Quarterly Syndicate Mid Point Forecasts

RNS Number : 2139V

Helios Underwriting Plc

04 April 2023

 

4^th April 2023 

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 4th quarter 2022 estimates.

Martin Reith, Chief Executive, commented :

"Helios' unique proposition, as the only listed consolidator of private capital at Lloyd's, is well positioned to benefit from the Lloyd's market's recently announced mid point forecasts. Helios has built and curated an outstanding portfolio of the better performing syndicates and, as a consequence of underwriting discipline and judicious capital deployment, we are delighted to see improved underwriting profitability in the Lloyd's market. We expect Helios' portfolio to continue to outperform the market as we have since 2013 for closed years of accounts.

Recognising stronger market conditions, we increased our retained capacity to £238m for the 2023 year of account, an increase of 34%. We remain confident that we shall deliver improved results and superior return on equity underpinned by our favourable Economic Capital Assessment (ECA), and 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		2023
	£m			£m		£m		£m
Capacity - Position as at 30th September 2022
Retained	66.5			93.5		171.9
Reinsured	49.1			51.5		60.8
	115.6			145.0		232.7
Capacity Acquired since 30th September 2022
Retained	5.6			5.8		5.7
Reinsured	0.0			0.0		0.0
	5.6			5.8		5.7
Total capacity as at 31st March 2023
Retained	72.0			99.3		177.6		238.4
Reinsured	49.1			51.5		60.8		58.3
	121.2			150.8		238.4		296.7
Mid-point forecast at 30th September 2022	1.94%			2.29%
Final result / Current mid-point forecast	3.11%			2.37%
Lloyd's Market Average	0.91%			4.20%
Helios out performance	2.20%			(1.83)%

Commentary

The 2020 result showed an improvement over the midpoint forecasts as at 30^th September 2022.  The overall result was impacted by the negative investment returns recognised during the year and the impact from the COVID-19 pandemic.

The development of the mid point estimate for 2021 has been held back by losses from Ukraine that were recognised in 2022.  The improved returns from the investment portfolio should benefit this year before it closes at the end of this year.

The 2022 underwriting year has been impacted by the loss from Hurricane Ian that will create a drag on the earnings recognised in 2022.

The outperformance of 2.2% of the portfolio against the average for the Lloyd's market for 2020 continues the trend of closed year of account outperformance achieved since 2013.

Notes

1)  The table above shows the capacity as at 31^st March 2023, 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 4^th 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

Helios Underwriting plc

Martin Reith - Chief Executive                                                 [phone]

Nigel Hanbury - Executive Deputy Chairman    [phone]

Arthur Manners - Chief Financial Officer                               [phone]

Shore Capital

Robert Finlay [phone]

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 £297m of capacity for the 2023 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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