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26 Nov 2021 07:00
26 November 2021
Helios Underwriting plc
('Helios' or 'the Company')
Quarterly Syndicate Mid-point Forecasts
Helios, the unique investment vehicle which acquires and consolidates private underwriting capacity at Lloyd's, announces the current mid-point forecasts in respect of its portfolio of syndicate capacity for the 2019 and 2020 years of account based on 3rd quarter 2021 estimates.
Nigel Hanbury, Chief Executive, commented:
"As the only listed consolidator of private capital at Lloyd's, Helios continues to build a diversified and unique portfolio of insurance risk with top performing syndicates, having completed 21 acquisitions of Limited Liability Vehicles in the last three months, acquiring £22.7m of capacity on the 2021 underwriting year. Our strategy is bringing results, increasing our retained capacity to £81m for 2021 in a year where pricing, terms and conditions of the business underwriter have continued to improve.
We look forward to creating further shareholder value."
| Year of Account | ||
| 2019 | 2020 | 2021 |
| £m | £m | £m |
Capacity - Position as at 19th August 2021 |
|
|
|
Retained | 31.3 | 30.9 | 58.6 |
Reinsured | 39.0 | 49.1 | 51.6 |
| 70.3 | 80.0 | 110.2 |
|
|
|
|
Capacity Acquired since 19th August 2021 |
|
|
|
Retained | 24.0 | 23.4 | 22.7 |
Reinsured | - | - | - |
| 24.0 | 23.4 | 22.7 |
|
|
|
|
Total Capacity as at 25th November 2021 Retained |
55.3 |
54.3 |
81.3 |
Reinsured | 39.0 | 49.1 | 51.6 |
| 94.3 | 103.4 | 132.9 |
|
|
|
|
|
|
|
|
|
|
|
|
Mid-point forecast at 19th August 2021 | 0.01% | 0.98% |
|
Current mid-point forecast | 0.65% | 0.77% |
|
|
|
|
|
Lloyd's Market Average | -3.50% | 0.59% |
|
Helios outperformance | 4.15% | 0.18% |
|
Commentary
The mid-point forecasts have been calculated using the enlarged capacity including the capacity recently acquired. The midpoint estimate on a like for like basis using the capacity portfolio as at 19th August 2021 are as follows:
|
|
|
| 2019 YOA | 2020 YOA |
Mid-point forecast at 19th August 2021 | 0.01% | 0.98% |
Current mid-point forecast - "like for like portfolio" | 1.40% | 1.03% |
The improvement in the results of the underlying portfolio before the effect of the capacity recently acquired continues to be in line with expectations. The 2019 current estimate shows a welcome increase over the estimate as at 19 August 2021. For 2020 underwriting year, there is a small improvement in the mid-point estimate in the underlying portfolio.
The outperformance of 4.15% of the portfolio against the average for the Lloyd's market for 2019 continues the trend of outperformance achieved over the last 6 years that averages over 4.7% during the period.
Notes
1) The table above shows the capacity as at 25th November 2021 splitting the capacity retained by Helios and the capacity that is ceded to quota share reinsurers.
2) The mid-point forecasts for 2019 and 2020 years of account as of 3rd quarter 2021 have been aggregated at syndicate level from estimates supplied by Managing Agents.
3) The impact on Helios will be as follows:
a. The change in the mid-point estimates on the retained capacity over the year will be recognised in the Helios income statement in the year to 31st December 2021.
b. The overall change in the result will be recognised by Helios in cash at the close of the year of account.
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
Robert Finlay +44 (0)20 7601 6100
David Coaten
Willis Re Securities (Financial Adviser)
Alastair Rodger +44 (0)20 3124 6033
Buchanan
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 £133m 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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