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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Helios Underwriting Plc | LSE:HUW | London | Ordinary Share | GB00B23XLS45 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -5.00 | -2.94% | 165.00 | 160.00 | 170.00 | 170.00 | 165.00 | 170.00 | 24,192 | 14:22:32 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Insurance Carriers, Nec | 148.35M | -3.32M | -0.0434 | -38.02 | 126.18M |
From May 2019 to May 2024
TIDMHUW
RNS Number : 2761L
Helios Underwriting Plc
30 September 2016
Helios Underwriting plc
("Helios Underwriting" or the "Company")
Interim results for the six months ended 30 June 2016
Helios Underwriting plc, which provides investors with a limited liability direct investment into the Lloyd's insurance market, announces its unaudited results for the six months ended 30 June 2016.
The Board is pleased to announce the results for the six months to 30th June 2016. The highlights are as follows:
-- The operating profits have increased to GBP605,000 (30 June 2015 - GBP73,000)
-- Contributions from the older underwriting years have benefitted from the weakening of sterling immediately before the half year end, from the additional capacity acquired on the "off risk" underwriting where Helios retains 100% of the benefit The loss activity continues to be muted and the loss from the 2016 underwriting year of GBP188,000 for the first half is as expected as expenses are incurred before the underlying profits from the underwriting are recognized.
-- Operating and reinsurance costs are in line with expectations and we continue to benefit from the fees and profit commissions payable by the quota share reinsurers
-- Earnings per share have increased to 6.38p per share 2015 (30 June 2015 - 2.89p)
-- The Adjusted Net Asset Value per share (Humphrey's Valuation) has increased to GBP2.00 per share (30 June 2015 - GBP1.83 per share)
A fund raising up to approximately GBP5 million (net) by way of a placing of new ordinary shares in the Company is also being announced separately, together with a proposed open offer of new ordinary shares to shareholders to raise up to a further GBP3.2 million.
During the first half of 2016 we continued to build the portfolio of capacity through the acquisition of two further Limited Liability Vehicles ("LLVs"). These acquisitions have made significant contributions to the capacity retained by Helios for both 2014 and 2015 underwriting years. The table shows the current position of the capacity fund retained by Helios.
Hot Features
Premium
Helios Capacity Fund as at 30th June 2016
------------------------ ----------------------------------------------
Underwriting Year 2014 2015 2016
of Account GBPm GBPm GBPm
------------------------ -------------- -------------- --------------
Total Capacity 34.4 31.3 32.7
------------------------ -------------- -------------- --------------
Helios Retained
Capacity 19.5 15.2 9.8
------------------------ -------------- -------------- --------------
Proportion of capacity
retained. 57% 48% 30%
------------------------ -------------- -------------- --------------
Our strategy of building the portfolio of syndicate capacity continues to rely on the flow of vehicles for sale at reasonable prices. We continue to remain selective on the vehicles acquired and several vehicles have been sold recently at prices which were unattractive to us.
As such, the Company is proposing to undertake a placing to provide readily available funds to acquire further LLV's when attractive opportunities arise.
We continue to reduce our exposure by 70% on the open underwriting year 2016 through quota share reinsurance. The quota share reinsurers fund their share of the capital requirements and pay Helios a fee and a profit commission. Stop loss reinsurance is bought to limit the Group's exposure in the event of large underwriting losses.
The Adjusted Net Asset Value per share (Humphreys valuation) has increased to GBP2.00 per share. The Lloyds' capacity auctions are scheduled for mid November in 2016 and it is expected that there will continue to be strong demand for the top syndicates that make up a significant proportion of the Helios Capacity Fund.
The syndicates that Helios supports have announced overall increases in the business to be underwritten for 2017 which is expected to increase the Helios Capacity Fund by over GBP2 million.
The Board currently expects that the syndicate results for the 2014 and 2015 underwriting years will exceed current mid-point forecasts published by the managing agents which should make a meaningful contribution to the Helios full year result.
Financial results summary
Six months ended 30 June 2016
6 months to June 2016
Helios retained
capacity at Total profit % earned
30 June 2016 Portfolio mid currently in the 2016 half year Helios
Underwriting Year GBPm point forecasts estimated calendar profits
2014 19.5 11.3% 2,205 29% 638
2015 15.2 7.2% 1,090 55% 601
2016 9.8 N/A (188)
--------------------- --------------- ---------------- ------------ ---------------------- --------
1,051
--------------------- --------------- ---------------- ------------ ---------------------- --------
Pre-acquisition (117)
--------------------- --------------- ---------------- ------------ ---------------------- --------
Fees from reinsurers 331
Stop loss costs (121)
Operating costs (637)
Other income 98
--------------------- --------------- ---------------- ------------ ---------------------- --------
Operating profit 605
--------------------- --------------- ---------------- ------------ ---------------------- --------
Restated 6 months to June 2015
Helios retained
capacity at Total profit % earned
30 June 2015 Portfolio mid currently in the 2015 Helios
Underwriting Year GBPm point forecasts estimated half year calendar profits
--------------------- --------------- ---------------- ------------ ------------------- --------
2013 19.0 11.0% 2,092 18.0% 375
2014 12.5 7.5% 934 57.0% 529
2015 8.6 N/A (82)
--------------------- --------------- ---------------- ------------ ------------------- --------
822
--------------------- --------------- ---------------- ------------ ------------------- --------
Pre-acquisition (26)
--------------------- --------------- ---------------- ------------ ------------------- --------
Fees from reinsurers 244
Stop loss costs (400)
Operating costs (610)
Other income 42
--------------------- --------------- ---------------- ------------ ------------------- --------
Operating profit 73
--------------------- --------------- ---------------- ------------ ------------------- --------
Year to 31 December 2015
Helios retained
capacity at % earned
31 December Total profit in the 2015
2015 Portfolio mid currently calendar Helios
Underwriting Year GBPm point forecasts estimated year profits
--------------------- --------------- ---------------- ------------ ------------ --------
2013 20.6 14.2% 2,925 41.0% 1,198
2014 14.3 8.9% 1,273 41.0% 854
2015 10.6 N/A 12
--------------------- --------------- ---------------- ------------ ------------ --------
2,064
--------------------- --------------- ---------------- ------------ ------------ --------
Pre-acquisition (190)
--------------------- --------------- ---------------- ------------ ------------ --------
Fees from reinsurers 385
Stop loss costs (407)
Operating costs (1,334)
Other income 91 --------------------- --------------- ---------------- ------------ ------------ -------- Operating profit 609 --------------------- --------------- ---------------- ------------ ------------ --------
Summary Balance Sheet
The summary Group balance sheet excludes items relating to syndicate participations. See Note 15 for further information.
6 Months to June 2016 6 Months to June 2015 Year to 31 December 2015
------------------ --------------------- ----------------------- ------------------------
Intangible assets 10,907 7,942 8,511
Funds at Lloyd's 4,954 1,773 3,894
Other cash 2,975 3,702 2,973
Other assets 1,304 1,258 1,231
------------------ --------------------- ----------------------- ------------------------
Total assets 20,140 14,675 16,609
------------------ --------------------- ----------------------- ------------------------
Deferred tax 3,002 2,546 3,172
Other liabilities 4,722 2,274 3,162
------------------ --------------------- ----------------------- ------------------------
Total liabilities 7,724 4,820 6,334
------------------ --------------------- ----------------------- ------------------------
Total equity 12,416 9,855 10,275
------------------ --------------------- ----------------------- ------------------------
Summary Group Cash Flow
The summary group cash flow sheet excludes items relating to syndicate participations. See Note 15 for further information.
