Helia Group (ASX:HLI) said ING has informed that as part of a request for proposal process for its lenders mortgage insurance requirements, ING has decided to advance with negotiations with an alternate provider, according to a Wednesday Australian bourse filing.

The company's contract with ING expires on June 30, 2026, but includes a right for ING to terminate the contract via three months' notice, the filing added.

The lenders mortgage insurance business, underwritten under the contract with ING, represented about 17% of the company's 2024 gross written premium (GWP), the company said.

The company said it will continue to generate GWP from ING until the contract expires or is terminated, and revenue related to in-force policies will be recognised over the next 15 years under the AASB 17 timing of insurance revenue recognition.

The company said that the financial impact of ceasing to write new business from ING will gradually emerge over time, and the lack of new business from ING will likely increase the level of organic capital generation and scope for further capital management activity.

The company started a comprehensive business review, which will consider the business response to the expected loss of new business from two significant customers and the broader impact of the recently disclosed changes to the Government's home guarantee scheme for first home buyers on its operating environment.