Helios has increased its retained capacity in 2022 to £171.9m, up from £66.5m and £93.5m in 2020 and 2021.
According to a statement from the firm, its reinsured capacity also rose significantly in this time, increased from £49.1m in 2020, to £51.5m in 2021, and to £60.8m this year.
Nigel Hanbury, chief executive of Helios, said: “As the only listed consolidator of private capital at Lloyd’s, Helios offers a unique opportunity for growth and returns from exposure to the Lloyd’s market through targeted acquisition of the capacity of the better performing syndicates. Over recent years, our strategy has yielded superior results, with returns on average 5.1% better than the Lloyd’s market itself.
He added: “We have increased the retained capacity to £172m in recognition of market discipline and a harder market. We remain confident that we shall deliver improved results when compared to the Lloyd’s market as a whole, and we look forward to creating further shareholder value as the benefits of the larger retained capacity flows to the income statement.”
A statement from the firm said that the mid-point forecast for 2020 is improving, alongside its outperformance against Lloyd’s.
It added: “The improved Lloyd’s market result indicates the remediation work that has been undertaken by the syndicates within the lower quartiles of performance. We would expect the gap in relative performance to narrow over the next 18 months as it has done in the past. The syndicates supported by third party capital have been more conservative in their published estimates over the 36 months to the close of the year of account due to the transparency of each syndicates’ result.”
These latest figures buttress those put out by Helios in December last year. Back then, it confirmed that the retained underwriting capacity for the 2022 year of account will be £171m, a 191% increase in the capacity underwritten at the start of this year.
The firm reported that the overall portfolio, including the capacity reinsured, has increased to £233m, more than doubling the size of the portfolio.
And in March, the firm reported that it had recorded a capacity position of £115.6m for the 2020 year of account as of March 25th, 2022, versus £103.4m at November 25th, 2021.
This updated figure consisted of £66.5m capacity retained by Helios and £49.1m that ceded to quota share reinsurers. For the 2019 year of account, Helios’s capacity position moved £94.3m to £106.4m, consisting of £67.4m retained and £39.0m reinsured. And for 2021, the capacity position changed from £132.9m to £145.0m, with £93.5m retained and £51.5m reinsured.