REG - Helios Underwriting - Half Year Results
27/09/2024 07:00
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RNS Number : 9025F Helios Underwriting Plc 27 September 2024
Helios Underwriting plc
Helios Underwriting Interim results announcement 2024
Portfolio continues to benefit from outstanding Lloyd's market conditions
Helios Underwriting ('Helios' or the 'Company'), the only publicly traded
company offering instant access to a diverse portfolio of syndicates at
Lloyd's of London, the world's largest insurance market, is pleased to
announce its interim financial results for the half year ended 30 June 2024.
The Lloyd's Market continues to report excellent performance and the outlook
for 2025 is also positive. Consequently, Helios will benefit from its
outstanding pipeline profits generated from its spread Lloyd's syndicate
portfolio.
2024 interim results: key financial highlights
· Gross written premiums increased by 45% to £230m (HY 2023 -
£159m) reflecting the increase in the capacity portfolio
· Further rate increase achieved by the Lloyd's market of 1.5% (HY
2023 9.1%) over the six-month period continuing the excellent market
conditions at Lloyd's.
· Similar underwriting result of £10.8m (HY 2023- £11.6m) with an
92% combined ratio
· Proforma combined ratio of 88% having stripped out the impact of
the growth of the portfolio
· An increase of 62% (2023 33%) in the retained capacity and
underwriting exposure for the 2024 Year of Account to £397m (2023 - £245m)
and this will contribute to the underwriting result in the future.
· Group investment returns of £2.7m (HY 2023 - £0.0m) have been
booked in the first six months benefiting from the higher yields seen since
2023
· Operating profit of £6.5m (HY 2023 - £6.0m)
· Capital returned to shareholders of 12p per share (FY 2023 - 7p
per share)
· Net asset value per share is £1.91 per share as at June (FY 2023
- £1.89 per share)
Executive Chairman, Michael Wade, commented: "The Lloyd's market is
experiencing exceptionally good market conditions, as increased underwriting
discipline combines with strong growth and sustainable price increases.
Helios' financial performance so far this year reflects the strength of our
proposition as well as the overall health of the Lloyd's market.
"In the first half of the year, we have expanded our retained Lloyd's
syndicate capacity participation to £397m, whilst cash levels remain strong
at £35m. We remain confident that our spread Lloyd's syndicate portfolio
strategy will continue to generate attractive returns for shareholders.
"This year we were also delighted to welcome John Chambers and Katie Wade to
our Board as Independent Non-Executive Directors, both of whom bring different
backgrounds and perspectives that will expand the breadth and depth of
expertise of the Board.
"We remain satisfied with our 2024 Lloyd's syndicate portfolio and will be
re-positioning our balance for 2025, reducing new syndicate participations, as
we manage the underwriting cycle. We are making good progress in reducing
prospective operational costs and attracting fee earning Third Party capacity
alongside our syndicate participations."
For more information, please contact:
Helios Underwriting plc
Michael Wade - Executive Chairman
Email: Michael.wade@huwplc.com (mailto:Michael.wade@huwplc.com)
Tel: +44 (0) 203 880 7518
Arthur Manners - Chief Financial Officer
Email: Arthur.manners@huwplc.com (mailto:Arthur.manners@huwplc.com)
Tel: +44 (0)203 965 6441
Deutsche Numis (Nomad and
Broker)
Giles Rolls / Charles
Farquhar
+44 (0)20 7260 1000
FTI Consulting
Ed Berry / Nathan Hambrook-Skinner
+44 (0)7703 330 199 / +44 (0)7977 817 092
Interim Results
Six months ended 30 June 2024
Helios Underwriting plc is the only listed vehicle where investors can own a
share in a company which participates across a broad spread of Lloyd's
syndicates and where the Funds at Lloyd's (FAL) ratio is less than 50% meaning
that for every £1 of capital at work it underwrites £2 or more in capacity.
SUMMARY FINANCIAL INFORMATION
6 months to 30 June
2024 2023
£000's £000's
Underwriting result 10,881 11,658
Investment Income - syndicates 5,823 3,160
Net quota share (4,086) (4,378)
Net profits from portfolio 12,618 10,441
Other income 4,644 739
Costs (10,813) (5,146)
Operating profit for the period 6,450 6,034
Profit after tax 5,681 4,351
Earnings per share 7.40p 5.71p
Net Asset Value per Share £1.91 £1.54
Capacity Portfolio Result
The underwriting results remain strong as the underlying profitability of the
growing portfolio continues to be recognised. The improved terms achieved in
the last few years on all lines business and the muted impact of worldwide
natural catastrophes in the period has contributed to the profitability of the
portfolio.
2024 2023 % Chg
£000's £000's
Portfolio capacity 512,084 310,798 65%
Gross premium written 230,495 160,493 44%
Net earned premium 129,965 97,316 34%
Net insurance claims & operating expenses (119,084) (85,658) 39%
Underwriting result 10,881 11,658
Combined ratio 92% 88%
The 44% increase in the gross written premiums reflect the 65% growth of the
capacity portfolio to £512m for the 2024 underwriting year. The earnings
from the increased capacity for 2024 year of account will be a drag on overall
profitability in 2024 due to nature of the recognition of underwriting profits
for an underwriting year. The growth of the capacity portfolio in 2024 has
impacted the combined ratio of 92% by 4% resulting in a proforma net combined
ratio of 88%.
The contribution of the open years of account to the result of the Capacity
Portfolio for the six months to 30th June 2024 is as follows:
2022 and prior 2023 2024 Total
£000's £000's £000's £000's
Portfolio capacity by underwriting year 245,249 310,798 512,112
Gross Underwriting result 1,523 18,569 (9,211) 10,881
Investment Income 3,344 1,809 669 5,822
Portfolio result by underwriting year 4,867 20,378 (8,541) 16,704
Gross result as % of capacity 2.0% 6.6% -1.7%
Helios retained % 75% 79% 78%
Helios share of the portfolio result 3,675 16,048 (7,104) 12,618
The underwriting contribution from the 2022 underwriting years reflects the
expected development of that year. The 2023 underwriting year has made a
significant contribution to the earned profits in the six months reflecting
the larger retained capacity and the expected much improved underwriting
result from that year.
2024 to date represents an initial loss due to the higher proportion of
expenses and reinsurance costs allocated to the first six months of the
underwriting year. The future recognition of the net earned premiums from
2024 year, given the increased underwriting exposure, will benefit the
underwriting result in the future.
The development of the earned profits by year of account is shown below:
As a % of capacity 2022 2023 2024
Portfolio profits / (losses) bought forward 6.5% 2.7% -
Profit profits earned in the 6 months to 30th June 2024 2.0% 6.6% -1.7%
Cumulative profits earned to date 8.5% 9.3% -1.7%
Mid-point estimates as at 30th June 2024 9.0% 13.0% -
The development of the 2022 underwriting year is tracking expectations and the
2023 is showing much improved profitability as a result of the absence of
major catastrophes impacting the year and as the improved pricing is reflected
in the result.
