Business
Acquisition of Chapman Underwriting Limited
Acquisition of Chapman Underwriting Limited.
About this update from Helios Underwriting Plc
[{"type":"text","content":"\n \nRNS Number : 0304X Helios Underwriting Plc 21 November 2017 \n\nHelios Underwriting plc\n(\"Helios\" or the \"Company\")\nAcquisition of Chapman Underwriting Limited \nHelios is pleased to announce that, in line with its strategy of increasing underwriting capacity through acquisition, on 20th November 2017, following approval of change of control by Lloyd's of London (\"Lloyd's\"), it has acquired Chapman Underwriting Limited (\"Chapman\"), a limited liability member of Lloyd's for a consideration of £540,000 in cash. \nInformation in respect of Chapman\nThe 2017 underwriting capacity of Chapman is £670,000 (this compares with Helios's 2017 capacity of £35.7m prior to this acquisition). Chapman 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. \nThe capacity acquired, together with the capacity Helios expects to retain for the 2018 underwriting year, is as follows:\n\n\n\n\nChapman\n\n\nYear of Account\n\n\n\n\n\n\n\n2015\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£m\n\n\n\n\nRetained \n\n\n0.62\n\n\n0.63\n\n\n0.67\n\n\n0.33\n\n\n\n\nReinsured\n\n\n-\n\n\n-\n\n\n\n\n\n0.77\n\n\n\n\nTotal Capacity\n\n\n0.65\n\n\n0.63\n\n\n0.67\n\n\n1.10\n\n\n\n\n \nThe planned capacity for Chapman for 2018 includes pre-emption offers taken up and the re-allocation of some Group capacity.\n \nThe total value acquired compared to the consideration paid is as follows:\n\n\n\n\nAll in £'000's\n\n\nAt Humphrey Valuation - July 2017\n\n\nValue using 2017 WAV - Nov 2017 \n\n\nSplit of actual Consideration\n\n\n\n\nTangible Net Assets\n\n\n429\n\n\n404\n\n\n404\n\n\n\n\nCapacity Value \n\n\n342\n\n\n267\n\n\n136\n\n\n\n\nTotal Value \n\n\n771\n\n\n671\n\n\n540\n\n\n\n\nDiscount of consideration to Total Value \n\n\n43%\n\n\n24%\n\n\n\n\n\n\n\n \nThe net assets acquired of £404,000 include a provision for a loss on the 2017 year of account of 5% at 36 months.\nAdditional information\nChapman is a limited liability member of Lloyd's. In the year ended 31 December 2016, Chapman made a profit before tax of £48,619 on gross premiums written of £0.63m. \nSet out below are Chapman's 2015 and 2016 open years of account forecasts:\n\n\n\n...