Lloyd’s underwriter Helios more than doubles GWP but swings to loss in H1

Lloyd’s private capacity provider  Helios Underwriting has swung to a net loss of £652,000 for the first half of 2022, down from £1.1 million profit produced in the same period a year ago. However, the company’s chief executive Nigel Hanbury is optimistic on “steady improvement” in the current market conditions to generate exciting new opportunities for the business.

The company’s gross written premiums increased by 133% to £124 million, compared with £53 million in the first six months of 2021, reflecting the increase in the capacity portfolio.

Helios highlighted 76% improvement in the underwriting result to £3.3 million with a 94.5% combined ratio in H1.

Investment losses of £3.5 million booked in the first six months driven by mark to market investment losses as interest rates have increased, which Helios said “has masked the improvement in the underwriting margins, although higher yields on both syndicate and Group funds will benefit future returns”.

Hanbury, chief executive of Helios, said: "The steady improvement in current market conditions continues to open up exciting windows of opportunity for Helios. The progress in underwriting conditions over five years is being reflected in the improved underwriting margins.

"The results are skewed as a consequence of the recent 133% growth in our retained capacity and a cautious approach to reserving, as we would expect, by our portfolio. With the passage of time, we are confident that our portfolio will demonstrate outperformance against a prudent reserving strategy. The impact of the increased yields on the Group investments will make a contribution in the future.

"Mark to market losses within syndicates' investment bond portfolios have also impacted results. Rising interest rates will help negate that with improved returns from fixed income in future periods.”

He added: "We have increased our retained capacity to £172m for the 2022 underwriting year to take advantage of the current market conditions. We are confident that we can continue to demonstrate our ability to achieve attractive shareholder returns over the next few years."

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