Analysts at Morningstar raise its fair value estimate for Australian mortgage insurer Helia Group (ASX:HLI) by 6% to A$3.40.

Increase its 2023 profit forecast for HLI by 20%.

Brokerage lowers its 2023 claims forecast for HLI to A$20 mln ($13.30 mln) from A$75 mln.

Expects claims to rise modestly in second-half of 2023 and into 2024 for HLI.

“Despite the benign near-term outlook, we still assume a material increase in claims from fiscal 2024, and our long-term forecasts are unchanged” - Morningstar.

One of three analysts rate the stock “buy”, one “hold” and one “sell”; their median PT is A$3.20 – Refinitiv data.

HLI stock up 50.8% YTD, as of last close.

($1 = 1.5040 Australian dollars).