Acknowledging the traditional owners of the lands on which we meet today, the Cammeraygal people of the Eora Nation. Annual general meeting. It's now 11:00 A.M. I've been informed that the necessary quorum of shareholders- a hybrid AGM, so shareholders will be attending virtually and will be able to view an online meeting guide released on the ASX on the 26th of March, 2026, set out- of meeting as read.
Before I proceed with my formal address and the formal business of the meeting, I would like to introduce Andrew Moore, Chair of the People and Remuneration Committee. JoAnne Stephenson, Chair of the Risk Committee. Our interim CEO is also present at the meeting, as is Brady Weissel, our Deputy General Counsel and Assistant Company Secretary, who's gonna be assisting us with the proceedings. Ms. Ewan is available to answer any questions in relation to the audit. I will now outline how shareholders can participate in this meeting, which we have a few, so welcome. You may raise your hand and ask a question at the relevant time. Registered for an electronic voting card. Please click on Ask a Question box and on the Go to Webphone box.
When I call for questions and comments on each of the item of the business that relates to the comment or question that you have. If at any time, I encourage all shareholders to participate in the meeting today, and the online platform, and during the item of business which your question relates. All questions you submit through the online questions if we do receive multiple questions on the same topic. If you do experience any at the top of the page. If we experience any technical issues here, I may to all virtual attendees. With all of that behind us, on behalf you very candidly this morning. 2025 brought some challenges for Helia.
We saw the federal government's expansion of the 5% Deposit Scheme challenges and why I believe Helia is in a better position today than it was 12 months ago. Underlying net profit after tax was AUD 247 million, up 12% compared to the. We returned AUD 343.4 million to shareholders through ordinary and. Has significantly outperformed the ASX 200, placing us among the top performers in the. Average ratio was 2.3 x, comfortably above our target range of 1.4x. Will continue to assess opportunities to return excess capital to shareholders in a prudent. Following a competitive process, Commonwealth Bank selected an alternative LMI provider.
Including a thorough assessment of strategic options, considering the structural changes with the First Home Buyers Scheme. Risk discipline and experience across the market cycles provide a strong foundation. We remain the market leader, holding approximately 51% of the total in-force portfolio. Helped more than 1.2 million home buyers achieve that goal. As we navigate these changes, we also remain focused on the broader foundations of resilience, data privacy, and regulatory compliance. These priorities are part of. I want to directly address the matter that is in front of some of our shareholders' minds. The Board had already commissioned an independent review into the employee share trading that occurred by Helia or any of its people. It did identify opportunities for us to trading policy.
We made changes to our disclosure committee and made changes to our conflicts and delegations understand concerns so that we could respond thoughtfully. Over the past year, listened carefully. Listened to the concerns raised and to the constructive feedback offered. applied downward discretion to executive remuneration outcomes to reflect material events, including a positive risk modifier in our short-term incentive plan, and simplified and improved disclosure. That was directly in response to what our shareholders told us. Now, I'm grateful for the remuneration report reflects a framework that is more transparent, more accountable, and continues. support is currently at 99%, with votes received prior to the meeting. We've appointed an external search firm to assist with the recruitment of a permanent CEO.
Sizing the business, maintaining a clear agenda around growth, cost reduction, and capital. Additionally, I would like to use this opportunity to acknowledge and thank Duncan West. Speaking of the Board, the collective skills of the Board and succession plan for directors are. Andrew and I are both standing for re-election today, and we will speak to our resolutions shortly. Confident in the company's foundations. We have strategic clarity and capacity to. This year has asked more of this company than most. The Board heard what shareholders said. I want to thank you for your continued trust and support, and I would also like to thank Michael Cant for collaboration. I now would like to invite Michael to address shareholders before we move to the.
Thank you, Leona, and good morn-
Cant, Helia's Interim Chief Executive Officer. I'm pleased to be here today to discuss Helia's Accelerate Financial Wellbeing Through Home Ownership. This focus continues to guide our decision helping home buyers at different stages of their property journey. In 2025, as Leona highlighted, despite a number of challenges in 2025, we delivered another strong result from the prior year, which resulted in a return on equity of 23.5%. While this was the highest level of new business in three years, premium does remain with higher levels of lender self-insurance. Credit conditions in the last year to negative total incurred claims. Operating expenses were down 8%. Significant level of capital and further value embedded in the in-force portfolio. Trusted risk partner for home lending.
