TIDMHUW
RNS Number : 9083N
Helios Underwriting Plc
28 September 2023
28 September 2023
Helios Underwriting plc
("Helios" or the "Company")
Interim Results for the Six Months Ended 30 June 2023
Helios Underwriting plc is an investment vehicle which provides
shareholders with participation in the Lloyd's insurance market
through an actively managed spread portfolio of syndicate capacity
, announces its unaudited results for the six months ended 30 June
2023.
-- Gross written premiums increased by 28% to GBP160 (HY 2022 -
GBP124m) reflecting the increase in the capacity portfolio
-- Further rate increase achieved by the Lloyd's market of 9.1%
(HY 2022 7.7%) over the six month period continuing the excellent
market conditions at Lloyd's.
-- 252% improvement in the underwriting result to GBP11.6m (HY
2022- GBP3.3m) with an 88% combined ratio
-- The increase of 33% in the underwriting exposure in 2023 Year
of Account to GBP244m of retained capacity will contribute to the
underwriting result in the future.
-- Investment returns of GBP3.1m (HY 2022 - losses GBP3.5m) have
been booked in the first six months benefiting from the increased
interest rates
-- Operating profit is GBP6.0m (30 June 202 2 - a loss of GBP3.4m)
-- The net tangible asset value per share is GBP1.54 per share (FY 2022 - GBP1.52 per share)
Martin Reith, Chief Executive, provides the following
overview:
"The continued improvement in market conditions presents
exciting opportunities for Helios. The portfolio is positioned to
benefit from pricing and market discipline and underwriting profits
are now being recognised from five years of improved underwriting
margins. We are confident that given market discipline, we should
continue to see favorable returns across our portfolio. The
resilience of these conditions seem to be more sustainable and we
fully expect our portfolio to thrive.
"The results are a little skewed as a consequence of the recent
rapid 33% growth in our retained capacity in 2023 and a cautious
approach to reserving adopted within our portfolio. With the
passage of time and as the better loss ratio premium earns through,
we are confident that our portfolio will demonstrate outperformance
against a prudent reserving strategy. The impact of the increased
yields on the Group investments will make a contribution in the
future."
Helios Underwriting plc
Martin Reith - Chief Executive
Arthur Manners - Chief Financial Officer +44 203 965 6441
Numis
Giles Rolfe +44 (0)20 260 1000
Charles Farquhar
Buchanan
Helen Tarbet / George Beale +44 (0)7872 604 453
+44 (0)20 7466 5111
Chairman's statement
Six months ended 30 June 2023
Helios Underwriting plc is the only listed vehicle where
investors can own a share in a company with a broad spread of
Lloyd's syndicate participations and where the Funds at Lloyd's
(FAL) ratio is less than 50% meaning that for every GBP1 of capital
at work it underwrites GBP2 or more in capacity.
Under the direction of our new Chief Executive, Helios has plans
to continue its growth and broaden still further into insurance
underwriting activities at a time when market conditions are
attractive.
These conditions give us confidence to return capital to
shareholders, initially through a share buyback programme and the
Board will be reviewing the dividend policy in the future.
SUMMARY FINANCIAL INFORMATION
6 months to 30 June
2023 2022
GBP000's GBP000's
Gross written premium 158,509 124,067
---------- ----------
Underwriting result 11,658 3,291
Investment Income - syndicates 3,160 (3,560)
Net quota share (4,378) (383)
Net profits from portfolio 10,441 (652)
Other income 739 833
Costs (5,146) (3,612)
Operating profit / loss for the
period 6,034 (3,431)
---------- ----------
Profit/(loss) after tax 4,351 (3,264)
---------- ----------
Earnings per share 5.71p (4.44)p
Net Tangible Asset Value per GBP1.54p GBP1.52p
Share
The combined underwriting result has improved substantially as
the underlying profitability of the portfolio starts to be
recognised. Given the improved terms on property and property
catastrophe business achieved at the beginning of the year, the
impact of worldwide natural catastrophes in the period has been
muted.
2023 2022 % Increase
GBP000's GBP000's
Gross premium written 160,493 124,067 28%
Net earned premium 97,316 59,990 62%
Net insurance claims
& operating expenses (85,658) (56,699) 51%
Underwriting result 11,658 3,291 254%
Investment Income 3,160 (3,560)
Operating profit/loss 14,819 (269)
Combined ratio 88% 95%
The figures in the above table are gross of pre-acquition
The increase in the gross written premiums reflect the growth of
the capacity portfolio to GBP310m for the 2023 underwriting year.
The combined portfolio ratio of 88% is in line with the combined
ratio for the Lloyds market of 85% and has improved substantially
given the contribution of the profitability from the 2022 year.
6 months to 30th June
2021
and prior 2022 2023 Total
GBP000's GBP000's GBP000's GBP000's
Net Earned Premium 4,113 68,516 24,687 97,316
------------ --------- --------- ---------
Underwriting result 1,973 13,215 (3,531) 11,658
Investment Income 1,801 1,165 195 3,160
------------ --------- --------- ---------
Operating (loss)
/ profit 3,774 14,380 (3,336) 14,818
Quota Share Reinsurers (1,429) (3,679) 730 (4,378)
------------ --------- --------- ---------
Total Group Underwriting
Profit/(loss) 2,345 10,701 (2,606) 10,440
------------ --------- --------- ---------
The underwriting contribution from the 2022 underwriting years
reflects the expected development of those years after recognising
underwriting losses at an early stage. 2023 to date represents an
initial loss due to the higher proportion of expenses and
reinsurance costs allocated to the first six months of the
underwriting year. The future recognition of the Net Earned
Premiums from 2023 year, given the increased underwriting exposure,
will benefit the underwriting result in the future.
6 months to 30th June
2023 2022
GBP000's GBP000's
Stop loss costs (1,083) (783)
Excess of Loss costs (1,778) (812)
Operating costs (2,285) (2,017)
Total Costs (5,146) (3,612)
=========== ===========
The excess of loss costs has increased in line with the
additional funds provided by reinsurers and by banks. Operating
costs have been impacted by the additional resources taken on to
manage the larger portfolio
Financial Investments GBP000's Investment Yield
Return
- GBP000's
Syndicate investment
assets 182,253 3,160 1.71%
Group investment
assets 77,297 (19) 0.03%
259,550 3,141 1.21%
--------- ------------ ------
Helios's share of the syndicate investments has increased by 43%
since 30 June 2022 and has generated a positive return of 1.71% in
the first 6 months of the year in comparison to a negative yield of
2.8% in the comparative period last year. The Group funds will
continue to earn interest for the balance of the year. The Group's
share of the syndicate investments is expected to continue to
increase to reflect the growth of the capacity portfolio.
Helios Retained Capacity
The positive momentum in both insurance and reinsurance pricing
has continued into 2023 as the property and property reinsurance
rates increased significantly at the beginning of the year. The
improvement in underwriting conditions over the last five years
will provide a platform for better prospects for underwriting
returns over the next few years.
Helios has increased its retained capacity to GBP244.5m for the
2023 underwriting year, an increase of 42% to take advantage of the
current market conditions. The proportion of the capacity reinsured
has been reduced while the capital provided by the reinsurers has
remained steady. The quota share reinsurers fund their share of the
capital requirements and pay Helios a fee and a profit commission.
The strategy of building a portfolio of underwriting capacity that
can be accessed by alternative sources of capital is expected to be
developed in the future as we regard this as an attractive
opportunity to increase the fee income generated from the
portfolio.
GBPm 2023 Capacity Capacity Value
2023 YOA 310.8 62.6
Expected Pre-emptions 14.5 6.3
Increase in NTAV per share 6.2p
Helios has received preliminary indications of pre-emptions for
the 2023 year of account from the syndicates supported of GBP14.5m
which are subject to approval by Lloyd's. The value of the capacity
portfolio, using the 2022 weighted average prices, including the
value of the expected pre-emptions for 2023 (using the 2022
weighted average capacity prices) could increase to GBP69m - an
increase of 10%.
