Last checked at 17 May 2019 07:00
17th May 2019
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 2017 and 2018 years of account based on 1st quarter 2019 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 acquisitions of the better quality syndicates. Our strategy is bringing results - despite a difficult market backdrop, the 2018 underwriting year is outperforming Lloyds by 40 basis points.
"Looking ahead, the number of LLV's for sale is increasing and we see attractive near-term opportunities to continue to consolidate the market and achieve improved outperformance against Lloyd's.
"We look forward to generating further growth and value for our shareholders."
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| 2016 | 2017 | 2018 | 2019 |
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| £m | £m | £m | £m |
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Capacity - Position as at 17th May 2019 |
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| Retained | 35.1 | 28.9 | 18.7 | 16.1 |
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| Reinsured | 19.9 | 25.4 | 38.2 | 37.6 |
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| 55.0 | 54.3 | 56.9 | 53.7 |
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Mid-point forecast at 31st December 2018 |
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(9.53%) | N/A |
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Result / Current mid-point forecast |
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| (8.95%) | (3.53%) |
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Lloyd's Market Average |
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| (10.4%) | (3.80%) |
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Helios outperformance |
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| 1.45% | 0.27% |
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Notes
1) The table above shows the capacity as at 17th May 2019 splitting the capacity retained by Helios and the capacity that is ceded to quota share reinsurers. Helios acquired six limited liability vehicles during 2018 for a total consideration of £12.2m and in 2019 to date a single LLV has been acquired for £1.1m
2) The midpoint forecasts for 2017 and 2018 year of account as of 1st quarter 2019 have been aggregated at syndicate level from estimates supplied by Managing Agents
3) The Helios outperformance is measured using the result on the capacity at the end of the year - including the capacity of the portfolios acquired which include participations on underperforming syndicates that will subsequently be discarded. The effect of excluding the acquired capacity and basing the Helios outperformance against the mid-point forecasts on the capacity at the start of the underwriting year - the core Helios portfolio - versus the Lloyds Market average is shown below:
| 2017 | 2018 |
Result / Current mid-point forecast Core Portfolio | -7.66% | -3.40% |
Lloyd's Market Average | -10.40% | -3.80% |
Helios out performance | 2.74% | 0.40% |
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 2019.
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 07787530 404 / nigel.hanbury@huwplc.com
Arthur Manners - Chief Financial Officer 07754 965 917
Stockdale
Robert Finlay 020 7601 6100
David Coaten
Buchanan 020 7466 5000
Helen Tarbet
Henry Wilson
Hannah Ratcliff
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 £54m of capacity for the 2019 account. The portfolio provides a good spread of business being concentrated in property insurance and reinsurance. For further information please visit www.huwplc.com.