Helios Underwriting (AIM: HUW)

Currency in GBP

Last close As at 06/02/2023

GBP1.57

−1.00 (−0.63%)

Market capitalisation

GBP121m

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.

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

Sector

Financials

Equity Analyst

Key Management

  • Nigel Hanbury

    CEO

Balance Sheet

Forecast net debt (£m)

4

Forecast gearing ratio (%)

4

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (4.3) 0.0 (10.6)
Relative (8.3) (7.6) (11.0)
52 week high/low 195.0p/143.5p

Financials

Helios Underwriting is a successful aggregator of Lloyd’s of London (Lloyd’s) syndicate capacity, delivering a sixfold increase since FY16. This larger portfolio, alongside a hardening underwriting cycle and higher interest rates, 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)
2020A 52.6 (0.9) (0.9) 1.6 97.8 N/A
2021A 70.6 (1.9) (1.9) (0.7) N/A N/A
2022E 136.6 (1.0) (1.0) (1.1) N/A N/A
2023E 191.7 18.6 18.6 21.5 7.3 4.5

Thematics

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free