REG - Helios Underwriting - Capacity Value Update

Helios UnderwritingAnnouncement

08/11/2023 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:20231108:nRSH7021Sa&default-theme=true

RNS Number : 7021S  Helios Underwriting Plc  08 November 2023

( )

( )

8(th) November 2023

 

Helios Underwriting plc

 ("Helios" or the "Company")

Capacity Value Update

 

Helios, the investment vehicle which provides shareholders with a spread
participation at Lloyd's, announces an update on the value of Company's
capacity portfolio following the Capacity Auctions at Lloyd's.

 

 

Capacity Value

The value of the capacity fund as at 31(st) December 2023 using the weighted
average prices of capacity from the 2023 Lloyd's capacity auctions is expected
to increase to £82.4m (31 December 2022: £60.0m).

 

                                                                             Freehold Capacity                                     Value of Capacity
                                                                             £m                                                    £m
 Capacity Value at 31 Dec 2022                                               147.3                                                 60.0
 Capacity acquired with LLV's in 2023                                        7.4                                                   3.5
 Value of pre-emption capacity                                               14.7                                                  7.0
 Acquisition of  capacity in the capacity auction                            6.5                                                   0.4
 Increase in portfolio value                                                                         -                             11.5
 Capacity Value  expected at 31 Dec 2023                                     175.9                                                 82.4

 

 Anticipated Impact on Net Asset Value                        £m
 Value of pre-emption capacity                                7.0
 Increase in portfolio value                                  11.5
                                                              18.5
 Deferred Tax provision - 25%                                 (4.6)
 Net Increase in Tangible Net Assets                          13.9
 Number of shares in Issue                                    76.5
 Increase in Net Asset Value per share                                         18.2p

 

A summary of the movements in capacity and its value as follows:

 

Helios has acquired 4 LLVs during 2023 with capacity of £8.2m, which was
valued at 2022 capacity prices at £3.5m.

 

The syndicates supported by Helios offered free capacity of £14.7m (2022 -
£21.7m) 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 £7.0m.

 

Helios acquired capacity in the 2023 Auctions on syndicates 2121 and 2689 to
build positions on these syndicates.

 

The average price per £ of capacity with value after the 2023 Auctions was
47p (2022 - 41p) reflecting the increase in auction prices.

 

This increase in the capacity portfolio value of £13.9m, net of a provision
for deferred tax, will increase the Tangible Net Asset Value by 18.2p, an
increase of 11.9% over the Tangible Net Asset Value of at 30(th) June 2023 of
154p.

 

The pro-forma Tangible Net Asset Value per Share as at 30(th) June 2023 of
154p adjusted for the increase in the value of the capacity fund of 18.2p  is
now 172p.

 

The Company expects to publish its updated Net Asset Value as at 30 September
2023 per share in early December 2023.

 

 

Martin Reith, Chief Executive Officer of Helios, commented:

 

"I am delighted that the value of the Freehold Capacity has increased to
£82m, representing an increase in the Net Asset Value per share of 18.2p.
This is an increase of 11.9% over the reported NAV as at 30(th) June 2023, and
demonstrates the strength of our portfolio and acquisition strategy."

 

 

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

Martin Reith - Chief Executive Officer
        +44 (0)20 3965 6441

Nigel Hanbury - Executive Deputy Chairman

Arthur Manners - Chief Financial Officer

 

Deutsche 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 £310.8m 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  MSCBRBPTMTMMBRJ