Half Yearly Report

RNS Number : 7901S

Helios Underwriting Plc

29 September 2014

 



29 September 2014

Helios Underwriting plc

("Helios Underwriting" or the "Company")

Interim results for the six months ended 30 June 2014

Helios Underwriting plc, which provides investors with a limited liability direct investment into the Lloyd's insurance market, announces its unaudited results for the six months ended 30 June 2014.

Chairman's Statement

This has been another good period where we have utilised the capital released by the initial quota share and as a result have been able to continue to increase our underwriting capacity to £21.3 million at the period end through the acquisition of Nomina No 380 LLP on 16 January 2014 for £557,000, Bernul Limited on 27 March 2014 for £823,000 and Nomina No 372 LLP on 2 May 2014 for £480,000.   The open years of HUW owned vehicles have improved to a degree that had been anticipated at the time of purchase. We have also seen an increase in the number of vehicles that are available for sale, which may lead to lower prices in due course and supports our ongoing strategy to increase underwriting capacity through acquisition.

The Parent Company's adjusted net assets plus Humphrey & Co valuation of the Group's underwriting subsidiaries at the period end is £14.3m or £1.69 per share based on current legislation.

Market conditions over the period continue to worsen.  We have now opted for an increase to the quota share for the 2014 underwriting year of account from 50% to 70% as a result.  We have included two further reinsurers thereby increasing our diversity.

Sir Michael Oliver

Non-executive Chairman

Condensed Consolidated Statement of Financial Position

At 30 June 2014

		30 June 2014		30 June 2013		31 December 2013
		Unaudited		Unaudited		Audited
	Note	£'000		£'000		£'000
Assets
Intangible assets		3,828		1,571		2,929
Deferred income tax assets		-		-		-
Reinsurance share of insurance liabilities
- Reinsurers' share of outstanding claims	3	4,221		3,658		4,154
- Reinsurers' share of unearned premiums	3	1,637		1,379		800
Other receivables, including insurance receivables		14,438		9,285		11,554
Prepayments and accrued income		2,307		1,577		1,569
Financial assets at fair value	8	21,909		19,817		22,213
Cash and cash equivalents		3,368		2,270		1,066
Total assets		51,708		39,557		44,285
Liabilities
Insurance liabilities:
- Claims outstanding	3	23,668		17,487		21,596
- Unearned premiums	3	9,415		6,694		5,968
Deferred income tax liabilities		1,603		978		1,656
Other payables, including insurance payables		5,909		4,108		4,116
Accruals and deferred income		1,515		733		1,123
Total liabilities		42,110		30,000		34,459
Shareholders' equity
Share capital	9	853		853		853
Share premium	9	6,996		6,996		6,996
Retained earnings	10	1,749		1,708		1,977
Total shareholders' equity		9,598		9,557		9,826
Total liabilities and shareholders' equity		51,708		39,557		44,285

Condensed Consolidated Income Statement

Six months ended 30 June 2014

		6 months ended 30 June 2014		6 months ended 30 June 2013		12 months ended 31 December 2013
		Unaudited		Unaudited		Audited
	Note	£'000		£'000		£'000
Gross premium written		10,183		7,158		11,938
Reinsurance premium ceded		(2,008)		(1,634)		(2,251)
Net premiums written		8,175		5,524		9,687
Change in unearned gross premium provision		(2,435)		(1,626)		(29)
Change in unearned reinsurance premium provision		686		689		43
		(1,749)		(937)		14
Net earned premium	2	6,426		4,587		9,701
Net investment income	4	268		24		208
Other underwriting  income		-		-		-
Other income		-		110		-
Revenue		6,694		4,721		9,909
Gross claims paid		(3,291)		(2,855)		(5,867)
Reinsurance share of gross claims paid		593		575		1,134
Claims paid, net of reinsurance		(2,698)		(2,280)		(4,733)
Change in provision for gross claims		(464)		4		1,148
Reinsurance share of change in provision for gross claims		(328)		(95)		(478)
Net change in provision for claims		(792)		(91)		670
Net insurance claims and loss adjustment expenses	2	(3,490)		(2,371)		(4,063)
Expenses incurred in insurance activities	2	(2,203)		(1,300)		(4,042)
Other operating expenses	2	(477)		(222)		(524)
Operating expenses		(2,680)		(1,522)		(4,566)
Operating profit before goodwill	2	524		828		1,280
Goodwill on bargain purchase	11	115		-		133
Impairment of goodwill	11	(5)		-		(98)
Amortisation of syndicate capacity		(438)		(226)		(462)
Profit before tax		196		602		853
Income tax charge	5	(40)		(140)		(122)
Profit attributable to equity shareholders	10	156		462		731
Earnings per share attributable to equity shareholders
Basic and diluted	6	1.83p		5.42p		8.57p

