2227 GMT - Helia's organic capital generation does not look sustainable to Goldman Sachs analyst John Li. He tells clients in a note that, while the Australian mortgage insurer's loss of a key contract with Commonwealth Bank is a net positive for capital generation, it's notable that the company's organic capital generation has been supported by outperformance on incurred claims. This is not likely to continue, in his view. He also warns that the loss of the Commonwealth contract suggests that growth in new business remains challenging. Goldman cuts its target price 26% to A$3.70 and keeps a neutral rating on the stock. Shares are at A$3.66 ahead of the open. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
March 25, 2025 18:28 ET (22:28 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.