Helios Underwriting Plc Acquisition (7420W)

TIDMHUW

RNS Number : 7420W

Helios Underwriting Plc

13 December 2019

Helios Underwriting plc

LEI 213800FX86DJW5TCM864

("Helios" or the "Company")

Acquisition of Catbang 926 Limited

Helios is pleased to announce that, in line with its strategy of increasing underwriting capacity through acquisition, it has acquired Lloyd's Member Catbang 926 Limited (Catbang), a limited liability member of Lloyd's of London ("Lloyd's"). The consideration payable for Catbang is GBP5.6 million in cash of which GBP2m will be paid on completion and the balance paid within 60 days of completion.

Information in respect of Catbang

The 2019 underwriting capacity of Catbang is GBP4.1m. Catbang participates in a spread of Lloyd's syndicates that broadly matches the existing portfolio of Helios and this transaction enables Helios to continue to build its participations on the better syndicates at Lloyd's.

The consideration represents a discount of approximately 16% to the independent valuation of GBP6.7m placed on Catbang by Humphrey's and is approximately GBP0.6m below the fair value of assets being acquired.

The capacity acquired, together with the capacity Helios expects to retain, is as follows:

 
     Catbang           Year of Account 
                   2017   2018   2019  2020 
                  -----  -----  -----  ---- 
                   GBPm   GBPm   GBPm  GBPm 
                  -----  -----  -----  ---- 
 Retained          4.1    4.1    4.1   1.4 
                  -----  -----  -----  ---- 
 Reinsured          -      -      -    3.3 
                  -----  -----  -----  ---- 
 Total Capacity    4.1    4.1    4.1   4.7 
                  -----  -----  -----  ----

Helios will reinsure 70% of 2020 underwriting year in line with its stated policy of reducing 'on-risk' exposures.

In addition to the Catbang transaction, Helios is continuing to pursue a number of further Lloyd's LLV acquisitions in line with its strategy.

Additional information

Catbang is a limited liability member of Lloyd's. In the year ended 31 December 2018, Catbang made a profit before tax of GBP0.2m on gross premiums written of GBP3.6m. Syndicate capacity with an estimated market value of GBP1.3m has been included in the transaction.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) NO 596/2014.

For further information, please contact:

Helios Underwriting plc

Nigel Hanbury - Chief Executive 07787 530 404

   Arthur Manners - Chief Financial Officer                                              07754 965 917

Shore Capital Limited

Robert Finlay 020 7408 4090

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 GBP60m of capacity for the 2019 account. The portfolio provides a good spread of business being concentrated in property insurance and reinsurance. For further information please visit www.huwplc.com.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

ACQTTBRTMBMBBTL

(END) Dow Jones Newswires

December 13, 2019 02:00 ET (07:00 GMT)

Helios Underwriting (LSE:HUW)
Historical Stock Chart
From May 2024 to Jun 2024