Business
Acquisition of Advantage DCP Limited
Acquisition of Advantage DCP Limited.
About this update from Helios Underwriting Plc
[{"type":"text","content":"\n \nRNS Number : 4100H Helios Underwriting Plc 15 November 2018 \n\nHelios Underwriting plc\n(\"Helios\" or the \"Company\")\nAcquisition of Advantage DCP Limited \nHelios is pleased to announce that, in line with its strategy of increasing underwriting capacity through acquisition, it has acquired Advantage DCP Limited (\"Advantage\"), a limited liability member of Lloyd's of London (\"Lloyd's\") subject to consent for change of control from Lloyd's (the \"Acquisition\"). The consideration for Advantage is between £1.66 million and £1.91 million, dependent on no deterioration from the current 2017 year of account midpoint forecast of Advantage and the final result of that year. The consideration, which is in cash, will be payable as to £450,000 at completion with the balance paid in tranches in 2019 and 2020. \nInformation in respect of Advantage\nThe 2018 underwriting capacity of Advantage is £2.3m (this compares with Helios's 2018 capacity of £43.0m prior to this acquisition).\nThe maximum consideration represents a discount of 27% to the independent valuation of £2.6m placed on Advantage by Humphrey's and approximately £0.6m below the fair value of assets being acquired.\nThe capacity acquired, together with the capacity Helios expects to retain, is as follows:\n\n\n\n\nAdvantage\n\n\nYear of Account\n\n\n\n\n \n\n\n2016\n\n\n2017\n\n\n2018\n\n\n\n\n \n\n\n£m\n\n\n£m\n\n\n£m\n\n\n\n\nRetained \n\n\n3.6\n\n\n3.1\n\n\n2.3\n\n\n\n\nReinsured\n\n\n-\n\n\n-\n\n\n-\n\n\n\n\nTotal Capacity\n\n\n3.6\n\n\n3.1\n\n\n2.3\n\n\n\n\n \nIn addition to the Advantage transaction, Helios is continuing to pursue a number of further Lloyd's LLV acquisitions in line with its strategy.\nAdditional information\nAdvantage is a limited liability member of Lloyd's. In the year ended 31 December 2017, Advantage made a loss before tax of £0.2m on gross premiums written of £4.3m. Underwriting capacity with an estimated market value of £0.2m has been included in the transaction.\n \nFor further information, please contact:\nHelios Underwriting plc\nNigel Hanbury - Chief Executive &n...