Helios Underwriting plc
Annual report and financial statements 2013
Helios Underwriting plc Annual report and financial statements 2013 Helios Underwriting plc provides access 
to a limited liability direct investment 
into the Lloyd’s insurance market through 
listed securities.
Our strategic objective is to underwrite 
at Lloyd’s with superior capital efficiency, 
lower risk and higher return.
 
Visit our investor website at 
www.huwplc.com for the 
latest Company news and 
announcements Annual report and financial statements 2013 | Helios Underwriting plc | 01
Corporate governance Financial statements Strategic report
Highlights
Strategic report
01 Highlights
02 Chairman’s statement
04 Chief Executive’s review
09 Lloyd’s Adviser’s report
Governance
12 Board of Directors
13 Report of the Directors
15 Corporate governance statement
16 Statement of Directors’ responsibilities
Profit/(loss) after tax (£’000)
-4%
2011 2012 2013
731
(387)
763
Operating profit/(loss) (£’000)
+88%
2011 2012 2013
1,280
(334)
681
Highlights in brief
 » Premium written during 
the period totalled £11.9m
 » Operating profit of £1,280,000
 » Profit after tax, goodwill and 
amortisation of £731,000
 » Earnings per share 8.57p
 » Net asset value increase  
to £9.8m
 » Growth in net asset value 
of 8.04%
 » Net asset value per share 
of £1.15
 » 2011 underwriting year of 
account profit return on 
capacity of 7.58%
 » Operating profit return on 
net asset value of 13.03%
 » New dividend policy of annual 
base plus specials
 » Recommended total dividend 
for this year 4.5p per share 
 » Parent Company adjusted net 
assets plus Humphrey & Co 
valuation of the Group's 
underwriting subsidiaries of 
£14.7m or £1.72 per share
Gross premium written (£’000)
+31%
11,938
7,715
9,141
2011 2012 2013
NAV per share (£)
+8p
1.15
1.01
1.07
2011 2012 2013
Financial statements
17 Independent auditors’ report
18 Consolidated income statement
19 Consolidated statement of financial position
20 Parent Company statement of financial position
21 Consolidated statement of cash flows
22 Parent Company statement of cash flows
23 Statements of changes in shareholders’ equity
24 Notes to the financial statements 
52 Registered officers and advisers 02 | Helios Underwriting plc | Annual report and financial statements 2013
Chairman’s statement
Your Board is pleased to report positive 
results for 2013 as Helios Underwriting plc 
("HUW"). We continue to enjoy a close 
association with the Hampden Group of 
companies; however, as we enter this exciting 
stage in the Company’s development we felt 
that the time was right for a more distinct 
identity under a new name. In Greek mythology, 
Helios was the sun god, the son of Hyperion, 
depicted as driving his chariot across the 
sky from east to west daily. Accordingly our 
new name emphasises our continued focus 
– to shine a light on the opportunities that 
exist within the Lloyd’s market. 
The profit after tax of £731,000 for the year 
ended 31 December 2013 compares with 
profit after tax of £763,000 for 2012. This 
result includes a net charge of £427,000 
in respect of goodwill and amortisation. 
Excluding this, the operating profit before 
tax for the year of £1,280,000 shows a 
significant improvement on 2012 (£681,000) 
and on this key measure 2013 is our best 
year to date.
Net assets have increased to £9.8m which 
equates to £1.15 per share and when the 
unamortised value of capacity is added 
back it shows a value of £1.51 per share. 
For the first time, we are pleased to have the 
ability to publish an independent valuation of 
the Group’s Limited Liability Vehicles 
("LLVs"). Humphrey & Co is the market’s 
primary provider of vendor valuations of 
LLVs. The aggregate value as at 
31 December 2013 of HUW’s subsidiaries 
owned at that date is £7.6m. When 
combined with audited adjusted net assets 
of the holding company at the same date, 
we arrive at a total valuation of HUW of 
£14.7m or £1.72 per share.
During 2013 we acquired four LLVs at what 
we believe to be attractive prices. Already in 
2014 we have made three more acquisitions 
and have identified significant scope for 
further growth.
In addition to increased underwriting, one of 
the key by-products of all these acquisitions 
was the increased exposure to their open 
years of 2011 (now closed), 2012 and 2013, 
which were at varying degrees of maturity 
at the time of purchase. While a price is paid 
for these open years, HUW benefits from 
any improvements between the acquisition 
date and closure, as well as affording us the 
opportunity to participate in future underwriting.
The total amount of premium limit purchased 
last year over the three open years was in 
excess of £11.6m. Furthermore some of 
the underwriting vehicles own significant 
Funds at Lloyd’s. They may also have other 
assets which can be invested, or if surplus 
to underwriting requirements can be 
released to fund further purchases. 
Our advisers expect that Lloyd’s, as a whole, 
will continue to trade profitably in most years. 
Despite increased competition in most classes 
and the expectation of lower investment 
returns we will continue to seek to achieve 
our objective of market out-performance 
through a focus on quality syndicates, 
judicious use of reinsurance and continuing 
our acquisition strategy.
A major strategic development for HUW 
during the year was the introduction of our 
50% quota share arrangement with XL Re. 
Not only does this help shape our risk/reward 
profile in a favourable direction, but the 
ability of HUW to attract a partner of the 
calibre and global scale of XL Re clearly 
reflects positively on our business, team, 
portfolio and prospects in general.
At this point, I would therefore like to thank 
Nigel for his crucial role in our achievements 
during 2013, his first full year with HUW as 
Chief Executive. His tireless efforts on behalf 
of the board and shareholders to drive the 
business forward lead me to have great 
confidence in our future prospects.
As the Group operates in the cyclical and 
volatile insurance market significant volatility 
in future results is to be expected. The Group 
manages its capital with a view to supporting 
the development of the business, including 
supporting increases in the Group’s 
underwriting through the acquisition of 
further capacity, whilst maintaining the 
required level of stability of the Group to 
provide a degree of security to shareholders. 
We continue to support the principle of a 
share buy-back policy for occasions when 
the board feels it is prudent to do so, but it 
is not currently anticipated that the buy-back 
authority will be used at this time as the Group 
continues to focus on the growth of its 
underwriting business.
The operating profit before tax for the 
year of £1,280,000 shows a significant 
improvement on 2012 and on this key 
measure 2013 is our best year to date. 
Sir Michael Oliver
Non-executive Chairman Annual report and financial statements 2013 | Helios Underwriting plc | 03
Corporate governance Financial statements Strategic report
Against the backdrop of this capital 
management policy and our significant 
progress over the past year, the Board has 
concluded that it is the right time to introduce 
the payment of a modest and sustainable 
base annual dividend, to be paid as a single 
final dividend. This base annual dividend, 
which is not expected to grow significantly, 
will be supplemented, when circumstances 
allow, by an annual special dividend which, 
when paid, will target an amount between 20% 
and 30% of cash received by the Group in 
relation to the most recently closed year of 
account, such profits normally being finalised 
and received by the Group approximately 
30 months following the end of the relevant 
calendar year. Payment of any special dividend 
will be dependent on the performance of the 
Group’s underlying business, any business 
requirements resulting from major market 
events in the intervening period, and on 
opportunities for growth through the 
acquisition of additional capacity. 
The Board is pleased to recommend a 
maiden final dividend for 2013 of 1.5p 
per share together with a special dividend 
of 3.0p per share payable to shareholders 
on the register on 6 June 2014. Both are 
subject to shareholder approval at the AGM. 
The special dividend equates to approximately 
20% of the £1.3m cash released from the 
2011 year of account net of Hampden 
Agencies’ fees and profit commission, 
including the cash released from the three 
acquisitions completed in 2014 from which 
HUW will benefit. These dividends amount 
to an aggregate payment of £384,000. 
If approved, it is expected that the final and 
special dividend will be paid to shareholders 
as a single payment on 4 July 2014.
 
Sir Michael Oliver
Non-executive Chairman
22 May 2014
The Board is pleased to recommend 
a maiden final dividend for 2013 of 
1.5p per share together with a special 
dividend of 3.0p per share. 
Sir Michael Oliver
Non-executive Chairman
Chairman’s statement continued 04 | Helios Underwriting plc | Annual report and financial statements 2013
HUW's aggregate current and historic quarterly progression of 
mid-point estimates (%)
20
Return on premium limit (%)
15
10
5
0
-5
2012 YOA
Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12
2011 YOA 2010 YOA 2009 YOA 2008 YOA
Chief Executive’s review
The 2011 underwriting year of account 
which closed at 31 December 2013 
performed well, producing a profit of 
£1,207,000, compared to a profit of 
£401,000 for the 2010 year of account 
at 31 December 2012. This represents 
a profit of 7.58% on 2011 capacity 
(Lloyd’s overall market result was 4.02%) 
compared to a profit of 2.55% for the 
2010 account which was 0.06% above 
the Lloyd’s market average result of 
2.49%. The 2012 year of account is 
estimated to outperform Lloyd’s with a 
profit of 7.51% at the mid-point estimate 
(Lloyd’s 5.61%). As you will note from the 
chart, the final result typically represents 
an improvement over the initial estimates.
Our combined ratio for 2013 was 
a creditable 83.5% on this key 
measure, our best result to date.
Nigel Hanbury
Chief Executive
Highlights
 » 2011 year of account produced 
a profit of £1,207,000, 
representing a profit of 
7.58% on 2011 capacity
 » We ended the year with 
approximately 75% of our 
capacity supporting syndicates 
rated either A or B by 
Hampden Agencies Limited 
 » Helios Underwriting's 
combined ratio strongly 
outperformed both the Lloyd's 
market and a peer group of 
eleven competing companies
 » Our two largest classes 
of business remain 
reinsurance and US dollar 
property insurance
 » New dividend policy of annual 
base plus specials
 » Recommended total dividend 
for this year 4.5p per share
Source: 
HUW & Lloyd's Stock exchange estimates 
at 2013 Q4 Result before member's agent's 
charges as a percentage of capacity
Helios Underwriting’s 2011 account 
result and 2012 account estimate (%)
� HUW 
� Lloyd's
4.02
7.58
5.61
7.51
2011 2012 
Est Annual report and financial statements 2013 | Helios Underwriting plc | 05
Corporate governance Financial statements Strategic report Strategic report
Chief Executive’s review continued
A complete set of published estimates is not 
available for the 2013 year of account until 
the end of May 2014, however, we have 
already received estimates accounting for 
57% of HUW’s capacity averaging a 6.1% 
mid-point profit. Hampden Agencies retains 
its forecast of a profit in the range of 2.5% 
to 7.5% for the 2013 account for Hampden 
Agencies clients on average. 
The traditional method for comparing the 
performance of competing insurance business 
is an analysis of the combined ratio, which is 
the sum of net claims and expenses divided 
by net earned premiums. The combined ratio 
of HUW’s portfolio for 2013 was a creditable 
83.5% on this key measure, our best result to 
date, with the underwriting result benefiting 
from a benign year for catastrophe losses. 
HUW strongly outperformed both the Lloyd’s 
market combined ratio of 86.8% and a peer 
group of eleven competing insurance and 
reinsurance companies whose average 
combined ratio was 93.4%.
Net tangible assets per share fell marginally 
by 4% during 2013, principally as a result 
of the four acquisitions made in the year. 
Year end net tangible assets were £6.897m 
with the balance of Lloyd’s minimum capital 
requirement in November 2013 of £11.088m 
being supplied by Letters of Credit from 
quota share reinsurance capital providers 
from which we benefit from both a fee and 
profit commission. 
Our strategic objective is to underwrite at 
Lloyd’s with superior capital efficiency, lower 
risk and higher return. Our quota share 
agreement with XL Re released over £4m 
from our Funds at Lloyd’s ("FAL") to provide 
a modest war chest and during the year we 
acquired over £5m of underwriting capacity 
for the 2014 year of account through a 
series of transactions. We continue to see 
a strengthening flow of vehicles for sale at 
attractive prices. This is partly due to the 
age profile of the investor population, some 
of whom may wish to take profits after a 
long run of favourable results combined 
with tax benefits for those that wish to 
sell as going concerns. The two charts 
show how our capacity and underwriting 
profits by year of account have grown 
through our acquisitions to date.
The quota share has also improved our  
risk/reward ratio since we retain the earnings 
for the more certain underwriting years prior 
to 2013. I am pleased to report that the 
agreement has been renewed for the 2014 
account. Increasing our scale has also 
allowed us to negotiate our fees with some 
of our advisers and while some of the terms 
have a delayed effect they will significantly 
improve results over time.
2.0
1.5
1.0
0.5
0
2008 2009 2010 2011 2012
Underwriting year of account
Growth in profits by year of account through acquisitions (£m)
20
15
10
5
0
2008 2009 2010 2011 2012 2013 2014
Underwriting year of account
 
Growth in premium capacity through acquisitions (£m)
Combined ratio compared with Lloyd’s and peer group: 2009–2013 (%)
Source: 
Lloyd's – Lloyd's pro forma Financial Statements December 2013
Peer group – Lloyd's 2013 year-end analyst presentation, formed of eleven companies operating in the US, European 
and Bermudian markets
86.1
96.7
88.5
93.3
102.1
97.5
106.8
105.7
104.6
91.1
96.7
89.6
86.8
93.4
83.5
2009 2010 2011 2012 2013
� HUW 
� Lloyd's
�  Peer group  
of Lloyd's
� Start of year 
Acquired
� 2008
� 2009
� 2010
� 2011
� 2012
� 2013
� Start of year 
Acquired
� 2008
� 2009
� 2010
� 2011
� 2012
� 2013 06 | Helios Underwriting plc | Annual report and financial statements 2013
Top ten syndicates for 2014
Syndicate Managing agent
2014
Syndicate
capacity
£'000s
2014 HUW 
portfolio
capacity
 £'000s
2014 HUW 
portfolio
 % of total Largest class
510 RJ Kiln & Co. Ltd 1,064,220 2,442 13.5 US$ property
2791 Managing Agency Partners Ltd 453,213 2,304 12.7 Reinsurance
623 Beazley Furlonge Ltd 243,000 1,976 10.9 US$ Non-marine liability
609 Atrium Underwriters Ltd 420,229 1,848 10.2 Energy
33 Hiscox Syndicates Ltd 1,000,000 1,397 7.7 Reinsurance
6111 Catlin Underwriting Agencies Ltd 106,000 992 5.5 US$ property
6117 Asta Managing Agents Ltd 58,000 868 4.8 Reinsurance
2014 Pembroke Managing Agency Ltd 74,967 845 4.7 Reinsurance
218 ERS Syndicate Management Ltd 437,624 803 4.4 Motor
6104 Hiscox Syndicates Ltd 72,104 748 4.1 Reinsurance
Subtotal 14,223 78.5 
Total 2014 HUW portfolio 18,133 100.0 
Source: 2014 Syndicate capacities sourced from Moody's
Chief Executive’s review continued
Classes of business for 2014
Helios Underwriting’s portfolio for 2014 
continues to provide a good spread of 
business across managing agents and 
classes of business with motor and 
liability providing a balance to the 
catastrophe exposed reinsurance and 
property business, as well as contributing 
through diversification to lower capital 
requirements. The two largest classes 
of business remain reinsurance and 
US dollar property insurance.
We continue to actively increase our 
exposure to higher quality syndicates and 
ended the year with approximately 75% 
of our capacity supporting syndicates 
rated either A (superior) or B (above 
average) by Hampden Agencies. HUW’s 
portfolio for 2014 continues to provide a 
good spread of business across 
managing agents and classes of 
business. 25.6% of the capacity is in the 
three syndicates rated “A” by Hampden 
Agencies, being Syndicates 386, 609 and 
2791, with Kiln Syndicate 510 being the 
largest holding at 13.6% of capacity. The 
top ten syndicates comprise 78.5% of 
the portfolio. Two new syndicates were 
joined for 2014. The chart demonstrates 
how we have steadily improved our 
focus on our core six syndicate 
holdings whilst still maintaining 
appropriate diversification.