Wild-fire Defense Syndicate
Helios became the cornerstone FAL provider in a new SIAB 1996
which commenced underwriting from July this year underwriting GBP6m
of capacity for 2023 year of account. WDS provides insurance cover
to commercial businesses located in California for the risks of
wildfire. Their intervention techniques have saved may properties
from destruction and provide much needed cover in this challenging
environment.
Acquisitions in 2023 to date
Four acquisitions have been completed to date increasing the
portfolio by GBP8m of capacity.
2023 Humphrey's
GBPm Capacity Valuation Total Consideration** Discount
Nameco 606 2.0 1.6 1.5 5.8%
Nameco 1208 1.8 1.0 0.7 25.0%
Park Farm UW* 2.3 3.4 3.2 6.3%
Chorlton UW* 2.1 2.1 2.0 10.0%
Total 8.2 8.1 7.4 11.1%
========== =========== ====================== =========
*Completed after 30(th) June 2023
** includes the cash consideration plus the proprietors loans
assumed by the group
Our strategy of building a portfolio of syndicate capacity
continues to rely on the flow of LLVs for sale at reasonable
prices. The discounts achieved to the Humphrey Valuations have
decreased as both Vendor expectations of future value have
increased and as other purchasers have realised the value of the
potential future profitability of these capacity portfolios.
Capital Position as at 30(th) June 2023
Underwriting capital 30 June 31 December
2023 2022
GBPm GBPm
Quota share reinsurance panel 22.3 27.8
Excess of loss funds at Lloyd's 46.4 41.2
Helios own funds 62.4 58.3
Solvency credits 21.2 0.7
Total 152.3 128.0
======== ============
Total Capacity 310.8 296.7
Economic capital requirement 128.6 126.4
Capital Ratio 41% 42%
Surplus Capital 23.7 1.6
======== ============
The improvement in the Solvency position of the capacity
portfolio, increasing the solvency credits to GBP21m as profits
have been recognized within the supported syndicates. Surplus
solvency credits of GBP10m have recently been released to improve
the free cash position of the Company.
Return of Capital to Shareholders
Helios is committed to returning capital to shareholders. The
Board has already announced a share repurchase program and is
actively considering other mechanisms to achieve this goal. This
will also potentially include the review and increase of our
dividend policy.
The Company has allocated GBP1million recently for the buyback
of its shares as the share price is below tangible book value. The
Board believes that while the share price remains at these levels
it is in shareholders' interests to continue to buy back shares in
the market.
The net tangible asset value per share is GBP1.54p per share
(Dec 2022 - GBP1.52p per share). The net assets include a deferred
tax provision of GBP14m on the value of the capacity portfolio.
Financial results summary
Six months ended 30 June 2023
6 months to 30 6 months to 30
June 2023 June 2022
GBP'000 GBP'000
Underwriting profits 10,441 (652)
Other Income
Fees from reinsurers 720 442
Corporate reinsurance recoveries - 307
Goodwill on bargain purchase - -
Investment income 19 84
--------------- ---------------
Total Other Income 739 833
Costs
Pre-acquisition (184) -
Stop loss costs (1,931) (1,224)
Operating costs (3,031) (2,388)
--------------- ---------------
Total Costs (5,146) (3,612)
Operating profit before impairments
of goodwill
and capacity 6,034 (3,431)
Amortisation of goodwill 302 638
Tax (1,985) (214)
Revaluation of syndicate capacity - -
Income tax relating to the components
of other
Comprehensive income - (257)
--------------- ---------------
Profit/(loss) for the period/year 4,351 (3,264)
--------------- ---------------
Period to 30 June 2023
Underwriting Helios Portfolio Portfolio Helios Helios Helios
Year retained mid point Expected Earned Profits Profits
capacity forecasts Profits before to be earned
at tax in the
future
30 June at 30 to 31 to 30th
2023 June Dec 2022 June 2023
2023
GBPm GBP'000 GBP'000 GBP'000 GBP'000
2021 102.3 4.90% 5,016 711 2,346 1,959
2022 180.9 5.68% 10,272 (7,088) 10,701 6,659
2023 234.2 N/A (2,606)
10,441 8,618
----------------------- ------------------------
Impact
on NTAV 12.8p 8.5p
Financial results summary continued
Six months ended 30 June 2023
Summary Balance Sheet
The summary Group balance sheet excludes items relating to
syndicate participations. See Note 16 for further information.
30 June 2023 31 December 2022
GBP'000 GBP'000
------------------ ------------ ----------------
Intangible assets 61,236 59,375
Funds at Lloyd's 77,297 73,771
Other cash 2,020 10,254
Other assets 6,958 6,909
------------------ ------------ ----------------
Total assets 147,511 150,309
------------------ ------------ ----------------
Deferred tax 13,921 11,228
Borrowings 15,000 15,000
Other liabilities 7,732 3,839
------------------ ------------ ----------------
Total liabilities 36,653 30,067
------------------ ------------ ----------------
Syndicate equity 6,292 (5,123)
------------------ ------------ ----------------
Total equity 117,150 115,119
------------------ ------------ ----------------
Summary Group Cash Flow
The summary group cash flow sheet excludes items relating to
syndicate participations. See Note 16 for further information.
6 months to 30 June 2023 6 months to 30 June 2022
GBP'000 GBP'000
Opening Balance (free cash) 10,254 16,178
Income
Acquired on acquisition 9 -
Distribution of profits (net of tax retentions) 3,091 2,422
Transfers from Funds at Lloyds' 2,499 5,277
Investment income 375 55
Borrowings - 15,000
Expenditure
Operating costs (inc Hampden / Nomina fees) (2,988) (1,409)
Reinsurance Cost (3,408) (857)
Acquisition of LLV's (1,569) -
Transfers to Funds at Lloyds' (6,067) (21,886)
Tax (236) 293
Dividends paid - (2,034)
Closing balance 1,960 13,039
------------------------- -------------------------
Financial results summary continued
Six months ended 30 June 2023
Net tangible asset per share
6 months to 30 Year to 31 December
June 2023 2022
GBP'000 GBP'000
Net tangible assets 55,915 55,743
Value of capacity
(WAV) 61,548 59,967
--------------- --------------------
117,463 115,710
--------------- --------------------
Shares in issue -
on the market 76,218 76,218
Shares in issue -
total of on the market
and JSOP shares 77,318 77,318
Net tangible asset
value per share GBP
- on the market GBP1.54p GBP1.52p
Net tangible asset
value per share GBP
- on the market and
JSOP shares GBP1.52p GBP1.50p
Interim condensed consolidated statement of comprehensive
income
Six months ended 30 June 2023
6 months 6 months
ended ended
30 June 30 June
2023 2022
Unaudited Unaudited
Note GBP'000 GBP'000
---------------------------------------------------- ------ ---------- -----------
Gross premium written 4 158,509 124,067
Reinsurance premium ceded (49,587) (35,291)
---------------------------------------------------- ------ ---------- -----------
Net premium written 4 108,922 88,776
---------------------------------------------------- ------ ---------- -----------
Change in unearned gross premium provision 5 (34,899) (46,338)
Change in unearned reinsurance premium provision 5 15,782 15,945
---------------------------------------------------- ------ ---------- -----------
(19,117) (30,393)
---------------------------------------------------- ------ ---------- -----------
Net earned premium 3,4 89,805 58,383
Net investment income 6 3,141 (3,476)
Other underwriting income 720 442
Revenue 93,666 55,349
---------------------------------------------------- ------ ---------- -----------
Gross claims paid (42,895) (28,627)
Reinsurers' share of gross claims paid 10,437 7,153
---------------------------------------------------- ------ ---------- -----------
Claims paid, net of reinsurance (32,458) 21,474
---------------------------------------------------- ------ ---------- -----------
Change in provision for gross claims 5 (15,696) (17,146)
Reinsurers' share of change in provision for gross
claims 5 (1,953) 3,879
---------------------------------------------------- ------ ---------- -----------
Net change in provision for claims 5 (17,649) (13,267)
---------------------------------------------------- ------ ---------- -----------
Net insurance claims and loss adjustment expenses 4 (50,107) (34,741)
---------------------------------------------------- ------ ---------- -----------
Expenses incurred in insurance activities (34,969) (22,310)
Other operating expenses (2,556) (1,729)
---------------------------------------------------- ------ ---------- -----------
Operating expenses (37,525) (24,039)
---------------------------------------------------- ------ ---------- -----------
Operating profit/(loss) before impairments of
goodwill and capacity 4 6,034 (3,431)
Amortisation of goodwill 302 638
Profit/(loss) before tax 6,336 (2,793)
Income tax charge 7 (1,985) (214)
Income and deferred tax charge as a result of
change in tax rates 7 - -
Profit/(loss) for the period 4,351 (3,007)
---------------------------------------------------- ------ ---------- -----------
Other comprehensive income
Deferred tax relating to change in tax rates on
revaluation of capacity - (257)
---------------------------------------------------- ------ ---------- -----------
Other comprehensive income/(loss) for the period,
net of tax - (257)
---------------------------------------------------- ------ ---------- -----------
Total other comprehensive income/(loss) for the
period - (3,264)
---------------------------------------------------- ------ ---------- -----------
Profit/(loss) for the period attributable to owners
of the Parent 4,351 (3,264)
---------------------------------------------------- ------ ---------- -----------
Total comprehensive income/(loss) for the period
attributable to owners of the Parent 4,351 (3,264)
---------------------------------------------------- ------ ---------- -----------
Earnings/(loss) per share attributable to owners
of the Parent
Basic 8 5.71p (4.44)p
Diluted 8 5.55p (4.44)p
---------------------------------------------------- ------ ---------- -----------
The profit attributable to owners of the Parent and earnings per
share set out above are in respect of continuing operations.
