Half-year Report

RNS Number : 0680B
Helios Underwriting Plc
29 September 2022
 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

Helios Underwriting plc

("Helios" or the "Company")

 

Interim Results for the Six Months Ended 30 June 2022

 

Helios Underwriting plc, the unique investment vehicle which provides investors with exposure to the Lloyds insurance market through an actively managed portfolio of syndicate capacity , announces its unaudited results for the six months ended 30 June 2022, during which it continued its strategy of driving portfolio growth and future shareholder value, building on its recent rapid growth in retained capacity.

 

· Gross written premiums increased by 133% to £124m (30 June 2021 - £53m) reflecting the increase in the capacity portfolio

· Further rate increase achieved by Lloyds' of 7.7% over the six month period which together with greater discipline encouraged by the Franchise Board at Lloyd's market, has bolstered the prospects for profitable underwriting

· 76% improvement in the underwriting result to £3.3m with a 94.5% combined ratio

· The increase in the underwriting exposure in 2022 to £172m of retained capacity will contribute to the underwriting result in the future.

· Investment losses of £3.5m have been booked in the first six months driven by mark to market investment losses as interest rates have increased, which has masked the improvement in the underwriting margins, although higher yields on both syndicate and Group funds will benefit future returns

· Operating costs of £3.6m include non-recurring costs of £0.7m relating to a contemplated significant acquisition and increased reinsurance costs given the increase in the underwriting exposure

· Operating loss is 3.4m (30 June 202 1 - a loss of £0.4m)

· The net tangible asset value per share is £1.49 per share (31st December 2021 - £1.57 per share)

 

Chairman's statement

Six months ended 30 June 2022

 

Nigel Hanbury, Chief Executive, provides the following overview:

 

"The steady improvement in current market conditions continues to open up exciting windows of opportunity for Helios. The progress in underwriting conditions over five years is being reflected in the improved underwriting margins.

 

"The results are skewed as a consequence of the recent 133% growth in our retained capacity and a cautious approach to reserving, as we would expect, by our portfolio. With the passage of time, we are confident that our portfolio will demonstrate outperformance against a prudent reserving strategy.  The impact of the increased yields on the Group investments will make a contribution in the future.

 

"Mark to market losses within syndicates' investment bond portfolios have also impacted results. Rising interest rates will help negate that with improved returns from fixed income in future periods.

 

" We have increased our retained capacity to £172m for the 2022 underwriting year to take advantage of the current market conditions.   We are confident that we can continue to demonstrate our ability to achieve attractive shareholder returns over the next few years."

 

 

 

 

6 months to 30th June

Year to 31st December

 

2022

2021

2021

£000's

£000's

£000's

Gross written premium

124,097

53,351

106,058

Underwriting result

3,291

1,873

5,681

Investment Income - syndicates

(3,560)

179

37

Net quota share

(383)

(951)

(2,319)

Net profits

(652)

1,102

3,399

Other income

833

526

2,700

Costs

(3,612)

(2,107)

(6,744)

Operating loss for the period before impairment

(3,431)

(480)

(645)

(Loss)/profit after tax

(3,902)

(2,659)

4,932

Earnings per share

(5.38)p

(3.88)p

(0.75)p

Net Tangible Asset Value per Share

£1.49p

£1.46

£1.57

 

 

 

Helios Underwriting plc

Nigel Hanbury - Chief Executive  +44 (0)7787 530 404 / nigel.hanbury@huwplc.com

Arthur Manners - Chief Financial Officer                         +44 (0)7754 965 917

 

Shore Capital

Robert Finlay                                                                  +44 (0)20 7601 6100

David Coaten

 

Gallagher (Financial Adviser)

Alastair Rodger                                                               +44 (0)20 3124 6033

 

Buchanan

Helen Tarbet / Henry Wilson / George Beale   +44 (0)7872 604 453

                                                                                      +44 (0)20 7466 5111

 

 

The combined underwriting result continues to recover as the underlying profitability starts to be recognised.  The potential losses from Ukraine have been recognised to the extent that they are known. The events in Ukraine continue to unfold and the full extent of the insured losses have yet to be fully recognised.   


2022

£000's

2021

£000's

% Increase

 Gross premium written

  124,067

  53,351

133%

 Net earned premium

  59,990

  28,626

110%

 Net insurance claims & operating expenses

  (56,699)

  (26,752)

112%

Underwriting result

  3,291

  1,874

76%

Investment Income

  (3,560)

  179


Operating loss / profit

  (269)

  2,053


Combined ratio

94.5%

 

93.5%


 

The increase in the gross written premiums reflect the growth of the capacity portfolio to £233m for the 2022 underwriting year.  The combined portfolio ratio of 94.5% has been impacted by the early stage contribution of the 2022 underwriting year.

 


 2020 and prior

£000's

 2021

£000's

 2022

£000's

 Total

£000's

Net Earned Premium

  3,306

  35,444

  21,240

  59,990

Underwriting result

  3,041

  5,229

  (4,979)

  3,291

Investment Income

  (2,315)

  (941)

  (304)

  (3,560)

Operating (loss) / profit

  726

  4,288

  (5,283)

  (269)

Quota Share Reinsurers

  (150)

  (1,621)

  1,388

  (383)

Total Group Underwriting Profit/(loss)

  576

  2,667

  (3,895)

  (652)

 

The underwriting contribution from the 2020 and 2021 underwriting years reflects the expected development of those years after recognising underwriting losses at an early stage.  2022 to date represents an initial loss due to the higher proportion of expenses and reinsurance costs allocated to the first six months of the underwriting year.  The future recognition of the Net Earned Premiums from 2022 year, given the increased underwriting exposure, will benefit the underwriting result for the full year.

 


6 months to 30th June


2022

2021


£000's

£000's

Stop loss costs

(1,224)

(968)

Operating costs

(2,389)

(1,139)

Total Costs

(3,612)

(2,107)

 

Operating costs have increased to £2.4m as a potential significant acquisition was contemplated in the period where costs of due diligence were incurred of £0.7m and as £20m (2021-£7.6m) of additional underwriting capital has been sourced through a bank facility adding a further £0.2m to the costs.  The stop loss for Helios retained capacity continues to be bought which has a 10% indemnity to protect the Group from a loss excess of 7.5% loss for the 2022 underwriting year. The increase in the retained capacity of 84% to £172m contributed to the increase in the stop loss costs incurred.

 

Financial Investments

£000's

Investment Return - £000's

Yield

Syndicate investment assets

  127,615

(3,560)

(2.8%)

Group investment assets

  58,838

85

0.1%


  186,453

(3,475)

(1.9%)

 

Helios's share of the syndicate investments incurred a loss in the first six months of 2.8% as interest rates increased and this has masked the improvement in underwriting margins.  Group investment funds remained in cash and targeted investments have since been made.  The Group funds will continue to earn interest for the balance of the year. The Group's share of the syndicate investments is expected to continue to increase to reflect the growth of the capacity portfolio.

