HUW Secures Stop Loss Cover

RNS Number : 1565M

Helios Underwriting Plc

14 July 2014

 



14 July 2014

Helios Underwriting plc

("HUW" or the "Company")

HUW secures stop loss cover

HUW is pleased to announce that it has secured stop loss reinsurance cover for the 2014 year of account.

The Company has entered a stop loss reinsurance agreement with Hampden Insurance PCC (Guernsey) Limited - Cell 7 ("Cell 7"), a special purpose vehicle, which has reinsured the risk on a back-to-back basis with a leading international reinsurer.  Under the agreement, HUW will pay a premium of approximately £112,000 for stop loss cover of 10% in excess of 10% (i.e. the first 10%, and any excess over 20%, of any loss would be borne by HUW) in relation to a significant majority of the HUW group's underwriting capacity.

Cell 7 is ultimately 51% owned by Nigel Hanbury (a director and 14.8% shareholder in the Company) and 49% by Hampden Capital plc (an 11.9% shareholder in the Company).  The terms of the transaction have been approved by the independent members of the Company's board of directors.

Commenting upon this transaction Nigel Hanbury, HUW's Chief Executive, said:

"I am pleased that HUW has been able to take advantage of the competitive rating environment to secure protection at favourable terms which will allow us to use our capital most efficiently."

For further information please contact:

HUW Nigel Hanbury - Chief Executive Paul Lumbis - Chief Financial Officer	020 7863 6655 / [e-mail] 020 7863 6657 / [e-mail]
Smith & Williamson Corporate Finance David Jones	020 7131 4000
Westhouse Securities Robert Finlay Darren Vickers	020 7601 6100
Haggie Partners Peter Rigby	020 7562 4444

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 £21 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.

 

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