Helios Underwriting - Quarterly Syndicate Mid-Point Forecasts
31/05/2023 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230531:nRSe0921Ba&default-theme=true
RNS Number : 0921B Helios Underwriting Plc 31 May 2023
31(st) May
2023
Helios Underwriting plc
('Helios' or 'the Company')
Quarterly Syndicate Mid-Point Forecasts
Indicative underwriting profits of 20p per share to be recognised in the
future
Helios, the investment vehicle which builds shareholder value through exposure
to Lloyd's, announces the current mid-point forecasts in respect of its
portfolio of syndicate capacity for the 2021 and 2022 years of account based
on 1(st) quarter 2023 mid-point estimates.
Martin Reith, Chief Executive, commented:
"Helios' proposition as the investment vehicle which builds shareholder value
through exposure to Lloyd's, is well positioned to benefit from the Lloyd's
market's recently announced mid-point forecasts including the first
announcement in respect of the 2022 year of account. 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
especially for the 2022 underwriting year.
The initial mid-point profit forecast for 2022 of 5.7% of capacity recognises
the stronger market conditions. This, compounded by Helios' increased retained
capacity, £177m for the 2022 year of account, results in the recognition of
additional after tax underwriting profits to be earned of 20p per share in the
future.
2021 2022 2023
£m £m £m
Total capacity as at 30(th) May 2023
Retained 99.3 177.6 238.4
Reinsured 51.5 60.8 58.3
150.8 238.4 296.7
Mid-point forecast at 31st December 2022 2.4% 0.0%
Current mid-point forecast 3.9% 5.7%
£m
After tax retained underwriting losses earned to 31/12/2022 for 2021 & (4.8)
2022 underwriting years
Indicative after tax retained underwriting profits from mid-point estimates 10.5
After tax retained underwriting profits to be earned 15.3
Potential increase in Net Tangible Asset Value per share - pence 20p
Current Net Tangible Asset Value per share 152p
Commentary
The 2021 mid-point estimate continues to improve partially as the investment
returns on syndicate assets are expected to improve substantially.
The 2022 initial mid-point forecast at 5.7% profit on capacity, after the
impact of the loss from Hurricane Ian, will make a significant contribution to
the earned underwriting profits in the future as this underwriting year
recognised a loss in the first 12 months of 4.0%.
The future retained after tax underwriting profits that are currently expected
to be recognised over the next two years could increase the NTA per share by
20p to 172p per share.
Notes
1) The table above shows the capacity as at 30(th) May 2023, splitting
the capacity retained by Helios and the capacity that is ceded to quota share
reinsurers.
2) The mid-point forecasts for 2021 and 2022 years of account as at
1(st) quarter 2023 have been aggregated at syndicate level from estimates
supplied by Managing Agents.
3) The potential increase in net tangible asset value per share could be
impacted by future underwriting losses, operating and reinsurance costs.
4) The impact on Helios will be as follows:
a. The underwriting profits to be recognised after 1 January 2023 on the
retained capacity from the indications provided by the mid-point forecasts
will be earned in calendar years 2023 and 2024.
b. The overall change in the syndicate results 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
+44(0)7720 292 505
Nigel Hanbury - Executive Deputy Chairman
+44(0)7787 530 404
Arthur Manners - Chief Financial
Officer
+44(0)7754 965 917
Numis (Nomad and Broker)
Giles Rolls / Charles
Farquhar
+44 (0)20 7260 1000
Buchanan (PR)
Helen Tarbet / George Beale
+44 (0)7872 604 453
+44 (0)20 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 £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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END UPDWPUPUAUPWPGU