Despite reporting a total comprehensive loss in 2022 of £1.3m, Helios Underwriting’s retained capacity for the 2023 open underwriting year has increased by 34% to £238m, as the firm on state it is “well positioned to maximize the opportunities offered by this disciplined market. .”
Gross written premiums in 2022 increased by a significant 131% to £244m, which Helios said reflected an increased capacity portfolio.
Meanwhile, the Lloyd’s of London investment and underwriting vehicle also saw a 117% growth in net earned premium compared to 2021’s 42%.
As mentioned, Helios sees a total loss of £1.3m for 2022, compared to a profit of £4.9m last year.
The company reported a Pro forma combined ratio of 93%.
Martin Reith, Chief Executive, commented, “We have successfully steered the Company through another challenging year with 2022 proving to be one of the most difficult in recent memory following a series of unexpected events, including interest rate hikes rate, natural disasters and Russian invasion of Ukraine.
“While the headline results show a pre-tax loss, that should not obscure the underlying achievements of the season.
“Our ongoing capacity grew by 34% in 2022 to £238m, in an active year of acquiring blue-chip syndicates across the volatility spectrum, which we expect to deliver attractive underwriting returns in coming years.
“Despite the broader macro-economic conditions, we remain confident that Helios is well positioned to take advantage of the current difficult market and deliver significant returns for shareholders, thanks to improving conditions in the reinsurance market, our improved position, and the increasingly positive landscape for underwriting.”
In a written statement, Michael Cunningham, Non-executive Chairman, said, “It is important to understand that there is a three-year lag in recognizing underwriting income in our accounts so currently we are affected by the growth of The Helios share of the capacity portfolio in 2022, showing the loss of 12 months.
“This loss of the larger portfolio distorted the overall results because the contribution from the income recognized in the 2020 and 2021 underwriting years was overshadowed.”
Cunningham continued, “Lloyd’s announced a consolidated ratio of 91% and expects better results over the next few years, especially when future investment returns are expected to make a significant contribution to future
“The Helios portfolio pro forma combined ratio of 93% is broadly in line with Lloyd’s performance.
“Our strategy is to continue to build a “blue chip” portfolio of underwriting capacity and this year the Helios-retained capacity fund has grown from £172m to £238m.”
He concluded, “We envision further growth in 2023 and into 2024 and position the portfolio accordingly.
“We expect most of the syndicates we support to be the first to benefit from the attractive rating environment and market discipline. In addition, we are in discussions on several new opportunities for Helios that will give us more diversity.
“We will likely seek support from third party capital to allow us to maximize these opportunities for appropriate fees and commissions. We believe this will help us continue to deliver superior returns and generate returns.” -return income while managing volatility.