US$ liability 8.6%
Non-US$ liability 7.2%
Motor 5.3%
Energy 6.4%
Marine general 6.5%
Pecuniary loss 3.6%
Aviation 3.0%
Accident and health 3.5%
30.9% Reinsurance
16.0% US$ property
Non-US$ property 9.0%
% of total gross 
premiums
D 0.0%
A 25.6%
C 24.6%
B 49.8%
% of total  
capacity Annual report and financial statements 2013 | Helios Underwriting plc | 07
Corporate governance Financial statements Strategic report Strategic report
A focussed quality portfolio with diversification (%)
16
41
19
45
13
53
11
58
7
63
65
5
5
61
2008 2009 2010 2011 2012 2013 2014
� Largest six portfolio Syndicate holdings 
� Smallest six portfolio Syndicate holdings
Overall percentage 
of the HUW portfolio (%)
Chief Executive’s review continued
We welcome Paul Lumbis to the management 
team. Paul joined us on a consultancy basis 
in July 2013 and has since been appointed 
as Group Chief Financial Officer. Paul’s 
financial acumen, his expertise in the world 
of corporate finance and long association 
with the insurance markets equips him 
extremely well to be of significant value 
as we continue to grow.
As we have grown we have also improved 
the infrastructure supporting the day to day 
functioning of the Company. In March this 
year we announced the appointment of 
Westhouse Securities Limited as the 
Company’s broker. We have also appointed 
a new Group Company Secretary and 
retained Haggie Partners to provide public 
relations support. Smith & Williamson 
Corporate Finance Limited continue to act 
as our nominated adviser, with Hampden 
Group continuing to provide back office 
support and Hampden Agencies acting as 
our members’ agent and Lloyd’s adviser, 
as well as providing syndicate research. 
With continued significant opportunities for 
growth ahead, we are pleased to have the 
support of a broader advisory team, all of 
whom have extensive expertise and 
experience in the Lloyd’s market.
A by-product of the worsening conditions in 
the reinsurance market is that some traditional 
reinsurance products are now once again 
available on terms acceptable to HUW. 
We will investigate whether we wish to avail 
ourselves of such opportunities with a view 
to further increasing our capital efficiency.
Our investment strategy announced last 
year remains unchanged with the majority 
of our portfolio being split roughly half in 
the CF Ruffer Total Return Fund and the 
CF Ruffer Absolute Return Fund (both 
managed by Ruffer LLP) and half in the 
Trojan Fund (managed by Troy Asset 
Management Limited). The amount invested 
has reduced significantly as a result of the 
investment in acquisitions but over the 
period the total return from the two funds 
has been 3.4% which has significantly 
beaten cash. 
The investment of these assets gives the 
shareholder the ability to obtain an investment 
return as well as a return from taking 
underwriting risk. Over many years this 
double use of assets has been one of the 
attractions of investing at Lloyd’s.
Principal risks and uncertainties
The principal risks and uncertainties to the 
Group’s future cash flows will arise from the 
Group’s participation in the results of Lloyd’s 
syndicates. These risks and uncertainties are 
mostly managed by the syndicate managing 
agents. The Group’s role in managing these 
risks and uncertainties, in conjunction with 
Hampden Agencies Limited, is limited to 
a selection of syndicate participations, 
monitoring the performance of the syndicates 
and the purchase of appropriate member 
level reinsurance.
With effect from the 2013 year of account, the 
Group benefits from a strategic collateralised 
quota share arrangement with XL Re for 50% 
of its business. The Group anticipates this 
being a strategic long-term relationship. 
However, the contract is annually renewable 
and the Group has a contingency plan in 
place in the event of non-renewal under 
both normal and adverse market conditions.
Further information on risk management 
is disclosed in Note 3 to the Financial 
Statements.
2013 has been a transformational year for HUW . We have 
redefined our strategy, refined our portfolio of existing 
syndicates, launched a 50% quota share with XL Re, made 
further acquisitions, implemented a new investment policy 
and strengthened the management and advisory teams. 
We look forward to the future with great enthusiasm.
Nigel Hanbury
Chief Executive 08 | Helios Underwriting plc | Annual report and financial statements 2013
Chief Executive’s review continued
Corporate, social and 
environmental responsibility
The Group aims to meet the expectations 
of its shareholders and other stakeholders 
in recognising, measuring and managing 
the impacts of its business activities. The 
majority of the Group’s business activities 
are carried out by the syndicates in which 
activities, including employment of syndicate 
staff, are the responsibility of the syndicate 
managing agents. Each managing agent 
also has responsibility for the environmental 
activities of each syndicate although, by 
their nature, syndicates do not produce 
significant environmental emissions.
For the reasons described above, the Board 
of Directors does not consider it appropriate 
to monitor or report any performance indicators 
in relation to corporate, social or 
environmental matters.
Outlook
The underwriting environment in 2014 continues to be challenging. Opportunities remain, 
however, particularly for higher quality syndicates, not least in the more effective purchase 
of better priced outward reinsurance, but also for nimble underwriting to exploit the more 
profitable niche classes for which Lloyd’s has such a well earned reputation. HUW’s 
strategy and business model is based on backing the best underwriters and syndicates 
as we seek out-performance of the average market experience. We will continue to explore 
options for making capital available for acquisitions, both through further potential quota 
share arrangements and through other capital raising alternatives.
In summary, 2013 has been a transformational year for HUW. Over the past 12 months, 
we have redefined our strategy, refined our portfolio of existing syndicates, launched a 
50% quota share with XL Re, made further acquisitions, implemented a new investment 
policy and strengthened the management and advisory teams. We look forward to the 
future with great enthusiasm.
Nigel Hanbury
Chief Executive
22 May 2014
Excluding XL Re quota share reinsurance
Source: 2014 Syndicate Business Forecasts
Realistic disaster scenarios – gross and net reinsurance (%)
68.7
32.2
69.5
30.4
64.3
27.0
60.2
26.9
49.1
26.2
57.6
25.8
54.4
23.1
34.9
20.3
31.9
18.0
27.8
16.5
Two events –  
NE 
windstorm
Gulf of 
Mexico 
windstorm
Florida 
windstorm 
– Pinellas
San 
Francisco 
earthquake
Two events 
– Carolina 
windstorm
Los Angeles 
earthquake
Florida 
windstorm 
– Miami
European 
windstorm
New Madrid 
earthquake
Japanese 
earthquake
�  Final net loss as 
percentage of 2014 
gross stamp premiums
�  Final gross loss as 
percentage of 2014 
gross stamp premiums
Principal risks and uncertainties 
continued
The two major risks faced by insurers and 
reinsurers are deficient loss reserves and 
inadequate pricing, which, taken together, 
account for 43.4% of insurer impairments 
according to A M Best. The pricing cycle is 
easier to identify in real time. The reserving 
cycle is more difficult to identify in real time 
as typically reserving standards slip after a 
period of reserve releases and there is a lag 
before this is recognized. HUW approaches 
the management of portfolio risk by diversifying 
across classes of business, syndicates and 
managing agents and with the advice of 
Hampden Agencies understanding the cycle 
management and reserving strategy of each 
syndicate as well as the rate environment. 
We also assess the downside in the event of 
a major loss through monitoring the aggregate 
losses estimated by managing agents to 
realistic disaster scenarios (RDS’s). Risk is 
assessed in the context of potential return 
with catastrophe exposure being actively 
managed dependent on market conditions.
The RDS events comprise 14 compulsory 
events including a Florida hurricane, 
Californian earthquake and Japanese 
earthquake, together with six scenarios 
subject to de minimis reporting of the more 
difficult to model liability or political risk 
scenarios. The largest losses modelled for 
2014 remain $125bn for a Florida windstorm 
in both Miami Dade and Pinellas. The largest 
earthquake loss modelled remains in 
California with a $78bn industry loss for 
both Los Angeles and San Francisco. 
HUW’s largest modelled exposures net of 
reinsurance as a percentage of gross premiums 
are similar for 2014 compared with 2013. 
The largest for 2014 is the larger of Two 
Windstorm Events consisting of a North-East 
US hurricane, immediately followed by a 
South Carolina hurricane at 32.2% of gross 
premium, net of reinsurance (29.7% in 
2013). The next largest is the Gulf of Mexico 
windstorm at 30.4% net (28.9% in 2013). 
Apart from the larger of Two Windstorm 
Events all RDS exposures as a percentage 
of gross premium remain for all scenarios 
within the 30% net of reinsurance Hampden 
Agencies guidelines. Annual report and financial statements 2013 | Helios Underwriting plc | 09
Corporate governance Financial statements Strategic report Strategic report
2013 major losses at Lloyd’s were £873m 
(15 year average: £1,572m)
According to the latest Swiss Re Sigma study, 
issued in March 2014, insured losses from 
natural catastrophes and man-made disasters 
in 2013 were around $45bn compared with 
$81bn in 2012. Major insured losses in 2013 
were just under the ten year average of 
$48bn a year at 2012 prices. 
The most costly insured losses in 2013 were 
the flooding in June affecting central and 
eastern Europe costing $4.1bn, and hailstorm 
Andreas in Germany and France costing 
$3.8bn the following month. Floods in Canada 
in June 2013 cost $1.9bn while a deadly 
tornado in Moore, Oklahoma, in May 2013 
is estimated to have cost $1.8bn in insured 
claims, the most from a single weather event 
in the US in 2013. The largest loss of life was 
from Typhoon Haiyan in the Philippines in 
November, where 7,500 died or went missing 
but insured losses were modest at $1.5bn 
compared with $12.5bn of economic losses. 
As a market, 2013 was a benign year for 
catastrophes with Lloyd’s net ultimate claims 
at 31 December 2013 estimated at £873m 
(£1.8bn in 2012), which is significantly below 
the 15 year average of £1.572bn and a 
significant reduction on the record claims 
suffered in 2011 of £4.7bn. 
US property/casualty industry made its 
first underwriting profit in 2013 since 2007
The underwriting results of the US property/
casualty insurance industry improved in 
2013 with the first underwriting profit being 
declared since 2007, benefiting from 
reduced catastrophe losses and increasing 
rates. Net insured losses from catastrophes 
fell to $14.1bn from $33.1bn in 2012. Net 
gains from underwriting were $15.5bn 
compared with net losses the previous year 
of $15.4bn. Net investment gains (income 
and realised capital gains) enabled an improved 
overall net profit after tax of $63.8bn compared 
with $35.1bn in 2012. The return on average 
policyholders’ surplus was 10.3%, its highest 
level since the 12.4% return in 2007.
Capital levels ended 2013 at record 
highs for both insurers and reinsurers
Capital levels at year end 2013 were again 
at record highs for both insurers and reinsurers. 
At Lloyd’s total net resources increased by 
4% in 2013 to a record £21.2bn with the 
solvency surplus improving marginally to a 
record £3.1bn. The policyholders’ surplus of 
the US property/casualty industry, a proxy 
for underwriting capacity, grew by 11.3% 
($66.3bn) in 2013 to a record $653.3bn. 
Reinsurance capital also grew, but by a 
more modest 7% ($35bn) to a record 
$540bn at year end 2013, according 
to reinsurance broker Aon Benfield. 
Influx of alternative capital 
adds to record capital
During 2013, industry capital was boosted 
by improved operating results, in part driven 
by a sharp fall in insured losses from natural 
catastrophes and man-made disasters. The 
most significant trend to affect the reinsurance 
market in 2012/2013 was the growing supply 
of alternative capital which is both a threat 
and an opportunity to the traditional 
reinsurance equity backed model. Alternative 
capital may be used as quasi capital by the 
reinsurance industry but may also compete 
with traditional equity backed reinsurance 
companies. Investor interest has been 
generated from a wide range of sources 
including pension funds, life assurers, 
endowments and high net worth family trusts. 
Reinsurance broker Guy Carpenter estimates 
that between January 2012 and December 
2013 approximately $15bn of new capital 
has entered the reinsurance market and 
now provides total alternative capital of 
$45bn or 15% of global property 
reinsurance limits. 
Insurance industry has become more 
disciplined at deploying its capital
Historically, the industry has on average 
been unsuccessful in controlling the supply 
of capacity, which has contributed to cyclical 
downturns benefiting policyholders rather 
than shareholders. In recent years, a number 
of companies have shown a willingness to 
return excess capital to shareholders through 
share buy backs or special dividends, 
demonstrating a focus on shareholder value 
and mitigating the pressure to deploy excess 
capital by writing additional business, which 
is likely to be under-priced. 
Demand – positive signs continue 
for US insurance marketplace
Insurance demand, measured by premium, 
has grown over the long term, being linked 
to growth in GDP and levels of insurance 
penetration. During the great recession of 
2007–2009 US net written insurance premiums 
fell by an aggregate 6.8% the first three year 
decline since 1930–1933. Growth in overall 
net premiums, a proxy for demand, accelerated 
in the US to 4.6% in 2013 from 4.3% in 2012. 
Premium growth in Q4 2013 was the 15th 
consecutive quarter of growth with average 
commercial lines rates up for the tenth 
consecutive quarter. However, reinsurance 
demand has been adversely affected at 
1 January 2014 by the trend of major 
insurance groups to retain more premium 
volume and risk on their own growing 
balance sheets, according to Willis Re.
The demand component has been boosted 
by a combination of increasing premium 
rates and the recovering US economy 
contributing to organic growth. Encouragingly, 
net written premium has now overtaken its 
previous peak in 2006. While demand for 
insurance continues to be impacted by 
sluggish economic conditions, the benefits 
of even slow growth will compound over 
time. US real GDP growth was 1.8% in 
2011, 2.2% in 2012 and 1.9% in 2013.
Organic growth opportunities which would 
ordinarily use up surplus capital have been 
limited in this cycle with GDP growth, whether 
measured in nominal or real terms, being 
the slowest of any expansion since 1948. 
The economy’s capacity utilisation is still 
below pre-recession levels with the US 
operating at 79.2% of industrial capacity 
in December 2013, although well above 
the June 2009 low of 66.9%. 
Lloyd’s is well placed to take advantage 
of an improving excess and surplus lines 
(E&S) segment of the US insurance market. 
In 2012, according to AM Best, Lloyd’s had 
an 18.0% (18.6% in 2011) share of the US 
E&S market with its next biggest competitor 
being AIG with 14.5% (17.2% in 2011). 
Lloyd’s total E&S premium grew by 10% 
from $5.7bn in 2011 to $6.3bn in 2012, 
benefiting from a combination of GDP 
growth and an increased flow of business 
as admitted carriers moved away from 
underwriting more difficult risks. 
Lloyd’s Adviser’s report 10 | Helios Underwriting plc | Annual report and financial statements 2013
Lloyd’s Adviser’s report continued
The investment environment
The investment environment remains critical 
in order to understand the insurance industry, 
both from a balance sheet perspective 
(the asset side) and from a profit and loss 
perspective. In an era of low inflation and 
low interest rates, the only way for an insurer 
to make an acceptable return on equity for 
its investors is to make an underwriting profit 
and repay surplus capital to shareholders. 
At previous cycle turning points, premium 
rates have turned up due to capital being 
depleted either through a period of reserve 
deteriorations or through significant “market 
changing” catastrophe losses. In this cycle, 
the upturn in US insurance rates has begun 
without either of these factors being present. 
In our view, the principal reason for the upturn 
in US insurance rates is the investment 
environment of low interest rates with the 
US Federal Reserve actively signalling that it 
is determined to keep interest rates low until 
unemployment drops below 6.5% or until 
inflation expectations exceed 2.5%. 
Even with the recent rises in interest rates, 
the treasury yield curve remains close to its 
most depressed level in at least 45 years. 
A US Treasury five year bond bought at a 
yield of 1.55% on 31 December 2008 on 
reinvestment on 31 December 2013 would 
only yield 1.75%. The significance of this is 
not lost on insurance company management 
who realise that combined ratios must be 
lower in today’s depressed investment 
environment to generate a risk appropriate 
return on equity. In 2012, the Insurance 
Information Institute calculated that a 
combined ratio of about 100%, i.e. a break 
even underwriting result, would generate 
a return on equity of around 7% which 
compares with 10% in 2005 and 16% in 
1979 for the same 100% combined ratio.
