In the past weeks it’s mostly been bad news for a number of Lloyd’s of London syndicates, amid a barrage of market departures aimed at addressing underperformance. Now let’s take a breather with an announcement that Helios Underwriting Plc is “pleased” to make.
According to the firm, the weighted average prices of the syndicates comprising the Helios Capacity Fund traded in 2018 rose 28% year-on-year following the conclusion of the Lloyd’s capacity auctions. Helios said the increase is calculated by applying the latest average prices to the capacity portfolio of £41 million as of January 01 this year.
What this means is a consequent rise in the company’s adjusted net asset value as of year-end 2017 by 24p to 184p.
“The value of the syndicate capacity has recovered from the lows in 2017 following the significant catastrophe losses of the year,” noted Helios. “Premium rates have increased during 2018, with current expectations of further rate rises over the remainder of the year and in 2019, thereby improving the prospects for profitable underwriting.”
Helios, which provides a limited liability direct investment into the Lloyd’s insurance market, expects to write approximately £43 million of capacity for the 2018 account. Its portfolio provides a good spread of business being concentrated in property insurance and reinsurance.
