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

2020 £’0002019 £’000
Underwriting profit6393,261
Other income:
— fees from reinsurers334235
— corporate reinsurance recoveries(282)(357)
— goodwill on bargain purchase1,2601,707
— investment income1,575972
Total other income2,8872,557
Costs:
— pre-acquisition(92)(859)
— stop loss costs(1,097)(200)
— operating costs(2,001)(2,332)
Total costs(3,190)(3,391)
— Operating profit/(loss) before impairments of goodwill and capacity3362,427
— Impairment charge – capacity1,860
— Tax(35)(233))
Profit for the year3014,054

Year to 31 December 2020

YearHelios retained capacity at 31 Dec 2020 £mPortfolio mid point forecastsHelios profits £’000
201836.1(0.3)%1,691
201931.3(2.2)%339
202030.8N/A(1,391)
639

Year to 31 December 2019

YearHelios retained capacity at 31 Dec 2019 £mPortfolio mid point forecastsHelios profits £’000
201736.2(4.8)%2,726
201821.0(3.6)%1,349
201918.3N/A(814)
3,261

Summary balance sheet

2020 £’0002019 £’000
Intangible assets31,60121,178
Funds at Lloyd’s19,71313,520
Other cash4,9613,028
Other assets12,73110,105
Total assets69,00647,831
Deferred tax6,4923,292
Borrowings4,0002,000
Other liabilities2,2226,145
Total liabilities12,71411,437
Total syndicate equity(5,743)(8,246)
Total equity50,54928,148

Cash flow

Analysis of free working capitalYear to 31 Dec 2020 £’000Year to 31 Dec 2019 £’000
Opening balance (free cash)3,0289,717
Income
Cash acquired on acquisition6322,045
Distribution of proits (net of tax retentions)1201,724
Transfers from Funds at Lloyd’s4,9014,178
Other income248178
Proceeds from the sale of capacity1,649911
Borrowings2,0002,000
Expenditure
Operating costs(2,810)(2,377)
Payments to QS reinsurers(465)
Acquisition of LLVs(6,075)(4,897)
Transfers to Funds at Lloyd’s(9,733)(1,137)
Tax(282)(833)
Dividends paid(529)
Repayment of borrowings(9,214)
Share buybacks(287)
Closing balance4,9613,028