2025 Capacity Update

Helios Underwriting Plc

18 December 2024

 

Helios Underwriting PLC

("Helios" or the Company)

Helios announces expected 2025 capacity for its Lloyd's syndicate portfolio of £484 million

Highlights:

·    2025 capacity portfolio expected to be c. £484 million

·    Helios retained capacity estimated to be c. £327 million

·    Increase in Third Party capacity to c. £157 million (2024 £115.5 million)

·    Material reduction in 2025 cost base

·    Net Asset Value as at 30^th September 2024 of £2.06p

Helios Underwriting, the only publicly traded company offering instant access to a diverse portfolio of syndicates at Lloyd's of London, has arranged a diversified portfolio of syndicates for the 2025 Year of Account with an overall capacity of £484m (2024: £512m).  

The new capacity reflects strategic adjustments, following trading at the 2024 auctions and other acquisitions. The retained Helios share is expected to be c.£327m.

Helios' 2025 portfolio remains well-diversified, balancing growth and stability through careful allocation across syndicates, geographies and classes. With 82% of the portfolio consisting of established syndicates, the Helios portfolio strikes a balance between stability and an attractive pipeline of profits and growth potential.

Michael Wade, Interim Executive Chairman, commented: "Today's announcement of our estimated 2025 portfolio capacity of £484m underlines our status as a leading, active Lloyd's syndicate portfolio manager.  While pricing adequacy within the Lloyd's market remains generally strong we have worked hard to finetune the portfolio's class of business mix, with lower exposure to new syndicates. By collaborating with top-performing syndicates and maintaining a proactive approach, Helios is well positioned to deliver strong results and sustained value in 2025. We head into 2025 confident of our high quality, diversified portfolio and its attractive profit pipeline.

"The expected profitability for the 2022, 2023 and 2024 open Years of Account remains encouraging with welcome profit distributions ahead for Helios; the Board will review its dividend policy as Lloyd's syndicate profits become available.

"As previously announced, Helios has successfully taken steps to reduce its gearing to capital and underwriting risk in 2025. Additionally, the overall cost base for 2025 is projected to reduce materially.

"The Board will continue to review the strategic direction for Helios in 2025 in the interests of maximising long-term value for shareholders. The Board of Helios take this opportunity to thank all  shareholders for their continued support."

Helios - 2025 Year of Account Capacity
£m	Retained	Third Party	Total
2025 Year of Account	326.8	157.3	484.1
2024 Year of Account Capacity	396.6	115.5	512.1
% Change 2024 to 2025	-18%	36%	-5%

Helios has continued with its strategic direction to build the hybrid fee earning model by increasing, by 36%, the capacity allocated to Third Party capital providers who participate on a pro rata basis alongside Helios itself.  This includes the renewal of the existing quota share reinsurance for the 2025 Year of Account, which covers all the syndicates in the portfolio.

The 2025 specialist insurance market presented both challenges and opportunities in syndicate selection. Many classes reached an inflection point, with some softening while others showed robust growth potential. However, pricing adequacy remains generally strong.

By closely monitoring rate adequacy and market conditions, we adjusted allocations, reducing our exposure to US Casualty, which has faced reserve deterioration due to increased court awards, and focusing on Property Reinsurance, which benefited from significant compounded rate increases and improved terms.

Risk management continues to be a core focus, with a slight uptick in natural catastrophe exposure strategically counterbalanced by a reduced Cyber risk allocation. The portfolio's class of business mix has been fine-tuned to align more closely with Lloyd's Market benchmarks.

By collaborating with top-performing syndicates and maintaining a proactive approach to market trends, Helios is well-positioned to deliver strong results and sustained value for shareholders in 2025 subject to market events.

The NAV per share as at 30^th September 2024 has increased 8% to £2.06 driven by pipeline profits, a buyback of shares by the Company in July and results of the recent Lloyd's capacity auctions.

Helios has recently completed the purchase of Hyde Park Capital Limited for a consideration of £7.0m in cash compared with the Humphrey Valuation of £8.6m.  The capacity acquired has been included in the Helios portfolio for 2025.

Helios 2025 Lloyd's syndicate Portfolio

	Allocated capacity per year of account
Syndicate	2024 £000	2025 £000
Hiscox 33	15,358	15,108
ERS 218	17,711	19,399
Cincinnati 318	1,082	1,082
QBE 386	3,139	2,889
TMK 510	30,294	15,307
Atrium 609	19,528	18,794
Beazley 623	32,687	28,866
S.A. Meacock 727	2,956	2,956
Chaucer 1176	2,875	2,575
Mosaic 1609		20,000
Volante 1699	5,000	-
Dale 1729	25,118	25,117
Parsyl 1796	7,000	-
MCI 1902	12,636	12,635
Ariel Re 1910	-	20,000
Envelop 1925	12,500	7,500
Arch 1955	20,000	24,640
MCI 2 1966	15,000	12,600
Apollo 1969	25,499	-
Apollo 1971	25,000	25,000
Flux 1985	20,000	12,693
CFC 1988	15,125	-
WDS 1996	9,527	-
Lancashire 2010	7,338	-
ADA 2024	8,522	6,750
Argenta 2121	5,206	5,206
Nephila 2358	20,000	25,000
Agile 2427	15,024	15,000
ASR 2454	5,800	7,500
Secure Liability Solutions 2525	2,612	2,412
HRP 2689	5,477	14,755
MAPL 2791	16,422	16,172
Fidelis 3123	5,000	14,060
NormanMax 3939	12,000	12,000
Beat 4242	15,000	16,523
Canopius 4444	24	-
MIC 5183	1,727	-
Beazley 5623	27,001	26,843
Blenheim 5886	30,833	37,478
MAPL 6103	4,150	4,615
Hiscox 6104	10,000	12,008
Beazley 6107	1,550	-
Ariel Re 6117	391	570
	512,112	484,053

For further information, please contact:

Helios Underwriting PLC

Michael Wade - Interim Executive Chairman

[e-mail]                                     [phone]

Arthur Manners - Chief Financial Officer

[e-mail]                                    [phone]    

Deutsche Numis (Nomad and Broker)                                       

Giles Rolls / Charles Farquhar                                     [phone]

FTI Consulting

 Ed Berry / Nathan Hambrook-Skinner

[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. The portfolio provides a broad spread of business primarily participating in the US and other international wholesale and reinsurance markets. For further information please visit www.huwplc.com.

 

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