Helios Underwriting forecasts a reduced reinsurance capacity portfolio for 2025, citing strategic shifts after trading in 2024 auctions and acquisitions. The portfolio is expected to decrease from £512 mn to £484 mn ($615 mn), with retained capacity at £327 mn and third-party capacity increasing to £157 mn from £115.5 mn.
Helios Underwriting is building a portfolio of Lloyd’s capacity made up of the better syndicates at Lloyd’s. This portfolio offers investors income which is uncorrelated to equity market cycles.
The company anticipates a “material reduction” in its 2025 cost base. Helios stated that its 2025 capacity portfolio reflects strategic adjustments and comprises £484 mn allocated across diversified syndicates.
Approximately 82% of the portfolio consists of established syndicates, balancing stability with profit and growth opportunities.
Michael Wade, interim executive chairman, noted that pricing adequacy in the Lloyd’s market remains strong. Helios has optimized its business mix, reducing exposure to newer syndicates. Collaborating with top-performing syndicates positions the company for robust results and sustained value. Wade expressed confidence in the portfolio’s quality and profit potential for 2025.
While pricing adequacy within the Lloyd’s market remains generally strong, we have worked hard to fine-tune the portfolio’s class of business mix, with lower exposure to new syndicates
Michael Wade, interim executive chairman
Profitability for open years of account in 2022, 2023, and 2024 remains promising, with anticipated profit distributions. Wade stated that the board will review its dividend policy as Lloyd’s syndicate profits emerge. Helios has also taken steps to lower gearing to capital and underwriting risk and projects a reduced cost base for 2025.
The company continues to build its hybrid fee-earning model, increasing third-party capital allocations by 36% for the 2025 account. This includes renewing a quota share reinsurance arrangement covering all syndicates in the portfolio.
Helios highlighted mixed conditions in the 2025 specialist insurance market. Some classes softened, while others presented growth potential.
By closely monitoring rate adequacy and market conditions, we adjusted allocations, reducing our exposure to U.S. casualty, which has faced reserve deterioration due to increased court awards, and focusing on property reinsurance
Adjustments included reduced exposure to U.S. casualty, affected by reserve deterioration and higher court awards, and increased focus on property reinsurance, which benefited from rate hikes and improved terms.
Risk management remains central, with a slight increase in natural catastrophe exposure offset by lower cyberrisk allocations. The portfolio’s class mix has been refined to align with Lloyd’s market benchmarks.