Condensed Consolidated Statement of Cash Flows

Six months ended 30 June 2014

	6 months ended 30 June 2014		6 months ended  30 June 2013		12 months ended 31 December 2013
	Unaudited		Unaudited		Audited
	£'000		£'000		£'000
Cash flow from operating activities
Results of operating activities	196		602		853
Interest received	(3)		-		(2)
Investment income	(240)		(49)		(381)
Goodwill on bargain purchase	(115)		-		(133)
Impairment of goodwill	5		-		98
Profit on sale of intangible assets	-	-	-		8
Amortisation of intangible assets	438		226		462
Change in fair value of investments	41		93		137
Changes in working capital:
(Increase)/decrease in other receivables	(1,214)		(303)		2,687
Increase(Decrease) in other payables	978		(479)		(1,336)
Net increase in technical provisions	274		(381)		(3,273)
Income tax paid	(49)		(93)		(86)
Net cash inflow/(outflow) from operating activities	311		(384)		(966)
Cash flows from investing activities
Interest received	3		-		2
Investment income	240		49		381
Purchase of intangible assets	-		-		(3)
Net inflow of financial assets at fair value	3,749		1,161		3,276
Acquisition of subsidiary, net of cash acquired	(1,617)		-		(3,070)
Proceeds from disposal of intangible assets	-		-		2
Net cash used in investing activities	2,375		1,210		588
Cash flows from financing activities
Dividends paid	(384)		-		-
Net cash used in financing activities	(384)		-		-
Net increase/(decrease) in cash and cash equivalents	2,302		826		(378)
Cash and cash equivalents at beginning of period	1,066		1,444		1,444
Cash, cash equivalents and bank overdrafts at end of period	3,368		2,270		1,066

Condensed Statement of Changes in Shareholders' Equity

Six months ended 30 June 2014

For the six months ended 30 June 2014

		Ordinary share capital	Share Premium	Retained Earnings	Total
		£'000	£'000	£'000	£'000
At 1 January 2014		853	6,996	1,977	9,826
Profit for the period attributable to equity shareholders		-	-	156	156
Dividends paid		-	-	(384)	(384)
At 30 June 2014		853	6,996	1,749	9,598

For the six months ended 30 June 2013

		Ordinary share capital	Share Premium	Retained Earnings	Total
		£'000	£'000	£'000	£'000
At 1 January 2013		853	6,996	1,246	9,095
Profit for the period attributable to equity shareholders		-	-	462	462
At 30 June 2013		853	6,996	1,708	9,557

For the twelve months ended 31 December 2013

		Ordinary share capital	Share Premium	Retained Earnings	Total
		£'000	£'000	£'000	£'000
At 1 January 2013		853	6,996	1,246	9,095
Profit for the year attributable to equity shareholders		-	-	731	731
At 31 December 2013		853	6,996	1,977	9,826

Notes to the Interim Financial Statements

Six months ended 30 June 2014

1.      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 International Accounting Standard (IAS) 34 Interim Financial Reporting.

The Condensed Consolidated Interim Financial Statements are prepared for the six months ended 30 June 2014.

The Condensed Consolidated Interim Financial Statements incorporate the results of Helios Underwriting plc, Hampden Corporate Member Limited, Nameco (No. 365) Limited, Nameco (No. 605) Limited, Nameco (No. 321) Limited, Nameco (No. 917) Limited, Nameco (No. 229) Limited, Nameco (No. 518) Limited, Nameco (No. 804) Limited, Halperin Limited, Bernul Limited, Nomina No 035 LLP, Nomina No 342 LLP, Nomina No 380 LLP, Nomina No 372 LLP and Helios UTG Partner Limited.

The Condensed Consolidated Interim Financial Statements for the six months ended 30 June 2014 and 2013 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 2013.

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. 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 2013.  The new standards and amendments to standards and interpretations effective after 1 January 2014, as disclosed in the Annual Report for the year ended 31 December 2013, have not had a significant impact on the Condensed Consolidated Interim Financial Statements at 30 June 2014.

