Helia: Chronic Uncertainty as Commonwealth Bank Opens Up for Proposals Again

Helia shares sold off heavily after announcing its largest customer, Commonwealth Bank, intends to issue a request for proposal. Helia and Commonwealth Bank renewed this contract for a three-year period in 2022, with the bank also issuing a request for a proposal back then. One difference this time is the bank is considering the merits of moving to one provider for both Commonwealth Bank and Bankwest branded loans, with the latter currently insured by QBE Insurance. The strong returns the lenders mortgage insurance providers are making in a very low claims environment might have contributed to the bank wanting to create as much competitive tension as possible.