25th May 2018 09:44
LONDON (Alliance News) - Helios Underwriting PLC said Friday it swung to a loss in 2017 due the costs of several natural catastrophes.
The insurance company that operates at the Lloyds of London market reported a pretax loss of GBP406,000 in 2017 versus a profit of GBP1.3 million in 2016. Its operating loss for 2017 was GBP471,000 versus a profit of GBP1.3 million previously.
In November, Helios said it expected to report a swing to an operating loss for 2017 as it had been hit by catastrophe losses from hurricanes in the Caribbean and southern US and from bush fires in California.
The company cut its total dividend 72% to 1.5 pence from 5.5p in 2016.
Helios's adjusted net asset value per share was down to GBP1.6 from GBP2.0.
"The 2017 underwriting year was affected by the worst catastrophe losses for some years, in addition, 2016 returns were lower due to softening market conditions," Non-Executive Chairman Michael Cunningham said.
"The 2017 losses have been fully recognised in these accounts so any improvement in the next two years will contribute to earnings. In addition, firmer market conditions should be reflected in the underwriting returns in the future."
Helios shares were down 4.4% at 110.00 pence.
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