Helios Underwriting Plc Quarterly Syndicate Mid-Point Forecasts (7221K)
30 Agosto 2023 - 3:00AM
UK Regulatory
TIDMHUW
RNS Number : 7221K
Helios Underwriting Plc
30 August 2023
30(th) August 2023
Helios Underwriting plc
('Helios' or 'the Company')
Quarterly Syndicate Mid-Point Forecasts
Indicative underwriting profits of 22p per share to be
recognised over the next two years
Potential NTA per share of 174p
Helios, the investment vehicle which builds shareholder value
through exposure to Lloyd's, announces the current mid-point
forecasts in respect of its portfolio of syndicate capacity for the
2021 and 2022 years of account based on 2(nd) quarter 2023
mid-point estimates.
Martin Reith, Chief Executive, commented :
"Helios' proposition as the investment vehicle which builds
shareholder value through exposure to Lloyd's continues to go from
strength to strength. We have built and curated an outstanding
portfolio of the better performing syndicates, based on stringent
underwriting discipline and judicious capital deployment. During
the period, we have acquired four further LLVs, and taken GBP6m
capacity on a new syndicate.
"Market conditions at Lloyd's are strong, as reflected in our
second published mid-point profit forecast for 2022 of 5.7% of
capacity. This, compounded by Helios' increased retained capacity,
GBP184m for the 2022 year of account, leads us to be confident in
our expectation of achieving underwriting profits of 22p per share
over the next two years."
2021 2022 2023
GBPm GBPm GBPm
Total capacity as at 30(th) May
2023
Retained 99.3 177.6 238.4
Reinsured 51.5 60.8 58.3
------ ------ ------
150.8 238.4 296.7
------ ------ ------
Changes since 30(th) May
Acquisition of LLV's 6.4 6.8 8.1
New Syndicate Participation - - 6.0
Increase in capacity reinsured - - (8.0)
------ ------ ------
Total change in retained 6.4 6.8 6.1
Reinsured - - 8.0
------ ------ ------
Total increase in capacity 6.4 6.8 14.1
------ ------ ------
Total capacity as at 30(th) August
2023
Retained 105.7 184.4 244.5
Reinsured 51.5 60.8 66.3
------ ------ ------
157.2 245.2 310.8
------ ------ ------
Mid-point forecast at 31st March
2023 3.9% 5.7%
Current mid-point forecast 4.9% 5.7%
Impact on Net Asset Value per GBPm
share
After tax retained underwriting
losses earned to 31/12/2022 for
2021 & 2022 underwriting years (4.8)
Indicative after tax retained
underwriting profits from mid-point
estimates 11.6
After tax retained underwriting
profits to be earned 16.4
------
Potential increase in Net Tangible
Asset Value per share - pence 22p
Current Net Tangible Asset Value
per share 152p
Potential Net Asset Value per
share 174p
Activity During the Period
Four LLV acquisitions have been completed, for a total
consideration of GBP7.4m, adding capacity to all three open years
of account.
We have taken GBP6m capacity on a new syndicate, commencing
underwriting on 1(st) July 2023. Syndicate 1996 - managed by Wild
fire Defence Systems - underwrites property in the USA that is
susceptible to fire risk.
The capacity ceded to reinsurers was increased by GBP8m with
effect from 1(st) January 2023 releasing Helios Funds at Lloyds' of
GBP3.6m to be used for corporate purposes.
The 2021 mid-point estimate continues to improve to 4.9% (3.9%
as at Q1 2023) in line with expectations.
The 2022 mid-point forecast at 5.7% profit on capacity (5.7% as
at Q1 2023), after the impact of the loss from Hurricane Ian, will
make a significant contribution to the earned underwriting profits
in the future as this underwriting year recognised a loss in the
first 12 months of 4.0%.
The future retained after tax underwriting profits that are
currently expected to be recognised over the next two years could
increase the NTA per share by 22p to 174p per share.
Notes
1) The table above shows the capacity as at 30(th) August 2023,
splitting the capacity retained by Helios and the capacity that is
ceded to quota share reinsurers.
2) The mid-point forecasts for 2021 and 2022 years of account as
at 2(nd) quarter 2023 have been aggregated at syndicate level from
estimates supplied by Managing Agents.
3) The potential increase in net tangible asset value per share
could be impacted by future underwriting losses, operating and
reinsurance costs.
4) The impact on Helios will be as follows:
a. The underwriting profits to be recognised after 1 January
2023 on the retained capacity from the indications provided by the
mid-point forecasts will be earned in calendar years 2023 and
2024.
b. The overall change in the syndicate results will be
recognised by Helios in cash at the close of the year of
account.
For further information, please contact:
Helios Underwriting plc
Helios Underwriting plc
Martin Reith - Chief Executive +44(0)7720 292 505
Nigel Hanbury - Executive Deputy Chairman +44(0)7787 530 404
Arthur Manners - Chief Financial Officer +44(0)7754 965 917
Numis (Nomad and Broker)
Giles Rolls / Charles Farquhar +44 (0)20 7260 1000
Buchanan (PR)
Helen Tarbet / George Beale +44 (0)7872 604 453
+44 (0)20 7466 5111
About Helios
Helios provides a limited liability direct investment into the
Lloyd's insurance market and is quoted on the London Stock
Exchange's AIM market (ticker: HUW). Helios trades within the
Lloyd's insurance market writing approximately GBP311m of capacity
for the 2023 account. The portfolio provides a good spread of
business being concentrated in property & casualty insurance
and reinsurance. For further information please visit
www.huwplc.com.
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END
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