Helios Underwriting Plc 2022 Helios Retained Capacity (4178W)

TIDMHUW

RNS Number : 4178W

Helios Underwriting Plc

22 December 2021

22(nd) December 2021

Helios Underwriting plc

("Helios" or the "Company")

2022 Helios Retained Capacity

Helios, the unique investment vehicle that acquires and consolidates underwriting capacity at Lloyd s ', announces an update on the Company's capacity to be underwritten for 2022.

Nigel Hanbury, Chief Executive of Helios, commented:

"I am delighted that the retained capacity underwritten by Helios shareholders will have trebled to GBP171m for the 2022 underwriting year. This provides us with a strong platform from which to make further value-enhancing acquisitions."

Capacity Update

Helios announces that the retained underwriting capacity for Helios for the 2022 year of account will be GBP171m , a 1 91% increase in the capacity underwritten at the start of 2021. The overall portfolio including the capacity reinsured has increased to GBP23 3 m, more than doubling the size of the portfolio.

 
           Helios - 2022 Year of Account Capacity 
 GBPm                          Retained   Reinsured   Total 
 Capacity expected as at 
  1st January 2022                171.1        61.6   232.7 
 Capacity as at 1st January 
  2021                             58.7        51.5   110.2 
 % Increase                        191%         20%    111%

Given the much-improved underwriting pricing going into 2022, the prospects for underwriting profitability have improved considerably and the Board believes this substantial increase in the retained capacity will benefit the Company's shareholders.

The analysis of this increase in the Helios portfolio is as follows :

 
                                               2022 Capacity 
                                                        GBPm 
 Capacity at 31 Dec 2020                               110.3 
 Capacity expected to be acquired with 
  LLVs in 2021                                          34.7 
 Pre-emption capacity                                    6.2 
 Acquisition of capacity in the capacity 
  auction                                               23.7 
 Tenancy Capacity                                       57.8 
 Capacity expected at 31 
 Dec 2021                                              232.7 
                                              --------------

In addition to the capacity acquired at the capacity auctions this year, Helios has supported both new and well established syndicates that offer capa city for a limited period only, referred to as Tenancy Capacity , and Helios expects to support these syndicates in the longer term.

Helios has completed the acquisition of 2 6 LLVs so far in 2021 and expects to complete a further two prior to the year-end . In total, these 28 acquisitions will have add ed GBP35m of capacity to the 2021 year of account and increased the retained capacity for all three open years of account. The split of capacity between retained and that reinsured for the current open years of account is expected to be as follows:

 
    Retained Capacity 2019 to 2021 Years of Account 
                                  2019    2020    2021 
                                  GBPm    GBPm    GBPm 
 Capacity - Position as 
  at 1st Jan 2021                 31.3    30.9    58.6 
 
 Capacity expected to be 
  acquired during 2021            36.1    35.6    34.8 
 
 Capacity - Expected at 
  31 (st) Dec 2021                67.4    66.5    93.4

The increased retained capacity on the 2019 to 2021 years of account, substantially "off-risk" for the underwriting years, will contribute to the recognised profits in the future .

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 7601 6100

David Coaten

Buchanan (PR)

   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 GBP145m 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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