Quarterly Syndicate Mid-Point Forecasts

RNS Number : 2461W

Helios Underwriting Plc

17 August 2020

 

17 ^th August 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 2 ^nd quarter 2020 results.

Nigel Hanbury, Chief Executive, commented :

" As the only listed consolidator of private capital at Lloyd ' s, Helios offers a unique opportunity for growth and income returns from direct exposure to the Lloyd ' s market through targeted acquisitions of the better quality syndicates. We are pleased to report that our strategy is producing results, with an average 5.6% outperformance over the Lloyd ' s market over the last seven years.

The improving market we are experiencing is expected to present significant opportunities to grow Helios and to enhance value for shareholders.

We look forward to the future with confidence."

	2018	2019	2020
	£m	£m	£m
Capacity - Position as at 14th August 2020
Retained	27.6	23.3	21.1
Reinsured	38.2	39.0	49.1
	65.8	62.3	70.2
Mid-point forecast at 31st March 2020	-3.9%	-0.7%
Current mid-point forecast at 30th June 2020	-3.1%	-1.6%
Lloyd's market average	-6.1%	-2.7%
Helios out performance	3.0%	1.1%

Notes

1)  The table above shows the capacity as at 14^th August 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 2nd 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.  Helios has approximately £5m available from facilities provided by its bank and from its stop loss reinsurers to assist in funding of solvency deficits.

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 for the year to 31^st 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 / [e-mail]

Arthur Manners - Chief Financial Officer                                        07754 965 917

Shore Capital

Robert Finlay                                                                                         020 7408 4080

David Coaten 

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.

 

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