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.
Lloyd’s released record results with FY23 earnings of £10.7bn (equal to the sum of the preceding decade), on the back of historically high premium increases. Near-term combined ratios may recede from the 17-year FY23 low in a benign large claims (natural catastrophe) environment but should remain attractive, with higher interest rates continuing to boost investment income.
Financials |
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Financials |
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Financials |
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Financials |
Outlook
Martin Reith
CEO
Arthur Manners
FD
Forecast net debt (£m)
17.9
Forecast gearing ratio (%)
13
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (6.3) | 18.9 | 6.9 |
Relative | (8.9) | 11.2 | 1.9 |
52 week high/low | 182.5p/115.0p |
Helios Underwriting is a very successful aggregator of Lloyd’s of London (Lloyd’s) syndicate capacity, having recently surpassed £500m after a successful capital restructure. In addition to a strong earnings growth outlook driven by huge capacity increases into a hard underwriting cycle, the company is also benefiting from new innovative growth vectors, a successful recent Lloyd’s auction and the additive benefits of its ongoing share buyback programme. Share price pressure from a current overhang continues to create an opportunity for the company and shareholders to add to or build positions at attractive levels.
Y/E Dec | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (fd) (p) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2021A | 70.6 | (1.9) | (1.9) | (0.8) | N/A | N/A |
2022A | 148.3 | (5.2) | (5.2) | (4.9) | N/A | N/A |
2023E | 213.0 | 14.9 | 14.9 | 14.5 | 11.7 | 9.8 |
2024E | 332.1 | 25.8 | 25.8 | 25.7 | 6.6 | 10.8 |