Helios Underwriting plc has announced that it has increased the Weighted Average Prices of the syndicates comprising the Helios Capacity Fund by 28%.
Following the conclusion of Lloyd’s Capacity Auctions for 2018, Helios increased the price per £ of capacity from 32p in 2017 to 40p in 2018 and the price per share from 89p to £1.13.
Helios explained that the increase was calculated by applying the Latest Average Prices to the capacity portfolio of £41 million as at 1 January 2018.
This rise in the value of capacity would increase the company’s Adjusted Net Asset Value at 31 December 2017 by 24p to £1.84, up from £1.60 at 31 December 2016.
Last year, Helios announced that it had increased its capacity for 2018 by 26% to £41 million, improving the quality of its portfolio in anticipation of expected price increases at the January 1 renewals.
The company said that the value of the syndicate capacity has recovered from lows in 2017 following the significant catastrophe losses last year.
Premium rates have increased over 2018 and Helios expects them to continue to rise over the remainder of the year and into 2019, thereby improving the prospects for profitable underwriting.
Helios trades within the Lloyd’s insurance market and expects to write approximately £43 million of capacity for the 2018 account, with a portfolio concentrated in property insurance and reinsurance.