Prominent second-tier lender signs four-year contract with Australia's largest specialist provider of lenders mortgage insurance
Lenders mortgage insurance (LMI) provider Helia has received a piece of good news in the form of a four-year contract with ING.
Australia’s largest specialist provider of LMI previously lost its contract with Australia’s sixth-largest mortgage lender when ING announced last August that it had “decided to proceed with negotiations with an alternate provider”.
Just months earlier, Helia also announced the departure of its cornerstone client Commonwealth Bank for boutique rival Arch. CBA subsidiary Bankwest also moved to the challenger LMI provider.
It has been trying times for Australia’s three main LMI providers – Helia, Arch and insurance multinational QBE – with the government’s expanded 5% Deposit Scheme eating into a significant portion of their customer base.
From January 2026, Labor's expansion of the First Home Guarantee scheme removed income caps and annual quotas, allowing effectively all Australian first-home buyers to purchase with just a 5% deposit, thus eliminating the need for LMI for that borrower segment.
Helia chair Leona Murphy was candid about the group’s challenges in a May shareholder update.
“The loss of the Commonwealth Bank contract was significant, and I want to be straightforward about that. Following a competitive process, Commonwealth Bank selected an alternative LMI provider for new business from 2026,” said Murphy.
However, Murphy added that Helia’s “scale, balance sheet strength, risk discipline and experience across market cycles provide a strong foundation to navigate this change and continue creating value for shareholders… This is a business that knows what it does well and is focused on the path ahead".
With ING coming back to Helia for a period of at least four years from 1 July, the group has regained a client that represents approximately 20% of its gross written premiums (GWPs).
“We are pleased that ING has chosen to retain Helia as their exclusive LMI provider, reflecting our deep expertise in risk management for home lending. We look forward to continuing our longstanding partnership,” interim chief executive Michael Cant (pictured) told MPA.
Read more: Five biggest misconceptions brokers have about lenders mortgage insurance
Today’s hit of good news didn’t manage to move the needle too much on the share price front, with Helia stock jumping just shy of 1% in early trades before heading 2% lower.
However, the stock has held up surprisingly well despite the numerous headwinds the company is facing. Despite a sharp fall last March on the back of CBA’s departure, it has since recovered and is up over 23% on a year-on-year basis.
