Helios Underwriting Plc Acquisition of Nottus No 51 Limited (6013H)
June 09 2017 - 1:00AM
UK Regulatory
TIDMHUW
RNS Number : 6013H
Helios Underwriting Plc
09 June 2017
Helios Underwriting plc
('Helios' or the 'Company')
Acquisition of Nottus No 51 Limited
Helios is pleased to announce that, in line with its strategy of
increasing underwriting capacity through acquisition, on 8 June,
following approval of change of control by Lloyd's of London
("Lloyd's"), it has agreed to acquire Nottus No 51 Limited
('Nottus'), a limited liability member of Lloyd's ('LLV') for a
consideration of GBP964,500 in cash.
Information in respect of Nottus
The 2017 underwriting capacity of Nottus is approximately
GBP669,000 (this compares with Helios's 2017 capacity of GBP35m
prior to this acquisition). Nottus 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 4.0% to the
independent valuation of GBP1.0m placed on Nottus by Humphrey's.
Nottus is expected to have funds surplus to its current
underwriting requirements of over GBP0.60m on completion which
Helios will be able to utilise in the future.
The capacity acquired, together with the capacity Helios expects
to retain, is as follows:
Nottus Year of Account
---------------- --------------------
2015 2016 2017
---------------- ------ ----- -----
GBPm GBPm GBPm
---------------- ------ ----- -----
Retained 0.62 0.63 0.20
---------------- ------ ----- -----
Reinsured - - 0.47
---------------- ------ ----- -----
Total Capacity 0.62 0.63 0.67
---------------- ------ ----- -----
Helios will reinsure 70% of 2017 underwriting year in line with
its stated policy of reducing 'on-risk' exposures.
Additional information
Nottus is a limited liability member of Lloyd's. In the year
ended 31 December 2015, Nottus made a profit before tax of
GBP102,674 on gross premiums written of GBP0.55m and its net asset
value at that date was GBP0.54m. Underwriting capacity with an
estimated market value of GBP0.37m has been included in the
transaction.
Set out below are Nottus's 2015 and 2016 open years of account
forecasts:
YOA Nottus Forecast of
syndicate Syndicate profit
capacity (31 March 2017)
(GBP'000)
------ ----------- ----------- ------------------ -------------
Mid-point Mid-point (%) Range (%)
(GBP'000)
------ ----------- ----------- ------------------ -------------
2015 619 42 6.78 2.91 - 10.64
------ ----------- ----------- ------------------ -------------
(2.04) -
2016 634 14 2.15 6.34
------ ----------- ----------- ------------------ -------------
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 GBP35m 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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