6 months to 6 months to 30 Year to 31 December
30 June 2016 June 2015 2015
Opening Balance (free cash) 2,972 2,704 2,704
Income
Acquired on acquisition 577 942 977
Distribution of profits (net
of tax retentions) 3,378 2,329 2,510
Transfers from Funds at
Lloyds' 2,258 870 1,167
Investment income 13 3 26
Other income - (4) 151
Sale of investments 15 225 260
Transfers from PTF accounts
(early release) - - 221
Expenditure
Operating costs (inc Hampden
/ Nomina fees) (250) (237) (774)
Reinsurance Cost (237) (275) (275)
Payments to QS reinsurers - - -
Acquisition of LLV's (4,885) (2,316) (2,316)
Transfers to Funds at Lloyds' (861) (220) (1,351)
Tax (5) 1 (7)
Dividends paid - (320) (320)
Closing balance 2,975 3,702 2,973
----------------------------- --------------------------- --------------------------
Condensed consolidated statement of comprehensive income
Six months ended 30 June 2016
6 months Restated 12 months
ended 6 months ended
30 June ended 31 December
2016 30 June 2015
Unaudited 2015 Unaudited Audited
Note GBP'000 GBP'000 GBP'000
------------------------------------------------------- ----- ---------- --------------- ------------
Gross premium written 4 17,585 11,942 21,511
Reinsurance premium ceded (4,710) (3,369) (5,582)
------------------------------------------------------- ----- ---------- --------------- ------------
Net premium written 4 12,875 8,573 15,929
------------------------------------------------------- ----- ---------- --------------- ------------
Change in unearned gross premium provision (4,343) (2,369) (162)
Change in unearned reinsurance premium provision 1,650 918 93
------------------------------------------------------- ----- ---------- --------------- ------------
(2,693) (1,451) (69)
------------------------------------------------------- ----- ---------- --------------- ------------
Net earned premium 3,4 10,182 7,122 15,860
Net investment income 6 528 215 255
Other income 330 244 392
------------------------------------------------------- ----- ---------- --------------- ------------
Revenue 11,040 7,581 16,507
------------------------------------------------------- ----- ---------- --------------- ------------
Gross claims paid (5,769) (4,843) (9,349)
Reinsurers' share of gross claims paid 745 790 1,650
------------------------------------------------------- ----- ---------- --------------- ------------
Claims paid, net of reinsurance (5,024) (4,053) (7,699)
------------------------------------------------------- ----- ---------- --------------- ------------
Change in provision for gross claims (183) 403 615
Reinsurers' share of change in provision for gross
claims (2,040) (819) (431)
------------------------------------------------------- ----- ---------- --------------- ------------
Net change in provision for claims (2,223) (416) 184
------------------------------------------------------- ----- ---------- --------------- ------------
Net insurance claims and loss adjustment expenses 4 (7,247) (4,469) (7,515)
------------------------------------------------------- ----- ---------- --------------- ------------
Expenses incurred in insurance activities (2,808) (2,703) (7,571)
Other operating expenses (380) (336) (812)
------------------------------------------------------- ----- ---------- --------------- ------------
Operating expenses (3,188) (3,039) (8,383)
------------------------------------------------------- ----- ---------- --------------- ------------
Operating profit before goodwill and impairment 4 605 73 609
Goodwill on bargain purchase 12 - 196 244
Impairment of goodwill 12 - (45) (136)
Impairment of syndicate capacity 39 - (63)
------------------------------------------------------- ----- ---------- --------------- ------------
Profit before tax 644 224 654
Income tax charge 7 26 26 135
------------------------------------------------------- ----- ---------- --------------- ------------
Profit for the period 670 250 789
------------------------------------------------------- ----- ---------- --------------- ------------
Other comprehensive income for the period, net
of tax 216 - 121 ------------------------------------------------------- ----- ---------- --------------- ------------ Total other comprehensive income for the period 216 - 121 ------------------------------------------------------- ----- ---------- --------------- ------------ Profit for the period attributable to owners of the Parent 886 250 910 ------------------------------------------------------- ----- ---------- --------------- ------------ Total comprehensive income for the period attributable to owners of the Parent 886 250 910 ------------------------------------------------------- ----- ---------- --------------- ------------ Earnings per share attributable to owners of the Parent Basic and diluted 8 6.38p 2.89p 8.38p ------------------------------------------------------- ----- ---------- --------------- ------------
The profit attributable to owners of the Parent and earnings per share set out above are in respect of continuing operations.
The notes are an integral part of these Financial Statements.
Condensed consolidated statement of financial position
Six months ended 30 June 2016
6 months Restated
ended 6 months 12 months
30 June ended 30 ended
2016 June 2015 31 December
Unaudited Unaudited 2015 Audited
Note GBP'000 GBP'000 GBP'000
------------------------------------------------------- ----- ---------- ---------- -------------
Assets
Intangible assets 10,907 7,942 8,511
Reinsurance assets:
- reinsurers' share of claims outstanding 5 7,689 4,851 5,657
- reinsurers' share of unearned premium 5 3,527 2,278 1,501
Other receivables, including insurance and reinsurance
receivables 28,579 19,040 20,427
Prepayments and accrued income 4,618 3,114 3,070
Financial assets at fair value through profit or
loss 38,004 25,388 31,797
Cash and cash equivalents 5,668 5,127 3,634
------------------------------------------------------- ----- ---------- ---------- -------------
Total assets 98,992 67,740 74,597
------------------------------------------------------- ----- ---------- ---------- -------------
Liabilities
Insurance liabilities:
- claims outstanding 5 43,060 28,258 32,985
- unearned premium 5 18,054 12,368 11,169
Deferred income tax liabilities 3,002 2,546 3,172
Other payables, including insurance and reinsurance
payables 13,948 9,652 9,360
Accruals and deferred income 4,144 1,652 1,488
------------------------------------------------------- ----- ---------- ---------- -------------
Total liabilities 82,208 54,476 58,174
------------------------------------------------------- ----- ---------- ---------- -------------
Equity
Equity attributable to owners of the Parent:
Share capital 11 1,050 896 1,050
Share premium 11 9,901 7,556 9,901
Other reserves 337 - 121
Retained earnings 5,496 4,812 5,351
------------------------------------------------------- ----- ---------- ---------- -------------
Total equity 16,784 13,264 16,423
------------------------------------------------------- ----- ---------- ---------- -------------
Total liabilities and equity 98,992 67,740 74,597
------------------------------------------------------- ----- ---------- ---------- -------------
The Financial Statements were approved and authorised for issue by the Board of Directors on 29 September 2016, and were signed on its behalf by:
Nigel Hanbury
Chief Executive
The notes are an integral part of these Financial Statements.
