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Helios Underwriting plc announced an update on its capacity portfolio, stating its value is expected to increase to £60.2 million at 31 December 2021, up from £30.8 million at 31 December 2020. This expected increase includes £18.0 million from LLV acquisitions, £2.3 million from pre-emption capacity, and £2.6 million from capacity acquired at auction. The company stated this £6.5 million increase in portfolio value, net of deferred tax, will raise the Tangible Net Asset Value per share by 9.6p, a 6.6% increase over the 146p TNAV at 30 June 2021.
| Date | 15 Nov 2021 |
| Time | 11:27:06 |
| Category | Corporate updates |
| ID | 4014S |
15th 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 £60m 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 31st December 2021 using the weighted average prices of capacity from the 2021 Lloyd's capacity auctions is expected to increase to £60.2m (31st December 2020: £30.8m).
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Capacity |
Value of Capacity |
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£m |
£m |
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Capacity Value at 31 Dec 2020 |
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110.3 |
30.8 |
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Capacity expected to be acquired with LLV's in 2021 |
35.4 |
18.0 |
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Value of pre-emption capacity |
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6.3 |
2.3 |
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Acquisition of capacity in the capacity auction |
23.8 |
2.6 |
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Increase in portfolio value |
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- |
6.5 |
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Capacity Value expected at 31 Dec 2021 |
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175.8 |
60.2 |
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Impact on Net Asset Value |
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£m |
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Value of pre-emption capacity |
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2.3 |
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Increase in portfolio value |
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6.5 |
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8.8 |
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Deferred Tax provision - 25% |
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(2.2) |
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Net Increase in Tangible Net Assets |
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6.6 |
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Number of shares in Issue |
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69.0 |
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Increase in Net Asset Value per share |
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9.6p |
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A summary of the movements in capacity and its value are:
Helios is expecting to acquire 29 LLVs during 2021 with capacity of £35.4m, which was valued at 2021 capacity prices at £18.0m. We have completed 19 acquisitions to date, acquiring £22.7m of capacity and the remaining 10 acquisitions are expected to complete shortly.
The syndicates supported by Helios offered free capacity of £6.3m (2020 - £10.7m) 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 £2.3m.
Helios continued to manage the capacity portfolio discarding unwanted syndicates and taking positions on syndicates, in particular syndicate 510 and syndicate 2689, taking the total additional capacity acquired at auction to £23.8m for consideration of £2.6m.
The average price per £ of capacity with value after the 2021 auctions was 41p (2020 - 37p) reflecting the increase in auction prices.
This increase in the capacity portfolio value of £6.5m, 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 30th 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 / [email protected]
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 £130m 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.