REG - Helios Underwriting - Helios grows 2024 portfolio to over £500m capacity

Helios UnderwritingAnnouncement

15/12/2023 07:30

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231215:nRSO9082Wa&default-theme=true

RNS Number : 9082W  Helios Underwriting Plc  15 December 2023

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE
REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE,
PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

Helios Underwriting PLC

("Helios" or the "Company")

 

Helios grows 2024 Lloyd's portfolio to exceed £500m capacity

 

·    2024 capacity portfolio increases to £501 million

·    Helios retained capacity increases by 58% to £387 million

·    "Rental Capacity" initiative with Argenta Private Capital likely to
support £55million of capacity

·    Issue of up to US$100 million A- rated Senior Unsecured Notes

 

Helios Underwriting, the investment vehicle that provides investors access to
a spread vehicle portfolio at Lloyd's of London, has delivered significant
growth into 2024 building on its diversified and curated portfolio of
syndicates. Capacity for 2024 will grow to more than £500m thanks to the
strategic decision to position the portfolio to maximise opportunities.

 

 Helios - 2024 Year of Account Capacity
 £m                                          Retained  Third Party  Total
 Expected Capacity for 2024 Year of Account  386.9     114.9        501.8
 2023 Year of Account Capacity               244.5     66.3         310.8
 % Increase                                  58%       73%          61%

 

 

Capacity for the 2024 Year of Account is expected to grow by 61%. This growth
has been achieved through a combination of exercising pre-emption rights
across the freehold portfolio, by building the tenancy portfolio and with new
syndicate opportunities, some of which will commence in H1 2024.  This growth
has enabled the Company to increase the retained position by 58% to £387m
which will drive Helios' earnings in the future.

 

This growth has also allowed Helios to accommodate the strategic shift to a
hybrid fee earning model by increasing the capacity allocated to Third Party
capital providers. The company has pursued its ambition by launching a
ground-breaking sidecar initiative to "rent" up to £55m of capacity to
private capital in conjunction with Argenta Private Capital Limited.

 

Helios is also pleased to announce that it has secured an A - / stable rating
from Kroll Bond Rating Agency LLC, (KBRA) for up to US$100m seven-year
unsecured debt at a fixed coupon of 9.5%.  An initial tranche of US75m of the
debt has been raised. The Company believes that this facility will assist in
the funding of the growth in the retained capacity and will facilitate growth
in the future.  Acrisure Re Corporate Advisory and Solutions ("ARCAS") were
the structuring and placement agent on the transaction.

 

The Company recently published its pro-forma NAV per share, which as at Sept
30 2023 has increased 17% to £1.76, driven by strong performance and results
of the recent capacity auctions.

 

Martin Reith, CEO, commented:

 

"I am delighted to report that we have substantially grown our portfolio into
2024 and further positioned Helios to benefit from market discipline and the
attractive pricing environment. We have built the portfolio to deliver
superior returns across a diversified and volatility managed portfolio.  As a
consequence we expect to have in excess of £500m capacity deployed for the
'24 YoA.

 

"We have also started to shift the quality of our earnings away from pure
underwriting returns and into a hybrid model where we have repeatable fee
income generated by allowing access to our portfolio. Our "rental capacity"
initiative with private capital is ground-breaking and allows investors a fast
and efficient way to participate at the heart of some of the best syndicates
trading at Lloyd's and removes the requirement to buy and own freehold
capacity to access a Lloyd's portfolio.

 

"While deploying our own funds to the maximum, we have also added to the
capital stack that supports the portfolio with proportional and
non-proportional reinsurer support, sidecar capacity and rated debt. We are
well positioned to secure further growth if we can originate other
opportunities.

 

"I am thrilled that we have been able to significantly build the portfolio and
to reinforce our value proposition as a key part of private capital at
Lloyd's".

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (ED No.596/2014) (and all delegated regulations,
implementation directives, technical standards and guidance issued by European
Securities and Markets Authority from time to time, as implemented in the UK
by the European Union (Withdrawal) Act 2018 (as amended by the European Union
(Withdrawal) Act 2020)) ("UK MAR"), encompassing information relating to the
issue of unsecured debt as described above, and is disclosed in accordance
with the Company's obligations under Article 17 of UK MAR.

 

For the purposes of UK MAR, the person responsible for arranging for the
release of this announcement on behalf of the Company is Arthur Manners.

 

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 £501m of capacity for the 2024 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
(http://www.huwplc.com) .

 

IMPORTANT INFORMATION

 

The release, publication or distribution of this announcement in jurisdictions
other than the United Kingdom may be restricted by law and therefore any
persons into whose possession this announcement comes should inform themselves
about and observe any applicable restrictions or requirements.  No action has
been taken by the Company that would permit possession or distribution of this
announcement in any jurisdiction where action for that purpose is required.
Any failure to comply with such restrictions or requirements may constitute a
violation of the securities laws of any such jurisdiction.

 

 

 

 

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  MSCEAEALFLLDFAA