Helios looks to acquire Pooks as it continues to grow via acquisition

Helios Underwriting, the business that provides a limited liability direct investment into the Lloyd's insurance market, has agreed to buy Pooks, a limited liability member of Lloyd's that participates in a spread of Lloyd's syndicates, for £870,659 in cash.

The deal fits in with Helios’s strategy of increasing underwriting capacity through acquisition. The 2017 underwriting capacity of Pooks is £784,666. Helios's 2017 capacity will be £32.6 million for 2017 prior to this acquisition.

Pooks participates in a spread of Lloyd's syndicates that broadly matches the existing portfolio of Helios. This includes a significant participation of £118,424 on the Nuclear Syndicate - Syndicate 1176 - managed by Chaucer Syndicates.

Pooks has entered into quota share reinsurance arrangements in respect of 50 percent of its portfolio for 2014 to 2016 underwriting years. These arrangements will remain in place and Helios will reinsure 70 percent of 2017 underwriting year in line with its stated strategy of reducing "on-risk" exposures.

In the year ended 31 December 2015, Pooks made a profit before tax of £28,156 on gross premiums written of £606,141.

Michael Oliver, the chairman of Helios, said: "We are delighted to have made a further acquisition which further increases our underwriting capacity. This is in line with our stated strategy of acquiring corporate members as suitable opportunities arise. The capacity on the Nuclear Syndicate - a high risk syndicate - should, in particular, help provide incremental returns to Helios."

Pooks is ultimately beneficially owned by Nigel Hanbury through his indirect ownership of Upperton Holdings. This also means the deal constitutes a substantial property transaction and, accordingly, is subject to shareholder approval.

Helios said that it expects the deal to be completed by the middle of January 2017.