Helios Underwriting Plc Acquisition of Charmac (4379B)
April 04 2017 - 1:00AM
UK Regulatory
TIDMHUW
RNS Number : 4379B
Helios Underwriting Plc
04 April 2017
Helios Underwriting plc
('Helios' or the 'Company')
Acquisition of Charmac Underwriting Limited
Helios is pleased to announce that, in line with its strategy of
increasing underwriting capacity through acquisition, it has agreed
to acquire Charmac Underwriting Limited ('Charmac'), a limited
liability member of Lloyd's ('LLV') for a consideration of GBP2.24m
in cash. This acquisition was completed on 3rd April 2017 following
approval by Lloyd's of London of the change of control of
Charmac.
Information in respect of Charmac
The 2017 underwriting capacity of Charmac is GBP1,622,890 (this
compares with Helios's 2017 capacity of GBP33.4m prior to this
acquisition). Charmac 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 5% to the independent
valuation of GBP2.35m placed on Charmac by Humphrey's. Charmac is
expected to have funds surplus to its current underwriting
requirements of over GBP1m on completion which Helios will be able
utilise in the future.
The capacity acquired, together with the capacity Helios expects
to retain, is as follows:
Charmac Year of Account
---------------- ----- ---------------- ----- -----
2014 2015 2016 2017
---------------- ----- ---------------- ----- -----
GBPm GBPm GBPm GBPm
---------------- ----- ---------------- ----- -----
Retained 1.3 1.4 1.5 0.5
---------------- ----- ---------------- ----- -----
Reinsured - - - 1.1
---------------- ----- ---------------- ----- -----
Total Capacity 1.3 1.4 1.5 1.6
---------------- ----- ---------------- ----- -----
Helios will reinsure 70% of 2017 underwriting year in line with
its stated policy of reducing 'on-risk' exposures.
Additional information
Charmac is a limited liability member of Lloyd's. In the year
ended 31 December 2015, Charmac made a profit before tax of
GBP48,000 on gross premiums written of GBP1.32m and its net asset
value at that date was GBP1.2m. Underwriting capacity with an
estimated market value of GBP0.68m has been included in the
transaction.
Set out below are Charmac's 2014 and 2015 open years of account
forecasts:
YOA Charmac Forecast of Syndicate
syndicate profit (31 December
capacity 2016)
(GBP'000)
------ ----------- ----------------- ---------------------- -------------
Final for 2014 Final for 2014 Range
Mid-point for Mid-point for 2015 (%)
2015 (GBP'000)
(%)
------ ----------- ----------------- ---------------------- -------------
2014 1,300 181 13.89 N/A
------ ----------- ----------------- ---------------------- -------------
2015 1,417 91 6.43 2.56 - 10.30
------ ----------- ----------------- ---------------------- -------------
Source: Syndicate data and Helios analysis (before early
release)
For further information please contact:
Helios
Nigel Hanbury - Chief Executive 020 7863 6655 /
nigel.hanbury@huwplc.com
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 GBP33m 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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