Helios Underwriting Plc Acquisition (8831Q)

TIDMHUW

RNS Number : 8831Q

Helios Underwriting Plc

05 December 2016

5 December 2016

Helios Underwriting plc

("Helios" or the "Company")

Acquisition of Salviscount LLP

Acquisition of Salviscount LLP

Helios is pleased to announce that, in line with its strategy of increasing underwriting capacity through acquisition, on 2 December 2016 it acquired Salviscoint Limited Liability Partnership (Salviscount), a limited liability member of Lloyd's ("LLV"), for a consideration of GBP0.8 million in cash. The 2016 underwriting capacity of Salviscount is GBP1.0 million (this compares with Helios's 2016 capacity of GBP32.7 million prior to this acquisition). Salviscount participates in a spread of Lloyd's syndicates broadly similar to Helios's own participation. The capacity acquired, which Helios expects to retain, is as follows:

 
  Salviscount             Year of Account 
   LLP 
----------------  -----  ----------------  ----- 
                   2014        2015         2016 
----------------  -----  ----------------  ----- 
                   GBPm        GBPm         GBPm 
----------------  -----  ----------------  ----- 
 Retained          1.08         0.9         1.0 
----------------  -----  ----------------  ----- 
 Reinsured          -            -           - 
----------------  -----  ----------------  ----- 
 Total Capacity    1.08         0.9         1.0 
----------------  -----  ----------------  ----- 
 

Commenting upon the acquisition, Nigel Hanbury, the Company's Chief Executive Officer, said:

"We are delighted to have made a further acquisition which further increases our underwriting capacity. This is in line with our stated strategy of acquiring corporate members as suitable opportunities arise. We continue to believe that there remain significant opportunities for further growth available to the Company."

Additional information

Salviscount LLP (Salviscount) is a limited liability member of Lloyd's. In the year ended 31 December 2015, Salviscount made a profit before tax of GBP0.118m on gross premiums written of GBP0.881m and its net asset value at completion is expected to be approximately GBP0.8m, including underwriting capacity with an estimated market value of GBP0.4m.

Set out below are Salviscount's 2014 and 2015 open years of account forecasts:

 
 YOA     Salviscount        Forecast of syndicate profit 
          syndicate              (30 September 2016) 
           capacity 
          (GBP'000) 
------  ------------  ---------------------------------------- 
                       Mid point    Mid point       Range 
                        (GBP'000)      (%)            (%) 
------  ------------  -----------  ----------  --------------- 
 2014       1,084         123         11.37     14.77% - 7.97% 
------  ------------  -----------  ----------  --------------- 
 2015        936           67         7.2%      11.19% - 3.20% 
------  ------------  -----------  ----------  --------------- 
 

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                       07754 965 917 
 
 Stockdale 
  Robert Finlay                        020 7601 6100 
 
 

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 GBP32 million of capacity for the 2016 account. The portfolio provides a good spread of classes 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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December 05, 2016 02:45 ET (07:45 GMT)