Helios Underwriting Plc has “once again outperformed the Lloyd’s market” with its audited final results for the year ended December 31, 2021.
The investment vehicle, which acquires and consolidates underwriting capacity at Lloyd’s, saw a surge in its capacity portfolio, from £110.3 million in 2020 to £232.7 million the following year. In 2021, Helios acquired 28 limited liability vehicles (LLVs) and also had a successful equity raise from new investors.
Helios’ total comprehensive income for the period amounted to £4.9 million – a higher sum compared to the £4.3 million posted during the previous year. Underwriting profits, meanwhile, grew from £639,000 to £3.4 million in 2021.
“We have successfully navigated a challenging period,” said chief executive Nigel Hanbury, “with reinsurance mitigating the COVID-19 losses and managing the volatility of the portfolio. This demonstrates our success in building a high-quality portfolio of syndicate capacity. Our acquisition strategy has continued apace, with 28 LLVs purchased, for a total consideration of £26.5 million.
“Our capacity portfolio has increased 111%, from £110 million to £233 million, and retained capacity increases at the outset of the underwriting year from £59 million to £172 million, an increase of 193%. This decision to increase the retained capacity substantially for the second year reflects the confidence in the timing of the market cycle and that it is now the right time to assume more underwriting risk for shareholders.”
Quoted on the London Stock Exchange’s AIM market, Helios provides a limited liability direct investment into the Lloyd’s insurance market, mainly in property insurance and reinsurance.
Hanbury added: “It is pleasing to note that we have once again outperformed the Lloyd’s market by an average of 4.9%. With the prospect of improving underwriting returns, together with the opportunity to continue to build the capacity portfolio, Helios is well placed to deliver value to shareholders in the future.”
