Helia Group has appointed an interim replacement for Pauline Blight-Johnston, who is standing down after more than five years as CEO and MD.

CFO Michael Cant will step in as leader from next month, and head of finance Craig Ward has been appointed interim CFO.

“Following changes to the lenders’ mortgage insurance industry outlook and the customer portfolio of the company ... it is appropriate for a change in the scope of the CEO and MD role,” Helia said today. 

The LMI insurer had more than 810,000 policies in-force at the end of last year, but Fitch Ratings estimates its market share will drop to 21% from 38% after its largest customer, Commonwealth Bank, this year ended a 50-year relationship.  

In 2021, NAB switched to an exclusive LMI deal with QBE, cutting about 12% from Helia’s GWP. Westpac stopped doing business with Helia in 2015.

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

The move means buyers no longer need a 20% deposit to avoid banks insisting they buy LMI, which protects lenders against mortgage default.

The Insurance Council of Australia calls the government policy effective nationalisation of mortgage default risk, and Helia wants it “modified to ensure an ongoing, vibrant LMI industry”.

Helia’s board recently engaged an independent adviser to review employee share trading before news broke the insurer would lose the CBA business, which sent the listed stock down by a quarter.  

Ms Blight-Johnston had sold shares worth about $2.6 million since late February. Helia says she sold in an allocated staff window after 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 month. “The review is highlighting opportunities to uplift Helia’s governance, including our policies and processes. The board will be considering the ... CBA contract and the outcomes of the review in determining 2025 remuneration.”

Today, Ms Murphy said the board “would like to thank Pauline ... She has led from the front during a period of significant change for the LMI industry and for Helia. I wish her all the very best for this next phase in her career.”

Ms Blight-Johnston, a former KPMG partner, became Helia CEO in March 2020.

She says it has been an “absolute privilege” to lead the business, which changed its name from Genworth Mortgage Insurance Australia in 2022 after separating from US-based Genworth Financial.

“I would like to thank all of our lender customers, shareholders, staff and board for your partnership and trust in me, and wish the company continued success as it navigates its new landscape,” Ms Blight-Johnston said today.