Helios Underwriting Plc Acquisition of Lloyd's Member (2079G)
May 02 2014 - 8:17AM
UK Regulatory
TIDMHUW
RNS Number : 2079G
Helios Underwriting Plc
02 May 2014
2 May 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 agreed
to acquire Nomina No 372 LLP, a limited liability member of Lloyd's
("LLV") for a total consideration of GBP0.5 million in cash. The
2014 underwriting capacity of the LLV is GBP1.0 million; this
compares with HUW's 2014 capacity of GBP20.3 million prior to this
acquisition. There is an obligation that Funds at Lloyd's are
provided in the amount of GBP0.5 million which will be supported by
funds from HUW and other sources such as the LOC from HUW's quota
share reinsurance arrangement. Completion is subject to change of
control consent from Lloyd's, which is anticipated to take place
shortly.
The LLV 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 agreed a further LLV acquisition which
will further increase 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
Nomina No 372 LLP ("Nomina 372") is a limited liability member
of Lloyd's; in the year ended 31 December 2012, Nomina 372 made a
profit before tax of GBP0.04 million on gross premiums written of
GBP0.8 million. Nomina 372's estimated net asset value at
completion is approximately GBP0.5 million (based on 30 September
2013 syndicate forecasts) including an estimated market value of
underwriting capacity of GBP0.4 million.
Set out below is Nomina 372's 2011 closed year of account result
and 2012 open year of account forecast:
YOA Nomina 372 Previous forecast of syndicate Current forecast of syndicate
syndicate profit profit*
capacity (30 September 2013) (31 December 2013)
(GBP'000)
------ ----------- -------------------------------------- ---------------------------------
Mid point Mid point Range Mid point Mid point Range
(GBP'000) (%) (%) (GBP'000) (%) (%)
------ ----------- ----------- --------- -------------- ------------ --------- --------
2011 850 56 6.64% 3.52 - 9.76% 69 8.14% N/A
------ ----------- ----------- --------- -------------- ------------ --------- --------
4.20 -
2012 885 59 6.63% 3.05 - 10.20% 68 7.69% 11.18%
------ ----------- ----------- --------- -------------- ------------ --------- --------
Source: Syndicate data and HUW analysis
*For 2011 this is the YOA result
Set out below are details of Nomina 372'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 85 10.0% 93 10.5% 93 10.0% 98 9.6%
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
218 41 4.9% 37 4.2% 36 3.9% 36 3.6%
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
386 49 5.8% 56 6.3% 56 6.1% 56 5.5%
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
510 126 14.9% 134 15.1% 135 14.6% 135 13.3%
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
557 14 1.7% 13 1.4% 10 1.1% 10 1.0%
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
570 36 4.3% - - - - - -
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
609 72 8.5% 110 12.4% 111 12.0% 111 10.9%
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
623 125 14.8% 125 14.2% 131 14.2% 142 13.9%
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
727 14 1.7% 14 1.6% 14 1.6% 15 1.4%
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
958 55 6.5% 29 3.3% 22 2.3% 17 1.7%
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
1176 22 2.6% 22 2.5% 22 2.4% 23 2.3%
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
1200 1 0.1% 1 0.1% 0 0.0% 0 0.0%
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
1729 - - - - - - 10 1.0%
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
2010 47 5.5% 47 5.3% 47 5.1% 47 4.6%
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
2525 4 0.4% 4 0.4% 4 0.4% 4 0.4%
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
2526 2 0.3% 1 0.1% 1 0.1% - -
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
2791 133 15.6% 135 15.3% 135 14.6% 119 11.7%
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
4242 12 1.5% 12 1.4% 12 1.3% 12 1.2%
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
5820 - - - - 30 3.2% 30 2.9%
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
6104 - - - - - - 20 2.0%
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
6105 9 1.0% 9 1.0% 5 0.5% 15 1.5%
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
6110 - - 21 2.3% 35 3.8% 45 4.4%
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
6111 - - 23 2.6% 26 2.8% 27 2.7%
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
6117 - - - - - - 45 4.4%
---------- ---------- ------- ---------- ------- ---------- ------ ------------- -------
Totals 850 100.0% 885 100.0% 926 100.0% 1,019 100.0%
---------- ---------- ------- ---------- ------- ---------- --------- ---------- -------
* 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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