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

2018 £’0002017 £’000
Underwriting profit783183
Other income:
— fees from reinsurers575426
— corporate reinsurance recoveries366629
— goodwill on bargain purchase1,18465
— investment income(246)158
Total other income1,8791,278
Costs:
— pre-acquisition(56)38
— stop loss costs(296)(259)
— operating costs(1,702)(1,646)
Total costs(2,054)(1,867)
— Operating profit before goodwill and impairment608(406)
— Impairment charge – capacity(281)(899)
— Tax129611
Profit for the year456(694)

Year to 31 December 2018

YearHelios retained capacity at 31 Dec 2018 £mPortfolio mid point forecastsTotal profit currently estimated £’000% earned in the 2018 calendar yearHelios profits £’000
201633.98.6%2,91554%1,580
201728.2(8.2%)(2,312)39%912
201818.3N/A(1,709)
783

Year to 31 December 2017

YearHelios retained capacity at 31 Dec 2017 £mPortfolio mid point forecastsTotal profit currently estimated £’000% earned in the 2017 calendar yearHelios profits £’000
201519.712.9%2,54751%1,295
201618.33.5%641116%740
201712.0N/A(1,851)
184

Summary balance sheet

2018 £’0002017 £’000
Intangible assets16,05112,175
Funds at Lloyd’s8,38810,489
Other cash9,7171,078
Other assets10,1566,669
Total assets44,31230,411
Deferred tax2,5692,963
Borrowings9,1961,094
Other liabilities3,8914,391
Total liabilities15,6568,448
Total syndicate equity(7,611)(954)
Total equity21,04521,009

Cash flow

Helios has generated £1.6m of cash in 2018 after the repayment of the short term borrowings of £8.1m.

Analysis of free working capitalYear to 31 Dec 2018 £’000Year to 31 Dec 2017 £’000
Opening balance (free cash)1,0787,229
Income
Cash acquired on acquisition1,0577,229
Distribution of pro ts (net of tax retentions)3,8874,064
Transfers from Funds at Lloyd’s14,8802,211
Other income323300
Proceeds from the sale of capacity65
Borrowings9,1961,081
Expenditure
Operating costs(1,778)(1,281)
Payable funds for acquisitions(721)
Payments to QS reinsurers(1,918)(550)
Acquisition of LLVs(10,859)(4,858)
Transfers to Funds at Lloyd’s(3,212)(5,818)
Tax(766)(655)
Dividends paid(219)(803)
Revolving credit facility repayment(1,094)
Share buy backs(202)
Closing balance9,7171,078