The notes are an integral part of these Financial
Statements.
Interim condensed consolidated statement of financial
position
Six months ended 30 June 2023
At 30 June At 31 December
2023 2022
Unaudited Unaudited
Note GBP'000 GBP'000
------------------------------------------------------- ------ ---------- --------------
Assets
Intangible assets 61,236 59,375
Financial assets at fair value through profit or
loss 259,550 226,013
Reinsurance assets:
- reinsurers' share of claims outstanding 5 89,625 80,726
- reinsurers' share of unearned premium 5 33,308 21,333
Other receivables, including insurance and reinsurance
receivables 165,315 147,676
Deferred acquisition costs 26,696 24,991
Prepayments and accrued income 8,088 5,076
Cash and cash equivalents 28,200 25,300
------------------------------------------------------- ------ ---------- --------------
Total assets 672,018 590,490
------------------------------------------------------- ------ ---------- --------------
Liabilities
Insurance liabilities:
- claims outstanding 5 305,382 272,015
- unearned premium 5 135,286 114,663
Deferred income tax liabilities 13,921 11,312
Borrowings 15,000 15,000
Other payables, including insurance and reinsurance
payables 76,475 54,893
Accruals and deferred income 8,804 7,488
------------------------------------------------------- ------ ---------- --------------
Total liabilities 554,868 475,371
------------------------------------------------------- ------ ---------- --------------
Equity
Equity attributable to owners of the Parent:
Share capital 11 7,774 7,774
Share premium 11 98,268 98,268
Revaluation reserve 11 11,350 11,350
Other reserves - treasury shares 11 (110) (110)
Retained earnings (132) (2,163)
------------------------------------------------------- ------ ---------- --------------
Total equity 117,150 115,119
------------------------------------------------------- ------ ---------- --------------
Total liabilities and equity 672,018 590,490
------------------------------------------------------- ------ ---------- --------------
The Financial Statements were approved and authorised for issue
by the Board of Directors on 27 September 2023, and were signed on
its behalf by:
Martin Reith
Chief Executive
The notes are an integral part of these Financial
Statements.
Interim condensed consolidated statement of changes in
equity
Six months ended 30 June 2023
Attributable to owners
of the Parent
-------------------------------------------------------
Share Share Revaluation Other Retained
capital premium reserve reserves earnings Total
Consolidated Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------- ------ -------- --------- ----------- ---------- --------- --------
At 1 January 2023 7,774 98,268 11,350 (110) (2,163) 115,119
Total comprehensive income for - - - - - -
the year:
Profit for the year - - - - 4,351 4,351
Other comprehensive income, net - - - - - -
of tax
-------------------------------- ------ -------- --------- ----------- ---------- --------- --------
Total comprehensive income for
the year - - - - 4,351 4,351
-------------------------------- ------ -------- --------- ----------- ---------- --------- --------
Transactions with owners: - - - - - -
Dividends paid 9 - - - - (2,320) (2,320)
Company buy back of shares 11 - - - - - -
Share issue - - - - - -
-------------------------------- ------ -------- --------- ----------- ---------- --------- --------
Total transactions with owners - - - - (2,320) (2,320)
At 30 June 2023 7,774 98,268 11,350 (110) (132) 117,150
-------------------------------- ------ -------- --------- ----------- ---------- --------- --------
At 1 January 2022 6,931 86,330 9,348 (110) 3,188 105,687
Total comprehensive income for
the year:
Loss for the year - - - - (3,007) (3,3007)
Other comprehensive income, net
of tax - - (257) - - (257)
-------------------------------- ------ -------- --------- ----------- ---------- --------- --------
Total comprehensive income for
the year - - (257) - (3,007) (3,264)
-------------------------------- ------ -------- --------- ----------- ---------- --------- --------
Transactions with owners: - - - - - -
Dividends paid 9 - - - - (2,034) (2,034)
Company buy back of shares 11 - - - - - -
Share issue - - - - - -
-------------------------------- ------ -------- --------- ----------- ---------- --------- --------
Total transactions with owners - - - - (2,034) (2,034)
-------------------------------- ------ -------- --------- ----------- ---------- --------- --------
At 30 June 2022 6,931 86,330 9,091 (110) (1,853) 100,389
-------------------------------- ------ -------- --------- ----------- ---------- --------- --------
The notes are an integral part of these Financial
Statements.