Our strategy for delivering this is grounded in our strong industry expertise to support growth of both our existing and new lender customers. We are also simplifying and strengthening the business by redesigning how the company operates, enabling Helia to deliver frictionless service to our customers. Gear up for continued success. The loss of the Commonwealth Bank contract . We've evolved our customer value proposition to ensure that it continues to be competitive. We renewed exclusive contracts with five lender customers in 2025, including Bank. Renewed additional customer contracts, including with AMP Bank. We have a modern and agile technology platform, which has recently been fully migrated to a redesign and automation of operational processes. We are embracing the efficiency of our people.
Our progress in these areas resulted in a AUD 15 million strong, reflected in a score of 80% in the 2025 employee engagement and taken an active approach to addressing AI governance. Benefits, development opportunities, and initiatives that support an inclusive and equitable work. Employee engagement did decline year-on-year in 2025. However, on supporting our people through change, and we're recognized as an employer of choice in the insurance Workplace Gender Equality Agency as an employer of choice for the 12th consecutive year. Trading conditions for the first quarter of the 2026 financial year continue the same trend. New business from Commonwealth Bank from the end of January and the expanded 5% deposit scheme. Insurance revenue changes much more gradually, and first quarter insurance revenue was down AUD 9.5 million, reflecting low delinquencies and strong levels of positive equity.
Spreads leading to unrealized losses on the bond portfolio. This has yield on our portfolio. The regulatory capital base remains well above pressures driven by inflation and successive interest rate rises. While this line, benefiting from a continuing strong employment market and high levels of embedded challenge in Australia, and with it the vital role that LMI and Helia can play. Volumes, while adding to borrower demand, which is putting upward pressure on house prices public support flows to households most in need of assistance, and that government schemes complement. change from our earlier guidance for financial year 2026. Insurance revenue is expected to remain well below the historical through the cycle average. Of the credit cycle. With a strong capital position, a large in-force stability and resilience that we've done for 60 years.
In closing, I'd like to thank all the Helia staff for their hard work and commitment. I'd also like to thank our lender customers. Finally, thank you to our shareholders for your ongoing trust and support. We'd like to hand back to Leona to conduct the formal business of the meeting.
Michael. At this time, I'd like to give shareholders an opportunity to ask any general questions that they may have. Confirm that no general questions were received by shareholders prior to the meeting. If they haven't already, I now invite those shareholders in the room who would like any to ask any questions. Do we have any microphones, maybe?
Yeah.
Yep.
Right there.
There we go.
Okay.
My question. AI is coming. With it is coming, have you factored in an increase in the delinquencies rate?
Yes, thank you very much for your question. AI is all relevant. As you know, what drives claims in the LMI business and for Helia default. We take a long-term view of our pricing. We have been in a very low claims environment to date. Yes, I think, you know, there is a risk that unemployment is for when we consider our reserving and our pricing.
Okay. Thank you.
Thank you.
There was a gentleman at last year's AGM who asked. That was such a good idea. I do wonder whether diversification might be considered.
Yeah, it's a good question, and one that has been. Those things that are on your mind. As we mentioned earlier, as a result of the of the CBA account, we did think that it was an opportunity to take a step back and do a bit of a. What are the consequences of that for our ability to compete in that industry and continue to. spectrum, which is putting the business in runoff right through to the other end of the spectrum, which is diversification.
Home lending risk, and also the fact that our skills, capabilities, and experience on being Australia's leading risk partner for home lending, which includes obviously. There are three things that we need to do and that we need to focus on. First one is our customer value the mid-tier banks to the smaller customer-owned banks, what our proposition is to pricing, both our actuarial pricing but also our commercial pricing and how we go to expense base is commensurate with the size of the organization that we're managing. We believe that there's value for shareholders.
Yeah, just a comment. I think it's congratulations on that and certainly, like your.
We appreciate it. Any other questions from the room?
Questions through the online platform today. The first question is from Mr. Stephen Mayne. "If the scheme was to be tweaked, what sort of changes would we recommend? Do any other countries.
