Helios Underwriting Plc Quarterly Syndicate Mid Point Forecasts (2139V)
April 04 2023 - 2:00AM
UK Regulatory
TIDMHUW
RNS Number : 2139V
Helios Underwriting Plc
04 April 2023
4(th) April 2023
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 2020 and 2021 years of account based on
4th quarter 2022 estimates.
Martin Reith, Chief Executive, commented :
"Helios' unique proposition, as the only listed consolidator of
private capital at Lloyd's, is well positioned to benefit from the
Lloyd's market's recently announced mid point forecasts. Helios has
built and curated an outstanding portfolio of the better performing
syndicates and, as a consequence of underwriting discipline and
judicious capital deployment, we are delighted to see improved
underwriting profitability in the Lloyd's market. We expect Helios'
portfolio to continue to outperform the market as we have since
2013 for closed years of accounts.
Recognising stronger market conditions, we increased our
retained capacity to GBP238m for the 2023 year of account, an
increase of 34%. We remain confident that we shall deliver improved
results and superior return on equity underpinned by our favourable
Economic Capital Assessment (ECA), and look forward to creating
further shareholder value as the benefits of the larger retained
capacity flows to the income statement."
Year of Account
2020 2021 2022 2023
GBPm GBPm GBPm GBPm
Capacity - Position as at
30th September 2022
Retained 66.5 93.5 171.9
Reinsured 49.1 51.5 60.8
115.6 145.0 232.7
===================== ======== ======
Capacity Acquired
since 30th September
2022
Retained 5.6 5.8 5.7
Reinsured 0.0 0.0 0.0
5.6 5.8 5.7
===================== ======== ======
Total capacity as at 31(st)
March 2023
Retained 72.0 99.3 177.6 238.4
Reinsured 49.1 51.5 60.8 58.3
121.2 150.8 238.4 296.7
===================== ======== ====== ======
Mid-point forecast
at 30(th) September
2022 1.94% 2.29%
Final result / Current
mid-point forecast 3.11% 2.37%
Lloyd's Market Average 0.91% 4.20%
Helios out performance 2.20% (1.83)%
Commentary
The 2020 result showed an improvement over the midpoint
forecasts as at 30(th) September 2022. The overall result was
impacted by the negative investment returns recognised during the
year and the impact from the COVID-19 pandemic.
The development of the mid point estimate for 2021 has been held
back by losses from Ukraine that were recognised in 2022. The
improved returns from the investment portfolio should benefit this
year before it closes at the end of this year.
The 2022 underwriting year has been impacted by the loss from
Hurricane Ian that will create a drag on the earnings recognised in
2022.
The outperformance of 2.2% of the portfolio against the average
for the Lloyd's market for 2020 continues the trend of closed year
of account outperformance achieved since 2013.
Notes
1) The table above shows the capacity as at 31(st) March 2023,
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 4(th) 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
Helios Underwriting plc
Martin Reith - Chief Executive +44(0)7720 292 505
Nigel Hanbury - Executive Deputy Chairman +44(0)7787 530 404
Arthur Manners - Chief Financial Officer +44(0)7754 965 917
Shore Capital
Robert Finlay +44(0)20 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 GBP297m of capacity
for the 2023 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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