Interim condensed consolidated statement of cash flows
Six months ended 30 June 2023
At 30 June
At 30 June 2022 Unaudited
2023 Unaudited GBP'000
Note GBP'000
-------------------------------------------------------------- ------- --------------- ---------------
Cash flows from operating activities
Profit/(loss) before tax 6,336 (2,793)
Adjustments for:
- Interest received (227) (78)
- Investment income (3,502) 3,503
- Amortisation of goodwill (302) 638
Changes in working capital:
* change in fair value of financial assets held at fair
value through profit or loss 512 (617)
* Increase in financial assets at fair value through
profit or loss (30,214) (32,609)
- Increase in other receivables (18,147) (47,556)
- Increase in other payables 18,926 23,005
- net increase in technical provisions 27,941 59,933
----------------------------------------------------------------------- --------------- ---------------
Cash generated from operations 1,323 2,150
----------------------------------------------------------------------- --------------- ---------------
Income tax paid/(received) (237) (252)
----------------------------------------------------------------------- --------------- ---------------
Net cash inflow from operating activities 1,086 1,898
----------------------------------------------------------------------- --------------- ---------------
Cash flows from investing activities
Interest received 227 78
Investment income 3,502 (3,503)
Acquisition of subsidiaries, net of cash acquired (1,239) -
----------------------------------------------------------------------- --------------- ---------------
Net cash inflow/(outflow) from investing activities 2,490 (3,425)
----------------------------------------------------------------------- --------------- ---------------
Cash flows from financing activities
-------------------------------------------------------------- ------- --------------- ---------------
Net proceeds from issue of ordinary share capital - -
Proceeds from borrowings - 15,000
Repayment of borrowings - -
Dividends paid to owners of the Parent - (2,034)
----------------------------------------------------------------------- --------------- ---------------
Net cash inflow from financing activities - 12,966
----------------------------------------------------------------------- --------------- ---------------
Net increase in cash and cash equivalents 3,576 11,439
Cash and cash equivalents at beginning of period 24,624 24,625
----------------------------------------------------------------------- --------------- ---------------
Cash and cash equivalents at end of period 28,200 36,064
----------------------------------------------------------------------- --------------- ---------------
Cash held within the syndicates' accounts is GBP26,240,000 (30
June 2022: GBP23,085,000) of the total cash and cash equivalents
held at the end of the period GBP28,200,000 (30 June 2022:
GBP36,064,000). The cash held within the syndicates' accounts is
not available to the Group to meet its day-to-day working capital
requirements.
Cash and cash equivalents comprise cash at bank and in hand.
The notes are an integral part of these Financial
Statements.
Notes to the financial statements
Six months ended 30 June 2023
1. General information
The Company is a public limited company quoted on AIM. The
Company was incorporated in England, is domiciled in the UK and its
registered office is 40 Gracechurch Street, London EC3V 0BT. The
Company participates in insurance business as an underwriting
member at Lloyd's through its subsidiary undertakings.
These condensed consolidated financial statements do not
comprise statutory accounts within the meaning of section 434 of
the Companies Act 2006. Statutory accounts for the year ended 31
December 2022 were approved by the board of directors on 25 May
2023 and delivered to the Registrar of Companies. The report of the
auditors on those accounts was unqualified, did not contain an
emphasis of matter paragraph and did not contain any statement
under section 498 of the Companies Act 2006.
2. Accounting policies
Basis of preparation
These Financial Statements have been prepared in accordance with
United Kingdom Accounting Standards (UK GAAP), including FRS 102
"The Financial Reporting Standard applicable in the UK and Republic
of Ireland", FRS 103 "Insurance Contracts", FRS 104 "Interim
Financial Reporting", and the Companies Act 2006 and Schedule 3 of
the Large and Medium sized Companies and Groups (Accounts and
Reports) Regulations, relating to insurance.
The 31 December 2022 and 30 June 2022 Financial Statements were
prepared under International Financial Reporting Standards (IFRSs)
and the prior period figures have been amended to reflect the
changes in the reporting framework (see note 17).
The Condensed Consolidated Interim Financial Statements are
prepared for the six months ended 30 June 2023.
The Condensed Consolidated Interim Financial Statements for the
six months ended 30 June 2023 and June 2022 are unaudited, but have
been subject to review by the Group's auditors.
The Condensed Consolidated Interim Financial Statements
incorporate the Financial Statements of Helios Underwriting plc,
the Parent Company, and its directly and indirectly held
subsidiaries (see note 10).
The underwriting data on which these Condensed Consolidated
Interim Financial Statements are based upon has been supplied by
the managing agents of those syndicates which the Group supports.
The data supplied is the 100% figures for each syndicate. The Group
has applied its share of the syndicate participations to the gross
figures to derive its share of the syndicate's transactions, assets
and liabilities.
Going concern
The Group has net assets at the end of the reporting period of
GBP117,150,000 (31 December 2022: GBP115,119,000).
The Company's subsidiaries participate as underwriting members
at Lloyd's on the 2021, 2022 and 2023 years of account, as well as
any prior run-off years, and they intend to continue this
participation in the 2024 year of account.
The Directors have a reasonable expectation that the Group have
adequate resources to meet their underwriting and other operational
obligations for the foreseeable future. Accordingly, they continue
to adopt the going concern basis of accounting in preparing the
Financial Statements.
Significant accounting policies
The Condensed Consolidated Interim Financial Statements have
been prepared under the historical cost convention as modified by
the revaluation of the financial assets at fair value through the
Statement of Comprehensive Income.
The 31 December 2022 and the 30 June 2022 Financial Statements
were prepared in accordance International Financial Reporting
Standards (IFRSs). The 30 June 2023 Financial Statements have been
prepared in accordance with United Kingdom Accounting Standards (UK
GAAP), including FRS 102 "The Financial Reporting Standard
applicable in the UK and Republic of Ireland", FRS 103 "Insurance
Contracts" and FRS 104 "Interim Financial Reporting".
The reason for this change in reporting framework is that it is
not possible for the directors to obtain financial information in
respect of the underlying syndicate participations that would be
required to comply with IFRS 17 "Insurance Contracts" which is
effective under IFRS for accounting periods beginning on or after 1
January 2023. (see note 17).
The same accounting policies, presentation and methods of
computation are followed in these Condensed Consolidated Interim
Financial Statements as were applied in the preparation of the
Group Financial Statements for the year ended 31 December 2022
except the following as a result of the conversion from IFRS to UK
GAAP:
- positive goodwill which is taken to the Consolidated Statement
of Financial Position (CSOFP) is now amortised over the its
estimated useful life of three years (see note 17).
- goodwill on bargain purchases which was taken straight to the
Consolidated Statement of Comprehensive Income (CSOCI) under IFRS
is now capitalised and taken the CSOFP and amortised over its
estimated useful life of three years (see note 17).
Notes to the financial statements
Six months ended 30 June 2023
3. Segmental information
Martin Reith and Nigel Hanbury are the Group's chief operating
decision-makers. They determine its operating segments based on the
way the Group is managed, for the purpose of allocating resources
and assessing performance.
The Group has three segments that represent the primary way in
which the Group is managed, as follows:
-- syndicate participation;
-- investment management; and
-- other corporate activities.
Other
Syndicate Investment corporate
participation management activities Total
6 months ended 30 June 2023 Unaudited GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------ -------------- ----------- ----------- --------
Net earned premium 94,183 - (4,378) 89,805
Net investment income 3,160 (19) - 3,141
Other income - - 720 720
Net insurance claims and loss adjustment
expenses (50,107) - - (50,107)
Expenses incurred in insurance activities (34,925) - (44) (34.969)
Other operating expenses - - (2,556) (2,556)
Amortisation of goodwill - - 302 302
Profit before tax 12,311 (19) (5,956) 6,336
------------------------------------------ -------------- ----------- ----------- --------
Other
Syndicate Investment corporate
participation management activities Total
6 months ended 30 June 2022 Unaudited GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------ -------------- ----------- ----------- --------
Net earned premium 58,767 - (383) 58,384
Net investment income (3,561) 85 - (3,476)
Other income - - 442 442
Net insurance claims and loss adjustment
expenses (34,740) - (1) (34,741)
Expenses incurred in insurance activities (21,650) - (660) (22,310)
Other operating expenses - - (1,729) (1,729)
Amortisation of goodwill - - 637 637
Loss before tax (1,184) 85 (1,693) (2,793)
------------------------------------------ -------------- ----------- ----------- --------
The Group does not have any geographical segments as it
considers all of its activities to arise from trading within the
UK.
No major customers exceed 10% of revenue.
Net earned premium within 2023 other corporate activities
totalling GBP4,378,000 (2022: GBP383,000 - 2020, 2021 and 2022
years of account) represents the 2021, 2022 and 2023 years of
account net Group quota share reinsurance premium payable to HIPCC
Limited - Cell 6. This net quota share reinsurance premium payable
is included within "reinsurance premium ceded" in the Consolidated
Statement of Comprehensive Income of the period.
