15 Nov 2018 07:00
Helios Underwriting plc
("Helios" or the "Company")
Acquisition of Advantage DCP Limited
Helios is pleased to announce that, in line with its strategy of increasing underwriting capacity through acquisition, it has acquired Advantage DCP Limited ("Advantage"), a limited liability member of Lloyd's of London ("Lloyd's") subject to consent for change of control from Lloyd's (the "Acquisition"). The consideration for Advantage is between £1.66 million and £1.91 million, dependent on no deterioration from the current 2017 year of account midpoint forecast of Advantage and the final result of that year. The consideration, which is in cash, will be payable as to £450,000 at completion with the balance paid in tranches in 2019 and 2020.
Information in respect of Advantage
The 2018 underwriting capacity of Advantage is £2.3m (this compares with Helios's 2018 capacity of £43.0m prior to this acquisition).
The maximum consideration represents a discount of 27% to the independent valuation of £2.6m placed on Advantage by Humphrey's and approximately £0.6m below the fair value of assets being acquired.
The capacity acquired, together with the capacity Helios expects to retain, is as follows:
Advantage | Year of Account | ||
| 2016 | 2017 | 2018 |
| £m | £m | £m |
Retained | 3.6 | 3.1 | 2.3 |
Reinsured | - | - | - |
Total Capacity | 3.6 | 3.1 | 2.3 |
In addition to the Advantage transaction, Helios is continuing to pursue a number of further Lloyd's LLV acquisitions in line with its strategy.
Additional information
Advantage is a limited liability member of Lloyd's. In the year ended 31 December 2017, Advantage made a loss before tax of £0.2m on gross premiums written of £4.3m. Underwriting capacity with an estimated market value of £0.2m has been included in the transaction.
For further information, please contact:
Helios Underwriting plc
Nigel Hanbury - Chief Executive 020 7863 6655 / nigel.hanbury@huwplc.com
Arthur Manners - Chief Financial Officer 07754 965 917
Stockdale Securities Limited
Robert Finlay 020 7601 6100
David Coaten
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 £45m of capacity for the 2018 account. The portfolio provides a good spread of business being concentrated in property insurance and reinsurance. For further information please visit www.huwplc.com.
Helios Underw (HUW)