Helios Underwriting Plc Quarterly Syndicate Mid-point Forecasts (9443H)
March 30 2020 - 2:00AM
UK Regulatory
TIDMHUW
RNS Number : 9443H
Helios Underwriting Plc
30 March 2020
30th March 2020
Helios Underwriting plc
('Helios' or 'the Company')
Quarterly Syndicate Mid-point Forecasts
Helios, the unique investment vehicle which acquires and
consolidates private underwriting capacity at Lloyd's, announces
the current mid-point forecasts in respect of its portfolio of
syndicate capacity for the 2017 and 2018 years of account based on
4th quarter 2019 results.
Nigel Hanbury, Chief Executive, commented:
"As the only listed consolidator of private capital at Lloyd's,
Helios offers a unique opportunity for growth and returns from
exposure to the Lloyd's market through targeted acquisitions of the
better quality syndicates. Our strategy is bringing results, with
returns on average 3.1% better than the Lloyd's market itself.
"Given the current uncertainty we would expect the number of
LLV's for sale to increase and we see opportunities to continue to
build our core portfolio of capacity and achieve outperformance
against the Lloyd's market as whole.
"We look forward to the future with confidence."
Year of Account
2017 2018 2019 2020
GBPm GBPm GBPm GBPm
Capacity - Position as at
15th November 2019 56.1 59.0 55.7 62.9
Retained 30.7 20.7 16.7 18.9
Reinsured 25.4 38.2 39.0 44.1
Capacity acquired since 15th
November 2019
Retained 6.6 6.8 6.6 2.2
Reinsured 0.0 0.0 0.0 5.1
Capacity - Position as at
26 March 2020
Retained 37.4 27.6 23.3 21.1
Reinsured 25.4 38.2 39.0 49.1
62.7 65.8 62.2 70.2
======= ======= ===== =====
Mid-point forecast at 30th
September 2019 -6.51% -3.39%
Final result / Current mid-point
forecast -4.83% -3.61%
Lloyd's Market Average -7.97% -5.71%
Helios out performance 3.14% 2.10%
Notes
1) The table above shows the capacity as at 30(th) March 2020
splitting the capacity retained by Helios and the capacity that is
ceded to quota share reinsurers. Helios acquired four limited
liability vehicles during 2019 for a total consideration of
GBP10.2m (GBP12.2m - 2018) and in 2020 to date a single LLV has
been acquired for GBP1.2m
2) The result for the 2017 year of account and the mid point
forecasts for 2018 year of account as of 4th quarter 2019 have been
aggregated at syndicate level from estimates supplied by Managing
Agents
3) The Helios outperformance is measured using the result on the
capacity at the end of the year - including the capacity of the
portfolios acquired which include participations on underperforming
syndicates that will subsequently be discarded. The effect of
excluding the acquired capacity and basing the Helios
outperformance against the mid-point forecasts on the capacity at
the start of the underwriting year - the core Helios portfolio -
versus the Lloyds Market average is shown below:
2017 2018
Result / Current
mid-point forecast
Core Portfolio -3.67% -3.49%
Lloyd's Market
Average -7.97% -5.71%
Helios out performance 4.30% 2.22%
------------------------ ------- -------
4) The 2018 midpoint estimates have deteriorated as many
syndicates have strengthened reserve estimates to take into
consideration the increased level of uncertainty in certain lines
of business, notably casualty for which strengthening has been
reported across the market in aggregate. In addition, there has
also been material strengthening reported in relation to estimates
for Typhoon Jebi, consistent with the experience across the wider
property and casualty industry.
5) The impact on Helios will be as follows:
a. The change in the mid point estimates on the retained
capacity over the year will be recognised in the Helios income
statement in the year to 31(st) December 2018.
b. The overall change in the result will be recognised by Helios
in cash at the close of the year of account.
For further information, please contact:
Helios Underwriting plc
Nigel Hanbury - Chief Executive 07787 530 404 / nigel.hanbury@huwplc.com
Arthur Manners - Chief Financial Officer 07754 965 917
Shore Capital
Robert Finlay 020 7408 4080
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 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.
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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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