Helios’ Lloyd’s syndicate portfolio 2025 capacity expected to be £484m

Lloyd’s-focused investment vehicle Helios Underwriting has announced the capacity for its 2025 Lloyd’s syndicate portfolio is expected to be £484 million, which is 5% lower compared to 2023, where total capacity stood at £512 million.

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According to the announcement, this new capacity reflects the company’s strategic adjustments, following trading at the 2024 auctions and other acquisitions.

Helios’ 2025 portfolio maintains a well-diversified balance between growth and stability. This has been achieved through careful allocation across syndicates, geographies and classes, it noted.

82% of the portfolio has been allocated to established syndicates, a strategy that aims to ensure stability while capitalising on promising growth opportunities and a strong pipeline of future profits.

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Michael Wade, Interim Executive Chairman, commented: “Today’s announcement of our estimated 2025 portfolio capacity of £484m underlines our status as a leading, active Lloyd’s syndicate portfolio manager. While pricing adequacy within the Lloyd’s market remains generally strong, we have worked hard to finetune the portfolio’s class of business mix, with lower exposure to new syndicates.

“By collaborating with top-performing syndicates and maintaining a proactive approach, Helios is well positioned to deliver strong results and sustained value in 2025. We head into 2025 confident of our high quality, diversified portfolio and its attractive profit pipeline.”

Helios has also increased by 36% the capacity allocated to Third Party capital providers who participate on a pro rata basis alongside Helios itself. This reflects the company’s commitment to continue building a hybrid fee earning model.

This increase includes the renewal of the existing quota share reinsurance for the 2025 Year of Account, which covers all the syndicates in the portfolio.

Wade added: “The expected profitability for the 2022, 2023 and 2024 open Years of Account remains encouraging with welcome profit distributions ahead for Helios; the Board will review its dividend policy as Lloyd’s syndicate profits become available.

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“As previously announced, Helios has successfully taken steps to reduce its gearing to capital and underwriting risk in 2025. Additionally, the overall cost base for 2025 is projected to reduce materially.

“The Board will continue to review the strategic direction for Helios in 2025 in the interests of maximising long-term value for shareholders. The Board of Helios take this opportunity to thank all shareholders for their continued support.”

The 2025 specialist insurance market presented both challenges and opportunities in syndicate selection, according to Helios. While pricing remained strong overall, some classes softened while others showed growth potential.

By closing monitoring rate adequacy and market conditions, Helios explained, it adjusted its allocations accordingly, reducing exposure to US Casualty due to reserve deterioration and focusing on Property Reinsurance with its strong rate increases.

Risk management also remained key for Helios. It slightly increased natural catastrophe exposure but reduced Cyber risk allocation, aligning its portfolio more closely withLloyd’s Market benchmarks.

By collaborating with top syndicates and proactively responding to market trends, Helios is well-positioned for strong 2025 results, barring unforeseen events, the firm claims.