Helios Underwriting : Acquisition of Lloyd's Member 54532L

Helios Underwriting plc

('Helios' or the 'Company')

Acquisition ofLloyd's Member 54532L

Helios is pleased to announce that, in line with its strategy of increasing underwriting capacity through acquisition, it has acquired Lloyd's Member 54532L ('54532L') a limited liability member of Lloyd's of London ('Lloyd's'). The consideration payable for 54532L is £9.4 million in cash.

Information in respect of 54532L

The 2018 underwriting capacity of 54532L is £10.0m (this compares with Helios's 2018 capacity of £45.0m prior to this acquisition, which includes the capacity from the acquisition of Advantage DCP Limited). 54532L participates in a spread of Lloyd's syndicates that broadly matches the existing portfolio of Helios and this transaction enables Helios to continue to build its participations on the better syndicates at Lloyd's.

The consideration represents a discount of approximately 10% to the independent valuation of £10.4m placed on 54532L by Humphrey'sand is approximately £0.4m below the fair value of assets being acquired.

The capacity acquired, together with the capacity Helios expects to retain, is as follows:

54532L	Year of Account
	2016	2017	2018
	£m	£m	£m
Retained	10.3	10.8	3.0
Reinsured	-	-	7.0
Total Capacity	10.3	10.8	10.0

Helios will reinsure 70% of 2018 underwriting year in line with its stated policy of reducing 'on-risk' exposures.

Helios has arranged a short-term loan of £8.1m at 2.5% above LIBOR to assist in the financing of this acquisition which will be repaid from existing free cash resources of £3.2m within 54532L and from the provision of Funds at Lloyds of £4.9m by quota share reinsurers in respect of recent acquisitions. The Company expects to repay the loan by the end of January 2019.

In addition to the 54532L transaction, Helios is continuing to pursue a number of further Lloyd's LLV acquisitions in line with its strategy.

Additional information

54532L is a limited liability member of Lloyd's. In the year ended 31 December 2017, 54532L made a loss before tax of £0.4m on gross premiums written of £10.8m. Syndicate capacity with an estimated market value of £3.1m has been included in the transaction.

Helios Retained Capacity

The acquisition of 54532L, together with smaller acquisitions made earlier in the year has increased the Helios Capacity Portfolio by 35% in 2018 to date.

	Year of Account
	2016	2017	2018
	£m	£m	£m
Capacity - Position as at 1st Jan 2018	37.8	37.0	41.0
Retained	17.9	11.6	12.3
Reinsured	19.9	25.4	28.7
Capacity acquired since 1st Jan 2018
Retained	15.8	15.8	5.9
Reinsured	-	-	8.4
Capacity - Position as at 5thDecember2018
Retained	33.7	27.4	18.2
Reinsured	19.9	25.4	37.1
	53.6	52.7	55.3
Increase in capacity			35%

For further information, please contact:

Helios Underwriting plc

Nigel Hanbury - Chief Executive 07787 530 404 / [e-mail]

Arthur Manners - Chief Financial Officer 07754 965 917

Stockdale Securities Limited

Robert Finlay 020 7601 6100

David Coaten

About Helios

Helios provides a limited liability direct investment into the Lloyd's insurance market and is quoted on the London Stock Exchange's AIM market (ticker: HUW). Helios trades within the Lloyd's insurance market writing approximately £55m of capacity for the 2018 account. The portfolio provides a good spread of business being concentrated in property insurance and reinsurance. For further information please visit www.huwplc.com.