Capacity Value Update
No summary for this filing – the full text is below.
Select text to share a quote on X · sign in to keep highlights & notes in your HUW notes
Helios Underwriting ('Helios' or the 'Company'), the only publicly traded company offering access to a diverse portfolio of syndicates at Lloyd's of London, the world's largest insurance market, today announces an update on the value of Company's capacity portfolio following the Capacity Auctions at Lloyd's.
Michael Wade, Chairman of Helios, commented:
"The Freehold Capacity Portfolio has continued to deliver value to shareholders and we have realised £14m of capacity value to increase the tangible assets of the Company. An increase in the Net Asset Value per share of 15p (2023 - 18p) to 206p is expected , representing an increase of 8% over the reported NAV as at 30th June 2024, and this demonstrates the strength of our portfolio."
Capacity Value
The value of the capacity fund expected as at 31st December 2024 using the weighted average prices of capacity from the 2024 Lloyd's capacity auctions is expected to decrease to £75m (31 December 2023: £82.4m) having realised £14m of cash from some of syndicates within the portfolio.
The analysis of the changes to the Freehold Capacity in the portfolio is as follows:
| Freehold Capacity | Value of Capacity | Value per £ capacity | |
|---|---|---|---|
| £m | £m | ||
| Capacity Portfolio at 31 Dec 2023 | 175.9 | 82.4 | 0.47 |
| Pre-emption capacity | 15.6 | 3.4 | |
| Mid-year support | 5.0 | - | |
| Disposal of capacity at capacity auctions | -37.8 | -13.9 | |
| Increase / Acquisition of Freehold capacity | 10.8 | 0.1 | |
| Increase in portfolio value | 2.9 | ||
| Capacity Portfolio expected at 31 Dec 2024 | 166.4 | 74.9 | 0.45 |
A summary of the movements in capacity and its value as follows:
The syndicates supported by Helios offered free capacity of £15.6m (2023 - £14.7m) 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 £3.4m (2023 £7.0m).
Helios supported the Fidelis Syndicate (syndicate 3123), which commenced business in July 2024 and will allocate £13m of capacity for the 2025 year of account to this syndicate. The weighted average price for this syndicate was 28p per £ of capacity in the recent auctions.
The average price per £ of capacity with value after the 2024 Auctions was 45p (2022 - 47p) reflecting a small decrease in auction prices and change in the mix of the freehold portfolio.
| Impact on Net Asset Value as 30th June 2024 | Total | Net Assets |
|---|---|---|
| £m | per Share - £ | |
| Opening at 30 th June 2024 | 140.7 | 1.91 |
| Pre-emption capacity | 3.4 | |
| Net profit on disposal of syndicate capacity | 1.8 | |
| Increase in portfolio value | 2.9 | |
| 8.1 | ||
| Corporation Tax provision | -2.0 | |
| Pro-forma Net Asset Value | 146.8 | 2.06 |
| Number of shares in Issue | 71.3 | |
The sale of £38m of capacity on the auctions resulted in a small profit of £1.8m from the value held on the balance sheet. It has increased both the cash available and the Tangible Net Assets by £14m and has reduced the exposure in the balance sheet to the value of the capacity.
Following the 2024 Auctions and taking into account the further buy back of shares by the Company in July, the proforma Net Asset per share as 30th June 2024 is expected to increase by 8% to 206p
The Company expects to publish its updated Net Asset Value as at 30 September 2024 per share in early December 2024.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.