Notes to the financial statements
Six months ended 30 June 2023
4. Operating profit before impairments of goodwill and
capacity
Underwriting year of account*
-------------------------------------------
2020 and Pre- Corporate Other
6 months ended 30 prior 2021 2022 Sub-total acquisition reinsurance corporate Total
June 2022 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- -------- --------- --------- ----------- ------------ ------------ ---------- --------
Gross premium written 930 11,407 111,730 124,067 - - - 124,067
Reinsurance ceded (96) (2,410) (31,178) (33,684) - (383) (1,224) (35,291)
----------------------- -------- --------- --------- ----------- ------------ ------------ ---------- --------
Net premium written 834 8,997 80,552 90,383 - (383) (1,224) 88,776
----------------------- -------- --------- --------- ----------- ------------ ------------ ---------- --------
Net earned premium 3,306 35,444 21,240 59,990 - (383) (1,224) 58,383
Other income (2,315) (941) (304) (3,560) - 442 84 (3,034)
Net insurance claims
and loss adjustment
expenses 578 (20,389) (15,237) (35,048) - - 307 (34,741)
Operating expenses (843) (9,826) (10,982) (21,651) - - (2,388) (24,039)
----------------------- -------- --------- --------- ----------- ------------ ------------ ---------- --------
Operating profit
before impairments
of goodwill and
capacity 726 4,288 (5,283) (269) - 59 (3,221) (3,431)
----------------------- -------- --------- --------- ----------- ------------ ------------ ---------- --------
Quota share adjustment (150) (1,621) 1,388 (383) - 383 - -
----------------------- -------- --------- --------- ----------- ------------ ------------ ---------- --------
Operating profit
before impairments
of goodwill and
capacity
after quota share
adjustment 576 2,667 (3,895) (652) - 442 (3,221) (3,431)
----------------------- -------- --------- --------- ----------- ------------ ------------ ---------- --------
Underwriting year of account*
-------------------------------------------
2021 and Pre- Corporate Other
6 months ended 30 prior 2022 2023 Sub-total acquisition reinsurance corporate Total
June 2023 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- -------- --------- --------- ----------- ------------ ------------ ---------- --------
Gross premium written 1,606 25,982 132,905 160,493 (1,984) - - 158,509
Reinsurance ceded (1,410) (4,786) (37,624) (43,820) 542 (4,378) (1,931) (49,587)
----------------------- -------- --------- --------- ----------- ------------ ------------ ---------- --------
Net premium written 196 21,196 95,281 116,673 (1,442) (4,378) (1,931) 108,922
----------------------- -------- --------- --------- ----------- ------------ ------------ ---------- --------
Net earned premium 4,113 68,516 24,687 97,316 (1,202) (4,378) (1,931) 89,805
Other income 1,801 1,165 195 3,161 (39) 720 19 3,861
Net insurance claims
and loss adjustment
expenses 629 (36,119) (15,244) (50,734) 627 - - (50,107)
Operating expenses (2,768) (19,182) (12,974) (34,924) 430 - (3,031) (37,525)
----------------------- -------- --------- --------- ----------- ------------ ------------ ---------- --------
Operating profit
before impairments
of goodwill and
capacity 3,775 14,380 (3,336) 14,819 (184) (3,658) (4,943) 6,034
----------------------- -------- --------- --------- ----------- ------------ ------------ ---------- --------
Quota share adjustment (1,429) (3,679) 730 (4,378) - 4,378 - -
----------------------- -------- --------- --------- ----------- ------------ ------------ ---------- --------
Operating profit
before impairments
of goodwill and
capacity
after quota share
adjustment 2,346 10,701 (2,606) 10,441 (184) 720 (4,943) 6,034
----------------------- -------- --------- --------- ----------- ------------ ------------ ---------- --------
Pre-acquisition relates to the element of results from the new
acquisitions before they were acquired by the Group.
* The underwriting year of account results represent the Group's
share of the syndicates' results by underwriting year of account
before corporate member level reinsurance and members' agents
charges.
Notes to the financial statements continued
Six months ended 30 June 2023
5. Insurance liabilities and reinsurance balances
Movement in claims outstanding
Gross Reinsurance Net
GBP'000 GBP'000 GBP'000
------------------------------------------------- -------- ----------- --------
At 1 January 2023 272,015 80,726 191,289
Increase in reserves arising from acquisition of
subsidiary undertakings 5,316 1,530 3,786
Movement of reserves 15,696 (1,953) 17,649
Other movements 12,355 9,322 3,033
------------------------------------------------- -------- ----------- --------
At 30 June 2023 305,382 89,625 215,757
------------------------------------------------- -------- ----------- --------
Movement in unearned premium
Gross Reinsurance Net
GBP'000 GBP'000 GBP'000
------------------------------------------------- -------- ----------- --------
At 1 January 2023 114,663 21,333 93,330
Increase in reserves arising from acquisition of
subsidiary undertakings 1,690 301 1,388
Movement of reserves 34,899 15,782 19,117
Other movements (15,966) (4,108) (11,857)
------------------------------------------------- -------- ----------- --------
At 30 June 2023 135,286 33,308 101,978
------------------------------------------------- -------- ----------- --------
Included within other movements are the 2020 and prior years'
claims reserves reinsured into the 2021 year of account on which
the Group does not participate and currency exchange
differences.
Movement in claims outstanding
Gross Reinsurance Net
GBP'000 GBP'000 GBP'000
------------------------------------------------- -------- ----------- --------
At 1 January 2022 186,653 53,433 133,220
Increase in reserves arising from acquisition of
subsidiary undertakings - - -
Movement of reserves 17,146 3,879 13,267
Other movements 37,984 15,762 22,222
------------------------------------------------- -------- ----------- --------
At 30 June 2022 241,783 73,074 168,709
------------------------------------------------- -------- ----------- --------
Movement in unearned premium
Gross Reinsurance Net
GBP'000 GBP'000 GBP'000
------------------------------------------------- -------- ----------- --------
At 1 January 2022 59,611 10,538 49,073
Increase in reserves arising from acquisition of
subsidiary undertakings - - -
Movement of reserves 46,338 15,945 30,393
Other movements (8,440) (2,491) (5,949)
------------------------------------------------- -------- ----------- --------
At 30 June 2022 97,509 23,992 73,517
------------------------------------------------- -------- ----------- --------
Included within other movements are the 2019 and prior years'
claims reserves reinsured into the 2020 year of account on which
the Group does not participate and currency exchange
differences.
6. Net investment income
6 months 6 months
ended ended
30 June 30 June
2023 Unaudited 2022 Unaudited
GBP'0 GBP'0
00 00
------------------------------------------------------ --------------- ---------------
Investment income 3,502 (3,503)
Realised (losses)/gains on financial assets at fair
value through profit or loss (100) 12
Unrealised (losses)/gains on financial assets at fair
value through profit or loss (512) (61)
Investment management expenses 24 (2)
Bank interest 227 78
------------------------------------------------------ --------------- ---------------
Net investment income 3,141 (3,476)
------------------------------------------------------ --------------- ---------------
Included within Investment income are investment gains of
GBP3,160,000 (2022: GBP3,560,000 investment losses) from Syndicate
participations.
Notes to the financial statements continued
Six months ended 30 June 2023
7. Income tax charge
Analysis of tax charge/(credit) in the period
6 months 6 months
ended 30 ended 30
June 2023 June 2022
Unaudited Unaudited
GBP'000 GBP'000
------------------ ---------- -----------
Income tax credit 1,985 214
------------------ ---------- -----------
The income tax expense is recognised based on management's best
estimate of the weighted average annual income tax rate expected
for the full financial year. The estimated average annual tax rate
used is 23.50% (2022: 19.00%).
