Helia says the Australian lenders’ mortgage insurance market’s gross written premium fell 14% in the first three months of the year even as high loan to value ratio mortgage numbers grew by a quarter compared with a year earlier.

The federal government’s 5% deposit scheme and lender self-insurance reduced demand, according to the LMI specialist, which today reported a 25% drop in first-half net profit to $100 million.

Interim CEO Michael Cant – who hands over to Mark Senkevics on October 19 – says Helia performed well despite a challenging industry backdrop.

“Most first home buyer demand went to the government’s 5% deposit scheme,” Mr Cant said.

“Lender self-insurance and LMI waivers have continued to be elevated amongst the major banks.”

The result was helped by continuing low mortgage payment delinquencies and strong portfolio equity after house prices rose in recent years, but tax changes outlined in the 2026-27 federal budget “represent further headwinds”.

Helia’s GWP fell 44% to $61.6 million in the first half after the loss of major client CBA from January. Its market share is now about 30%.

Industry arrears were steady and the overall delinquency rate was flat for the half-year, while the proportion of Helia’s portfolio in negative equity remains “very low”.

CFO Craig Ward says the level of positive equity gives Helia a “reasonable buffer” if there are modest falls in house prices.

“New business conditions have become more challenging, with higher interest rates, changes in tax legislation for investor lending and a government scheme all creating potential headwinds for the LMI volumes,” he said.

Helia has renewed its contract with ING Bank, which accounted for 22% of first-half GWP, and with AMP Bank.

It has also announced an on-market share buyback up to $75 million, or about 5% of its shares. The stock rose 10% to $5.61 on Tuesday.