Helios Underwriting Plc Acquisition of Corporate Member (3940D)
March 28 2014 - 3:00AM
UK Regulatory
TIDMHUW
RNS Number : 3940D
Helios Underwriting Plc
28 March 2014
28 March 2014
Helios Underwriting plc
("HUW" or the "Company")
Acquisition of Lloyd's Limited Liability Vehicle
HUW is pleased to announce that, in line with its strategy of
increasing underwriting capacity through acquisition, it has
acquired Bernul Limited, a limited liability member of Lloyd's
("LLV") for a total consideration of GBP0.8 million in cash. The
2014 underwriting capacity of the LLV acquired is GBP0.8 million;
this compares with HUW's 2014 capacity of GBP19.5 million prior to
this acquisition. The assets of the LLV acquired include associated
funds at Lloyd's ("FAL") to support its underwriting activities of
GBP0.4 million.
The LLV acquired participates in a spread of Lloyd's syndicates
broadly similar to HUW's own participation. It is anticipated that
the LLV will be included in the Company's collateralised quota
share reinsurance arrangement for the 2014 year of account.
Commenting upon the acquisition, Nigel Hanbury, the Company's
Chief Executive Officer, said:
"We are delighted to have made a further LLV acquisition which
further increases our underwriting capacity. This is in line with
our stated strategy of acquiring corporate members as suitable
opportunities arise. We continue to believe that there remain
significant opportunities for further growth available to the
Company."
For further information please contact:
HUW nigel.hanbury@huwplc.com
Nigel Hanbury
Smith & Williamson Corporate
Finance
David Jones 020 7131 4000
Westhouse Securities
Robert Finlay
Darren Vickers 020 7601 6100
Haggie Partners
Peter Rigby 020 7562 4444
About HUW
HUW 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). HUW's subsidiary underwriting
vehicles trade within the Lloyd's insurance market as corporate
members of Lloyd's writing GBP20 million of capacity for the 2014
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.
Additional information
Bernul Limited ("Bernul") is a limited liability member of
Lloyd's which the Company has acquired from Primafides (Suisse) SA;
in the year ended 31 December 2012, Bernul made a profit before tax
of GBP0.09 million on gross premiums written of GBP0.7 million.
Bernul's estimated net asset value at completion is approximately
GBP0.8 million (based on 30 September 2013 syndicate forecasts)
including an estimated market value of underwriting capacity of
GBP0.3 million (based on the most recent relevant auction
transactions) and tax provisions of GBP0.1 million.
Set out below is Bernul's 2011 closed year of account result and
2012 open year of account forecast:
YOA Bernul syndicate Previous forecast of syndicate Current forecast of syndicate
capacity profit profit*
(GBP'000) (30 September 2013) (31 December 2013)
------ ----------------- ---------------------------------- ---------------------------------
Mid point Mid point Range Mid point Mid point Range
(GBP'000) (%) (%) (GBP'000) (%) (%)
------ ----------------- ------------- ---------- ------- ------------ --------- --------
2.37 -
2011 808 45 5.56% 8.75% 69 8.53% N/A
------ ----------------- ------------- ---------- ------- ------------ --------- --------
0.57 - 2.31 -
2012 752 34 4.57% 8.57% 47 6.31% 10.31%
------ ----------------- ------------- ---------- ------- ------------ --------- --------
Source: Syndicate data and HUW analysis
*For 2011 this is the YOA result
Set out below are details of Bernul's syndicate participations
for the 2011 to 2014 years of account:
YOA 2011 2012 2013 2014
---------- ------------------- ------------------- ------------------- -------------------
Syndicate (GBP'000) (%)* (GBP'000) (%)* (GBP'000) (%)* (GBP'000) (%)*
---------- ---------- ------- ---------- ------- ---------- ------- ---------- -------
33 113 14.0% 105 14.0% 105 12.7% 110 13.6%
---------- ---------- ------- ---------- ------- ---------- ------- ---------- -------
218 40 5.0% 54 7.2% 54 6.5% 54 6.7%
---------- ---------- ------- ---------- ------- ---------- ------- ---------- -------
308 65 8.0% 73 9.7% 70 8.5% 84 10.4%
---------- ---------- ------- ---------- ------- ---------- ------- ---------- -------
510 110 13.6% 110 14.6% 110 13.3% 110 13.6%
---------- ---------- ------- ---------- ------- ---------- ------- ---------- -------
557 30 3.7% 30 4.0% 30 3.6% - -
---------- ---------- ------- ---------- ------- ---------- ------- ---------- -------
570 90 11.1% - - - - - -
---------- ---------- ------- ---------- ------- ---------- ------- ---------- -------
609 38 4.7% 110 14.6% 110 13.3% 110 13.6%
---------- ---------- ------- ---------- ------- ---------- ------- ---------- -------
623 116 14.4% 90 12.0% 94 11.4% 102 12.6%
---------- ---------- ------- ---------- ------- ---------- ------- ---------- -------
727 70 8.7% 70 9.3% 70 8.5% 70 8.7%
---------- ---------- ------- ---------- ------- ---------- ------- ---------- -------
2791 136 16.8% 110 14.6% 110 13.3% 97 12.0%
---------- ---------- ------- ---------- ------- ---------- ------- ---------- -------
6103 - - - - 13 1.6% 10 1.2%
---------- ---------- ------- ---------- ------- ---------- ------- ---------- -------
6104 - - - - 20 2.4% 20 2.5%
---------- ---------- ------- ---------- ------- ---------- ------- ---------- -------
6111 - - - - 40 4.8% 40 5.0%
---------- ---------- ------- ---------- ------- ---------- ------- ---------- -------
Totals 808 100.0% 752 100.0% 826 100.0% 807 100.0%
---------- ---------- ------- ---------- ------- ---------- ------- ---------- -------
* Percentage of total syndicate portfolio
This information is provided by RNS
The company news service from the London Stock Exchange
END
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