BUZZ - Australia's Helia shares may record the largest single-day decline since July, as Morningstar warns of rising claims risks

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November 2 - ** Shares of Australia's Helia Group (HLI.AX) fell 7.4% to 5.020 Australian dollars, set for the biggest single-day drop since July 21

** The mortgage insurer reported on Friday (link) that year-to-date total gross written premium fell 53.1% to 82.5 million Australian dollars

** The company attributed the decline to losing the Commonwealth Bank of Australia contract, expansion of the government deposit guarantee scheme, and a slowdown in housing loan growth

** Morningstar stated that lower recent claims are unlikely to persist given softer housing prices, rising interest rates, and increasing unemployment

** Morningstar raised claims forecasts for 2026 and 2027, while cutting short-term earnings forecasts by an average of 4%

** They added that given rising claims risk and pricing pressure, the stock remains overvalued

** The stock is up 8.2% year-to-date

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