15 Mar 2017 07:00
15th March 2017
Helios Underwriting plc
("Helios" or the "Company")
Quarterly Syndicate Mid Point Forecasts and Capacity Update
Helios announces the final result for 2014 year of account and the current mid point forecasts for the 2015 years of account in respect of its portfolio of syndicate capacity based on 4th quarter 2016 results.
| Year of Account | ||||
| 2014 |
| 2015 |
| 2016 |
| £m |
| £m |
| £m |
|
|
|
|
|
|
Capacity |
|
|
|
|
|
Position as at 28th November 2016 |
|
|
|
|
|
Retained | 19.5 |
| 15.1 |
| 12.1 |
Reinsured | 14.9 |
| 16.2 |
| 20.6 |
| 34.4 |
| 31.3 |
| 32.7 |
|
|
|
|
|
|
|
|
|
|
|
|
Capacity acquired since 28th November 2016 |
|
|
|
|
|
Retained | 1.1 |
| 0.9 |
| 1.0 |
Reinsured | - |
| - |
| - |
|
|
|
|
|
|
Capacity - Position as at 31st December 2016 |
|
|
|
|
|
Retained | 20.6 |
| 16.0 |
| 13.1 |
Reinsured | 14.9 |
| 16.2 |
| 20.6 |
| 35.5 |
| 32.2 |
| 33.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid point forecast at 30th September 2016 | 12.78% |
| 7.55% |
|
|
Final result / current mid point forecast | 15.50% |
| 8.16% |
| N/A |
|
|
|
|
|
|
Lloyds Market Average | 10.10% |
| 3.60% |
|
|
Helios outperformance | 5.40% |
| 4.56% |
|
|
Notes
1) The final result for 2014 year of account and the mid point forecasts as of 4th quarter 2016 for 2015 year of account have been aggregated at syndicate level from estimates supplied by managing agents
2) The impact on Helios will be as follows:
a. The increase in the final result for 2014 year of account on the retained capacity will be substantially recognised in the Helios income statement this year.
b. The overall improvement in the result will be received by Helios in cash when the profits are distributed after the close of the year of account.
Capacity Update
The analysis of capacity reinsured and retained as at 1st January 2017 and the effect of the acquisition of Pooks Limited is set out below.
| Year of Account | ||||
| 2015 |
| 2016 |
| 2017 |
| £m |
| £m |
| £m |
Position as at 1st Jan 2017 | 32.2 |
| 33.7 |
| 32.6 |
Retained | 16.0 |
| 13.1 |
| 9.8 |
Reinsured | 16.2 |
| 20.6 |
| 22.8 |
|
|
|
|
|
|
Acquired since 1st Jan 2017 |
|
|
|
|
|
Retained | 0.4 |
| 0.4 |
| 0.2 |
Reinsured | 0.4 |
| 0.4 |
| 0.6 |
|
|
|
|
|
|
Position as at 14th March 2017 |
|
|
|
|
|
Retained | 16.4 |
| 13.5 |
| 10.0 |
Reinsured | 16.6 |
| 21.0 |
| 23.4 |
| 33.0 |
| 34.5 |
| 33.4 |
The capacity of Pooks Limited that was acquired was subject to a 50% quota share reinsurance contract.
For further information please contact:
Helios
Nigel Hanbury - Chief Executive 07787 530404 / nigel.hanbury@huwplc.com
Arthur Manners - Chief Financial Officer 07754 965917
Stockdale Securities 020 7601 6100
Robert Finlay
Richard Johnson
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 £33 million of capacity for the 2017 account. The portfolio provides a good spread of classes of business being concentrated in property insurance and reinsurance. For further information, please visit www.huwplc.com.
Helios Underw (HUW)