Business
Acquisition of Inversanda LLP
Acquisition of Inversanda LLP.
About this update from Helios Underwriting Plc
[{"type":"text","content":"\n \nRNS Number : 7651R Helios Underwriting Plc 26 September 2017 \n\nHelios Underwriting plc\n(\"Helios\" or the \"Company\")\nAcquisition of Inversanda LLP\nHelios is pleased to announce that, in line with its strategy of increasing underwriting capacity through acquisition, on 25th September 2017, following approval of change of control by Lloyd's of London (\"Lloyd's\"), it has agreed to acquire Inversanda LLP (\"Inversanda\"), a limited liability member of Lloyd's (\"LLV\") for a consideration of £235,000 in cash. \nInformation in respect of Inversanda\nThe 2017 underwriting capacity of Inversanda is £616,211 (this compares with Helios's 2017 capacity of £35.7m prior to this acquisition). Inversanda 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 consideration represents a discount of 24.3% to the independent valuation of £310,235 placed on Inversanda by Humphrey's. \nThe capacity acquired, together with the capacity Helios expects to retain, is as follows:\n\n\n\n\nInversanda\n\n\nYear of Account\n\n\n\n\n \n\n\n2015\n\n\n2016\n\n\n2017\n\n\n\n\n \n\n\n£m\n\n\n£m\n\n\n£m\n\n\n\n\nRetained \n\n\n0.65\n\n\n0.63\n\n\n0.18\n\n\n\n\nReinsured\n\n\n-\n\n\n-\n\n\n0.43\n\n\n\n\nTotal Capacity\n\n\n0.65\n\n\n0.63\n\n\n0.61\n\n\n\n\n \nHelios will reinsure 70% of 2017 underwriting year in line with its stated policy of reducing 'on-risk' exposures.\nAdditional information\nInversanda is a limited liability member of Lloyd's. In the year ended 31 December 2016, Inversanda made a profit before tax of £1,156 on gross premiums written of £0.59m. Underwriting capacity with an estimated market value of £0.29m has been included in the transaction.\nSet out below are Inversanda's 2015 and 2016 open years of account forecasts:\n\n\n\n\nYOA\n\n\nInversanda syndicate capacity\n(£'000)\n\n\n \n\n\nForecast of Syndicate profit (31 March 2017)\n\n\n \n\n\n\n\n \n\n\n \n\n\nMid-point (£'000)\n\n\nMid-point (%)\n\n\nRange (%)\n\n\n\n\n2015\n\n\n647\n\n\n54\n\n\n8.28\n\n\n4.71 - 11.86\n\n\n\n\n2016\n\n\n634\n\n\n10\n\n\n1.58\n\n\n(2.86) - 6.02\n\n\n\n\n \nSource: Syndicate data and Helios analysis (b...