Financial summary
The information set out below is a summary of the key items that the Board assesses in estimating the financial position of the Group.
Given the Board has no active role in the management of the syndicates within the portfolio, the following approach is taken.
Board approach
- It relies on the quarterly syndicate forecasts to assess its share of the underlying profitability of the syndicates within the portfolio.
- It calculates the amounts due to / from the quota share reinsurers in respect of their share of the profits/losses as well as fees and commissions due.
- An adjustment is made to exclude pre-acquisition profits on companies bought in the year.
- Costs relating to stop loss reinsurance and operating costs are deducted.
Year to 31 December
| 2022 £’000 | 2021 £’000 | |
|---|---|---|
| Underwriting profit | 116 | 3,401 |
| Other income: | ||
| — fees from reinsurers | 562 | 616 |
| — corporate reinsurance recoveries | 33 | (372) |
| — goodwill on bargain purchase | — | 1,219 |
| — investment income | 647 | 1,237 |
| Total other income | 1,242 | 2,700 |
| Costs: | ||
| — pre-acquisition | (46) | (1,271) |
| — stop loss costs | (1,261) | (1,871) |
| — operating costs | (5,220) | (3,604) |
| Total costs | (6,527) | (6,746) |
| — Operating profit/(loss) before impairments of goodwill and capacity | (5,169) | (645) |
| — Tax | 1,852 | 211 |
| — Revaluation of syndicate capacity | 2,670 | 8,132 |
| — Income tax relating to the components of other comprehensive income | (668) | (2,766) |
| Comprehensive income | (1,315) | 4,932 |
Year to 31 December 2022
| Year | Helios retained capacity at 31 Dec 2022 £m | Portfolio mid point forecasts | Helios profits £’000 |
|---|---|---|---|
| 2020 | 72.0 | 3.1% | 2,647 |
| 2021 | 99.3 | 2.4% | 4,546 |
| 2022 | 177.6 | N/A | (7,077) |
| 116 |
Year to 31 December 2021
| Year | Helios retained capacity at 31 Dec 2021 £m | Portfolio mid point forecasts | Helios profits £’000 |
|---|---|---|---|
| 2019 | 67.4 | 2.7% | 4,092 |
| 2020 | 66.6 | 0.97% | 2,915 |
| 2021 | 93.6 | N/A | (3,606) |
| 3,401 |
Summary balance sheet
| 2022 £’000 | 2021 £’000 | |
|---|---|---|
| Intangible assets | 61,434 | 60,889 |
| Funds at Lloyd’s | 73,771 | 43,589 |
| Other cash | 10,254 | 16,178 |
| Other assets | 6,909 | 5,517 |
| Total assets | 152,368 | 126,173 |
| Deferred tax | 11,228 | 11,887 |
| Borrowings | 15,000 | - |
| Other liabilities | 3,839 | 3,052 |
| Total liabilities | 30,067 | 14,939 |
| Total syndicate equity | (5,123) | (3,488) |
| Total equity | 117,178 | 107,746 |
Cash flow
| Analysis of free working capital | Year to 31 Dec 2022 £’000 | Year to 31 Dec 2021 £’000 |
|---|---|---|
| Opening balance (free cash) | 16,178 | 4,961 |
| Income | ||
| Cash acquired on acquisition | 123 | 1,939 |
| Distribution of proits (net of tax retentions) | 2,736 | 475 |
| Transfers from Funds at Lloyd’s | 4,772 | 336 |
| Other income | 280 | 95 |
| Proceeds from the sale of capacity | 5,372 | - |
| Proceeds from the issue of shares | 12,421 | 53,231 |
| Borrowings | 15,000 | - |
| Cancelled reinsurance policy refunds | 1,628 | 6,964 |
| Expenditure | ||
| Operating costs | (4,099) | (3,702) |
| Purchase of capacity | (5,005) | (2,663) |
| Acquisition of LLVs | (321) | (26,529) |
| Transfers to Funds at Lloyd’s | (4,877) | (12,270) |
| Tax | (31,578) | (641) |
| Dividends paid | (342) | (2,018) |
| Repayment of borrowings | (2,034) | (4,000) |
| Closing balance | 10,254 | 16,178 |