 

The positive momentum in both insurance and reinsurance pricing has continued into 2022. The improvement in underwriting conditions over the last five years will provide a platform for better prospects for underwriting margins over the next few years.

 

Helios has increased its retained capacity to £172m for the 2022 underwriting year to take advantage of the current market conditions.  The proportion of the capacity reinsured has been reduced while the capital provided by the reinsurers has remained steady.    The quota  share reinsurers fund their share of the capital requirements and pay Helios a fee and a profit commission. The strategy of building a portfolio of underwriting capacity that can be accessed by alternative sources of capital is expected to be developed in the future as we regard this as an attractive opportunity to increase the fee income generated from the portfolio. 

 

Helios has received preliminary indications of pre-emptions for the 2022 year of account from the syndicates supported of £21m which are subject to approval by Lloyd's and could increase the capacity portfolio for the 2023 year of account to £254m - an increase of 9%.

 

The value of the capacity portfolio, using the 2021 weighted average prices, including the value of the expected pre-emptions for 2023 (using the 2021 weighted average capacity prices) could increase to £72m - an increase of 20%.  Should the average auctions prices in 2022 decrease by 10%, the net tangible asset value per share should still increase by 5.37p.

 

Impact of pre-emptions on capacity portfolio

£m

2022 Capacity

Capacity Value

£m

2022 YOA as at 1st January 2022

232.7

59.9

Expected Pre-emptions

21.7

12.1


254.4

72.0

Decrease of 10%


64.8

Increase in NTAV per share - 25% Corporation Tax


5.37p

 

It is expected that there will continue to be demand for the top syndicates that make up a significant proportion of the Helios Capacity Fund at the Lloyds Capacity Auctions that take place later this year.  Our strategy of building a portfolio of syndicate capacity continues to rely on the flow of LLVs for sale at reasonable prices.  The discounts achieved to the Humphrey Valuations have decreased as both Vendor expectations of future value have increased and as other purchasers have realised the value of the potential future profitability of these capacity portfolios.  There are over 17 LLV's for sale at present and it is expected that we will be able to conclude further acquisitions this year.

 

The net tangible asset value per share is £1.49p per share (Dec 2021 - £1.57p per share).  The net assets include a deferred tax provision of £13m on the value of the capacity portfolio. The reduction of corporation tax rate to 19%, will reduce the deferred tax provision by £3.5m and increase the net tangible asset per share by 4.7p.

 

IFRS 17

The Company's consolidated accounts are presently prepared in accordance with current IFRS applicable to the insurance industry. In May 2017, the IASB published its standard on insurance accounting (IFRS 17, 'Insurance Contracts') which replaces the current IFRS 4 standard. Some targeted amendments to this standard, including to the effective date, were issued in June 2020 and December 2021. IFRS 17, 'Insurance Contracts', as amended, will have the effect of introducing fundamental changes to the statutory reporting of insurance entities that prepare accounts under IFRS from 2023. Given compliance with IFRS will not be feasible due to the UK GAAP based Lloyd's information provision and syndicate disclosures, the Board is considering alternative arrangements including the use of an alternative standard, including UK GAAP. The Board is confident that an appropriate alternative will be available and a further announcement will be made in due course.

 

Financial results summary

Six months ended 30 June 2022


6 months to 30 June 2022

£'000

6 months to 30 June 2021

£'000

Year to 31 December 2021

£'000





Underwriting profits

(652)

1,102

3,399

Other Income




Fees from reinsurers

442

474

616

Corporate reinsurance recoveries

307

14

(372)

Goodwill on bargain purchase

-

-

1,219

Investment income

84

38

1,237

Total Other Income

833

526

2,700

Costs




Pre-acquisition

-

-

(1,269)

Stop loss costs

(1,224)

(968)

(1,871)

Operating costs

(2,388)

(1,140)

(3,604)

Total Costs

(3,612)

(2,108)

(6,744)

Operating profit before impairments of goodwill

and capacity

(3,431)

(480)

(645)

Tax

(214)

(1,839)

211

Revaluation of syndicate capacity

(257)

(340)

8,132

Income tax relating to the components of other

Comprehensive income

-

-

(2,766)

(Loss)/profit for the period/year

(3,902)

(2,659)

4,932

 

 

Period to 30th June 2022

Underwriting Year

Helios retained

 capacity at

30 June 2022

£m

Portfolio mid

point forecasts

Helios

Profits

£'000

2020

65.9

1.84%

576

2021

92.8

2.4%

2,667

2022

171.9

N/A

(3,895)




(653)

Period to 30th June 2021

Underwriting Year

Helios retained

 capacity at

30 June 2021

£m

Portfolio mid

point forecasts

Helios

Profits

£'000

2019

31.3

0.01%

1,062

2020

30.8

0.98%

984

2021

58.7

-

(944)




1,102

Year to 31 December 2021

Underwriting Year

Helios retained

 capacity at

 31 December

2021

£m

Portfolio mid

point forecasts

Helios

Profits

£'000

2019

67.4

2.7%

4,092

2020

66.6

0.97%

2,915

2021

93.6

-

(3,606)




3,401

 

Summary Balance Sheet

The summary Group balance sheet excludes items relating to syndicate participations. See Note 15 for further information.


6 Months to June 2022

£'000

 

6 Months to June 2021

£'000

Year to 31 December 2021

£'000

Intangible assets

60,889

31,601

60,889

Funds at Lloyd's

58,838

18,543

43,589

Other cash

13,039

52,272

16,178

Other assets

6,108

12,385

5,517

Total assets

138,874

114,801

126,173

Deferred tax

11,568

8,546

11,887

Borrowings

15,000

-

-

Other liabilities

3,587

3,409

3,052

Total liabilities

30,155

11,955

14,939

Syndicate equity

(6,910)

(3,573)

(3,488)

Total equity

101,809

99,273

107,746

Summary Group Cash Flow

The summary group cash flow sheet excludes items relating to syndicate participations. See Note 15 for further information.

