Helios announces syndicate capacity forecasts for 2021, 2022 based on Q2’23 estimates

Lloyd’s focused investment vehicle, Helios Underwriting, has announced the current mid-point forecasts for its portfolio of syndicate capacity for the 2021 and 2022 years of account, based on 2nd quarter 2023 estimates.

The company, which acquires and consolidates private underwriting capacity at Lloyd’s, recorded a capacity position of £310.8 million for the 2023 year of account as at August 30, 2023.

This figure consisted of £244.5 million capacity retained by Helios and £66.3 million that is ceded to quota share reinsurers.

For the 2022 year of account, Helios reported a £245.2 million capacity position, consisting of £184.4 million retained and £60.8 million reinsured.

For the 2021 year of account, Helios reported a £157.2 million capacity position, consisting of £105.7 million retained and £51.5 million reinsured.

The midpoint estimate for 2021 has shown further improvement, reaching 4.9% compared to the 3.9% reported in Q1 2023, aligning with initial projections.

“Helios’ proposition as the investment vehicle which builds shareholder value through exposure to Lloyd’s continues to go from strength to strength. We have built and curated an outstanding portfolio of the better performing syndicates, based on stringent underwriting discipline and judicious capital deployment. During the period, we have acquired four further LLVs, and taken £6m capacity on a new syndicate,” Martin Reith, Chief Executive, commented.

“Market conditions at Lloyd’s are strong, as reflected in our second published mid-point profit forecast for 2022 of 5.7% of capacity. This, compounded by Helios’ increased retained capacity, £184m for the 2022 year of account, leads us to be confident in our expectation of achieving underwriting profits of 22p per share over the next two years,” Reith added.

For 2022, the midpoint forecast stands at 5.7% profit based on capacity, which remains unchanged from Q1 2023. Despite the setback caused by Hurricane Ian, this forecasted profit will play a substantial role in boosting earned underwriting profits in upcoming periods.

This is especially noteworthy as the underwriting performance for this specific year initially indicated a loss of 4.0% within the first 12 months, says the firm.

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