Helios Underwriting plc has projected a decrease in the capacity value of its fund by the end of 2024, although the net value of its tangible assets showed growth over the first nine months of the year.
The company stated that the average price per pound of capacity with value, following the 2024 Lloyd's capacity auctions, was 45 pence. This reflects a slight dip in auction prices alongside a shift in the composition of its freehold portfolio.
Helios expects the year-end 2024 capacity fund value to decrease to £75 million (US$95 million), down from £82.4 million at the close of 2023. This decline comes after realising £14 million in cash from specific syndicates within its portfolio.
Meanwhile, the value of freehold capacity is expected to drop from £175.9 million at the end of 2023 to £166.4 million by the end of this year.
Chairman Michael Wade (pictured above) noted the portfolio’s contribution to shareholder returns, highlighting the £14 million realised in capacity value.
"An increase in the net asset value per share of 15 pence to 206 pence is expected, representing an increase of 8% over the reported NAV as of June 30, 2024, and this demonstrates the strength of our portfolio,” Wade said.
Helios also reported growth in its free capacity offering from supported syndicates. The syndicates provided £15.6 million in free capacity, up from £14.7 million the previous year, through pre-emptions aimed at supporting a stronger underwriting market.
Pre-emptions taken up have added £3.4 million to the portfolio’s value, a reduction from the £7 million increase recorded last year.
Additionally, Helios has allocated £13 million of capacity to Fidelis Syndicate 3123 for the 2025 year of account. The syndicate began operations in July 2024, which Helios says reflects its ongoing support for new underwriting opportunities.
The company reported a £38 million capacity sale during the 2024 auctions, which generated a profit of £1.8 million based on the balance sheet valuation. Helios indicated that this sale increased its cash reserves and tangible net assets by £14 million, while reducing its balance sheet exposure to capacity value.
Post-auctions, and considering its share buyback in July, Helios expects a pro forma net asset value per share of 206 pence as of June 30, 2024, an 8% increase. The company said that it plans to release its updated NAV per share for September 30, 2024, in early December.
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