The underwriting performance witnessed an astonishing improvement, with a staggering 252% increase in results.
This substantial GWP boost, as stated by Helios, is a direct reflection of the expansion of their capacity portfolio. In terms of underwriting results, H1 2023 recorded £11.6 million, marking a remarkable 252% surge from the £3.3 million reported in the corresponding period of 2022.
Helios further highlighted that the increase of 33% in the underwriting exposure for the 2023 Year of Account, totaling £244 million of retained capacity, is expected to make a significant contribution to future underwriting outcomes. The firm’s combined ratio for H1 2023 stands at a healthy 88%.
The report from Helios underlines the Lloyd’s market’s impressive achievement of a 9.1% rate increase in H1, which it credits as a continuation of the favorable market conditions within Lloyd’s.
Additionally, the company noted a notable improvement in investment returns, with gains of £3.1 million booked in H1, benefiting from increased interest rates. This marks a notable turnaround from the losses of £3.5 million reported during the same period in the previous year.
In terms of operating profit, Helios reported a substantial figure of £6.0 million in H1, signifying a significant improvement compared to the loss of £3.4 million in H1 2022.
Helios Underwriting’s robust performance in the first half of 2023 highlights its continued growth and financial strength, positioning it favorably in the dynamic Lloyd’s market.
Speaking about the report, Martin Reith, Chief Executive, Helios Underwriting, said, “The continued improvement in market conditions presents exciting opportunities for Helios. The portfolio is positioned to benefit from pricing and market discipline, and underwriting profits are now being recognised from five years of improved underwriting margins.
“We are confident that, given market discipline, we should continue to see favorable returns across our portfolio. The resilience of these conditions seems to be more sustainable, and we fully expect our portfolio to thrive.”
Reith continued, “The results are a little skewed as a consequence of the recent rapid 33% growth in our retained capacity in 2023 and a cautious approach to reserving adopted within our portfolio.
“With the passage of time and as the better loss ratio premium earns through, we are confident that our portfolio will demonstrate outperformance against a prudent reserving strategy.
Reith added: “The impact of the increased yields on the Group investments will make a contribution in the future.”
