Last checked at 22 Jan 2016 07:00
22 January 2016
Helios Underwriting plc
("HUW" or the "Company")
Acquisition of Lloyd's Limited Liability Vehicle
HUW is pleased to announce that, in line with its strategy of increasing underwriting capacity through acquisition, it has acquired Devon Underwriting Limited, a limited liability member of Lloyd's ("LLV"), for a consideration of £1.1 million in cash. The 2016 underwriting capacity of the LLV is £1.2 million (this compares with HUW's 2016 capacity of £28.1 million prior to this acquisition). HUW will provide Fund's at Lloyd's in an amount of approximately £0.7 million. The LLV participates in a spread of Lloyd's syndicates broadly similar to HUW's own participation.
Commenting upon the acquisition, Nigel Hanbury, the Company's Chief Executive Officer, said:
"We are delighted to have made a further LLV acquisition which further increases our underwriting capacity. This is in line with our stated strategy of acquiring corporate members as suitable opportunities arise. We continue to believe that there remain significant opportunities for further growth available to the Company."
For further information please contact:
HUW Nigel Hanbury - Chief Executive
|
nigel.hanbury@huwplc.com
|
Smith & Williamson Corporate Finance David Jones
| 020 7131 4000 |
Stockdale Securities Robert Finlay
| 020 7601 6100 |
About HUW
HUW 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). HUW trades within the Lloyd's insurance market writing approximately £29 million of capacity for the 2016 account. The portfolio provides a good spread of classes of business being concentrated in property insurance and reinsurance. For further information please visit www.huwplc.com.
Additional information
Devon Underwriting Limited ("Devon") is a limited liability member of Lloyd's. In the year ended 31 December 2014, Devon made a profit before tax of £0.33m on gross premiums written of £1.5m and its net asset value at completion is expected to be approximately £1.1m, including underwriting capacity with an estimated market value of £0.6m.
Set out below are Devon's 2013 and 2014 open years of account forecasts:
YOA | Devon syndicate capacity (£'000) | Forecast of syndicate profit (30 September 2015) | ||
Mid point (£'000) | Mid point (%) | Range (%) | ||
2013 | 1,659 | 159 | 9.57% | 6.29 - 12.86% |
2014 | 1,866 | 102 | 5.46% | 1.09 - 9.82% |
Source: Syndicate data and HUW analysis (before early release)
Set out below are details of Devon's syndicate participations for the 2013 to 2016 years of account:
YOA | 2013 | 2014 | 2015 | 2016 | |||||
Syndicate | (£'000) | (%)* | (£'000) | (%)* | (£'000) | (%)* | (£'000) | (%)* | |
33 | 204 | 12.3% | 215 | 11.5% | 160 | 12.1% | 160 | 12.9% | |
218 | 117 | 7.1% | 180 | 9.6% | 120 | 9.1% | 123 | 9.9% | |
308 | 133 | 8.0% | 160 | 8.6% | 100 | 7.6% | 100 | 8.0% | |
510 | 215 | 13.0% | 215 | 11.5% | 160 | 12.1% | 160 | 12.9% | |
557 | 50 | 3.0% | 50 | 2.7% | 25 | 1.9% | 25 | 2.0% | |
609 | 275 | 16.6% | 275 | 14.7% | 140 | 10.6% | 140 | 11.3% | |
623 | 189 | 11.4% | 204 | 10.9% | 160 | 12.1% | 179 | 14.4% | |
727 | 150 | 9.0% | 150 | 8.0% | 150 | 11.3% | 150 | 12.1% | |
1884 | - | - | - | - | 25 | 1.9% | - | - | |
1991 | - | - | 80 | 4.3% | 60 | 4.5% | - | - | |
2791 | 217 | 13.1% | 191 | 10.2% | 140 | 10.6% | 140 | 11.3% | |
6104 | 50 | 3.0% | 50 | 2.7% | - | - | - | - | |
6105 | - | - | 22 | 1.2% | 24 | 1.8% | - | - | |
6111 | 60 | 3.6% | 74 | 4.0% | 60 | 4.5% | 67 | 5.4% | |
Total | 1,659 | 100.0% | 1,866 | 100.0% | 1,324 | 100.0% | 1,244 | 100.0% | |
* Percentage of total syndicate portfolio