Helios Underwriting has reported significant growth in the value of insurance written, reaching £230 million in the first half of the year. This impressive performance has been attributed to “exceptionally good” market conditions at Lloyd’s of London.
The London-based underwriter, which is the only listed company with direct access to Lloyd’s, benefited from a robust insurance market. A 45% increase in gross written premiums marked a noteworthy rise from £159 million to £230 million over the period.
Helios Underwriting’s Impressive Performance
Helios Underwriting has achieved a substantial increase in the value of insurance written for customers, reaching £230 million in the first half of the year. This growth has been driven by “exceptionally good” market conditions at Lloyd’s of London, the world’s leading insurance market.
As the only listed underwriter with access to Lloyd’s, Helios took full advantage of the robust market conditions in the first six months of its financial year. The company saw a 45% surge in gross written premiums, rising from £159 million to £230 million, indicating strong performance and strategic positioning.
Lloyd’s Market Growth and Rate Hikes
Over the same period, Lloyd’s market experienced a rate hike of 1.5%, building on a 9.1% increase in the first half of 2023. These rate adjustments reflect the overall strong market conditions.
The underwriting result for Helios was consistent with the previous year, with £10.8 million reported, closely aligning with the £11.6 million from 2023. This stability underscores the company’s ability to navigate and capitalise on market dynamics effectively.
Statements from Helios Leadership
Michael Wade, the executive chairman of Helios, highlighted the positive market conditions and the company’s strategic growth.
Wade emphasised that “increased underwriting discipline, strong growth, and sustainable price increases” were key factors in their performance. He also noted that Helios expanded its retained Lloyd’s syndicate capacity participation to £397 million, while maintaining cash levels at £35 million, showcasing financial strength and strategic foresight.
Wade expressed confidence in the group’s strategy, projecting that their diversified Lloyd’s syndicate portfolio would continue to deliver attractive returns for shareholders.
Lloyd’s of London’s Broader Success
Earlier this month, Lloyd’s of London reported a significant rise in pre-tax profits, reaching £4.9 billion in the first half of 2024, up from £3.9 billion in the same period in 2023. This impressive increase reflects the overall health and growth of the insurance market.
John Neal, chief executive of Lloyd’s, described the results as a “superb set of results for the Lloyd’s market.” This endorsement from the leadership of Lloyd’s highlights the favourable conditions and successful strategies implemented across the market.
Strategic Moves and Future Outlook
Helios’s approach to expanding its syndicate capacity and maintaining robust cash reserves has positioned it well to continue benefitting from the positive market conditions.
The company’s commitment to a diversified portfolio approach aims to balance risk and maximise returns, ensuring stability and growth for the future.
Given the strong market conditions and strategic positioning, Helios is expected to sustain its performance and continue delivering strong returns.
Market Conditions and Impact
The favourable market conditions at Lloyd’s have had a positive impact on many aspects of the insurance industry, contributing to growth and stability across the board.
These conditions, characterised by increased discipline and price hikes, have enabled companies like Helios to expand and strengthen their market positioning.
The broader market is also benefiting from these dynamics, as reflected in the significant profit increases reported by Lloyd’s.
Industry Expert Opinions
Analysts have noted that the sustained growth in the Lloyd’s market is a positive indicator for the entire insurance sector.
The combination of rate hikes and strong market conditions is seen as a driving force behind the impressive performance of underwriters like Helios.
In conclusion, Helios Underwriting’s substantial growth highlights the strength of Lloyd’s market conditions and the company’s strategic approach.
Looking ahead, the continued positive market environment and Helios’s strategic initiatives are expected to sustain its impressive performance and deliver attractive returns for shareholders.
