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22 Dec 2021 07:01
22nd December 2021
Helios Underwriting plc
("Helios" or the "Company")
2022 Helios Retained Capacity
Helios, the unique investment vehicle that acquires and consolidates underwriting capacity at Lloyds', announces an update on the Company's capacity to be underwritten for 2022.
Nigel Hanbury, Chief Executive of Helios, commented:
"I am delighted that the retained capacity underwritten by Helios shareholders will have trebled to £171m for the 2022 underwriting year. This provides us with a strong platform from which to make further value-enhancing acquisitions."
Capacity Update
Helios announces that the retained underwriting capacity for Helios for the 2022 year of account will be £171m, a 191% increase in the capacity underwritten at the start of 2021. The overall portfolio including the capacity reinsured has increased to £233m, more than doubling the size of the portfolio.
Helios - 2022 Year of Account Capacity | |||
£m | Retained | Reinsured | Total |
Capacity expected as at 1st January 2022 | 171.1 | 61.6 | 232.7 |
Capacity as at 1st January 2021 | 58.7 | 51.5 | 110.2 |
% Increase | 191% | 20% | 111% |
Given the much-improved underwriting pricing going into 2022, the prospects for underwriting profitability have improved considerably and the Board believes this substantial increase in the retained capacity will benefit the Company's shareholders.
The analysis of this increase in the Helios portfolio is as follows:
|
|
|
| 2022 Capacity |
|
|
|
| £m |
Capacity at 31 Dec 2020 |
|
| 110.3 | |
Capacity expected to be acquired with LLVs in 2021 | 34.7 | |||
Pre-emption capacity |
|
| 6.2 | |
Acquisition of capacity in the capacity auction | 23.7 | |||
Tenancy Capacity |
|
| 57.8 | |
Capacity expected at 31 Dec 2021 |
|
| 232.7 | |
|
|
|
|
|
In addition to the capacity acquired at the capacity auctions this year, Helios has supported both new and well established syndicates that offer capacity for a limited period only, referred to as Tenancy Capacity, and Helios expects to support these syndicates in the longer term.
Helios has completed the acquisition of 26 LLVs so far in 2021 and expects to complete a further two prior to the year-end. In total, these 28 acquisitions will have added £35m of capacity to the 2021 year of account and increased the retained capacity for all three open years of account. The split of capacity between retained and that reinsured for the current open years of account is expected to be as follows:
Retained Capacity 2019 to 2021 Years of Account | |||
| 2019 | 2020 | 2021 |
| £m | £m | £m |
Capacity - Position as at 1st Jan 2021 | 31.3 | 30.9 | 58.6 |
|
|
|
|
Capacity expected to be acquired during 2021 | 36.1 | 35.6 | 34.8 |
|
|
|
|
Capacity - Expected at 31st Dec 2021 | 67.4 | 66.5 | 93.4 |
The increased retained capacity on the 2019 to 2021 years of account, substantially "off-risk" for the underwriting years, will contribute to the recognised profits in the future.
For further information please contact:
Helios Underwriting plc
Nigel Hanbury - Chief Executive +44 (0)7787 530 404 / nigel.hanbury@huwplc.com
Arthur Manners - Chief Financial Officer +44 (0)7754 965 917
Shore Capital (Nomad and Broker)
Robert Finlay +44 (0)20 7601 6100
David Coaten
Buchanan (PR)
Helen Tarbet / Henry Wilson / 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 £145m of capacity for the 2021 account. The portfolio provides a good spread of business being concentrated in property insurance and reinsurance. For further information please visit www.huwplc.com.
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