Helios Underwriting, the Lloyd’s of London investment and underwriting vehicle, has announced the current mid-point forecasts for its portfolio of syndicate capacity for the 2019 and 2020 years of account, based on 4th quarter 2021 estimates.
The company, which acquires and consolidates private underwriting capacity at Lloyd’s, recorded a capacity position of £115.6 million for the 2020 year of account as at March 25th, 2022, versus £103.4 million at November 25th, 2021.
This updated figure consists of £66.5 million capacity retained by Helios and £49.1 million that is ceded to quota share reinsurers.
For the 2019 year of account, Helios’s capacity position moved £94.3 million to £106.4 million, consisting of £67.4 million retained and £39.0 million reinsured.
And for 2021, the capacity position changed from £132.9 million to £145.0 million, with £93.5 million retained and £51.5 million reinsured.
Additionally, the 2022 capacity position now stands at £232.7 million, of which £171.9 million is retained and £60.8 million is reinsured.
The current mid-point forecast for the 2020 year of account is 0.97%, versus a Lloyd’s market average of 0.85%, which implies a Helios outperformance of 0.12%
Similarly, for 2019, the current mid-point forecast is 2.67%, versus a Lloyd’s market average of -3.09%, again implying a Helios outperformance of 5.76%.
According to Helios, the 2019 result showed “a good improvement” over the midpoint forecasts as at 30th September 2021, reflecting the investment returns achieved and the confidence in the old year reserves of the supported syndicates.
The company also noted that the outperformance of 5.76% of the portfolio against the average for the Lloyd’s market for 2019 continues the trend of outperformance achieved over the last 5 years that averages over 6.1% during the period.
“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,” said Helios Chief Executive Nigel Hanbury.
“Our strategy is yielding superior results, with returns on average 6.1% better than the Lloyd’s market itself over recent years. We are thrilled to learn of the market’s return to profitability and our curated portfolio should outperform the market as we have done consistently,” he continued.
“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 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.”
