Lloyd’s Building

Helios Underwriting

LN: HUW

Market Cap£120m

Last Close 174p

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

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Investment summary

Helios Underwriting is a successful aggregator of Lloyd’s of London (Lloyd’s) syndicate capacity, delivering a sixfold increase since FY16 and increasing the retained capacity to £172m for this year. This larger portfolio, alongside a hardening underwriting cycle, should fuel strong earnings growth. Helios’s ability to acquire further limited liability vehicles (LLVs) is limited by capital constraints. This will slow capacity growth until FY24 when the hard premium cycle should deliver strong earnings, unless Helios can raise additional capital sooner. Increased funding could fuel strong acquisitive growth for Helios in the remaining £3bn pool of LLV capacity.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2019A 45.9 (1.1) 2.6 24.9 6.8 15.8
2020A 52.6 (0.9) (0.9) 1.6 106.3 N/A
2021E 76.1 (1.3) (1.3) (0.4) N/A N/A
2022E 128.5 6.0 6.0 6.8 25.0 87.6
Industry outlook

The outlook for Lloyd’s has improved meaningfully with cumulative premium increases of 30% since 2018. The Ukraine war may affect loss ratios for the aviation sector in particular but the greater impact will be from rising inflation, which could increase losses, but could also benefit investment income.

Last updated on 11/05/2022
Content on Helios Underwriting
Helios Underwriting – Increased Lloyd’s participation at the right time
Financials | research Initiation | 24 February 2022
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Share price graph
Balance sheet
Forecast net cash (£m) 3.5
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 3.0 4.6 6.3
Relative* 9.6 12.3 7.8
52-week high/low 195.0p/142.5p
*% relative to local index
Key management
Nigel Hanbury CEO