Helios Underwriting plc
Helios Underwriting Interim
results announcement 2024
Portfolio continues to
benefit from outstanding Lloyd's market
conditions
Helios Underwriting ('Helios' or the
'Company'), the only publicly traded company offering instant
access to a diverse portfolio of syndicates at Lloyd's of London,
the world's largest insurance market, is pleased to announce its
interim financial results for the half year ended 30 June
2024.
The Lloyd's Market continues to
report excellent performance and the outlook for 2025 is also
positive. Consequently, Helios will benefit from its outstanding
pipeline profits generated from its spread Lloyd's syndicate
portfolio.
2024
interim results: key financial highlights
· Gross
written premiums increased by 45% to £230m (HY 2023 - £159m)
reflecting the increase in the capacity portfolio
· Further rate increase achieved by the Lloyd's market of 1.5%
(HY 2023 9.1%) over the six-month period continuing the excellent
market conditions at Lloyd's.
· Similar underwriting result of £10.8m (HY 2023- £11.6m) with
an 92% combined ratio
· Proforma combined ratio of 88% having stripped out the impact
of the growth of the portfolio
· An
increase of 62% (2023 33%) in the retained capacity and
underwriting exposure for the 2024 Year of Account to £397m (2023 -
£245m) and this will contribute to the underwriting result in the
future.
· Group
investment returns of £2.7m (HY 2023 - £0.0m) have been booked in
the first six months benefiting from the higher yields seen since
2023
· Operating profit of £6.5m (HY
2023 - £6.0m)
· Capital returned to shareholders of 12p per share (FY 2023 -
7p per share)
· Net
asset value per share is £1.91 per share as at June (FY 2023
- £1.89 per
share)
Executive Chairman, Michael Wade, commented:
"The Lloyd's market is experiencing exceptionally
good market conditions, as increased underwriting discipline
combines with strong growth and sustainable price increases.
Helios' financial performance so far this year reflects the
strength of our proposition as well as the overall health of the
Lloyd's market.
"In the first half of the year, we
have expanded our retained Lloyd's syndicate capacity participation
to £397m, whilst cash levels remain strong at £35m. We remain
confident that our spread Lloyd's syndicate portfolio strategy will
continue to generate attractive returns for
shareholders.
"This year we were also delighted to
welcome John Chambers and Katie Wade to our Board as Independent
Non-Executive Directors, both of whom bring different backgrounds
and perspectives that will expand the breadth and depth of
expertise of the Board.
"We remain satisfied with our 2024
Lloyd's syndicate portfolio and will be re-positioning our balance
for 2025, reducing new syndicate participations, as we manage the
underwriting cycle. We are making good progress in reducing
prospective operational costs and attracting fee earning Third
Party capacity alongside our syndicate participations."
For
more information, please contact:
Helios Underwriting plc
Michael Wade - Executive
Chairman
Email: Michael.wade@huwplc.com
Tel: +44 (0) 203 880 7518
Arthur Manners - Chief Financial
Officer
Email: Arthur.manners@huwplc.com
Tel: +44 (0)203 965
6441
Deutsche Numis (Nomad and
Broker)
Giles Rolls / Charles
Farquhar
+44 (0)20 7260 1000
FTI Consulting
Ed
Berry / Nathan Hambrook-Skinner
+44 (0)7703 330 199 / +44 (0)7977
817 092
Interim Results
Six months ended 30 June
2024
Helios Underwriting plc is the only listed
vehicle where investors can own a share in a company which
participates across a broad spread of Lloyd's syndicates and where
the Funds at Lloyd's (FAL) ratio is less than 50% meaning that for
every £1 of capital at work it underwrites £2 or more in
capacity.
|
SUMMARY FINANCIAL
INFORMATION
|
|
|
6 months to 30
June
|
|
|
2024
|
2023
|
|
|
£000's
|
£000's
|
|
|
Underwriting result
|
10,881
|
11,658
|
|
|
Investment Income -
syndicates
|
5,823
|
3,160
|
|
|
Net quota share
|
(4,086)
|
(4,378)
|
|
|
Net profits from
portfolio
|
12,618
|
10,441
|
|
|
Other income
|
4,644
|
739
|
|
|
Costs
|
(10,813)
|
(5,146)
|
|
|
Operating profit for the
period
|
6,450
|
6,034
|
|
|
Profit after tax
|
5,681
|
4,351
|
|
|
Earnings per share
|
7.40p
|
5.71p
|
|
|
Net Asset Value per Share
|
£1.91
|
£1.54
|
|
Capacity Portfolio Result
The underwriting results remain
strong as the underlying profitability of the growing portfolio
continues to be recognised. The improved terms achieved in
the last few years on all lines business and the muted impact of
worldwide natural catastrophes in the period has contributed to the
profitability of the portfolio.
|
|
2024
|
2023
|
%
Chg
|
|
£000's
|
£000's
|
|
|
Portfolio capacity
|
512,084
|
310,798
|
65%
|
|
Gross premium written
|
230,495
|
160,493
|
44%
|
|
Net earned premium
|
129,965
|
97,316
|
34%
|
|
Net insurance claims & operating
expenses
|
(119,084)
|
(85,658)
|
39%
|
|
Underwriting result
|
10,881
|
11,658
|
|
|
Combined ratio
|
92%
|
88%
|
|
The 44% increase in the gross
written premiums reflect the 65% growth of the capacity portfolio
to £512m for the 2024 underwriting year. The earnings from
the increased capacity for 2024 year of account will be a drag on
overall profitability in 2024 due to nature of the recognition of
underwriting profits for an underwriting year. The growth of the
capacity portfolio in 2024 has impacted the combined ratio of 92%
by 4% resulting in a proforma net combined ratio of 88%.
The contribution of the open
years of account to the result of the Capacity Portfolio for the
six months to 30th June 2024 is as follows:
|
|
2022 and
prior
|
2023
|
2024
|
Total
|
|
£000's
|
£000's
|
£000's
|
£000's
|
|
Portfolio capacity by underwriting
year
|
245,249
|
310,798
|
512,112
|
|
|
Gross Underwriting result
|
1,523
|
18,569
|
(9,211)
|
10,881
|
|
Investment Income
|
3,344
|
1,809
|
669
|
5,822
|
|
Portfolio result by underwriting
year
|
4,867
|
20,378
|
(8,541)
|
16,704
|
|
Gross result as % of
capacity
|
2.0%
|
6.6%
|
-1.7%
|
|
|
Helios retained %
|
75%
|
79%
|
78%
|
|
|
Helios share of the portfolio
result
|
3,675
|
16,048
|
(7,104)
|
12,618
|
|
|
|
|
|
|
The underwriting contribution from
the 2022 underwriting years reflects the expected development of
that year. The 2023 underwriting year has made a significant
contribution to the earned profits in the six months reflecting the
larger retained capacity and the expected much improved
underwriting result from that year.
