The S&P/ASX 200 Index (ASX: XJO) is down 0.9% today, but don't blame this rocketing ASX 200 share.
The surging stock in question is Helia Group Ltd (ASX: HLI).
Shares in the lenders mortgage insurance provider closed yesterday trading for $4.84. In late morning trade on Tuesday, shares just leapt to $5.58, up 15.3%.
This strong outperformance follows Helia's full-year 2024 results.
Read on for the highlights.
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ASX 200 share rockets on new buyback
Investors are bidding up the ASX 200 share after Helia announced an increase in the current $100 million on-market share buyback to $200 million, $121 million of which now remains outstanding.
In 2024, Helia completed $113.4 million of on-market share buybacks, reducing the total share count by 9.4%.
Turning to the core financial metrics, gross written premium (GWP) in 2024 was up 6% from 2023 to $195.6 million.
Statutory net profit after tax (NPAT) of $231.5 million was down 16% year on year while underlying NPAT of $220.9 million was down 11%. Helia said that its statutory NPAT was higher than underlying NPAT primarily due to pre-tax mark to market unrealised gains on infrastructure and equities.
The underlying return on equity (ROE) declined by 1.2% in 2024 to 19.9%.
The ASX 200 share declared a fully franked final ordinary dividend of 16 cents per share and a fully franked special dividend of 53 cents per share. That takes the full passive income payout to 69 cents a share.
Eligible shareholders can expect to receive that boosted payout on 3 April.
What did management say?
Commenting on the results sending the ASX 200 share sharply higher today, Helia CEO Pauline Blight-Johnston said, "I am pleased that our strong financial performance and capital position continue to provide us with the flexibility to support our customers, invest in strategic initiatives and undertake disciplined capital management."
She added:
Underlying NPAT was strong, albeit lower than the prior corresponding period, primarily due to a lower benefit from negative total incurred claims, with claims experience being unusually low in both FY23 and FY24.
We have intensified our strategic focus on growing the market for LMI [lenders mortgage insurance] and successfully grown and defended our LMI market share by delivering a differentiated service proposition.
What's next for the ASX 200 share?
Looking to what could impact the ASX 200 share in the year ahead, Helia said it expects 2025 insurance revenue to be between $310 million and $390 million. That compares to $389 million achieved in 2024.
The company said its total incurred claims ratio in 2025 is likely to remain well below its expectations of a through the cycle ratio of approximately 30%.
"We remain focused on our core purpose of accelerating financial wellbeing through home ownership, now and for the future," Blight-Johnston said.
The Helia share price is up 27% since this time last year, not including dividends.
