Shares in Helios Underwriting PLC (AIM:HUW) rose 7.6% to 218.45p after the company posted much improved profits and proposed a return of up to £7.3 million to shareholders by way of a tender offer.
A profit before tax of £4.4 million was announced for the first six months of 2025, up from £1.2 million a year earlier. The increase was driven by reduced operating expenses and favourable foreign exchange movements.
Net asset value rose 6p to £2.39 per share, with further gains expected in the second half as more pipeline profits are recognised.
The group received £21 million in net underwriting profits from the 2022 account and returned £14.3 million to shareholders. A total return of capital of 20p per share is expected in 2025, up from 12p in 2024.
The tender offer, priced at 238p per share, a premium of approximately 16.7% to the last closing price, follows strong results over recent years, and good underwriting conditions in the Lloyd's market, the board said.
Further highlighting the underwriting conditions at Lloyd’s, £40 million in profits is expected from the 2023 year of account, with the 2024 year of account also expected to produce another strong return
Interim executive chairman, John Chambers, said: "The strong pricing environment in the insurance market continues to show through in our pipeline profits. The 2023 profit forecast continues to improve in line with expectations. Historic development patterns indicate that further improvement is likely in the final half year. The 2023 underwriting profit will be received by us next year and will be the largest made by Helios by some margin."
The company also appointed Louis Tucker as CEO and will host its first capital markets day on 21 October.