Helios snaps up Lloyd's LLV Advantage for up to £1.9m

Lloyd's private capacity provider Helios Underwriting has acquired Advantage DCP, a limited liability member (LLV) of Lloyd's of London, for a consideration of up to £1.91 million.

The final consideration, which may vary between £1.66 million and £1.91 million is dependent on deterioration from the current 2017 midpoint forecast of Advantage and the final result of that year, payable in cash.

The maximum consideration represents a discount of 27 percent to the independent valuation of £2.6 million placed on Advantage by Humphrey's and approximately £0.6 million below the fair value of assets being acquired, according to a corporate statement.

Advantage made a loss of £0.2 million (before tax) on gross premiums written of £4.3 million in 2017. Its 2018 underwriting capacity is £2.3 million. Helios trades within the Lloyd's insurance market writing approximately £45 million of capacity for the 2018 account. The portfolio is concentrated in property insurance and reinsurance.

Helios said the transaction is a part of its strategy to increase underwriting capacity through acquisition.