31st May 2016 11:12
LONDON (Alliance News) - Helios Underwriting PLC on Tuesday said it acquired Nameco (No 346) Ltd, a limited liability member of the Lloyd's of London insurance market, for GBP3.8 million in cash.
The move adds a vehicle with an underwriting capacity of GBP3.3 million in 2016 to Helios Underwriting's existing capacity of GBP29.3 million.
The limited liability member participates in a spread of Lloyd's syndicates "broadly similar" to Helios's own participation.
"We are delighted to have made a further LLV acquisition which further increases our underwriting capacity. This is in line with our stated strategy of acquiring corporate members as suitable opportunities arise. We continue to believe that there remain significant opportunities for further growth available to the company," Chief Executive Officer Nigel Hanbury said in a statement.
News of the acquisition came as Helios Underwriting reported a GBP654,000 pretax profit in 2015, down from GBP2.2 million the prior year.
Revenue rose to GBP16.5 million from GBP14.0 million, net insurance claims and loss adjustment expenses rose to GBP7.5 million from GBP5.9 million, and operating expenses increased to GBP8.4 million from GBP6.8 million.
Premium written during the period amounted to GBP21.5 million, up from GBP17.1 million the prior year, and Helios Underwriting said it made increased use of quota share reinsurance to reduce its own exposure.
Reduced exposure has freed up capital to be available for acquisitions, the company said, with six acquisitions of corporate members during the period. Profit reduced as levels of reinsurance have increased, according to Helios Underwriting, which decreased its total dividend per share for 2015 to 5.0 pence from 5.1p.
"The board is pleased to report a set of encouraging results for 2015 which reflects the reduced risk profile of the group and a focus on increasing the capital available to the group to fund a number of advantageous acquisitions of corporate members made during the year. The board is also pleased to recommend a final dividend of 1.5p per share, together with a special dividend of 3.5p per share, making a total of 5p per share," Chairman Michael Oliver said in a statement.
Chief Executive Officer Nigel Hanbury said: "I am delighted to report on a year where we have successfully managed to control our risk exposure, stay ruthlessly focused on quality syndicates and significantly expand our portfolio of corporate members. Our strategy has enabled us to grow our net asset value per share strongly."
Shares in Helios Underwriting were untraded on Tuesday at about midday London time. The stock closed at 182.50p Friday.
By Samuel Agini; [email protected]; @samuelagini
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