2.      Segmental information

The Group has three primary segments which represent the primary way in which the Group is managed:

·      Syndicate participation;

·      Investment management;

·      Other corporate activities.

6 months ended 30 June 2014 Unaudited	Syndicate participation	Investment management	Other corporate activities	Total
	£'000	£'000	£'000	£'000
Net earned premium	6,502	-	(76)	6,426
Net investment income	244	24	-	268
Other income	-	-	-	-
Net insurance claims and loss adjustment expenses	(3,490)	-	-	(3,490)
Expenses incurred in insurance activities	(2,030)	-	(173)	(2,203)
Other operating expenses	-	-	(477)	(477)
Goodwill on bargain purchase	-	-	115	115
Impairment of goodwill	-	-	(5)	(5)
Amortisation of syndicate capacity	-	-	(438)	(438)
Profit before tax	1,226	24	(1,054)	196

6 months ended 30 June 2013 Unaudited	Syndicate participation	Investment management	Other corporate activities	Total
	£'000	£'000	£'000	£'000
Net earned premium	4,587	-	-	4,587
Net investment income	21	3	-	24
Other income	-	-	110	110
Net insurance claims and loss adjustment expenses	(2,397)	-	26	(2,371)
Expenses incurred in insurance activities	(1,300)	-	-	(1,300)
Other operating expenses	(139)	-	(83)	(222)
Goodwill on bargain purchase	-	-	-	-
Impairment of goodwill	-	-	-	-
Amortisation of syndicate capacity	-	-	(226)	(226)
Profit before tax	772	3	(173)	602

12 months ended 31 December 2013 Audited	Syndicate participation	Investment management	Other corporate activities	Total
	£'000	£'000	£'000	£'000
Net earned premium	9,723	-	(22)	9,701
Net investment income	247	(39)	-	208
Other income	-	-	-	-
Net insurance claims and loss adjustment expenses	(4,063)	-	-	(4,063)
Expenses incurred in insurance activities	(4,042)	-	-	(4,042)
Other operating expenses	51	-	(575)	(524)
Goodwill on bargain purchase	-	-	133	133
Impairment of goodwill	-	-	(98)	(98)
Amortisation of syndicate capacity	-	-	(462)	(462)
Profit before tax	1,916	(39)	(1,024)	853

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 2014 other corporate activities totalling (£76,000) (2013: (£22,000) includes the net Group quota share reinsurance premium payable to Hampden Insurance PCC (Guernsey) Limited - Cell 6 for the 2013 and 2014 underwriting years of accounts of (£26,000) (2013: £22,000) and the Stop loss premium payable to Hampden Insurance PCC (Guernsey) Limited - Cell 7 for the 2014 underwriting year of account of (£50,000) (2013: £nil).

Syndicate participation represents the Groups direct share of the underlying syndicate's results for the period. 

3.      Insurance liabilities and reinsurance balances

Movement in claims outstanding 

	Gross		Reinsurance		Net
	£'000		£'000		£'000
At 1 January 2014	21,596		4,154		17,442
Increase in reserves arising from acquisition of subsidiary undertaking	4,198		(818)		5,016
Movement of reserves	464		(328)		792
Other movements	(2,590)		1,213		(3,803)
At 30 June 2014	23,668		4,221		19,447

Movement in unearned premium

	Gross		Reinsurance		Net
	£'000		£'000		£'000
At 1 January 2014	5,968		800		5,168
Increase in reserves arising from acquisition of subsidiary undertaking	1,108		(147)		1,255
Movement of reserves	2,435		686		1,749
Other movements	(96)		298		(394)
At 30 June 2014	9,415		1,637		7,778

Included within other movements are the 2011 and prior years' reinsured into the 2012 year of account on which the Group does not participate and currency exchange differences.

4.      Net investment income

	6 months ended 30 June		6 months ended 30 June		12 months ended 31 December
	2014		2013		2013
	Unaudited		Unaudited		Audited
	£'000		£'000		£'000
Investment income	240		49		381
Realised gains on financial investments at fair value through income statement	2		129		5
Unrealised gains/(losses) on financial investments at fair value through income statement	23		(144)		(137)
Investment management expenses	-		(10)		(43)
Bank interest	3		-		2
Net investment income	268		24		208

5.      Income tax expense

	6 months ended 30 June		6 months ended 30 June		12 months ended 31 December
	2014		2013		2013
	Unaudited		Unaudited		Audited
	£'000		£'000		£'000
Income tax expense	(40)		(140)		(122)

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 20% (2013: 23.25%). Material disallowed terms have been adjusted for in the income tax calculation.