2024 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 2024 year,
given the increased underwriting exposure, will benefit the
underwriting result in the future.
The development of the earned
profits by year of account is shown below:
|
As a % of capacity
|
2022
|
2023
|
2024
|
|
Portfolio profits / (losses) bought
forward
|
6.5%
|
2.7%
|
-
|
|
Profit profits earned in the 6
months to 30th June 2024
|
2.0%
|
6.6%
|
-1.7%
|
|
Cumulative profits earned to
date
|
8.5%
|
9.3%
|
-1.7%
|
|
Mid-point estimates as at 30th June
2024
|
9.0%
|
13.0%
|
-
|
The development of the 2022
underwriting year is tracking expectations and the 2023 is showing
much improved profitability as a result of the absence of major
catastrophes impacting the year and as the improved pricing is
reflected in the result.
Retained capacity update
|
|
Year of
Account
|
|
|
£m
|
2022
|
2023
|
2024
|
CAGR
|
|
Retained Capacity
|
184.5
|
244.5
|
397.0
|
29%
|
|
Third Party Capacity
|
60.8
|
66.3
|
115.1
|
38%
|
|
Total Portfolio
|
245.2
|
310.8
|
512.1
|
44%
|
The capacity portfolio has been
grown by a compound rate of 44% over the last three years to £512m
for the 2024 year of account to take advantage of the excellent
market conditions. The retained capacity providing
underwriting exposure to shareholders has increased to £397m which
is expected to form the bedrock of earnings in the next two
years. Helios will continue to act
for and expand its Third Party capital business into 2025 so that
fees and commissions from the Third Party
capital providers will increase, particularly as profits are
recognised on the portfolio in the future.
New
Syndicate Analysis
The table below shows the
development of the new syndicate participations within the
portfolio. Helios has supported syndicates that have been
established recently but the proportion of New Syndicates within
the overall portfolio is expected to reduce in 2025 to below 16% of
the overall portfolio. The categories below are:
· New
syndicate - being a new venture providing an opportunity to
participate in portfolios that offer diversification to the
existing established syndicates at Lloyd's. We do not
anticipate supporting any new syndicates that are expecting to
commence trading in 2025
· Syndicates trading for less than three years - we would
consider that syndicates that have been trading for less than 3
years to be "new syndicates". Syndicates that commenced
trading in 2024 and 2023 would be included in this
category.
· New
syndicate out of an established MGA - we have supported new
syndicates that have transferred an underwriting portfolio with a
profitable track record as an MGA. The proven profitability
of the portfolio to be underwritten reduces the execution risk of
setting up a new syndicate
|
|
2023
|
2024
|
Pro-forma
2025
|
|
New Syndicate
|
7%
|
12%
|
0%
|
|
Syndicate trading for less than 3
years
|
8%
|
13%
|
9%
|
|
New Syndicate out of established
MGA
|
0%
|
10%
|
7%
|
|
|
16%
|
34%
|
16%
|
The Board is currently undertaking a
review of the capacity portfolio taking into account the expected
evolution of the insurance underwriting cycle and expecting to
reduce the proportion of the portfolio that is termed as "new
syndicates". A detailed review of the New Syndicates is being
undertaken to establish whether support in the future will be
beneficial to the portfolio. As these new syndicates build
their businesses, demonstrate the profitability of their
portfolios, after three years of operation, the Board will no
longer consider them as "new syndicates"
Costs
The costs incurred in the six months
to 30th June 2024 are as follows:
|
|
6 months to 30th
June
|
|
|
2024
|
2023
|
|
|
£000's
|
£000's
|
|
Portfolio Stop loss
|
1,750
|
1,083
|
|
Portfolio financing costs
|
1,166
|
1,778
|
|
Unsecured Loan Note
Interest
|
2,821
|
-
|
|
Operating costs
|
5,076
|
2,285
|
|
Total Costs
|
10,813
|
5,146
|
The stop loss premiums have
increased in line with the growth of the retained capacity.
The Portfolio Financing costs have reduced as the bank loan of £15m
was repaid in December 2023 although the excess of loss facility
remains in place. $75m of Unsecured Loan Notes were issued in
December 2023 to re-finance existing debt and to provide additional
working capital.
Earlier in the year Helios examined
the possibility of establishing its own 'follow-only' Lloyd's
syndicate although the board ultimately decided against pursuing it
- the non-recurring costs of aborting the project including the
costs of re-organization are contained within these first half
results and have increased the costs by £1m+.
As we look towards to 2025 there
will be a sharp reduction in overall costs - we will provide more
details at year end.
Investment Return
|
|
£000's
|
£000's
|
Yield
|
|
Syndicate investment
assets
|
281,949
|
5,822
|
2.06%
|
|
Group investment assets
|
75,511
|
2,748
|
3.64%
|
|
|
357,460
|
8,570
|
2.41%
|
Helios's share of the syndicate
investments has increased by 54% since 30 June 2023 and has
generated a positive return of 2.09% in the first 6 months of the
year. The Group funds are invested in short term bonds and
bank deposits the Group's share of the syndicate investments is
expected to continue to increase to reflect the growth of the
capacity portfolio.
Capital Position as at 30th June
2024
|
Underwriting capital
|
30 June
2024
|
31 December
2023
|
|
£m
|
£m
|
|
Third Party Capital
|
31.5
|
31.3
|
|
Excess of loss funds at
Lloyd's
|
25.9
|
25.8
|
|
Helios own funds
|
67.2
|
69.9
|
|
Solvency credits
|
77.1
|
47.0
|
|
Total
|
201.7
|
173.7
|
|
|
|
|
|
Total Portfolio
|
512.1
|
310.8
|
|
Capacity supported by Third Party
members
|
(51.7)
|
-
|
|
Total Helios Capacity
|
460.4
|
310.8
|
|
Economic capital
requirement
|
167.3
|
128.6
|
|
Capital Ratio
|
36.2%
|
41%
|
|
Surplus Capital
|
34.3
|
1.6
|
The total capacity for the purpose
of determining the capital requirements of Helios excludes the part
of the capacity allocated to Third Party Capital. The improvement
in the Solvency position of the capacity portfolio, increasing the
solvency credits to £77m as profits have been recognized within the
supported syndicates of which £47m is currently being used to
support the underwriting. .