Condensed consolidated statement of changes in equity
Six months ended 30 June 2016
Attributable to owners
of the Parent Restated
----------------------------------------------------
Note Share Share Other Retained
capital premium reserves earnings Total
Consolidated GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------------- ------ -------- --------- ---------- --------- --------
At 1 January 2016 1,050 9,901 121 5,351 16,423
Final dividend for year end 31 December
2015 - - - (525) (525)
Share issue - - - - -
Profit for the period - - 216 670 886
At 30 June 2016 1,050 9,901 337 5,496 16,784
------------------------------------------------ -------- --------- ---------- --------- --------
At 1 January 2015 853 6,996 - 5,019 12,868
Dividends paid - (457) (457)
Share issue 43 560 - - 603
Profit for the period restated - - - 250 250
At 30 June 2015 896 7,556 - 4,812 13,264
------------------------------------------------ -------- --------- ---------- --------- --------
At 1 January 2015 853 6,996 - 5,019 12,868
Dividends paid - (457) (457)
Share issue 197 2,905 - - 3,102
Profit for the period - - 121 789 910
------------------------------------------------ -------- --------- ---------- --------- --------
At 31 December 2015 1,050 9,901 121 5,351 16,423
------------------------------------------------ -------- --------- ---------- --------- --------
The notes are an integral part of these Financial Statements.
Condensed consolidated statement of cash flows
Six months ended 30 June 2016
Note 6 months Restated 12 months
ended 6 months ended
30 June ended 31 December
2016 30 June 2015
Unaudited 2015 Unaudited Audited
GBP'000 GBP'000 GBP'000
-------------------------------------------------------------- ----- ---------- --------------- ------------
Cash flows from operating activities
Profit before tax 644 224 654
Adjustments for:
Other comprehensive income, gross of tax 270 - 149
Interest received (4) (2) (60)
Investment income 6 (424) (191) (926)
Goodwill on bargain purchase 12 - (196) (244)
Impairment of goodwill 12 - 45 136
(Profit)/loss on sale of intangible assets - - (120)
Impairment of intangible assets (39) - 63
Goodwill on acquisition (449) - -
Changes in working capital:
* change in fair value of financial assets held at fair
value through profit or loss 6 (50) 255 360
* (increase)/decrease in financial assets at fair value
through profit or loss (409) 1,822 1,020
- (increase)/decrease in other receivables (3,234) 1,261 709
- (increase)/decrease in other payables 4,114 1,883 11
- net (increase)/decrease in technical provisions 5,236 (797) (50)
-------------------------------------------------------------- ----- ---------- --------------- ------------
Cash generated/(utilised) from operations 5,655 4,304 1,702
-------------------------------------------------------------- ----- ---------- --------------- ------------
Income tax paid 2 2 161
-------------------------------------------------------------- ----- ---------- --------------- ------------
Net cash inflow from operating activities 5,657 4,306 1,863
-------------------------------------------------------------- ----- ---------- --------------- ------------
Cash flows from investing activities
Interest received 4 2 60
Investment income 424 191 926
Purchase of intangible assets - - (2)
Proceeds from disposal of intangible assets - - 24
Acquisition of subsidiaries, net of cash acquired (4,051) (2,657) (2,521)
-------------------------------------------------------------- ----- ---------- --------------- ------------
Net cash inflow from investing activities (3,623) (2,464) (1,513)
-------------------------------------------------------------- ----- ---------- --------------- ------------
Cash flows from financing activities
Dividends paid to owners of the Parent - (320) (321)
-------------------------------------------------------------- ----- ---------- --------------- ------------
Net cash outflow from financing activities - (320) (321)
-------------------------------------------------------------- ----- ---------- --------------- ------------
Net increase in cash and cash equivalents 2,034 1,522 29
Cash and cash equivalents at beginning of period 3,634 3,605 3,605
-------------------------------------------------------------- ----- ---------- --------------- ------------
Cash and cash equivalents at end of period 5,668 5,127 3,634
-------------------------------------------------------------- ----- ---------- --------------- ------------
Cash held within the syndicates' accounts is GBP3,456,000 (2015: GBP1,411,000) of the total cash and cash equivalents held at the period end of GBP5,668,000 (2015: GBP3,634,000). The cash held within the syndicates' accounts is not available to the Group to meet its day-to-day working capital requirements.
Cash and cash equivalents comprise cash at bank and in hand.
The notes are an integral part of these Financial Statements.
Notes to the financial statements
Six months ended 30 June 2015
1. General information
The Company is a public limited company quoted on AIM. The Company was incorporated in England, is domiciled in the UK and its registered office is 40 Gracechurch Street, London EC3V 0BT. The Company participates in insurance business as an underwriting member at Lloyd's through its subsidiary undertakings.
2. Accounting policies
Basis of preparation
The Condensed Consolidated Interim Financial Statements have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRSs) and in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting.
The Condensed Consolidated Interim Financial Statements are prepared for the six months ended 30 June 2016.
The Condensed Consolidated Interim incorporate the Financial Statements of Helios Underwriting plc, the Parent Company, and its directly and indirectly held subsidiaries being Hampden Corporate Member Limited, Nameco (No. 365) Limited, Nameco (No. 605) Limited, Nameco (No. 321) Limited, Nameco (No. 917) Limited, Nameco (No. 229) Limited, Nameco (No. 518) Limited, Nameco (No. 804) Limited, Halperin Underwriting Limited, Bernul Limited, Dumasco Limited, Nameco (No. 311) Limited, Nameco (No. 402) Limited, Updown Underwriting Limited, Nameco (No. 507) Limited, Nameco (No. 76) Limited, Kempton Underwriting Limited, Devon Underwriting Limited, Nameco (No 346) Limited, Helios UTG Partner Limited, Nomina No 035 LLP, Nomina No 342 LLP, Nomina No 380 LLP and Nomina No 372 LLP (Note 10).
The Condensed Consolidated Interim Financial Statements for the six months ended 30 June 2016 and 2015 are unaudited, but have been subject to review by the Group's auditors. The Condensed Consolidated Interim Financial Statements have been prepared in accordance with the accounting policies adopted for the year ended 31 December 2015.
The underwriting data on which these Condensed Consolidated Interim Financial Statements are based upon has been supplied by the managing agents of those syndicates which the Group supports. The data supplied is the 100% figures for each syndicate. The Group has applied its share of the syndicate participations to the gross figures to derive its share of the syndicates transactions, assets and liabilities.
Significant accounting policies
The Condensed Consolidated Interim Financial Statements have been prepared under the historical cost convention. The same accounting policies, presentation and methods of computation are followed in these Condensed Consolidated Interim Financial Statements as were applied in the preparation of the Group Financial Statements for the year ended 31 December 2015. The new standards and amendments to standards and interpretations effective after 1 January 2016, as disclosed in the Annual Report for the year ended 31 December 2015, have not had a significant impact on the Condensed Consolidated Interim Financial Statements at 30 June 2016.
Change of accounting policy
Up to 31 December 2014 the Group's intangible asset, syndicate capacity, was stated at cost, less any provision for impairment at initial recognition, and amortised on a straight line basis over the useful economic life, which was estimated to be seven years.
