HELIOS PLANS TO RAISE FUNDS FOR FURTHER ACQUISITIONS

Helios Underwriting reported on Friday that profits had soared in the first half of the year as it unveiled plans to raise as much as £8m ($10.4m) to fund further acquisitions. The Lloyd’s corporate member reported operating profit of £605,000 for the first six months of the year, compared to £73,000 a year earlier. Helios saw increased profit contributions from older underwriting years, which benefited from the weakening of sterling following the UK’s vote to leave the EU. This offset a widening loss on the 2016 year of account, which Helios said was “as expected as expenses are incurred before the underlying profits from the underwriting are recognised”. Helios said it continued to reduce its exposure by 70% on the open underwriting year 2016 through quota-share reinsurance. The UK-listed company has been building its syndicate capacity through the acquisition of limited liability vehicles (LLVs). During the first half of 2016 it acquired two LLVs, taking its 2016 underwriting year capacity to £32.7m. It acquired six corporate members in 2015. Helios said it was proposing to a placing of new ordinary shares to raise up to £5.25m to fund further acquisitions. In addition, it may raise a further £3.2m through a conditional open offer to existing shareholders.