Retained capacity update
Year of Account
£m 2022 2023 2024 CAGR
Retained Capacity 184.5 244.5 397.0 29%
Third Party Capacity 60.8 66.3 115.1 38%
Total Portfolio 245.2 310.8 512.1 44%
The capacity portfolio has been grown by a compound rate of 44% over the last
three years to £512m for the 2024 year of account to take advantage of the
excellent market conditions. The retained capacity providing underwriting
exposure to shareholders has increased to £397m which is expected to form the
bedrock of earnings in the next two years. Helios will continue to act for
and expand its Third Party capital business into 2025 so that fees and
commissions from the Third Party capital providers will increase, particularly
as profits are recognised on the portfolio in the future.
New Syndicate Analysis
The table below shows the development of the new syndicate participations
within the portfolio. Helios has supported syndicates that have been
established recently but the proportion of New Syndicates within the overall
portfolio is expected to reduce in 2025 to below 16% of the overall
portfolio. The categories below are:
· New syndicate - being a new venture providing an opportunity to
participate in portfolios that offer diversification to the existing
established syndicates at Lloyd's. We do not anticipate supporting any new
syndicates that are expecting to commence trading in 2025
· Syndicates trading for less than three years - we would consider
that syndicates that have been trading for less than 3 years to be "new
syndicates". Syndicates that commenced trading in 2024 and 2023 would be
included in this category.
· New syndicate out of an established MGA - we have supported new
syndicates that have transferred an underwriting portfolio with a profitable
track record as an MGA. The proven profitability of the portfolio to be
underwritten reduces the execution risk of setting up a new syndicate
2023 2024 Pro-forma
2025
New Syndicate 7% 12% 0%
Syndicate trading for less than 3 years 8% 13% 9%
New Syndicate out of established MGA 0% 10% 7%
16% 34% 16%
The Board is currently undertaking a review of the capacity portfolio taking
into account the expected evolution of the insurance underwriting cycle and
expecting to reduce the proportion of the portfolio that is termed as "new
syndicates". A detailed review of the New Syndicates is being undertaken to
establish whether support in the future will be beneficial to the portfolio.
As these new syndicates build their businesses, demonstrate the profitability
of their portfolios, after three years of operation, the Board will no longer
consider them as "new syndicates"
Costs
The costs incurred in the six months to 30(th) June 2024 are as follows:
6 months to 30th June
2024 2023
£000's £000's
Portfolio Stop loss 1,750 1,083
Portfolio financing costs 1,166 1,778
Unsecured Loan Note Interest 2,821 -
Operating costs 5,076 2,285
Total Costs 10,813 5,146
The stop loss premiums have increased in line with the growth of the retained
capacity. The Portfolio Financing costs have reduced as the bank loan of
£15m was repaid in December 2023 although the excess of loss facility remains
in place. $75m of Unsecured Loan Notes were issued in December 2023 to
re-finance existing debt and to provide additional working capital.
Earlier in the year Helios examined the possibility of establishing its own
'follow-only' Lloyd's syndicate although the board ultimately decided against
pursuing it - the non-recurring costs of aborting the project including the
costs of re-organization are contained within these first half results and
have increased the costs by £1m+.
As we look towards to 2025 there will be a sharp reduction in overall costs -
we will provide more details at year end.
Investment Return
£000's £000's Yield
Syndicate investment assets 281,949 5,822 2.06%
Group investment assets 75,511 2,748 3.64%
357,460 8,570 2.41%
Helios's share of the syndicate investments has increased by 54% since 30 June
2023 and has generated a positive return of 2.09% in the first 6 months of the
year. The Group funds are invested in short term bonds and bank deposits the
Group's share of the syndicate investments is expected to continue to increase
to reflect the growth of the capacity portfolio.
Capital Position as at 30(th) June 2024
Underwriting capital 30 June 2024 31 December 2023
£m £m
Third Party Capital 31.5 31.3
Excess of loss funds at Lloyd's 25.9 25.8
Helios own funds 67.2 69.9
Solvency credits 77.1 47.0
Total 201.7 173.7
Total Portfolio 512.1 310.8
Capacity supported by Third Party members (51.7) -
Total Helios Capacity 460.4 310.8
Economic capital requirement 167.3 128.6
Capital Ratio 36.2% 41%
Surplus Capital 34.3 1.6
The total capacity for the purpose of determining the capital requirements of
Helios excludes the part of the capacity allocated to Third Party Capital. The
improvement in the Solvency position of the capacity portfolio, increasing the
solvency credits to £77m as profits have been recognized within the supported
syndicates of which £47m is currently being used to support the underwriting.
.
Net asset value per share
The growth in the net asset value per share remains a key management metric
for determining growth in value to shareholders.
30 June 2024 31 December 2023
£'000 £'000
Net assets 58,309 57,984
Fair value and capacity (WAV) 82,436 82,436
Total net assets 140,553 140,101
Shares in issue 73,727 74,186
Net asset value per share (£) 1.91 1.89
The net asset value per share is £1.91p per share (Dec 2023 - £1.89p per
share) having paid a dividend of 6p per share. The net assets include a
deferred tax provision of £20m on the value of the capacity portfolio.
Return of Capital to Shareholders
Helios is committed to returning capital to shareholders. In 2024 capital of
12p per share (7p per share - 2023 has been returned to shareholders, a 70%
increase. The capital has been returned by way of 6p base dividend (2023 -
3p base dividend) and by the repurchase of shares, mostly recently in July
2024.
Return of capital to shareholders
2024 2023
£m Pence per share £m Pence per share
Share buyback 4.5 6 3.2 4
Base 4.5 6 2.3 3
Dividend
Per share (in pence) 9 12 5.5 7
The repurchase of 2.5m ordinary shares in July 2024 at £1.50 per share, a
discount of 41p to the net asset value is expected to enhance net asset value
per share at the end of the year.
