Helia Insurance’s CAR will remain afloat for the next 2 years

Its monoline business and reliance on a single customer pose concentration risks

S&P Global Ratings assigned Helia Insurance to have a stable outlook and is expected to uphold its strong market position, solid earnings, and robust capital adequacy over the next two years. 

The new criteria increased Helia's total adjusted capital (TAC) by removing haircuts to liability adjustments and recalibrating mortgage insurance premiums and reserve risk charges, resulting in lower capital requirements. 

These changes, however, do not materially affect Helia's capital adequacy assessment, S&P Global said.

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Helia maintains a strong competitive position as the largest provider of Lenders Mortgage Insurance (LMI) in Australia, supported by solid earnings and robust capital adequacy. 

Although its monoline business and dependency on a single customer for half its premiums pose concentration risks, Helia's strong market share and a panel of mortgage lender customers sustain its premiums and operational performance.