Acquisition

RNS Number : 6516M
Helios Underwriting Plc
22 January 2016
 

 

22 January 2016

 

Helios Underwriting plc

("HUW" or the "Company")

 

Acquisition of Lloyd's Limited Liability Vehicle

 

HUW is pleased to announce that, in line with its strategy of increasing underwriting capacity through acquisition, it has acquired Devon Underwriting Limited, a limited liability member of Lloyd's ("LLV"), for a consideration of £1.1 million in cash.  The 2016 underwriting capacity of the LLV is £1.2 million (this compares with HUW's 2016 capacity of £28.1 million prior to this acquisition).  HUW will provide Fund's at Lloyd's in an amount of approximately £0.7 million.  The LLV participates in a spread of Lloyd's syndicates broadly similar to HUW's own participation.

 

 

Commenting upon the acquisition, Nigel Hanbury, the Company's Chief Executive Officer, said:

"We are delighted to have made a further LLV acquisition which further increases our underwriting capacity.  This is in line with our stated strategy of acquiring corporate members as suitable opportunities arise.  We continue to believe that there remain significant opportunities for further growth available to the Company."

 

For further information please contact:

 

HUW

Nigel Hanbury - Chief Executive

 

 

nigel.hanbury@huwplc.com

 

Smith & Williamson Corporate Finance

David Jones

 

020 7131 4000

Stockdale Securities

Robert Finlay

 

020 7601 6100

 

About HUW

HUW provides a limited liability direct investment into the Lloyd's insurance market and is quoted on the London Stock Exchange's AIM market (ticker: HUW).  HUW trades within the Lloyd's insurance market writing approximately £29 million of capacity for the 2016 account.  The portfolio provides a good spread of classes of business being concentrated in property insurance and reinsurance.  For further information please visit www.huwplc.com.

 

Additional information

Devon Underwriting Limited ("Devon") is a limited liability member of Lloyd's.  In the year ended 31 December 2014, Devon made a profit before tax of £0.33m on gross premiums written of £1.5m and its net asset value at completion is expected to be approximately £1.1m, including underwriting capacity with an estimated market value of £0.6m.

 

Set out below are Devon's 2013 and 2014 open years of account forecasts:

 

YOA

Devon

syndicate capacity

(£'000)

Forecast of syndicate profit

(30 September 2015)

Mid point

(£'000)

Mid point

(%)

Range

(%)

2013

1,659

159

9.57%

6.29 - 12.86%

2014

1,866

102

5.46%

1.09 - 9.82%

Source: Syndicate data and HUW analysis (before early release)

 

Set out below are details of Devon's syndicate participations for the 2013 to 2016 years of account:

 

YOA

2013

2014

2015

2016

Syndicate

(£'000)

(%)*

(£'000)

(%)*

(£'000)

(%)*

(£'000)

(%)*

33

204

12.3%

215

11.5%

160

12.1%

160

12.9%

218

117

7.1%

180

9.6%

120

9.1%

123

9.9%

308

133

8.0%

160

8.6%

100

7.6%

100

8.0%

510

215

13.0%

215

11.5%

160

12.1%

160

12.9%

557

50

3.0%

50

2.7%

25

1.9%

25

2.0%

609

275

16.6%

275

14.7%

140

10.6%

140

11.3%

623

189

11.4%

204

10.9%

160

12.1%

179

14.4%

727

150

9.0%

150

8.0%

150

11.3%

150

12.1%

1884

-

-

-

-

25

1.9%

-

-

1991

-

-

80

4.3%

60

4.5%

-

-

2791

217

13.1%

191

10.2%

140

10.6%

140

11.3%

6104

50

3.0%

50

2.7%

-

-

-

-

6105

-

-

22

1.2%

24

1.8%

-

-

6111

60

3.6%

74

4.0%

60

4.5%

67

5.4%










Total

1,659

100.0%

1,866

100.0%

1,324

100.0%

1,244

100.0%

* Percentage of total syndicate portfolio

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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