told its shareholders Commonwealth Bank will seek a new proposal for the provision of lenders’ mortgage insurance.

CBA is Helia’s biggest customer, accounting for more than half of its $185.2 million gross written premium last year.

Helia provides LMI for new high loan to value ratio residential mortgages.

An exclusive arrangement held with CBA since 2006 had automatically rolled over until the bank insisted Helia submit a new proposal before agreeing to the current contract, which runs until the end of next year.

Westpac stopped doing business with Helia in 2015, and in 2021 NAB switched to an exclusive LMI deal with QBE, ending a relationship worth about 12% of Helia GWP.  

“Helia has provided CBA with LMI for more than 50 years and we welcome the opportunity to continue and extend our relationship,” CEO and MD Pauline Blight-Johnston said.

Shares in Helia dropped to a three-month low after the CBA announcement.