Helios Underwriting Plc Acquisition of Inversanda LLP (7651R)

TIDMHUW

RNS Number : 7651R

Helios Underwriting Plc

26 September 2017

Helios Underwriting plc

("Helios" or the "Company")

Acquisition of Inversanda LLP

Helios is pleased to announce that, in line with its strategy of increasing underwriting capacity through acquisition, on 25th September 2017, following approval of change of control by Lloyd's of London ("Lloyd's"), it has agreed to acquire Inversanda LLP ("Inversanda"), a limited liability member of Lloyd's ("LLV") for a consideration of GBP235,000 in cash.

Information in respect of Inversanda

The 2017 underwriting capacity of Inversanda is GBP616,211 (this compares with Helios's 2017 capacity of GBP35.7m prior to this acquisition). Inversanda participates in a spread of Lloyd's syndicates that broadly matches the existing portfolio of Helios and this transaction enables Helios to continue to build its participations on the better syndicates at Lloyd's.

The consideration represents a discount of 24.3% to the independent valuation of GBP310,235 placed on Inversanda by Humphrey's.

The capacity acquired, together with the capacity Helios expects to retain, is as follows:

 
   Inversanda        Year of Account 
----------------  -------------------- 
                   2015    2016   2017 
----------------  ------  -----  ----- 
                   GBPm    GBPm   GBPm 
----------------  ------  -----  ----- 
 Retained          0.65    0.63   0.18 
----------------  ------  -----  ----- 
 Reinsured           -      -     0.43 
----------------  ------  -----  ----- 
 Total Capacity    0.65    0.63   0.61 
----------------  ------  -----  ----- 
 

Helios will reinsure 70% of 2017 underwriting year in line with its stated policy of reducing 'on-risk' exposures.

Additional information

Inversanda is a limited liability member of Lloyd's. In the year ended 31 December 2016, Inversanda made a profit before tax of GBP1,156 on gross premiums written of GBP0.59m. Underwriting capacity with an estimated market value of GBP0.29m has been included in the transaction.

Set out below are Inversanda's 2015 and 2016 open years of account forecasts:

 
  YOA    Inversanda                         Forecast of Syndicate 
          syndicate                            profit (31 March 
          capacity                                  2017) 
          (GBP'000) 
------  -----------  --------------------  ----------------------  -------------- 
                      Mid-point (GBP'000)       Mid-point (%)         Range (%) 
------  -----------  --------------------  ----------------------  -------------- 
 2015       647               54                    8.28            4.71 - 11.86 
------  -----------  --------------------  ----------------------  -------------- 
 2016       634               10                    1.58            (2.86) - 6.02 
------  -----------  --------------------  ----------------------  -------------- 
 

Source: Syndicate data and Helios analysis (before early release)

For further information please contact:

Helios

Nigel Hanbury - Chief Executive 020 7863 6655 / [e-mail]

   Arthur Manners - Chief Financial Officer                                             07754 965 917 

Stockdale

Robert Finlay 020 7601 6100

David Coaten

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 GBP36.3m of capacity for the 2017 account. The portfolio provides a good spread of business being concentrated in property insurance and reinsurance. For further information please visit www.huwplc.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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September 26, 2017 02:00 ET (06:00 GMT)