As of 1 January 2015 the Group changed its accounting policy for intangible assets, being its syndicate capacity. The new accounting policy has been applied retrospectively, as if the policy had always been in place. This impact of this change in accounting policy was to increase retained profits by GBP2,383,000 as 1 January 2014, full details were disclosed in the financial statements for the year ended 31 December 2015.
The new accounting policy adopted measures the intangible asset, syndicate capacity, at cost less any impairment. The change in accounting policy was approved by the Board after the 2015 interim results were announced, accordingly the period ended 30 June 2015 has been restated to add back the amortisation of GBP476,000 from the condensed consolidated statement of comprehensive income to the intangible assets in the condensed consolidated statement of financial position.
Historically, the Group's quota share arrangements have been shown net of profit share payable less fees receivable in the condensed consolidated statement of comprehensive income. When preparing the financial statements for 31 December 2015 and 30 June 2016, the profit share payable has been restated to show as gross of fees receivable to provide consistent presentation. The fees receivable of GBP244,000 are now shown as other income rather than as part of reinsurance ceded.
3. Segmental information
Nigel Hanbury is the Group's chief operating decision-maker. He has determined its operating segments based on the way the Group is managed, for the purpose of allocating resources and assessing performance.
The Group has three segments that represent the primary way in which the Group is managed, as follows:
-- syndicate participation;
-- investment management; and
-- other corporate activities.
Other
Syndicate Investment corporate
participation management activities Total
6 months ended 30 June 2016 Unaudited GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------- -------------- ----------- ----------- --------
Net earned premium 10,741 - (559) 10,182
Net investment income 495 33 - 528
Other income - - 330 330
Net insurance claims and loss adjustment
expenses (7,247) - - (7,247)
Expenses incurred in insurance activities (2,241) - (567) (2,808)
Other operating expenses - - (380) (380)
Goodwill on bargain purchase - - - -
Impairment of goodwill - - - -
Impairment of syndicate capacity (see Note
13) - - 39 39
------------------------------------------- -------------- ----------- ----------- --------
Profit before tax 1,748 33 (1,137) 644
------------------------------------------- -------------- ----------- ----------- --------
Other
Syndicate Investment corporate
participation management activities Total
Restated 6 months ended 30 June 2015 Unaudited GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------------------- -------------- ----------- ----------- --------
Net earned premium 7,765 - (643) 7,122
Net investment income 206 9 - 215
Other income - - 244 244
Net insurance claims and loss adjustment
expenses (4,469) - - (4,469)
Expenses incurred in insurance activities (2,420) - (283) (2,703)
Other operating expenses - - (336) (336)
Goodwill on bargain purchase - - 196 196
Impairment of goodwill - - (45) (45)
Impairment of syndicate capacity (see Note
13)
----------------------------------------------- -------------- ----------- ----------- --------
Profit before tax 1,082 9 (867) 224
----------------------------------------------- -------------- ----------- ----------- --------
Other
Syndicate Investment corporate
participation management activities Total
12 months ended 31 December 2015 Audited GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------- -------------- ----------- ----------- --------
Net earned premium 17,257 - (1,397) 15,860
Net investment income 250 5 - 255
Other income - - 392 392
Net insurance claims and loss adjustment
expenses (7,515) - - (7,515)
Expenses incurred in insurance activities (7,178) - (393) (7,571)
Other operating expenses 35 - (847) (812)
Goodwill on bargain purchase - - 244 244
Impairment of goodwill - - (136) (136)
Impairment of syndicate capacity (see Note
13) - - (63) (63)
------------------------------------------- -------------- ----------- ----------- --------
Profit before tax 2,849 5 (2,200) 654
------------------------------------------- -------------- ----------- ----------- --------
The Group does not have any geographical segments as it considers all of its activities to arise from trading within the UK.
No major customers exceed 10% of revenue.
Net earned premium within 2016 other corporate activities totalling GBP559,000 (2015: 1,397,000 - 2013, 2014 and 2015 years of account) represents the 2014, 2015 and 2016 years of account net Group quota share reinsurance premium payable to Hampden Insurance Guernsey PCC Limited - Cell 6. This net quota share reinsurance premium payable is included within "reinsurance premium ceded" in the Consolidated Income Statement of the period.
4. Operating profit before goodwill and impairment
Underwriting year of account*
---------------------------------------------
2014 and Pre- Corporate Other
6 months ended 30 prior 2015 2016 Sub-total acquisition reinsurance corporate Total
June 2016 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Gross premium written 432 2,485 16,319 19,236 (1,651) - - 17,585
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Net premium written 428 2,143 12,254 14,825 (1,271) (559) (121) 12,875
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Net earned premium 1,291 7,578 3,049 11,918 (1,056) (559) (121) 10,182
Other income 330 97 26 453 (23) 330 98 858
Net insurance claims
and loss adjustment
expenses (382) (4,289) (3,269) (7,940) 693 - - (7,247)
Operating expenses 61 (2,023) (858) (2,820) 269 - (637) (3,188)
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Operating profit
before goodwill and
impairment 1,300 1,363 (1,052) 1,611 (117) (229) (660) 605
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Quota share
adjustment (662) (762) 865 (559) - 559 - -
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Operating profit
before goodwill and
impairment after
quota share
adjustment 638 601 (187) 1,052 (117) 330 (660) 605
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Underwriting year of account*
---------------------------------------------
2013 Pre- Corporate Other
Restated 6 months and prior 2014 2015 Sub-total acquisition reinsurance corporate Total
ended 30 June 2015 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Gross premium written 18 1,788 11,343 13,149 (1,207) - - 11,942
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Net premium written 42 1,525 8,934 10,501 (885) (643) (400) 8,573
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Net earned premium 655 5,884 2,343 8,882 (717) (643) (400) 7,122
Other income 148 46 12 206 (33) 244 42 459
Net insurance claims
and loss adjustment
expenses 116 (3,082) (1,938) (4,904) 435 - - (4,469)
Operating expenses (409) (1,675) (635) (2,719) 290 - (610) (3,039)
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Operating profit
before goodwill and
impairment 510 1,173 (218) 1,465 (25) (399) (968) 73
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Quota share
adjustment (135) (644) 136 (643) - 643 - -
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
-Operating profit
before goodwill and
impairment after
quota share
adjustment 375 529 (82) 822 (25) 244 (968) 73
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Underwriting year of account*
--------------------------------------------
2013 Pre- Corporate Other
12 months ended 31 and prior 2014 2015 Sub-total acquisition reinsurance corporate Total
December 2015 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- ---------- --------- --------- ---------- ------------ ------------ ---------- --------
Gross premium written (25) 2,362 21,331 23,668 (2,157) - - 21,511
---------------------- ---------- --------- --------- ---------- ------------ ------------ ---------- --------
Net premium written (148) 2,009 17,607 19,468 (1,735) (1,397) (407) 15,929
---------------------- ---------- --------- --------- ---------- ------------ ------------ ---------- --------
Net earned premium 712 9,092 9,475 19,279 (1,615) (1,397) (407) 15,860
Other income 170 62 22 254 (80) 382 91 647
Net insurance claims
and loss adjustment
expenses 1,414 (4,190) (5,468) (8,244) 726 3 - (7,515)
Operating expenses (706) (3,160) (3,962) (7,828) 779 - (1,334) (8,383)
---------------------- ---------- --------- --------- ---------- ------------ ------------ ---------- --------
Operating profit
before goodwill and
impairment 1,590 1,804 67 3,461 (190) (1,012) (1,650) 609
---------------------- ---------- --------- --------- ---------- ------------ ------------ ---------- --------
Quota share adjustment (392) (950) (55) (1,397) - 1,397 - -
---------------------- ---------- --------- --------- ---------- ------------ ------------ ---------- --------
-Operating profit
before goodwill and
impairment after
quota share
adjustment 1,198 854 12 2,064 (190) 385 (1,650) 609
---------------------- ---------- --------- --------- ---------- ------------ ------------ ---------- --------
Pre-acquisition relates to the element of results from the new acquisitions before they were acquired by the Group.
