Helios Underwriting Plc Quarterly Syndicate Mid Point Forecasts (6906W)
August 22 2022 - 2:00AM
UK Regulatory
TIDMHUW
RNS Number : 6906W
Helios Underwriting Plc
22 August 2022
22 August 2022
Helios Underwriting plc
(' Helios ' or'the 'Company')
Quarterly Syndicate Mid Point Forecasts
Retained Capacity Increased; Profits Continue to Outperform
against Lloyd's Market Average
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 2020 and 2021 years of account based on
2nd quarter 2022 estimates.
Nigel Hanbury, Chief Executive, commented:
"As the only listed consolidator of private capital at Lloyd's,
Helios offers a unique opportunity for investors: growth and
returns from exposure to the Lloyd's market through our strategy of
acquiring the capacity of the better performing syndicates. Over
recent years, our strategy has yielded superior results, with
returns on average 5.1% better than the Lloyd's market itself.
"We have increased the retained capacity to GBP172m in
recognition of market discipline and a harder market. We remain
confident that we shall deliver improved results when compared to
the Lloyd's market as a whole, and we look forward to creating
further shareholder value as the benefits of the larger retained
capacity flows through to the income statement."
Year of Account
2020 2021 2022
GBPm GBPm GBPm
Capacity - Position as at 18(th)
August 2022
Retained 66.5 93.5 171.9
Reinsured 49.1 51.5 60.8
-------- -------- ---------
115.6 145.0 232.7
-------- -------- ---------
Mid-point forecast at 31st March
2022 1.01% 1.90%
Current mid-point forecast 1.84% 2.40%
Lloyd's Market Average 0.25% 4.25%
Helios out performance 1.59% (1.85%)
Commentary
The mid-point forecast for 2020 year is continuing to improve,
increasing the profit for the underwriting year to 1.84%
notwithstanding the impact of the investment losses incurred on
syndicate asset portfolios during this first six months of the
year. The trend of outperformance against Lloyd's market average
has increased to 1.59% (March 2022 - 1.01%), which demonstrates the
quality of the portfolio which we have built.
The mid-point estimate for the 2021 year has improved to 2.40%.
The underperformance against the Lloyd's market has narrowed since
March 2022 to 1.85% (March 2022 - underperformance of 2.30%). We
continue to expect the gap in relative performance to narrow over
the next 15 months as it has done in the past. The syndicates
supported by third party capital have been more conservative in
their published estimates over the 36 months to the close of the
year of account due to the transparency of each syndicate's '
result and the overall result of these syndicates has improved
whilst the estimates of the aligned syndicates has remained
unchanged.
Notes
1) The table above shows the capacity as at 18th August 2022
splitting the capacity retained by Helios and the capacity that is
ceded to quota share reinsurers.
2) The mid-point forecasts for 2020 and 2021 years of account as
of 2nd quarter 2022 have been aggregated at syndicate level from
estimates supplied by managing agents.
3) 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 2022.
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 77408 4080
David Coaten
Henry Willcocks
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 GBP233m of capacity
for the 2022 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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