Last checked at 21 Nov 2017 07:00
Helios Underwriting plc
("Helios" or the "Company")
Acquisition of Chapman Underwriting Limited
Helios is pleased to announce that, in line with its strategy of increasing underwriting capacity through acquisition, on 20th November 2017, following approval of change of control by Lloyd's of London ("Lloyd's"), it has acquired Chapman Underwriting Limited ("Chapman"), a limited liability member of Lloyd's for a consideration of £540,000 in cash.
Information in respect of Chapman
The 2017 underwriting capacity of Chapman is £670,000 (this compares with Helios's 2017 capacity of £35.7m prior to this acquisition). Chapman participates in a spread of Lloyd's syndicates that broadly matches the existing portfolio of Helios and this transaction enables Helios to continue to build its participations on the better syndicates at Lloyd's.
The capacity acquired, together with the capacity Helios expects to retain for the 2018 underwriting year, is as follows:
Chapman | Year of Account | |||
2015 | 2016 | 2017 | 2018 | |
£m | £m | £m | £m | |
Retained | 0.62 | 0.63 | 0.67 | 0.33 |
Reinsured | - | - | 0.77 | |
Total Capacity | 0.65 | 0.63 | 0.67 | 1.10 |
The planned capacity for Chapman for 2018 includes pre-emption offers taken up and the re-allocation of some Group capacity.
The total value acquired compared to the consideration paid is as follows:
All in £'000's | At Humphrey Valuation - July 2017 | Value using 2017 WAV - Nov 2017 | Split of actual Consideration |
Tangible Net Assets | 429 | 404 | 404 |
Capacity Value | 342 | 267 | 136 |
Total Value | 771 | 671 | 540 |
Discount of consideration to Total Value | 43% | 24% |
The net assets acquired of £404,000 include a provision for a loss on the 2017 year of account of 5% at 36 months.
Additional information
Chapman is a limited liability member of Lloyd's. In the year ended 31 December 2016, Chapman made a profit before tax of £48,619 on gross premiums written of £0.63m.
Set out below are Chapman's 2015 and 2016 open years of account forecasts:
YOA | Chapman syndicate capacity (£'000) | Forecast of syndicate profit (30 September 2017) | ||
Mid-point (£'000) | Mid-point (%) | Range (%) | ||
2015 | 624 | 62 | 9.86 | 6.51 - 13.22 |
2016 | 635 | 16 | 2.52 | (1.84) - 6.88 |
Source: Syndicate data and Helios analysis (before early release)
For further information please contact:
Helios
Nigel Hanbury - Chief Executive 020 7863 6655 / nigel.hanbury@huwplc.com
Arthur Manners - Chief Financial Officer 07754 965 917
Stockdale
Robert Finlay 020 7601 6100
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 £36.3m of capacity for the 2017 account. The portfolio provides a good spread of business being concentrated in property insurance and reinsurance. For further information please visit www.huwplc.com.