Helios Underwriting acquires Lloyd's vehicle North Breache

Helios Underwriting announced on Wednesday that, in line with its strategy of increasing underwriting capacity through acquisition, it has acquired North Breache Underwriting, a limited liability member of Lloyd's of London.

The AIM-traded firm said the total consideration paid for North Breache was £3.9m, of which £3.4m was paid on completion in cash and £0.5m was satisfied by the issue of 304,878 new shares in Helios at 164p each.

It said the 2021 underwriting capacity of North Breache was £3.9m, adding that the firm participated in a spread of Lloyd's syndicates that broadly matched the existing portfolio of Helios.

The transaction would enable Helios to continue to build its participations on the better syndicates at Lloyd's, the board said.

It noted that the consideration represented a discount of about 7.5% to the independent valuation of £4.2m placed on North Breache by Humphrey's.

In the year ended 31 December, North Breache made a profit before tax of £0.1m on gross premiums written of £4m.

Syndicate capacity with an estimated market value of £1.5m was included in the transaction.

“In addition to the North Breache transaction, Helios is continuing to pursue a number of further Lloyd's limited liability vehicle acquisitions in line with its strategy,” the board said in its statement.

“Terms have been agreed in principle and contractual documentation is being finalised for a further 21 limited liability vehicles, which in aggregate have capacity of £22.7m.

“Further announcements will be made following completion of these transactions.”

At 1033 BST, shares in Helios Underwriting were down 4.69% at 152.5p.