Company Announcements

Half Year Results

Source: RNS
RNS Number : 9025F
Helios Underwriting Plc
27 September 2024
 

 

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

Underwriting year

Helios retained

 capacity at

 30 June 2024

£m

Portfolio

mid-point

forecasts

Helios

profits

£'000

2022

184.5

8.99%

3,675

2023

244.5

13.0%

16,048

2024

396.9

N/A

(7,105)

 

 

 

12,618

 

Period to 30 June 2023

Underwriting year

Helios retained

 capacity at

 30 June 2023

£m

Portfolio

mid-point

forecasts

Helios

profits

£'000

2021

102.3

4.90%

2,346

2022

180.9

5.68%

10,701

2023

234.2

N/A

(2,606)

 

 

 

10,441

 

 

 

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

(35,018)

(6,067)

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

(5,396)

(8,294)

Balance carried forward

35,517

1,960

 

Asset value calculation

                                                30 June 2024

£'000

31 December 2023

£'000

Net Assets

140,553

140,101

Add Total Debt

59,524

59,055

Add Deferred Tax on Intangible Asset

20,136

20,136

Asset Value

220,213

219,293

Debt ratio

27%

27%

 

Net asset per share

Net assets

                                                30 June 2024

£'000

31 December 2023

£'000

Net assets

58,117

57,665

Fair value of capacity ("WAV")

82,436

82,436

 

140,553

140,100

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

1.84

1.86

 

Interim condensed consolidated statement of comprehensive income

Six months ended 30 June 2024

 

 

Note

6 months ended

 30 June 2024

Unaudited

£'000

6 months ended

 30 June 2023

Unaudited

£'000

Technical account

 

 

 

Gross premium written

4

230,495

158,509

Reinsurance premium ceded

4

(65,750)

(49,587)

Net premium written

4

164,745

108,922

Change in unearned gross premium provision

5

(67,401)

(34,899)

Change in unearned reinsurance premium provision

5

25,622

15,782

Net change in unearned premium and reinsurance provision

5

(41,779)

(19,117)

Net earned premium

3,4

122,966

89,805

Net investment income

6

8,136

3,121

Other underwriting income


1,538

720

Total technical income

 

132,640

93,646

Gross claims paid


(52,781)

(42,895)

Reinsurers' share of gross claims paid

 

12,696

10,437

Claims paid, net of reinsurance

 

(40,085)

(32,458)

Change in provision for gross claims

5

(34,889)

(15,696)

Reinsurers' share of change in provision for gross claims

5

6,855

(1,953)

Net change in provision for claims

5

(28,034)

(17,649)

Net insurance claims incurred and loss adjustment expenses

 

(68,119)

(50,107)

Expenses incurred in insurance activities


(51,655)

(34,969)

Total technical account

 

12,866

8,570



 


Non-technical account




Net investment income

6

434

20

Other income


359

-

Other operating expenses


(7,209)

(2,556)

Total non-technical account

 

(6,416)

(2,536)

 

 

 

 

Operating profit before impairments of goodwill and capacity


6,450

6,034

Amortisation of goodwill


169

302

Profit before tax


6,619

6,336

Income tax charge

7

(938)

(1,985)

Profit for the period

 

5,681

4,351

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

 

5,681

4,351

Profit for the year attributable to owners of the Parent

 

5,681

4,351

Total comprehensive income for the period attributable to owners of the Parent

 

5,681

4,351

Profit per share attributable to owners of the Parent


 


Basic

8

7.71p

5.71p

Diluted

8

7.40p

5.55p

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

 

 

 Note

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

Total assets

 

1,021,637

756,601

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

Retained earnings

 

9,132

8,680

Total equity

 

140,553

140,101





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

 

18,257

11,718

Total liabilities

 

881,084

616,500

Total liabilities and equity

 

1,021,637

756,601

 

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




 

6,619

6,336

 



 

(518)

(227)


(6,507)

(3,502)


2,822

-


(169)

(302)





80

512

 

(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




 

518

227

 

6,507

3,502

 

(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


-

-


(811)

-


-

-


-

-


(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

 

£000

£000

£000

£000

Cash at bank and in hand

66,812

14,661

(3)

81,470

Cash and cash equivalents

66,812

14,661

(3)

81,470

Revolving Loan Facility

-

-

-

-

Unsecured debt

(59,055)

-

(469)

(59,524)

Total

7,757

14,661

(472)

21,946

 

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)

Company or partnership

Direct/indirect

interest

2024

ownership

2023

ownership

Principal activity

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

Helios LLV Ten LLP

Indirect

100%

100%

Corporate partner

 

 

 

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

 

Syndicate number

Managing or members' agent

2024

£000

2023

£000

2022*

£000

 

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


6117

Ariel Re Managing Agency Limited

391

265

2,989

 

Total

 

512,112

310,798

245,249

 

 



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:


At 30 June 2024


At 31 December 2023

 

Group

£'000

Syndicate

£'000

Total

£'000

 

Group

£'000

Syndicate

£'000

Total

£'000

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

-

39,384

39,384

 

-

32,291

32,291

Total assets

204,025

817,612

1,021,637

 

198,660

557,941

756,601

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

Retained earnings

(32,503)

41,635

9,132

 

(26,174)

34,854

8,680

Total equity

98,918

41,635

140,553

 

105,247

34,854

140,101

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

11,079

7,178

18,257

 

5,097

6,621

11,718

Total liabilities

105,107

775,977

881,084

 

93,413

523,087

616,500

Total liabilities and equity

204,025

817,612

1,021,637

 

198,660

557,941

756,601

 

 

 

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      

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