* The underwriting year of account results represent the Group's share of the syndicates' results by underwriting year of account before corporate member level reinsurance and members' agents charges.
5. Insurance liabilities and reinsurance balances
Movement in claims outstanding
Gross Reinsurance Net
GBP'000 GBP'000 GBP'000
------------------------------------------------- -------- ----------- --------
At 1 January 2016 32,985 5,657 27,328
Increase in reserves arising from acquisition of
subsidiary undertakings 6,643 1,142 5,501
Movement of reserves 183 (2,040) 2,223
Other movements 3,249 2,930 319
------------------------------------------------- -------- ----------- --------
At 30 June 2016 43,060 7,689 35,371
------------------------------------------------- -------- ----------- --------
Included within other movements are the 2013 and prior years' claims reserves reinsured into the 2014 year of account on which the Group does not participate and currency exchange differences.
Movement in unearned premium
Gross Reinsurance Net
GBP'000 GBP'000 GBP'000
------------------------------------------------- -------- ----------- --------
At 1 January 2016 11,169 1,501 9,668
Increase in reserves arising from acquisition of
subsidiary undertakings 2,616 451 2,164
Movement of reserves 4,343 1,650 2,693
Other movements (74) (75) 2
------------------------------------------------- -------- ----------- --------
At 30 June 2016 18,054 3,527 14,527
------------------------------------------------- -------- ----------- --------
6. Net investment income
6 months 6 months 12 months
ended ended ended 31
30 June 30 June December
2016 Unaudited 2015 Unaudited 2015 Audited
GBP'000 GBP'000 GBP'000
--------------------------------------------------------- --------------- ---------------- -------------
Investment income 424 191 926
Realised gains on financial assets at fair value through
profit or loss 48 193 (327)
Unrealised losses on financial assets at fair value
through profit or loss 52 (171) (360)
Investment management expenses - - (44)
Bank interest 4 2 60
--------------------------------------------------------- --------------- ---------------- -------------
Net investment income 528 215 255
--------------------------------------------------------- --------------- ---------------- -------------
7. Income tax charge
Analysis of tax charge/(credit) in the period
6 months 6 months 12 months
ended ended ended 31
30 June 30 June December
2016 Unaudited 2015 Unaudited 2015 Audited
GBP'000 GBP'000 GBP'000
------------------ --------------- ---------------- -------------
Income tax charge (26) (26) (135)
------------------ --------------- ---------------- -------------
The income tax expense is recognised based on management's best estimate of the weighted average annual income tax rate expected for the full financial year. The estimated average annual tax rate used is 20% (2015: 20%). Material disallowed terms have been adjusted for in the income tax calculation.
8. Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to ordinary shareholders after tax by the weighted average number of ordinary shares outstanding during the period.
Diluted earnings per share is calculated by dividing the net profit attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the period, plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.
The Group has no dilutive potential ordinary shares.
Earnings per share has been calculated in accordance with IAS 33 "Earnings per share".
The earnings per share and weighted average number of shares used in the calculation are set out below:
Restated
6 months 6 months 12 months
ended 30 ended 30 ended 31
June 2016 June 2015 December
Unaudited Unaudited 2015 Audited
--------------------------------------------------------- ---------- ---------- -------------
Profit for the period after tax attributable to ordinary
shareholders 670,000 250,000 GBP789,000
--------------------------------------------------------- ---------- ---------- -------------
Weighted average number of shares in issue 10,495,350 8,640,938 9,411,794
--------------------------------------------------------- ---------- ---------- ------------- Basic and diluted earnings per share 6.38 2.89 8.38p --------------------------------------------------------- ---------- ---------- -------------
9. Dividends paid or proposed
A Dividend of 5.0p per share was proposed and agreed at the AGM (2015: 5.1p).
10. Investments in subsidiaries
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
------ -------- -------- -----------
Total 19,503 8,705 14,706
------ -------- -------- -----------
At 30 June 2016 the Company owned 100% of the following companies and limited liability partnerships, either directly or indirectly. All subsidiaries are incorporated in England and Wales.
Direct/indirect 2016 2015
Company or partnership interest ownership ownership Principal activity
--------------------------- ---------------- ---------- ---------- ---------------------------
Hampden Corporate Member Lloyd's of London corporate
Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No. 365) Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No. 605) Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No. 321) Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No. 917) Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No. 229) Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No. 518) Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No. 804) Limited Direct 100% 100% vehicle
Halperin Underwriting Lloyd's of London corporate
Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Bernul Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Dumasco Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No. 311) Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No. 402) Limited Direct 100% 100% vehicle
Updown Underwriting Lloyd's of London corporate
Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No. 507) Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No. 76) Limited Direct 100% 100% vehicle
Kempton Underwriting Lloyd's of London corporate
Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Devon Underwriting Limited Direct 100% - vehicle
Lloyd's of London corporate
Nameco (No 346) Limited Direct 100% - vehicle
Lloyd's of London corporate
Nomina No 035 LLP Indirect 100% 100% vehicle
Lloyd's of London corporate
Nomina No 342 LLP Indirect 100% 100% vehicle
Lloyd's of London corporate
Nomina No 380 LLP Indirect 100% 100% vehicle
Lloyd's of London corporate
Nomina No 372 LLP Indirect 100% 100% vehicle
Helios UTG Partner Limited Direct 100% 100% Corporate partner
--------------------------- ---------------- ---------- ---------- ---------------------------
Helios UTG Partner Limited, a subsidiary of the Company, owns 100% of Nomina No 035 LLP, Nomina No 342 LLP, Nomina No 380 LLP and Nomina No 372 LLP.
For details of all new acquisitions made during the period refer to Note 12.
