Sparks - Helios Underwriting

Helios Underwriting’s results for H126 showed an increase in NAV per share to £2.70 versus £2.63 at end-FY25 and including dividends paid of 10p, a 6.5% NAV total return. The company expects NAV to increase further in H2 as a greater proportion of pipeline profits is recognised. Including dividends paid (10p), share buybacks (3p) and the £7.2m tender offer announced today (11p), Helios now expects a total return of capital of 24p per share in 2026 (2025: 20p per share).

The Lloyd’s market continues to report strong performance and the outlook for 2026 remains positive. Syndicate profit forecasts for the Helios portfolio for the 2024 and 2025 years of account improved further during Q226, by 0.41% to 10.21% and by 0.39% to 11.29% respectively. While at a very early stage of development, the 2026 year of account has seen catastrophe losses below the average of recent years and is developing in line with plan. While there has been softening of pricing levels in most classes of insurance over the past year, this is from a high level, and rating remains robust. Meanwhile, bond yields, combined with the substantial reserves built up across the syndicates, will generate increasing levels of investment income

Helios has committed to returning excess capital to shareholders and the FY26 capital return comes on the back of the £40m of net underwriting profits from the 2023 year of account that were received in May. The cash flow benefit of the growing pipeline profits for the FY24 and FY25 years of account will be seen in 2027 and 2028.