29th Sep 2014 09:47
LONDON (Alliance News) - Helios Underwriting PLC Monday reported a drop in first-half pretax profit, as a result of higher claims paid and amortisation of syndicate capacity.
In a statement, Helios, which provides investors with a limited liability direct investment into the Lloyd's insurance market, said it made a GBP196,000 pretax profit in the six months ended June 30, compared with a GBP602,000 pretax profit in the corresponding period last year.
Gross written premium increased to GBP10.2 million from GBP7.2 million, helping to drive revenue up to GBP6.7 million from GBP4.7 million. But operating expenses increased to GBP2.7 million from GBP1.5 million, due to higher net insurance claims and loss adjustment expenses, as well as an increase in expenses incurred in insurance activities.
Pretax profit was also hit by amortisation of syndicate capacity, which increased to GBP438,000 from GBP226,000.
"Market conditions over the period continue to worsen. We have now opted for an increase to the quota share for the 2014 underwriting year of account from 50% to 70% as a result. We have included two further reinsurers thereby increasing our diversity," Non-Executive Chairman Michael Oliver said in a statement.
Helios shares were Monday untraded at 148.50 pence.
By Samuel Agini; [email protected]; @samuelagini
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