Helios Underwriting plc
("Helios" or the "Company")
Acquisition of Inversanda LLP
Helios is pleased to announce that, in line with its strategy of increasing underwriting capacity through acquisition, on 25th September 2017, following approval of change of control by Lloyd's of London ("Lloyd's"), it has agreed to acquire Inversanda LLP ("Inversanda"), a limited liability member of Lloyd's ("LLV") for a consideration of £235,000 in cash.
Information in respect of Inversanda
The 2017 underwriting capacity of Inversanda is £616,211 (this compares with Helios's 2017 capacity of £35.7m prior to this acquisition). Inversanda 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 24.3% to the independent valuation of £310,235 placed on Inversanda by Humphrey's.
The capacity acquired, together with the capacity Helios expects to retain, is as follows:
Inversanda |
Year of Account |
|
2015 |
2016 |
2017 |
|
£m |
£m |
£m |
Retained |
0.65 |
0.63 |
0.18 |
Reinsured |
- |
- |
0.43 |
Total Capacity |
0.65 |
0.63 |
0.61 |
Helios will reinsure 70% of 2017 underwriting year in line with its stated policy of reducing 'on-risk' exposures.
Additional information
Inversanda is a limited liability member of Lloyd's. In the year ended 31 December 2016, Inversanda made a profit before tax of £1,156 on gross premiums written of £0.59m. Underwriting capacity with an estimated market value of £0.29m has been included in the transaction.
Set out below are Inversanda's 2015 and 2016 open years of account forecasts:
YOA |
Inversanda syndicate capacity (£'000) |
|
Forecast of Syndicate profit (31 March 2017) |
|
|
|
Mid-point (£'000) |
Mid-point (%) |
Range (%) |
2015 |
647 |
54 |
8.28 |
4.71 - 11.86 |
2016 |
634 |
10 |
1.58 |
(2.86) - 6.02 |
Source: Syndicate data and Helios analysis (before early release)
For further information please contact:
Helios
Nigel Hanbury - Chief Executive 020 7863 6655 / [email protected]
Arthur Manners - Chief Financial Officer 07754 965 917
Stockdale
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 £36.3m of capacity for the 2017 account. The portfolio provides a good spread of business being concentrated in property insurance and reinsurance. For further information please visit www.huwplc.com.