To that, and then I'll get Michael to talk in a little bit more detail around the work that we to opine on how well or otherwise the government has consulted, which we do, and to talk through some of the gaps that might exist in the scheme. Michael, helpful for you to talk through some of your engagements with government.
Yeah. Three years around the scheme. They understand our concerns, both for the impact on the LMI industry potential unintended impact, particularly in competition in the lending market with the major banks. We've been very active in communicating that and will continue to do so. Look, the origins of this scheme were originally a very narrow means serviced by the private market. And we think ultimately there's a good enabling the private sector to support the majority of the market, and we'll continue to make that position.
Offshore schemes. Look, I'm not an expert in every jurisdiction. It's a function of the regulatory environment that exists in Australia. I think the government policy is quite different in other countries.
Great. Thanks Michael. Australia's biggest home lender, CBA, doesn't report any bad debts in its enormous home loan. As residential prices continue to rise nationally to new records, through a seizure and sale process. Okay. This is an interesting product, and I would call our claims experience lumpy. A consistent frequency and loss profile within parameters. That's not the way that lenders mortgage- or LMI, stepping in and kicking in, hit. This is more in times where, you have interest rates impacted, housing prices impacted. We've had very benign and low claims environment. If you look through the long term, that's not been. Thank you so much. I'll now take any questions received over the web phone.
I'll now briefly run through the formalities for casting your votes. For those indicates a non-voting shareholder, and a red indicates also a visitor, but also non-voting for the card that you are holding. The barcode on the voting card is personalized. Votes to be counted. Your voting card will be collected at the end of the meeting. For shareholders attending Please click Get a Voting Card and follow the prompts if that's the case. On your screen. Live voting on the online platform will close five minutes. Those that are attending online, to submit a full vote in respect of all of your shares, please ensure for the relevant resolution. To submit a partial vote, please ensure you're in the entitled to vote will be listed under each of the resolutions.
You cannot vote if you're of casting a direct vote or alternatively appointing a proxy. If you are a ticking or marking either the for or against box for each resolution. If you're a proxy wish to cast your open votes. We have received proxy votes and direct votes in respect to approximately 70 and those that have voted by proxy or direct vote. Accordingly, each resolution forward, we will display the proxy and direct votes that have already been received. I have been appointed as a proxy with the discretion on how to vote. I intend to vote all shares. Resolution 4. There are three resolutions to be voted on today. As I said, votes validly cast on Resolution 1 are against that resolution.
The first item of business is the receipt and consideration of the company's annual financial reports. The reports were contained in the 2025 annual report, which was released to the ASX and Helia's report. I will take these reports as read. There is no vote for this item, but there is one on the remuneration report. Ms. Leanne Ewan, our audit partner from KPMG is available. No written questions were received for the auditor ahead of the meeting. Doesn't seem like there's any questions in the room. I will now take questions.
The online platform from Mr. Stephen Mayne. The first one is, what are the gardening leave elements of her departure, and are there any still at Helia Group?
Okay. I might just do the first question, the first part of that question. One was around share trading and Pauline exiting the organization. The two are not related.
Grants in play even though she's no longer at Helia's?
She has previous CEO, and so those LTIs do remain on foot, and they remain on foot as per her contract.
The second question from Mr. Mayne is strong support today. Was the departure of the CEO a factor?
It's because, as I mentioned in my address, we spent a lot of time engaging with shareholders. It's outlined in the remuneration report in some detail around what changes that we made. I don't think it was any one thing. I think it was the fact that we took the opportunity, listened, heard, aligned with that feedback and did so in a transparent way. I can't see one.
Stephen Mayne is, how many institutional shareholders did you meet with the Australian Shareholders' Association ?
Yeah. Over the course of a six-month period, we did meet 20 institutional shareholders that we met, and we met with all proxy advisors.
practice hybrid AGM with early proxy disclosure, including headcount data. Rio Tinto last night. Will you also publish a copy of the webcast resolution in the poll results? If you do that, you're a best practice plus.
To confirm that we will be best practice because we will be publishing all of those results as well.
Further questions at this time.
