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10 Jan 2023 07:00
10th January 2023
Helios Underwriting plc
("Helios" or the "Company")
2023 Helios Retained Capacity Update
Portfolio increased by 27% year-on-year to £297 million
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 2023.
Nigel Hanbury, Chief Executive of Helios, commented:
"I am delighted that the retained capacity underwritten by Helios shareholders will have significantly increased for another successive underwriting year to £238m. Market discipline remains strong and we are confident that 2023 will offer superior returns. The January renewals supports this with significant pricing improvement and market dislocation in the reinsurance and retro markets respectively. Rating indices across most lines are at or above our underwriting requirements and the Board is confident the Company is well positioned to maximise market opportunities."
Capacity Update
Helios announces that the retained underwriting capacity for the 2023 year of account will be £238m, a near 40% increase in the capacity underwritten since the start of 2022. The overall portfolio, including the capacity reinsured, has increased to £297m, adding more than 27% to the size of the portfolio since the 1st January 2022.
Helios - 2023 Year of Account Capacity | |||
£m | Retained | Reinsured | Total |
Capacity as at 1st January 2023 | 238.3 | 58.3 | 296.6 |
Capacity as at 1st January 2022 | 171.1 | 61.6 | 232.7 |
% change - Increase/(Decrease) | 39% | (5)% | 27% |
The prospects for underwriting profitability and higher investment returns have improved considerably and the Board believes this substantial increase in the retained capacity will significantly benefit the Company's shareholders for 2023 onwards.
The analysis of this increase in the Helios portfolio is as follows:
Capacity | ||||
| £m | |||
Capacity at 1st January 2021 for 2022 YOA | 232.7 | |||
Capacity acquired in 2022 for 2023 YOA | 5.7 | |||
Pre-emption capacity | 36.0 | |||
Disposal of capacity in the capacity auction | (16.7) | |||
Additions to Tenancy Capacity | 38.9 | |||
Capacity as at 1st January 2023 for 2023 YOA |
| 296.6 | ||
Helios has and continues to support 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 acquired three LLVs in 2022 adding £5.7m of capacity to the 2022 year of account and increased the retained capacity for all three open years of account.
The split of capacity between retained and reinsured for the current open years of account is currently as follows:
Retained Capacity 2020 to 2023 Years of Account |
| |||
| 2020 | 2021 | 2022 | 2023 |
| £m | £m | £m | £m |
Capacity - Position as at 1st January 2022 | 66.5 | 93.4 | 171.1 | - |
Capacity acquired during 2022 | 5.6 | 5.8 | 5.7 | - |
Capacity - Expected at 1st January 2023 | 72.1 | 99.2 | 176.8 | 238.3 |
The increased retained capacity on the 2020 to 2022 years of account, substantially "off-risk" for the underwriting years, will contribute to the recognised profits in the future.
Split of Freehold and Leasehold Capacity by Year of Account
As at 1st January - £m | 2022 YOA | 2023 YOA |
Freehold capacity | 144.8 | 147.3 |
Tenancy capacity | 87.9 | 149.3 |
Total capacity | 232.7 | 296.6 |
Value of capacity Fund | 59.8 | 60.0 |
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 £297m 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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