6.      Earnings per share

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

The Group has no dilutive potential ordinary shares.

Earnings per share have been calculated in accordance with IAS 33.

Reconciliation of the earnings and weighted average number of shares used in the calculation is set out below.

	6 months ended 30 June		6 months ended 30 June		12 months  ended 31 December
	2014		2013		2013
	Unaudited		Unaudited		Audited
Profit for the period	£156,000		£462,000		£731,000
Weighted average number of shares in issue	8,526,948		8,526,948		8,526,948
Basic and diluted earnings per share (p)	1.83p		5.42p		8.57p

7.      Dividends

During the period dividends of 4.5p per share (2013 - Nil) were paid, totalling £384,000 (see note 10).

8.      Financial assets at fair value

The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

As at 30 June 2014, the Group held £18,408,000 (31 December 2013: £17,709,000) Level 1 Financial Assets and £3,501,000 (31 December 2013:  £2,108,000) Level 2 Financial Assets. The Group has no level 3 investments (31 December 2013 £Nil).

9.      Share capital and share premium

Allotted, called up and fully paid		Ordinary Share  Capital  £'000	Share Premium £'000	Total £'000
8,526,948 ordinary shares of 10p each and share premium at 30 June 2013		853	6,996	7,849
8,526,948 ordinary shares of 10p each and share premium at 31 December 2013		853	6,996	7,849
8,526,948 ordinary shares of 10p each and share premium at 30 June 2014		853	6,996	7,849

10.    Retained earnings

	30 June		30 June		31 December
	2014		2013		2013
	Unaudited		Unaudited		Audited
	£'000		£'000		£'000
Group
At 1 January 2014	1,977		1,246		1,246
Profit attributable to equity shareholders	156		462		731
Dividends paid	(384)		-		-
At 30 June 2014	1,749		1,708		1,977

11.    Acquisition of limited liability vehicles

In order to increase the Group's underwriting capacity, the Company has, since the balance sheet date, acquired 100% of the voting rights (either directly or indirectly) of the following Limited Liability Vehicles:

Nomina No 380 LLP

On 16 January 2014 Helios UTG Partner Limited, a 100% subsidiary of the Company, became a 100% corporate partner in Nomina No 380 LLP for a total consideration of £557,000.  Nomina No 380 LLP is incorporated in England and Wales and is a member of Lloyd's.

The acquisition has been accounted for using the purchase method of accounting. After the alignment of accounting policies and other adjustments to the valuation of assets and liabilities to reflect their fair value at acquisition, the fair value of the net assets was £622,000. Negative goodwill of £65,000 arose on acquisition and has been immediately recognised as goodwill on bargain purchase in the income statement. The following table explains the fair value adjustments made to the carrying values of the major categories of assets and liabilities at the date of acquisition:

	Carrying value £'000	Adjustments £'000	Fair value £'000
Intangible assets	442	82	524
Reinsurance assets:
- reinsurers' share of claims outstanding	279	-	279
- reinsurers' share of unearned premium	109	-	109
Other receivables, including insurance receivables	724	-	724
Prepayments and accrued income	104	-	104
Financial assets at fair value	1,228	-	1,228
Cash and cash equivalents	81	-	81
Insurance liabilities:
- claims outstanding	(1,451)	-	(1,451)
- unearned premiums	(579)	-	(579)
Deferred income tax liabilities	-	(55)	(55)
Other payables, including insurance payables	(293)	-	(293)
Accruals and deferred income	(49)	-	(49)
Net assets acquired	595	27	622
Satisfied by:
Cash and cash equivalents	557	-	557
Negative goodwill	(38)	(27)	(65)

Bernul Limited

On 27 March 2014 Helios Underwriting plc acquired 100% of the issued share capital of Bernul Limited for a total consideration of £823,000. Bernul Limited is incorporated in England and Wales and is a corporate member of Lloyd's.

