Business
Acquisition of Nottus No 51 Limited
Acquisition of Nottus No 51 Limited.
About this update from Helios Underwriting Plc
[{"type":"text","content":"\n \nRNS Number : 6013H Helios Underwriting Plc 09 June 2017 \n\nHelios Underwriting plc\n('Helios' or the 'Company')\nAcquisition of Nottus No 51 Limited\nHelios is pleased to announce that, in line with its strategy of increasing underwriting capacity through acquisition, on 8 June, following approval of change of control by Lloyd's of London (\"Lloyd's\"), it has agreed to acquire Nottus No 51 Limited ('Nottus'), a limited liability member of Lloyd's ('LLV') for a consideration of £964,500 in cash. \n Information in respect of Nottus\nThe 2017 underwriting capacity of Nottus is approximately £669,000 (this compares with Helios's 2017 capacity of £35m prior to this acquisition). Nottus 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 4.0% to the independent valuation of £1.0m placed on Nottus by Humphrey's. Nottus is expected to have funds surplus to its current underwriting requirements of over £0.60m on completion which Helios will be able to utilise in the future.\nThe capacity acquired, together with the capacity Helios expects to retain, is as follows:\n \n\n\n\n\nNottus\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\n0.62\n\n\n0.63\n\n\n0.20\n\n\n\n\nReinsured\n\n\n-\n\n\n-\n\n\n0.47\n\n\n\n\nTotal Capacity\n\n\n0.62\n\n\n0.63\n\n\n0.67\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\nNottus is a limited liability member of Lloyd's. In the year ended 31 December 2015, Nottus made a profit before tax of £102,674 on gross premiums written of £0.55m and its net asset value at that date was £0.54m. Underwriting capacity with an estimated market value of £0.37m has been included in the transaction.\nSet out below are Nottus's 2015 and 2016 open years of account forecasts:\n\n\n\n\nYOA\n\n\nNottus 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\n619\n\n\n42\n\n\n6...