Business
2018 Capacity and Trading Statement
2018 Capacity and Trading Statement.
About this update from Helios Underwriting Plc
[{"type":"text","content":"\n \nRNS Number : 7804X Helios Underwriting Plc 29 November 2017 \n\nHelios Underwriting plc\n(\"Helios\" or the \"Company\")\n2018 Capacity and Trading Statement \nHelios is pleased to announce that the capacity for the 2018 year of account will commence at £41m, 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.\nFollowing 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.\n\n\n\n\n\n\n\nAt 1st Jan 2017\n\n\nAt 1st Jan 2018\n\n\nMovement\n\n\n\n\nCapacity - £m\n\n\n32.6\n\n\n41.0\n\n\n26%\n\n\n\n\nValue - £m\n\n\n14.9\n\n\n13.0\n\n\n(13%)\n\n\n\n\nPrice per £ of capacity \n\n\n 0.46p \n\n\n 0.32p \n\n\n(30%)\n\n\n\n\nCapacity Value per Share\n\n\n 1.02p \n\n\n 0.89p \n\n\n(13%)\n\n\n\n\n\n\n\n\n\n\n\n \n \nHelios will continue to quota share reinsure 70% of the 2018 underwriting year exposures.\nThe 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 £0.5m (2016 operating profit of £1.3m) after reinsurance recoveries but before any charge for the impairment of capacity and deferred tax adjustments.\nThe Adjusted Net Asset Value as at 31 December is forecast to be approximately 168p (196p - 2016). The reduction the weighted Average Price per £ of capacity of 30% from t...