11. Share capital and share premium
Number Ordinary
of shares share Share
capital premium Total
Allotted, called up and fully paid GBP'000 GBP'000 GBP'000
---------------------------------------------- ----------- -------- -------- --------
Ordinary shares of 10p each and share premium
at 30 June 2015 8,956,787 896 7,556 8,452
---------------------------------------------- ----------- -------- -------- --------
Ordinary shares of 10p each and share premium
at 31 December 2015 10,495,350 1,050 9,901 10,951
---------------------------------------------- ----------- -------- -------- --------
Ordinary shares of 10p each and share premium
at 30 June 2016 10,495,350 1,050 9,901 10,951
---------------------------------------------- ----------- -------- -------- --------
12. Acquisition of Limited Liability Vehicles
Acquisitions of Limited Liability Vehicles are accounted for using the acquisition method of accounting. Comparing the consideration paid to the fair value of net assets acquired gives rise to goodwill. Goodwill on bargain purchases is taken to the Consolidated Income Statement and Goodwill is taken to intangible assets and tested at each period end for impairment. Details of which are shown below:
30 June 30 June 30 June 30 June 31 December 31 December
2016 2016 2015 2015 2015 2015
Goodwill Goodwill Goodwill
on bargain on bargain Impairment on bargain Impairment
purchase Goodwill purchase of goodwill purchase of goodwill
Company or partnership GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------- ----------- -------- ----------- ------------ ----------- ------------
Nameco (No. 311) Limited - - 56 - 59 -
Nameco (No. 402) Limited - - - (45) - (30)
Updown Underwriting Limited - - 57 - 51 -
Nameco (No. 507) Limited - - 83 - 134 -
Nameco (No. 76) Limited - - - - - (52)
Kempton Underwriting Limited - - - - - (54)
Devon Underwriting Limted - 100 - - - -
Nameco (No. 346) Limited - 350 - - - -
- 450 196 (45) 244 (136)
----------------------------- ----------- -------- ----------- ------------ ----------- ------------
Further details of individual 2016 acquisitions are shown below:
(a) 2016 acquisitions
Devon Underwriting Limited
On 21 January 2016, Helios Underwriting plc acquired 100% of the issued share capital of Devon Underwriting Limited for a total consideration of GBP1,070.000 Devon Underwriting Limited is incorporated in England and Wales and is a corporate member of Lloyd's.
The acquisition has been accounted for using the acquisition method of accounting. After the alignment of accounting policies and other adjustments to the valuation of assets and liabilities to reflect their fair value at acquisition, the fair value of the net assets was GBP970,000. Goodwill of GBP100,000 arose on acquisition which has been recognised as an intangible asset and will be assessed at each period end for impairment. The following table explains the fair value adjustments made to the carrying values of the major categories of assets and liabilities at the date of acquisition:
Carrying
value Adjustments Fair value
GBP'000 GBP'000 GBP'000
------------------------------------------------------- -------- ------------- ----------
Intangible assets - 604 604
Reinsurance assets:
- reinsurers' share of claims outstanding 332 - 332
- reinsurers' share of unearned premium 67 - 67
Other receivables, including insurance and reinsurance
receivables 1,242 - 1,242
Prepayments and accrued income 164 - 164
Financial assets at fair value through profit or
loss 1,863 - 1,863
Cash and cash equivalents 104 - 104
Insurance liabilities:
- claims outstanding (2,121) - (2,121)
- unearned premium (584) - (584)
Deferred income tax liabilities (109) (121) (230)
Other payables, including insurance and reinsurance
payables (440) - (440)
Accruals and deferred income (31) - (31)
------------------------------------------------------- -------- ------------- ----------
Net assets acquired 487 483 970
------------------------------------------------------- -------- ------------- ----------
Satisfied by:
Cash and cash equivalents 1,070 - 1,070
------------------------------------------------------- -------- ------------- ----------
Total consideration 1,070 - 1,070
------------------------------------------------------- -------- ------------- ----------
Goodwill 583 (483) 100
------------------------------------------------------- -------- ------------- ----------
2014 year 2015 year 2016 year
of account of account of account
------------------ ----------- ----------- -----------
Capacity acquired 1,866,053 1,298,575 1,244,242
------------------ ----------- ----------- -----------
The net earned premium and profit of Devon Underwriting Limited for the period since the acquisition date to 30 June 2016 are GBP448,000 and GBP66,000 respectively.
Goodwill has arisen on the acquisition of Devon Underwriting Limited as a result of the purchase consideration being in excess of the fair value of net assets acquired.
Nameco (No. 346) Limited
On 27 May 2016, Helios Underwriting plc acquired 100% of the issued share capital of Nameco (No.346) Limited for a total consideration of GBP3,728,000. Nameco (No. 346) Limited is incorporated in England and Wales and is a corporate member of Lloyd's.
The acquisition has been accounted for using the acquisition method of accounting. After the alignment of accounting policies and other adjustments to the valuation of assets and liabilities to reflect their fair value at acquisition, the fair value of the net assets was GBP3,378,000. Goodwill of GBP350,000 arose on acquisition, which has been recognised as an intangible asset and will be assessed at each period end for impairment. The following table explains the fair value adjustments made to the carrying values of the major categories of assets and liabilities at the date of acquisition:
Carrying
value Adjustments Fair value
GBP'000 GBP'000 GBP'000
------------------------------------------------------- -------- ----------- ----------
Intangible assets 3 1,300 1,303
Reinsurance assets:
- reinsurers' share of claims outstanding 810 - 810
- reinsurers' share of unearned premium 384 - 384
Other receivables, including insurance and reinsurance
receivables 4,502 - 4,502
Prepayments and accrued income 558 - 558
Financial assets at fair value through profit or
loss 3,598 - 3,598
Cash and cash equivalents 643 - 643
Insurance liabilities:
- claims outstanding (4,522) - (4,522)
- unearned premium (2,032) - (2,032)
Deferred income tax liabilities (271) (260) (531)
Other payables, including insurance and reinsurance
payables (1,130) - (1,130)
Accruals and deferred income (205) - (205)
------------------------------------------------------- -------- ----------- ----------
Net assets acquired 2,338 1,040 3,378,
------------------------------------------------------- -------- ----------- ----------
Satisfied by:
Cash and cash equivalents 3,728 - 3,728
Total consideration 3,728 - 3,728
------------------------------------------------------- -------- ----------- ----------
Goodwill 1,390 (1,040) 350
------------------------------------------------------- -------- ----------- ----------
2014 year 2015 year 2016 year
of account of account of account
------------------ ----------- ----------- -----------
Capacity acquired 3,367,971 3,187,015 3,320,877
------------------ ----------- ----------- -----------
The net earned premium and profit of Nameco (No. 346) Limited for the period since the acquisition date to 30 June 2016 are GBP270,000 and GBP31,000 respectively.
Goodwill has arisen on the acquisition of Nameco (No. 346) Limited as a result of the purchase consideration being in excess of the fair value of net assets acquired.
Had the two Limited Liability Vehicles been consolidated from 1 January 2016, the Consolidated Statement of Comprehensive Income would show net earned premium of GBP1,774,000 and a profit after tax of GBP232,000.