Financial results summary
Six months ended 30 June 2024
6 months to 30 June 2024 6 months to 30 June 2023
£'000 £'000
Underwriting profits 12,618 10,441
Other Income
Fees from reinsurers 1,151 720
Amortisation of goodwill 169 302
Other income 745 -
Investment income 2,748 19
Total Other Income 4,813 1,041
Costs
Pre-acquisition - (184)
Portfolio stop loss costs (1,750) (1,083)
Portfolio financing costs (1,166) (1,778)
Unsecured loan note interest (2,821) -
Operating costs (5,075) (2,101)
Total Costs (10,812) (5,146)
Operating profit before impairments of goodwill 6,619 6,336
and capacity
Tax (938) (1,985)
Profit for the period 5,681 4,351
Period to 30 June 2024
Underwriting year Helios retained Portfolio Helios
capacity at mid-point profits
30 June 2024 forecasts £'000
£m
2022 184.5 8.99% 3,675
2023 244.5 13.0% 16,048
2024 396.9 N/A (7,105)
12,618
Period to 30 June 2023
Underwriting year Helios retained Portfolio Helios
capacity at mid-point profits
30 June 2023 forecasts £'000
£m
2021 102.3 4.90% 2,346
2022 180.9 5.68% 10,701
2023 234.2 N/A (2,606)
10,441
Financial results summary continued
Six months ended 30 June 2024
Summary Balance Sheet
The summary Group balance sheet excludes items relating to syndicate
participations. See Note 15 for further information.
30 June 2024 31 December 2023
£'000 £'000
31Intangible assets 82,287 61,236
Funds at Lloyd's 75,511 77,297
Other cash 35,517 2,020
Other assets 10,710 6,958
Total assets 204,025 147,511
Deferred tax 22,889 13,921
Borrowings 59,524 15,000
Other liabilities 22,694 7,732
Total liabilities 105,107 36,653
Syndicate equity 41,635 6,292
Total equity 140,553 117,150
Summary cash flow
Analysis of free working capital 30 June 2024 30 June 2023
£'000 £'000
Opening Balance 40,913 10,254
Distribution of profits (net of tax retentions & QS Payments) 7,439 3,091
Transfers from Funds at Lloyd's 32,093 2,508
Other income 931 375
Sale / Purchase of capacity - -
Operating costs (inc Hampden / Nomina fees) (4,031) (2,988)
Reinsurance costs (5,800) (3,408)
Tax - (236)
Return of capital to shareholders (1,010) -
Transfers to Funds at Lloyd's (35,018) (6,067)
Free cash Flow (5,396) (6,725)
Senior debt principal - -
Repayment of Borrowings - -
Proceeds from issue of shares - -
Acquisitions - (1,569)
Net cash flow in the year (5,396) (8,294)
Balance carried forward 35,517 1,960
Asset value calculation 31 December 2023
30 June 2024
£'000
£'000
Net Assets 140,553 140,101
Add Total Debt 59,524 59,055
Add Deferred Tax on Intangible Asset 20,136 20,136
Asset Value 220,213 219,293
Debt ratio 27% 27%
Net asset per share
Net assets 31 December 2023
30 June 2024
£'000
£'000
Net assets 58,117 57,665
Fair value of capacity ("WAV") 82,436 82,436
140,553 140,100
Shares in issue - on the market 73,690 74,186
Shares in issue - total of on the market and JSOP shares 76,228 75,286
Net asset value per share £ - on the market 1.91 1.89
Net asset value per share £ - on the market and JSOP shares 1.84 1.86
Interim condensed consolidated statement of comprehensive income
Six months ended 30 June 2024
Note 6 months ended 6 months ended
30 June 2024 30 June 2023
Unaudited Unaudited
£'000
£'000
Technical account
Gross premium written 4 230,495 158,509
Reinsurance premium ceded 4 (65,750) (49,587)
Net premium written 4 164,745 108,922
Change in unearned gross premium provision 5 (67,401) (34,899)
Change in unearned reinsurance premium provision 5 25,622 15,782
Net change in unearned premium and reinsurance provision 5 (41,779) (19,117)
Net earned premium 3,4 122,966 89,805
Net investment income 6 8,136 3,121
Other underwriting income 1,538 720
Total technical income 132,640 93,646
Gross claims paid (52,781) (42,895)
Reinsurers' share of gross claims paid 12,696 10,437
Claims paid, net of reinsurance (40,085) (32,458)
Change in provision for gross claims 5 (34,889) (15,696)
Reinsurers' share of change in provision for gross claims 5 6,855 (1,953)
Net change in provision for claims 5 (28,034) (17,649)
Net insurance claims incurred and loss adjustment expenses (68,119) (50,107)
Expenses incurred in insurance activities (51,655) (34,969)
Total technical account 12,866 8,570
Non-technical account
Net investment income 6 434 20
Other income 359 -
Other operating expenses (7,209) (2,556)
Total non-technical account (6,416) (2,536)
Operating profit before impairments of goodwill and capacity 6,450 6,034
Amortisation of goodwill 169 302
Profit before tax 6,619 6,336
Income tax charge 7 (938) (1,985)
Profit for the period 5,681 4,351
Other comprehensive income
Revaluation of syndicate capacity - -
Deferred tax relating to the components of other comprehensive income - -
Other comprehensive income for the period, net of tax - -
Total comprehensive income for the period 5,681 4,351
Profit for the year attributable to owners of the Parent 5,681 4,351
Total comprehensive income for the period attributable to owners of the Parent 5,681 4,351
Profit per share attributable to owners of the Parent
Basic 8 7.71p 5.71p
Diluted 8 7.40p 5.55p
The profit attributable to owners of the Parent and earnings per share set out
above are in respect of continuing operations.
The notes are an integral part of these Financial Statements.
Interim condensed consolidated statement of financial position
Six months ended 30 June 2024
Note At 30 June 31 December
2024 2023
Unaudited Audited
£'000 £'000
Assets
Intangible assets:
- Capacity 82,436 82,436
- Goodwill 246 348
- Negative goodwill (395) (667)
Financial assets at fair value through profit or loss 357,460 288,198
Reinsurance assets:
- reinsurers' share of claims outstanding 5 110,669 83,008
- reinsurers' share of unearned premium 5 47,670 23,962
Other receivables, including insurance and reinsurance receivables 291,321 172,932
Cash and cash equivalents 81,470 66,812
Prepayments and accrued income 11,376 7,281
Deferred acquisition costs 39,384 32,291
Total assets 1,021,637 756,601
Liabilities
Equity
Equity attributable to owners of the Parent:
Share capital 11 7,795 7,795
Share premium 11 98,596 98,596
Revaluation reserve 11 24,840 24,840
Other reserves - treasury shares (JSOP and LTIP) 11 190 190
Retained earnings 9,132 8,680
Total equity 140,553 140,101
Insurance liabilities:
- claims outstanding 5 401,593 309,188
- unearned premium 5 200,165 143,610
Deferred income tax liabilities 22,889 22,335
Borrowings 59,524 59,055
Other payables, including insurance and reinsurance payables 178,656 70,594
Accruals and deferred income 18,257 11,718
Total liabilities 881,084 616,500
Total liabilities and equity 1,021,637 756,601
The Financial Statements were approved and authorised for issue by the Board
of Directors on 26 September 2024, and were signed on its behalf by:
Arthur Manners
Finance Director
The notes are an integral part of these Financial Statements.