 


6 months to 30 June 2022

£'000

6 months to 30 June 2021

£'000

Year to 31 December 2021

£'000





Opening Balance (free cash)

16,178

4,961

4,961





Income

 

 


Acquired on acquisition

-

-

1,939

Distribution of profits (net of tax retentions)

2,422

365

475

Transfers from Funds at Lloyds'

5,277

224

336

Investment income

55

5

95

Issue of new ordinary shares

-

53,231

53,231

Borrowings

15,000

-

-

Cancelled Reinsurance policy refunds

-

-

6,964





Expenditure

 

 


Operating costs (inc Hampden / Nomina fees)

(1,409)

(933)

(3,702)

Purchase of capacity

-

-

(2,663)

Reinsurance Cost

(857)

(1,025)

-

Acquisition of LLV's

-

-

(26,529)

Transfers to Funds at Lloyds'

(21,886)

-

(12,270)

Tax

293

(8)

(641)

Dividends paid

(2,034)

(548)

(2,018)

Revolving credit facility repayment

-

(4,000)

(4,000)

Closing balance

13,039

52,272

16,178

 

Net tangible asset per share


6 months to 30 June 2022

£'000

6 months to 30 June 2021

£'000

Year to 31 December 2021

£'000


 


 

Net tangible assets

40,919

67,642

46,856

Value of capacity (WAV)

59,796

30,826

59,796


100,715

98,468

106,652

Shares in issue - on the market

67,786

67,254

67,786

Shares in issue - total of on the market and JSOP shares

68,886

67,754

68,886

Net tangible asset value per share £ - on the market

1.49

1.46

1.57

Net tangible asset value per share £ - on the market and JSOP shares

1.46

1.45

1.55

 


Interim condensed consolidated statement of comprehensive income

Six months ended 30 June 2022

 


 

Note

6 months ended 30 June 2022

Unaudited

£'000

6 months

 ended 30 June 2021 Unaudited £'000

12 months ended 31 December 2021 Audited £'000

Gross premium written

4

124,067

53,351

106,058

Reinsurance premium ceded


(35,291)

(17,107)

(26,935)

Net premium written

4

88,776

36,244

79,123

Change in unearned gross premium provision

5

(46,338)

(15,678)

(11,201)

Change in unearned reinsurance premium provision

5

15,945

6,141

1,484



(30,393)

(9,537)

(9,717)

Net earned premium

3,4

58,383

26,707

69,406

Net investment income

6

(3,476)

185

568

Other underwriting income


442

476

723

Gain on bargain purchase


-

-

1,219

Other income


-

30

(82)

Revenue


55,349

27,398

71,834

Gross claims paid


(28,627)

(19,108)

(46,478)

Reinsurers' share of gross claims paid


7,153

4,946

11,328

Claims paid, net of reinsurance


21,474

(14,162)

(35,150)

Change in provision for gross claims

5

(17,146)

(2,118)

(15,796)

Reinsurers' share of change in provision for gross claims

5

3,879

(156)

6,204

Net change in provision for claims

5

(13,267)

(2,274)

(9,592)

Net insurance claims and loss adjustment expenses

4

(34,741)

(16,436)

(44,472)

Expenses incurred in insurance activities


(22,310)

(10,665)

(25,407)

Other operating expenses


(1,729)

(777)

(2,330)

Operating expenses


(24,039)

(11,442)

(27,737)

Operating (loss)/profit before impairments of goodwill and capacity

4

(3,431)

(480)

(645)

Impairment of goodwill


-

-

-

Impairment of syndicate capacity


-

-

-

(Loss)/profit before tax


(3,431)

(480)

(645)

Income tax charge

7

(214)

(112)

211

Income and deferred tax charge as a result of change in tax rates

7

-

(1,727)

-

(Loss)/Profit for the period


(3,645)

(2,319)

(434)

Other comprehensive income





Foreign currency translation differences


-

-

-

Revaluation of syndicate capacity


-

-

8,132

Deferred tax relating to change in tax rates on revaluation of capacity


(257)

(340)

(2,766)

Other comprehensive (loss)/income for the period, net of tax


(257)

(340)

5,366

Total other comprehensive (loss)/income for the period


(3,902)

(2,659)

4,932











(Loss)/profit for the period attributable to owners of the Parent


(3,645)

(2,319)

(434)

Total comprehensive (loss)/income for the period attributable to owners of the Parent

 

(3,902)

(2,659)

4,932

(Loss)earnings per share attributable to owners of the Parent





Basic

8

(5.38)p

(3.88)p

(0.75)p

Diluted

8

(5.38)p

(3.88)p

(0.75)p

 

The profit attributable to owners of the Parent and earnings per share set out above are in respect of continuing operations.

The notes are an integral part of these Financial Statements.


Interim condensed consolidated statement of financial position

Six months ended 30 June 2022

 


 

Note

6 months ended 30 June 2022

Unaudited

£'000

6 months ended 30 June 2021 Unaudited £'000

12 months ended 31 December 2021 Audited £'000

Assets





Intangible assets


60,889

31,601

60,889

Financial assets at fair value through profit or loss


186,453

83,047

153,844

Reinsurance assets:





- reinsurers' share of claims outstanding

5

73,074

32,800

53,433

- reinsurers' share of unearned premium

5

23,992

10,694

10,538

Other receivables, including insurance and reinsurance receivables


127,483

66,227

87,859

Deferred acquisition costs


19,424

8,119

13,615

Prepayments and accrued income


2,922

1,633

799

Cash and cash equivalents


36,064

62,143

24,624

Total assets


530,301

296,264

405,601

Liabilities





Insurance liabilities:





- claims outstanding

5

241,783

115,559

186,653

- unearned premium

5

97,509

42,974

59,611

Deferred income tax liabilities


11,568

8,546

11,965

Borrowings


15,000

-

-

Other payables, including insurance and reinsurance payables


58,147

25,640

34,927

Accruals and deferred income


4,485

4,272

4,700

Total liabilities


428,492

196,991

297,856

Equity





Equity attributable to owners of the Parent:





Share capital

11

6,931

6,817

6,931

Share premium

11

86,330

85,502

86,330

Other reserves - treasury shares

11

(110)

(50)

(110)

Retained earnings


8,658

7,004

14,595

Total equity


101,809

99,273

107,746

Total liabilities and equity


530,301

296,264

405,602

 

The Financial Statements were approved and authorised for issue by the Board of Directors on 28 September 2022, and were signed on its behalf by

Nigel Hanbury

Chief Executive

 

The notes are an integral part of these Financial Statements.

 

Interim condensed consolidated statement of changes in equity

Six months ended 30 June 2022

 





Attributable to owners of the Parent

Consolidated

 

 

Note

Share

 capital

£'000

 Share

 premium

£'000

Revaluation reserve

 Other reserves

£'000

Retained

earnings

£'000

Total

£'000

At 1 January 2022


6,931

86,330

9,348

(110)

5,247

107,746

Total comprehensive income for the year:








Loss for the year


-

-

-

-

(3,645)

(3,645)

Other comprehensive income, net of tax


-

-

(257)

-

-

(257)

Total comprehensive income for the year


-

-

(257)

-

(3,645)

(3,902)

Transactions with owners:


-

-

-

-

-

-

Dividends paid

9

-

-

-

-

(2,034)

(2,034)

Company buy back of shares

11

-

-

-

-

-

-

Share issue


-

-

-

-

-

-

Total transactions with owners


-

-

-

-

(2,034)

(2,034)

At 30 June 2022


6,931

86,330

9,091

(110)

(432)

101,810

At 1 January 2021


3,393

35,525

3,982

(50)

