HELIOS UNDERWRITING PLC

Capital/Financing Update • Dec 22, 2021

National Storage Mechanism | Additional information

RNS Number : 4178W

Helios Underwriting Plc

22 December 2021

22nd December 2021

Helios Underwriting plc

("Helios" or the "Company")

2022 Helios Retained Capacity  

Helios, the unique investment vehicle that acquires and consolidates underwriting capacity at Lloyds', announces an update on the Company's capacity to be underwritten for 2022.

Nigel Hanbury, Chief Executive of Helios, commented:

"I am delighted that the retained capacity underwritten by Helios shareholders will have trebled to £171m for the 2022 underwriting year. This provides us with a strong platform from which to make further value-enhancing acquisitions."

Capacity Update

Helios announces that the retained underwriting capacity for Helios for the 2022 year of account will be £171m, a 191% increase in the capacity underwritten at the start of 2021.   The overall portfolio including the capacity reinsured has increased to £233m, more than doubling the size of the portfolio.

Helios - 2022 Year of Account Capacity
£m	Retained	Reinsured	Total
Capacity expected as at 1st January 2022	171.1	61.6	232.7
Capacity as at 1st January 2021	58.7	51.5	110.2
% Increase	191%	20%	111%

Given the much-improved underwriting pricing going into 2022, the prospects for underwriting profitability have improved considerably and the Board believes this substantial increase in the retained capacity will benefit the Company's shareholders. 

The analysis of this increase in the Helios portfolio is as follows:

				2022 Capacity
				£m
Capacity at 31 Dec 2020				110.3
Capacity expected to be acquired with LLVs in 2021				34.7
Pre-emption capacity				6.2
Acquisition of capacity in the capacity auction				23.7
Tenancy Capacity				57.8
Capacity expected at 31 Dec 2021				232.7

In addition to the capacity acquired at the capacity auctions this year, Helios has supported both new and well established syndicates that offer capacity for a limited period only, referred to as Tenancy Capacity, and Helios expects to support these syndicates in the longer term. 

Helios has completed the acquisition of 26 LLVs so far in 2021 and expects to complete a further two prior to the year-end. In total, these 28 acquisitions will have added £35m of capacity to the 2021 year of account and increased the retained capacity for all three open years of account. The split of capacity between retained and that reinsured for the current open years of account is expected to be as follows:

Retained Capacity 2019 to 2021 Years of Account
	2019	2020	2021
	£m	£m	£m
Capacity - Position as at 1st Jan 2021	31.3	30.9	58.6
Capacity expected to be acquired during 2021	36.1	35.6	34.8
Capacity - Expected at 31st Dec 2021	67.4	66.5	93.4

The increased retained capacity on the 2019 to 2021 years of account, substantially "off-risk" for the underwriting years, will contribute to the recognised profits in the future.

For further information please contact:

Helios Underwriting plc

Nigel Hanbury - Chief Executive                                +44 (0)7787 530 404 / nigel.hanbury@huwplc.com

Arthur Manners - Chief Financial Officer                 +44 (0)7754 965 917

Shore Capital (Nomad and Broker)

Robert Finlay                                                                 +44 (0)20 7601 6100

David Coaten

Buchanan (PR)

Helen Tarbet / Henry Wilson / 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 £145m 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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