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Helios Underwriting - Lloyd’s upswing set to continue strongly

Global insurance rate increases of over 50% since 2017 and a more than 30% increase in Lloyd’s of London (Lloyd’s) premiums have set the stage for a sustained improvement in underwriting results. The negative impact of higher interest rates on fixed interest portfolios is likely to be temporary and should be followed by higher returns on insurance assets and regulatory capital. Lloyd’s Ukraine exposure appears largely limited to aviation, has not led to solvency concerns for the market and should, together with rising inflation, help to maintain pricing discipline in an already hard underwriting environment. After a transformative FY21, which almost trebled Helios Underwriting’s net exposure to Lloyd’s syndicates, Helios is poised to participate in the expected underwriting upswing of the Lloyd’s market. Further acquisitive growth should commence from FY23 as the company benefits from enhanced cash flows, although the opportunity for consolidating the sizeable Lloyd’s limited liability vehicle (LLV) market could be seized earlier if Helios opts to access capital markets.