The investment component of the return 
on equity by line of business is particularly 
important in capital intensive lines such as 
reinsurance, or casualty business where 
claims may not be paid out for a number 
of years. Apart from controlling expenses 
the main way for insurance company 
management to compensate for this “lost 
investment income” is to encourage their 
underwriters to put rates up. 
The trend in declining yields from 2007 can be 
seen in the chart below which shows both the 
two year and five year US Treasury from 2005 
to May 2013. As of 30 April 2014 the two year 
is yielding 0.42% and the five year 1.69%.
Rating – 2013 was a tale of two halves in reinsurance – momentum slows down for US reinsurance
The principal driver of underwriting profitability 
is the level of premium rates combined with 
policy terms and conditions. 
The surge in alternative reinsurance capital 
supplied by third party investors had a 
greater-than-expected impact at the 
mid-year 2013 renewals, particularly for Florida, 
with Guy Carpenter reporting 15% rate 
reductions while loss-free US property 
catastrophe programmes decreased by 
between 12.5% and 30% at 1 July. The 
mid-year renewals were in marked contrast 
to the stable rates seen earlier in the year. 
The weighted average rate change for US 
property catastrophe reinsurance business in 
2013 was approximately 7%. Rate reductions 
continued at the 1 January 2014 US renewals 
averaging 15% (9% compared with 1 January 
2013 rates) with competition being spurred 
by the absence of a major hurricane in 2013. 
Rate reductions continued at the 1 April 2014 
renewals which comprise the entire Japanese 
market and a few large US programmes. 
Willis Re estimated that excess of loss 
covers for Japanese earthquake risks fell by 
12.5% to 17.5% with typhoon rates falling 
by 10% to 15%. US premiums paid by 
nationwide insurers fell by 10% to 20% 
for catastrophe loss-free accounts and by 
up to 10% for loss-hit renewals. In addition, 
terms and conditions have begun to be 
relaxed and multi-year contracts offered.
The impact of terms and conditions on 
prospective underwriting return is much 
more difficult to measure than that of rate. 
It is only after a loss that the impact of a 
broadening of cover is fully appreciated. 
The 1 January 2014 renewal season brought 
signs that underwriters are now prepared to 
broaden cover and increasingly offer multi-year 
contracts, expansion of hours clauses, less 
punitive reinstatement provisions and expanded 
coverage for terrorism, cyber and workers’ 
compensation risk have been mentioned. 
Willis Re comments that “experienced 
reinsurers will remember that the relaxation 
of terms and conditions more so than price 
reduction caused the real damage in the last 
soft market cycle”. However, while rate 
using Guy Carpenter’s rate on line index for 
US business is 20% down on the average 
between 2006 and 2013 at 1 January 2014, 
it is still 14% above rates in 2005.
6
Yield (%)
5
4
3
2
1
0
3 January
2005
3 January
2006
3 January
2007
3 January
2008
3 January
2009
3 January
2010
3 January
2011
3 January
2012
3 January
2013
3 January
2014
Two year
Five year
US treasury bond yields  Annual report and financial statements 2013 | Helios Underwriting plc | 11
Corporate governance Financial statements Strategic report Strategic report
Lloyd’s Adviser’s report continued
In contrast, we are now seeing a sustained 
upturn in property and casualty insurance 
rates in the United States, which does not 
suffer from the ease of entry of alternative 
sources of capital seen in the reinsurance 
sector. After nearly eight years of decreases, 
the first increase we saw was in the third 
quarter of 2011 and by the first quarter of 
2013 rate increases had accelerated to 5.2% 
using data supplied by the Council of Insurance 
Agents and Brokers, the largest increase 
since 2003. Rate increases moderated over 
the course of 2013, to 4.3% at Q2, to 3.4% 
at Q3 and to 2.1% at Q4. This has continued 
in 2014 with rates increasing by 1.5% in 
Q1 2014. 
Going forward, the US insurance pricing 
cycle, given the absence of reserve 
deteriorations from the prior years at a 
market aggregate level, may prove more 
muted than in the past. 
The implications for a more muted pricing 
cycle are that the upward trend in rates could 
slow down further or potentially come to an 
end during 2014. Already we have seen rates 
reduce for larger insurance risks such as 
energy, large property and aviation. Outside 
of the US, rate competition has returned to 
the UK motor market following the introduction 
of new legislation implemented in July 2013 
with rates for comprehensive private car 
business falling by 14.1% in the twelve months 
to December 2013, according to the AA. In 
the first quarter of 2014 rates private car 
comprehensive rates fell a further 5.6%.
Insurance broker Marsh reports that global 
insurance rates, as tracked by the Marsh 
Risk Management Global Insurance Index, 
continued their downward trend in the fourth 
quarter of 2013. The only exception to the 
global trend was the US where the composite 
index showed a modest increase for the 
eighth consecutive quarter. 
At an aggregate level, industry results and 
Lloyd’s results continued to benefit from 
favourable prior year releases which are 
proving to be more persistent and higher 
than was envisaged even twelve months 
ago. This evidence suggests that the 
insurance industry is better at using 
technology, historical data and modelling to 
price new business and estimate losses, 
which should inherently translate into more 
stable profitability and pricing cycles.
Prospects for 2014
Our formal profit target for the 2014 account 
(assuming an average year for catastrophe 
losses) is a range of 0% to 7.5% on capacity, 
for the average Hampden client, which is 
lower than the 2.5% to 7.5% we set for the 
2013 account in September 2012, and reflects, 
in the main, the softening of reinsurance rates. 
We expect rate increases to continue in 2014 
for small and medium US property and casualty 
accounts but at a lower level of increase than 
seen in 2013. Risks to this expectation are 
if there is renewed economic weakness 
affecting demand compared with the current 
moderate GDP growth or if rate competition 
were to increase in part due to reductions 
in reinsurance pricing. 
Overall we estimate that rates will reduce 
by 4.1% in 2014, which compares with our 
initial estimate of a reduction of 2.3% on 
average. Further reductions in reinsurance 
rates are expected in July following on 
from the reductions at mid-year in 2013, 
1 January 2014 and the reductions at 
1 January, 1 April, and 1 June 2014. 
Since 2006 US reinsurance rates have been 
amongst the most attractive of any class of 
business and have made a significant 
contribution to Lloyd’s profitability in this 
period. Despite rate reductions, there 
remains a reasonable technical margin 
on US business, albeit not the exceptional 
margin experienced between 2006 and 
2009. The influx of alternative capital is not 
only squeezing margins on reinsurance 
business but also leading to pressure on 
signings and therefore adding to the potential 
for reduced income. The traditional reinsurance 
market has also responded to increasing 
competition by relaxing policy terms and 
conditions as well as being prepared to 
enter multi-year contracts. Due to reinsurance 
rate reductions, the balance of risk and reward 
on US business is beginning to shift from 
net sellers of reinsurance to net buyers 
of reinsurance.
Despite our continued optimism on the rate 
outlook for US insurance business, additional 
capital is being deployed by Berkshire 
Hathaway with its entry into the US excess 
and surplus lines market and its participation 
on 7.5% of Aon’s retail placements with 
Lloyd’s participation. Both moves have the 
potential to impact margins negatively in 
2014 and beyond. The effect should be 
mitigated by Berkshire Hathaway’s reputation 
for pricing discipline. As the reinsurance 
market softens more reinsurers are expected 
to follow Berkshire Hathaway’s lead by 
allocating capital to insurance operations. 
The strategic report on pages 1 to 11 
was approved by the Board of Directors 
and signed on behalf of the Board on 
22 May 2014.
Nigel Hanbury
Chief Executive 12 | Helios Underwriting plc | Annual report and financial statements 2013
Board of Directors
Sir James Michael Yorrick Oliver, aged 73
(Non-executive Chairman)
Sir Michael Oliver has been chairman and 
director of a number of investment funds. 
He was previously a director of investment 
funds at Hill Samuel Asset Management and 
of Scottish Widows Investment Partnership 
Limited. Prior to that he was a partner in 
stockbrokers Kitkat & Aitken for 20 years 
and subsequently managing director of 
Carr, Kitkat & Aitken.
Nigel John Hanbury, aged 57
(Chief Executive)
Nigel Hanbury joined Lloyd’s in 1979 as an 
external member and became a Lloyd’s broker 
in 1982. He later moved to the members’ 
agency side latterly becoming Chief Executive 
and then Chairman of Hampden Agencies Limited. 
He serves on the board of the Association 
of Lloyd’s Members and was elected to the 
Council of Lloyd’s for the “Working Names” 
constituency twice, serving on that body between 
1999 and 2001 and then 2005 to 2008, as well 
as participating on the Market Board and other 
Lloyd’ s committees. In December 2009 he ceased 
being Chairman of Hampden Agencies Limited 
but in 2011 acquired a majority stake in HIPCC, 
a Guernsey insurance and protected cell 
Company, formerly wholly owned by 
Hampden Capital plc.
Jeremy Richard Holt Evans, aged 56
(Non-executive Director)
Jeremy Evans joined Minories Underwriting 
Agencies in 1993, which was subsequently 
transferred to Aberdeen Underwriting Advisers 
Limited, with specific responsibility for its 
corporate capital plans, including the 
development of a conversion scheme for 
existing members. He is the CEO of Nomina 
plc as well as being a director of Hampden 
Capital plc and Hampden Holdings Limited.
Harold Michael Clunie Cunningham, 
aged 66
(Non-executive Director) 
Michael Cunningham has worked in the 
investment management business for over 
25 years. Within Rathbones he was an 
investment director with responsibility for 
the AIM focused Venture Capital Trusts. 
He is non-executive chairman of 
Hazel Renewable Energy VCT PLC.
Andrew Hildred Christie,  
aged 58 (appointed 8 July 2013)
(Non-executive Director) 
Andrew Christie is a founding partner of corporate 
finance advisory firm Smith Square Partners LLP 
and has nearly 30 years’ experience in corporate 
finance. Prior to Smith Square Partners, he was 
a managing director in the investment banking 
division of Credit Suisse Europe and prior to 
that he was head of investment banking in 
Asia Pacific for Credit Suisse First Boston 
and Barclays de Zoete Wedd. Andrew is 
a non-executive director of FTSE 250 
company Elementis plc. Corporate governance Strategic report
Annual report and financial statements 2013 | Helios Underwriting plc | 13
Financial statements
Report of the Directors • Y ear ended 31 December 2013
The Directors present their report and the audited Group Financial Statements for the year ended 31 December 2013.
Change of name
The Company changed its name from Hampden Underwriting plc to Helios Underwriting plc on 22 January 2014.
Principal activities, review of the business and future developments
The Company’s principal activity is to provide a limited liability investment for its shareholders in the Lloyd’s 
insurance market.
The Group participates in the Lloyd’s insurance market through its participation in a portfolio of Lloyd’s syndicates.
A more detailed review of the business for the year and outlook for the future are included in the Chairman’s 
Statement, the Chief Executive’s Review and the Lloyd’s Adviser’s Report.
Results and dividends
The Group result for the year ended 31 December 2013 is shown in the Consolidated Income Statement. 
The Group profit for the year after taxation was £731,000 (2012: £763,000).
No dividend was paid during calendar year in 2013 (2012: £nil).
The new dividend policy is set-out in the Chairman’s report and further information is set-out in “Future Dividends” 
in Note 24.
Charitable and political donations
During the year, the Group made no political or charitable donations.
Directors and their interests
Under the Articles of Association one Director is required to retire from the Board by rotation at the forthcoming 
Annual General Meeting and offer themselves for re-election as a Director. Sir Michael Oliver therefore retires by 
rotation and offers himself for re-election as a Director. Andrew Christie, a new Director during the year, is required 
to retire from the Board and offer himself for re-election as a Director.
Policy and practice on the payment of creditors
It is the Group’s policy to:
 » agree the terms of payment at the commencement of business with suppliers;
 » ensure that suppliers are aware of the terms of payment; and
 » pay in accordance with contractual and other legal obligations.
The number of days’ purchases outstanding at 31 December 2013 is nil (2012: nil).
Substantial shareholdings
The substantial shareholders shown below were as at 5 May 2014:
Number 
of shares % holdings
Nigel John Hanbury (either personally or has an interest in) 1,261,257 14.79%
Lynchwood Nominees Limited 1,095,000 12.84%
Hampden Capital plc 1,014,560 11.89%
Roy Nominees Limited 717,500 8.41%
Ferlim Nominees Limited 589,875 6.92%
In addition the following current TR-1 notifications have been received detailing shareholdings in excess of 3%.
Shareholding
% of issued 
share capital
Smith & Williamson Nominees Limited 785,724 9.21%
Investec Wealth & Investment Limited 609,875 7.15% 14 | Helios Underwriting plc | Annual report and financial statements 2013
Report of the Directors continued • Y ear ended 31 December 2013
Disclosure of information to auditors 
The Directors who held office at the date of approval of the Report of the Directors confirm that, so far as they are 
individually aware, there is no relevant audit information of which the auditors are unaware and each Director has 
taken all steps that they ought to have taken as Directors to make themselves aware of any relevant audit information 
and to establish that the auditors are aware of that information.
Auditors and the Annual Report
PKF Littlejohn LLP , formerly Littlejohn LLP , have signified their willingness to continue in office as auditors.
A resolution to reappoint PKF Littlejohn LLP as auditors will be put to the members at the next Annual General 
Meeting to be convened at which the Annual Report will be laid before the members for consideration.
Approved by the Board of Directors and signed on behalf of the Board on 22 May 2014.
Nigel Hanbury
Chief Executive
22 May 2014 Corporate governance Strategic report
Annual report and financial statements 2013 | Helios Underwriting plc | 15
Financial statements
Corporate governance statement • Y ear ended 31 December 2013
The Company’s shares are traded on the AIM Market of the London Stock Exchange. The Company is not required 
to report on compliance with the UK Corporate Governance Code (“the Code”), the Board of Directors acknowledges 
the importance of the principles of the code and also the recommendations of the Quoted Companies Alliance in 
its publication “Corporate Governance Guidelines for Small and Mid-size Quoted Companies” and seeks to apply 
them as appropriate to the Company given its nature and size. 
Board
The Board is responsible for formulating, reviewing and approving the Company’s strategy, budgets and corporate 
actions. The Company holds Board meetings at least four times each financial year and at other times as and 
when required.
Committees
The Audit Committee of the Company, comprising Michael Cunningham and Andrew Christie (both Non-executive 
Directors), is chaired by Andrew Christie. The Audit Committee is responsible for ensuring that the Group’s financial 
performance is properly monitored, controlled and reported. It also meets the auditors and reviews reports from 
the auditors relating to the accounting and internal control systems. The Audit Committee meets once a year 
with the auditors.
The Company established a Nomination and Remuneration Committee during the year comprising Sir Michael Oliver, 
Michael Cunningham and Andrew Christie (all Non-executive Directors), chaired by Michael Cunningham. Other 
than its Chief Executive, the Company has no employees.
The Company has adopted a model code for Directors’ dealings which is appropriate for an AIM quoted company. 
The Directors will comply with Rule 21 of the AIM Rules relating to Directors’ dealings. 
