Helios Underwriting posts solid H1 performance, proposes tender offer

(Sharecast News) - Limited liability direct investor Helios Underwriting posted a solid first-half performance on Monday, underpinned by favourable market conditions at Lloyd's and improved operational efficiency.

Helios said net asset value per share rose to 239p, up from 233p at year-end, driven by recognised underwriting profits and reduced operating costs. Pre-tax profits came in at £4.4m, supported by foreign exchange gains and lower financing expenses.

Operating expenses relative to capacity fell by more than 50%, while the 2024 year of account was now forecast to deliver an 8% profit on capacity, with the group tracking towards "a strong ultimate result" despite market-wide losses from hurricanes and marine events. Helios also highlighted that 2023 underwriting profits, due next year, would be its largest to date.

Helios, which paid a 10p dividend to shareholders in H1, said it remains well-positioned to deliver long-term shareholder returns, with strong pipeline profits and a positive outlook for the remainder of the year.

Seperately, Helios announced a proposed return of capital to shareholders via a tender offer of up to £7.3m, equivalent to 238p per ordinary share, representing a premium of roughly 16.7% over the middle market closing price on 25 September. Helios intends to repurchase up to 3.05m shares, representing approximately 3.9% of the company's issued share capital.

As of 1020 BST, Helios shares were up 5.45% at 216.17p.

Reporting by Iain Gilbert at Sharecast.com