Helios Underwriting

Overview
Price performance
Financials
Research
Thematics

Helios Underwriting was established in 2007 primarily to provide investors with a limited liability direct investment into the Lloyd’s insurance market. It is an AIM-quoted holding company, providing underwriting exposure across a diversified portfolio of selected Lloyd’s syndicates.

While Lloyd’s delivered record H1 results (for H124) of £4.9bn, premium growth has started to slow (4.4% vs 21.9% in H123). This may be signalling an imminent turn in the hard underwriting cycle we have seen in the past three years. Near-term combined ratios may recede from 17-year lows as premium increases moderate while natural catastrophe claims persist. Positive claims tailwinds and healthy investment returns could support a soft landing.

Latest Insights

Financials |
Update

03.10.24

Helios Underwriting — Strategic shift from growth to consolidation

Financials |
Update

05.07.24

Helios Underwriting — Delivery into a strong underwriting cycle

Financials |
Flash note

30.05.24

Helios Underwriting — Healthy FY23 beat supports strong outlook

Financials |
Update

04.04.24

Helios Underwriting — Strong share price on supportive fundamentals

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Sector

Financials

Equity Analyst

Marius Strydom

Analyst

Key Management

Arthur Manners

FD
Michael Wade

Chairman

Balance Sheet

Forecast net debt (£m)

5.8

Forecast gearing ratio (%)

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	0.3	5.3	19.8
Relative	3.5	8.7	10.6
52 week high/low	190.0p/135.5p

Financials

Helios Underwriting has been a successful aggregator of Lloyd’s of London (Lloyd’s) syndicate capacity into an improving underwriting environment over recent years. Following a management change, it has shifted its strategic focus away from capacity growth to cost and capital efficiencies, as well as shareholder distributions. This positions it well for margin expansion, even as combined ratios face downwards pressure as the underwriting cycle starts turning. Helios has effectively dealt with share overhangs via strategic share buybacks.