8. Earnings per share
Basic earnings per share is calculated by dividing the profit
attributable to ordinary shareholders after tax by the weighted
average number of ordinary shares outstanding during the
period.
Diluted earnings per share is calculated by dividing the net
profit attributable to ordinary equity holders of the Company by
the weighted average number of ordinary shares outstanding during
the period, plus the weighted average number of ordinary shares
that would be issued on the conversion of all the dilutive
potential ordinary shares into ordinary shares.
Earnings per share has been calculated in accordance with IAS 33
"Earnings per share".
The earnings per share and weighted average number of shares
used in the calculation are set out below:
6 months ended 6 months
30 June 2023 ended 30
Unaudited June 2022Unaudited
------------------------------------------------------- -------------- --------------------
Profit/(loss) for the year after tax attributable
to ordinary equity holders of the parent 4,351,000 (3,007,000)
------------------------------------------------------- -------------- --------------------
Basic - weighted average number of ordinary shares* 76,218,203 67,786,212
------------------------------------------------------- -------------- --------------------
Weighted average number of ordinary shares for diluted
earnings per share* 77,889,630 68,889,212
------------------------------------------------------- -------------- --------------------
Basic earnings/(loss) per share 5,71p (4.44)p
------------------------------------------------------- -------------- --------------------
Diluted earnings/(loss) per share 5.55p (4.44)p
------------------------------------------------------- -------------- --------------------
* Diluted loss per share is not permitted to be reduced from the
basic loss per share.
9. Dividends paid or proposed
It was proposed and agreed at the AGM on 29 June 2023 that a
dividend of 3p would be payable. The Dividend was paid post period
end on 14 July 2023 totalling GBP2,320,000 and has been accrued in
these financial statements.
10. Investments in subsidiaries
30 June 31 December
2023 2022
GBP'000 GBP'000
------ -------- -----------
Total 66,722 65,546
------ -------- -----------
Notes to the financial statements continued
Six months ended 30 June 2023
10. Investments in subsidiaries (continued)
30 June 31 December
Direct/indirect 2023 2022
interest ownership ownership Principal activity
----------------------------------- ---------------- ---------- ----------- ---------------------------
Lloyd's of London corporate
Nameco (No. 917) Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Devon Underwriting Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No. 346) Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Pooks Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Charmac Underwriting Limited Direct 100% 100% vehicle
Joint Share Ownership
RBC CEES Trustee Limited(ii) Direct 100% 100% Plan
Lloyd's of London corporate
Nottus (No 51) Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Chapman Underwriting Limited Direct 100% 100% vehicle
Llewellyn House Underwriting Lloyd's of London corporate
Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Advantage DCP Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Romsey Underwriting Limited Direct 100% 100% vehicle
Helios UTG Partner Limited(i) Direct 100% 100% Corporate partner
Lloyd's of London corporate
Salviscount LLP Indirect 100% 100% vehicle
Lloyd's of London corporate
Inversanda LLP Indirect 100% 100% vehicle
Lloyd's of London corporate
Fyshe Underwriting LLP Indirect 100% 100% vehicle
Lloyd's of London corporate
Nomina No 505 LLP Indirect 100% 100% vehicle
Lloyd's of London corporate
Nomina No 321 LLP Indirect 100% 100% vehicle
Lloyd's of London corporate
Nameco (No. 409) Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No. 1113) Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Catbang 926 Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Whittle Martin Underwriting Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No 408) Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Nomina No 084 LLP Indirect 100% 100% vehicle
Lloyd's of London corporate
Nameco (No 510) Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No 544) Limited Direct 100% 100% vehicle
Lloyd's of London corporate
N J Hanbury Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No 1011) Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No 1111) Limited Direct 100% 100% vehicle
Nomina No 533 LLP Indirect 100% 100% Corporate partner
North Breache Underwriting Lloyd's of London corporate
Limited Direct 100% 100% vehicle
Lloyd's of London corporate
G T C Underwriting Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Hillnameco Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No 2012) Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No 1095) Limited Direct 100% 100% vehicle
Lloyd's of London corporate
New Filcom Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Kemah Lime Street Capital Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No 1130) Limited Direct 100% 100% vehicle
Nomina No 070 LLP Indirect 100% 100% Corporate partner
Lloyd's of London corporate
Nameco (No 389) Limited Direct 100% 100% vehicle
Nomina No 469 LLP Indirect 100% 100% Corporate partner
Nomina No 536 LLP Indirect 100% 100% Corporate partner
Lloyd's of London corporate
Nameco (No 301) Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No 1232) Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Shaw Lodge Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Queensberry Underwriting Direct 100% 100% vehicle
Nomina No 472 LLP Indirect 100% 100% Corporate partner
Nomina No 110 LLP Indirect 100% 100% Corporate partner
Lloyd's of London corporate
Chanterelle Underwriting Limited Direct 100% 100% vehicle
Kunduz LLP Indirect 100% 100% Corporate partner
Lloyd's of London corporate
Exalt Underwriting Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No 1110) Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Clifton 2011 Limited Direct 100% 100% vehicle
Nomina No 378 LLP Indirect 100% 100% Corporate partner
Gould Scottish Limited Partnership Indirect 100% 100% Corporate partner
Lloyd's of London corporate
Harris Family UTG Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Whitehouse Underwriting Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Risk Capital UTG Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No 606) Limited Direct 100% 100% vehicle
Lloyd's of London corporate
Nameco (No 1208) Limited Direct 100% 100% vehicle
(i) Helios UTG Partner Limited, a subsidiary of the Company,
owns 100% of Salviscount LLP, Inversanda LLP, Fyshe Underwriting
LLP, Nomina No 505 LLP, Nomina No 321 LLP Nomina No 084 LLP, Nomina
No 533 LLP, Nomina No 070 LLP, Nomina No 469 LLP, Nomina No 536
LLP, Nomina No 472 LLP, Nomina No 110 LLP, Kunduz LLP. Nomina No
348 LLP and Gould Scottish Limited Partnership. The cost of
acquisition of these LLPs is accounted for in Helios UTG Partner
Limited, their immediate parent company.
(ii) RBC CEES Trustee Limited was an incorporated entity in year
2017 to satisfy the requirements of the Joint Share Ownership.
Notes to the financial statements continued
Six months ended 30 June 2023
11. Share capital and share premium
Partly
Ordinary share paid ordinary Share
Number of capital share capital premium Total
shares (i) GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------------------------- ----------- -------------- -------------- -------- --------
Ordinary shares of 10p each and share premium at 31
December 2022 77,737,372 7,664 110 98,268 106,042
----------------------------------------------------- ----------- -------------- -------------- -------- --------
Ordinary shares of 10p each and share premium at 30
June 2023 77,737,372 7,664 110 98,268 106,042
----------------------------------------------------- ----------- -------------- -------------- -------- --------
(i) Number of shares
30 June 2023 31 December 2022
------------------------------------------------------------------- ------------ ----------------
Allotted, called up and fully paid ordinary shares:
On the market 76,218,203 76,218,203
Company buy back of ordinary shares held in treasury 419,169 419,169
------------------------------------------------------------------- ------------ ----------------
76,637,372 76,637,372
------------------------------------------------------------------- ------------ ----------------
Uncalled and partly paid ordinary share under the JSOP scheme (ii) 1,100,000 1,100,000
------------------------------------------------------------------- ------------ ----------------
77,737,372 77,737,372
------------------------------------------------------------------- ------------ ----------------
(ii) The partly paid ordinary shares are not entitled to
dividend distribution rights during the year.
12. Related party transactions
A number of subsidiary companies have entered into quota share
reinsurance contracts for the 2021, 2022 and 2023 years of account
with protected cell companies of HIPCC Limited.