13. Related party transactions
Helios Underwriting plc has inter-company loans with its subsidiaries which are repayable on three months' notice provided it does not jeopardise each company's ability to meet its liabilities as they fall due. All inter-company loans are therefore classed as falling due within one year. The amounts outstanding as at 30 June 2016 are set out below:
30 June 30 June 31 December
2016 Unaudited 2015 Unaudited 2015
Company GBP'000 GBP'000 GBP'000
----------------------------------------------------- --------------- --------------- -----------
Balances due from/(to) Group companies at the period
end:
Hampden Corporate Member Limited (221) 335 327
Nameco (No. 365) Limited (40) 50 (5)
Nameco (No. 605) Limited (281) (118) (4)
Nameco (No. 321) Limited (40) (35) 9
Nameco (No. 917) Limited 2,357 221 1,451
Nameco (No. 229) Limited 12 13 58
Nameco (No. 518) Limited (47) (33) 14
Nameco (No. 804) Limited (99) 99 274
Halperin Underwriting Limited (55) (48) 32
Bernul Limited (59) (33) 47
Dumasco Limited (183) (24) 177
Nameco (No. 311) Limited (69) (181) 37
Nameco (No. 402) Limited (220) (241) (104)
Updown Underwriting Limited 540 (197) 713 Nameco (No. 507) Limited (56) - 660 Nameco (No. 76) Limited 12 - 393 Kempton Underwriting Limited 188 - 573 Devon Underwriting Limited (113) - - Nameco (No 346) Limited (892) - - Nomina No 035 LLP - - - Nomina No 342 LLP - - - Nomina No 380 LLP - - - Nomina No 372 LLP - - - Helios UTG Partner Limited 107 1,776 553 ----------------------------------------------------- --------------- --------------- ----------- Total (note 15) 841 1,584 5,205 ----------------------------------------------------- --------------- --------------- -----------
Helios Underwriting plc and its subsidiaries have entered into a management agreement with Nomina plc. Jeremy Evans, a Director of Helios Underwriting plc and its subsidiary companies, is also a Director of Nomina plc. Under the agreement, Nomina plc provides management and administration, financial, tax and accounting services to the Group for an annual fee of GBP142,000 (2015: GBP112,000).
The Limited Liability Vehicles have entered into a members' agent agreement with Hampden Agencies Limited. Jeremy Evans, a Director of Helios Underwriting plc and its subsidiary companies, is also a director of Hampden Capital plc, which controls Hampden Agencies Limited. Under the agreement, the Limited Liability Vehicles will pay Hampden Agencies Limited a fee based on a fixed amount, which will vary depending upon the number of syndicates the Limited Liability Vehicles underwrite on a bespoke basis, and a variable amount depending on the level of underwriting through the members' agent pooling arrangements. In addition, the Limited Liability Vehicles will pay profit commission on a sliding scale from 1% of the net profit up to a maximum of 10%. The total fees payable for 2016 are set out below:
30 June 30 June 31 December
2016 Unaudited 2015 Unaudited 2015
Company GBP'000 GBP'000 GBP'000
--------------------------------- --------------- --------------- -----------
Hampden Corporate Member Limited 34 43 43
Nameco (No. 365) Limited 7 11 11
Nameco (No. 605) Limited 34 36 36
Nameco (No. 321) Limited 10 14 13
Nameco (No. 917) Limited 121 7 7
Nameco (No. 229) Limited 9 10 10
Nameco (No. 518) Limited 13 18 18
Nameco (No. 804) Limited 23 32 32
Halperin Underwriting Limited - 14 14
Bernul Limited - 9 9
Dumasco Limited - - -
Nameco (No. 311) Limited 12 17 17
Nameco (No. 402) Limited 12 18 18
Updown Underwriting Limited - 1 1
Nameco (No. 507) Limited 21 26 26
Nameco (No. 76) Limited 12 - 16
Kempton Underwriting Limited - - 11
Devon Underwriting Limited 9 - -
Nameco (No 346) Limited 51 - -
Nomina No 035 LLP 10 14 14
Nomina No 342 LLP 9 14 14
Nomina No 380 LLP 15 13 13
Nomina No 372 LLP 10 16 16
Helios UTG Partner Limited - - -
--------------------------------- --------------- --------------- -----------
Total 412 313 339
--------------------------------- --------------- --------------- -----------
The Group entered into quota share reinsurance contracts for the 2014, 2015 and 2016 years of account with Hampden Insurance PCC (Guernsey) Limited - Cell 6. The Limited Liability Vehicles' underwriting year of account quota share participations are set out below:
Company or partnership 2014 2015 2016 ------------------------------ ---- ---- ---- Hampden Corporate Member Limited 70% 70% - Nameco (No. 365) Limited 70% 70% - Nameco (No. 605) Limited 70% 70% - Nameco (No. 321) Limited 70% 70% - Nameco (No. 917) Limited 70% 70% 70% Nameco (No. 229) Limited 70% 70% - Nameco (No. 518) Limited 70% 70% - Nameco (No. 804) Limited 70% 70% - Halperin Underwriting Limited 70% 70% - Bernul Limited 70% 70% - Dumasco Limited - - - Nameco (No. 311) Limited - 70% - Nameco (No. 402) Limited - 70% - Updown Underwriting Limited - 70% - Nameco (No. 507) Limited - - - Nameco (No. 76) Limited - - - Kempton Underwriting Limited - - - Devon Underwriting Limited - - 70% Nameco (No. 346) Limited - - 70% Helios UTG Partner Limited - - - Nomina No 035 LLP 70% 70% - Nomina No 342 LLP 70% 70% - Nomina No 380 LLP 70% 70% - Nomina No 372 LLP 70% 70% - ------------------------------ ---- ---- ----
Nigel Hanbury, a Director of Helios Underwriting plc and its subsidiary companies, is also a director and majority shareholder in Hampden Insurance Guernsey PCC Limited - Cell 6. Hampden Capital plc, a substantial shareholder in Helios Underwriting plc, is also a substantial shareholder in Hampden Insurance Guernsey PCC Limited - Cell 6. Under the agreement, the Group accrued a net reinsurance premium payable of GBP1,768,000 (2015: GBP1,541,000) during the period.
14. Ultimate controlling party
The Directors consider that the Group has no ultimate controlling party.
