Helios Underwriting Plc Capacity Update and Transaction in Own Shares (2178B)
January 29 2020 - 2:00AM
UK Regulatory
TIDMHUW
RNS Number : 2178B
Helios Underwriting Plc
29 January 2020
Helios Underwriting plc
("Helios" or the "Company")
Capacity Update and Transaction in Own Shares
Helios, the unique investment vehicle which acquires and
consolidates underwriting capacity at Lloyd's announces an update
on the Company's capacity portfolio and its value for 2020 year of
account.
Nigel Hanbury, Chief Executive of Helios, commented:
"I am delighted that the capacity portfolio will underwrite
GBP70m for the 2020 underwriting year, a 33% increase on the size
of the portfolio in January 2019, and the increase in the value of
the Fund to GBP26m will increase the pro forma adjusted net asset
value ("ANAV") per share to 198p."
Capacity Update
Helios announces that following the acquisition of a further
LLV, Nameco 408 Limited, with capacity of GBP1 million, the
underwriting capacity for Helios will be GBP70m for 2020 year of
account a 33% increase in the capacity underwritten at the start of
2019.
Helios - 2020 Year of Account Capacity
GBPm Retained Reinsured Total
Capacity as at 1st January
2020 20.7 48.3 69.1
Acquisition of N408 0.3 0.7 1.0
---------------------------- --------------- --------------- ---------
Current 2020 Capacity 21.0 49.0 70.1
---------------------------- --------------- --------------- ---------
Capacity as at 1st January
2019 15.8 36.8 52.6
% Increase 33%
Helios is continuing to reinsure 70% of the "on-risk" open year
of account both to mitigate the downside risk and to provide the
necessary underwriting capital for that proportion of the
portfolio.
Capacity Value
The value of the capacity fund as at 31(st) December 2019 using
the weighted average prices of capacity from the 2019 Lloyd's
capacity auctions has increased to GBP26.3m (2018: GBP20.7m).
Value of
Capacity Capacity
GBPm GBPm
2019 Capacity as at 1 Jan
2019 52.6 20.7
Capacity acquired with LLV's
in 2019 9.3 3.2
Pre-emptions 5.6 2.4
Capacity management 1.5 (0.9)
Capacity revaluation 0.0 0.9
--------- ----------
2020 Capacity at 31 Dec
2019 69.0 26.3
--------- ----------
A summary of the movements in capacity and its value are:
Helios acquired five LLV's during 2019 with capacity of GBP9.3m,
which was valued at 2018 capacity prices at GBP3.2m.
The syndicates supported by Helios offered free capacity of
GBP5.6m by way of pre-emptions to support the improved underwriting
market which is valued at GBP2.4m.
Helios continued to manage the capacity portfolio discarding
unwanted syndicates and taking positions on new syndicates, in
particular the Blenheim syndicate 5886 and the Beazley syndicate
5623. In addition, GBP1.4m of capacity was sold at the auctions to
raise additional cash of GBP0.9m.
The average price per GBP of capacity after the 2019 auctions
was 38p (2018 - 39p) which was impacted by the increased capacity
taken up on limited tenancy syndicates which have no value. The
capacity that is traded at the Lloyd's Auctions showed an overall
increase in value and this is reflected in the capacity revaluation
of GBP0.9m. The combination of the value of the pre-emption
capacity (GBP2.4m) and the capacity revaluation (GBP0.9) is
expected to increase the Adjusted Net Asset Value by 18p per share
as at 31(st) December 2019. The pro forma ANAV at 30(th) June 2019,
adjusted for the capital raise in July 2019 was 180p, therefore the
increase in the capacity value is expected to increase the pro
forma ANAV to 198p.
Transactions in Own Shares
Following the Company's latest two LLV acquisitions, Whittle
Martin Limited and Nameco 408 Limited, the 22,600 ordinary shares
of 10 pence each in the Company ("ordinary shares") that were owned
by these companies have been transferred to treasury for no
consideration.
Following settlement of the above transactions, the Company's
total number of ordinary shares in issue is 17,978,028 ordinary
shares (not including the shares held in treasury), each carrying
voting rights. This figure may be used by shareholders as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change to their
interest in, the Company under the FCA's Disclosure Guidance and
Transparency Rules. The Company also holds 412,878 ordinary shares
in treasury, which do not carry voting rights.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information please contact:
Helios Underwriting plc
Nigel Hanbury - Chief Executive 07787 530404 / nigel.hanbury@huwplc.com
Arthur Manners - Chief Financial Officer 07754 965 917
Shore Capital
Robert Finlay/David Coaten 020 7408 4090
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 GBP70m of capacity
for the 2020 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
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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
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