Net asset value per share
The growth in the net asset value per share
remains a key management metric for determining growth in value to
shareholders.
|
|
30 June
2024
|
31 December
2023
|
|
£'000
|
£'000
|
|
Net assets
|
58,309
|
57,984
|
|
Fair value and capacity
(WAV)
|
82,436
|
82,436
|
|
Total net assets
|
140,553
|
140,101
|
|
Shares in issue
|
73,727
|
74,186
|
|
Net asset value per share
(£)
|
1.91
|
1.89
|
The net asset value per share is £1.91p per
share (Dec 2023 - £1.89p per share) having paid a dividend of 6p
per share. The net assets include a deferred tax provision of
£20m on the value of the capacity portfolio.
Return of Capital to Shareholders
Helios is committed to returning
capital to shareholders. In 2024 capital of 12p per share (7p per
share - 2023 has been returned to shareholders, a 70%
increase. The capital has been returned by way of 6p base
dividend (2023 - 3p base dividend) and by the repurchase of shares,
mostly recently in July 2024.
|
Return of capital to
shareholders
|
|
|
2024
|
2023
|
|
|
|
£m
|
Pence per
share
|
£m
|
Pence per
share
|
|
|
Share buyback
|
4.5
|
6
|
3.2
|
4
|
|
|
Base
Dividend
|
4.5
|
6
|
2.3
|
3
|
|
|
Per share (in pence)
|
9
|
12
|
5.5
|
7
|
|
The repurchase of 2.5m ordinary shares in July
2024 at £1.50 per share, a discount of 41p to the net asset value
is expected to enhance net asset value per share at the end of the
year.
Financial results summary
Six months ended 30 June 2024
|
|
6 months to 30 June
2024
£'000
|
6 months to 30 June
2023
£'000
|
|
|
|
|
|
Underwriting profits
|
12,618
|
10,441
|
|
Other Income
|
|
|
|
Fees from reinsurers
|
1,151
|
720
|
|
Amortisation of goodwill
|
169
|
302
|
|
Other income
|
745
|
-
|
|
Investment income
|
2,748
|
19
|
|
Total Other Income
|
4,813
|
1,041
|
|
Costs
|
|
|
|
Pre-acquisition
|
-
|
(184)
|
|
Portfolio stop loss costs
|
(1,750)
|
(1,083)
|
|
Portfolio financing costs
|
(1,166)
|
(1,778)
|
|
Unsecured loan note
interest
|
(2,821)
|
-
|
|
Operating costs
|
(5,075)
|
(2,101)
|
|
Total Costs
|
(10,812)
|
(5,146)
|
|
Operating profit before impairments
of goodwill
and capacity
|
6,619
|
6,336
|
|
Tax
|
(938)
|
(1,985)
|
|
Profit for the period
|
5,681
|
4,351
|
Period to 30 June 2024
|
|
Helios
retained
capacity
at
30 June
2024
£m
|
Portfolio
mid-point
forecasts
|
|
|
2022
|
184.5
|
8.99%
|
3,675
|
|
2023
|
244.5
|
13.0%
|
16,048
|
|
|
|
|
|
|
|
|
|
|
Period to 30 June 2023
|
|
Helios
retained
capacity
at
30 June
2023
£m
|
Portfolio
mid-point
forecasts
|
|
|
2021
|
102.3
|
4.90%
|
2,346
|
|
2022
|
180.9
|
5.68%
|
10,701
|
|
|
|
|
|
|
|
|
|
|
Financial results summary continued
Six months ended 30 June 2024
Summary Balance
Sheet
The summary Group balance sheet
excludes items relating to syndicate participations. See Note 15
for further information.
|
|
30 June
2024
£'000
|
31 December
2023
£'000
|
|
31Intangible assets
|
82,287
|
61,236
|
|
Funds at Lloyd's
|
75,511
|
77,297
|
|
Other cash
|
35,517
|
2,020
|
|
Other assets
|
10,710
|
6,958
|
|
Total assets
|
204,025
|
147,511
|
|
Deferred tax
|
22,889
|
13,921
|
|
Borrowings
|
59,524
|
15,000
|
|
Other liabilities
|
22,694
|
7,732
|
|
Total liabilities
|
105,107
|
36,653
|
|
Syndicate equity
|
41,635
|
6,292
|
|
Total equity
|
140,553
|
117,150
|
Summary cash flow
Analysis of free working capital
|
30 June
2024
£'000
|
30 June
2023
£'000
|
|
Opening Balance
|
40,913
|
10,254
|
|
Distribution of profits (net of tax retentions
& QS Payments)
|
7,439
|
3,091
|
|
Transfers from Funds at Lloyd's
|
32,093
|
2,508
|
|
Other income
|
931
|
375
|
|
Sale / Purchase of capacity
|
-
|
-
|
|
Operating costs (inc Hampden / Nomina
fees)
|
(4,031)
|
(2,988)
|
|
Reinsurance costs
|
(5,800)
|
(3,408)
|
|
Tax
|
-
|
(236)
|
|
Return of capital to shareholders
|
(1,010)
|
-
|
Transfers to Funds at Lloyd's
|
|
|
|
Free cash Flow
|
(5,396)
|
(6,725)
|
|
Senior debt principal
|
-
|
-
|
|
Repayment of Borrowings
|
-
|
-
|
|
Proceeds from issue of shares
|
-
|
-
|
|
Acquisitions
|
-
|
(1,569)
|
Net cash flow in the year
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets
|
140,553
|
140,101
|
|
Add Total Debt
|
59,524
|
59,055
|
Add Deferred Tax on Intangible Asset
|
|
|
|
|
|
|
|
|
|
|
Net asset per
share
|
|
|
|
|
Net assets
|
58,117
|
57,665
|
Fair value of capacity ("WAV")
|
|
|
|
|
|
|
|
Shares in issue - on the market
|
73,690
|
74,186
|
|
Shares in issue - total of on the market and
JSOP shares
|
76,228
|
75,286
|
|
Net asset value per share £ - on the
market
|
1.91
|
1.89
|
Net asset value per share £ - on the market and
JSOP shares
|
|
|
Interim condensed consolidated statement of
comprehensive income
Six months ended 30 June 2024
|
|
|
6 months
ended
30
June 2024
Unaudited
|
6 months
ended
30
June 2023
Unaudited
|
|
|
|
|
|
|
Gross premium written
|
4
|
230,495
|
158,509
|
Reinsurance premium ceded
|
|
|
|
|
|
|
|
|
|
Change in unearned gross premium
provision
|
5
|
(67,401)
|
(34,899)
|
Change in unearned reinsurance premium
provision
|
|
|
|