Interim condensed consolidated statement of changes in equity
Six months ended 30 June 2024
Attributable to owners of the Parent
Consolidated Share Share Revaluation reserve Other reserves Retained Total
capital premium £'000 earnings £'000
Note £'000 £'000 £'000
At 1 January 2024 7,795 98,596 24,840 190 8,680 140,101
Total comprehensive income for the period:
Profit for the period - - - - 5,681 5,681
Other comprehensive income, net of tax - - - - - -
Total comprehensive income for the period - - - - 5,681 5,681
Transactions with owners:
Dividends paid 9 - - - - (4,418) (4,418)
Company buy back of shares 11 - - - - (811) (811)
Share issue - - - - - -
Total transactions with owners - - - - (5,229) (5,229)
At 30 June 2024 7,795 98,596 24,840 190 9,132 140,553
At 1 January 2023 7,774 98,268 11,350 (110) (2,163) 115,119
Total comprehensive income for the period:
Profit for the period - - - - 4,351 4,351
Other comprehensive income, net of tax - - - - - -
Total comprehensive income for the period - - - - 4,351 4,351
Transactions with owners:
Dividends paid 9 - - - - (2,320) (2,320)
Company buy back of shares 11 - - - - - -
Share issue - - - - - -
Total transactions with owners - - - - (2,320) (2,320)
At 30 June 2023 7,774 98,268 11,350 (110) (132) 117,150
The notes are an integral part of these Financial Statements.
Interim condensed consolidated statement of cash flows
Six months ended 30 June 2024
At 30 June 2024 At 30 June 2023
restated
Unaudited Unaudited
£'000 £'000
Cash flows from operating activities
Profit before tax 6,619 6,336
Adjustments for:
- Interest received (518) (227)
- Investment income (6,507) (3,502)
- Interest paid on borrowings 2,822 -
- Amortisation of goodwill (169) (302)
Changes in working capital:
- change in fair value of financial assets held at fair value through profit 80 512
or loss
- Increase in other receivables (129,577) (18,147)
- Increase in other payables 110,183 18,926
- net increase in technical provisions 97,591 27,941
Cash generated from operations 80,524 31,537
Income tax paid/(received) 4 (237)
Net cash inflow from operating activities 80,528 31,300
Cash flows from investing activities
Interest received 518 227
Investment income 6,507 3,502
Increase in financial assets at fair value through profit or loss (69,262) (30,214)
Acquisition of subsidiaries, net of cash acquired - (1,239)
Net cash inflow from investing activities (62,237) (27,724)
Cash flows from financing activities
Net proceeds from issue of ordinary share capital - -
Buy back of ordinary share capital (811) -
Proceeds from borrowings - -
Repayment of borrowings - -
Interest paid on borrowings (2,822) -
Dividends paid to owners of the Parent - -
Net cash outflow from financing activities (3,633) -
Net increase in cash and cash equivalents 14,658 3,576
Cash and cash equivalents at beginning of period 66,812 24,624
Cash and cash equivalents at end of period 81,470 28,200
The 30 June 2023 comparative has been restated to present the changes in
financial assets at fair value through the profit and loss as cashflows from
investing activities.
Analysis of changes in net debt
At 1 January 2024 Cash flows Currency translation At 30 June
2024
£000 £000 £000 £000
Cash at bank and in hand 66,812 14,661 (3) 81,470
Cash and cash equivalents 66,812 14,661 (3) 81,470
Revolving Loan Facility - - - -
Unsecured debt (59,055) - (469) (59,524)
Total 7,757 14,661 (472) 21,946
Cash held within the syndicates' accounts is £45,953,000 (30 June 2023:
£26,240,000) of the total cash and cash equivalents held at the end of the
period £81,470,000 (30 June 2023: £28,200,000). The cash held within the
syndicates' accounts is not available to the Group to meet its day-to-day
working capital requirements.
Cash and cash equivalents comprise cash at bank and in hand.
The notes are an integral part of these Financial Statements.
Notes to the financial statements
Six months ended 30 June 2024
1. General information
The Company is a public limited company quoted on AIM. The Company was
incorporated in England, is domiciled in the UK and its registered office is
1(st) Floor, 33 Cornhill, London EC3V 3ND. The Company participates in
insurance business as an underwriting member at Lloyd's through its subsidiary
undertakings.
These condensed consolidated financial statements do not comprise statutory
accounts within the meaning of section 434 of the Companies Act 2006.
Statutory accounts for the year ended 31 December 2023 were approved by the
board of directors on 29 May 2024 and delivered to the Registrar of Companies.
The report of the auditors on those accounts was unqualified, did not contain
an emphasis of matter paragraph and did not contain any statement under
section 498 of the Companies Act 2006.
2. Accounting policies
Basis of preparation
These Financial Statements have been prepared in accordance with United
Kingdom Accounting Standards (UK GAAP), including FRS 102 "The Financial
Reporting Standard applicable in the UK and Republic of Ireland", FRS 103
"Insurance Contracts", FRS 104 "Interim Financial Reporting", and the
Companies Act 2006 and Schedule 3 of the Large and Medium sized Companies and
Groups (Accounts and Reports) Regulations, relating to insurance.
The Condensed Consolidated Interim Financial Statements are prepared for the
six months ended 30 June 2024.
The Condensed Consolidated Interim Financial Statements for the six months
ended 30 June 2024 and June 2023 are unaudited, but have been subject to
review by the Group's auditors.
The Condensed Consolidated Interim Financial Statements incorporate the
Financial Statements of Helios Underwriting plc, the Parent Company, and its
directly and indirectly held subsidiaries (see note 10).
The underwriting data on which these Condensed Consolidated Interim Financial
Statements are based upon has been supplied by the managing agents of those
syndicates which the Group supports. The data supplied is the 100% figures for
each syndicate. The Group has applied its share of the syndicate
participations to the gross figures to derive its share of the syndicate's
transactions, assets and liabilities.
Going concern
The Group has net assets at the end of the reporting period of £140,553,000
(31 December 2023: £140,101,000).
The Company's subsidiaries participate as underwriting members at Lloyd's on
the 2022, 2023 and 2024 years of account, as well as any prior run-off years,
and they intend to continue this participation in the 2025 year of account.
The Directors have a reasonable expectation that the Group have adequate
resources to meet their underwriting and other operational obligations for the
foreseeable future. Accordingly, they continue to adopt the going concern
basis of accounting in preparing the Financial Statements.
Significant accounting policies
The Condensed Consolidated Interim Financial Statements have been prepared
under the historical cost convention as modified by the revaluation of the
financial assets at fair value through the Statement of Comprehensive Income.
