Business
Update on Capacity and Growth Plans
Update on Capacity and Growth Plans.
About this update from Helios Underwriting Plc
[{"type":"text","content":"\n \n \n RNS Number : 5550V\n Helios Underwriting Plc\n 10 August 2020\n \n \n \n \n 10 August 2020\n \n \n Helios Underwriting plc\n \n \n (\"Helios\" or the \"Company\")\n \n \n \n \n \n Update on Capacity and Growth Plans\n \n \n \n \n \n Helios, the unique investment vehicle which acquires and consolidates underwriting capacity at Lloyd's, announces an update on its capacity portfolio and its growth plans.\n \n \n \n \n \n The Company's strategy is to build a fund of capacity on the better quality syndicates at Lloyd's by acquiring existing limited liability vehicles (\"LLVs\") and by taking up pre-emption capacity offered by its supported syndicates.\n \n \n \n \n \n T\n he number of potential \n LLV \n acquisitions available in the market has increased recently due to rising costs and requirements to fund losses on the Lloyd's market\n ,\n which have all been causing concern for an aging \n base\n of investors who are now \n considering\n \n their plans for 2021 underwriting. Helios has successfully\n \n seized these opportunities in the past and has an excellent track record of acquiring LLVs at a discount to their fair market value\n , \n significantly growing its capacity portfolio over time.\n \n \n \n \n \n Since 1\n \n st\n \n January 2018, the premium rates charged by those supported syndicates have increased by approximately 28 per cent., thereby improving underwriting margins and the prospects of profitable underwriting. The increase in premium rates and hardening market will provide new opportunities for Helios shareholders to benefit from the improved rating environment. For example, the Company expects certain supported syndicates to offer pre-emption capacity that is able to be taken up by Helios for nil value. In this regard, preliminary indications* show an overall increase in capacity from pre-emptions of between £5m and £7m for the Helios portfolio.\n \n \n \n \n \n In addition, the Company currently cedes 70 per cent. of its current portfolio to reinsurers in 2020, equating to approximately £49m. Due to the improving market conditions, the Board is considering the possibility of retaining a larger proportion of any additional capacity underwritten, so that average capacity reinsured will remain at approximately £50m going forwar...