7,699

50,549

Total comprehensive income for the year:








Loss for the year


-

-

-

-

(2,319)

(2,319)

Other comprehensive income, net of tax


-

-

(340)

-

-

(340)

Total comprehensive income for the year


-

-

(340)

-

(2,319)

(2,659)

Transactions with owners:


-

-

-

-

-

-

Dividends paid

9

-

-

-

-

(2,018)

(2,018)

Company buy back of shares

11

-

-

-

-

-

-

Share issue


3,424

49,977

-

-

-

53,401

Total transactions with owners


3,424

49,977

-

-

(2,018)

51,383

At 30 June 2021


6,817

85,502

3,642

(50)

3,362

99,273

At 1 January 2021


3,393

35,525

3,982

(50)

7,699

50,549

Total comprehensive income for the year:








Profit for the year


-

-

-

-

(434)

(434)

Other comprehensive income, net of tax


-

-

5,366

-

-

5,366

Total comprehensive income for the year


-

-

5,366

-

(434)

4,932

Transactions with owners:








Dividends paid


-

-

-

-

(2,018)

(2,018)

Company buy back of shares

11

-

-

-

-

-

-

Share issue

11

3,538

50,805

-

(60)

-

54,283

Other comprehensive income, net of tax


-

-

-

-

-

-

Total transactions with owners


3,538

50,805

-

(60)

(2,018)

52,265

At 31 December 2021

 

6,931

86,330

9,348

(110)

5,247

107,746










 

The notes are an integral part of these Financial Statements.



Interim condensed consolidated statement of cash flows

Six months ended 30 June 2022


 

 

 

Note

6 months ended 30 June 2022 Unaudited

£'000

6 months ended 30 June 2021 Unaudited £'000

12 months ended 31 December 2021 Audited

£'000

Cash flows from operating activities





Loss before tax

 

(3,431)

(480)

(645)

Adjustments for:

 




- Other comprehensive income, gross of tax

 

-

-

-

- Interest received

 

(78)

(2)

(17)

- Investment income


3,503

(183)

(1,549)

- Recognition of negative goodwill


-

-

-

- Goodwill on bargain purchase


-

-

(1,219)

- Loss on sale of intangible assets


-

-

(12)

Changes in working capital:





-  change in fair value of financial assets held at fair value through profit or loss


(617)

(140)

1,316

-  decrease/(increase) in financial assets at fair value through profit or loss


(32,609)

2,230

(31,436)

- (increase)/decrease in other receivables

 

(47,556)

(8,729)

1,162

- decrease/(increase) in other payables

 

23,005

5,245

(3,799)

- net decrease/(increase) in technical provisions

 

59,933

6,121

18,285

Cash generated/(utilised) from operations

 

2,150

4,062

(17,914)

Income tax paid

 

(252)

-

(675)

Net cash inflow from operating activities

 

1,898

4,062

(18,589)

Cash flows from investing activities




Interest received

 

78

2

17

Investment income

 

(3,503)

183

1,549

Purchase of intangible assets


-

-

(2,984)

Proceeds from disposal of intangible assets

 

-

-

1,809

Acquisition of subsidiaries, net of cash acquired

 

-

-

(13,255)

Net cash inflow/(outflow) from investing activities

 

(3,425)

185

(12,864)

Cash flows from financing activities





Net proceeds from issue of ordinary share capital


-

53,401

Buy back of ordinary share capital


-

-

-

Payment for company buy back of shares


-

-

-

Proceeds from borrowings


15,000

-

-

Repayment of borrowings


-

(4,000)

(4,000)

Dividends paid to owners of the Parent


(2,034)

-

(2,018)

Net cash inflow from financing activities

 

12,966

49,401

47,583

Net increase in cash and cash equivalents

 

11,439

53,648

16,130

Cash and cash equivalents at beginning of period


24,625

8,495

8,495

Cash and cash equivalents at end of period

 

36,064

62,143

24,625

 

Cash held within the syndicates' accounts is £23,085,000 (2021: £9,871,000) of the total cash and cash equivalents held at the end of the period £36,064,000 (2021: £62,143,000). The cash held within the syndicates' accounts is not available to the Group to meet its day-to-day working capital requirements.

Cash and cash equivalents comprise cash at bank and in hand.

The notes are an integral part of these Financial Statements.

 


Notes to the financial statements

Six months ended 30 June 2022

1. General information

The Company is a public limited company quoted on AIM. The Company was incorporated in England, is domiciled in the UK and its registered office is 40 Gracechurch Street, London EC3V 0BT. The Company participates in insurance business as an underwriting member at Lloyd's through its subsidiary undertakings.

These condensed interim financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2021 were approved by the board of directors on 26 May 2022 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006. The financial statements have been reviewed, not audited

2. Accounting policies

Basis of preparation

The Condensed Consolidated Interim Financial Statements have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRSs) and in accordance with UK adopted International Accounting Standard (IAS) 34 Interim Financial Reporting, in accordance with the requirements of the Companies Act 2006.

 

The Condensed Consolidated Interim Financial Statements are prepared for the six months ended 30 June 2022.

 

The Condensed Consolidated Interim Financial Statements for the six months ended 30 June 2022 and 2021 are unaudited, but have been subject to review by the Group's auditors. The Condensed Consolidated Interim Financial Statements have been prepared in accordance with the accounting policies adopted for the year ended 31 December 2021, and the adoption of new and amended standards as set out further below.

 

The Condensed Consolidated Interim incorporate the Financial Statements of Helios Underwriting plc, the Parent Company, and its directly and indirectly held subsidiaries (see note 10).

 

The underwriting data on which these Condensed Consolidated Interim Financial Statements are based upon has been supplied by the managing agents of those syndicates which the Group supports. The data supplied is the 100% figures for each syndicate. The Group has applied its share of the syndicate participations to the gross figures to derive its share of the syndicates transactions, assets and liabilities.

 

Significant accounting policies

 

The Condensed Consolidated Interim Financial Statements have been prepared under the historical cost convention as modified by the revaluation of the financial assets at fair value through the profit and loss. The same accounting policies, presentation and methods of computation are followed in these Condensed Consolidated Interim Financial Statements as were applied in the preparation of the Group Financial Statements for the year ended 31 December 2021.

 

International Financial Reporting Standards

Adoption of new and revised standards

In the current year, the Group has applied new IFRSs and amendments to IFRSs issued by the IASB that are mandatory for an accounting period that begins on or after 1 January 2022.

Amendments to IFRS 3: Business combinations - Reference to the Conceptual Framework. IFRS 3 is updated so that it refers to the 2018 Conceptual Framework instead of the 1989 Framework. They also add to IFRS 3 a requirement that, for transactions and other events within the scope of IAS 37 or IFRIC 21, an acquirer applies IAS 37 or IFRIC 21 to identify the liabilities it has assumed in a business combination. Lastly, they add to IFRS 3 an explicit statement that an acquirer does not recognise contingent assets acquired in a business combination.

