Helios Underwriting Plc Quarterly Syndicate Mid-Point Forecasts (0921B)
May 31 2023 - 2:00AM
UK Regulatory
TIDMHUW
RNS Number : 0921B
Helios Underwriting Plc
31 May 2023
31(st) May 2023
Helios Underwriting plc
('Helios' or 'the Company')
Quarterly Syndicate Mid-Point Forecasts
Indicative underwriting profits of 20p per share to be
recognised in the future
Helios, the investment vehicle which builds shareholder value
through exposure to Lloyd's, announces the current mid-point
forecasts in respect of its portfolio of syndicate capacity for the
2021 and 2022 years of account based on 1(st) quarter 2023
mid-point estimates.
Martin Reith, Chief Executive, commented :
"Helios' proposition as the investment vehicle which builds
shareholder value through exposure to Lloyd's, is well positioned
to benefit from the Lloyd's market's recently announced mid-point
forecasts including the first announcement in respect of the 2022
year of account. 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 especially for the 2022 underwriting year.
The initial mid-point profit forecast for 2022 of 5.7% of
capacity recognises the stronger market conditions. This,
compounded by Helios' increased retained capacity, GBP177m for the
2022 year of account, results in the recognition of additional
after tax underwriting profits to be earned of 20p per share in the
future.
2021 2022 2023
GBPm GBPm GBPm
Total capacity as at 30(th) May
2023
Retained 99.3 177.6 238.4
Reinsured 51.5 60.8 58.3
------ ------ ------
150.8 238.4 296.7
====== ====== ======
Mid-point forecast at 31st December
2022 2.4% 0.0%
Current mid-point forecast 3.9% 5.7%
GBPm
After tax retained underwriting
losses earned to 31/12/2022 for
2021 & 2022 underwriting years (4.8)
Indicative after tax retained
underwriting profits from mid-point
estimates 10.5
After tax retained underwriting
profits to be earned 15.3
------
Potential increase in Net Tangible
Asset Value per share - pence 20p
Current Net Tangible Asset Value
per share 152p
Commentary
The 2021 mid-point estimate continues to improve partially as
the investment returns on syndicate assets are expected to improve
substantially.
The 2022 initial mid-point forecast at 5.7% profit on capacity,
after the impact of the loss from Hurricane Ian, will make a
significant contribution to the earned underwriting profits in the
future as this underwriting year recognised a loss in the first 12
months of 4.0%.
The future retained after tax underwriting profits that are
currently expected to be recognised over the next two years could
increase the NTA per share by 20p to 172p per share.
Notes
1) The table above shows the capacity as at 30(th) May 2023,
splitting the capacity retained by Helios and the capacity that is
ceded to quota share reinsurers.
2) The mid-point forecasts for 2021 and 2022 years of account as
at 1(st) quarter 2023 have been aggregated at syndicate level from
estimates supplied by Managing Agents.
3) The potential increase in net tangible asset value per share
could be impacted by future underwriting losses, operating and
reinsurance costs.
4) The impact on Helios will be as follows:
a. The underwriting profits to be recognised after 1 January
2023 on the retained capacity from the indications provided by the
mid-point forecasts will be earned in calendar years 2023 and
2024.
b. The overall change in the syndicate results 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
Numis (Nomad and Broker)
Giles Rolls / Charles Farquhar +44 (0)20 7260 1000
Buchanan (PR)
Helen Tarbet / 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 & casualty insurance
and reinsurance. For further information please visit
www.huwplc.com.
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