Net change in unearned premium and reinsurance
provision
|
|
|
|
|
Net earned premium
|
3,4
|
122,966
|
89,805
|
|
Net investment income
|
6
|
8,136
|
3,121
|
|
Other underwriting income
|
|
1,538
|
720
|
|
|
|
|
|
|
Gross claims paid
|
|
(52,781)
|
(42,895)
|
Reinsurers' share of gross claims
paid
|
|
|
|
Claims paid, net of reinsurance
|
|
|
|
|
Change in provision for gross claims
|
5
|
(34,889)
|
(15,696)
|
Reinsurers' share of change in provision for
gross claims
|
|
|
|
Net change in provision for claims
|
|
|
|
Net insurance claims incurred and
loss adjustment expenses
|
|
|
|
|
Expenses incurred in insurance
activities
|
|
(51,655)
|
(34,969)
|
|
|
|
|
|
|
|
|
|
|
|
Non-technical
account
|
|
|
|
|
Net investment income
|
6
|
434
|
20
|
|
Other income
|
|
359
|
-
|
|
Other operating expenses
|
|
(7,209)
|
(2,556)
|
Total
non-technical account
|
|
|
|
|
|
|
|
|
|
Operating profit before impairments
of goodwill and capacity
|
|
6,450
|
6,034
|
|
Amortisation of goodwill
|
|
169
|
302
|
|
Profit before tax
|
|
6,619
|
6,336
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income
|
|
|
|
|
Revaluation of syndicate capacity
|
|
-
|
-
|
Deferred tax relating to the components of
other comprehensive income
|
|
|
|
Other comprehensive income for the period, net of tax
|
|
|
|
Total comprehensive income for the
period
|
|
|
|
Profit for the year attributable to
owners of the Parent
|
|
|
|
Total comprehensive income for the
period attributable to owners of the Parent
|
|
|
|
|
Profit per share attributable to
owners of the Parent
|
|
|
|
|
Basic
|
8
|
7.71p
|
5.71p
|
|
|
|
|
|
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
2024
|
|
|
At 30
June
2024
Unaudited
£'000
|
31
December
2023
Audited
£'000
|
|
Assets
|
|
|
|
|
Intangible assets:
|
|
|
|
|
- Capacity
|
|
82,436
|
82,436
|
|
- Goodwill
|
|
246
|
348
|
|
- Negative goodwill
|
|
(395)
|
(667)
|
|
Financial assets at fair value through profit
or loss
|
|
357,460
|
288,198
|
|
Reinsurance assets:
|
|
|
|
|
- reinsurers' share of claims
outstanding
|
5
|
110,669
|
83,008
|
|
- reinsurers' share of unearned
premium
|
5
|
47,670
|
23,962
|
|
Other receivables, including insurance and
reinsurance receivables
|
|
291,321
|
172,932
|
|
Cash and cash equivalents
|
|
81,470
|
66,812
|
|
Prepayments and accrued income
|
|
11,376
|
7,281
|
|
Deferred acquisition costs
|
|
39,384
|
32,291
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Equity
|
|
|
|
|
Equity attributable to owners of the
Parent:
|
|
|
|
|
Share capital
|
11
|
7,795
|
7,795
|
|
Share premium
|
11
|
98,596
|
98,596
|
|
Revaluation reserve
|
11
|
24,840
|
24,840
|
|
Other reserves - treasury shares (JSOP and
LTIP)
|
11
|
190
|
190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance liabilities:
|
|
|
|
|
- claims outstanding
|
5
|
401,593
|
309,188
|
|
- unearned premium
|
5
|
200,165
|
143,610
|
|
Deferred income tax liabilities
|
|
22,889
|
22,335
|
|
Borrowings
|
|
59,524
|
59,055
|
|
Other payables, including insurance and
reinsurance payables
|
|
178,656
|
70,594
|
Accruals and deferred income
|
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
|
|
|
The Financial Statements were approved and
authorised for issue by the Board of Directors on 26 September
2024, and were signed on its behalf by:
Arthur Manners
Finance Director
The notes are an integral part of these
Financial Statements.
Interim condensed consolidated statement of
changes in equity
Six months ended 30 June 2024
|
|
|
|
|
Attributable to
owners of the Parent
|
|
Consolidated
|
Note
|
Share
capital
£'000
|
Share
premium
£'000
|
Revaluation
reserve
|
Other
reserves
£'000
|
Retained
earnings
£'000
|
Total
£'000
|
|
At 1 January 2024
|
|
7,795
|
98,596
|
24,840
|
190
|
8,680
|
140,101
|
|
Total comprehensive income for the period:
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
-
|
-
|
-
|
-
|
5,681
|
5,681
|
|
Other comprehensive income, net of
tax
|
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Total comprehensive income for the
period
|
|
-
|
-
|
-
|
-
|
5,681
|
5,681
|
|
Transactions with owners:
|
|
|
|
|
|
|
|
|
Dividends paid
|
9
|
-
|
-
|
-
|
-
|
(4,418)
|
(4,418)
|
|
Company buy back of shares
|
11
|
-
|
-
|
-
|
-
|
(811)
|
(811)
|
|
Share issue
|
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Total transactions with
owners
|
|
-
|
-
|
-
|
-
|
(5,229)
|
(5,229)
|
|
At 30 June 2024
|
|
7,795
|
98,596
|
24,840
|
190
|
9,132
|
140,553
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2023
|
|
7,774
|
98,268
|
11,350
|
(110)
|
(2,163)
|
115,119
|
|
Total comprehensive income for the period:
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
-
|
-
|
-
|
-
|
4,351
|
4,351
|
|
Other comprehensive income, net of
tax
|
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Total comprehensive income for the
period
|
|
-
|
-
|
-
|
-
|
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
|
|
|
|
|
|
|
|
|
| |
The notes are an integral part of these
Financial Statements.