Amendments to IAS 16: Property, Plant and Equipment. The changes introduced amend the standard to prohibit deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognises the proceeds from selling such items, and the cost of producing those items, in profit or loss.

Amendments to IAS 37: Provisions, Contingent Liabilities and Contingent Assets. The changes specify that the 'cost of fulfilling' a contract comprises the 'costs that relate directly to the contract'. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract or an allocation of other costs that relate directly to fulfilling contracts.

Annual Improvements to IFRS Standards 2018-2020 Cycle. The pronouncement contains amendments to four International Financial Reporting Standards (IFRS 1, IFRS 9, IFRS 16 and IAS 41) as result of the IASB's annual improvements project

New standards, amendments and interpretations not yet adopted

A number of new standards and amendments adopted by the UK, as well as standards and interpretations issued by the IASB but not yet adopted by the UK, have not been applied in preparing the Consolidated Financial Statements.

The Group does not plan to adopt these standards early; instead it will apply them from their effective dates as determined by their dates of UK endorsement.  The Group continues to review the upcoming standards to determine their impact.

Notes to the financial statements

Six months ended 30 June 2022

 

IFRS 9, Financial Instruments (IASB effective date 1 January 2018) has not been applied under IFRS 4 Amendment option to defer until IFRS 17 comes into effect on 1 January 2023.

IFRS 17 "Insurance Contracts" (IASB effective date 1 January 2023).

IAS 1 Presentation of Financial Statements Amendments, Classification of Liabilities as Current or Non-current (IASB effective date 1 January 2023).

IAS 8 Accounting Policies Amendments, Changes in Accounting Estimates and Errors (IASB effective date 1 January 2023).

IAS 12 Income Taxes - Deferred Tax related to Assets and Liabilities arising from a Single Transaction (IASB effective date 1 January 2023)

IFRS 9 "Financial Instruments" (IASB effective date 1 January 2018) has not been applied under the IFRS 4 amendment option.

IFRS 9 provides a reform of financial instruments accounting to supersede IAS 39 "Financial Instruments: Recognition and Measurement". Applying IFRS 9 "Financial Instruments" with IFRS 4 "Insurance Contracts" contained an optional temporary exemption from applying IFRS 9 for entities whose predominant activity is issuing contracts within the scope of IFRS 4. The Group meets the eligibility criteria and has taken advantage of this temporary exemption not to apply this standard until the effective date of IFRS 17.

IFRS 17 "Insurance Contracts" (IASB effective date 1 January 2023) - This replaces IFRS 4 and requires an IFRS reporter to measure insurance contracts using updated estimates and assumptions that reflect the timing of cash flows and any uncertainty relating to insurance contracts. It also requires that profits are recognised as insurance services are delivered (rather than when premiums are received) and for the IFRS reporter to provide information about insurance contract profits the company expects to recognise in the future.

3. Segmental information

Nigel Hanbury is the Group's chief operating decision-maker. He has determined its operating segments based on the way the Group is managed, for the purpose of allocating resources and assessing performance.

The Group has three segments that represent the primary way in which the Group is managed, as follows:

• syndicate participation;

• investment management; and

• other corporate activities.

6 months ended 30 June 2022 Unaudited

Syndicate

participation

£'000

Investment

management

£'000

Other

corporate

activities

£'000

Total

£'000

Net earned premium

58,767

-

(383)

58,384

Net investment income

(3,561)

85

-

(3,476)

Other income

-

-

442

442

Net insurance claims and loss adjustment expenses

(34,740)

-

(1)

(34,741)

Expenses incurred in insurance activities

(21,650)

-

(660)

(22,310)

Other operating expenses

-

-

(1,729)

(1,729)

Loss before tax

(1,184)

85

(2,331)

(3,430)

 

6 months ended 30 June 2021 Unaudited

Syndicate

participation

£'000

Investment

management

£'000

Other

corporate

activities

£'000

Total

£'000

Net earned premium

27,658

-

(951)

26,707

Net investment income

157

28

-

185

Other income

-

-

506

506

Net insurance claims and loss adjustment expenses

(16,436)

-

-

(16,436)

Expenses incurred in insurance activities

(9,068)

-

(1,597)

(10,665)

Other operating expenses

-

-

(777)

(777)

Profit before tax

2,311

28

(2,819)

(480)

 

12 months ended 31 December 2021 Audited

Syndicate

participation

£'000

Investment

management

£'000

Other

corporate

activities

£'000

Total

£'000

Net earned premium

69,407

-

-

69,407

Net investment income

185

383

-

568

Other income

119

-

523

642

Net insurance claims and loss adjustment expenses

(42,423)

-

(2,319)

(44,742)

Expenses incurred in insurance activities

(24,491)

-

(916)

(25,407)

Other operating expenses

(267)

-

(2,063)

(2,330)

Gain on bargain purchase

-

-

1,219

1,219

Impairment of syndicate capacity

-

-

-

-

Profit before tax

2,531

383

(3,558)

(644)

 

The Group does not have any geographical segments as it considers all of its activities to arise from trading within the UK.

No major customers exceed 10% of revenue.

Net earned premium within 2022 other corporate activities totalling £383,000 (2021: £951,000 Net insurance claims and loss adjustment expenses - 2019, 2020 and 2021 years of account) represents the 2020, 2021 and 2022 years of account net Group quota share reinsurance premium payable to Hampden Insurance Guernsey PCC Limited - Cell 6. This net quota share reinsurance premium payable is included within "reinsurance premium ceded" in the Consolidated Statement of Comprehensive Income of the period.

4. Operating profit before impairments of goodwill and capacity


Underwriting year of account*





6 months ended 30 June 2022

2020 and prior

£'000

 

2021

£'000

 

2022

£'000

 

Sub-total

£'000

Pre-

acquisition

£'000

Corporate

 reinsurance

£'000

Other

 corporate

£'000

Total

£'000

Gross premium written

930

11,407

111,730

124,067

-

-

-

124,067

Reinsurance ceded

(96)

(2,410)

(31,178)

(33,684)

-

(383)

(1,224)

(35,291)

Net premium written

834

8,997

80,552

90,383

-

(383)

(1,224)

88,776

Net earned premium

3,306

35,444

21,240

59,990

-

(383)

(1,224)

58,383

Other income

(2,315)

(941)

(304)

(3,560)

-

442

84

(3,034)

Net insurance claims and loss adjustment expenses

578

(20,389)

(15,237)

(35,048)

-

-

307

(34,741)

Operating expenses

(843)

(9,826)

(10,982)

(21,651)

-

-

(2,388)

(24,039)

Operating profit before impairments of goodwill and capacity

726

4,288

(5,283)

(269)

-

59

(3,221)

