Lloyd’s focused investment vehicle, Helios Underwriting, has updated the value of the company’s value of capacity portfolio, now expecting to decrease to £75 million at 31st December 2024.
Michael Wade, Chairman of Helios, commented: “The Freehold Capacity Portfolio has continued to deliver value to shareholders and we have realised £14m of capacity value to increase the tangible assets of the Company.
“An increase in the Net Asset Value per share of 15p (2023 – 18p) to 206p is expected , representing an increase of 8% over the reported NAV as at 30th June 2024, and this demonstrates the strength of our portfolio.”
Having realised £14 million of cash from some of syndicates within the portfolio the value of the capacity fund expected by the end of the year, using the weighted average prices of capacity from the 2024 Lloyd’s capacity auctions, is expected to decrease to £75 million.
This figure compares to the value of the capacity fund of £82.4 million reported for 31st December 2023.
This year’s movements in capacity and its value include Helios-backed syndicates responding to an improved underwriting market by offering £15.6 million in free capacity through pre-emptions.
A strategic move that allowed them to increase the value of their portfolio by £3.4 million as a result of the pre-emptions taken up.
Helios also supported the Fidelis Syndicate (syndicate 3123), which commenced business in July 2024 and will allocate £13m of capacity for the 2025 year of account to this syndicate.
In the latest auctions, the syndicate’s weighted average price was 28p for each pound of capacity.
The average price per pound of capacity with value after the 2024 Auctions was 45p, reflecting a small decrease in auction prices and change in the mix of the freehold portfolio, Helios noted.
Helios also highlighted that the sale of £38 million of capacity on the auctions resulted in a small profit of £1.8m from the value held on the balance sheet.
As a result, this has increased both the cash available and the Tangible Net Assets by £14 million and the exposure in the balance sheet has been reduced to the value of the capacity.
Following the 2024 Auctions and further buyback of shares by the company in July, the projected Net Asset per share as of 30th June 2024, is estimated to experience an 8% growth, resulting in a value of 206p.
Helios expects to publish its updated Net Asset Value as at 30 September 2024 per share in early December 2024.
