Helios Underwriting has unveiled its portfolio capacity for the 2025 Year of Account, totalling £484 million.
This marks a 5% reduction from the 2024 capacity of £512 million, which the company says reflects strategic adjustments following trading activity at the 2024 Lloyd’s auctions and recent acquisitions. The company, the only publicly listed entity offering access to a diverse portfolio of Lloyd’s syndicates, retains £327 million of the new capacity.
The 2025 portfolio is designed to maintain diversification across syndicates, geographies, and insurance classes. Established syndicates account for 82% of the portfolio, ensuring a balance between stability and the potential for growth and profits.
Third-party capital providers will contribute £157 million, a 36% increase compared to 2024, while retained capacity has decreased by 18%.
Michael Wade (pictured above), interim executive chairman of Helios Underwriting, said the £484 million capacity reflects the firm’s position as an active manager of Lloyd’s syndicate portfolios.
“While pricing adequacy within the Lloyd’s market remains generally strong we have worked hard to finetune the portfolio’s class of business mix, with lower exposure to new syndicates,” he said.
Wade also emphasised that the company’s collaboration with high-performing syndicates and a proactive market approach positions Helios to achieve strong results and sustained value in 2025.
“The expected profitability for the 2022, 2023 and 2024 open Years of Account remains encouraging with welcome profit distributions ahead for Helios; the board will review its dividend policy as Lloyd’s syndicate profits become available,” Wade said.
The company has also reduced its gearing to capital and underwriting risk and expects a material reduction in its overall cost base for 2025.
Helios has continued to pursue its hybrid fee-earning model by increasing the capacity allocated to third-party capital providers. This includes the renewal of a quota share reinsurance arrangement that applies across all syndicates in the portfolio.
Market conditions in 2025 have influenced the company’s syndicate selection strategy. While some classes, such as US casualty, faced challenges including reserve deterioration, others, like property reinsurance, offered growth potential driven by rate increases and improved terms.
The portfolio has seen a slight increase in natural catastrophe exposure, offset by reduced cyber risk allocation.
Helios also reported that its net asset value per share increased by 8% to £2.06 as of September 30, 2024. The rise was attributed to pipeline profits, share buybacks, and gains from the recent Lloyd’s capacity auctions.
Additionally, the company completed the acquisition of Hyde Park Capital Limited for £7 million in cash, below the Humphrey Valuation of £8.6 million. The acquired capacity has been integrated into Helios' 2025 portfolio.
Helios reiterated its focus on long-term value for shareholders, with the board committed to reviewing the company’s strategic direction in response to evolving market conditions and opportunities.
What are your thoughts on this story? Please feel free to share your comments below.