Nigel Hanbury, a Director of Helios Underwriting plc and its
subsidiary companies, is also a director and majority shareholder
in HIPCC Limited. Hampden Capital plc, a substantial shareholder in
Helios Underwriting plc, is also a substantial shareholder in HIPCC
Limited - Cell 6. Under quota share agreements between Cell 6 and
certain Helios subsidiaries, the Group accrued a net reinsurance
premium payable of GBP1,736,000 (31 December 2022: GBP1,921,000
recoverable) during the period.
In addition, HIPCC provide stop loss, portfolio stop loss and
HASP reinforce policies for the company.
HIPCC Limited acts as an intermediary for the reinsurance
products purchased by Helios. An arrangement has been put in place
so that 51% of the profits generated by HIPCC (being Nigel Hanburys
share) in respect of the business relating to Helios will be repaid
to Helios for the business transacted for the 2021 and subsequent
underwriting years.
13. Ultimate controlling party
The Directors consider that the Group has no ultimate
controlling party.
Notes to the financial statements continued
Six months ended 30 June 2023
14. Acquisition of Lloyd's Limited Liability Vehicles
During the period, the company has acquired the following
Lloyd's Limited Liability Vehicles either directly, or
indirectly:
Helios Acquisitions
2023 Purchase Fair Goodwill
Date of Capacity price value recognised
acquisition of asset
acquired
2 June
Nameco (No 606) Limited 2023 2,024,096 1,175,131 1,112,121 63,010
12 June
Nameco (No 1208) Limited 2023 1,776,807 - 87,000 (87,000)
Total Acquisitions Completed 3,800,903 1,175,131 1,112,208 (23,990)
15. Syndicate participations
The syndicates and members' agent pooling arrangements ("MAPA")
in which the Company's subsidiaries participate as corporate
members of Lloyd's are as follows:
Allocated capacity per
year of account
-------------------------------------
Syndicate
or 2023 2022 2021
MAPA number Managing or members' agent GBP GBP GBP
------------ ------------------------------------- ----------- ----------- -----------
33 Hiscox Syndicates Limited 14,862,935 14,862,935 14,837,949
218 IQUW Syndicate Management Limited 17,624,778 7,427,997 7,428,004
Cincinnati Global Underwriting Agency
318 Limited 862,407 992,637 992,635
386 QBE Underwriting Limited 2,966,471 2,897,646 2,634,241
510 Tokio Marine Kiln Syndicates Limited 27,562,480 33,536,417 23,760,440
557 Tokio Marine Kiln Syndicates Limited - 3,485,330 3,485,330
609 Atrium Underwriters Limited 17,661,850 13,153,869 12,653,790
623 Beazley Furlonge Limited 28,099,719 22,713,565 19,890,751
727 S A Meacock & Company Limited 2,834,522 2,323,378 2,255,711
1176 Chaucer Syndicates Limited 2,854,340 2,854,339 2,854,347
1200 Argo Managing Agency Limited 54,999 10,050,000 -
1729 Asta Managing Agency Limited 20,083,504 1,211,467 189,401
1902 Asta Managing Agency Limited 10,688,300 10,000,002 -
1955 Arch Managing Agency Limited 12,500,000 - -
1969 Apollo Syndicate Management Limited 12,170,742 5,675,170 459,001
1971 Apollo Syndicate Management Limited 10,000,001 6,467,147 -
1985 Asta Managing Agency Limited 16,874,190 - -
1988 Asta Managing Agency Limited 15,000,000 - -
2010 Lancashire Syndicates Limited 7,713,238 10,499,418 9,864,905
2121 Argenta Syndicate Management Limited 140,000 10,134,894 5,577,177
2288 Astra Managing Agency Limited - - -
2525 Asta Managing Agency Limited 2,141,973 1,721,029 1,601,833
2689 Asta Managing Agency Limited 2,686,871 10,100,276 534,813
2791 Managing Agency Partners Limited 11,677,739 9,850,281 9,850,285
4242 Asta Managing Agency Limited 10,749,622 12,937,527 8,933,909
4444 Canopius Managing Agents Limited 21,176 20,000 182,189
5183 Asta Managing Agency Limited 5,000,000 - -
5623 Beazley Furlonge Limited 17,631,646 6,894,032 4,769,792
5886 Asta Managing Agency Limited 26,929,794 22,989,002 12,432,907
6103 Managing Agency Partners Limited 3,263,814 3,447,515 3,072,388
6104 Hiscox Syndicates Limited - 1,758,333 1,781,360
6107 Beazley Furlonge Limited 132,363 1,649,683 1,649,378
6117 Argo Managing Agency Limited 230,404 2,957,188 2,104,208
6133 Apollo Syndicate Management Limited - - -
------------ ------------------------------------- ----------- ----------- -----------
Total 300,479,878 241,611,077 153,796,744
------------ ------------------------------------- ----------- ----------- -----------
Notes to the financial statements continued
Six months ended 30 June 2023
16. Group-owned net assets
The Group statement of financial position includes the following
assets and liabilities held by the syndicates on which the Group
participates. These assets are subject to trust deeds for the
benefit of the relevant syndicates' insurance creditors. The table
below shows the split of the statement of financial position
between Group and syndicate assets and liabilities:
30 June 2023 31 December 2022
--------------------------------------- ----------------------------- ------------------------------
Group Syndicate Total Group Syndicate Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------------- -------- --------- -------- -------- --------- ---------
Assets
Intangible assets 61,236 - 61,236 59,375 - 59,375
Financial assets at fair value
through profit or loss 77,297 182,253 259,550 73,771 152,242 226,013
Reinsurance assets:
- reinsurers' share of claims
outstanding 60 89,565 89,625 60 80,666 80,726
- reinsurers' share of unearned
premium - 33,308 33,308 - 21,333 21,333
Other receivables, including
insurance and reinsurance receivables 1,790 163,525 165,315 3,103 144,573 147,676
Deferred acquisition costs - 26,696 26,696 - 24,991 24,991
Prepayments and accrued income 5,168 2,920 8,088 3,746 1,330 5,076
Cash and cash equivalents 1,960 26,240 28,200 10,254 15,046 25,300
--------------------------------------- -------- --------- -------- -------- --------- ---------
Total assets 147,511 524,507 672,018 150,309 440,181 590,490
--------------------------------------- -------- --------- -------- -------- --------- ---------
Liabilities
Insurance liabilities:
- claims outstanding - 305,382 305,382 - 272,015 272,015
- unearned premium - 135,286 135,286 - 114,663 114,663
Deferred income tax liabilities 13,921 - 13,921 11,228 84 11,312
Borrowings 15,000 - 15,000 15,000 - 15,000
Other payables, including insurance
and reinsurance payables 2,170 74,305 76,475 157 54,736 54,893
Accruals and deferred income 5,562 3,242 6,484 3,682 3,806 7,488
--------------------------------------- -------- --------- -------- -------- --------- ---------
Total liabilities 36,653 518,215 552,548 30,067 445,304 475,371
--------------------------------------- -------- --------- -------- -------- --------- ---------
Equity attributable to owners
of the Parent
Share capital 7,774 - 7,774 7,774 - 7,774
Share premium 98,268 - 98,268 98,268 - 98,268
Revaluation reserve 11,350 - 11,350 11,350 - 11,350
Other reserves (110) - (110) (110) - (110)
Retained earnings (6,424) 6,292 (132) 2,960 (5,123) (2,163)
--------------------------------------- -------- --------- -------- -------- --------- ---------
Total equity 110,858 6,292 117,150 120,242 (5,123) (115,119)
--------------------------------------- -------- --------- -------- -------- --------- ---------
Total liabilities and equity 147,511 524,507 672,018 150,310 440,181 590,491
--------------------------------------- -------- --------- -------- -------- --------- ---------
Notes to the financial statements continued
Six months ended 30 June 2023
17. Changes arising from the conversion from IFRS to UK GAAP
The 31 December 2022 and the 30 June 2022 Financial Statements
were prepared in accordance with International Financial Reporting
Standards (IFRSs). The 30 June 2023 Financial Statements have been
prepared in accordance with United Kingdom Accounting Standards (UK
GAAP), including FRS 102 "The Financial Reporting Standard
applicable in the UK and Republic of Ireland", FRS 103 "Insurance
Contracts" and FRS 104 "Interim Financial Reporting".
