Helios Underwriting plc has revealed plans to acquire Advantage DCP Limited, a limited liability member of Lloyd’s, for a consideration of up to £1.91 million.
This consideration could be reduced to £1.66 million dependent on the deterioration of the current 2017 midpoint forecast for Advantage and the final result of that year.
Advantage made a loss of £0.2 million (before tax) on gross written premiums of £4.3 million in 2017, and its 2018 underwriting capacity is £2.3 million, compared to Helios’s capacity of £43.0 million.
The maximum consideration offered by Helios represents a discount of 27% to the independent valuation of £2.6 million placed on Advantage by Humphrey’s, and is approximately £600,000 below the fair value of assets being acquired.
Helios said that the transaction was in line with its strategy of increasing underwriting capacity through acquisition, and added that it is continuing to pursue a number of further Lloyd’s LLV deals.
The firm also recently announced that it had 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 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.