Board and committee meeting attendance
Board Audit Committee
Director
Possible 
number of 
meetings
Number 
of meetings
 attended
Possible 
number of 
meetings
Number 
of meetings
 attended
Sir Michael Oliver 6 6 — —
Nigel Hanbury 6 6 — —
Andrew Leslie (resigned 27 June 2013) 4 3 1 1
Jeremy Evans 6 6 — —
Michael Cunningham 6 5 2 2
Andrew Christie (appointed 8 July 2013) 2 2 1 1
Average attendance (%) 93% 100%
Subsidiary Board and committees
Jeremy Evans, Nigel Hanbury and Nomina plc are directors of the following subsidiary companies:
Jeremy Evans
(appointed)
Nigel Hanbury
(appointed)
Nomina plc
(appointed)
Hampden Corporate Member Limited 31 May 2006 18 February 2013 31 May 2006
Nameco (No. 365) Limited 1 November 2001 18 February 2013 22 September 1999
Nameco (No. 605) Limited 1 November 2001 18 February 2013 25 September 2001
Nameco (No. 321) Limited 1 November 2001 18 February 2013 22 September 1999
Nameco (No. 917) Limited 9 January 2013 18 February 2013 17 September 2004
Nameco (No. 229) Limited 1 November 2001 21 November 2012 24 September 1998
Nameco (No. 518) Limited 1 November 2001 27 November 2012 20 September 2000
Nameco (No. 804) Limited 10 October 2003 16 October 2013 10 October 2003
Halperin Limited 20 February 2014 20 December 2013 9 July 2004
Helios UTG Partner Limited 27 August 2013 Not a director 27 August 2013
Conflict management
Jeremy Evans was a director of Hampden Agencies Limited until December 2007 and remains a director of Nomina plc 
as well as of the Company. Sir Michael Oliver was a director and Jeremy Evans is a director of Hampden Capital plc, 
which owns 100% of Hampden Agencies Limited and 99% of Nomina plc. The Articles of Association of the Company 
provide that neither Director will vote in respect of arrangements relating to Hampden Agencies Limited’s appointment 
as the Group’s members’ agent or to Nomina plc’s appointment as provider of administrative and support services 
or any other arrangements or contracts where Hampden Agencies Limited or Nomina plc has an interest.  16 | Helios Underwriting plc | Annual report and financial statements 2013
Statement of Directors’ responsibilities • Y ear ended 31 December 2013
The Directors are responsible for preparing the Strategic Report, Report of the Directors and the Financial Statements 
in accordance with applicable law and regulations.
Company law requires the Directors to prepare Financial Statements for each financial year. Under that law the 
Directors have elected to prepare the Group and Parent Company Financial Statements in accordance with International 
Financial Reporting Standards (“IFRS”) as adopted by the European Union. Under company law the Directors must not 
approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of 
the Group and Company and of the profit or loss of the Group for that period. In preparing these Financial 
Statements, the Directors are required to:
 » select suitable accounting policies and then apply them consistently; 
 » make judgements and accounting estimates that are reasonable and prudent; and
 » state whether IFRS, adopted by the European Union have been followed, subject to any material departures 
disclosed and explained in the Financial Statements.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 
Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Group and 
Company and enable them to ensure that the Financial Statements comply with the Companies Act 2006. They are 
also responsible for safeguarding the assets of the Group and Company and hence for taking reasonable steps for 
the prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included 
on the Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of the 
Financial Statements may differ from legislation in other jurisdictions.  Corporate governance Strategic report
Annual report and financial statements 2013 | Helios Underwriting plc | 17
Financial statements
Independent auditors’ report • To the members of Helios Underwriting plc
We have audited the Financial Statements of Helios Underwriting plc for the year ended 31 December 2013 which 
comprise the Consolidated Income Statement, the Consolidated and Parent Company Statements of Financial 
Position, the Consolidated and Parent Company Statements of Cash Flow, the Consolidated and Parent Company 
Statements of Changes in Shareholders’ Equity and the related notes. The financial reporting framework that has 
been applied in their preparation is applicable law and International Financial Reporting Standards (“IFRSs”) as 
adopted by the European Union and, as regards the Parent Company Financial Statements, as applied in 
accordance with the provisions of the Companies Act 2006.
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the 
Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members 
those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent 
permitted by law, we do not accept or assume responsibility to anyone, other than the Company and the Company’s 
members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and auditors
As explained more fully in the Statement of Directors’ Responsibilities, the Directors are responsible for the preparation 
of the Financial Statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and 
express an opinion on the Financial Statements in accordance with applicable law and International Standards on Auditing 
(UK and Ireland). Those standards require us to comply with the Auditing Practices Board’ s Ethical Standards for Auditors.
Scope of the audit of the Financial Statements
An audit involves obtaining evidence about the amounts and disclosures in the Financial Statements sufficient to give 
reasonable assurance that the Financial Statements are free from material misstatement, whether caused by fraud 
or error. This includes an assessment of: whether the accounting policies are appropriate to the Group and Company’s 
circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant 
accounting estimates made by Directors; and the overall presentation of the Financial Statements. In addition, we 
read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the 
audited Financial Statements and to identify any information that is apparently materially incorrect based on, or 
materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become 
aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on Financial Statements
In our opinion:
 » the Financial Statements give a true and fair view of the state of the Group’s and of the Parent Company’s affairs 
as at 31 December 2013 and of the Group’s profit for the year then ended;
 » the Group Financial Statements have been properly prepared in accordance with IFRSs as adopted by the 
European Union;
 » the Parent Company Financial Statements have been properly prepared in accordance with IFRSs as adopted by 
the European Union and as applied in accordance with the provisions of the Companies Act 2006; and
 » the Financial Statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Strategic Report and Report of the Directors for the financial year for 
which the Financial Statements are prepared is consistent with the Financial Statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to 
you if, in our opinion:
 » adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have 
not been received from branches not visited by us; or
 » the Parent Company Financial Statements are not in agreement with the accounting records and returns; or
 » certain disclosures of Directors’ remuneration specified by law are not made; or
 » we have not received all the information and explanations we require for our audit.
Ian Cowan (Senior statutory auditor)  1 Westferry Circus
For and on behalf of PKF Littlejohn LLP Canary Wharf
Statutory auditor London E14 4HD
22 May 2014
Independent auditors’ report • To the members of Helios Underwriting plc 18 | Helios Underwriting plc | Annual report and financial statements 2013
 
Note
Year ended
31 December
2013
£’000
Year ended
31 December
2012
£’000
Gross premium written 11,938 9,141
Reinsurance premium ceded (2,251) (1,820)
Net premium written 9,687 7,321
Change in unearned gross premium provision (29) (405)
Change in unearned reinsurance premium provision 43 52
6 14 (353)
Net earned premium 9,701 6,968
Net investment income 7 208 429
Revenue 9,909 7,397
Gross claims paid (5,867) (4,685)
Reinsurers’ share of gross claims paid 1,134 930
Claims paid, net of reinsurance (4,733) (3,755)
Change in provision for gross claims 1,148 229
Reinsurers’ share of change in provision for gross claims (478) 24
Net change in provision for claims 6 670 253
Net insurance claims and loss adjustment expenses (4,063) (3,502)
Expenses incurred in insurance activities (4,042) (2,743)
Other operating expenses (524) (471)
Operating expenses (4,566) (3,214)
Operating profit before goodwill and amortisation 5 1,280 681
Goodwill on bargain purchase 19 133 568
Impairment of goodwill 19 (98) (81)
Amortisation of syndicate capacity 12 (462) (314)
Profit before tax 8 853 854
Income tax charge 9 (122) (91)
Profit attributable to equity shareholders 18 731 763
Earnings per share attributable to equity shareholders
Basic and diluted 10 8.57p 9.92p
The profit attributable to equity shareholders and earnings per share set out above are in respect of continuing operations.
The accounting policies and notes are an integral part of these Financial Statements.
Consolidated income statement • Y ear ended 31 December 2013 Corporate governance Strategic report
Annual report and financial statements 2013 | Helios Underwriting plc | 19
Financial statements
Consolidated statement of financial position • At 31 December 2013
 
Note
Year ended
31 December
2013
£’000
Year ended
31 December
2012
£’000
Assets
Intangible assets 12 2,929 1,797
Reinsurance assets:
– reinsurers’ share of claims outstanding 6 4,154 4,323
– reinsurers’ share of unearned premium 6 800 590
Other receivables, including insurance receivables 14 11,554 9,343
Prepayments and accrued income 1,569 1,216
Financial assets at fair value 15 22,213 20,978
Cash and cash equivalents 1,066 1,444
Total assets 44,285 39,691
Liabilities
Insurance liabilities:
– claims outstanding 6 21,596 19,814
– unearned premium 6 5,968 4,624
Deferred income tax liabilities 13 1,656 938
Other payables, including insurance payables 16 4,116 4,589
Accruals and deferred income 1,123 631
Total liabilities 34,459 30,596
Shareholders’ equity
Share capital 17 853 853
Share premium 17 6,996 6,996
Retained earnings 18 1,977 1,246
Total shareholders’ equity 9,826 9,095
Total liabilities and shareholders’ equity 44,285 39,691
The accounting policies and notes are an integral part of these Financial Statements.
Approved and authorised for issue by the Board of Directors on 22 May 2014.
Nigel Hanbury
Chief Executive 20 | Helios Underwriting plc | Annual report and financial statements 2013
Parent Company statement of financial position • At 31 December 2013
Note
31 December
2013
£’000
31 December
2012
£’000
Assets
Financial investments 15 6,032 3,261
Other receivables 14 5,290 7,350
Cash and cash equivalents 22 11
Total assets 11,344 10,622
Liabilities
Other payables 16 182 59
Total liabilities 182 59
Shareholders’ equity
Share capital 17 853 853
Share premium 17 6,996 6,996
Retained earnings 18 3,313 2,714
Total shareholders’ equity 11,162 10,563
Total liabilities and shareholders’ equity 11,344 10,622
The accounting policies and notes are an integral part of these Financial Statements.
Approved and authorised for issue by the Board of Directors on 22 May 2014.
Nigel Hanbury Company number 05892671 
Chief Executive Corporate governance Strategic report
Annual report and financial statements 2013 | Helios Underwriting plc | 21
Financial statements
Consolidated statement of cash flows • Y ear ended 31 December 2013
Year ended 
31 December
2013
£’000
Year ended
31 December
2012
£’000
Cash flows from operating activities
Results of operating activities 853 854
Interest received (2) (27)
Investment income (381) (320)
Goodwill on bargain purchase (133) (568)
Impairment of goodwill 98 81
Loss on sale of intangible assets 8 1
Amortisation of intangible assets 462 314
Income tax paid (86) (179)
Change in fair value of investments 137 (128)
Changes in working capital:
– decrease in other receivables 2,687 2,225
– decrease in other payables (1,336) (1,044)
– net decrease in technical provisions (3,273) (2,991)
Net cash outflow from operating activities (966) (1,782)
Cash flows from investing activities
Interest received 2 27
Investment income 381 320
Purchase of intangible assets (3) (218)
Proceeds from disposal of intangible assets 2 51
Net inflow of financial assets at fair value 3,276 854
Acquisition of subsidiaries, net of cash acquired (3,070) (828)
Net cash inflow from investing activities 588 206
Net decrease in cash and cash equivalents (378) (1,576)
Cash and cash equivalents at beginning of year 1,444 3,020
Cash and cash equivalents at end of year 1,066 1,444
The accounting policies and notes are an integral part of these Financial Statements.
Cash held within the syndicates accounts is £980,000 (2012: £747,000) of the total cash and cash equivalents held 
at the year end of £1,066,000 (2012: £1,444,000). The cash held within the syndicates’ accounts is not available to 
the Group to meet its day to day working capital requirements. 22 | Helios Underwriting plc | Annual report and financial statements 2013
Year ended 
31 December
2013
£’000
Year ended
31 December
2012
£’000
Cash flows from operating activities
Results of operating activities 546 1,795
Interest received — (25)
Dividend received (3,559) (2,100)
Impairment of financial investments 2,441 —
Change in fair value of investments 4 —
Changes in working capital:
– decrease in other receivables 1 3
– increase in other payables 123 3
Net cash outflow from operating activities (444) (324)
Cash flows from investing activities
Interest received — 25
Dividend received 3,559 2,100
Purchase of subsidiary undertakings (5,216) (1,380)
Amounts owed by subsidiary undertakings 2,112 (2,873)
Net cash inflow/(outflow) from investing activities 455 (2,128)
Net increase/(decrease) in cash and cash equivalents 11 (2,452)
Cash and cash equivalents at beginning of year 11 2,463
Cash and cash equivalents at end of year 22 11
The accounting policies and notes are an integral part of these Financial Statements.
Parent Company statement of cash flows • Y ear ended 31 December 2013 Corporate governance Strategic report
Annual report and financial statements 2013 | Helios Underwriting plc | 23
Financial statements
Statements of changes in shareholders’ equity • Y ear ended 31 December 2013
Attributable to owners of the parent
Consolidated
Ordinary
share capital
£’000
 Share
 premium
£’000
Retained
earnings
£’000
Total
£’000
At 1 January 2012 741 6,261 483 7,485
Share issue 112 735 — 847
Profit for the year — — 763 763
At 31 December 2012 853 6,996 1,246 9,095
At 1 January 2013 853 6,996 1,246 9,095
Profit for the year — — 731 731
At 31 December 2013 853 6,996 1,977 9,826
Company
Ordinary
share capital
£’000
 Share
 premium
£’000
Retained
earnings
£’000
Total
£’000
At 1 January 2012 741 6,261 857 7,859
Share issue 112 735 — 847
Profit for the year — — 1,857 1,857
At 31 December 2012 853 6,996 2,714 10,563
At 1 January 2013 853 6,996 2,714 10,563
Profit for the year — — 599 599
At 31 December 2013 853 6,996 3,313 11,162
The accounting policies and notes are an integral part of these Financial Statements. 24 | Helios Underwriting plc | Annual report and financial statements 2013
Notes to the financial statements • Y ear ended 31 December 2013
1. General information
The Company is a public limited company listed on AIM and incorporated and domiciled in the UK.
2. Accounting policies
The principal accounting policies adopted in the preparation of the Group and Parent Company Financial Statements 
(the “Financial Statements”) are set out below. These policies have been consistently applied to all the years 
presented, unless otherwise stated.
Basis of preparation
The Financial Statements have been prepared in accordance with International Financial Reporting Standards 
(“IFRS”) as endorsed by the European Union (“EU”), IFRIC interpretations and those parts of the Companies Act 
2006 applicable to companies reporting under IFRS. 
The Financial Statements have been prepared under the historical cost convention as modified by the revaluation of 
financial assets at fair value through profit or loss. A summary of the more important Group accounting policies is set 
out below.
The preparation of Financial Statements in conformity with IFRS requires the use of estimates and assumptions that 
affect the reported amounts of assets and liabilities at the date of the Financial Statements and the reported amounts 
of revenues and expenses during the reporting year. Although these estimates are based on management’s best 
knowledge of the amount, event or actions, actual results may ultimately differ from these estimates.
The Group participates in insurance business through its Lloyd’s member subsidiaries. Accounting information 
in respect of syndicate participations is provided by the syndicate managing agents and is reported upon by 
the syndicate auditors.
Going concern
The Group and Company have net assets at the end of the reporting period of £9,826,000 and £11,162,000 respectively.
The Company’s subsidiaries participate as underwriting members at Lloyd’s on the 2011, 2012 and 2013 years 
of account and they have continued this participation since the year end on the 2014 year of account. This underwriting 
is supported by funds at Lloyd’s totalling £4,669,000 (2012: £7,173,000), and letters of credit provided by XL Re 
through the Group’s quota share reinsurance agreement totalling £4,118,000 (2012: £nil).
The Directors have a reasonable expectation that the Group and the Company have adequate resources to meet 
their underwriting and other operational obligations for the foreseeable future. Accordingly they continue to adopt 
the going concern basis of accounting in preparing the annual Financial Statements.
International Financial Reporting Standards
The following are IFRS or IFRIC interpretations that are effective for the first time for the financial year beginning 
on or after 1 January 2013 that had a material impact on the Group’s Financial Statements.
 » Amendment to IAS 1 “Financial Statement Presentation” regarding other comprehensive income became effective 
during the period. Items in the Consolidated Income Statement that may be reclassified to profit or loss in subsequently 
periods are now presented separately from items that will not be reclassified to profit or loss in subsequent periods.
 » IFRS 13 “Fair Value Measurement” became effective during the period. The standard requires specific disclosures 
on fair values, some of which replace existing disclosure requirements in IFRS 7 “Financial Instruments: Disclosures”. 
The fair values of cash and cash equivalents, trade and other receivables and trade and other payables approximate 
to their book values due to the short maturity periods of these financial instruments. Available for sale financial assets 
consist of equity investments whose fair value is determined by reference to quoted market prices (level 1 in the 
fair value measurement hierarchy).
A number of new standards and amendments to standards and interpretations are effective for annual periods 
beginning on or after 1 January 2014 and have not been applied in preparing these Financial Statements. None 
of these are expected to have a significant effect on the Financial Statements of the Group. The Group intends 
to adopt these standards, if applicable, when they become effective.
