25th Sep 2015 07:47
LONDON (Alliance News) - Helios Underwriting PLC on Friday said it swung to a loss in the first half due to higher insurance claims and operating costs, though its gross written premiums rose.
Helios, which provides investors with access to the Lloyd's of London specialist insurance market, said its pretax loss for the first half to the end of June was GBP252,000, compared to a GBP196,000 profit made a year earlier. The loss was driven by the group booking GBP4.5 million in net insurance claims and loss adjustment costs, up from GBP3.5 million a year before, and by its operating costs rising to GBP3.0 million from GBP2.7 million.
That offset a rise in gross written premiums for the company in the half, up to GBP11.9 million from GBP10.2 million, which resulted in net earned premiums rising to GBP7.4 million from GBP6.4 million.
Helios said its results were hit by the increased reinsurance expenditure it booked on stop-loss policies in the half, which is consistent with its strategy of trading with lower risk on the most open underwriting years.
The company also said it will consolidate its vehicles, covering the 19 it has acquired since its inception, into a single trading vehicle for the start of 2016. It said this should cut its administrative burden and improve its capital ratios.
Shares in the company were untraded on Friday, having last traded at 190.00 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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