Lloyd’s of London investor Helios Underwriting hikes shareholder returns as profit jumps
Helios Underwriting has reported a jump in gross written premium and profit thanks to the buoyant insurance environment.
The firm, which bills itself as the only publicly traded company that provides access to a diverse portfolio of Lloyd’s of London syndicates, said it had increased its gross premium written in the year to 31 December 2023 by 26 per cent to £308m, with its capacity portfolio at Lloyd’s rising 63 per cent to £507m.
The group attributed its growth to Lloyd’s “outstanding financial performance underpinned by strong pricing and underwriting discipline.”
Helios reported a combined ratio—a measure of losses and expenses paid out compared to insurance premiums received—of 86 per cent on its portfolio of syndicates, down from 96 per cent in 2022.
The company reported a £18m profit on the revaluation of its capacity and a comprehensive profit of £29.9m, including underwriting income.
Overall, Helios recorded earnings per share of 22p for 2023 compared to a loss of 3.1p for 2022. Its book value per share rose to 189p from 151p last year.
In 2023, the company returned £5.5m to shareholders with £2.3m or 3p per share distributed via dividends and £3.2m spent on share repurchases.
Helios said it would double down on shareholders returns in 2024 with a base dividend of £4.5m or 6p per share pencilled in with a further share buyback of £3.7m. The company said it aimed to complete the buyback by the end of 2024.
The aggregate capital returned to shareholders in 2023 and 2024 is expected to be up to £14.5m – 19p per share.
Martin Reith, CEO of Helios said: “We have focused on growing scale and relevance to ensure we maximise these market opportunities: we have grown by 63% in the past year alone, across all parts of the portfolio and through increased fee income.
“We continue to actively seek out new opportunities to expand our presence by supporting the best management teams and new ventures at Lloyd’s where our capacity, insights and experience add real value.”
“Lloyd’s is the home of insurance innovation, providing solutions for many of the world’s most pressing issues – from climate change, to the energy transition, and cyber risks. I’m proud of the way Helios has developed into a key partner for syndicates at Lloyd’s and the pre-eminent provider of private capital into the market,” Reith added.