Lenders’ mortgage insurance provider Helia Group says gross written premium totalled $50.4 million in the third quarter, up from $44.8 million a year earlier.

It has reaffirmed its forecast for full-year revenue of $375-$415 million.

January-September insurance revenue was $285.2 million, down from $331.6 million a year earlier. GWP was $135.6 million, down from $141.4 million.

Helia says demand for LMI continues to be hampered by a low level of new housing loans written above an 80% loan to valuation ratio. At that level, banks make borrowers buy LMI to secure a loan.

The federal government’s First Home Guarantee scheme and higher levels of lender self-insurance dent demand for Helia’s LMI.

Net profit in January-September was $173.6 million, down from $211.4 million a year earlier. It was $75.7 million in the third quarter, up from $63.7 million.

Total incurred claims were negative because of low levels of paid claims and a reduction in reserves. They came in at minus $15 million in the third quarter and minus $24.8 million for January-September due to “a substantial benefit from changes to liabilities for prior incurred claims ... due to dwelling value appreciation, high levels of cancellations and property sales with no claim”, Helia says.  

The group now expects full-year total incurred claims to be negative. It has previously said a negative total incurred claims outcome is caused by low levels of delinquencies and changes to the reserving basis.