Helios Underwriting PLC (LON:HUW) reported better than expected net asset value from its investment portfolio of Lloyd’s of London companies.
The fund, which acquired four limited liability vehicles of former Lloyd’s Names for £10mln in the past year and has added another in 2020, generated a profit before impairments and tax for the year of £2.5mln, up 300% on the previous year.
This, plus continued improvement in return on capacity relating to the 2017 year of account, saw adjusted net asset value rise to 206p per share from 190p a year earlier, and above the 198p guidance given in January.
In view of the COVID-19 uncertainty, the board decided not to recommend a final dividend, saying the full impact on the insurance industry, including the Lloyd's market, is uncertain.
“The initial assessment by supported syndicates has identified those lines of business most likely to be impacted, however the full extent of the losses and the impact upon pricing will become clearer as the year progresses,” said chairman Michael Cunningham.
He added: “The COVID-19 coronavirus pandemic will be a manageable loss for the property and casualty insurance and reinsurance industry, unless there is some kind of structural change to drive the cost to the sector much higher.”
Shares in the group rose 8% on Friday morning to 89p, still roughly a third lower since the start of the year.