Interim condensed consolidated statement of
cash flows
Six months ended 30 June 2024
|
|
|
At
30 June
2024
Unaudited
£'000
|
At 30 June
2023
restated
Unaudited
£'000
|
|
Cash flows from operating
activities
|
|
|
|
|
Profit before tax
|
|
6,619
|
6,336
|
|
Adjustments for:
|
|
|
|
|
- Interest received
|
|
(518)
|
(227)
|
|
- Investment income
|
|
(6,507)
|
(3,502)
|
|
- Interest paid on borrowings
|
|
2,822
|
-
|
|
- Amortisation of goodwill
|
|
(169)
|
(302)
|
|
Changes in working capital:
|
|
|
|
|
- change in fair value of financial
assets held at fair value through profit or loss
|
|
80
|
512
|
|
- Increase in other receivables
|
|
(129,577)
|
(18,147)
|
|
- Increase in other payables
|
|
110,183
|
18,926
|
|
- net increase in technical
provisions
|
|
97,591
|
27,941
|
|
Cash generated from operations
|
|
80,524
|
31,537
|
|
Income tax paid/(received)
|
|
4
|
(237)
|
|
Net cash inflow from operating
activities
|
|
80,528
|
31,300
|
|
Cash flows from investing
activities
|
|
|
|
|
Interest received
|
|
518
|
227
|
|
Investment income
|
|
6,507
|
3,502
|
|
Increase in financial assets at fair value
through profit or loss
|
|
(69,262)
|
(30,214)
|
|
Acquisition of subsidiaries, net of cash
acquired
|
|
-
|
(1,239)
|
|
Net cash inflow from investing
activities
|
|
(62,237)
|
(27,724)
|
|
Cash flows from financing
activities
|
|
|
|
|
Net proceeds from issue of ordinary
share capital
|
|
-
|
-
|
|
Buy back of ordinary share
capital
|
|
(811)
|
-
|
|
Proceeds from borrowings
|
|
-
|
-
|
|
Repayment of borrowings
|
|
-
|
-
|
|
Interest paid on borrowings
|
|
(2,822)
|
-
|
|
Dividends paid to owners of the
Parent
|
|
-
|
-
|
|
Net cash outflow from financing
activities
|
|
(3,633)
|
-
|
|
Net increase in cash and cash
equivalents
|
|
14,658
|
3,576
|
|
Cash and cash equivalents at beginning of
period
|
|
66,812
|
24,624
|
|
Cash and cash equivalents at end of
period
|
|
81,470
|
28,200
|
The 30 June 2023 comparative has been restated
to present the changes in financial assets at fair value through
the profit and loss as cashflows from investing
activities.
Analysis of
changes in net debt
|
|
At 1 January
2024
|
Cash
flows
|
Currency
translation
|
At 30
June
2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
66,812
|
14,661
|
(3)
|
81,470
|
|
Revolving Loan Facility
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash held within the syndicates' accounts is
£45,953,000 (30 June 2023: £26,240,000) of the total cash and cash
equivalents held at the end of the period
£81,470,000 (30 June 2023: £28,200,000). 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 2024
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 1st Floor, 33
Cornhill, London EC3V 3ND. 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 2023 were approved by the board of directors
on 29 May 2024 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 Condensed Consolidated Interim
Financial Statements are prepared for the six months ended 30 June
2024.
The Condensed Consolidated Interim
Financial Statements for the six months ended 30 June 2024 and June
2023 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 £140,553,000 (31 December 2023:
£140,101,000).
The Company's subsidiaries participate as
underwriting members at Lloyd's on the 2022, 2023 and 2024 years of
account, as well as any prior run-off years, and they intend to
continue this participation in the 2025 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.
With effect from 31 December 2020, the Group
changed this policy so that syndicate capacity is revalued on a
regular basis to its fair value which the Directors believe to be
the average weighted value achieved in the Lloyd's auction process.
The increase in value of syndicate capacity between its fair value
and its cost less impairment is taken to the revaluation reserve
through the statement of other comprehensive income net of any tax
effect.
Notes to the financial statements
Six months ended 30 June 2024
3. Segmental information
Michael Wade is the Group's chief operating
decision-maker. He determines 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.