 » IAS 27 “Separate Financial Statements”, replaces the current version of IAS 27 “Consolidated and Separate 
Financial Statements” as a result of the issue of IFRS 10. The revised standard includes the requirements relating 
to separate Financial Statements. The revised standard becomes effective for annual periods beginning on or 
after 1 January 2014.
 » IAS 28 “Investments in Associates and Joint Ventures”, replaces the current version of IAS 28 “Investments in 
Associates”, as a result of the issue of IFRS 11. The revised standard includes the requirements for associates 
and joint ventures that have to be equity accounted following the issue of IFRS 1. The Group is yet to assess 
full impact of the revised standard and intends to adopt IAS 28 (revised) no later than the accounting period 
beginning on or after 1 January 2014. Corporate governance Strategic report
Annual report and financial statements 2013 | Helios Underwriting plc | 25
Financial statements
Notes to the financial statements continued • Y ear ended 31 December 2013
2. Accounting policies continued
International Financial Reporting Standards continued
 » Amendment to IAS 19 “Defined Benefit Plans: Employee Contributions”, provides guidance added to IAS 19 
“Employee Benefits” on accounting for contributions from employees or third parties set out in the formal terms 
of a defined benefit plan. The Directors do not believe that this will have an impact on the Group, however, and 
will be adopted no later than accounting period beginning on or after 1 January 2014, subject to endorsement, 
by the EU.
 » Amendment to IAS 32 “Offsetting Financial Assets and Financial Liabilities”, adds application guidance to address 
inconsistencies identified in applying some of the criteria when offsetting financial assets and financial liabilities. 
This includes clarifying the meaning of “currently has a legally enforceable right of set-off” and that some gross 
settlement systems may be considered equivalent to net settlement. The Group is yet to assess the full impact 
of the amendment to IAS 32 and intends to adopt the amended standard no later than the accounting period 
beginning on or after 1 January 2014.
 » Amendment to IAS 36 “Recoverable Amount Disclosures for Non-Financial Assets”, to reduce the circumstances 
in which the recoverable amount of assets or cash-generating units is required to be disclosed, clarify the disclosures 
required, and to introduce an explicit requirement to disclose the discount rate used in determining impairment 
(or reversals) where recoverable amount (based on fair value less costs of disposal) is determined using a present 
value technique. The Group is yet to assess full impact of the revised standard and intends to adopt the amendment 
to IAS 36 no later than the accounting period beginning on or after 1 January 2014.
 » Amendment to IAS 39 “Novation of Derivatives and Continuation of Hedge Accounting”, make it clear that there 
is no need to discontinue hedge accounting if a hedging derivative is novated, provided certain criteria are met. 
The Group is yet to assess full impact and intends to adopt the amendment to IAS 39 no later than the accounting 
period beginning on or after 1 January 2014.
 » IFRS 9 “Financial Instruments” addresses the classification, measurement and recognition of financial assets and 
financial liabilities. IFRS 9 was issued in November 2009 and October 2010. It replaces parts of IAS 39 that relate 
to the classification and measurement of financial instruments. IFRS 9 requires financial assets to be classified into 
two measurement categories: those measured as at fair value and those measured at amortised cost. The determination 
is made at initial recognition. The classification depends on the entity’s business model for managing its financial 
instruments and the contractual cash flow characteristics for the instrument. For financial liabilities, the standard 
retains most of the IAS 39 requirements. The main change is that, in cases where the fair value option is taken for 
financial liabilities, the part of a fair value change due to an entity’ s own credit risk is recorded in other comprehensive 
income rather than the income statement, unless this creates an accounting mismatch. The Group is yet to 
assess IFRS 9’s full impact and intends to adopt IFRS 9 no later than the accounting period beginning on or after 
1 January 2014, subject to endorsement by the EU. The Group will also consider the impact of the remaining 
phases of IFRS 9 when completed by the Board.
 » IFRS 10 “Consolidated Financial Statements” builds on existing principles by identifying the concept of control 
as the determining factor in whether an entity should be included within the consolidated Financial Statements 
of the parent company. The standard provides additional guidance to assist in the determination of control 
where this is difficult to assess. The Group is yet to assess IFRS 10’s full impact and intends to adopt IFRS 10 
no later than the accounting period beginning on or after 1 January 2014.
 » IFRS 11 “Joint Arrangements” provides for a more realistic reflection of joint arrangements by focusing on the 
rights and obligations of the arrangement, rather than its legal form. There are two types of joint arrangement: 
joint operations and joint ventures. Joint operations arise where a joint operator has rights to the assets and 
obligations relating to the arrangement and therefore accounts for its share of assets, liabilities, revenue and 
expenses. Joint ventures arise where the joint venture has rights to the net assets of the arrangement and 
therefore equity accounts for its interest. Proportional consolidation of joint ventures is no longer allowed. 
The Group is yet to assess IFRS 11’s full impact and intends to adopt IFRS 11 no later than the accounting 
period beginning on or after 1 January 2014.
 » IFRS 12 “Disclosures of Interests in Other Entities” includes the disclosure requirements for all forms of interests 
in entities, including joint arrangements, associates, special purpose vehicles and other off Statement of Financial 
Position vehicles. The Group is yet to assess IFRS 12’s full impact and intends to adopt IFRS 12 no later than the 
accounting period beginning on or after 1 January 2014. 26 | Helios Underwriting plc | Annual report and financial statements 2013
Notes to the financial statements continued • Y ear ended 31 December 2013
2. Accounting policies continued
International Financial Reporting Standards continued
 » Amendments to IFRS 10 “Consolidated Financial Statements”, IFRS 11 “Joint Arrangements” and IFRS 12 
“Disclosure of Interests in Other Entities” clarify the IASB’s intention when first issuing the transition guidance 
in IFRS 10, provide similar relief in IFRS 11 and IFRS 12 from the presentation or adjustment of comparative 
information for periods prior to the immediately preceding period, and provide additional transition relief by 
eliminating the requirement to present comparatives for the disclosures relating to unconsolidated structured 
entities for any period before the first annual period for which IFRS 12 is applied. The Group plans to adopt 
these amendments no later than the annual period beginning on or after 1 January 2014.
 » Amendments to IFRS 10 “Consolidated Financial Statements”, IFRS 12 “Disclosure of Interests in Other Entities” 
and IAS 27, “Separate Financial Statements”, provide “investment entities” (as defined) an exemption from the 
consolidation of particular subsidiaries and instead require that an investment entity measure the investment 
in each eligible subsidiary at fair value through profit or loss in accordance with IFRS 9 Financial Instruments 
or IAS 39 “Financial Instruments: Recognition and Measurement”. The Group is yet to assess the full impact 
of these amendments and intends to adopt the amended standards no later than the accounting period 
beginning on or after 1 January 2014.
 » IFRIC 21 “Levies” provides guidance on when to recognise a liability for a levy imposed by a government, both 
for levies that are accounted for in accordance with IAS 37 “Provisions, Contingent Liabilities and Contingent 
Assets” and those where the timing and amount of levy is certain. It provides the following guidance on 
recognition of a liability to pay levies:
 » the liability is recognised progressively if the obligating event occurs over a period of time; and
 » if an obligation is triggered on reaching a minimum threshold, the liability is recognised when that minimum 
threshold is reached.
  The Group is yet to assess the full impact and intends to adopt the standard no later than the accounting period 
beginning on or after 1 January 2014, subject to endorsement by the EU.
“Annual Improvements 2010–2012 Cycle” sets out amendments to various IFRS and provides a vehicle for making 
non-urgent but necessary amendments to IFRS: 
 » IFRS 2 “Share-based Payment”: amendment to the definition of a vesting condition;
 » IFRS 3 “Business Combinations”: amendments to the accounting for contingent consideration 
in a business combination;
 » IFRS 8 “Operating Segments”: amendments to the aggregation of operating segments and the reconciliation 
of the total of the reportable segments’ assets to the entity’s assets;
 » IFRS 13 “Fair Value Measurement”: amendments to short-term receivables and payables;
 » IAS 16 “Property, Plant and Equipment”: amendments to the revaluation method in relation to the 
proportionate restatement of accumulated depreciation;
 » IAS 24 “Related Party Disclosures”: amendments regarding key management personnel; and
 » IAS 38 “Intangible Assets”: amendments to the revaluation method in relation to the proportionate 
restatement of accumulated depreciation.
The Group intends to adopt the amended standards no later than the annual period beginning on or after 1 July 2014, 
subject to EU endorsement.
“Annual Improvements 2011–2013 Cycle” sets out amendments to various IFRS and provides a vehicle for making 
non-urgent but necessary amendments to IFRS: 
 » IFRS 1 “First-time Adoption of International Financial Reporting Standards”: amendment to the meaning 
of “effective IFRSs”;
 » IFRS 3 “Business Combinations”: amendments to the scope exceptions for joint ventures;
 » IFRS 13 “Fair Value Measurement”: amendments to the scope of paragraph 52 (portfolio exception); and
 » IAS 40 “Investment Property”: amendments clarifying the interrelationship between IFRS 3 and IAS 40 
when classifying property as investment property or owner-occupied property.
The Group intends to adopt the amended standards no later than the annual period beginning on or after 1 July 2014, 
subject to EU endorsement. Corporate governance Strategic report
Annual report and financial statements 2013 | Helios Underwriting plc | 27
Financial statements
Notes to the financial statements continued • Y ear ended 31 December 2013
2. Accounting policies continued
Consolidation
The Financial Statements incorporate the Financial Statements of Helios Underwriting plc, Hampden Corporate Member 
Limited, Nameco (No. 365) Limited, Nameco (No. 605) Limited, Nameco (No. 321) Limited, Nameco (No. 917) Limited, 
Nameco (No. 229) Limited, Nameco (No. 518) Limited, Nameco (No. 804) Limited, Halperin Limited, Nomina No 035 LLP , 
Nomina No 342 LLP and Helios UTG Partner Limited.
The Financial Statements of Hampden Corporate Member Limited, Nameco (No. 365) Limited, Nameco (No. 605) Limited, 
Nameco (No. 321) Limited, Nameco (No. 917) Limited, Nameco (No. 229) Limited, Nameco (No. 518) Limited, 
Nameco (No. 804) Limited, Halperin Limited, Nomina No 035 LLP and Nomina No 342 LLP (“Limited Liability Vehicles”) 
and Helios UTG Partner Limited are prepared for the year ended 31 December 2013. Consolidation adjustments are 
made to convert the subsidiary Financial Statements prepared under UK GAAP to IFRS so as to align accounting 
policies and treatments.
Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. 
Unrealised losses are also eliminated unless the transaction provides evidence of impairment of the asset transferred.
No Income Statement is presented for Helios Underwriting plc as permitted by Section 408 of the Companies Act 
2006. The profit after tax for the year of the Parent Company was £599,000 (2012: £1,857,000).
Underwriting
Premiums
Gross premium written comprise the total premiums receivable in respect of business incepted during the year, 
together with any differences between booked premiums for prior years and those previously accrued, and include 
estimates of premiums due but not yet receivable or notified to the syndicates on which the Group participates, less 
an allowance for cancellations. All premiums are shown gross of commission payable to intermediaries and exclude 
taxes and duties levied on them.
Unearned premiums
Gross premium written are earned according to the risk profile of the policy. Unearned premiums represent the proportion 
of gross premium written in the year that relate to unexpired terms of policies in force at the end of the reporting period 
calculated on a time apportionment basis having regard, where appropriate, to the incidence of risk. The specific 
basis adopted by each syndicate is determined by the relevant managing agent.
Deferred acquisition costs
Acquisition costs, which represent commission and other related expenses, are deferred over the period in which 
the related premiums are earned.
Reinsurance premiums
Reinsurance premium costs are allocated by the managing agent of each syndicate to reflect the protection 
arranged in respect of the business written and earned.
Reinsurance premium costs in respect of reinsurance purchased directly by the Group are charged or credited 
based on the annual accounting result for each year of account protected by the reinsurance.
Claims incurred and reinsurers’ share
Claims incurred comprise claims and settlement expenses (both internal and external) occurring in the year and 
changes in the provisions for outstanding claims, including provisions for claims incurred but not reported (“IBNR”) 
and settlement expenses, together with any other adjustments to claims from previous years. Where applicable, 
deductions are made for salvage and other recoveries.
The provision for claims outstanding comprises amounts set aside for claims notified and IBNR. The amount included 
in respect of IBNR is based on statistical techniques of estimation applied by each syndicate’s in-house reserving 
team and reviewed, in certain cases, by external consulting actuaries. These techniques generally involve projecting 
from past experience the development of claims over time to form a view of the likely ultimate claims to be experienced 
for more recent underwriting, having regard to variations in the business accepted and the underlying terms and 
conditions. The provision for claims also includes amounts in respect of internal and external claims handling costs. 
For the most recent years, where a high degree of volatility arises from projections, estimates may be based in part 
on output from rating and other models of the business accepted and assessments of underwriting conditions.
The reinsurers’ share of provisions for claims is based on calculated amounts of outstanding claims and projections 
for IBNR, net of estimated irrecoverable amounts, having regard to each syndicate’s reinsurance programme in place 
for the class of business, the claims experience for the year and the current security rating of the reinsurance 
companies involved. Each syndicate uses a number of statistical techniques to assist in making these estimates. 28 | Helios Underwriting plc | Annual report and financial statements 2013
Notes to the financial statements continued • Y ear ended 31 December 2013
2. Accounting policies continued
Underwriting continued
Claims incurred and reinsurers’ share continued
Accordingly the two most critical assumptions made by each syndicate’s managing agent as regards claims provisions 
are that the past is a reasonable predictor of the likely level of claims development and that the rating and other models 
used, including pricing models for recent business, are reasonable indicators of the likely level of ultimate claims to 
be incurred.
The level of uncertainty with regard to the estimations within these provisions generally decreases with time since the 
underlying contracts were exposed to new risks. In addition the nature of short-tail claims such as property where claims 
are typically notified and settled within a short period of time will normally have less uncertainty after a few years than 
long-tail risks such as some liability business where it may be several years before claims are fully advised and settled. 
In addition to these factors if there are disputes regarding coverage under policies or changes in the relevant law 
regarding a claim this may increase the uncertainty in the estimation of the outcomes.
The assessment of these provisions is usually the most subjective aspect of an insurer’s accounts and may result 
in greater uncertainty within an insurer’s accounts than within those of many other businesses. The provisions for 
gross claims and related reinsurance recoveries have been assessed on the basis of the information currently available 
to the directors of each syndicate’s managing agent. However, ultimate liability will vary as a result of subsequent 
information and events and this may result in significant adjustments to the amounts provided. Adjustments to the 
amounts of claims provisions established in prior years are reflected in the Financial Statements for the period in which 
the adjustments are made. The provisions are not discounted for the investment earnings that may be expected to 
arise in the future on the funds retained to meet the future liabilities. The methods used, and the estimates made, 
are reviewed regularly.
Quota share reinsurance
Under the Group’s quota share reinsurance agreement, 50% of the 2013 underwriting year of account insurance 
exposure is ceded to the reinsurer. Amounts payable to the reinsurer are included within ‘reinsurance premium ceded’ 
in the Consolidated Income Statement. Amounts receivable from the reinsurer and included within ‘reinsurers share 
of gross claims paid’ in the Consolidated Income Statement.
Unexpired risks provision
Provisions for unexpired risks are made where the costs of outstanding claims, related expenses and deferred acquisition 
costs are expected to exceed the unearned premium provision carried forward at the end of the reporting period. 
The provision for unexpired risks is calculated separately by reference to classes of business that are managed 
together, after taking into account relevant investment return. The provision is made on a syndicate-by-syndicate 
basis by the relevant managing agent.
Closed years of account
At the end of the third year, the underwriting account is normally closed by reinsurance into the following year of 
account. The amount of the reinsurance to close premium payable is determined by the managing agent, generally 
by estimating the cost of claims notified but not settled at 31 December, together with the estimated cost of claims 
incurred but not reported at that date and an estimate of future claims handling costs. Any subsequent variation 
in the ultimate liabilities of the closed year of account is borne by the underwriting year into which it is reinsured.