With effect from 31 December 2020, the Group changed this policy so that
syndicate capacity is revalued on a regular basis to its fair value which the
Directors believe to be the average weighted value achieved in the Lloyd's
auction process. The increase in value of syndicate capacity between its fair
value and its cost less impairment is taken to the revaluation reserve through
the statement of other comprehensive income net of any tax effect.
Notes to the financial statements
Six months ended 30 June 2024
3. Segmental information
Michael Wade is the Group's chief operating decision-maker. He determines its
operating segments based on the way the Group is managed, for the purpose of
allocating resources and assessing performance.
The Group has three segments that represent the primary way in which the Group
is managed, as follows:
• syndicate participation;
• investment management; and
• other corporate activities.
At 30 June 2024 Unaudited Syndicate Investment Other Total
participation management corporate £'000
£'000 £'000 activities
£'000
Net earned premium 127,052 - (4,086) 122,966
Net investment income 5,822 2,748 - 8,570
Other income - - 1,897 1,897
Net insurance claims and loss adjustment expenses (68,119) - - (68,119)
Expenses incurred in insurance activities (50,514) - (1,141) (51,655)
Other operating expenses - - (7,209) (7,209)
Amortisation of goodwill - - 169 169
Profit before tax 14,241 2,748 (10,370) 6,619
At 30 June 2023 Unaudited Syndicate Investment Other Total
participation management corporate £'000
£'000 £'000 activities
£'000
Net earned premium 94,183 - (4,378) 89,805
Net investment income 3,160 (19) - 3,141
Other income - - 720 720
Net insurance claims and loss adjustment expenses (50,107) - - (50,107)
Expenses incurred in insurance activities (34,925) - (44) (34.969)
Other operating expenses - - (2,556) (2,556)
Amortisation of goodwill - - 302 302
Profit before tax 12,311 (19) (5,956) 6,336
The Group does not have any geographical segments as it considers all of its
activities to arise from trading within the UK.
No major customers exceed 10% of revenue.
Net earned premium within 2024 other corporate activities totalling
£4,086,000 (2023: £4,378,000 - 2021, 2022 and 2023 years of account)
represents the 2022, 2023 and 2024 years of account net Group quota share
reinsurance premium payable to HIPCC Limited - Cell 6. This net quota share
reinsurance premium payable is included within "reinsurance premium ceded" in
the Consolidated Statement of Comprehensive Income of the period.
Notes to the financial statements
Six months ended 30 June 2024
4. Operating profit before impairments of goodwill and capacity
Underwriting year of account*
At 30 June 2023 2021 and prior - Pre- Corporate Other Total
£'000- 2022 2023 Sub-total acquisition reinsurance corporate £'000
£'000 £'000 £'000 £'000 £'000 £'000
Gross premium written 1,606 25,982 132,905 160,493 (1,984) - - 158,509
Reinsurance ceded (1,410) (4,786) (37,624) (43,820) 542 (4,378) (1,931) (49,587)
Net premium written 196 21,196 95,281 116,673 (1,442) (4,378) (1,931) 108,922
Net earned premium 4,113 68,516 24,687 97,316 (1,202) (4,378) (1,931) 89,805
Other income 1,801 1,165 195 3,161 (39) 720 19 3,861
Net insurance claims and loss adjustment expenses 629 (36,119) (15,244) (50,734) 627 - - (50,107)
Operating expenses (2,768) (19,182) (12,974) (34,924) 430 - (3,031) (37,525)
Operating profit before impairments of goodwill and capacity 3,775 14,380 (3,336) 14,819 (184) (3,658) (4,943) 6,034
Quota share adjustment (1,429) (3,679) 730 (4,378) - 4,378 - -
Operating profit before impairments of goodwill and capacity after quota share 2,346 10,701 (2,606) 10,441 (184) 720 (4,943) 6,034
adjustment
Underwriting year of account*
At 30 June 2024 2022 and prior Pre- Corporate Other Total
£'000 2023 2024 Sub-total acquisition reinsurance corporate £'000
£'000 £'000 £'000 £'000 £'000 £'000
Gross premium written 1,614 37,680 191,201 230,495 - - - 230,495
Reinsurance ceded (318) (4,871) (53,562) (58,751) - (4,086) (2,913) (65,750)
Net premium written 1,296 32,809 137,639 171,744 - (4,086) (2,913) 164,745
Net earned premium 9,627 83,526 36,812 129,965 - (4,086) (2,913) 122,966
Other income 3,344 1,809 670 5,823 - 1,151 3,493 10,467
Net insurance claims and loss adjustment expenses (3,827) (39,201) (25,091) (68,119) - - - (68,119)
Operating expenses (4,277) (25,756) (20,932) (50,965) - - (7,899) (58,864)
Operating profit before impairments of goodwill and capacity 4,867 20,378 (8,541) 16,704 - (2,935) (7,319) 6,450
Quota share adjustment (1,192) (4,330) 1,436 (4,086) - 4,086 - -
Operating profit before impairments of goodwill and capacity after quota share 3,675 16,048 (7,105) 12,618 - 1,151 (7,319) 6,450
adjustment
Pre-acquisition relates to the element of results from the new acquisitions
before they were acquired by the Group.
* The underwriting year of account results represent the Group's share
of the syndicates' results by underwriting year of account before corporate
member level reinsurance and members' agents charges.
Notes to the financial statements continued
Six months ended 30 June 2024
5. Insurance liabilities and reinsurance balances
Movement in claims outstanding
Gross Reinsurance Net
£'000 £'000 £'000
At 1 January 2024 309,188 83,008 226,180
Increase in reserves arising from acquisition of subsidiary undertakings - - -
Movement of reserves 34,889 6,855 28,034
Other movements 57,516 20,806 36,710
At 30 June 2024 401,593 110,669 290,924
Movement in unearned premium
Gross Reinsurance Net
£'000 £'000 £'000
At 1 January 2024 143,610 23,962 119,648
Increase in reserves arising from acquisition of subsidiary undertakings - - -
Movement of reserves 67,401 25,622 41,779
Other movements (10,846) (1,914) (8,932)
At 30 June 2024 200,165 47,670 152,495
Included within other movements are the 2021 and prior years' claims reserves
reinsured into the 2022 year of account on which the Group does not
participate and currency exchange differences.
Movement in claims outstanding
Gross Reinsurance Net
£'000 £'000 £'000
At 1 January 2023 272,015 80,726 191,289
Increase in reserves arising from acquisition of subsidiary undertakings 5,316 1,530 3,786
Movement of reserves 15,696 (1,953) 17,649
Other movements 12,355 9,322 3,033
At 30 June 2023 305,382 89,625 215,757
Movement in unearned premium
Gross Reinsurance Net
£'000 £'000 £'000
At 1 January 2023 114,663 21,333 93,330
Increase in reserves arising from acquisition of subsidiary undertakings 1,690 301 1,388
Movement of reserves 34,899 15,782 19,117
Other movements (15,966) (4,108) (11,857)
At 30 June 2023 135,286 33,308 101,978
Included within other movements are the 2020 and prior years' claims reserves
reinsured into the 2021 year of account on which the Group does not
participate and currency exchange differences.
