Sparks - Helios Underwriting

Helios underwriting results for 2025 showed an 8.2% increase in NAV per share to £2.63 and including dividends paid, a 12.3% NAV total return. A total of £14.2m or 20p per share of capital was returned to shareholders during the year, including the 10p DPS and 10p share tender offer. A similar level of return is proposed for the current year, comprising a 7p base dividend and 3p special dividend and 10p returned via share buybacks and/or tender offer. Earnings for the year of £20.5m (2024: £20.9m) reflected profits from the 2023,2024, and 2025 years of account, according to the company’s recognition policy, changes in the value of the freehold capacity and realised gains from freehold capacity sales, and reduced expenses through lower financing and operating costs. The underwriting profits recognised in 2025 were derived principally from the 2024 year of account, which is projected to deliver a good level of return, despite a series of significant catastrophic events.

The company received £23.7m (net of reinsurance) from the 2022 year of account in May 2025 and in the current year will receive profits (net of reinsurance) of approximately £40.0m, from the 2023 year of account. Following consecutive years of rate increment, the market is beginning to soften, with rates moderating across several classes of business. However, pricing adequacy remains robust relative to long-term loss trends and syndicates are increasingly focused on maintaining underwriting discipline, rate adequacy, and cycle management. Against this backdrop, Helios is positioning its portfolio more defensively. Capacity for the 2026 year of account is £467m (2025: £496m) with a greater exposure established syndicates with proven track records and reduced allocations to to newer or less tested platforms.