|
At 30 June 2024 Unaudited
|
Syndicate
participation
£'000
|
Investment
management
£'000
|
Other
corporate
activities
£'000
|
Total
£'000
|
|
Net earned premium
|
127,052
|
-
|
(4,086)
|
122,966
|
|
Net investment income
|
5,822
|
2,748
|
-
|
8,570
|
|
Other income
|
-
|
-
|
1,897
|
1,897
|
|
Net insurance claims and loss adjustment
expenses
|
(68,119)
|
-
|
-
|
(68,119)
|
|
Expenses incurred in insurance
activities
|
(50,514)
|
-
|
(1,141)
|
(51,655)
|
|
Other operating expenses
|
-
|
-
|
(7,209)
|
(7,209)
|
|
Amortisation of goodwill
|
-
|
-
|
169
|
169
|
|
Profit before tax
|
14,241
|
2,748
|
(10,370)
|
6,619
|
|
At 30 June 2023 Unaudited
|
Syndicate
participation
£'000
|
Investment
management
£'000
|
Other
corporate
activities
£'000
|
Total
£'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
|
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 2024 other corporate
activities totalling £4,086,000 (2023: £4,378,000 - 2021, 2022 and
2023 years of account) represents the 2022, 2023 and 2024 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 2024
4. Operating
profit before impairments of goodwill and
capacity
|
|
Underwriting year of account*
|
|
|
|
|
|
At 30 June 2023
|
2021 and
prior
£'000-
|
2022
£'000
|
-
2023
£'000
|
Sub-total
£'000
|
Pre-
acquisition
£'000
|
Corporate
reinsurance
£'000
|
Other
corporate
£'000
|
Total
£'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
|
|
|
Underwriting year of account*
|
|
|
|
|
|
At 30 June 2024
|
2022 and
prior
£'000
|
2023
£'000
|
2024
£'000
|
Sub-total
£'000
|
Pre-
acquisition
£'000
|
Corporate
reinsurance
£'000
|
Other
corporate
£'000
|
Total
£'000
|
|
Gross premium written
|
1,614
|
37,680
|
191,201
|
230,495
|
-
|
-
|
-
|
230,495
|
|
Reinsurance ceded
|
(318)
|
(4,871)
|
(53,562)
|
(58,751)
|
-
|
(4,086)
|
(2,913)
|
(65,750)
|
|
Net premium written
|
1,296
|
32,809
|
137,639
|
171,744
|
-
|
(4,086)
|
(2,913)
|
164,745
|
|
Net earned premium
|
9,627
|
83,526
|
36,812
|
129,965
|
-
|
(4,086)
|
(2,913)
|
122,966
|
|
Other income
|
3,344
|
1,809
|
670
|
5,823
|
-
|
1,151
|
3,493
|
10,467
|
|
Net insurance claims and loss adjustment
expenses
|
(3,827)
|
(39,201)
|
(25,091)
|
(68,119)
|
-
|
-
|
-
|
(68,119)
|
|
Operating expenses
|
(4,277)
|
(25,756)
|
(20,932)
|
(50,965)
|
-
|
-
|
(7,899)
|
(58,864)
|
|
Operating
profit before impairments of goodwill and
capacity
|
4,867
|
20,378
|
(8,541)
|
16,704
|
-
|
(2,935)
|
(7,319)
|
6,450
|
|
Quota share adjustment
|
(1,192)
|
(4,330)
|
1,436
|
(4,086)
|
-
|
4,086
|
-
|
-
|
|
Operating
profit before impairments of goodwill and capacity after quota share adjustment
|
3,675
|
16,048
|
(7,105)
|
12,618
|
-
|
1,151
|
(7,319)
|
6,450
|
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 2024
5. Insurance liabilities and reinsurance
balances
Movement in claims outstanding
|
|
Gross
£'000
|
Reinsurance
£'000
|
Net
£'000
|
|
At 1 January 2024
|
309,188
|
83,008
|
226,180
|
|
Increase in reserves arising from acquisition of
subsidiary undertakings
|
-
|
-
|
-
|
|
Movement of reserves
|
34,889
|
6,855
|
28,034
|
|
Other movements
|
57,516
|
20,806
|
36,710
|
|
At 30 June 2024
|
401,593
|
110,669
|
290,924
|
Movement in unearned premium
|
|
Gross
£'000
|
Reinsurance
£'000
|
Net
£'000
|
|
At 1 January 2024
|
143,610
|
23,962
|
119,648
|
|
Increase in reserves arising from acquisition
of subsidiary undertakings
|
-
|
-
|
-
|
|
Movement of reserves
|
67,401
|
25,622
|
41,779
|
|
Other movements
|
(10,846)
|
(1,914)
|
(8,932)
|
|
At 30 June 2024
|
200,165
|
47,670
|
152,495
|
Included within other movements are the 2021 and
prior years' claims reserves reinsured into the 2022 year of
account on which the Group does not participate and currency
exchange differences.
Movement in claims outstanding
|
|
Gross
£'000
|
Reinsurance
£'000
|
Net
£'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
£'000
|
Reinsurance
£'000
|
Net
£'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.
6. Net investment income
|
|
At 30
June 2024 Unaudited
£'000
|
At 30
June 2023 Unaudited
£'000
|
|
Investment income
|
6,507
|
3,502
|
|
Realised (losses)/gains on financial assets at
fair value through profit or loss
|
1,087
|
(100)
|
|
Unrealised (losses)/gains on financial assets at
fair value through profit or loss
|
(80)
|
(512)
|
|
Investment management expenses
|
538
|
24
|
|
Bank interest
|
518
|
227
|
|
Net investment income
|
8,570
|
3,141
|
Included within Net investment income
is investment income of £8,136,000 (2023: £3,121,000) from
Syndicate participations.
Notes to the financial statements continued
Six months ended 30 June 2024
7. Income tax charge
Analysis of tax charge in the period
|
|
At 30
June 2024 Unaudited
£'000
|
At 30
June 2023 Unaudited
£'000
|
|
Income tax credit
|
938
|
1,985
|
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 25% (2023:
23.50%).
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:
|
|
30 June
2024 Unaudited
|
At 30 June 2023
Unaudited
|
|
Profit for the period after tax attributable to
ordinary equity holders of the parent
|
5,681,000
|
4,351,000
|
|
Basic - weighted average number of ordinary
shares*
|
73,727,064
|
76,218,203
|
|
Weighted average number of ordinary shares for
diluted earnings per share*
|
76,285,215
|
77,889,630
|
|
Basic earnings/(loss) per share
|
7.71p
|
5,71p
|
|
Diluted earnings/(loss) per share
|
7.40p
|
5.55p
|
* 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
2024 that a dividend of 6p would be payable. The Dividend was
paid post period end on 12 July 2024 totalling £4,418,000 and has
been accrued in these financial statements.
