HUW Helios Underwriting

Hardman & Co Investor Forum research: Helios Underwriting (HUW): Timing its growth with the insurance cycle

Hardman & Co Research
Hardman & Co Investor Forum research: Helios Underwriting (HUW): Timing its growth with the insurance cycle

18-May-2021 / 14:30 GMT/BST


May 2021 Hardman & Co Investor Forum company research: 

Helios Underwriting (HUW)

On 12 May we were delighted to host our fourth virtual Investor Forum. At the live event, Helios took time to answer questions on their valuation methods, growth plans, outlook on premium rate cycles, and the current dynamic given the amount of capital flowing into the market - and how this affects their investment with the LLVs.

We would like to share with you the research note & slide pack, along with the recording of the presentation:

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The issuer is solely responsible for the content of this announcement.


End of Announcement - EQS News Service

1197967  18-May-2021 

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18/05/2021

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Reports on Helios Underwriting

Pedro Fonseca
  • Pedro Fonseca

Helios Underwriting - Strategic shift from growth to consolidation

Helios Underwriting (Helios) delivered EPS growth of 35% to 7.7p in H124 and reported a net asset value (NAV) of 191p/share. While its combined ratio of 91.6% deteriorated from 88% in H123 and 85% in FY23 due to seasonal impacts on the 2024 year of account (YOA) and stricter reserving for its 2022 YOA, we forecast an improvement to 88.8% for FY24. Helios experienced cost pressures during the period as a result of abandoning its ‘follow-only’ syndicate initiative and the departure of its CEO. We ...

Pedro Fonseca
  • Pedro Fonseca

Helios Underwriting - Delivery into a strong underwriting cycle

Helios Underwriting (Helios) delivered strong EPS of 21.6p in FY23, from a loss of 3.1p in FY22, ahead of our 14.7p forecast. On 7 June, the company announced that CEO Martin Reith had stepped down, with Michael Wade taking over as executive chair. Mr Reith had driven a strategy of investment in internal capabilities and Lloyd’s of London (Lloyd’s) capacity expansion via tenancy capacity and promotor activities. While Helios will still pursue select capacity acquisition, indications are that fut...

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Pedro Fonseca
  • Pedro Fonseca

Helios Underwriting - Healthy FY23 beat supports strong outlook

Helios Underwriting (Helios) delivered a strong EPS recovery in FY23 from a loss of 3.1p in FY22 to a profit of 21.6p, 50% ahead of our forecast of 14.7p, driven by super syndicate underwriting profit of £31.6m versus £0.1m in FY22 and a combined ratio of 86%. Lloyd’s of London (Lloyd’s) capacity at year-end was accelerated to £507m relative to our expectation of £502m, with retained capacity of £392m also ahead. Net asset value (NAV) increased from 151p/share to 189p/share, slightly ahead of ou...

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