Helios Underwriting Plc Revision to Adjusted Net Asset Value (2820P)
February 16 2021 - 8:37AM
UK Regulatory
TIDMHUW
RNS Number : 2820P
Helios Underwriting Plc
16 February 2021
Helios Underwriting plc
("Helios" , "Company" or the "Group" )
Revision to Adjusted Net Asset Value
Helios, the unique investment vehicle which acquires and
consolidates underwriting capacity at Lloyd's , announces an update
on the Company's approach to determining the adjusted net asset
value of the Company.
Adjusted net asset value
Helios has disclosed an adjusted net asset value to allow
investors to assess the value of the underlying assets in the
business. Two adjustments have been made to the net asset value as
disclosed in the Company's historic consolidated balance sheets to
arrive at an adjusted net asset value. The net asset value as
disclosed in the Company's audited financial statements remains
unaffected.
a) In the consolidated balance sheets, the value of the capacity
was included at "Fair Value", being that value at the time it was
acquired with an LLV, as adjusted for any impairment. A management
adjustment was made to include in the adjusted net asset value the
current value of the capacity as determined by reference to the
weighted average prices from the last Lloyd's capacity auctions.
This increased the value of capacity as at 30 (th) June 2020 from
GBP21.6m to GBP26.8m. This correctly reflected the value of the
capacity portfolio.
b) A second management adjustment was made to include Group
letters of credit relating to reinsurance policies of LLVs that has
been acquired in the past. As at 30 (th) June 2020, the value of
these Group letters of credit was GBP2.9m. These reinsurance
policies provide third party funds at Lloyd's ("FAL") for certain
LLVs which, as off-balance sheet items, are not included on the
balance sheets of LLVs. On acquisition of these LLVs, an assessment
of the Fair Value of the assets acquired was made, including the
assets provided by these reinsurance policies and a reserve at
consolidation level was made to reflect the value of the third
party FAL provided. Following an internal review, the further
management adjustment to reflect the value of these assets was
unnecessary as the provision on consolidation properly reflected
the value of the Group letters of credit and consequently the
adjusted net asset value per share was overstated.
The Board will be considering adopting an accounting policy to
value assets at current fair value rather than using cost at the
time of acquisition for both the capacity value and for the value
of the Group letters of credit.
The table below shows the change to the calculation of the
adjusted net asset value per share reflecting the capital raise as
completed in November 2020, excluding the adjustment for the Group
letters of credit.
Equity Pro forma
As at Raise (Nov Nov 20
Jun 2020 2020) 20
GBP'000's GBP'000's GBP'000's
Net tangible assets 6,397 13,268 19,665
Value of capacity (WAV) 26,827 30,826
Adjusted Net assets 33,224 50,491
================ =================
Fully d iluted s hare in
issue , thousands 17,978 15, 534 33, 512
Revised ANAV per share ,
GBP 1.85 1.5 1
Latest p ublished ANAV *
f ully d iluted , GBP 2.01 1.55
Reduction 8.1 % 3.0 %
*As announced on 2 Nov ember 2020 and adjusted for the Company's
Joint Share Ownership Plan shares nearing vesting, but before the
effect of the weighted average price from the Lloyd's capacity
auctions which was made available at the end of November 2020 and
any subsequent acquisition of capacity.
Notes to the a djustments:
a) The capital raise in November 2020, approximately 15.288
million new ordinary shares were issued increasing shareholders'
funds (net of costs) by approximately GBP18.0m. The increase in net
tangible assets (excluding the value of capacity acquired with LLVs
that were satisfied by the issue of new ordinary shares) was
approximately GBP13.268m.
b) The value of the capacity portfolio as at 31 (st) December
2020 reflecting the weighted average prices as at 4 (th) quarter
2020 and the enlarged capacity portfolio has been included.
For further information please contact:
Helios Underwriting plc
Nigel Hanbury - Chief Executive +44 (0)7787 530 404 / nigel.hanbury@huwplc.com
Arthur Manners - Chief Financial Officer +44 (0)7754 965 917
Shore Capital (Nomad and Broker)
Robert Finlay +44 (0)20 7408 4080
David Coaten
Henry Willcocks
Willis Re Securities (Financial Adviser)
Alastair Rodger +44 (0)20 3124 6033
Quentin Perrot +44 (0)20 3124 6499
Buchanan
Helen Tarbet / Henry Wilson / George Beale +44 (0)7872 604 453
+44 (0) 20 7466 5111
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 GBP110m of capacity
for the 2021 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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