Last checked at 1 Apr 2021 07:00
1st April 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 2018 and 2019 years of account based on 4th quarter 2020 estimates.
Nigel Hanbury, Chief Executive, commented:
"As the only listed consolidator of private capital at Lloyd's, Helios offers a unique opportunity for growth and returns from exposure to the Lloyd's market through targeted acquisition of the capacity of the better quality syndicates. Our strategy is bringing results, with returns on average 5.7% better than the Lloyd's market itself over recent years.
"Following our recent successful fundraising, we are pursuing opportunities to further build our core portfolio of capacity, to increase the capacity retained by Helios and continue to achieve outperformance against the Lloyd's market as whole.
"We look forward to creating further shareholder value."
| Year of Account | |||
| 2018 | 2019 | 2020 | 2021 |
| £m | £m | £m | £m |
Capacity - Position as at 17th November 2020 |
|
|
|
|
Retained | 27.6 | 23.3 | 21.1 |
|
Reinsured | 38.2 | 39.0 | 49.1 |
|
| 65.8 | 62.2 | 70.2 |
|
Capacity acquired since 17th November 2020 |
|
|
|
|
Retained | 8.5 | 8.0 | 9.7 |
|
Reinsured | - | - | - |
|
|
|
|
|
|
Capacity - Position as at 31st March 2021 |
|
|
|
|
Retained | 36.1 | 31.3 | 30.8 | 58.6 |
Reinsured | 38.2 | 39.0 | 49.1 | 51.6 |
| 74.3 | 70.3 | 80.0 | 110.3 |
|
|
|
|
|
Mid-point forecast at 30th September 2020 | -2.10% | -2.60% |
|
|
Final result / Current mid-point forecast | -0.30% | -2.15% |
|
|
|
|
|
|
|
Lloyd's Market Average | -5.89% | -5.19% |
|
|
Helios out performance | 5.59% | 3.04% |
|
|
Commentary
The 2018 result showed a good improvement over the midpoint forecasts as at 30th September 2020 reflecting the investment returns achieved and the confidence in the old year reserves of the supported syndicates.
The outperformance of 5.6% of the portfolio against the average for the Lloyd's market for 2018 continues the trend of outperformance achieved over the last 6 years which averages over 5.7% over the period.
The smaller than expected improvement in 2019 midpoint forecast in the quarter reflects the continuing strengthening of the reserves for Covid 19 losses by syndicates.
Notes
1) The table above shows the capacity as at 31st March 2021 splitting the capacity retained by Helios and the capacity that is ceded to quota share reinsurers.
2) The acquisitions of the Limited Liability Vehicles and capacity acquired was announced on 2nd November 2020 and the acquisitions were completed on 27th November 2020.
3) The mid-point forecasts for 2018 and 2019 years of account as of 4th quarter 2020 have been aggregated at syndicate level from estimates supplied by Managing Agents.
4) 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 2020.
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 07787 530 404 / nigel.hanbury@huwplc.com
Arthur Manners - Chief Financial Officer 07754 965 917
Shore Capital Limited
Robert Finlay 020 7601 6100
David Coaten
Willis Re Securities (Financial Adviser)
Alastair Rodger +44 (0)20 3124 6033
Quentin Perrot +44 (0)20 3124 6499
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 £110m 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.