6. Net investment income
At 30 June 2024 Unaudited At 30 June 2023 Unaudited
£'000 £'000
Investment income 6,507 3,502
Realised (losses)/gains on financial assets at fair value through profit or 1,087 (100)
loss
Unrealised (losses)/gains on financial assets at fair value through profit or (80) (512)
loss
Investment management expenses 538 24
Bank interest 518 227
Net investment income 8,570 3,141
Included within Net investment income is investment income of £8,136,000
(2023: £3,121,000) from Syndicate participations.
Notes to the financial statements continued
Six months ended 30 June 2024
7. Income tax charge
Analysis of tax charge in the period
At 30 June 2024 Unaudited
£'000 At 30 June 2023 Unaudited
£'000
Income tax credit 938 1,985
The income tax expense is recognised based on management's best estimate of
the weighted average annual income tax rate expected for the full financial
year. The estimated average annual tax rate used is 25% (2023: 23.50%).
8. Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to
ordinary shareholders after tax by the weighted average number of ordinary
shares outstanding during the period.
Diluted earnings per share is calculated by dividing the net profit
attributable to ordinary equity holders of the Company by the weighted average
number of ordinary shares outstanding during the period, plus the weighted
average number of ordinary shares that would be issued on the conversion of
all the dilutive potential ordinary shares into ordinary shares.
Earnings per share has been calculated in accordance with IAS 33 "Earnings per
share".
The earnings per share and weighted average number of shares used in the
calculation are set out below:
30 June 2024 Unaudited
At 30 June 2023 Unaudited
Profit for the period after tax attributable to ordinary equity holders of the 5,681,000 4,351,000
parent
Basic - weighted average number of ordinary shares* 73,727,064 76,218,203
Weighted average number of ordinary shares for diluted earnings per share* 76,285,215 77,889,630
Basic earnings/(loss) per share 7.71p 5,71p
Diluted earnings/(loss) per share 7.40p 5.55p
* Diluted loss per share is not permitted to be reduced from the basic loss
per share.
9. Dividends paid or proposed
It was proposed and agreed at the AGM on 29 June 2024 that a dividend of 6p
would be payable. The Dividend was paid post period end on 12 July 2024
totalling £4,418,000 and has been accrued in these financial statements.
10. Investments in subsidiaries
A 30 June At 31 December
2024 2023
£'000 £'000
Total 66,722 66,722
Notes to the financial statements continued
Six months ended 30 June 2024
10. Investments in subsidiaries (continued)
Company or partnership Direct/indirect 2024 2023 Principal activity
interest ownership ownership
Nameco (No. 917) Limited Direct 100% 100% Lloyd's of London corporate vehicle
Nameco (No. 346) Limited Direct 100% 100% Lloyd's of London corporate vehicle
Charmac Underwriting Limited Direct 100% 100% Lloyd's of London corporate vehicle
RBC CEES Trustee Limited(ii) Direct 100% 100% Joint Share Ownership Plan
Chapman Underwriting Limited Direct 100% 100% Lloyd's of London corporate vehicle
Advantage DCP Limited Direct 100% 100% Lloyd's of London corporate vehicle
Romsey Underwriting Limited Direct 100% 100% Lloyd's of London corporate vehicle
Helios UTG Partner Limited(i) Direct 100% 100% Corporate partner
Salviscount LLP Indirect 100% 100% Lloyd's of London corporate vehicle
Inversanda LLP Indirect 100% 100% Lloyd's of London corporate vehicle
Fyshe Underwriting LLP Indirect 100% 100% Lloyd's of London corporate vehicle
Nomina No 505 LLP Indirect 100% 100% Lloyd's of London corporate vehicle
Nomina No 321 LLP Indirect 100% 100% Lloyd's of London corporate vehicle
Nameco (No. 409) Limited Direct 100% 100% Lloyd's of London corporate vehicle
Nameco (No. 1113) Limited Direct 100% 100% Lloyd's of London corporate vehicle
Catbang 926 Limited Direct 100% 100% Lloyd's of London corporate vehicle
Whittle Martin Underwriting Direct 100% 100% Lloyd's of London corporate vehicle
Nameco (No. 408) Limited Direct 100% 100% Lloyd's of London corporate vehicle
Nomina No 084 LLP Indirect 100% 100% Lloyd's of London corporate vehicle
Nameco (No. 510) Limited Direct 100% 100% Lloyd's of London corporate vehicle
Nameco (No. 544) Limited Direct 100% 100% Lloyd's of London corporate vehicle
N J Hanbury Limited Direct 100% 100% Lloyd's of London corporate vehicle
Nameco (No. 1011) Limited Direct 100% 100% Lloyd's of London corporate vehicle
Nameco (No. 1111) Limited Direct 100% 100% Lloyd's of London corporate vehicle
Nomina No 533 LLP Indirect 100% 100% Corporate partner
North Breache Underwriting Limited Direct 100% 100% Lloyd's of London corporate vehicle
G T C Underwriting Limited Direct 100% 100% Lloyd's of London corporate vehicle
Hillnameco Limited Direct 100% 100% Lloyd's of London corporate vehicle
Nameco (No. 2012) Limited Direct 100% 100% Lloyd's of London corporate vehicle
Nameco (No. 1095) Limited Direct 100% 100% Lloyd's of London corporate vehicle
New Filcom Limited Direct 100% 100% Lloyd's of London corporate vehicle
Kemah Lime Street Capital Direct 100% 100% Lloyd's of London corporate vehicle
Nameco (No. 1130) Limited Direct 100% 100% Lloyd's of London corporate vehicle
Nomina No 070 LLP Indirect 100% 100% Corporate partner
Nameco (No. 389) Limited Direct 100% 100% Lloyd's of London corporate vehicle
Nomina No. 469 LLP Indirect 100% 100% Corporate partner
Nomina No. 536 LLP Indirect 100% 100% Corporate partner
Nameco (No. 301) Limited Direct 100% 100% Lloyd's of London corporate vehicle
Nameco (No. 1232) Limited Direct 100% 100% Lloyd's of London corporate vehicle
Shaw Lodge Limited Direct 100% 100% Lloyd's of London corporate vehicle
Queensberry Underwriting Direct 100% 100% Lloyd's of London corporate vehicle
Nomina No 472 LLP Indirect 100% 100% Corporate partner
Nomina No 110 LLP Indirect 100% 100% Corporate partner
Chanterelle Underwriting Limited Direct 100% 100% Lloyd's of London corporate vehicle
Kunduz LLP Indirect 100% 100% Corporate partner
Exalt Underwriting Limited Direct 100% 100% Lloyd's of London corporate vehicle
Nameco (No. 1110) Limited Direct 100% 100% Lloyd's of London corporate vehicle
Clifton 2011 Limited Direct 100% 100% Lloyd's of London corporate vehicle
Nomina No 378 LLP Indirect 100% 100% Corporate partner