The payment of a reinsurance to close premium does not eliminate the liability of the closed year for outstanding 
claims. If the reinsuring syndicate were unable to meet any obligations, and the other elements of Lloyd’s chain 
of security were to fail, then the closed underwriting account would have to settle any outstanding claims.
The Directors consider that the likelihood of such a failure of the reinsurance to close is extremely remote and 
consequently the reinsurance to close has been deemed to settle the liabilities outstanding at the closure of an 
underwriting account. The Group will include its share of the reinsurance to close premiums payable as technical 
provisions at the end of the current period and no further provision is made for any potential variation in the ultimate 
liability of that year of account. Corporate governance Strategic report
Annual report and financial statements 2013 | Helios Underwriting plc | 29
Financial statements
Notes to the financial statements continued • Y ear ended 31 December 2013
2. Accounting policies continued
Underwriting continued
Run-off years of account
Where an underwriting year of account is not closed at the end of the third year (a “run-off” year of account) a provision 
is made for the estimated cost of all known and unknown outstanding liabilities of that year. The provision is determined 
initially by the managing agent on a similar basis to the reinsurance to close. However, any subsequent variation in the 
ultimate liabilities for that year remains with the corporate member participating therein. As a result any run-off year 
will continue to report movements in its results after the third year until such time as it secures a reinsurance to close.
Net operating expenses (including acquisition costs)
Net operating expenses include acquisition costs, profit and loss on exchange and other amounts incurred by the 
syndicates on which the Group participates.
Acquisition costs, comprising commission and other costs related to the acquisition of new insurance contracts, 
are deferred to the extent that they are attributable to premiums unearned at the end of the reporting period.
Foreign currency translation
Items included in the Financial Statements of each of the Group’s entities are measured using the currency of the 
primary economic environment in which the entity operates (the “functional currency”). The Financial Statements 
are presented in thousands of pounds sterling, which is the Group’s functional and presentational currency.
Foreign currency transactions and non-monetary assets and liabilities, including deferred acquisition costs and 
unearned premiums, are translated into the functional currency using monthly average rates of exchange prevailing 
at the time of the transaction as a proxy for the transactional rates. The translation difference arising on non-monetary 
asset items is recognised in the Consolidated Income Statement.
Monetary items are translated at period-end rates; any exchange differences arising from the change in rates 
of exchange are recognised in the Consolidated Income Statement.
Investments
Investments in marketable securities are stated at their bid-market value at the end of the reporting period. 
The Group values its financial assets at fair value through the Consolidated Income Statement.
Purchases and sales of investments are recognised on the trade date, which is the date the Group commits 
to purchase or sell the assets.
Intangible assets
Intangible assets, which represents costs incurred in the Corporation of Lloyd’s auctions in order to acquire rights to 
participate on syndicates’ years of account, are stated at cost, less any provision for impairment, and amortised on 
a straight line basis over the useful economic life, which is estimated to be seven years. No amortisation is charged 
until the following year when underwriting commences in respect of the purchased syndicate participation.
Investment in subsidiaries
Subsidiaries are entities over which the Group has the power to govern the financial and operating policies generally 
accompanying a shareholding or partnership participation of more than one half of the voting rights. The existence 
and effect of potential voting rights that are currently exercisable or convertible are considered when assessing 
whether the Group controls another entity. 
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. 
In the Company’s Financial Statements, investments in subsidiary undertakings are stated at cost and are reviewed 
for impairment annually or when events or changes in circumstances indicate the carrying value to be impaired.
The Group uses the acquisition method of accounting to account for the acquisition of subsidiaries. The cost of an 
acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed 
at the date of exchange. 
The excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net assets acquired 
is capitalised and recorded as goodwill. Following initial recognition goodwill is measured at cost less accumulated 
impairment losses. Goodwill is tested for impairment annually or if events or changes in circumstances indicate that 
the carrying value may be impaired and recognised directly in the consolidated income statement. If the cost of acquisition 
is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the consolidated 
income statement. Intra-group transactions, balances and unrealised gains on intra-group transactions are eliminated. 
Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.  30 | Helios Underwriting plc | Annual report and financial statements 2013
Notes to the financial statements continued • Y ear ended 31 December 2013
2. Accounting policies continued
Cash and cash equivalents
For the purposes of the statement of cash flows, cash and cash equivalents comprise cash at bank.
Investment income
Interest receivable from cash and short-term deposits and interest payable are accrued to the end of the period.
Syndicate investments and cash are held on a pooled basis, the return from which is allocated by the relevant 
managing agent to years of account proportionately to the funds contributed by the year of account.
Dividend distribution policy
Dividend distribution to the Company’s shareholders is recognised as a liability in the Group’s Financial Statements 
in the period in which the dividends are approved by the Company’s shareholders.
Other operating expenses
All expenses are accounted for on an accruals basis.
Financial assets
The Group classifies its financial assets in the following categories: at fair value through profit and loss and other 
loans and receivables. The classification depends on the purpose for which the financial assets were acquired. 
Management determines the classification of its financial assets at initial recognition. The Group does not make 
use of the held to maturity and available for sale classifications.
(a) Financial assets at fair value through profit and loss 
All financial assets are designated as fair value through profit and loss upon initial recognition because they are managed 
and their performance is evaluated on a fair value basis. Information about these financial assets is provided internally 
on a fair value basis to the Group’s key management. The Group’s investment strategy is to invest and evaluate their 
performance with reference to their fair values. Assets in this category are classified as current assets if expected to 
be settled with 12 months, otherwise they are classified as non-current.
(b) Other loans and receivables
Other loans and receivables are non-derivative financial assets with fixed or determinable payments that are not 
quoted in an active market. Other loans and receivables are carried at amortised cost less any impairment losses.
Fair value estimation
The fair value of financial instruments traded in active markets is based on quoted market prices at the end of the 
reporting period. A market is regarded as active if quoted prices are readily and regularly available from an exchange, 
dealer, broker, industry group, pricing service or regulatory agency and those prices represent actual and regular occurring 
market transactions on an arm’s length basis. The quoted market price used for financial assets held by the Group 
is the current bid price.
The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. 
These valuation techniques maximise the use of observable market data where it is available and rely as little as possible 
on entity-specific estimates.
The fair values of short-term deposits are assumed to approximate to their book values. The fair values of the 
Group’s debt securities have been based on quoted market prices for these instruments. 
Deferred taxation
Deferred tax is provided in full, using the balance sheet liability method, on temporary differences arising between 
the tax bases of assets and liabilities and their carrying amounts in the Financial Statements. 
However, if the deferred tax arises from initial recognition of an asset or liability in a transaction other than a business 
combination that at the time of the transaction affects neither accounting nor taxable profit or loss, it is not accounted for. 
Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of 
the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred 
income tax liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against 
which the temporary differences can be utilised.
Segmental reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating 
decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing 
performance of the operating segments, has been identified as Nigel Hanbury. Corporate governance Strategic report
Annual report and financial statements 2013 | Helios Underwriting plc | 31
Financial statements
Notes to the financial statements continued • Y ear ended 31 December 2013
3. Risk management
The majority of the risks to the Group’s future cash flows arise from each subsidiary’s participation in the results of 
Lloyd’s syndicates. As detailed below, these risks are mostly managed by the managing agents of the syndicates. 
The Group’s role in managing this risk, in conjunction with its subsidiaries and members’ agent, is limited to selection 
of syndicate participations and monitoring performance of the syndicates and the purchase of appropriate member 
level reinsurance.
Syndicate risks
The syndicates’ activities expose them to a variety of financial and non-financial risks. The managing agent is responsible 
for managing the syndicate’s exposure to these risks and, where possible, introducing controls and procedures that 
mitigate the effects of the exposure to risk. For the purposes of setting capital requirements for the 2013 and subsequent 
years of account, Lloyd’ s introduced the Lloyd’ s Capital Return (“LCR”) which replaced the Individual Capital Assessment 
(“ICA”). Each managing agent will have prepared an LCR for the syndicate to agree capital requirements with Lloyd’s 
based on an agreed assessment of the risks impacting the syndicate’s business and the measures in place to manage 
and mitigate those risks from a quantitative and qualitative perspective. The risks described below are typically reflected in 
the LCR and typically the majority of the total assessed value of the risks concerned is attributable to insurance risk.
The insurance risks faced by a syndicate include the occurrence of catastrophic events, downward pressure on 
pricing of risks, reductions in business volumes and the risk of inadequate reserving. Reinsurance risks arise from 
the risk that a reinsurer fails to meet its share of a claim. The management of the syndicate’s funds is exposed 
to investment risk, liquidity risk, credit risk, currency risk and interest rate risk leading to financial loss. The syndicate 
is also exposed to regulatory and operational risks including its ability to continue to trade. However, supervision 
by Lloyd’s and the Prudential Regulation Authority provides additional controls over the syndicate’s management 
of risks.
The Group manages the risks faced by the syndicates on which its subsidiaries participate by monitoring the performance 
of the syndicates it supports. This commences in advance of committing to support a syndicate for the following year, 
with a review of the business plan prepared for each syndicate by its managing agent. In addition quarterly reports 
and annual accounts, together with any other information made available by the managing agent, are monitored and 
if necessary enquired into. If the Group considers that the risks being run by the syndicate are excessive it will seek 
confirmation from the managing agent that adequate management of the risk is in place and if considered appropriate 
will withdraw support from the next year of account. The Group also manages its exposure to insurance risk by 
purchasing appropriate member level reinsurance.
Reinsurance risk
Reinsurance risk to the Group arises where reinsurance contracts put in place to reduce gross insurance risk do not 
perform as anticipated, result in coverage disputes or prove inadequate in terms of the vertical or horizontal limits 
purchased. Failure of a reinsurer to pay a valid claim is considered a credit risk which is detailed separately below.
The Group currently only has one reinsurance programme of its own. With effect from the 2013 year of account, 
the Group benefits from a strategic collateralised quota share arrangement in respect of 50% of its business with 
Bermudan reinsurer, XL Re Ltd (“XL Re”, part of global NYSE quoted insurer XL Group plc) through Hampden 
Insurance PCC (Guernsey) Limited Cell 6 (“Cell 6”), a special purpose vehicle.
The board examines and approves all reinsurance contracts to ensure that they possess suitable security. Hampden 
Agencies Limited, the Group’s Lloyd’s Members’ Agency, and Miller Insurance Services LLP , as the Group’s reinsurance 
broker, ensure that market standard practice is followed, undertake the administration of reinsurance contracts and 
monitor and support the Group’s response to any erosion of its reinsurance programmes. 32 | Helios Underwriting plc | Annual report and financial statements 2013
Notes to the financial statements continued • Y ear ended 31 December 2013
3. Risk management continued 
Investment, credit, liquidity and currency risks
The other significant risks faced by the Group are with regard to the investment of funds within its own custody. 
The elements of these risks are investment risk, liquidity risk, credit risk, currency risk and interest rate risk. To mitigate 
this, the surplus Group funds are deposited with highly rated banks and fund managers. The main liquidity risk would 
arise if a syndicate had inadequate liquid resources for a large claim and sought funds from the Group to meet the claim. 
In order to minimise investment, credit and liquidity risk the Group’s funds are invested in readily realisable short-term 
deposits. The Group’s maximum exposure to credit risk at 31 December 2013 is £6.8m (2012: £8.6m), being the 
aggregate of the Group’s insurance receivables, prepayments and accrued income, financial assets at fair value and 
cash and cash equivalents, excluding any amounts held in the syndicates. The syndicates can distribute their results 
in sterling, US dollars or a combination of the two. The Group is exposed to movements in the US dollar between 
the balance sheet date and the distribution of the underwriting profits and losses, which is usually in the May following 
the closure of a year of account. The Group does not use derivative instruments to manage risk and, as such, no 
hedge accounting is applied. As a result of the specific nature and structure of the Group’s collateralised quota share 
reinsurance arrangement with XL Re through Cell 6, the Group’ s Funds at Lloyd’ s calculation benefits from an aggregate 
£4.1m Letter of Credit (“LOC”) acceptable to Lloyd’s, on behalf of XL Re and from a global bank that is one of the 
primary providers of LOCs into the Lloyd’s market. This LOC is pledged in aggregate to the relevant syndicates 
through Lloyd’s and thus HUW is not specifically exposed to counter-party credit risk in this matter. Should the 
bank’s LOC become unacceptable to Lloyd’s for any reason, XL Re is responsible under the terms of the contract 
for making alternative arrangements. The contract is annually renewable and the Group has a contingency plan in 
place in the event of non-renewal under both normal and adverse market conditions.
Market risk
The Group is exposed to market and liquidity risk in respect of its holdings of syndicate participations. Lloyd’s syndicate 
participations are traded in the Lloyd’s auctions held in September and October each year. The Group is exposed to 
changes in market prices and a lack of liquidity in the trading of a particular syndicate’s capacity which could result 
in the Group making a loss compared to the carrying value when the Group disposes of particular syndicate participations.
Regulatory risks 
The Company’s subsidiaries are subject to continuing approval by Lloyd’s to be a member of a Lloyd’s syndicate. 
The risk of this approval being removed is mitigated by monitoring and fully complying with all requirements in 
relation to membership of Lloyd’s. The capital requirements to support the proposed amount of syndicate capacity 
for future years are subject to the requirements of Lloyd’s. A variety of factors are taken into account by Lloyd’s in 
setting these requirements including market conditions and syndicate performance and, although the process is 
intended to be fair and reasonable, the requirements can fluctuate from one year to the next, which may constrain 
the volume of underwriting a subsidiary of the Company is able to support. 
The Company is subject to the AIM Rules. Compliance with the AIM Rules is monitored by the Board.
Operational risks
As there are relatively few transactions actually undertaken by the Group there are only limited systems and operational 
requirements of the Group and therefore operational risks are not considered to be significant. Close involvement of 
all Directors in the Group’s key decision making and the fact that the majority of the Group’s operations are conducted 
by syndicates provide control over any remaining operational risks.
Capital management objectives, policies and approach
The Group has established the following capital management objectives, policies and approach to managing the 
risks that affect its capital position:
 » to maintain the required level of stability of the Group thereby providing a degree of security to shareholders;
 » to allocate capital efficiently and support the development of the business by ensuring that returns on capital 
employed meet the requirements of the shareholders; and
 » to maintain the financial strength to support increases in the Group’s underwriting through acquisition of capacity 
in the Lloyd’s auctions or through the acquisition of new subsidiaries.
The Group’s capital management policy is to hold a sufficient level of capital to allow the Group to take advantage of 
market conditions, particularly when insurance rates are improving and to meet the Funds at Lloyd’ s (“FAL”) requirements 
that support the corporate member subsidiaries current and future levels of underwriting. Corporate governance Strategic report
Annual report and financial statements 2013 | Helios Underwriting plc | 33
Financial statements
Notes to the financial statements continued • Y ear ended 31 December 2013
3. Risk management continued 
Approach to capital management
The capital structure of the Group consists entirely of equity attributable to equity holders of the Company, comprising 
issued share capital, share premium and retained earnings as disclosed in the Statements of changes in shareholders’ 
equity on page 23.
At 31 December 2013 the corporate member subsidiaries had an agreed FAL requirement of £11,088,000 
(2012: £7,173,000) to support their underwriting on the 2014 year of account (2013 year of account). The funds 
to support this requirement are held in short-term investment funds and deposits or provided by the quota share 
reinsurance capital providers by way of a letter of credit. The FAL requirements are formally assessed and funded 
twice yearly and must be met by the corporate member subsidiaries to continue underwriting. At 31 December 2013 
the agreed FAL requirement for the Group was 61% (2012: 56%) of the capacity for the following year of account.
4. Segmental information
The Group has three segments that represent the primary way in which the Group is managed:
 » syndicate participation;
 » investment management; and 
 » other corporate activities.