(3,431)

Quota share adjustment

(150)

(1,621)

1,388

(383)

-

383

-

-

Operating profit before impairments of goodwill and capacity after quota share adjustment

576

2,667

(3,895)

(652)

-

442

(3,221)

(3,431)

 


Underwriting year of account*





6 months ended 30 June 2021

2019 and prior

£'000

 

2020

£'000

 

2021

£'000

 

Sub-total

£'000

Pre-

acquisition

£'000

Corporate

 reinsurance

£'000

Other

 corporate

£'000

Total

£'000

Gross premium written

285

5,823

47,243

53,351

-

-

-

53,351

Reinsurance ceded

(430)

(1,168)

(13,590)

(15,188)

-

(951)

(968)

(17,107)

Net premium written

(145)

4,655

33,653

38,163

-

(951)

(968)

36,244

Net earned premium

1,218

18,769

8,639

28,626

-

(951)

(968)

26,707

Other income

84

41

54

179

-

474

38

691

Net insurance claims and loss adjustment expenses

901

(11,323)

(6,028)

(16,450)

-

-

14

(16,436)

Operating expenses

(725)

(5,225)

(4,353)

(10,302)

-

-

(1,139)

(11,442)

Operating profit before impairments of goodwill and capacity

1,478

2,262

(1,687)

2,053

-

(477)

(2,056)

(480)

Quota share adjustment

(416)

(1,278)

743

(951)

-

(951)

-

-

Operating profit before impairments of goodwill and capacity after quota share adjustment

1,062

984

(944)

1,102

-

474

(2,056)

(480)


Underwriting year of account*





12 months ended 31 December 2021

2019

and prior

£'000

 

2020

£'000

 

2021

£'000

 

Sub-total

£'000

Pre-

acquisition

£'000

Corporate

 reinsurance

£'000

Other

 corporate

£'000

Total

£'000

Gross premium written

721

11,712

122,179

134,612

(28,554)

-

-

106,058

Reinsurance ceded

(713)

(2,569)

(28,909)

(32,191)

7,126

-

(1,871)

(26,936)

Net premium written

8

9,143

93,270

102,421

(21,428)

-

(1,871)

79,122

Net earned premium

3,426

40,573

48,693

92,692

(21,415)

-

(1,871)

69,404

Other income

206

(166)

(3)

37

(681)

616

2,456

2,428

Net insurance claims and loss adjustment expenses

5,113

(22,945)

(36,256)

(54,088)

12,037

(2,319)

(372)

(44,742)

Operating expenses

(2,261)

(12,406)

(18,254)

(32,921)

8,788

-

(3,604)

(27,737)

Operating profit before impairments of goodwill and capacity

6,484

5,056

(5,820)

5,720

(1,271)

(1,703)

(3,391)

(645)

Quota share adjustment

(2,392)

(2,141)

2,214

(2,319)

-

2,319

-

-

Operating profit before impairments of goodwill and capacity after quota share adjustment

4,092

2,915

(3,606)

3,401

(1,271)

616

(3,391)

(645)


Pre-acquisition relates to the element of results from the new acquisitions before they were acquired by the Group.

 

*   The underwriting year of account results represent the Group's share of the syndicates' results by underwriting year of account before corporate member level reinsurance and members' agents charges.

 

5. Insurance liabilities and reinsurance balances

Movement in claims outstanding


Gross

£'000

Reinsurance

£'000

Net

£'000

At 1 January 2022

186,653

53,433

133,220

Increase in reserves arising from acquisition of subsidiary undertakings

-

-

-

Movement of reserves

17,146

3,879

13,267

Other movements

37,984

15,762

22,222

At 30 June 2022

241,783

73,074

168,709

Movement in unearned premium 


Gross

£'000

Reinsurance

£'000

Net

£'000

At 1 January 2022

59,611

10,538

49,073

Increase in reserves arising from acquisition of subsidiary undertakings

-

-

-

Movement of reserves

46,338

15,945

30,393

Other movements

(8,440)

(2,491)

(5,949)

At 30 June 2022

97,509

23,992

73,517

 

Included within other movements are the 2019 and prior years' claims reserves reinsured into the 2020 year of account on which the Group does not participate and currency exchange differences.

Movement in claims outstanding


Gross

£'000

Reinsurance

£'000

Net

£'000

At 1 January 2021

113,371

30,781

82,590

Increase in reserves arising from acquisition of subsidiary undertakings

-

-

-

Movement of reserves

2,118

(156)

2,274

Other movements

70

2,175

(2,105)

At 30 June 2021

115,559

32,800

82,759

 

Movement in unearned premium 


Gross

£'000

Reinsurance

£'000

Net

£'000

At 1 January 2021

32,356

6,028

26,328

Increase in reserves arising from acquisition of subsidiary undertakings

-

-

(1)

Movement of reserves

15,678

6,141

9,537

Other movements

(5,060)

(1,475)

(3,584)

At 30 June 2021

42,974

10,694

32,280

 

Included within other movements are the 2018 and prior years' claims reserves reinsured into the 2019 year of account on which the Group does not participate and currency exchange differences.

Movement in claims outstanding


Gross

£'000

Reinsurance

£'000

Net

£'000

At 1 January 2021

113,371

30,781

82,590

Increase in reserves arising from acquisition of subsidiary undertakings

57,941

15,405

42,537

Movement of reserves

15,796

6,204

9,592

Other movements

(455)

1,043

(1,499)

At 31 December 2021

186,653

53,433

133,220

 

Movement in unearned premium 


Gross

£'000

Reinsurance

£'000

Net

£'000

At 1 January 2021

32,356

6,028

26,328

Increase in reserves arising from acquisition of subsidiary undertakings

15,649

3,095

12,553

Movement of reserves

11,201

1,484

9,717

Other movements

405

(69)

475

At 31 December 2021

59,611

10,538

49,073

 

Included within other movements are the 2018 and prior years' claims reserves reinsured into the 2019 year of account on which the Group does not participate and currency exchange differences.

6. Net investment income


6 months ended 30 June 2022 Unaudited

£'0 00

 

6  months ended 30 June 2021 Unaudited £'000

12 months ended 31 December

2021 Audited

£'000

Investment income

(3,503)

183

1,549

Realised (losses)/gains on financial assets at fair value through profit or loss

12

-

392

Unrealised (losses)/gains on financial assets at fair value through profit or loss

(61)

-

(1,316)

Investment management expenses

(2)

-

(74)

Bank interest

78

2

17

Net investment income

(3,476)

185

568

Included within Investment income are investment losses of £3,560,000 from Syndicate participations.

7. Income tax charge

Analysis of tax charge/(credit) in the period


6 months ended 30 June 2022 Unaudited

£'000

 

 

6 months ended 30 June 2021 Unaudited  £'000

12 months ended 31 December 2021 Audited

£'000

Income tax credit

214

1,839

(210)

 

The income tax expense is recognised based on management's best estimate of the weighted average annual income tax rate expected for the full financial year. The estimated average annual tax rate used is 19.00% (2021: 19.00%). 

