TIDMHUW

RNS Number : 4014S

Helios Underwriting Plc

15 November 2021

15(th) November 2021

Helios Underwriting plc

("Helios" or the "Company")

Capacity Value Update

Helios, the unique investment vehicle which acquires and consolidates underwriting capacity at Lloyd's announces an update on the value of Company's capacity portfolio following the Capacity Auctions at Lloyd's.

Nigel Hanbury, Chief Executive of Helios, commented:

"I am delighted that the value of the capacity portfolio will increase to GBP60m with the revaluation of the existing portfolio adding 9.6p to the Tangible Net Asset value per share - a 6.6% increase."

Capacity Value

The value of the capacity fund as at 31 (st) December 202 1 using the weighted average prices of capacity from the 202 1 Lloyd's capacity auctions is expected to increase to GBP60.2 m ( 31 (st) December 2020: GBP30.8 m).

 
                                                               Capacity    Value of 
                                                                           Capacity 
                                                                   GBPm        GBPm 
 Capacity Value at 31 Dec 
  2020                                                            110.3        30.8 
 Capacity expected to be acquired with 
  LLV's in 2021                                                    35.4        18.0 
 Value of pre-emption capacity                                      6.3         2.3 
 Acquisition of capacity in the capacity 
  auction                                                          23.8         2.6 
 Increase in portfolio value                                          -         6.5 
 Capacity Value expected 
  at 31 Dec 2021                                                  175.8        60.2 
                                              -------------------------  ---------- 
 
 
 
 Impact on Net Asset Value                                 GBPm 
 Value of pre-emption 
  capacity                                                  2.3 
 Increase in portfolio 
  value                                                     6.5 
                                                            8.8 
 Deferred Tax provision 
  - 25%                                                   (2.2) 
 Net Increase in Tangible Net Assets                        6.6 
                                          ===================== 
 Number of shares in Issue                                 69.0 
 Increase in Net Asset Value per 
  share                                                    9.6p

A summary of the movements in capacity and its value are:

Helios is expecting to acquire 29 LLVs during 2021 with capacity of GBP35.4m, which was valued at 2021 capacity prices at GBP18.0 m. We have completed 19 acquisitions to date, acquiring GBP22.7m of capacity and the remaining 10 acquisitions are expected to complete shortly.

The syndicates supported by Helios offered free capacity of GBP6.3m (2020 - GBP10.7m ) by way of pre-emptions to support the improved underwriting market. The value of the pre-emptions taken up have increased the value of the portfolio by GBP2.3m.

Helios continued to manage the capacity portfolio discarding unwanted syndicates and taking positions on syndicat es, in particular syndicate 510 and syndicate 2689, tak ing the total additional capacity acquired at auction to GBP23.8 m for consideration of GBP2.6m.

The average price per GBP of capacity with valu e after the 2021 auctions was 41p (2020 - 37 p) reflecting the increase in auction prices .

This increase in the capacity portfolio value of GBP6.5m, net of a provision for deferred tax, will increase the Tangible Net Asset Value by 9.6p, an increase of 6.6% over the Tangible Net Asset Value of at 30 (th) June 2021 of 146p.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) NO 596/2014.

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

Willis Re Securities (Financial Adviser)

Alastair Rodger +44 (0)20 3124 6033

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 GBP130m 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 .

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.

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.

END

UPDBABBTMTTBBJB

(END) Dow Jones Newswires

November 15, 2021 06:27 ET (11:27 GMT)

Helios Underwriting (LSE:HUW)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Helios Underwriting Charts.
Helios Underwriting (LSE:HUW)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Helios Underwriting Charts.