15. Syndicate participations
The syndicates and members' agent pooling arrangements ("MAPA") in which the Company's subsidiaries participate as corporate members of Lloyd's are as follows:
Allocated capacity per year
of account
--------- -------------------------------------- ----------------------------------------------
Syndicate
or MAPA 2016* 2015* 2014* 2013
number Managing or members' agent GBP GBP GBP GBP
--------- -------------------------------------- ---------- ---------- ---------- ----------
33 Hiscox Syndicates Limited 2,757,244 2,563,464 2,413,044 1,182,895
218 ERS Syndicate Management Limited 1,313,279 1,216,951 1,457,074 824,028
308 Tokio Marine Kiln Syndicates Limited 100,000 184,528 244,528 -
386 QBE Underwriting Limited 800,289 711,365 729,313 347,509
510 Tokio Marine Kiln Syndicates Limited 5,030,389 4,755,942 4,422,296 2,688,563
557 Tokio Marine Kiln Syndicates Limited 575,567 553,433 543,871 301,001
609 Atrium Underwriters Limited 3,069,913 2,846,566 2,685,423 1,279,982
623 Beazley Furlonge Limited 3,919,673 3,238,987 3,188,218 1,431,928
727 S A Meacock & Company Limited 959,404 932,005 879,582 539,378
958 Canopius Managing Agents Limited - 268,646 721,004 553,663
1176 Chaucer Syndicates Limited 551,376 456,986 422,886 356,992
1200 Argo Managing Agency Limited 170,411 233,819 298,071 157,370
1729 Asta Managing Agency Limited 42,000 103,758 139,443 -
1884 Charles Taylor Managing Agency Limited - 25,000 - -
1910 Asta Managing Agency Limited 1,177,236 - - -
1991 R&Q Managing Agency Limited - 60,000 80,001 -
2010 Cathedral Underwriting Limited 844,831 765,756 788,022 527,247
2014 Pembroke Managing Agency Limited 1,450,000 1,417,938 1,427,152 -
2121 Argenta Syndicate Management Limited - 260,341 160,341 120,309
2525 Asta Managing Agency Limited 171,414 134,698 116,690 20,000
2791 Managing Agency Partners Limited 3,796,944 3,592,198 3,818,945 2,646,342 4444 Canopius Managing Agents Limited 101,429 - - - 5820 ANV Syndicates Limited 109,479 269,738 329,738 224,170 6103 Managing Agency Partners Limited 253,649 1,157,998 1,206,224 611,224 6104 Hiscox Syndicates Limited 1,154,675 226,476 562,334 550,173 6105 Ark Syndicate Management Limited - 611,146 590,814 115,296 6106 Amlin Underwriting Limited - - - 361,805 6107 Beazley Furlonge Limited 413,737 413,737 413,737 32,500 6110 Pembroke Managing Agency Limited - - - 1,072,507 6111 Catlin Underwriting Agencies Limited 1,818,311 1,583,657 1,522,247 775,544 6113 Barbican Managing Agency Limited - - 145,528 67,328 6117 Asta Managing Agency Limited 1,765,271 872,296 1,314,198 - 7200 Members' agent pooling arrangement - 172,250 330,362 533,338 7201 Members' agent pooling arrangement - 881,178 1,684,730 2,721,724 7202 Members' agent pooling arrangement - 308,463 600,114 969,860 7203 Members' agent pooling arrangement - 121,426 175,290 206,643 7211 Members' agent pooling arrangement - 101,070 793,460 5,545,063 7217 Members' agent pooling arrangement 241,878 229,149 203,691 177,460 7227 Members' agent pooling arrangement 72,159 38,485 - - --------- -------------------------------------- ---------- ---------- ---------- ---------- Total 32,660,558 31,309,450 34,408,371 26,941,842 --------- -------------------------------------- ---------- ---------- ---------- ----------
* Including the new acquisitions in 2016.
16. Group-owned net assets
The Group statement of financial position includes the following assets and liabilities held by the syndicates on which the Group participates. These assets are subject to trust deeds for the benefit of the relevant syndicates' insurance creditors. The table below shows the split of the statement of financial position between Group and syndicate assets and liabilities:
30 June 2016 Restated 30 June 2015 31 December 2015
------------------------- ----------------------------- ----------------------------- -----------------------------
Group Syndicate Total Group Syndicate Total Group Syndicate Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------- -------- --------- -------- -------- --------- -------- -------- --------- --------
Assets
Intangible assets 10,907 - 10,907 7,942 - 7,942 8,511 - 8,511
Reinsurance assets:
- reinsurers' share of
claims outstanding - 7,689 7,689 - 4,851 4,851 - 5,657 5,657
- reinsurers' share of
unearned premium - 3,527 3,527 - 2,278 2,278 - 1,501 1,501
Other receivables,
including
insurance and
reinsurance
receivables 1,178 27,401 28,579 1,245 17,795 19,040 1,216 19,211 20,427
Prepayments and accrued
income 126 4,492 4,618 13 3,101 3,114 15 3,055 3,070
Financial assets at fair
value through profit or
loss 5,717 32,287 38,004 2,723 22,665 25,388 4,644 27,153 31,797
Cash and cash equivalents 2,212 3,456 5,668 2,752 2,375 5,127 2,223 1,411 3,634
------------------------- -------- --------- -------- -------- --------- -------- -------- --------- --------
Total assets 20,140 78,852 98,992 14,675 53,065 67,740 16,609 57,988 74,597
------------------------- -------- --------- -------- -------- --------- -------- -------- --------- --------
Liabilities
Insurance liabilities:
- claims outstanding - 43,060 43,060 - 28,258 28,258 - 32,985 32,985
- unearned premium - 18,054 18,054 - 12,368 12,368 - 11,169 11,169
Deferred income tax
liabilities 3,002 - 3,002 2,546 - 2,546 3,172 - 3,172
Other payables, including
insurance and
reinsurance
payables 965 12,983 13,948 1,069 8,583 9,652 1,585 7,774 9,360
Accruals and deferred
income 3,757 387 4,144 1,204 448 1,652 1,577 (89) 1,488
------------------------- -------- --------- -------- -------- --------- -------- -------- --------- --------
Total liabilities 7,724 74,484 82,208 4,819 49,657 54,476 6,334 51,839 58,174
------------------------- -------- --------- -------- -------- --------- -------- -------- --------- --------
Equity attributable to
owners of the Parent
Share capital 1,050 - 1,050 896 - 896 1,050 - 1,050
Share premium 9,901 - 9,901 7,556 - 7,556 9,902 - 9,901
Other reserves 337 - 337 - - - - 121 121
Retained earnings 1,128 4,368 5,496 1,403 3,409 4,812 (677) 6,028 5,351
------------------------- -------- --------- -------- -------- --------- -------- -------- --------- --------
Total equity 12,416 4,368 16,784 9,855 3,409 13,264 10,274 6,149 16,424
------------------------- -------- --------- -------- -------- --------- -------- -------- --------- --------
Total liabilities and
equity 20,140 78,852 98,992 14,674 53,066 67,740 16,609 57,988 74,597
------------------------- -------- --------- -------- -------- --------- -------- -------- --------- --------
16. Events after the financial reporting period
A dividend of 5.0p per share was agreed at the AGM and has been accrued at the period end. The dividend payment was settled on 6(th) July 2016.
A placing of new ordinary shares in the Company is being announced on 30(th) September 2016 expected to raise up to approximately GBP5m (net), together with a proposed open offer of new ordinary shares to shareholders to raise up to a further GBP3.2 million.
Independent Review Report to Helios Underwriting plc for the six months ended 30 June 2016
Introduction
We have been engaged by the Company to review the condensed consolidated interim financial information in the half yearly financial report for the six months ended 30 June 2016 which comprises the condensed consolidated income statement, condensed consolidated statement of financial position, condensed consolidated statement of cash flows, condensed consolidated statement of changes in shareholder' equity and related notes. We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed consolidated interim financial information.
Directors' Responsibilities
The half yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with International Accounting Standard 34 "Interim Financial Reporting" ("IAS 34"), as adopted by the European Union and the AIM Rules for Companies. The annual Financial Statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed consolidated interim financial information included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed consolidated interim financial information in the half yearly financial report based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of the AIM Rules for Companies and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Scope of review
We conducted our review in accordance with the International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial information in the half yearly financial report for the six months ended 30 June 2016 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the AIM Rules for Companies.
PKF Littlejohn LLP
Chartered Accountants
1 Westferry Circus
Canary Wharf
London E14 4HD
29 September 2016
The Interim Report will be made available in electronic format on the Company's website, www.huwplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BBLBXQKFFBBE
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September 30, 2016 02:02 ET (06:02 GMT)
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