21. Helios Underwriting Plc
Profiting from Lloyd’s Market
A specialist in the Lloyd’s insurance market, Helios Underwriting Plc offers investors a unique way to tap into this historic marketplace, all from its London base. Operating in the financial services industry; specifically, as an investment vehicle for insurance underwriting. The company provides limited liability investment opportunities through its participation in a portfolio of Lloyd’s syndicates, focusing on property, casualty, marine, aviation, and reinsurance products.
Helios generates revenue through three main segments: syndicate participation, investment management, and other corporate activities. The bulk of its income comes from syndicate participation, where it invests in a diversified portfolio of Lloyd’s syndicates, earning a share of the underwriting profits and fees. These syndicates underwrite insurance and reinsurance risks, and Helios benefits from the premiums collected, minus claims and costs. The investment management segment involves managing the company’s capital, generating returns from investments in assets like bonds or equities, which are held to support underwriting activities.
Founded in 2006 as Hampden Underwriting Plc, the company rebranded to Helios Underwriting Plc in 2014 and has since focused on acquiring Limited Liability Vehicles (LLVs) to build its syndicate portfolio. Employing a small team, Helios relies on the expertise of Lloyd’s syndicates to manage underwriting risks, while its board oversees financial strategy, as detailed in its 2024 interim report. Recent leadership changes, including the executive chair stepping down in February 2025, signal a transitional phase, with a new CEO expected to steer the company forward. The company also launched a share repurchase programme in April 2025 to enhance shareholder value.
Helios benefits from the Lloyd’s market’s reputation for handling complex risks, but it faces challenges from market volatility, regulatory pressures, and competition for syndicate capacity. Its focus on uncorrelated returns and portfolio growth keeps it appealing to investors seeking diversification, though careful navigation of market cycles will be key.
Lloyd’s insurers are good diversifiers in investment portfolios and are frequently worth an investment. But not Helios. In theory, it is a good business in that in invests in only a select few syndicates within Lloyds. However, in practice it isn’t doing anything more interesting than something like Beazley or Hiscox. The problem is it is too small for it to make sense, since the central costs are too high for the investment income. One way of looking at Helios is that it is a small investment trust for insurance syndicates. As an investment trust, its management are effectively fund managers. These three ‘fund managers’ running the business paid themselves >£1.6m last year. That is an awful lot of money for the size of the investment pool. Investors would be better off sticking with large diversified Lloyd’s insurers like Beazley, which has generated far higher shareholder returns over the years than Helios.