The acquisition has been accounted for using the purchase method of accounting. After the alignment of accounting policies and other adjustments to the valuation of assets and liabilities to reflect their fair value at acquisition, the fair value of the net assets was £818,000. Goodwill of £5,000 arose on acquisition. The following table explains the fair value adjustments made to the carrying values of the major categories of assets and liabilities at the date of acquisition:

	Carrying value £'000	Adjustments £'000	Fair value £'000
Intangible assets	1	322	323
Reinsurance assets:
- reinsurers' share of claims outstanding	147	-	147
- reinsurers' share of unearned premium	59	-	59
Other receivables, including insurance receivables	768	-	768
Prepayments and accrued income	80	-	80
Financial assets at fair value	1,056	-	1,056
Cash and cash equivalents	79	-	79
Insurance liabilities:
- claims outstanding	(970)	-	(970)
- unearned premiums	(358)	-	(358)
Deferred income tax liabilities	(52)	(64)	(116)
Other payables, including insurance payables	(215)	-	(215)
Accruals and deferred income	(35)	-	(35)
Net assets acquired	560	258	818
Satisfied by:
Cash and cash equivalents	823	-	823
Goodwill	263	258	5

Nomina No 372 LLP

On 2 May 2014 Helios UTG Partner Limited, a 100% subsidiary of the Company, became a 100% corporate partner in Nomina No 372 LLP for £480,000.  Nomina No 372 LLP is incorporated in England and Wales and is a member of Lloyd's.

The acquisition has been accounted for using the purchase method of accounting. After the alignment of accounting policies and other adjustments to the valuation of assets and liabilities to reflect their fair value at acquisition, the fair value of the net assets was £530,000. Negative goodwill of £50,000 arose on acquisition and has been immediately recognised as goodwill on bargain purchase in the income statement. The following table explains the fair value adjustments made to the carrying values of the major categories of assets and liabilities at the date of acquisition:

	Carrying value £'000	Adjustments £'000	Fair value £'000
Intangible assets	380	62	442
Reinsurance assets:
- reinsurers' share of claims outstanding	231		231
- reinsurers' share of unearned premium	80		80
Other receivables, including insurance receivables	521		521
Prepayments and accrued income	95		95
Financial assets at fair value	1,007		1,007
Cash and cash equivalents	84		84
Insurance liabilities:
- claims outstanding	(1,173)		(1,173)
- unearned premiums	(457)		(457)
Deferred income tax liabilities	-	(40)	(40)
Other payables, including insurance payables	(213)		(213)
Accruals and deferred income	(47)		(47)
Net assets acquired	508	22	530
Satisfied by:
Cash and cash equivalents	480	-	480
Negative goodwill	(28)	22	(50)

12.    Related party transactions

Helios Underwriting plc has provided inter-company loans to its subsidiaries which are repayable on three months' notice provided it does not jeopardise each subsidiary's ability to meet its liabilities as they fall due.  All inter-company loans are therefore classed as falling due within one year.  The amounts outstanding as at 30 June 2014 are set out below:

	30 June		30 June		31 December
	2014		2013		2013
	Unaudited		Unaudited		Audited
Company	£'000		£'000		£'000
Balances due from/(to) Group companies at the period end:
Hampden Corporate Member Limited	807		3,109		1,257
Nameco (No. 365) Limited	65		330		136
Nameco (No. 605) Limited	210		1,092		362
Nameco (No. 321) Limited	74		321		134
Nameco (No. 917) Limited	569		1,449		573
Nameco (No. 229) Limited	42		355		110
Nameco (No. 518) Limited	(17)		(163)		34
Nameco (No. 804) Limited	298		-		1,429
Halperin Limited	(184)		-		-
Nomina No 035 LLP	-		-		-
Nomina No 342 LLP	-		-		-
Nomina No 380 LLP	-		-		-
Bernul Limited	(263)		-		-
Nomina No 372 LLP	-		-		-
Helios UTG Partner Limited	2,143		-		1,238
Total	3,744		6,493		5,273

The Limited Liability Vehicles are 100% subsidiaries of the Company (either directly or indirectly) and have entered into a management agreement with Nomina plc. Jeremy Evans, a Director of Helios Underwriting plc and its subsidiary companies, is also a director of Nomina plc. Under the agreement, Nomina plc provides management and administration, financial, tax and accounting services to the Group for an annual fee of £66,250 (2013: £42,750).

