Helios Underwriting Plc Acquisition of Lloyd's Member 54532L (0194K)
11 December 2018 - 6:00PM
UK Regulatory
TIDMHUW
RNS Number : 0194K
Helios Underwriting Plc
11 December 2018
Helios Underwriting plc
("Helios" or the "Company")
Acquisition of Lloyd's Member 54532L
Helios is pleased to announce that, in line with its strategy of
increasing underwriting capacity through acquisition, it has
acquired Lloyd's Member 54532L ("54532L") a limited liability
member of Lloyd's of London ("Lloyd's"). The consideration payable
for 54532L is GBP9.4 million in cash.
Information in respect of 54532L
The 2018 underwriting capacity of 54532L is GBP10.0m (this
compares with Helios's 2018 capacity of GBP45.0m prior to this
acquisition, which includes the capacity from the acquisition of
Advantage DCP Limited). 54532L participates in a spread of Lloyd's
syndicates that broadly matches the existing portfolio of Helios
and this transaction enables Helios to continue to build its
participations on the better syndicates at Lloyd's.
The consideration represents a discount of approximately 10% to
the independent valuation of GBP10.4m placed on 54532L by
Humphrey's and is approximately GBP0.4m below the fair value of
assets being acquired.
The capacity acquired, together with the capacity Helios expects
to retain, is as follows:
54532L Year of Account
2016 2017 2018
------ ----- -----
GBPm GBPm GBPm
------ ----- -----
Retained 10.3 10.8 3.0
------ ----- -----
Reinsured - - 7.0
------ ----- -----
Total Capacity 10.3 10.8 10.0
------ ----- -----
Helios will reinsure 70% of 2018 underwriting year in line with
its stated policy of reducing 'on-risk' exposures.
Helios has arranged a short-term loan of GBP8.1m at 2.5% above
LIBOR to assist in the financing of this acquisition which will be
repaid from existing free cash resources of GBP3.2m within 54532L
and from the provision of Funds at Lloyds of GBP4.9m by quota share
reinsurers in respect of recent acquisitions. The Company expects
to repay the loan by the end of January 2019.
In addition to the 54532L transaction, Helios is continuing to
pursue a number of further Lloyd's LLV acquisitions in line with
its strategy.
Additional information
54532L is a limited liability member of Lloyd's. In the year
ended 31 December 2017, 54532L made a loss before tax of GBP0.4m on
gross premiums written of GBP10.8m. Syndicate capacity with an
estimated market value of GBP3.1m has been included in the
transaction.
Helios Retained Capacity
The acquisition of 54532L, together with smaller acquisitions
made earlier in the year has increased the Helios Capacity
Portfolio by 35% in 2018 to date.
Year of Account
2016 2017 2018
GBPm GBPm GBPm
Capacity - Position as at 1st
Jan 2018 37.8 37.0 41.0
------ ----- -----
Retained 17.9 11.6 12.3
Reinsured 19.9 25.4 28.7
Capacity acquired since 1st Jan
2018
Retained 15.8 15.8 5.9
Reinsured - - 8.4
Capacity - Position as at 5(th)
December 2018
Retained 33.7 27.4 18.2
Reinsured 19.9 25.4 37.1
53.6 52.7 55.3
====== ===== =====
Increase in capacity 35%
For further information, please contact:
Helios Underwriting plc
Nigel Hanbury - Chief Executive 07787 530 404 /
nigel.hanbury@huwplc.com
Arthur Manners - Chief Financial Officer 07754 965 917
Stockdale Securities Limited
Robert Finlay 020 7601 6100
David Coaten
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 GBP55m of capacity
for the 2018 account. The portfolio provides a good spread of
business being concentrated in property 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 or visit www.rns.com.
END
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