The Helia Group Ltd (ASX: HLI) share price is charging higher on Wednesday after the mortgage insurer released its full-year results.
In mid-morning trade, Helia shares are up 15.71% to $6.225. By comparison, the All Ordinaries Index (ASX: XAO) is 0.9% higher.
Here is what the company reported for the year ended 31 December 2025.
Profit edges higher as claims remain contained
Helia delivered statutory net profit after tax (NPAT) of $244.9 million for FY25. This was up 5.8% compared to the prior year.
On an underlying basis, net profit rose 12% to $247 million. Underlying diluted earnings per share (EPS) increased 18% to 89.9 cents.
The company said favourable claims experience helped support earnings. Gross loss ratios remained well below long-term averages, while delinquency rates declined during the year.
Insurance revenue fell 5% compared to FY24, reflecting lower gross written premium from recent book years. However, gross written premium for FY25 increased 23% to $240 million.
The company also noted that new insurance written increased during the year, supported by solid housing credit growth and continued lender demand for lenders mortgage insurance.
Underlying return on equity improved to 23.5%.
Capital position supports large dividend
A major focus for investors was Helia’s capital management.
The company ended the year with a prescribed capital amount coverage ratio of 2.03 times, representing a strong buffer above regulatory minimum requirements.
Helia declared a fully-franked final dividend of 16 cents per share. It also announced a special dividend of 67 cents per share. In total, shareholders will receive 83 cents on 26 March.
Total dividends for FY25 came to 126 cents per share. The company said FY25 dividends represent a 100% payout of statutory NPAT, alongside a reduction of approximately $100 million in its capital base.
Balance sheet and investment trends
Net investment revenue declined 17% over the year due to a smaller investment portfolio and unrealised losses in the second half.
Insurance contract liabilities fell 5% during the half year, reflecting favourable claims experience and changes in the reserving basis.
Net tangible assets per share finished the year at $3.71.
What about FY26?
Looking ahead, Helia expects FY26 insurance revenue to be between $320 million and $370 million.
Management also expects the total incurred claims ratio to remain well below long cycle average levels.
Overall, Helia delivered modest profit growth, maintained favourable claims performance, and returned significant capital to shareholders.
The sizeable special dividend and strong capital position appear to be key reasons the Helia share price is moving higher today.
The post Helia shares rocket 15% on full-year results. Here’s why appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.