Helios Underwriting Plc Quarterly Syndicate Mid Point Forecasts (4146M)

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RNS Number : 4146M

Helios Underwriting Plc

23 May 2022

23 May 2022

Helios Underwriting plc

('Helios' or 'the Company')

Quarterly Syndicate Mid Point Forecasts

Helios, the unique investment vehicle which acquires and consolidates private underwriting capacity at Lloyd's, announces the current mid-point forecasts in respect of its portfolio of syndicate capacity for the 2020 and 2021 years of account based on 1st quarter 2022 estimates.

Nigel Hanbury, Chief Executive, commented :

"As the only listed consolidator of private capital at Lloyd's, Helios offers a unique opportunity for growth and returns from exposure to the Lloyd's market through targeted acquisition of the capacity of the better performing syndicates. Over recent years, our strategy has yielded superior results, with returns on average 5.1% better than the Lloyd's market itself.

"We have increased the retained capacity to GBP172m in recognition of market discipline and a harder market. We remain confident that we shall deliver improved results when compared to the Lloyd's market as a whole, and we look forward to creating further shareholder value as the benefits of the larger retained capacity flows to the income statement."

 
                                       Year of Account 
                                2020     2021     2022 
                                GBPm     GBPm     GBPm 
 Capacity - Position as at 
  20(th) May 2022 
 Retained                       66.5     93.5     171.9 
 Reinsured                      49.1     51.5     60.8 
                              -------  --------  ------ 
                               115.6     145.0    232.7 
                              =======  ========  ====== 
 
 Mid-point forecast at 31st 
  December 2021                0.97% 
 Current mid-point forecast    1.01%      1.90% 
 
 Lloyd's Market Average        0.43%      4.20% 
 Helios out performance        0.58%    (2.30%) 
 

Commentary

The mid-point forecast for 2020 year is improving as is the outperformance against Lloyd's. The initial mid-point forecast for 2021 year shows a small profit, a year that has been impacted by a series of catastrophe losses. The improved Lloyd's market result indicates the remediation work that has been undertaken by the syndicates within the lower quartiles of performance. We would expect the gap in relative performance to narrow over the next 18 months as it has done in the past. The syndicates supported by third party capital have been more conservative in their published estimates over the 36 months to the close of the year of account due to the transparency of each syndicates' result.

Notes

1) The table above shows the capacity as at 20th May 2022 splitting the capacity retained by Helios and the capacity that is ceded to quota share reinsurers.

2) The mid-point forecasts for 2020 and 2021 years of account as of 1st quarter 2022 have been aggregated at syndicate level from estimates supplied by Managing Agents.

   3)    The impact on Helios will be as follows: 

a. The change in the mid point estimates on the retained capacity over the year will be recognised in the Helios income statement in the year to 31(st) December 2022.

b. The overall change in the result will be recognised by Helios in cash at the close of the year of account.

For further information, please contact:

Helios Underwriting plc

   Nigel Hanbury - Chief Executive                                                     07787 530 404 / [e-mail] 
   Arthur Manners - Chief Financial Officer                                      07754 965 917 

Shore Capital

Robert Finlay 020 77408 4080

David Coaten

Henry Willcocks

Buchanan

   Helen Tarbet / Henry Wilson / George Beale                              [phone] 

[phone]

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 GBP233m of capacity for the 2022 account. The portfolio provides a good spread of business being concentrated in property insurance and reinsurance. For further information please visit www.huwplc.com.

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May 23, 2022 04:10 ET (08:10 GMT)