Helios Underwriting flags improved profitability forecasts

(Sharecast News) - Helios Underwriting reported improved profitability forecasts across its Lloyd's portfolio on Thursday, and announced a £2m share buyback programme, citing strong performance and visibility over future distributions.

The AIM-listed investor in Lloyd's syndicates said mid-point forecasts for its 2023 and 2024 years of account (YOAs) increased in the fourth quarter of 2025, reflecting continued favourable underwriting conditions.

It said the 2023 YOA forecast rose to 17.0% from 16.1% in the third quarter, while the 2024 YOA improved to 9.3% from 8.3%.

Helios said the 2023 profits remain in line with expectations and would be realised in May.

Total capacity across the portfolio stood at £321.8m for 2023, £522.9m for 2024 and £496.0m for 2025 as at 31 December, including both retained and reinsured capacity.

The company noted that prior-year estimates continued to improve and were tracking towards strong ultimate results, underpinned by pricing adequacy across the market.

For 2024, Helios said above-average catastrophe losses, including California wildfires, weighed on performance, although profitability is now improving.

The 2025 year of account had so far experienced below-average catastrophe losses, which the company expects would support future profit forecasts.

A syndicate business forecast return on capacity of 13.5% was provided as a reference point for 2025, with formal mid-point forecasts to follow from the fifth quarter reporting in June 2026.

Alongside the update, Helios announced a share repurchase programme of up to £2m.

The buyback would be conducted in the open market under shareholder authority granted at the June 2025 AGM, which permits the repurchase of up to 7.24 million shares.

Shares acquired may be held in treasury for reissue or cancellation.

"The continued strong financial performance of Helios reflects the quality and diversification of our Lloyd's portfolio," said chief executive Louis Tucker.

"The period has been characterised by an increasingly disciplined approach to the allocation of capital - prioritising established syndicates with profitable track records over new syndicates - while making headway in reducing our operational costs.

"The launch of this share buyback programme demonstrates the strength of our conviction in the value of Helios.

"Backed by good visibility for the next two years of profit distributions from the prior YOAs."

At 1238 BST, shares in Helios Underwriting were up 2.08% at 205.18p.

Reporting by Josh White for Sharecast.com.

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