10. Investments in subsidiaries
|
|
A 30
June
2024
£'000
|
At 31
December
2023
£'000
|
|
Total
|
66,722
|
66,722
|
Notes to the financial statements continued
Six months ended 30 June 2024
10. Investments in subsidiaries
(continued)
|
|
|
|
|
|
|
Nameco (No. 917) Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Nameco (No. 346) Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Charmac Underwriting
Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
RBC CEES Trustee Limited(ii)
|
Direct
|
100%
|
100%
|
Joint
Share Ownership Plan
|
|
Chapman Underwriting
Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Advantage DCP Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Romsey Underwriting
Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Helios UTG Partner
Limited(i)
|
Direct
|
100%
|
100%
|
Corporate
partner
|
|
Salviscount LLP
|
Indirect
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Inversanda LLP
|
Indirect
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Fyshe Underwriting LLP
|
Indirect
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Nomina No 505 LLP
|
Indirect
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Nomina No 321 LLP
|
Indirect
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Nameco (No. 409) Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Nameco (No. 1113) Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Catbang 926 Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Whittle Martin
Underwriting
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Nameco (No. 408) Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Nomina No 084 LLP
|
Indirect
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Nameco (No. 510) Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Nameco (No. 544) Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
N J Hanbury Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Nameco (No. 1011) Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Nameco (No. 1111) Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Nomina No 533 LLP
|
Indirect
|
100%
|
100%
|
Corporate
partner
|
|
North Breache Underwriting
Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
G T C Underwriting
Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Hillnameco Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Nameco (No. 2012) Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Nameco (No. 1095) Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
New Filcom Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Kemah Lime Street Capital
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Nameco (No. 1130) Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Nomina No 070 LLP
|
Indirect
|
100%
|
100%
|
Corporate
partner
|
|
Nameco (No. 389) Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Nomina No. 469 LLP
|
Indirect
|
100%
|
100%
|
Corporate
partner
|
|
Nomina No. 536 LLP
|
Indirect
|
100%
|
100%
|
Corporate
partner
|
|
Nameco (No. 301) Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Nameco (No. 1232) Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Shaw Lodge Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Queensberry Underwriting
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Nomina No 472 LLP
|
Indirect
|
100%
|
100%
|
Corporate
partner
|
|
Nomina No 110 LLP
|
Indirect
|
100%
|
100%
|
Corporate
partner
|
|
Chanterelle Underwriting
Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Kunduz LLP
|
Indirect
|
100%
|
100%
|
Corporate
partner
|
|
Exalt Underwriting
Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Nameco (No. 1110) Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Clifton 2011 Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Nomina No 378 LLP
|
Indirect
|
100%
|
100%
|
Corporate
partner
|
|
Gould Scottish Limited
Partnership
|
Indirect
|
100%
|
100%
|
Corporate
partner
|
|
Harris Family UTG Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Whitehouse Underwriting
Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Risk Capital UTG Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Nameco (No. 606) Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Nameco (No. 1208) Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Chorlton Underwriting
Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Park Farm Underwriting
Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Helios LLV One Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Helios LLV Two Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Helios LLV Five Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Helios LLV Six Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Helios LLV Seven Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
Helios LLV Eight Limited
|
Direct
|
100%
|
100%
|
Lloyd's
of London corporate vehicle
|
|
|
|
|
|
|
Notes to the financial statements continued
Six months ended 30 June 2024
10. Investments in subsidiaries
(continued)
(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 Plan.
(iii) During the period, the Company sold
100% of the shares in Helios LLV Three Limited, Helios LLV Four
Limited and Helios LLV Nine Limited.
11. Share capital and share premium
|
|
Number of
shares (i)
|
Ordinary share
capital
£'000
|
Partly
paid ordinary
share capital
£'000
|
Share
premium
£'000
|
Total
£'000
|
|
Ordinary shares of 10p each and
share premium at 31 December 2023
|
77,945,833
|
7,685
|
110
|
98,596
|
106,391
|
|
Ordinary shares of 10p each and
share premium at 30 June 2024
|
77,945,833
|
7,685
|
110
|
98,596
|
106,391
|
(i) Number of shares
|
|
At 30 June 2024
|
At 31 December 2023
|
|
Allotted, called up and fully paid ordinary
shares:
|
|
|
|
On the market
|
73,645,144
|
74,186,068
|
|
Company buy back of ordinary shares held in
treasury
|
3,200,689
|
2,659,765
|
|
|
76,845,833
|
76,845,833
|
|
Uncalled and partly paid ordinary share under the
JSOP scheme (ii)
|
1,100,000
|
1,100,000
|
|
|
77,945,833
|
77,945,833
|
(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 2022, 2023 and 2024
years of account with protected cell companies of HIPCC
Limited.
Nigel Hanbury, a Director of Helios
Underwriting plc and its subsidiary companies, was also a director
and majority shareholder in HIPCC Limited until 29 November 2023
when he sold his majority shareholding in full, and resigned as a
director on the same date.
In addition, HIPCC provide stop loss, portfolio
stop loss and HASP reinforce policies for the company.
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 2024
14. 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