The reason for this change in reporting framework is that it is
not possible for the directors to obtain financial information in
respect of the underlying syndicate participations that would be
required to comply with IFRS 17 "Insurance Contracts" which is
effective under IFRS for accounting periods beginning on or after 1
January 2023.
Under IFRS any goodwill on bargain purchases is credited
immediately to the Consolidated Statement of Comprehensive Income
(CSOCI). Any positive goodwill is taken to the Consolidated
Statement of Financial Position (CSOFP) and subject to an annual
impairment review. Under UK GAAP, both goodwill on bargain
purchases and positive goodwill are taken to the CSOFP and
amortised over their estimated useful life.
The directors have concluded an estimate d useful life of three
years for both elements of goodwill to be amortised over, which i s
in line with the usual life of a Lloyd's underwriting year of
account .
The prior period figures have been adjusted to reflect the
changes in the accounting framework as per below:
Total other comprehensive loss GBP'000
Total other comprehensive (loss)/income for the period - as
originally reported at 30 June 2022 under IFRS (3,902)
Impact of IFRS to UK GAAP conversion - bargain purchase goodwill
amortisation 670
Impact of IFRS to UK GAAP conversion - positive goodwill amortisation (32)
--------
Total other comprehensive loss for the period - at 30 June
2022 under UK GAAP (3,264)
--------
Total equity GBP'000
Total equity - as originally reported at 31 December 2022 under
IFRS 117,178
Impact of IFRS conversion to UK GAAP - total bargain purchases
goodwill booked to 31 December 2022 (4,182)
Impact of IFRS conversion to UK GAAP - cumulative bargain purchase
goodwill amortisation to 31 December 2022 3,108
Impact of IFRS conversion to UK GAAP - cumulative positive
goodwill amortisation to 31 December 2022 (985)
--------
Total equity - at 31 December 2022 under UK GAAP 115,119
--------
Goodwill intangible assets GBP'000
Positive goodwill intangible assets - as originally reported
at 31 December 2022 under IFRS 1,468
Impact of IFRS conversion to UK GAAP - positive goodwill amortisation
to 31 December 2022 (985)
--------
Positive goodwill intangible assets - as reported at 31 December
2022 under UK GAAP 483
Impact of IFRS conversion to UK GAAP - bargain purchase goodwill
booked to 31 December 2022 (4,182)
Impact of IFRS conversion to UK GAAP - bargain purchase goodwill
amortisation to 31 December 2022 3,108
--------
Bargain purchase goodwill amortisation to 31 December 2022
under UK GAAP (1,074)
Goodwill intangible asset - at 31 December 2022 under UK GAAP (591)
--------
Notes to the financial statements continued
Six months ended 30 June 2023
18. Event after the financial reporting period
Acquisitions of LLV's since the period end
Since the Financial reporting period, the company has acquired
the following entities either directly, or indirectly:
Helios Acquisitions
2023 Purchase Humphrey Discount
Capacity price Valuation to Humphreys
m GBPm (%)
Chorlton Underwriting
Limited 2.1 2.0 2.1 10.0%
Park Farm Underwriting
Limited 2.3 3.2 3.4 6.3%
----------- ---------- ------------
Total 4.4 5.2 5.5
----------- ---------- ------------
Notes to the financial statements continued
Six months ended 30 June 2023
Directors, Registered office and advisers
Directors
Michael John Wade (Non-Executive Chairman) appointed 29 June
2023
Martin Robert Davidson Reith (Chief Executive Officer)
Nigel John Hanbury (Executive Deputy Chairman)
Andrew Hildred Christie (Non-Executive Director)
Arthur Roger Manners (Finance Director)
Edward Fitzalan-Howard (Non-Executive Director)
Thomas John Libassi (Non-Executive Director)
Company secretary
Martha Bruce
Shakespeare Martineau
No 1 Colmore Square
Birmingham B4 6AA
Company number
05892671
Registered office
40 Gracechurch Street
London EC3V 0BT
Statutory auditors
PKF Littlejohn LLP
15 Westferry Circus
Canary Wharf
London E14 4HD
Nominated adviser and broker
Numis Sercurities Limited
45 Gresham Street
London EC2V 7BF
Lloyd's members' agent
Hampden Agencies Limited
40 Gracechurch Street
London EC3V 0BT
Registrars
Neville Registrars Limited
Neville House
Steelpark Road
Halesowen B62 8HD
INDEPENT REVIEW REPORT TO HELIOS UNDERWRITING PLC
Conclusion
We have been engaged by the group to review the condensed set of
financial statements in the half-yearly financial report for the
six months ended 30 June 2023 which comprises the Interim Condensed
Consolidated Income Statement, the Interim Condensed Statement of
Comprehensive Income, the Interim Condensed Statement of Financial
Position, the Interim Condensed Statement of Changes in Equity, the
Interim Condensed Statement of Cash Flows, and related notes. We
have read the other information contained in the half-yearly
financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
June 2023 is not prepared, in all material respects, in accordance
with FRC's Financial Reporting Standard 104 and AIM Rules for
Companies.
Basis for conclusion
We conducted our review in accordance with International
Standard on Review Engagements (UK) 2410, "Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity", issued for use in the United Kingdom. A review of interim
financial information consists of making enquiries, primarily of
persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does
not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
As disclosed in note 2, the annual financial statements of the
group are prepared in accordance with UK GAAP. The condensed set of
financial statements included in this half-yearly financial report
has been prepared in accordance with FRC's Financial Reporting
Standard 104, "Interim Financial Reporting".
Conclusions relating to going concern
Based on our review procedures, which are less extensive than
those performed in an audit as described in the Basis for
conclusion section of this report, nothing has come to our
attention to suggest that management have inappropriately adopted
the going concern basis of accounting or that management has
identified material uncertainties relating to going concern that
are not appropriately disclosed.
This conclusion is based on the review procedures performed in
accordance with ISRE (UK) 2410, however future events or conditions
may cause the group to cease to continue as a going concern.
Responsibilities of directors
The directors are responsible for preparing the half-yearly
financial report in accordance with the AIM Rules for
companies.
In preparing the half-yearly financial report, the directors are
responsible for assessing the group's ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the
directors either intend to liquidate the group or to cease
operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the review of financial
information
In reviewing the half-yearly report, we are responsible for
expressing to the group a conclusion on the condensed set of
financial statements in the half-yearly financial report. Our
conclusion, including our Conclusions relating to going concern,
are based on procedures that are less extensive than audit
procedures, as described in the Basis for conclusion paragraph of
this report.
Use of our report
This report is made solely to the company's directors, as a
body, in accordance with the terms of our engagement letter dated
29 August 2023. Our review has been undertaken so that we might
state to the company's directors those matters we have agreed to
state to them in a reviewer's report and for no other purpose. To
the fullest extent permitted by law, we do not accept or assume
responsibility to anyone, other than the company and the company's
directors as a body, for our work, for this report, or for the
conclusions we have formed.
PKF Littlejohn LLP
15 Westferry Circus
Statutory Auditor
Canary Wharf
27 September 2023
London E14 4HD
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCBIGDCRDDDGXR
(END) Dow Jones Newswires
September 28, 2023 02:00 ET (06:00 GMT)
Grafico Azioni Helios Underwriting (LSE:HUW)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Helios Underwriting (LSE:HUW)
Storico
Da Mag 2023 a Mag 2024
