Helios buys Lloyd's vehicle in £3.9m deal

Lloyd's investment vehicle  Helios Underwriting has acquired North Breache Underwriting, a limited liability member of Lloyd's of London, for a total consideration of £3.9 million. The move is in line with its strategy of increasing underwriting capacity through acquisition.

Helios paid £3.4 million on completion in cash, and remaining £0.5 million by the issuance of 304,878 new ordinary shares at 164 pence per share.

The firm noted that total consideration represents a discount of approximately 7.5 percent to the independent valuation of £4.2 million placed on North Breache by Humphrey's.

It said the 2021 underwriting capacity of North Breache is £3.9 million, adding that it participates in a spread of Lloyd's syndicates that broadly matches the existing portfolio of Helios.

The transaction would enable Helios to continue to build its participations on the better syndicates at Lloyd's.

In the year ended 31 December 2020, North Breache made a profit before tax of £0.1 million on gross premiums written of £4.0 million.

Syndicate capacity with an estimated market value of £1.5 million was included in the transaction.

"In addition to the North Breache transaction, Helios is continuing to pursue a number of further Lloyd's LLV acquisitions in line with its strategy," the company said in a statement.

"Terms have been agreed in principle and contractual documentation is being finalised for a further 21 Limited Liability Vehicles which in aggregate have capacity of £22.7m," Helios added. "Further announcements will be made following completion of these transactions."

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