Year ended 31 December 2013
Syndicate
participation
£’000
Investment
management
£’000
Other 
corporate 
activities
£’000
Total
£’000
Net earned premium 9,723 — (22) 9,701
Net investment income 247 (39) — 208
Net insurance claims and loss adjustment expenses (4,063) — — (4,063)
Expenses incurred in insurance activities (4,042) — — (4,042)
Other operating expenses 51 — (575) (524)
Goodwill on bargain purchase — — 133 133
Impairment of goodwill — — (98) (98)
Amortisation of syndicate capacity (see Note 12) — — (462) (462)
Profit before tax 1,916 (39) (1,024) 853
Year ended 31 December 2012
Syndicate
participation
£’000
Investment
management
£’000
Other 
corporate 
activities
£’000
Total
£’000
Net earned premium 6,968 — — 6,968
Net investment income 405 24 — 429
Net insurance claims and loss adjustment expenses (3,502) — — (3,502)
Expenses incurred in insurance activities (2,743) — — (2,743)
Other operating expenses (111) — (360) (471)
Goodwill on bargain purchase — — 568 568
Impairment of goodwill — — (81) (81)
Amortisation of syndicate capacity (see Note 12) — — (314) (314)
Profit before tax 1,017 24 (187) 854
The Group does not have any geographical segments as it considers all of its activities to arise from trading within 
the UK.
No major customers exceed 10% of revenue.
Net earned premium within 2013 other corporate activities totalling £22,000 represents the 2013 underwriting year 
of account net Group quota share reinsurance premium payable to Hampden Insurance PCC (Guernsey) Limited 
– Cell 6 for Hampden Corporate Member Limited, Nameco (No. 365) Limited, Nameco (No. 605) Limited, Nameco 
(No. 321) Limited, Nameco (No. 917) Limited, Nameco (No. 229) Limited and Nameco (No. 518) Limited. This net 
quota share reinsurance premium payable is included within ‘reinsurance premium ceded’ in the Consolidated 
Income Statement. 
All of the Group’s limited liability vehicles have entered into a Group quota share reinsurance contract with Hampden 
Insurance PCC (Guernsey) Limited – Cell 6 for the 2014 underwriting year of account. 34 | Helios Underwriting plc | Annual report and financial statements 2013
Notes to the financial statements continued • Y ear ended 31 December 2013
5. Operating profit before goodwill and amortisation
Underwriting year of account*
Year ended 31 December 2013
2010 
and prior
£’000
2011
£’000
2012 
£’000
2013
£’000
Pre-
acquisition
£’000
Corporate
 reinsurance
£’000
Other
 corporate
£’000
Total
£’000
Gross premium written 13 14 1,284 13,494 (2,867) — — 11,938
Net premium written 25 (33) 1,082 11,068 (2,346) (109) — 9,687
Net earned premium 94 427 5,465 6,257 (2,433) (109) — 9,701
Net investment income — 132 53 24 (125) — 124 208
Net insurance claims and 
loss adjustment expenses 10 788 (2,172) (3,650) 961 — — (4,063)
Operating expenses (78) (481) (1,920) (2,410) 1,092 — (769) (4,566)
Operating profit before 
goodwill and amortisation 26 866 1,426 221 (505) (109) (645) 1,280
Underwriting year of account*
Year ended 31 December 2012
2009 
and prior
£’000
2010
£’000
2011 
£’000
2012
£’000
Pre-
acquisition
£’000
Corporate
 reinsurance
£’000
Other
 corporate
£’000
Total
£’000
Gross premium written — 27 1,046 10,907 (2,839) — — 9,141
Net premium written — (224) 860 8,952 (2,171) (96) — 7,321
Net earned premium — 155 3,826 5,213 (2,130) (96) — 6,968
Net investment income 5 278 94 40 (173) — 186 429
Net insurance claims and 
loss adjustment expenses 14 1,072 (1,881) (3,745) 1,037 — — (3,502)
Operating expenses — (418) (1,287) (1,771) 931 — (669) (3,214)
Operating profit before 
goodwill and amortisation 19 1,087 752 (263) (335) (96) (483) 681
Pre-acquisition relates to the element of results from the new acquisitions before they were acquired by the Group. 
*  The underwriting year of account results represent the Group’s share of the syndicates’ results by underwriting year of account before 
corporate member level reinsurance and members’ agents charges.
6. Insurance liabilities and reinsurance balances
Movement in claims outstanding 
Gross
£’000
Reinsurance
£’000
Net
£’000
At 1 January 2012 14,234 3,044 11,190
Increase in reserves arising from acquisition of subsidiary undertakings 9,445 1,993 7,452
Movement of reserves (229) 24 (253)
Other movements (3,636) (738) (2,898)
At 31 December 2012 19,814 4,323 15,491
At 1 January 2013 19,814 4,323 15,491
Increase in reserves arising from acquisition of subsidiary undertakings 5,303 861 4,442
Movement of reserves (1,148) (478) (670)
Other movements (2,373) (552) (1,821)
At 31 December 2013 21,596 4,154 17,442
Included within other movements are the 2010 and prior years’ claims reserves reinsured into the 2011 year of 
account on which the Group does not participate and currency exchange differences. Corporate governance Strategic report
Annual report and financial statements 2013 | Helios Underwriting plc | 35
Financial statements
Notes to the financial statements continued • Y ear ended 31 December 2013
6. Insurance liabilities and reinsurance balances continued
Movement in unearned premium
Gross
£’000
Reinsurance
£’000
Net
£’000
At 1 January 2012 3,137 409 2,728
Increase in reserves arising from acquisition of subsidiary undertakings 1,285 171 1,114
Movement of reserves 405 52 353
Other movements (203) (42) (161)
At 31 December 2012 4,624 590 4,034
At 1 January 2013 4,624 590 4,034
Increase in reserves arising from acquisition of subsidiary undertakings 1,352 175 1,177
Movement of reserves 29 43 (14)
Other movements (37) (8) (29)
At 31 December 2013 5,968 800 5,168
Assumptions, changes in assumptions and sensitivity
As described in Note 3 the majority of the risks to the Group’s future cash flows arise from its subsidiaries’ participation 
in the results of Lloyd’s syndicates and are mostly managed by the managing agents of the syndicates. The Group’s 
role in managing these risks, in conjunction with the Groups members’ agent, is limited to a selection of syndicate 
participations and monitoring the performance of the syndicates and their managing agents.
The amounts carried by the Group arising from insurance contracts are calculated by the managing agents of the 
syndicates and derived from accounting information provided by the managing agents and reported upon by the 
syndicate auditors. 
The key assumptions underlying the amounts carried by the Group arising from insurance contracts are:
 » the claims reserves calculated by the managing agents are accurate; and
 » the potential deterioration of run-off year results has been fully provided for by the managing agents.
There have been no changes in assumptions in 2013.
The amounts carried by the Group arising from insurance contracts are sensitive to various factors as follows:
 » a 10% increase/decrease in the managing agents’ calculation of gross claims reserves will decrease/increase 
the Group’s pre-tax profits by £2,160,000 (2012: £1,981,000);
 » a 10% increase/decrease in the managing agents’ calculation of net claims reserves will decrease/increase 
the Group’s pre-tax profits by £1,744,000 (2012: £1,549,000); and
 » a 10% increase/decrease in the run-off year net claims reserves will decrease/increase the Group’s pre-tax profits 
by £13,000 (2012: £12,000).
The 10% movement has been selected to give an indication of the possible variations in the assumptions used. 36 | Helios Underwriting plc | Annual report and financial statements 2013
Notes to the financial statements continued • Y ear ended 31 December 2013
6. Insurance liabilities and reinsurance balances continued
Analysis of gross and net claims development
The tables below provide information about historical gross and net claims development: 
2013
Gross claims as a % of gross earned premium
Year of account 2011* 2012* 2013
12 months 72.3% 67.7% 53.1%
24 months 61.0% 54.9% —
36 months 51.7% — —
Net claims as a % of net earned premium
Year of account 2011* 2012* 2013
12 months 77.0% 71.4% 53.1%
24 months 62.3% 57.3% —
36 months 51.8% — —
* Including the new acquisitions during 2013.
2012
Gross claims as a % of gross earned premium
Year of account 2010* 2011* 2012
12 months 62.9% 72.1% 68.1%
24 months 81.9% 62.4% —
36 months 70.1% — —
Net claims as a % of net earned premium
Year of account 2010* 2011* 2012
12 months 67.2% 76.7% 71.8%
24 months 77.2% 64.0% —
36 months 63.2% — —
*  Including the new acquisitions during 2012.
7. Net investment income
Year ended
31 December 
2013
£’000
Year ended
31 December
2012
£’000
Investment income 381 320
Realised gains on financial assets at fair value through profit or loss 5 3
Unrealised (losses)/gains on financial assets at fair value through profit or loss (137) 128
Investment management expenses (43) (49)
Bank interest 2 27
Net investment income 208 429 Corporate governance Strategic report
Annual report and financial statements 2013 | Helios Underwriting plc | 37
Financial statements
Notes to the financial statements continued • Y ear ended 31 December 2013
8. Operating profit before tax
Year ended
31 December
2013
£’000
Year ended
31 December
2012
£’000
Profit before tax is stated after charging/(crediting):
Directors’ remuneration 236 84
Exchange differences 107 125
Amortisation of syndicate capacity 462 314
Acquisition costs in connection with the new subsidiaries acquired in the year 49 45
Impairment of goodwill 98 81
Goodwill on bargain purchase (133) (568)
Auditors’ remuneration:
– audit of the Parent Company and Group Financial Statements 25 25
– audit of subsidiary company Financial Statements 22 14
– other services — —
The Group has no employees other than the Directors of the Company.
Directors’ remuneration
Year ended
31 December
2013
£
Year ended
31 December
2012
£
Sir Michael Oliver 20,000 20,000
Andrew Leslie (resigned 27 June 2013) 14,600 15,000
Jeremy Evans 15,000 15,000
Michael Cunningham 15,000 15,000
Andrew Christie (appointed 8 July 2013) 7,500 —
Nigel Hanbury 164,000 18,750
Total 236,100 83,750
The Chief Executive Nigel Hanbury has a bonus incentive scheme in addition to his basic remuneration. The above 
figures include an accrual for the year of £89,000 (2012: £nil) in respect of this scheme. No other Directors derive 
other benefits, pension contributions or incentives from the Group. At 31 December 2013 no share options were 
held by the Directors (2012: nil).
The Company established a Nomination and Remuneration Committee during the year.
9. Income tax charge
(a) Analysis of tax charge/(credit) in the year
Year ended
31 December
2013
£’000
Year ended
31 December
2012
£’000
Current tax:
– current year (95) 221
– prior year (5) 16
– foreign tax paid 22 36
(78) 273
Deferred tax:
– current year 315 (201)
– prior year (115) 19
200 (182)
Tax on profit on ordinary activities 122 91 38 | Helios Underwriting plc | Annual report and financial statements 2013
Notes to the financial statements continued • Y ear ended 31 December 2013
9. Income tax charge continued
(b) Factors affecting the tax charge/(credit) for the year
T ax for the year is lower than (2012: lower than) the standard rate of corporation tax in the UK of 23.25% (2012: 24.50%).
The differences are explained below:
Year ended
31 December
2013
£’000
Year ended
31 December
2012
£’000
Profit on ordinary activities before tax 853 854
Profit on ordinary activities multiplied by the standard rate of corporation tax  
in the UK of 23.25% (2012: 24.50%) 199 209
Prior year adjustments (5) 16
Change in deferred tax rate (115) (19)
Permanent disallowances 50 27
Goodwill on bargain purchase not subject to tax (31) (116)
Relief for foreign taxation 22 36
Other 2 (62)
Tax charge for the year 122 91
The results of the Group’s participation on the 2011, 2012 and 2013 years of account and the calendar year movement 
on 2010 and prior run-offs will not be assessed to tax until the year ended 2014, 2015 and 2016 respectively, being the 
year after the calendar year result of each run-off year or the normal date of closure of each year of account. Full provision 
is made as part of the deferred tax provisions for underwriting profits/(losses) not yet subject to corporation tax.
10. Earnings per share
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted 
average number of ordinary shares outstanding during the period. 
The Group has no dilutive potential ordinary shares.
Earnings per share has been calculated in accordance with IAS 33.
The earnings and weighted average number of shares used in the calculation are set out below:
Year ended
31 December
2013
Year ended
31 December
2012
Profit for the year £731,000 £763,000
Weighted average number of shares in issue 8,526,948 7,691,769
Basic and diluted earnings per share 8.57p 9.92p
11. Dividends
No equity dividends were proposed, declared or paid in the year (2012: £nil). Future dividends are detailed in Note 24. Corporate governance Strategic report
Annual report and financial statements 2013 | Helios Underwriting plc | 39
Financial statements
Notes to the financial statements continued • Y ear ended 31 December 2013
12. Intangible assets
Goodwill
£’000
Syndicate
capacity
£’000
Total
£’000
Cost
At 1 January 2012 — 2,027 2,027
Additions 81 218 299
Disposals — (56) (56)
Impairment (81) — (81)
Acquired with subsidiary undertakings — 1,032 1,032
At 31 December 2012 — 3,221 3,221
At 1 January 2013 — 3,221 3,221
Additions 98 3 101
Disposals — (37) (37)
Impairment (98) — (98)
Acquired with subsidiary undertakings — 1,927 1,927
At 31 December 2013 — 5,114 5,114
Amortisation
At 1 January 2012 — 975 975
Charge for the year — 314 314
Disposals — (4) (4)
Acquired with subsidiary undertakings — 139 139
At 31 December 2012 — 1,424 1,424
At 1 January 2013 — 1,424 1,424
Charge for the year — 462 462
Disposals — (28) (28)
Acquired with subsidiary undertakings — 327 327
At 31 December 2013 — 2,185 2,185
Net book value
As at 31 December 2011 — 1,052 1,052
As at 31 December 2012 — 1,797 1,797
As at 31 December 2013 — 2,929 2,929
As set out in Note 19 the Group acquired four new limited liability vehicles for cash in the year. When the Group 
acquires new limited liability vehicles for cash it looks to acquire the vehicle for adjusted net assets, accordingly, 
the Directors do not expect any material amounts of positive or negative goodwill to arise. In the circumstances 
where small amounts of positive goodwill arise they are immediately impaired and written off through the 
Consolidated Income Statement. 40 | Helios Underwriting plc | Annual report and financial statements 2013
Notes to the financial statements continued • Y ear ended 31 December 2013
13. Deferred tax
Deferred tax is calculated in full on temporary differences using a tax rate of 20% (2012: 23%). The movement on 
the deferred tax liability account is shown below: 
Deferred tax liabilities
Valuation of
capacity
£’000
Timing
differences on
underwriting
results
£’000
Total
£’000
At 1 January 2012 127 288 415
On acquisition of subsidiary undertakings 219 486 705
Prior period adjustment — 19 19
Credit for the year (38) (163) (201)
At 31 December 2012 308 630 938
At 1 January 2013 308 630 938
On acquisition of subsidiary undertakings 210 308 518
Prior period adjustment (40) (75) (115)
Charge for the year (50) 365 315
At 31 December 2013 428 1,228 1,656
Company
The Company had no deferred tax liabilities (2012: £nil).
14. Other receivables
Group
31 December
2013
£’000
31 December
2012
£’000
Arising out of direct insurance operations 2,603 2,424
Arising out of reinsurance operations 5,415 3,519
Other debtors 3,536 3,400
11,554 9,343
Company
31 December 
2013
£’000
31 December
2012
£’000
Amounts owed by subsidiary undertakings 5,273 7,332
Prepayments 17 18
5,290 7,350
Included within other receivables are amounts totalling £581,000 (2012: £228,000) which are not expected to be 
wholly recovered within one year.
All other receivables are due within one year.
The Company has no analysis of other receivables held directly by the syndicates on the Group’s behalf (see Note 22). 
None of the Group’s other receivables are past their due date and are all classified as fully performing.
15. Financial assets at fair value through profit or loss
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments 
by valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are 
observable, either directly or indirectly.
Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based 
on observable market data. 
