Helios Underwriting Plc Acquisition of Nottus No 51 Limited (6013H)

TIDMHUW

RNS Number : 6013H

Helios Underwriting Plc

09 June 2017

Helios Underwriting plc

('Helios' or the 'Company')

Acquisition of Nottus No 51 Limited

Helios is pleased to announce that, in line with its strategy of increasing underwriting capacity through acquisition, on 8 June, following approval of change of control by Lloyd's of London ("Lloyd's"), it has agreed to acquire Nottus No 51 Limited ('Nottus'), a limited liability member of Lloyd's ('LLV') for a consideration of GBP964,500 in cash.

Information in respect of Nottus

The 2017 underwriting capacity of Nottus is approximately GBP669,000 (this compares with Helios's 2017 capacity of GBP35m prior to this acquisition). Nottus 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 4.0% to the independent valuation of GBP1.0m placed on Nottus by Humphrey's. Nottus is expected to have funds surplus to its current underwriting requirements of over GBP0.60m on completion which Helios will be able to utilise in the future.

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

 
     Nottus          Year of Account 
----------------  -------------------- 
                   2015    2016   2017 
----------------  ------  -----  ----- 
                   GBPm    GBPm   GBPm 
----------------  ------  -----  ----- 
 Retained          0.62    0.63   0.20 
----------------  ------  -----  ----- 
 Reinsured           -      -     0.47 
----------------  ------  -----  ----- 
 Total Capacity    0.62    0.63   0.67 
----------------  ------  -----  ----- 
 

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

Additional information

Nottus is a limited liability member of Lloyd's. In the year ended 31 December 2015, Nottus made a profit before tax of GBP102,674 on gross premiums written of GBP0.55m and its net asset value at that date was GBP0.54m. Underwriting capacity with an estimated market value of GBP0.37m has been included in the transaction.

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

 
  YOA      Nottus                     Forecast of 
          syndicate                 Syndicate profit 
          capacity                  (31 March 2017) 
          (GBP'000) 
------  -----------  -----------  ------------------  ------------- 
                      Mid-point      Mid-point (%)      Range (%) 
                       (GBP'000) 
------  -----------  -----------  ------------------  ------------- 
 2015       619           42             6.78          2.91 - 10.64 
------  -----------  -----------  ------------------  ------------- 
                                                         (2.04) - 
 2016       634           14             2.15              6.34 
------  -----------  -----------  ------------------  ------------- 
 

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 GBP35m 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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June 09, 2017 02:00 ET (06:00 GMT)