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Helios Underwriting (AIM: HUW)

Last close As at 18/04/2024

GBP1.63

— 0.00 (0.00%)

Market capitalisation

GBP122m

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.

The outlook for Lloyd’s has improved meaningfully with cumulative premium increases of 65% since 2018. This should continue supporting lower combined ratios, with higher interest rates boosting investment income. The Ukraine war may still affect loss ratios, but natural catastrophe claims and the hurricane season present the greatest risks.

Latest Insights

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Financials | Update

Helios Underwriting — Strong share price on supportive fundamentals

Financials | Update

Helios Underwriting — Huge capacity increase follows capital restructure

Financials | Update

Helios Underwriting — Interim results deliver long-awaited upswing

Financials | Outlook

Helios Underwriting — Active Lloyd’s risk management and promotion
Lloyd’s Building
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Sector

Financials

Equity Analyst

Marius Strydom

Marius Strydom

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 (7.7) 10.2 0.0
Relative (8.5) 6.9 0.4
52 week high/low 182.5p/115.0p

Financials

On 22 March, Helios Underwriting reported NAV for 31 December 2023 of 185p/share. This is broadly in line with our expectations and has not affected the forecasts in our update note published on 16 January. We maintain our valuation of 280p/share, which is at a 51% premium to the 31 December 2023 NAV. Since our last publication, Helios’s share price has risen by 22% (up 33% in the last month). This strong performance is well supported by the underlying fundamentals and outlook (as highlighted in our research) and was delivered despite the conclusion of Helios’s share buyback in January. Share overhang pressure appears to have subsided, although one of Helios’s key shareholders, Hudson Structured Capital Management (HSCM), may still be a natural seller of Helios shares due to internal issues.

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 11.2 9.3
2024E 332.1 25.8 25.8 25.7 6.3 10.3

Research

Lloyd’s Building

Update

Financials

Helios Underwriting — Huge capacity increase follows capital restructure

Update

Financials

Helios Underwriting — Interim results deliver long-awaited upswing

Financials

Update

Helios Underwriting — Strong share price on supportive fundamentals

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