Gould Scottish Limited Partnership Indirect 100% 100% Corporate partner
Harris Family UTG Limited Direct 100% 100% Lloyd's of London corporate vehicle
Whitehouse Underwriting Limited Direct 100% 100% Lloyd's of London corporate vehicle
Risk Capital UTG Limited Direct 100% 100% Lloyd's of London corporate vehicle
Nameco (No. 606) Limited Direct 100% 100% Lloyd's of London corporate vehicle
Nameco (No. 1208) Limited Direct 100% 100% Lloyd's of London corporate vehicle
Chorlton Underwriting Limited Direct 100% 100% Lloyd's of London corporate vehicle
Park Farm Underwriting Limited Direct 100% 100% Lloyd's of London corporate vehicle
Helios LLV One Limited Direct 100% 100% Lloyd's of London corporate vehicle
Helios LLV Two Limited Direct 100% 100% Lloyd's of London corporate vehicle
Helios LLV Five Limited Direct 100% 100% Lloyd's of London corporate vehicle
Helios LLV Six Limited Direct 100% 100% Lloyd's of London corporate vehicle
Helios LLV Seven Limited Direct 100% 100% Lloyd's of London corporate vehicle
Helios LLV Eight Limited Direct 100% 100% Lloyd's of London corporate vehicle
Helios LLV Ten LLP Indirect 100% 100% Corporate partner
Notes to the financial statements continued
Six months ended 30 June 2024
10. Investments in subsidiaries (continued)
(i) Helios UTG Partner Limited, a subsidiary of the Company, owns 100%
of Salviscount LLP, Inversanda LLP, Fyshe Underwriting LLP, Nomina No 505 LLP,
Nomina No 321 LLP Nomina No 084 LLP, Nomina No 533 LLP, Nomina No 070 LLP,
Nomina No 469 LLP, Nomina No 536 LLP, Nomina No 472 LLP, Nomina No 110 LLP,
Kunduz LLP. Nomina No 348 LLP and Gould Scottish Limited Partnership. The cost
of acquisition of these LLPs is accounted for in Helios UTG Partner Limited,
their immediate parent company.
(ii) RBC CEES Trustee Limited was an incorporated entity in year 2017 to
satisfy the requirements of the Joint Share Ownership Plan.
(iii) During the period, the Company sold 100% of the shares in Helios LLV
Three Limited, Helios LLV Four Limited and Helios LLV Nine Limited.
11. Share capital and share premium
Number of Ordinary share Partly Share Total
shares (i) capital paid ordinary premium £'000
£'000 share capital £'000
£'000
Ordinary shares of 10p each and share premium at 31 December 2023 77,945,833 7,685 110 98,596 106,391
Ordinary shares of 10p each and share premium at 30 June 2024 77,945,833 7,685 110 98,596 106,391
(i) Number of shares
At 30 June 2024 At 31 December 2023
Allotted, called up and fully paid ordinary shares:
On the market 73,645,144 74,186,068
Company buy back of ordinary shares held in treasury 3,200,689 2,659,765
76,845,833 76,845,833
Uncalled and partly paid ordinary share under the JSOP scheme (ii) 1,100,000 1,100,000
77,945,833 77,945,833
(ii) The partly paid ordinary shares are not entitled to dividend
distribution rights during the year.
12. Related party transactions
A number of subsidiary companies have entered into quota share reinsurance
contracts for the 2022, 2023 and 2024 years of account with protected cell
companies of HIPCC Limited.
Nigel Hanbury, a Director of Helios Underwriting plc and its subsidiary
companies, was also a director and majority shareholder in HIPCC Limited until
29 November 2023 when he sold his majority shareholding in full, and resigned
as a director on the same date.
In addition, HIPCC provide stop loss, portfolio stop loss and HASP reinforce
policies for the company.
13. Ultimate controlling party
The Directors consider that the Group has no ultimate controlling party.
Notes to the financial statements continued
Six months ended 30 June 2024
14. Syndicate participations
The syndicates and members' agent pooling arrangements ("MAPA") in which the
Company's subsidiaries participate as corporate members of Lloyd's are as
follows:
Allocated capacity per year of account
Syndicate number Managing or members' agent 2024 2023 2022*
£000 £000 £000
33 Hiscox Syndicates Limited 15,358 15,358 15,357
218 IQUW Syndicate Management Limited 17,711 17,711 7,519
318 Cincinnati Global Underwriting Agency Limited 1,082 862 993
386 QBE Underwriting Limited 3,139 3,139 3,067
510 Tokio Marine Kiln Syndicates Limited 30,294 28,183 34,097
557 Tokio Marine Kiln Syndicates Limited - - 3,509
609 Atrium Underwriters Limited 19,528 18,421 13,714
623 Beazley Furlonge Limited 32,687 28,909 23,293
727 S A Meacock & Company Limited 2,956 2,956 2,423
1176 Chaucer Syndicates Limited 2,875 2,875 2,875
1200 Argo Managing Agency Limited - 55 10,050
1699 Asta Managing Agency Limited 5,000 - -
1729 Dale Managing Agency Limited 25,118 20,094 10,220
1796 Asta Managing Agency Limited 7,000 - -
1902 Asta Managing Agency Limited 12,636 10,688 10,000
1925 Apollo Syndicate Management Limited 12,500 - -
1955 Arch Managing Agency Limited 20,000 12,500 -
1966 Asta Managing Agency Limited 15,000 - -
1969 Apollo Syndicate Management Limited 25,499 12,171 5,675
1971 Apollo Syndicate Management Limited 25,000 10,000 6,467
1985 Asta Managing Agency Limited 20,000 16,874 -
1988 Asta Managing Agency Limited 15,125 15,000 -
1996 Polo Managing Agency Limited 9,527 5,988 -
2010 Lancashire Syndicates Limited 7,338 7,338 10,642
2024 Probitas Managing Agency Limited 8,522 - -
2121 Argenta Syndicate Management Limited 5,206 272 10,267
2358 Nephila Syndicate Managing Agency Limited 20,000 - -
2427 Asta Managing Agency Limited 15,024 - -
2454 Apollo Syndicate Management Limited 5,800 - -
2525 Asta Managing Agency Limited 2,612 2,311 1,856
2689 Asta Managing Agency Limited 5,477 2,699 10,111
2791 Managing Agency Partners Limited 16,422 12,001 10,123
3123 Asta Managing Agency Limited 5,000 - -
3939 Apollo Syndicate Management Limited 12,000 - -
4242 Asta Managing Agency Limited 15,000 10,807 12,987
4444 Canopius Managing Agents Limited 24 21 20
5183 Asta Managing Agency Limited 1,727 5,000 -
5623 Beazley Furlonge Limited 27,001 17,672 6,894
5886 Blenheim Underwriting Limited 30,833 27,131 23,165
6103 Managing Agency Partners Limited 4,150 3,301 3,480
6104 Hiscox Syndicates Limited 10,000 32 1,774
6107 Beazley Furlonge Limited 1,550 164 1,682
6117 Ariel Re Managing Agency Limited 391 265 2,989
Total 512,112 310,798 245,249
Notes to the financial statements continued
Six months ended 30 June 2024
15. Group-owned net assets
The Group statement of financial position includes the following assets and
liabilities held by the syndicates on which the Group participates. These
