In the first half of the year, Lloyd’s of London witnessed exceptional market conditions, buoying underwriters like Helios Underwriting. This favourable environment helped Helios report a significant increase in gross written premiums.
Strong Market Performance
Helios Underwriting, the only listed company with direct access to Lloyd’s of London, reported a substantial surge in the value of insurance underwritten, reaching £230 million. This marked a 45% increase from £159 million in the corresponding period the previous year. Market conditions at Lloyd’s have been described as ‘exceptionally good’, contributing significantly to this growth.
Notably, Lloyd’s of London itself saw a 1.5% rate hike over the six-month period, adding to a 9.1% increase in the first half of 2023. These figures reflect the robust nature of the insurance market during this period.
Underwriting Discipline and Growth
According to Helios, their underwriting discipline coupled with sustainable price increases has been key to their success. The company reported an underwriting result of £10.8 million, closely aligning with the £11.6 million reported for the same period in 2023.
Michael Wade, Helios’ executive chairman, commented on the group’s strategy, highlighting their expanded participation in Lloyd’s syndicate capacity to £397 million, while maintaining strong cash levels at £35 million.
Impressive Financial Results
Lloyd’s of London announced an overall pre-tax profit of £4.9 billion in the first half of 2024, a significant rise from £3.9 billion in 2023.
John Neal, the CEO of Lloyd’s, praised these results as a ‘superb set of results’, indicating the strength and efficiency of the Lloyd’s market.
This growth in profit underscores the strong market conditions that have benefited underwriters such as Helios.
Strategic Expansion
Helios Underwriting’s strategy involves broadening its spread of Lloyd’s syndicate portfolio, which is expected to continue delivering attractive returns for shareholders.
Wade expressed confidence in their strategy, citing the robust market conditions and increased underwriting discipline as pivotal factors for their future success.
CEO Commentary
Michael Wade noted that the improved market conditions and the disciplined approach in underwriting were crucial for their positive performance. He said, ‘The Lloyd’s market is experiencing exceptionally good market conditions, as increased underwriting discipline combines with strong growth and sustainable price increases.’
The company has expanded its retained Lloyd’s syndicate capacity participation to £397 million, with cash levels remaining strong at £35 million.
Such strategic decisions have positioned Helios favorably within the market, reinforcing their ability to deliver substantial returns.
Future Outlook
Given the robust market conditions and continued strategic expansions, Helios is optimistic about sustaining its growth trajectory.
The underwriter’s diversified portfolio approach within Lloyd’s syndicates is likely to continue yielding positive results, ensuring shareholder satisfaction.
Lloyd’s Market Overview
Earlier this month, Lloyd’s of London reported a surge in profit with an overall pre-tax profit of £4.9bn in the first half of 2024.
This marked an increase from £3.9bn reported in the same period in the previous year, reflecting the positive market trends and effective financial strategies.
In conclusion, the exceptional market conditions at Lloyd’s of London have significantly benefited underwriters such as Helios. The strategic decisions and disciplined underwriting approach have positioned Helios for continued success.
The financial results reported by both Helios and Lloyd’s underscore the strength and resilience of the insurance market in the first half of 2024.
