19th November 2020
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 2018 and 2019 years of account based on 3rd quarter 2020 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 acquisitions of the better quality syndicates. Our strategy is bringing results, with returns on average 5.7% better than the Lloyd's market itself over the last seven years of account.
"Looking ahead, we see attractive near-term opportunities to continue to build our core portfolio of capacity, to increase the capacity retained by Helios and achieve outperformance against the Lloyd's market as whole.
"We look forward to the future with confidence."
|
|
Year of Account
|
|
|
|
2018
|
2019
|
2020
|
|
|
|
£m
|
£m
|
£m
|
|
|
Capacity - Position as at 16 November 2020
|
|
|
|
|
|
Retained
|
27.6
|
23.3
|
21.1
|
|
|
Reinsured
|
38.2
|
39.0
|
49.1
|
|
|
|
65.8
|
62.2
|
70.2
|
|
|
|
|
|
|
|
|
Mid-point forecast at 30th June 2020
|
-3.1%
|
-1.6%
|
|
|
|
Current mid-point forecast
|
-2.1%
|
-2.6%
|
|
|
|
|
|
|
|
|
|
Lloyd's market average
|
-5.5%
|
-4.1%
|
|
|
|
Helios out performance
|
3.4%
|
1.5%
|
|
|
|
|
|
|
|
|
Notes
1) The table above shows the capacity as at 16 November 2020 splitting the capacity retained by Helios and the capacity that is ceded to quota share reinsurers.
2) The mid-point forecasts for 2018 and 2019 years of account as of 3rd quarter 2020 have been aggregated at syndicate level from estimates supplied by Managing Agents.
3) The 2019 mid-point estimates have deteriorated as further losses arising from the COVID-19 pandemic are recognised.
4) 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 31st December 2020.
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 / nigel.hanbury@huwplc.com
Arthur Manners - Chief Financial Officer 07754 965 917
Shore Capital
Robert Finlay 020 7408 4080
David Coaten
Henry Willcocks
Buchanan
Helen Tarbet / Henry Wilson / George Beale 07872 604 453
020 7466 5111
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 £70m of capacity for the 2020 account. The portfolio provides a good spread of business being concentrated in property insurance and reinsurance. For further information please visit www.huwplc.com.
