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HELIOS UNDERWRITING PLC
Earnings Release • Dec 18, 2024
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Earnings Release
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National Storage Mechanism | Additional information 
RNS Number : 4850Q
Helios Underwriting Plc
18 December 2024
Helios Underwriting PLC
("Helios" or the Company)
Helios announces expected 2025 capacity for its Lloyd's syndicate portfolio of £484 million
Highlights:
· 2025 capacity portfolio expected to be c. £484 million
· Helios retained capacity estimated to be c. £327 million
· Increase in Third Party capacity to c. £157 million (2024 £115.5 million)
· Material reduction in 2025 cost base
· Net Asset Value as at 30th September 2024 of £2.06p
Helios Underwriting, the only publicly traded company offering instant access to a diverse portfolio of syndicates at Lloyd's of London, has arranged a diversified portfolio of syndicates for the 2025 Year of Account with an overall capacity of £484m (2024: £512m).
The new capacity reflects strategic adjustments, following trading at the 2024 auctions and other acquisitions. The retained Helios share is expected to be c.£327m.
Helios' 2025 portfolio remains well-diversified, balancing growth and stability through careful allocation across syndicates, geographies and classes. With 82% of the portfolio consisting of established syndicates, the Helios portfolio strikes a balance between stability and an attractive pipeline of profits and growth potential.
Michael Wade, Interim Executive Chairman, commented: "Today's announcement of our estimated 2025 portfolio capacity of £484m underlines our status as a leading, active Lloyd's syndicate portfolio manager. While pricing adequacy within the Lloyd's market remains generally strong we have worked hard to finetune the portfolio's class of business mix, with lower exposure to new syndicates. By collaborating with top-performing syndicates and maintaining a proactive approach, Helios is well positioned to deliver strong results and sustained value in 2025. We head into 2025 confident of our high quality, diversified portfolio and its attractive profit pipeline.
"The expected profitability for the 2022, 2023 and 2024 open Years of Account remains encouraging with welcome profit distributions ahead for Helios; the Board will review its dividend policy as Lloyd's syndicate profits become available.
"As previously announced, Helios has successfully taken steps to reduce its gearing to capital and underwriting risk in 2025. Additionally, the overall cost base for 2025 is projected to reduce materially.
"The Board will continue to review the strategic direction for Helios in 2025 in the interests of maximising long-term value for shareholders. The Board of Helios take this opportunity to thank all shareholders for their continued support."
| Helios - 2025 Year of Account Capacity | |||
| £m | Retained | Third Party | Total |
| 2025 Year of Account | 326.8 | 157.3 | 484.1 |
| 2024 Year of Account Capacity | 396.6 | 115.5 | 512.1 |
| % Change 2024 to 2025 | -18% | 36% | -5% |
Helios has continued with its strategic direction to build the hybrid fee earning model by increasing, by 36%, the capacity allocated to Third Party capital providers who participate on a pro rata basis alongside Helios itself. This includes the renewal of the existing quota share reinsurance for the 2025 Year of Account, which covers all the syndicates in the portfolio.
The 2025 specialist insurance market presented both challenges and opportunities in syndicate selection. Many classes reached an inflection point, with some softening while others showed robust growth potential. However, pricing adequacy remains generally strong.
By closely monitoring rate adequacy and market conditions, we adjusted allocations, reducing our exposure to US Casualty, which has faced reserve deterioration due to increased court awards, and focusing on Property Reinsurance, which benefited from significant compounded rate increases and improved terms.
Risk management continues to be a core focus, with a slight uptick in natural catastrophe exposure strategically counterbalanced by a reduced Cyber risk allocation. The portfolio's class of business mix has been fine-tuned to align more closely with Lloyd's Market benchmarks.
By collaborating with top-performing syndicates and maintaining a proactive approach to market trends, Helios is well-positioned to deliver strong results and sustained value for shareholders in 2025 subject to market events.
The NAV per share as at 30th September 2024 has increased 8% to £2.06 driven by pipeline profits, a buyback of shares by the Company in July and results of the recent Lloyd's capacity auctions.
Helios has recently completed the purchase of Hyde Park Capital Limited for a consideration of £7.0m in cash compared with the Humphrey Valuation of £8.6m. The capacity acquired has been included in the Helios portfolio for 2025.
Helios 2025 Lloyd's syndicate Portfolio
| Allocated capacity per year of account | ||
| Syndicate | 2024 £000 |
2025 £000 |
| Hiscox 33 | 15,358 | 15,108 |
| ERS 218 | 17,711 | 19,399 |
| Cincinnati 318 | 1,082 | 1,082 |
| QBE 386 | 3,139 | 2,889 |
| TMK 510 | 30,294 | 15,307 |
| Atrium 609 | 19,528 | 18,794 |
| Beazley 623 | 32,687 | 28,866 |
| S.A. Meacock 727 | 2,956 | 2,956 |
| Chaucer 1176 | 2,875 | 2,575 |
| Mosaic 1609 | 20,000 | |
| Volante 1699 | 5,000 | - |
| Dale 1729 | 25,118 | 25,117 |
| Parsyl 1796 | 7,000 | - |
| MCI 1902 | 12,636 | 12,635 |
| Ariel Re 1910 | - | 20,000 |
| Envelop 1925 | 12,500 | 7,500 |
| Arch 1955 | 20,000 | 24,640 |
| MCI 2 1966 | 15,000 | 12,600 |
| Apollo 1969 | 25,499 | - |
| Apollo 1971 | 25,000 | 25,000 |
| Flux 1985 | 20,000 | 12,693 |
| CFC 1988 | 15,125 | - |
| WDS 1996 | 9,527 | - |
| Lancashire 2010 | 7,338 | - |
| ADA 2024 | 8,522 | 6,750 |
| Argenta 2121 | 5,206 | 5,206 |
| Nephila 2358 | 20,000 | 25,000 |
| Agile 2427 | 15,024 | 15,000 |
| ASR 2454 | 5,800 | 7,500 |
| Secure Liability Solutions 2525 | 2,612 | 2,412 |
| HRP 2689 | 5,477 | 14,755 |
| MAPL 2791 | 16,422 | 16,172 |
| Fidelis 3123 | 5,000 | 14,060 |
| NormanMax 3939 | 12,000 | 12,000 |
| Beat 4242 | 15,000 | 16,523 |
| Canopius 4444 | 24 | - |
| MIC 5183 | 1,727 | - |
| Beazley 5623 | 27,001 | 26,843 |
| Blenheim 5886 | 30,833 | 37,478 |
| MAPL 6103 | 4,150 | 4,615 |
| Hiscox 6104 | 10,000 | 12,008 |
| Beazley 6107 | 1,550 | - |
| Ariel Re 6117 | 391 | 570 |
| 512,112 | 484,053 |
For further information, please contact:
Helios Underwriting PLC
Michael Wade - Interim Executive Chairman
[email protected] +44 (0)203 880 7518
Arthur Manners - Chief Financial Officer
[email protected] +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
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. The portfolio provides a broad spread of business primarily participating in the US and other international wholesale and reinsurance markets. For further information please visit www.huwplc.com .
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