The Helia Group Ltd (ASX: HLI) share price fell off a cliff shortly after the market opened on Tuesday.
Helia shares dropped 19.1% to $4.70 in early trading, a dramatic decline on yesterday's closing value of $5.81.
What's going on with this ASX 200 financial share today?
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Helia share price dives as broader market recovers
The S&P/ASX 200 Index (ASX: XJO) is rebounding on Tuesday after an approximate $90 billion wipeout yesterday.
The ASX 200 fell 3.2% after a 25% surge in the Brent oil price to nearly $120 per barrel as the war in Iran continued.
The market is recovering today after US President Donald Trump said it may all be over shortly, and the oil price retreated to US$89.
But today's rising tide is not lifting all boats — least of all the Helia share price, which is the biggest faller of the ASX 200 this morning.
But there's a simple reason for the decline.
What's driving this share price crash?
It's ex-dividend day.
It's typical for a company's share price to fall on ex-dividend day because the stock is no longer trading with the next payment attached.
That means it's fundamentally less valuable.
Earnings season ended on 28 February, and Helia is among 32 ASX shares with ex-dividend dates this week.
Helia will pay a final fully franked dividend of 16 cents per share plus a partially franked special dividend of 67 cents per share for FY25.
Pay day is 26 March.
The Helia share price closed at $5.81 yesterday.
Based on that price, the next dividend represents a whopping 14% dividend yield before the impact of franking is added on top.
So it's not surprising to see the Helia share price dive today. That juicy dividend payout is no longer attached to Helia stock.
Re-cap on FY25 results
Last month, the mortgage insurer reported statutory net profit after tax (NPAT) of $244.9 million for FY25, up 5.8% on FY24.
On an underlying basis, net profit rose 12% to $247 million. Underlying diluted earnings per share (EPS) lifted 18% to 89.9 cents.
Underlying return on equity improved to 23.5%.
Helia ended FY25 with a prescribed capital amount coverage ratio of 2.03x, which is higher than the required regulatory minimums.
The strong balance sheet, a reduction in costs, and growth in premiums enabled the board to declare a big dividend this time around.
The company said:
Dividends in respect of the FY25 financial year total $343 million and are comprised of a 100% payout of FY25 Statutory NPAT and a reduction of approximately $100 million in the Company's capital base.
Helia targets a stable fully franked ordinary dividend and continues to explore options to return excess capital in an efficient and effective manner to shareholders.
