Helios Underwriting Plc 2018 Capacity and Trading Statement (7804X)
November 29 2017 - 1:00AM
UK Regulatory
TIDMHUW
RNS Number : 7804X
Helios Underwriting Plc
29 November 2017
Helios Underwriting plc
("Helios" or the "Company")
2018 Capacity and Trading Statement
Helios is pleased to announce that the capacity for the 2018
year of account will commence at GBP41m, an increase of 26% over
opening capacity for 2017 year of account. The quality of the
portfolio has been improved, with Helios taking up all the
pre-emption offers on capacity with value at the auctions, and as
premium rates are expected to rise following the recent losses, the
underwriting margins are likely to improve.
Following the Lloyds Capacity Auctions, the Weighted Average
Prices of the capacity traded in 2017 reduced as a greater volume
of capacity was traded over the three auctions and as the
implications of the recent hurricane losses was felt.
At 1(st) At 1(st)
Jan 2017 Jan 2018 Movement
Capacity -
GBPm 32.6 41.0 26%
Value - GBPm 14.9 13.0 (13%)
Price per GBP
of capacity 0.46p 0.32p (30%)
Capacity Value
per Share 1.02p 0.89p (13%)
Helios will continue to quota share reinsure 70% of the 2018
underwriting year exposures.
The results for the year to 31 December 2017 have been impacted
by the 2017 catastrophe losses. The Board expects an operating loss
before tax of approximately GBP0.5m (2016 operating profit of
GBP1.3m) after reinsurance recoveries but before any charge for the
impairment of capacity and deferred tax adjustments.
The Adjusted Net Asset Value as at 31 December is forecast to be
approximately 168p (196p - 2016). The reduction the weighted
Average Price per GBP of capacity of 30% from the Lloyds Auctions
is the driver to this fall in ANAV.
Following the catastrophic losses of Hurricanes Harvey, Irma and
Maria, along with bushfires in California and other events, there
is evidence of a hardening market for 2018 and beyond. We will
continue to seek to acquire further LLV's, particularly as
valuation expectations for LLVs will now take into account lower
auction values and a less profitable pipeline of underwriting
results.
Our reinsurers have indicated continued support for which we are
most grateful. They have been the beneficiaries of the quality
portfolio which makes up the Helios Capacity Fund. In profitable
years the outperformance against Lloyds as a whole has been
significant. We are confident that a satisfactory degree of
outperformance will be maintained when the results for 2017 begin
to be announced.
Our quality portfolio, together with the reinsurance protections
we put in place, have put us in a strong position to benefit from
these changing circumstances and we look forward to taking
advantage of them.
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
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 and expects to write approximately GBP41m
of capacity for the 2018 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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