Helios Underwriting Plc Acquisition (9342E)
February 16 2015 - 2:00AM
UK Regulatory
TIDMHUW
RNS Number : 9342E
Helios Underwriting Plc
16 February 2015
16 February 2015
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 Updown Underwriting Limited, a limited liability member
of Lloyd's ("LLV") for a total consideration of GBP0.6 million in
cash and 429,839 new ordinary shares in the Company. The 2015
underwriting capacity of the LLV is GBP0.9 million; this compares
with HUW's 2015 capacity of GBP21.4 million prior to this
acquisition. Completion is subject to change of control consent
from Lloyd's. The LLV participates in a spread of Lloyd's
syndicates broadly similar to HUW's own participation.
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 020 7863 6655 / nigel.hanbury@huwplc.com
Nigel Hanbury - Chief Executive
Smith & Williamson Corporate
Finance
David Jones 020 7131 4000
Westhouse Securities
Robert Finlay 020 7601 6100
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 approximately GBP21 million of capacity
for the 2015 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
Updown Underwriting Limited ("Updown") is a limited liability
member of Lloyd's which HUW has agreed to acquire from Nicholas
Wentworth Stanley; in the year ended 31 December 2013, Updown made
a profit before tax of GBP0.2 million on gross premiums written of
GBP0.8 million. Updown's expected net asset value at completion is
approximately GBP1.3 million, including underwriting capacity with
an estimated market value of GBP0.4 million.
Set out below are Updown's 2012 and 2013 open years of account
forecasts:
YOA Updown Forecast of syndicate profit
syndicate (30 September 2014)
capacity
(GBP'000)
------ ----------- -------------------------------------
Mid point Mid point Range
(GBP'000) (%) (%)
------ ----------- ----------- --------- -------------
2012 902 114 12.63% 9.38 - 15.87%
------ ----------- ----------- --------- -------------
2013 927 87 9.40% 5.09 - 13.70%
------ ----------- ----------- --------- -------------
Source: Syndicate data and HUW analysis (before early
release)
Set out below are details of Updown's syndicate participations
for the 2012 to 2015 years of account:
YOA 2012 2013 2014 2015
---------- ------------------- --------------------- ------------------- -------------------
Syndicate (GBP'000) (%)* (GBP'000) (%)* (GBP'000) (%)* (GBP'000) (%)*
---------- ---------- ------- ---------- --------- ---------- ------- ---------- -------
33 88 9.7% 88 9.5% 92 10.0% 92 10.7%
---------- ---------- ------- ---------- ------- ------------ ------- ---------- -------
218 52 5.8% 52 5.6% 52 5.6% 42 4.8%
---------- ---------- ------- ---------- ------- ------------ ------- ---------- -------
386 24 2.7% 24 2.6% 24 2.6% 21 2.4%
---------- ---------- ------- ---------- ------- ------------ ------- ---------- -------
510 137 15.2% 137 14.8% 137 14.8% 137 15.9%
---------- ---------- ------- ---------- ------- ------------ ------- ---------- -------
609 41 4.6% 41 4.4% 41 4.4% 41 4.8%
---------- ---------- ------- ---------- ------- ------------ ------- ---------- -------
623 111 12.3% 117 12.6% 126 13.6% 117 13.6%
---------- ---------- ------- ---------- ------- ------------ ------- ---------- -------
727 63 7.0% 63 6.8% 63 6.8% 63 7.3%
---------- ---------- ------- ---------- ------- ------------ ------- ---------- -------
958 50 5.5% 39 4.2% 31 3.4% 33 3.8%
---------- ---------- ------- ---------- ------- ------------ ------- ---------- -------
1176 38 4.2% 38 4.1% 38 4.1% 38 4.4%
---------- ---------- ------- ---------- ------- ------------ ------- ---------- -------
2010 105 11.6% 105 11.3% 105 11.3% 92 10.6%
---------- ---------- ------- ---------- ------- ------------ ------- ---------- -------
2014 - - - - 46 5.0% 40 4.6%
---------- ---------- ------- ---------- ------- ------------ ------- ---------- -------
2791 108 11.9% 108 11.6% 95 10.2% 84 9.7%
---------- ---------- ------- ---------- ------- ------------ ------- ---------- -------
6103 21 2.3% 26 2.8% 19 2.1% 8 0.9%
---------- ---------- ------- ---------- ------- ------------ ------- ---------- -------
6104 28 3.1% 36 3.9% 36 3.9% 36 4.1%
---------- ---------- ------- ---------- ------- ------------ ------- ---------- -------
6106 18 2.0% 21 3.5% - - - -
---------- ---------- ------- ---------- ------- ------------ ------- ---------- -------
6110 18 2.0% 33 3.5% - - - -
---------- ---------- ------- ---------- ------- ------------ ------- ---------- -------
6111 - - - - 20 2.2% 19 2.2%
---------- ---------- ------- ---------- ------- ------------ ------- ---------- -------
Total 902 100.0% 927 100.0% 927 100.0% 863 100.0%
---------- ---------- ------- ---------- ------- ------------ ------- ---------- -------
* 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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