Great. I'll now take questions, if there are any. We will move to the first resolution. The first resolution relates to the company's remuneration report, which forms part of the Director's report, was released on the ASX and Helia's website and sent to shareholders and accompanied the notice of meeting. I remind shareholders that this vote is advisory only. Shareholders should also note that if 25% or more of the votes validly cast on resolution. Before putting that resolution forward, I would like to advise shareholders that the company will disregard notice of meeting. The directors recommend that shareholders vote for this resolution. I now received in relation to this resolution. I now invite those shareholders in the room. There being no questions in the room, I will now take anything received on the online platform.
Thank you, Chair. There are no questions.
Briefly giving you time to cast your vote. Moving to Resolution 2, I will now ask JoAnne Stephenson to facilitate. JoAnne, please.
Thanks, Director. Leona was appointed to the Board on the 1st of November 2022. Leona's an experienced Chair and non-executive Director of ASX listed, Chair and President of the Royal Automobile Club of Queensland Limited, and Chair as an advisory Board member at the Climate Ready Initiative, an initiative hosted by Griffith University. She holds a Bachelor of Commerce in Accounting and Law from Griffith University and has been United Nations Committee. You can find also a brief summary of Leona's experience and qualifications on. Recommend that shareholders vote for this resolution. I'd now like to invite Leona.
Thank you, shareholders, for the opportunity to stand for re-election to the Helia Board. For Helia. It's been a demanding and rewarding tenure for me as Chair, and I'm the governance matters that I addressed earlier. I'm standing for re-election because I think this experience I bring more than 25 years experience in general insurance and financial services and deep value chain. Alongside my corporate experience, I've also worked with and led organizations and structural change. I'm committed to continuing to work with the Board and the executive. Thank you for your consideration.
Screen, along with the proxy and direct votes received in relation to the resolution. No questions in the room. Thank you. I'll now take questions received through the online platform over the web phone.
Thank you. There are currently no questions.
Thank you. To voting on this resolution. I'll pause briefly again while you cast your vote. Thank you. For those in the room at least, I can see you voted. Thank you very much. I'll now hand back to Leona.
I now turn to Resolution 3, the re-election of Andrea Waters as director, re-elected at the 2023 AGM. Andrea has over 40 years 2012, specializing in financial services audit and has deep experience in risk management and Australia and New Zealand, and a member and accredited facilitator of the Australian Institute of Company Directors, Grant Thornton Australia Limited and The Colonial Foundation. At Helia, Andrea is committee. You can find a brief summary of Andrea's experience and qualifications on page. I recommend that shareholders vote for the resolution. I would now like to invite Andrea to say a few.
Excuse me. Thank you, Leona. Good morning fellow shareholders. Thank you Board because I'm passionate about the role we can play in helping Australians get into the housing market. As a Director for the past 6 years. During this time, I've served as Chair of the executive director to Helia. As Leona said, I was a partner of KPMG, risk management and in implementing and enhancing audit and governance structures in committees. Since 2012, I've been a member of a number of listed and Colonial Foundation. If re-elected, I commit to continue to serve in the interests of.
Along with the proxy and direct votes that we've received in relation to this resolution, I now invite those- in the room. I'll now take questions received through the online platform.
Serving on the Board of a client in MyState, how extensive are our dealings with MyState?
The exact size of the MyState portfolio, but I'll talk about how Helia and manage conflicts, both perceived and real. We have a very robust process that relate to MyState, and is recused from any discussions. Stephen, is that MyState is not one of the largest parts of our portfolio.
Questions.
Thank you, Mark. I'll now take questions on this item of business. If there are no more questions, I'll now move to voting on Resolution 3, and I will briefly pause while you can. Thank you. As I mentioned earlier in the votes validly cast on Resolution 1, against the adoption of the remuneration report. Direct and proxy votes received, and the votes available to be cast by attendees present at today's Resolution 4 will not be voted on. This brings us to the end of relating to your shareholding that any shareholder would like to bring before the meeting. If so, you can submit your questions as you have been doing to date, as well as anyone on business. We'll start here in the room. Nothing received online and the phone?
Thank you, Chair. There are currently no questions on the phone.
I'd like to ask shareholders to finalize voting and submit their voting cards, and we'll give you will be released to the market via the market announcements platform, and will be available. Before I close the meeting, I just wanna thank everyone for firstly joining us. This is your one time as shareholders to engage with the Board as a collective and with We appreciate your engagement in that matter, and look forward to seeing you again next year. 2026 annual general meeting of Helia Group Limited. Have a great day, everyone.