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Helios Underwriting Acquires Lloyd's Member Advantage DCP.


20 November 2018 - UK-based insurance investor Helios Underwriting plc (LSE: HUW) has acquired Lloyd's of London limited liability member Advantage DCP Ltd., the company said.

The consideration for Advantage is between GBP 1.66m and GBP 1.91m (USD 2.46m), dependent on no deterioration from the current 2017 year of account midpoint forecast of Advantage and the final result of that year.

Helios said the consideration, which is in cash, will be payable as to GBP 450,000 at completion with the balance paid in tranches in 2019 and 2020.

The 2018 underwriting capacity of Advantage is GBP 2.3m (this compares with Helios's 2018 capacity of GBP 43m prior to this acquisition).

The maximum consideration represents a discount of 27% to the independent valuation of GBP 2.6m placed on Advantage by Humphrey's and approximately GBP 0.6m below the fair value of assets being acquired.

In addition to the Advantage transaction, Helios is continuing to pursue a number of further Lloyd's LLV acquisitions in line with its strategy.

Advantage is a limited liability member of Lloyd's. In the year ended 31 December 2017, Advantage made a loss before tax of GBP 0.2m on gross premiums written of GBP 4.3m.

Underwriting capacity with an estimated market value of GBP 0.2m has been included in the transaction.

Helios trades within the Lloyd's insurance market writing approximately GBP 45m of capacity for the 2018 account.

Country: UK

Sector: Insurance

Target: Advantage DCP Ltd

Buyer: Helios Underwriting


Deal size in USD: 2.46m

Type: Corporate Acquisition

Financing: Cash

Status: Closed

Buyer advisor: , ,


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Publication:M & A Navigator
Date:Nov 20, 2018
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