assets are subject to trust deeds for the benefit of the relevant syndicates'
insurance creditors. The table below shows the split of the statement of
financial position between Group and syndicate assets and liabilities:
At 30 June 2024 At 31 December 2023
Group Syndicate Total Group Syndicate Total
£'000 £'000 £'000 £'000 £'000 £'000
Assets
Intangible assets:
- Capacity 82,436 - 82,436 82,436 - 82,436
- Positive goodwill 246 - 246 348 - 348
- Negative goodwill (395) - (395) (667) - (667)
Financial assets at fair value through profit or loss 75,511 281,949 357,460 70,754 217,444 288,198
Deferred income tax asset - - - - - -
Reinsurance assets:
- reinsurers' share of claims outstanding 60 110,609 110,669 60 82,948 83,008
- reinsurers' share of unearned premium - 47,670 47,670 - 23,962 23,962
Other receivables, including insurance and reinsurance receivables 4,486 286,835 291,321 357 172,575 172,932
Cash and cash equivalents 35,517 45,953 81,470 40,913 25,899 66,812
Prepayments and accrued income 6,164 5,212 11,376 4,459 2,822 7,281
Deferred acquisition costs - 39,384 39,384 - 32,291 32,291
Total assets 204,025 817,612 1,021,637 198,660 557,941 756,601
Liabilities
Equity
Equity attributable to owners of the Parent:
Share capital 7,795 - 7,795 7,795 - 7,795
Share premium 98,596 - 98,596 98,596 - 98,596
Revaluation reserve 24,840 - 24,840 24,840 - 24,840
Other reserves - treasury shares (JSOP and LTIP) 190 - 190 190 - 190
Retained earnings (32,503) 41,635 9,132 (26,174) 34,854 8,680
Total equity 98,918 41,635 140,553 105,247 34,854 140,101
Insurance liabilities:
- claims outstanding - 401,593 401,593 - 309,188 309,188
- unearned premium - 200,165 200,165 - 143,610 143,610
Deferred income tax liabilities 22,889 - 22,889 22,277 58 22,335
Borrowings 59,524 - 59,524 59,055 - 59,055
Other payables, including insurance and reinsurance payables 11,615 167,041 178,656 6,984 63,610 70,594
Accruals and deferred income 11,079 7,178 18,257 5,097 6,621 11,718
Total liabilities 105,107 775,977 881,084 93,413 523,087 616,500
Total liabilities and equity 204,025 817,612 1,021,637 198,660 557,941 756,601
16. Event after the financial reporting period
Share buy backs
On 23 July 2024 the Company bought back a further 2,466,666 shares for a total
consideration of £3,719,000.
Notes to the financial statements continued
Six months ended 30 June 2024
Directors, Registered office and advisers
Directors
Michael John Wade (Executive Chairman)
Nigel John Hanbury (Non-Executive Deputy Chairman)
Andrew Hildred Christie (Non-Executive Director)
Arthur Roger Manners (Finance Director)
Thomas John Libassi (Non-Executive Director)
John Chambers (Non-Executive Director) appointed 1 July 2024
Katherine Wade (Non-Executive Director) appointed 30 August 2024
Company Secretary
Kristel van der Meijden
Shakespeare Martineau
No 1 Colmore Square
Birmingham
B4 6AA
Company number
05892671
Registered office
1st Floor, 33 Cornhill, London, EC3V 3ND
Statutory auditors
PKF Littlejohn LLP
15 Westferry Circus
Canary Wharf
London E14 4HD
Lloyd's members' agent
Hampden Agencies Limited
40 Gracechurch Street
London EC3V 0BT
Argenta Private Capital Limited
70 Gracechurch Street
London EC3V 0HR
Registrars
Neville Registrars Limited
Neville House
Steelpark Road
Halesowen B62 8HD
Nominated adviser and broker
Numis Sercurities Limited
45 Gresham Street
London EC2V 7BF
INDEPENDENT REVIEW REPORT TO HELIOS UNDERWRITING PLC
Conclusion
We have been engaged by the group to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
June 2024 which comprises the Interim Condensed Consolidated Income Statement,
the Interim Condensed Statement of Comprehensive Income, the Interim Condensed
Statement of Financial Position, the Interim Condensed Statement of Changes in
Equity, the Interim Condensed Statement of Cash Flows, and related notes. We
have read the other information contained in the half-yearly financial report
and considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial
statements.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2024 is not prepared, in all
material respects, in accordance with FRC's Financial Reporting Standard 104
and AIM Rules for Companies.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity", issued for use in the United Kingdom.
A review of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with International
Standards on Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit opinion.
As disclosed in note 2, the annual financial statements of the group are
prepared in accordance with UK GAAP. The condensed set of financial statements
included in this half-yearly financial report has been prepared in accordance
with FRC's Financial Reporting Standard 104, "Interim Financial Reporting".
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or that
management has identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410, however future events or conditions may cause the group to
cease to continue as a going concern.
Responsibilities of directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the AIM Rules for companies.
In preparing the half-yearly financial report, the directors are responsible
for assessing the group's ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the group
or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the review of financial information
In reviewing the half-yearly report, we are responsible for expressing to the
group a conclusion on the condensed set of financial statements in the
half-yearly financial report. Our conclusion, including our Conclusions
relating to going concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for conclusion paragraph of
this report.
Use of our report
This report is made solely to the company's directors, as a body, in
accordance with the terms of our engagement letter dated 23 September 2024.
Our review has been undertaken so that we might state to the company's
directors those matters we have agreed to state to them in a reviewer's report
and for no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone, other than the company and the
company's directors as a body, for our work, for this report, or for the
conclusions we have formed.
PKF Littlejohn LLP
15 Westferry Circus
Statutory
Auditor
Canary Wharf
26 September
2024
London E14 4HD
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