Capacity Value Update
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Helios, the investment vehicle which provides shareholders with a spread participation at Lloyd's, announces an update on the value of Company's capacity portfolio following the Capacity Auctions at Lloyd's.
Capacity Value
The value of the capacity fund as at 31st December 2023 using the weighted average prices of capacity from the 2023 Lloyd's capacity auctions is expected to increase to £82.4m (31 December 2022: £60.0m).
| Freehold Capacity | Value of Capacity | |
|---|---|---|
| £m | £m | |
| Capacity Value at 31 Dec 2022 | 147.3 | 60.0 |
| Capacity acquired with LLV's in 2023 | 7.4 | 3.5 |
| Value of pre-emption capacity | 14.7 | 7.0 |
| Acquisition of capacity in the capacity auction | 6.5 | 0.4 |
| Increase in portfolio value | - | 11.5 |
| Capacity Value expected at 31 Dec 2023 | 175.9 | 82.4 |
| Anticipated Impact on Net Asset Value | £m | |
| Value of pre-emption capacity | 7.0 | |
| Increase in portfolio value | 11.5 | |
| 18.5 | ||
| Deferred Tax provision - 25% | (4.6) | |
| Net Increase in Tangible Net Assets | 13.9 | |
| Number of shares in Issue | 76.5 | |
| Increase in Net Asset Value per share | 18.2p | |
A summary of the movements in capacity and its value as follows:
Helios has acquired 4 LLVs during 2023 with capacity of £8.2m, which was valued at 2022 capacity prices at £3.5m.
The syndicates supported by Helios offered free capacity of £14.7m (2022 - £21.7m) by way of pre-emptions to support the improved underwriting market. The value of the pre-emptions taken up have increased the value of the portfolio by £7.0m.
Helios acquired capacity in the 2023 Auctions on syndicates 2121 and 2689 to build positions on these syndicates.
The average price per £ of capacity with value after the 2023 Auctions was 47p (2022 - 41p) reflecting the increase in auction prices.
This increase in the capacity portfolio value of £13.9m, net of a provision for deferred tax, will increase the Tangible Net Asset Value by 18.2p, an increase of 11.9% over the Tangible Net Asset Value of at 30th June 2023 of 154p.
The pro-forma Tangible Net Asset Value per Share as at 30th June 2023 of 154p adjusted for the increase in the value of the capacity fund of 18.2p is now 172p.
The Company expects to publish its updated Net Asset Value as at 30 September 2023 per share in early December 2023.
Martin Reith, Chief Executive Officer of Helios, commented:
"I am delighted that the value of the Freehold Capacity has increased to £82m, representing an increase in the Net Asset Value per share of 18.2p. This is an increase of 11.9% over the reported NAV as at 30th June 2023, and demonstrates the strength of our portfolio and acquisition strategy."
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