Lloyd’s Syndicate Helios Underwriting projects a decline in the capacity value of its fund by year-end 2024, despite an increase in tangible net asset value during the 9M 2024.
Syndicate reported an average price of 45 pence per pound of capacity after the 2024 Lloyd’s auctions. This reflects a slight decrease in auction prices and a shift in the freehold portfolio mix.
By the end of 2024, the capacity fund’s value, based on weighted average prices from the auctions, is expected to fall to £75 mn ($95 mn) from £82.4 mn at the end of 2023.
This decrease accounts for £14 mn realized in cash from syndicate operations, according to Helios, which manages a Lloyd’s syndicate portfolio. The freehold capacity value is projected to decline from £175.9 mn in 2023 to £166.4 mn this year.
A rise in the net asset value (NAV) per share by 15 pence, reaching 206 pence, an 8% increase compared to June 30, 2024. Wade emphasized this as evidence of the portfolio’s strength.
Helios noted that syndicates it supports provided £15.6 mn of free capacity through pre-emptions in 2024, up from £14.7 mn in the prior year. Pre-emptions added £3.4 mn to the portfolio value, down from £7.0 mn in 2023.
The freehold capacity portfolio has continued to deliver value to shareholders. We have realized £14 mn of capacity value to boost the company’s tangible assets
Michael Wade, Chairman at Helios Underwriting
Additionally, Helios backed Fidelis Syndicate 3123, launched in July 2024, allocating £13 mn of capacity for the 2025 account.
Helios realized a £1.8 mn profit from the sale of £38 mn in capacity during the 2024 auctions. This transaction boosted cash reserves and tangible net assets by £14 mn while reducing balance sheet exposure to capacity value.