The Limited Liability Vehicles have entered into a member's agent agreement with Hampden Agencies Limited. Jeremy Evans, a Director of Helios Underwriting plc and its subsidiary companies, is also a director of Hampden Capital plc which controls Hampden Agencies Limited. Under the agreement the Limited Liability Vehicles will pay Hampden Agencies Limited a fee based on a fixed amount, plus a fee which will vary depending upon the total level of Group underwriting capacity. In addition, some Limited Liability Vehicles will pay profit commission on a sliding scale from 1% of the net profit up to a maximum of 10%. The total fees payable for 2014 and 2013 are set out below:

	30 June	30 June		31 December
	2014	2013		2013
	Unaudited	Unaudited		Audited
Company	£'000	£'000		£'000
Hampden Corporate Member Limited	38	20		20
Nameco (No. 365) Limited	7	5		5
Nameco (No. 605) Limited	18	15		15
Nameco (No. 321) Limited	7	6		6
Nameco (No. 917) Limited	6	10		10
Nameco (No. 229) Limited	7	6		6
Nameco (No. 518) Limited	10	7		7
Nameco (No. 804) Limited	24	-		8
Halperin Limited	9	-		7
Nomina No 035 LLP	9	-		7
Nomina No 342 LLP	9	-		6
Nomina No 380 LLP	14	-		-
Bernul Limited	10	-		-
Nomina No 372 LLP	12	-		-
Helios UTG Partner Limited	-	-		-
Total	180	69		97

The Group has entered into a 50% quota share reinsurance contract for the 2013 underwriting year of account and a 70% quota share reinsurance contact for the 2014 underwriting year of account with Hampden Insurance PCC (Guernsey) Limited, a company registered in Guernsey.

Nigel Hanbury, a Director of Helios Underwriting plc and its subsidiary companies, is also a director and majority shareholder in Hampden Insurance PCC (Guernsey) Limited.  Hampden Capital Plc, a substantial shareholder in Helios Underwriting plc is also a substantial shareholder in Hampden Insurance PCC (Guernsey) Limited.  Under the agreements, the Group accrued a net reinsurance premium payable of £26,000 during the period.  A total cumulative amount owed to Hampden Insurance PCC (Guernsey) Limited of £49,000 (2013: £22,000) has been recognised in the balance sheet.

         The underwriting year of account quota share reinsurance contract that each group subsidiary participates in is detailed below:

Company
Hampden Corporate Member Limited	2013	2014
Nameco (No. 365) Limited	2013	2014
Nameco (No. 605) Limited	2013	2014
Nameco (No. 321) Limited	2013	2014
Nameco (No. 917) Limited	2013	2014
Nameco (No. 229) Limited	2013	2014
Nameco (No. 518) Limited	2013	2014
Nameco (No. 804) Limited	-	2014
Halperin Limited	-	2014
Nomina No 035 LLP	-	2014
Nomina No 342 LLP	-	2014
Nomina No 380 LLP	-	2014
Bernul Limited	-	2014
Nomina No 372 LLP	-	2014

13.    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 Year of account
Syndicate or
MAPA Number	Managing or Members' Agent				2012		2013		2014
33	Hiscox Syndicates Limited				754,377		754,377		1,524,940
218	Equity Syndicates Management Limited				359,400		438,285		824,344
308	R.J. Kiln & Co Limited				73,125		70,000		84,528
386	QBE Underwriting Limited				179,894		179,894		493,385
510	RJ Kiln & Co. Limited				1,265,425		1,240,770		2,548,439
557	RJ Kiln & Co. Limited				767,556		308,582		446,063
609	Atrium Underwriters Limited				1,098,065		1,047,455		1,947,561
623	Beazley Furlonge Limited				727,450		859,870		2,103,700
727	S.A. Meacock & Company Limited				375,222		375,222		457,055
779	ANV Syndicate Management Limited				20,000		20,000		-
958	Canopius Managing Agency Limited				416,434		327,200		466,880
1176	Chaucer Syndicates Limited				214,874		261,818		327,712
1200	Argo Managing Agency Limited				240,542		63,551		64,252
1729	Asta Managing Agency Limited				-		-		35,685
2010	Cathedral Underwriting Limited				249,769		249,769		510,544
2014	Pembroke Managing  Agency Limited				-		-		925,079
2121	Argenta Syndicate Management Limited				156,969		11,691		-
2525	Asta Managing Agency Limited				17,206		-		96,690
2791	Managing Agency Partners Limited				1,415,120		1,471,095		2,430,679
5820	ANV Syndicate Management Limited				-		107,754		60,000
6103	Managing Agency Partners Limited				332,500		405,307		392,320
6104	Hiscox Syndicates Limited				345,000		415,730		810,730
6105	Ark Syndicate Management Limited				116,569		64,724		314,592
6106	Amlin Underwriting Limited				308,251		271,170		-
6107	Beazley Furlonge Limited				135,000		10,000		350,000
6110	Pembroke Managing  Agency Limited				393,302		879,892		-
6111	Catlin Underwriting Agencies Limited				428,894		589,808		1,066,267
6113	Barbican Managing Agency Limited				-		30,000		20,000
6117	Asta Managing Agency Limited				-		-		963,112
7200	Members' Agents Pooling Arrangement				455,323		455,302		151,688
7201	Members' Agents Pooling Arrangement				2,318,974		2,318,948		762,204
7202	Members' Agents Pooling Arrangement				828,123		828,098		275,470
7203	Members' Agents Pooling Arrangement				108,289		108,262		47,678
7211	Members' Agents Pooling Arrangement				5,439,354		5,439,337		687,749
7217	Members' Agents Pooling Arrangement				95,912		95,911		95,913
Total					19,636,919		19,699,822		21,285,259