On 23 September 2022, the Chancellor announced that next year's increase in the corporation tax rate from 19% to 25% will be cancelled.  The deferred tax asset provided in the financial statements has been calculated at 25% being the substantively enacted corporation tax rate at the Balance Sheet date.  The maximum impact of the reduction in the corporation tax rate is a reduction in the deferred tax asset of £3.5m.

8. Earnings per share

Basic earnings per share is calculated by dividing the profit attributable to ordinary shareholders after tax by the weighted average number of ordinary shares outstanding during the period.

Diluted earnings per share is calculated by dividing the net profit attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the period, plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.

Earnings per share has been calculated in accordance with IAS 33 "Earnings per share".

The earnings per share and weighted average number of shares used in the calculation are set out below:


6 months ended 30 June 2022 Unaudited

 

 

6 months ended 30 June 2021 Unaudited

 

12 months ended 31 December 2021 Audited

 

(Loss)/profit for the year after tax attributable to ordinary equity holders of the parent

(3,645,000)

(2,319,000)

(434,000)

Basic - weighted average number of ordinary shares*

67,786,212

59,704,671

58,058,164

Weighted average number of ordinary shares for diluted earnings per share*

67,786,212

59,704,671

58,058,164

Basic (loss)/earnings per share

(5.38)p

(3.88)p

(0.75)p

Diluted (loss)/earnings per share

(5.38)p

(3.88)p

(0.75)p

* Diluted loss per share is not permitted to be reduced from the basic loss per share.

9. Dividends paid or proposed

It was proposed and agreed at the AGM on 29 June 2022 that a dividend of 3p would be payable.

10. Investments in subsidiaries


30 June

2022

£'000

30 June

2021

£'000

31 December

2021

£'000

Total

71,362

45,335

71,362

 

 

 

Direct/indirect

interest

30 June 2022

ownership

31 December 2021

ownership

Principal activity

Nameco (No. 917) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Devon Underwriting Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nameco (No. 346) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Pooks Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Charmac Underwriting Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

RBC CEES Trustee Limited(ii)

Direct

100%

100%

Joint Share Ownership Plan

Nottus (No 51) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Chapman Underwriting Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Llewellyn House Underwriting Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Advantage DCP Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Romsey Underwriting Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Helios UTG Partner Limited(i)

Direct

100%

100%

Corporate partner

Salviscount LLP

Indirect

100%

100%

Lloyd's of London corporate vehicle

Inversanda LLP

Indirect

100%

100%

Lloyd's of London corporate vehicle

Fyshe Underwriting LLP

Indirect

100%

100%

Lloyd's of London corporate vehicle

Nomina No 505 LLP

Indirect

100%

100%

Lloyd's of London corporate vehicle

Nomina No 321 LLP

Indirect

100%

100%

Lloyd's of London corporate vehicle

Nameco (No. 409) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nameco (No. 1113) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Catbang 926 Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Whittle Martin Underwriting

Direct

100%

100%

Lloyd's of London corporate vehicle

Nameco (No 408) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nomina No 084 LLP

Indirect

100%

100%

Lloyd's of London corporate vehicle

Nameco (No 510) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nameco (No 544) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

N J Hanbury Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nameco (No 1011) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nameco (No 1111) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nomina No 533 LLP

Indirect

100%

100%

Corporate partner

North Breache Underwriting Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

G T C Underwriting Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Hillnameco Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nameco (No 2012) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nameco (No 1095) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

New Filcom Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Kemah Lime Street Capital

Direct

100%

100%

Lloyd's of London corporate vehicle

Nameco (No 1130) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nomina No 070 LLP

Indirect

100%

100%

Corporate partner

Nameco (No 389) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nomina No 469 LLP

Indirect

100%

100%

Corporate partner

Nomina No 536 LLP

Indirect

100%

100%

Corporate partner

Nameco (No 301) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nameco (No 1232) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Shaw Lodge Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Queensberry Underwriting

Direct

100%

100%

Lloyd's of London corporate vehicle

Nomina No 472 LLP

Indirect

100%

100%

Corporate partner

Nomina No 110 LLP

Indirect

100%

100%

Corporate partner

Chanterelle Underwriting Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Kunduz LLP

Indirect

100%

100%

Corporate partner

Exalt Underwriting Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nameco (No 1110) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Clifton 2011 Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nomina No 378 LLP

Indirect

100%

100%

Corporate partner

Gould Scottish Limited Partnership

Indirect

100%

100%

Corporate partner

 

 (i)  Helios UTG Partner Limited, a subsidiary of the Company, owns 100% of Salviscount LLP, Inversanda LLP, Fyshe Underwriting LLP, Nomina No 505 LLP, Nomina No 321 LLP Nomina No 084 LLP, Nomina No 533 LLP, Nomina No 070 LLP, Nomina No 469 LLP, Nomina No 536 LLP,  Nomina No 472 LLP, Nomina No 110 LLP, Kunduz LLP. Nomina No 348 LLP and Gould Scottish Limited Partnership. The cost of acquisition of these LLPs is accounted for in Helios UTG Partner Limited, their immediate parent company.

 

  (ii)  RBC CEES Trustee Limited was an incorporated entity in year 2017 to satisfy the requirements of the Joint Share Ownership.

 

11. Share capital and share premium

 

Number of

shares (i)

Ordinary share

capital

£'000

Partly

paid ordinary

share capital

£'000

Share

premium

£'000

Total

£'000

Ordinary shares of 10p each and share premium at 31 December 2021

69,305,381

6,821

110

86,330

93,261

Ordinary shares of 10p each and share premium at 30 June 2022

69,305,381

6,821

110

86,330

93,261

 

 (i) Number of shares

 

30 June 2022

31 December 2021

Allotted, called up and fully paid ordinary shares:



On the market

67,786,212

67,786,212

Company buy back of ordinary shares held in treasury

419,169

419,169

 

68,205,381

68,205,381

Uncalled and partly paid ordinary share under the JSOP scheme (ii)

1,100,000

1,100,000

 

69,305,381

69,305,381

 

(ii)  The partly paid ordinary shares are not entitled to dividend distribution rights during the year.

12. Related party transactions

 

A number of subsidiary companies have entered into quota share reinsurance contracts for the 2020, 2021 and 2022 years of account with protected cell companies of Hampden Insurance PCC (Guernsey) Limited.

Nigel Hanbury, a Director of Helios Underwriting plc and its subsidiary companies, is also a director and majority shareholder in Hampden Insurance Guernsey PCC Limited. Hampden Capital plc, a substantial shareholder in Helios Underwriting plc, is also a substantial shareholder in Hampden Insurance Guernsey PCC Limited - Cell 6.  Under quota share agreements between Cell 6 and certain Helios subsidiaries, the Group accrued a net reinsurance premium recovery of £2,596,000 (2021: £4,232,000) during the period.

