Lloyd’s focused investment vehicle Helios Underwriting has reported that H1 2023 gross written premiums (GWP) increased by 28% to £160m, while the underwriting result improved by a massive 252%.
According to Helios, the 28% GWP boost reflects the increase in the capacity portfolio.
The firm’s underwriting result in H1 of 2023 was £11.6m, up 252% from the £3.3m reported in H1 of 2022.
Helios added that the increase of 33% in the underwriting exposure in the 2023 Year of Account to £244m of retained capacity will “contribute to the underwriting result in the future.” The firm’s combined ratio in H1 of 2023 was 88%.
Helios highlighted that further rate increase achieved by the Lloyd’s market of 9.1% in H1 “continued the excellent market conditions” at Lloyd’s.
Meanwhile, the firm noted that investment returns of £3.1m have been booked in H1, benefiting from the increased interest rates. This compares to losses of £3.5m in the same period last year.
Helios’ operating profit in H1 was £6.0m, up substantially from a loss of £3.4m in H1 of 2022.
Martin Reith, Chief Executive, Helios Underwriting, said, “The continued improvement in market conditions presents exciting opportunities for Helios. The portfolio is positioned to benefit from pricing and market discipline, and underwriting profits are now being recognized from five years of improved underwriting margins.
“We are confident that, given market discipline, we should continue to see favorable returns across our portfolio. The resilience of these conditions seems to be more sustainable, and we fully expect our portfolio to thrive.”
Reith continued, “The results are a little skewed as a consequence of the recent rapid 33% growth in our retained capacity in 2023 and a cautious approach to reserving adopted within our portfolio.
“With the passage of time and as the better loss ratio premium earns through, we are confident that our portfolio will demonstrate outperformance against a prudent reserving strategy.
“The impact of the increased yields on the Group investments will make a contribution in the future.”