14.    Group owned net assets

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

	30 June 2014			30 June 2013			31 December 2013
	Group	Syndicate	Total	Group	Syndicate	Total	Group	Syndicate	Total
	Unaudited			Unaudited			Audited
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Assets
Intangible assets	3,828	-	3,828	1,571	-	1,571	2,929	-	2,929
Deferred income tax assets	-	-	-	-	-	-	-	-	-
Reinsurance share of insurance liabilities
- Reinsurers' share of outstanding claims	-	4,221	4,221	-	3,658	3,658	-	4,154	4,154
- Reinsurers' share of unearned premiums	-	1,637	1,637	-	1,379	1,379	-	800	800
Other receivables, including insurance receivables	774	13,664	14,438	386	8,899	9,285	793	10,761	11,554
Prepayments and accrued income	16	2,291	2,307	34	1,543	1,577	36	1,533	1,569
Financial assets at fair value	4,226	17,683	21,909	7,881	11,936	19,817	5,932	16,281	22,213
Cash and cash equivalents	1,055	2,313	3,368	296	1,974	2,270	86	980	1,066
Total assets	9,899	41,809	51,708	10,168	29,389	39,557	9,776	34,509	44,285
Liabilities
Insurance liabilities
- Claims outstanding	-	23,668	23,668	-	17,487	17,487	-	21,596	21,596
- Unearned premiums	-	9,415	9,415	-	6,694	6,694	-	5,968	5,968
Deferred income tax liabilities	1,603	-	1,603	978	-	978	1,656	-	1,656
Other payables, including insurance payables	349	5,560	5,909	233	3,875	4,108	34	4,082	4,116
Accruals and deferred income	1,165	350	1,515	487	246	733	866	257	1,123
Current income tax liabilities	-	-	-	-	-	-	-	-	-
Total liabilities	3,117	38,993	42,110	1,698	28,302	30,000	2,556	31,903	34,459
Shareholders' equity
Share capital	853	-	853	853	-	853	853	-	853
Share premium	6,996	-	6,996	6,996	-	6,996	6,996	-	6,996
Retained earnings	(1,066)	2,815	1,749	621	1,087	1,708	(629)	2,606	1,977
Total shareholders' equity	6,783	2,815	9,598	8,470	1,087	9,557	7,220	2,606	9,826
Total liabilities and shareholders' equity	9,900	41,808	51,708	10,168	29,389	39,557	9,776	34,509	44,285

15.    Events after the reporting period

Dumasco Limited

On 16 September 2014 Helios Underwriting plc acquired 100% of the issued share capital of Dumasco Limited for a total consideration of £2,500,000.  No information is available at present to accurately determine the fair value of the net assets acquired.  Dumasco Limited is incorporated in England and Wales and is a corporate member of Lloyd's.

For further information please contact:

Helios Underwriting	Nigel Hanbury	[e-mail]
Smith & Williamson Corporate Finance	David Jones	020 7131 4000
Westhouse Securities	Robert Finlay Darren Vickers	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's subsidiary underwriting vehicles trade within the Lloyd's insurance market as corporate members of Lloyd's writing £23 million of capacity for the 2014 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.

 

END

 

 

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