11th Dec 2018 12:00
LONDON (Alliance News) - Helios Underwriting PLC said Tuesday it has acquired Lloyd's Member 54532L, a limited liability member of Lloyd's of London, for GBP9.4 million in cash.
The 2018 underwriting capacity of 54532L is GBP10.0 million - compared to Helios' underwriting facility of GBP45.0 million.
Helios is a specialist insurer which buys and sells Lloyd's insurance firms. Helios Capacity Fund is currently active in 20 syndicates.
Helios said 54532L participates in a spread of Lloyd's syndicates that "broadly matches" its existing portfolio.
The company has arranged a short-term loan of GBP8.1 million, at 2.5% above Libor, to finance the acquisition. The loan will be repaid with the existing free cash resources of 54532L, about GBP3.2 million, and GBP4.9 million from the Lloyd's reinsurers quota share. Helios expects to repay the loan by the end of January 2019.
Helios is "continuing to pursue a number" of further Lloyd's acquisitions, in line with its strategy.
Shares in Helios Underwriting were untraded Tuesday but last closed at 107.50 pence each.
Related Shares:
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