|
|
|
|
Managing or members'
agent
|
|
|
|
|
|
33
|
Hiscox Syndicates
Limited
|
15,358
|
15,358
|
15,357
|
|
|
218
|
IQUW Syndicate
Management Limited
|
17,711
|
17,711
|
7,519
|
|
|
318
|
Cincinnati Global
Underwriting Agency Limited
|
1,082
|
862
|
993
|
|
|
386
|
QBE Underwriting
Limited
|
3,139
|
3,139
|
3,067
|
|
|
510
|
Tokio Marine Kiln
Syndicates Limited
|
30,294
|
28,183
|
34,097
|
|
|
557
|
Tokio Marine Kiln
Syndicates Limited
|
-
|
-
|
3,509
|
|
|
609
|
Atrium Underwriters
Limited
|
19,528
|
18,421
|
13,714
|
|
|
623
|
Beazley Furlonge
Limited
|
32,687
|
28,909
|
23,293
|
|
|
727
|
S A Meacock &
Company Limited
|
2,956
|
2,956
|
2,423
|
|
|
1176
|
Chaucer Syndicates
Limited
|
2,875
|
2,875
|
2,875
|
|
|
1200
|
Argo Managing Agency
Limited
|
-
|
55
|
10,050
|
|
|
1699
|
Asta Managing Agency
Limited
|
5,000
|
-
|
-
|
|
|
1729
|
Dale Managing Agency
Limited
|
25,118
|
20,094
|
10,220
|
|
|
1796
|
Asta Managing Agency
Limited
|
7,000
|
-
|
-
|
|
|
1902
|
Asta Managing Agency
Limited
|
12,636
|
10,688
|
10,000
|
|
|
1925
|
Apollo Syndicate
Management Limited
|
12,500
|
-
|
-
|
|
|
1955
|
Arch Managing Agency
Limited
|
20,000
|
12,500
|
-
|
|
|
1966
|
Asta Managing Agency
Limited
|
15,000
|
-
|
-
|
|
|
1969
|
Apollo Syndicate
Management Limited
|
25,499
|
12,171
|
5,675
|
|
|
1971
|
Apollo Syndicate
Management Limited
|
25,000
|
10,000
|
6,467
|
|
|
1985
|
Asta Managing Agency
Limited
|
20,000
|
16,874
|
-
|
|
|
1988
|
Asta Managing Agency
Limited
|
15,125
|
15,000
|
-
|
|
|
1996
|
Polo Managing Agency
Limited
|
9,527
|
5,988
|
-
|
|
|
2010
|
Lancashire
Syndicates Limited
|
7,338
|
7,338
|
10,642
|
|
|
2024
|
Probitas Managing
Agency Limited
|
8,522
|
-
|
-
|
|
|
2121
|
Argenta Syndicate
Management Limited
|
5,206
|
272
|
10,267
|
|
|
2358
|
Nephila Syndicate
Managing Agency Limited
|
20,000
|
-
|
-
|
|
|
2427
|
Asta Managing Agency
Limited
|
15,024
|
-
|
-
|
|
|
2454
|
Apollo Syndicate
Management Limited
|
5,800
|
-
|
-
|
|
|
2525
|
Asta Managing Agency
Limited
|
2,612
|
2,311
|
1,856
|
|
|
2689
|
Asta Managing Agency
Limited
|
5,477
|
2,699
|
10,111
|
|
|
2791
|
Managing Agency
Partners Limited
|
16,422
|
12,001
|
10,123
|
|
|
3123
|
Asta Managing Agency
Limited
|
5,000
|
-
|
-
|
|
|
3939
|
Apollo Syndicate
Management Limited
|
12,000
|
-
|
-
|
|
|
4242
|
Asta Managing Agency
Limited
|
15,000
|
10,807
|
12,987
|
|
|
4444
|
Canopius Managing
Agents Limited
|
24
|
21
|
20
|
|
|
5183
|
Asta Managing Agency
Limited
|
1,727
|
5,000
|
-
|
|
|
5623
|
Beazley Furlonge
Limited
|
27,001
|
17,672
|
6,894
|
|
|
5886
|
Blenheim
Underwriting Limited
|
30,833
|
27,131
|
23,165
|
|
|
6103
|
Managing Agency
Partners Limited
|
4,150
|
3,301
|
3,480
|
|
|
6104
|
Hiscox Syndicates
Limited
|
10,000
|
32
|
1,774
|
|
|
6107
|
Beazley Furlonge
Limited
|
1,550
|
164
|
1,682
|
|
|
|
Ariel Re Managing
Agency Limited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Notes to the financial statements
continued
Six months ended 30 June 2024
15.
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Intangible assets:
|
|
|
|
|
|
|
|
|
- Capacity
|
82,436
|
-
|
82,436
|
|
82,436
|
-
|
82,436
|
|
- Positive goodwill
|
246
|
-
|
246
|
|
348
|
-
|
348
|
|
- Negative goodwill
|
(395)
|
-
|
(395)
|
|
(667)
|
-
|
(667)
|
|
Financial assets at fair value through profit
or loss
|
75,511
|
281,949
|
357,460
|
|
70,754
|
217,444
|
288,198
|
|
Deferred income tax asset
|
-
|
-
|
-
|
|
-
|
-
|
-
|
|
Reinsurance assets:
|
|
|
|
|
|
|
|
|
- reinsurers' share of claims
outstanding
|
60
|
110,609
|
110,669
|
|
60
|
82,948
|
83,008
|
|
- reinsurers' share of unearned
premium
|
-
|
47,670
|
47,670
|
|
-
|
23,962
|
23,962
|
|
Other receivables, including insurance and
reinsurance receivables
|
4,486
|
286,835
|
291,321
|
|
357
|
172,575
|
172,932
|
|
Cash and cash equivalents
|
35,517
|
45,953
|
81,470
|
|
40,913
|
25,899
|
66,812
|
|
Prepayments and accrued income
|
6,164
|
5,212
|
11,376
|
|
4,459
|
2,822
|
7,281
|
Deferred acquisition costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Equity attributable to owners of the
Parent:
|
|
|
|
|
|
|
|
|
Share capital
|
7,795
|
-
|
7,795
|
|
7,795
|
-
|
7,795
|
|
Share premium
|
98,596
|
-
|
98,596
|
|
98,596
|
-
|
98,596
|
|
Revaluation reserve
|
24,840
|
-
|
24,840
|
|
24,840
|
-
|
24,840
|
|
Other reserves - treasury shares (JSOP and
LTIP)
|
190
|
-
|
190
|
|
190
|
-
|
190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance liabilities:
|
|
|
|
|
|
|
|
|
- claims outstanding
|
-
|
401,593
|
401,593
|
|
-
|
309,188
|
309,188
|
|
- unearned premium
|
-
|
200,165
|
200,165
|
|
-
|
143,610
|
143,610
|
|
Deferred income tax liabilities
|
22,889
|
-
|
22,889
|
|
22,277
|
58
|
22,335
|
|
Borrowings
|
59,524
|
-
|
59,524
|
|
59,055
|
-
|
59,055
|
|
Other payables, including insurance and
reinsurance payables
|
11,615
|
167,041
|
178,656
|
|
6,984
|
63,610
|
70,594
|
Accruals and deferred income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
|
|
|
|
|
|
|
16. Event after
the financial reporting period
Share buy backs
On 23 July 2024 the Company bought back a
further 2,466,666 shares for a total consideration of
£3,719,000.
Notes to the financial statements continued
Six months ended 30 June 2024
Directors, Registered office and
advisers
Directors
Michael John Wade (Executive
Chairman)
Nigel John Hanbury (Non-Executive Deputy
Chairman)
Andrew Hildred Christie (Non-Executive Director)
Arthur Roger Manners (Finance Director)
Thomas John Libassi (Non-Executive Director)
John Chambers (Non-Executive Director)
appointed 1 July 2024
Katherine Wade (Non-Executive Director)
appointed 30 August 2024
Company Secretary
Kristel van der Meijden
Shakespeare Martineau
No 1 Colmore Square
Birmingham
B4 6AA
Company number
05892671
Registered office
1st Floor, 33 Cornhill, London, EC3V
3ND
Statutory auditors
PKF Littlejohn LLP
15 Westferry Circus
Canary Wharf
London E14 4HD
Lloyd's members' agent
Hampden Agencies Limited
40 Gracechurch Street
London EC3V 0BT
Argenta Private Capital Limited
70 Gracechurch Street
London EC3V 0HR
Registrars
Neville Registrars Limited
Neville House
Steelpark Road
Halesowen B62 8HD
Nominated adviser and broker
Numis Sercurities Limited
45 Gresham Street
London EC2V 7BF
INDEPENDENT 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 2024
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 2024 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 23 September 2024. 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
26 September
2024
London E14 4HD