Capacity Value Update

RNS Number : 4014S

Helios Underwriting Plc

15 November 2021

 

15^th November 2021

Helios Underwriting plc

 ("Helios" or the "Company")

Capacity Value Update

Helios, the unique investment vehicle which acquires and consolidates underwriting capacity at Lloyd's announces an update on the value of Company's capacity portfolio following the Capacity Auctions at Lloyd's.

 Nigel Hanbury, Chief Executive of Helios, commented:

"I am delighted that the value of the capacity portfolio will increase to £60m with the revaluation of the existing portfolio adding 9.6p to the Tangible Net Asset value per share - a 6.6% increase."

Capacity Value

The value of the capacity fund as at 31 ^st December 202 1 using the weighted average prices of capacity from the 202 1 Lloyd's capacity auctions is expected to increase to £60.2 m ( 31 ^st December 2020: £30.8 m). 

				Capacity	Value of Capacity
				£m	£m
Capacity Value at 31 Dec 2020				110.3	30.8
Capacity expected to be acquired with LLV's in 2021				35.4	18.0
Value of pre-emption capacity				6.3	2.3
Acquisition of capacity in the capacity auction				23.8	2.6
Increase in portfolio value				-	6.5
Capacity Value expected at 31 Dec 2021				175.8	60.2

Impact on Net Asset Value				£m
Value of pre-emption capacity				2.3
Increase in portfolio value				6.5
				8.8
Deferred Tax provision - 25%				(2.2)
Net Increase in Tangible Net Assets				6.6
Number of shares in Issue				69.0
Increase in Net Asset Value per share				9.6p

A summary of the movements in capacity and its value are:

Helios is expecting to acquire 29 LLVs during 2021 with capacity of £35.4m, which was valued at 2021 capacity prices at £18.0 m.   We have completed 19 acquisitions to date, acquiring £22.7m of capacity and the remaining 10 acquisitions are expected to complete shortly.

The syndicates supported by Helios offered free capacity of £6.3m (2020 - £10.7m ) by way of pre-emptions to support the improved underwriting market.  The value of the pre-emptions taken up have increased the value of the portfolio by £2.3m.

Helios continued to manage the capacity portfolio discarding unwanted syndicates and taking positions on syndicat es, in particular syndicate 510 and syndicate 2689, tak ing the total additional capacity acquired at auction to £23.8 m for consideration of £2.6m.

The average price per £ of capacity with valu e after the 2021 auctions was 41p (2020 - 37 p) reflecting the increase in auction prices . 

This increase in the capacity portfolio value of £6.5m, net of a provision for deferred tax, will increase the Tangible Net Asset Value by 9.6p, an increase of 6.6% over the Tangible Net Asset Value of at 30 ^th June 2021 of 146p.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) NO 596/2014.

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

Willis Re Securities (Financial Adviser)

Alastair Rodger                                                                    [phone]

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 £130m of capacity for the 2021 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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