Financial summary
The information set out below is a summary of the key items that the Board assesses in estimating the financial position of the Group.
Given the Board has no active role in the management of the syndicates within the portfolio, the following approach is taken.
Board approach
- It relies on the financial information provided by each syndicate.
- It calculates the amounts due to / from the quota share reinsurers in respect of their share of the profits/losses as well as fees and commissions due.
- An adjustment is made to exclude pre-acquisition profits on companies bought in the year.
- Costs relating to stop loss reinsurance and operating costs are deducted.
Year to 31 December
| 2023 £’000 | 2022 £’000 |
|---|
| Underwriting profit | 31,560 | 116 |
| Other income: | | |
| — fees from reinsurers | 1,408 | 562 |
| — corporate reinsurance recoveries | - | 33 |
| Amortisation of goodwill | 619 | 1,216 |
| — investment income | 2,103 | 647 |
| Total other income | 4,130 | 2,458 |
| Costs: | | |
| — Pre-acquisition | (494) | (46) |
| — Portfolio Stop Loss | (2,561) | (1,002) |
| — Portfolio Funds at Lloyd’s Financing | (3,112) | (1,446) |
| — Operating costs | (6,818) | (4,033) |
| Total costs | (12,985) | (6,527) |
| Operating profit/(loss) before impairments of goodwill and capacity | 22,704 | (3,953) |
| Tax | (6,334) | 1,852 |
| Revaluation of syndicate capacity | 17,987 | 2,670 |
| Income tax relating to the components of other comprehensive income | (4,497) | (668) |
| Comprehensive income / loss | 29,861 | (99) |
| Earnings per share | 21.56p | (3.08p) |
Year to 31 December 2023
| Year | Helios retained capacity at 31 Dec 2023 £m | Portfolio mid point forecasts | Helios profits £’000 |
|---|
| 2021 | 102.3 | 6.8% | 6,831 |
| 2022 | 180.9 | 8.1% | 18,949 |
| 2023 | 244.5 | 12% | 5,780 |
| | | 31,560 |
Year to 31 December 2022
| Year | Helios retained capacity at 31 Dec 2022 £m | Portfolio mid point forecasts | Helios profits £’000 |
|---|
| 2020 | 72.0 | 3.1% | 2,647 |
| 2021 | 99.3 | 2.4% | 4,546 |
| 2022 | 177.6 | 5.8% | (7,077) |
| | | 116 |
Summary balance sheet
(Excluding assets and liabilities held by syndicates)
| 2023 £’000 | 2022 £’000 |
|---|
| Intangible assets | 82,117 | 59,375 |
| Funds at Lloyd’s | 70,754 | 73,771 |
| Other cash | 40,913 | 10,254 |
| Other assets | 4,876 | 6,909 |
| Total assets | 198,660 | 150,309 |
| Deferred tax | 22,277 | 11,228 |
| Borrowings | 59,055 | 15,000 |
| Other liabilities | 12,081 | 3,839 |
| Total liabilities | 93,413 | 30,067 |
| Total syndicate equity | 34,854 | (5,123) |
| Total equity | 140,101 | 115,119 |
| NTAV – £ per share | 1.89 | 1.51 |
Cash flow
| Analysis of free working capital | Year to 31 Dec 2023 £’000 | Year to 31 Dec 2022 £’000 |
|---|
| Opening balance | 10,254 | 16,178 |
| Distribution of profits (net of tax retentions & QS payments) | 2,530 | 2,736 |
| Transfers from Funds at Lloyd’s | 9,984 | 4,772 |
| Other income | 2,727 | 280 |
| Sale / purchase of capacity | (500) | 5,051 |
| Operating costs (inc Hampden / Nomina fees) | (7,716) | (4,099) |
| Reinsurance costs | (3,520) | (3,377) |
| Tax | (236) | (342) |
| Return of capital to shareholders | (5,181) | (2,034) |
| Transfers to Funds at Lloyd’s | (4,331) | (31,578) |
| Free cash flow | (6,243) | (16,170) |
| Senior debt principal | 59,055 | 15,000 |
| Repayment of borrowings | (15,000) | - |
| Proceeds from issues of shares | - | 12,421 |
| Aquisitions | (7,153) | (4,754) |
| Net cash flow in the year | 30,659 | (5,924) |
| Balance carried forward | 40,913 | 10,254 |
| Asset value calculation | Year to 31 Dec 2023 £’000 | Year to 31 Dec 2022 £’000 |
|---|
| Net assets | 140,101 | 117,178 |
| Add total debt | 59,055 | 15,000 |
| Add deferred tax on intangible asset | 20,136 | 14,139 |
| Asset value | 219,293 | 146,317 |
| Debt ratio | 27% | 10% |