In addition, HIPCC provide stop loss, portfolio stop loss and HASP reinforce policies for the company.

HIPCC Limited acts as an intermediary for the reinsurance products purchased by Helios. An arrangement has been put in place so that 51% of the profits generated by HIPCC (being Nigel Hanbury's share) in respect of the business relating to Helios will be repaid to Helios for the business transacted for the 2021 and subsequent underwriting years.

13. Ultimate controlling party

The Directors consider that the Group has no ultimate controlling party.

 

14. Syndicate participations

The syndicates and members' agent pooling arrangements ("MAPA") in which the Company's subsidiaries participate as corporate members of Lloyd's are as follows:

 



Allocated capacity per year of account

Syndicate or
MAPA number

Managing or members' agent

2022

£

2021

£

2020

£

33

Hiscox Syndicates Limited

13,830,779

13,830,793

14,193,201

218

IQUW Syndicate Management Limited

7,070,046

7,070,053

6,558,839

318

Cincinnati Global Underwriting Agency Limited

992,637

992,635

404,687

386

QBE Underwriting Limited

2,543,190

2,312,008

2,249,975

510

Tokio Marine Kiln Syndicates Limited

32,301,169

22,594,020

19,595,324

557

Tokio Marine Kiln Syndicates Limited

3,458,576

3,458,576

3,236,695

609

Atrium Underwriters Limited

12,071,789

11,612,849

10,545,464

623

Beazley Furlonge Limited

21,576,129

18,913,248

16,129,766

727

S A Meacock & Company Limited

2,059,162

1,999,191

3,053,284

1176

Chaucer Syndicates Limited

2,784,204

2,784,212

2,813,031

1200

Argo Managing Agency Limited

10,050,000

-

160,714

1729

Asta Managing Agency Limited

10,148,838

131,123

295,476

1902

Asta Managing Agency Limited

10,000,002

-

-

1969

Apollo Syndicate Management Limited

5,610,170

400,001

-

1971

Apollo Syndicate Management Limited

6,467,147

-

-

1991

Coverys Manageming Agency Limited

-

-

53,345

2010

Lancashire Syndicates Limited

10,137,041

9,547,814

4,188,754

2014

Pembroke Managing Agency Limited

-

-

-

2121

Argenta Syndicate Management Limited

10,019,394

5,472,177

2,473,682

2288

Astra Managing Agency Limited

-

-

8,139

2525

Asta Managing Agency Limited

1,281,801

1,193,027

1,149,189

2689

Asta Managing Agency Limited

10,025,276

438,655

518,866

2791

Managing Agency Partners Limited

9,217,847

9,217,851

10,303,120

4242

Asta Managing Agency Limited

12,561,664

8,483,065

423,592

4444

Canopius Managing Agents Limited

-

162,189

281,110

5623

Beazley Furlonge Limited

6,894,032

4,769,792

2,883,293

5886

Asta Managing Agency Limited

22,520,345

12,054,953

7,277,465

6103

Managing Agency Partners Limited

3,073,952

2,704,446

2,076,669

6104

Hiscox Syndicates Limited

1,702,213

1,695,393

1,738,097

6107

Beazley Furlonge Limited

1,562,047

1,548,102

1,562,779

6117

Argo Managing Agency Limited

2,741,022

1,715,599

1,556,376

6133

Apollo Syndicate Management Limited

-

-

14,400

Total

 

232,700,472

145,101,772

115,745,332

15. Group-owned net assets

The Group statement of financial position includes the following assets and liabilities held by the syndicates on which the Group participates. These assets are subject to trust deeds for the benefit of the relevant syndicates' insurance creditors. The table below shows the split of the statement of financial position between Group and syndicate assets and liabilities:

 


30 June 2022

30 June 2021

31 December 2021

Group

£'000

Syndicate

£'000

Total

£'000

Group

£'000

Syndicate

£'000

Total

£'000

Group

£'000

Syndicate

£'000

Total

£'000

Assets









 

Intangible assets

60,889

-

60,889

31,601

-

31,601

60,889

-

60,889

Financial assets at fair value through profit or loss

58,838

127,615

186,453

18,543

64,504

83,047

43,589

110,256

153,844

Reinsurance assets:










- reinsurers' share of claims outstanding

60

73,014

73,074

61

32,739

32,800

60

53,373

53,433

- reinsurers' share of unearned premium

-

23,992

23,992

-

10,694

10,694

-

10,538

10,538

Other receivables, including insurance and reinsurance receivables

4,885

122,598

127,483

11,496

  54,731

66,227

5,456

82,403

87,859

Deferred acquisition costs

-

19,424

19,424

-

8,119

8,119

-

13,615

13,615

Prepayments and accrued income

1,223

1,699

2,922

828

805

1,633

1

798

799

Cash and cash equivalents

12,979

23,085

36,064

52,272

9,871

62,143

16,178

8,447

24,624

Total assets

138,874

391,427

530,301

114,801

181,463

296,264

126,173

279,430

405,601

Liabilities

 

 

 

 

 

 




Insurance liabilities:

 

 

 

 

 

 




- claims outstanding

-

241,783

241,783

-

115,559

115,559

-

186,653

186,653

- unearned premium

-

97,509

97,509

-

42,974

42,974

-

59,611

59,611

Deferred income tax liabilities

11,568

-

11,568

8,546

-

8,546

11,887

79

11,965

Borrowings

15,000

-

15,000

-

-

-

-

-

-

Other payables, including insurance and reinsurance payables

844

57,303

58,147

89

25,551

25,640

445

34,482

34,926

Accruals and deferred income

2,743

1,742

4,485

3,320

952

4,272

2,607

2,093

4,700

Total liabilities

30,155

398,337

428,492

11,955

185,036

196,991

14,939

282,918

297,855

Equity attributable to owners of the Parent

 

 

 

 

 

 




Share capital

6,931

-

6,931

6,817

-

6,817

6,931

-

6,931

Share premium

86,330

-

86,330

85,502

-

85,502

86,330

-

86,330

Revaluation reserve

-

-

-

3,642

-

3,642

-

-

-

Other reserves

(110)

-

(110)

(50)

-

(50)

(110)

-

(110)

Retained earnings

15,568

(6,910)

8,658

6,935

(3,573)

3,362

18,083

(3,488)

14,595

Total equity

108,719

(6,910)

101,809

102,846

(3,573)

99,273

111,234

(3,488)

107,746

Total liabilities and equity

138,874

391,427

530,301

114,801

181,463

296,264

126,173

279,430

405,601

 

 

The Interim Report will be made available in electronic format on the Company's website, www.huwplc.com .

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
IR QVLFLLKLEBBE
UK 100

Latest directors dealings