Helios Underwriting plc, a Lloyd’s of London investment vehicle which acquires and consolidates private underwriting capacity, sees attractive near-term opportunities in the market place.
The firm has reported its quarterly syndicate mid-point forecasts in respect of its portfolio f syndicate capacity for both the 2017 and 2018 years of account, based on Q2 2019 estimates.
Starting with the 2017 year of account, the firm’s capacity position as of January 1st 2019 totalled £53.1 million, with £27.7 million retained and £25.4 million reinsured.
Since Jan 1st, 2019 the 2017 year of account has acquired £3 million of capacity, which takes its retained capacity position as at August 15th 2019 to £30.7 million, resulting in overall capacity of £56.1 million.
The mid-point forecast at June 30th, 2019 was 8.95% and Helios has revealed a current mid-point forecast of 7.4%. This compares with a Lloyd’s market average of 9.55%, meaning Helios out performed the market by 2.15%.
For the 2018 year of account, the firm’s capacity position as of January 1st 2019 totalled £55.7 million, with £18.3 million retained and £37.4 million reinsured.
Since Jan 1st, 2019 the 2018 year of account has retained £2.4 million of capacity and reinsured £0.9 million, which takes its retained capacity position as at August 15th 2019 to £20.7 million, and reinsured to £38.3 million, amounting to total capacity of £59 million.
The mid-point forecast at June 30th, 2019, for the 2018 year of account, was 3.53% and Helios has revealed a current mid-point forecast of 3.56%. This compares with a Lloyd’s market average of 4.44%, meaning Helios out performed the market by 0.88%.
For the 2019 year of account, the firm’s capacity position as of January 1st 2019 totalled £52.6 million, with £15.8 million retained and £36.8 million reinsured. Since Jan 1st, 2019 the 2019 year of account has retained £0.9 million of capacity and reinsured £2.2 million, which takes its retained capacity position as at August 15th 2019 to £16.7 million, and reinsured to £39 million, amounting to total capacity of £55.7 million.
The firm’s Chief Executive Officer (CEO), Nigel Hanbury, said: “As the only quoted 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 acquisitions of capacity on the better quality syndicates.
“Looking ahead, the number of LLV’s for sale is increasing and we see attractive near-term opportunities to continue to consolidate the market and achieve improved outperformance against Lloyd’s.”
