Helios Underwriting (AIM: HUW)

Last close As at 20/05/2024

GBP1.68

0.50 (0.30%)

Market capitalisation

GBP128m

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.

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Lloyd’s Building

Sector

Financials

Equity Analyst

Key Management

  • Martin Reith

    CEO

  • Arthur Manners

    FD

Balance Sheet

Forecast net debt (£m)

17.9

Forecast gearing ratio (%)

13

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 3.4 19.2 (2.6)
Relative (3.2) 9.2 (10.3)
52 week high/low 182.5p/115.0p

Financials

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 11.6 9.6
2024E 332.1 25.8 25.8 25.7 6.5 10.6

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