Helia Group Limited · ASX:HLI
Helia — Investor Presentation (April 2021)
21 slides from Helia's investor presentation, Apr 30, 2021
Slide 1: 1Q21 Financial Results Presentation
30 APRIL 2021 1Q21 Financial Results Presentation
Slide 2: Disclaimer
Disclaimer This presentation contains general information in summary form which is current as at 31 March 2021. It may present financial information on both a statutory basis (prepared in accordance with Australian accounting standards which comply with International Financial Reporting Standards (I
Slide 3: Agenda
Agenda 01 Overview 02 1Q21 Financial result 03 Summary Pauline Blight- Pauline Blight- Michael Bencsik Johnston Johnston CFO CEO & MD CEO & MD Pages 8 - 13 Pages 4 - 7 Page 14 04 Supplementary slides 05 Glossary Pages 15 - 18 Pages 19 - 20 3 1Q21 financial results – produced by Genworth.
Slide 4: Overview
Overview Strong underlying result offset by investment losses Strong underwriting result offset by • 1Q21 Underwriting result of $35m unrealised • 1Q21 Statutory NPAT of $3m, includes $27m of mark to market losses investment losses • 1Q21 Underlying NPAT of $30m. Economic • Unemployment and house pr
Slide 5: Stronger than expected economic recovery
Stronger than expected economic recovery Clearer picture expected to emerge as stimulus measures end Unemployment • Number of employed people and hours worked now both above pre-COVID-19 levels • Government stimulus programmes, including JobKeeper, are being wound back from 31 March 2021. Data sourc
Slide 6: Genworth Financial divestiture effective March 2021
Genworth Financial divestiture effective 3 March 2021 Transition of services provides opportunity to simplify the business Impact on GMA • Customer contracts unaffected • No changes to Senior Leadership Team • Existing Insurer Financial Strength credit ratings of ‘A’ affirmed by S&P and Fitch • Capi
Slide 7: Strategic customer focus
Strategic customer focus Repositioning the customer value proposition for sustainable growth Improve the efficiency and Reimagine LMI for a new Leverage our core capabilities competitiveness of LMI generation of home buyers into complementary offerings • Automating operational • New lender customer
Slide 8: 1Q21 income statement
1Q21 income statement Business performance stabilising ($ millions) 1Q20 2Q20 3Q20 4Q20 FY20 1Q21 1Q21 v 1Q21 commentary: 1Q20 (%) • GWP growth reflecting Gross written premium 114.1 125.3 143.8 178.7 561.7 142.7 25.1% higher LMI flow volumes Movement in unearned premium (21.4) (32.6) (46.7) (79.7)
Slide 9: Strong GWP volume growth
Strong GWP volume growth Driven by robust market conditions New insurance written Gross written premium Net earned premium $b $m $m • Owner-occupiers and first home • Higher business volumes continue • Ongoing GWP growth is driving buyers supporting lender customer to drive growth over prior year in
Slide 10: Net claims incurred
Net claims incurred Timing of claims continues to be delayed ($ millions unless otherwise stated) 1Q20 2Q20 3Q20 4Q20 FY20 1Q21 1Q21 net claims incurred Number of paid claims (#) 333 358 332 231 1,254 186 movements driven by: 1 Average paid claim ($’000) 92.7 97.0 99.4 95.9 96.3 67.2 • Number of pai
Slide 11: Balance sheet
Balance sheet Balance sheet strength with $3.5b in cash and investments Balance sheet as at 31 March 2021 ($ millions) 31 Mar 20 31 Dec 20 31 Mar 21 1Q21 commentary: Assets • Deferred reinsurance expense increased Cash 71.0 104.6 42.4 following the renewal of the reinsurance Accrued investment incom
Slide 12: Cash and investments portfolio
Cash and investments portfolio Well-diversified portfolio with average maturity of 4.2 years1 ($ millions) 1Q20 2Q20 3Q20 4Q20 FY20 1Q21 Net interest income and dividend income 14.9 12.3 10.2 9.8 47.2 8.8 Realised gains on investments 8.3 20.7 17.7 0.8 47.5 1.9 Unrealised gains / (losses) and net FX
Slide 13: Regulatory capital
Regulatory capital Strong regulatory capital position maintained ($ millions) 31 Mar 20 31 Dec 20 31 Mar 21 NIW1 by original LVR band and probable Capital base maximum loss Common equity Tier 1 capital 1,199.2 1,426.3 1,502.6 $b Tier 2 capital 200.0 190.0 190.0 Regulatory capital base 1,399.2 1,616.
Slide 14: Summary
Summary Focus on customer value proposition for sustainable growth Sound business fundamentals • GWP growth underpinning NEP growth • Continued focus on the quality of new business • Improving economic outlook supporting profitability. Outlook • Lender customer loan restructures likely to impact del
Slide 15: Supplementary slides
Supplementary slides Genworth
Slide 16: Insurance in-force
Insurance in-force As at 31 March 2020 As at 31 March 2021 $ Original Effective Change in $ Original Effective Change in Book year % Book year % billions LVR LVR house price % billions LVR LVR house price % 2010 & Prior 89.1 32% 78.1 36.5 77% 2010 & Prior 84.9 29% 78.1 32.8 86% 2011 10.9 4% 82.9 56.
Slide 17: Delinquency trends
Delinquency trends Delinquency roll 1Q20 2Q20 3Q20 4Q20 1Q21 Opening balance 7,221 7,274 7,614 7,422 6,964 New delinquencies 2,326 2,662 2,552 1,828 2,082 Cures (1,940) (1,964) (2,412) (2,055) (1,981) Paid claims (333) (358) (332) (231) (186) Closing delinquencies 7,274 7,614 7,422 6,964 6,879 Delin
Slide 18: Reconciliations
Reconciliations Statutory NPAT to Underlying NPAT ($ millions) 1Q20 2Q20 3Q20 4Q20 1Q21 Statutory net profit / (loss) after tax (125.6) 35.6 24.6 (42.2) 3.4 Unrealised (gains) / losses and FX 32.0 (25.6) 4.0 (5.7) 38.5 Adjustment for tax (expense) / credits (9.6) 7.7 (1.2) 1.7 (11.6) Underlying net
Slide 19: Glossary
Glossary As at 31 March 2021 Term Definition Term Definition Ageing Movement in reserves on any insurance policy that remains in a Earnings curve Is based on an analysis of claims incidence. This curve determines delinquent state (3+ months of missed payments or Mortgage In the proportion of the une
Slide 20: Glossary
Glossary As at 31 March 2021 Term Definition Term Definition Level 2 A term defined by APRA under GPS 001 referring to a consolidated Risk margin An additional amount that is added to the central estimate loss insurance group forecast and reserves to reflect the inherent uncertainty in forecasting l
Slide 21: For more information, analysts, investors and other interested parties should contact
For more information, analysts, investors and other interested parties should contact: Paul O’Sullivan Head of Investor Relations D: +61 499 088 640 The release of this announcement was authorised by the Board.