2023 Helios Retained Capacity Update

RNS Number : 1574M

Helios Underwriting Plc

10 January 2023

 

10th January 2023

Helios Underwriting plc

("Helios" or the "Company")

2023 Helios Retained Capacity Update

Portfolio increased by 27% year-on-year to £297 million

Helios, the unique investment vehicle that acquires and consolidates underwriting capacity at Lloyds', announces an update on the Company's capacity to be underwritten for 2023.

 Nigel Hanbury, Chief Executive of Helios, commented:

"I am delighted that the retained capacity underwritten by Helios shareholders will have significantly increased for another successive underwriting year to £238m. Market discipline remains strong and we are confident that 2023 will offer superior returns. The Jan uary renewals supports this with significant pricing improvement and market dislocation in the reinsurance and retro markets respectively. Rating indices across most lines are at or above our underwriting requirements and the Board is confident the Company is well positioned to maximise market opportunities ."

Capacity Update

Helios announces that the retained underwriting capacity for the 2023 year of account will be £238m, a near 40% increase in the capacity underwritten since the start of 2022.  The overall portfolio , including the capacity reinsured , has increased to £297m, adding more than 27% to the size of the portfolio since the 1 ^st January 2022.

Helios - 2023 Year of Account Capacity
£m	Retained	Reinsured	Total
Capacity as at 1st January 2023	238.3	58.3	296.6
Capacity as at 1st January 2022	171.1	61.6	232.7
% change - Increase/(Decrease)	39%	(5)%	27%

The prospects for underwriting profitability and higher investment returns have improved considerably and the Board believes this substantial increase in the retained capacity will significantly benefit the Company's shareholders for 2023 onwards.  

The analysis of this increase in the Helios portfolio is as follows:

				Capacity
				£m
Capacity at 1st January 2021 for 2022 YOA				232.7
Capacity acquired in 2022 for 2023 YOA				5.7
Pre-emption capacity				36.0
Disposal of capacity in the capacity auction				(16.7)
Additions to Tenancy Capacity				38.9
Capacity as at 1st January 2023 for 2023 YOA				296.6

Helios has and continues to support both new and well established syndicates that offer capacity for a limited period only, referred to as Tenancy Capacity, and Helios expects to support these syndicates in the longer term. 

Helios acquired three LLVs in 2022 adding £5.7m of capacity to the 2022 year of account and increased the retained capacity for all three open years of account.

The split of capacity between retained and reinsured for the current open years of account is currently as follows:

Retained Capacity 2020 to 2023 Years of Account
	2020	2021	2022	2023
	£m	£m	£m	£m
Capacity - Position as at 1st Jan uary 2022	66.5	93.4	171.1	-
Capacity acquired during 2022	5.6	5.8	5.7	-
Capacity - Expected at 1st Jan uary 2023	72.1	99.2	176.8	238.3

The increased retained capacity on the 2020 to 2022 years of account, substantially "off-risk" for the underwriting years, will contribute to the recognised profits in the future.

Split of Freehold and Leasehold Capacity by Year of Account

As at 1 st January - £m	2022 YOA	2023 YOA
Freehold capacity	144.8	147.3
Tenancy capacity	87.9	149.3
Total capacity	232.7	296.6
Value of capacity Fund	59.8	60.0

For further information please contact:

Helios Underwriting plc

Nigel Hanbury - Chief Executive    [phone] / [e-mail]

Arthur Manners - Chief Financial Officer                  [phone]

Shore Capital (Nomad and Broker)

Robert Finlay                                                                  [phone]

David Coaten

Buchanan (PR)

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 £297m of capacity for the 2023 account. The portfolio provides a good spread of business being concentrated in property & casualty insurance and reinsurance. For further information please visit www.huwplc.com.

 

END

 

 

MSCVKLFBXFLFBBZ