The Group has no level 3 investments. Corporate governance Strategic report
Annual report and financial statements 2013 | Helios Underwriting plc | 41
Financial statements
Notes to the financial statements continued • Y ear ended 31 December 2013
15. Financial assets at fair value through profit or loss continued
Assets measured at fair value continued
As at 31 December 2013, the Group held the following financial assets carried at fair value on the statement of 
financial position:
Group
2013
£’000
Level 1
£’000
Level 2
£’000
Shares and other variable yield securities 322 322 —
Debt securities and other fixed income securities 13,376 13,376 —
Participation in investment pools 907 907 —
Loans guaranteed by mortgage 64 — 64
Holdings in collective investment schemes 3,268 — 3,268
Deposits with credit institutions 19 — 19
Funds held at Lloyd’s 3,969 3,969 —
Other 288 — 288
Total – market value 22,213 18,574 3,639
Group
2012
£’000
Level 1
£’000
Level 2
£’000
Shares and other variable yield securities 391 391 —
Debt securities and other fixed income securities 10,864 10,864 — 
Participation in investment pools 847 847 —
Loans guaranteed by mortgage 91 — 91
Holdings in collective investment schemes 1,211 — 1,211
Deposits with credit institutions 22 — 22
Funds held at Lloyd’s 7,173 7,173 —
Other 379 — 379
Total – market value 20,978 19,275 1,703
Funds at Lloyd’s represents assets deposited with the Corporation of Lloyd’s (“Lloyd’s”) to support the Group’s 
underwriting activities as described in the accounting policies. The Group has entered into a Lloyd’s Deposit Trust 
Deed which gives the Corporation the right to apply these monies in settlement of any claims arising from the 
participation on the syndicates. These monies can only be released from the provision of this Deed with Lloyd’s 
express permission and only in circumstances where the amounts are either replaced by an equivalent asset, or 
after the expiration of the Group’s liabilities in respect of its underwriting. 
In addition to Funds held by Lloyd’s shown above, letters of credit totalling £700,000 are also held as part of the 
Group’s Funds at Lloyds.
The Directors consider any credit risk or liquidity risk not to be material.
Company
Financial investments
31 December 
2013
£’000
31 December
2012
£’000
Investment in subsidiary undertakings 4,076 3,261
Holdings in collective investment schemes 1,956 —
Total – cost 6,032 3,261
The Company owns 100% of the share capital of Hampden Corporate Member Limited, Nameco (No. 365) Limited, 
Nameco (No. 605) Limited, Nameco (No. 321) Limited, Nameco (No. 917) Limited, Nameco (No. 229) Limited, 
Nameco (No. 518) Limited, Nameco (No. 804) Limited and Halperin Limited, all of which trade as Lloyd’s of London 
corporate vehicles. The Company also owns 100% of the share capital of Helios UTG Partner Limited. All subsidiary 
companies are incorporated in England and Wales. 
During the year the Company acquired Nameco (No. 804) Limited and Halperin Limited and Helios UTG Partner Limited 
became the 100% corporate partner of Nomina No 035 LLP and Nomina No 342 LLP . The total cash consideration of 
these acquisitions was £3,927,000 (see Note 19). 42 | Helios Underwriting plc | Annual report and financial statements 2013
Notes to the financial statements continued • Y ear ended 31 December 2013
16. Other payables
Group
31 December 
2013
£’000
31 December
2012
£’000
Arising out of direct insurance operations 358 331
Arising out of reinsurance operations 2,255 2,146
Other creditors 1,503 2,112
4,116 4,589
Company
31 December 
2013
£’000
31 December
2012
£’000
Other creditors 10 —
Accruals and deferred income 172 59
182 59
All other payables are due within one year. 
The Company has no analysis of other payables held directly by the syndicates on the Group’s behalf (see Note 22).
17. Share capital and share premium
Allotted, called up and fully paid
Ordinary
share
capital
£’000
Share
premium
£’000
Total
£’000
8,526,948 ordinary shares of 10p each and share premium at 1 January 2013 853 6,996 7,849
8,526,948 ordinary shares of 10p each and share premium at 31 December 2013 853 6,996 7,849
18. Retained earnings
Group
2013
£’000
2012
£’000
At 1 January 1,246 483
Profit attributable to equity shareholders 731 763
At 31 December 1,977 1,246
Company
2013
£’000
2012
£’000
At 1 January 2,714 857
Profit attributable to equity shareholders 599 1,857
At 31 December 3,313 2,714 Corporate governance Strategic report
Annual report and financial statements 2013 | Helios Underwriting plc | 43
Financial statements
Notes to the financial statements continued • Y ear ended 31 December 2013
19. Acquisition of limited liability vehicles
Nomina No 035 LLP
On 9 October 2013 Helios UTG Partner Limited, a 100% subsidiary of the Company, became a 100% corporate 
partner in Nomina No 035 LLP for a total consideration of £380,000. Nomina No 035 LLP is incorporated in England 
and Wales and is a member of Lloyd’s.
The acquisition has been accounted for using the purchase method of accounting. After the alignment of accounting 
policies and other adjustments to the valuation of assets and liabilities to reflect their fair value at acquisition, the fair 
value of the net assets was £419,000. Negative goodwill of £39,000 arose on acquisition and has been immediately 
recognised as goodwill on bargain purchase in the income statement. The following table explains the fair value 
adjustments made to the carrying values of the major categories of assets and liabilities at the date of acquisition: 
Carrying value
£’000
Adjustments
£’000
Fair value
£’000
Intangible assets 31 285 316
Reinsurance assets:
– reinsurers’ share of claims outstanding 230 — 230
– reinsurers’ share of unearned premium 40 — 40
Other receivables, including insurance receivables 487 150 637
Prepayments and accrued income 72 — 72
Financial investments 756 — 756
Cash and cash equivalents 21 — 21
Insurance liabilities:
– claims outstanding (1,029) — (1,029)
– unearned premium (286) — (286)
Deferred income tax liabilities — (87) (87)
Other payables, including insurance payables (235) — (235)
Accruals and deferred income (16) — (16)
Net assets acquired 71 348 419
Satisfied by:
Cash and cash equivalents 380 — 380
Negative goodwill 309 (348) (39)
The net earned premium and profit of Nomina No 035 LLP for the period since the acquisition date to 31 December 2013 
is £131,000 and £17,000 respectively. 44 | Helios Underwriting plc | Annual report and financial statements 2013
Notes to the financial statements continued • Y ear ended 31 December 2013
19. Acquisition of limited liability vehicles continued
Nomina No 342 LLP
On 15 October 2013 Helios UTG Partner Limited, a 100% subsidiary of the Company, became a 100% corporate 
partner in Nomina No 342 LLP for a total consideration of £290,000. Nomina No 342 LLP is incorporated in England 
and Wales and is a member of Lloyd’s.
The acquisition has been accounted for using the purchase method of accounting. After the alignment of accounting 
policies and other adjustments to the valuation of assets and liabilities to reflect their fair value at acquisition, the fair 
value of the net assets was £301,000. Negative goodwill of £11,000 arose on acquisition and has been immediately 
recognised as goodwill on bargain purchase in the income statement. The following table explains the fair value 
adjustments made to the carrying values of the major categories of assets and liabilities at the date of acquisition: 
Carrying value
£’000
Adjustments
£’000
Fair value
£’000
Intangible assets 39 276 315
Reinsurance assets:
– reinsurers’ share of claims outstanding 202 — 202
– reinsurers’ share of unearned premium 41 — 41
Other receivables, including insurance receivables 504 — 504
Prepayments and accrued income 66 — 66
Financial assets at fair value 745 — 745
Cash and cash equivalents 45 — 45
Insurance liabilities:
– claims outstanding (997) — (997)
– unearned premium (289) — (289)
Deferred income tax liabilities — (55) (55)
Other payables, including insurance payables (259) — (259)
Accruals and deferred income (17) — (17)
Net assets acquired 80 221 301
Satisfied by:
Cash and cash equivalents 290 — 290
Negative goodwill 210 (221) (11)
The net earned premium and profit of Nomina No 035 LLP for the period since the acquisition date to 31 December 2013 
is £123,000 and £15,000 respectively. Corporate governance Strategic report
Annual report and financial statements 2013 | Helios Underwriting plc | 45
Financial statements
Notes to the financial statements continued • Y ear ended 31 December 2013
19. Acquisition of limited liability vehicles continued
Nameco (No. 804) Limited
On 2 November 2013 Helios Underwriting plc acquired 100% of the issued share capital of Nameco (No. 804) Limited 
for a total consideration of £2,547,000. Nameco (No. 804) Limited is incorporated in England and Wales and is a 
corporate member of Lloyd’s.
The acquisition has been accounted for using the purchase method of accounting. After the alignment of accounting 
policies and other adjustments to the valuation of assets and liabilities to reflect their fair value at acquisition, the fair 
value of the net assets was £2,630,000. Negative goodwill of £83,000 arose on acquisition and has been immediately 
recognised as goodwill on bargain purchase in the income statement. The following table explains the fair value 
adjustments made to the carrying values of the major categories of assets and liabilities at the date of acquisition:
Carrying value
£’000
Adjustments
£’000
Fair value
£’000
Intangible assets 61 662 723
Reinsurance assets:
– reinsurers’ share of claims outstanding 208 — 208
– reinsurers’ share of unearned premium 52 — 52
Other receivables, including insurance receivables 2,544 — 2,544
Prepayments and accrued income 134 — 134
Financial assets at fair value 1,817 — 1,817
Cash and cash equivalents 611 — 611
Insurance liabilities:
– claims outstanding (2,225) — (2,225)
– unearned premium (490) — (490)
Deferred income tax liabilities (102) (132) (234)
Other payables, including insurance payables (454) — (454)
Accruals and deferred income (56) — (56)
Net assets acquired 2,100 530 2,630
Satisfied by:
Cash and cash equivalents 2,547 — 2,547
Negative goodwill 447 (530) (83)
The net earned premium and profit of Nameco (No. 804) Limited for the period since the acquisition date 
to 31 December 2013 is £171,000 and £42,000 respectively.
Halperin Limited
On 20 December 2013 Helios Underwriting plc acquired 100% of the issued share capital of Halperin Limited for a 
total consideration of £710,000. Halperin Limited is incorporated in England and Wales and is a corporate member 
of Lloyd’s.
The acquisition has been accounted for using the purchase method of accounting. After the alignment of accounting 
policies and other adjustments to the valuation of assets and liabilities to reflect their fair value at acquisition, the fair 
value of the net assets was £612,000. Goodwill of £98,000 arose on acquisition. The following table explains the fair 
value adjustments made to the carrying values of the major categories of assets and liabilities at the date of acquisition.  46 | Helios Underwriting plc | Annual report and financial statements 2013
Notes to the financial statements continued • Y ear ended 31 December 2013
19. Acquisition of limited liability vehicles continued
Halperin Limited continued
Carrying value
£’000
Adjustments
£’000
Fair value
£’000
Intangible assets 2 318 320
Reinsurance assets:
– reinsurers’ share of claims outstanding 221 — 221
– reinsurers’ share of unearned premium 42 — 42
Other receivables, including insurance receivables 562 204 766
Prepayments and accrued income 83 — 83
Financial assets at fair value 841 — 841
Cash and cash equivalents 121 — 121
Insurance liabilities:
– claims outstanding (1,052) — (1,052)
– unearned premium (287) — (287)
Deferred income tax liabilities (31) (104) (135)
Other payables, including insurance payables (289) — (289)
Accruals and deferred income (19) — (19)
Net assets acquired 194 418 612
Satisfied by:
Cash and cash equivalents 710 — 710
Goodwill 516 (418) 98
The net earned premium and profit of Halperin Limited for the period since the acquisition date to 31 December 2013 
is £18,000 and £2,000 respectively.
Had the four Limited Liability Vehicles been consolidated from 1 January 2013, the Consolidated Income Statement 
would show net earned premium of £12,134,000 and a profit after tax of £1,138,000.
Costs incurred in connection with the four acquisitions totalling £49,000 have been recognised in the Consolidated 
Income Statement.
20. Related party transactions
Helios Underwriting plc has provided inter-company loans to its subsidiaries which are repayable on three months’ 
notice provided it does not jeopardise each subsidiary’s ability to meet its liabilities as they fall due. All inter-company 
loans are therefore classed as falling due within one year. The amounts outstanding as at 31 December are set out below:
Company
31 December
2013
£’000
31 December
2012
£’000
Balances due from Group companies at the year end:
Hampden Corporate Member Limited 1,257 3,537
Nameco (No. 365) Limited 136 350
Nameco (No. 605) Limited 362 1,306
Nameco (No. 321) Limited 134 350
Nameco (No. 917) Limited 573 1,431
Nameco (No. 229) Limited 110 358
Nameco (No. 518) Limited 34 —
Nameco (No. 804) Limited 1,429 —
Halperin Limited — —
Nomina No 035 LLP — —
Nomina No 342 LLP — —
Helios UTG Partner Limited 1,238 —
Total 5,273 7,332 Corporate governance Strategic report
Annual report and financial statements 2013 | Helios Underwriting plc | 47
Financial statements
Notes to the financial statements continued • Y ear ended 31 December 2013
20. Related party transactions continued
The Limited Liability Vehicles are 100% subsidiaries of the Company (either directly or indirectly) and have entered 
into a management agreement with Nomina plc. Jeremy Evans, a Director of Helios Underwriting plc and its 
subsidiary companies, is also a director of Nomina plc. Under the agreement, Nomina plc provides management 
and administration, financial, tax and accounting services to the Group for an annual fee of £42,750 (2012: £31,750). 
The Limited Liability Vehicles have entered into a member’s agent agreement with Hampden Agencies Limited. 
Jeremy Evans, a Director of Helios Underwriting plc and its subsidiary companies, is also a director of Hampden 
Capital plc, which controls Hampden Agencies Limited. Under the agreement the Limited Liability Vehicles will pay 
Hampden Agencies Limited a fee based on a fixed amount, which will vary depending upon the number of syndicates 
the Limited Liability Vehicles underwrites on a bespoke basis, and a variable amount depending on the level of underwriting 
through the members’ agent pooling arrangements. In addition, the Limited Liability Vehicles will pay profit commission 
on a sliding scale from 1% of the net profit up to a maximum of 10%. The total fees payable for 2013 are set out below:
Company
31 December
2013
£’000
31 December
2012
£’000
Hampden Corporate Member Limited 20 51
Nameco (No. 365) Limited 5 9
Nameco (No. 605) Limited 15 50
Nameco (No. 321) Limited 6 16
Nameco (No. 917) Limited 10 3
Nameco (No. 229) Limited 6 6
Nameco (No. 518) Limited 7 23
Nameco (No. 804) Limited 8 — 
Halperin Limited 7 — 
Nomina No 035 LLP 7 — 
Nomina No 342 LLP 6 — 
Helios UTG Partner Limited — — 
Total 97 158
During the year Helios Underwriting plc had a company secretarial agreement with Hampden Legal plc. Under the 
agreement, Hampden Legal plc provides company secretarial services to the Group for an annual fee of £35,000. 
Jeremy Evans is a director of Hampden Holdings Limited. Hampden Holdings Limited has a controlling interest in 
both Hampden Legal plc and Hampden Capital plc. 
The Group has entered into a 50% quota share reinsurance contract for the 2013 underwriting year of account with 
Hampden Insurance PCC (Guernsey) Limited – Cell 6 for Hampden Corporate Member Limited, Nameco (No. 365) 
Limited, Nameco (No. 605) Limited, Nameco (No. 321) Limited, Nameco (No. 917) Limited, Nameco (No. 229) 
Limited and Nameco (No. 518) Limited. Nigel Hanbury, a Director of Helios Underwriting plc and its subsidiary 
companies, is also a director and majority shareholder in Hampden Insurance PCC (Guernsey) Limited – Cell 6. 
Hampden Capital, a substantial shareholder in Helios Underwriting plc is also a substantial shareholder in Hampden 
Insurance PCC (Guernsey) Limited – Cell 6. Under the agreement, the Group accrued a net reinsurance premium 
payable of £22,000 during the year.
All of the Group’s Limited Liability Vehicles have entered into a Group 50% quota share reinsurance contract 
with Hampden Insurance PCC (Guernsey) Limited – Cell 6 for the 2014 underwriting year of account. 48 | Helios Underwriting plc | Annual report and financial statements 2013
Notes to the financial statements continued • Y ear ended 31 December 2013
21. Syndicate participations
The syndicates and members’ agent pooling arrangements (“MAPA”) in which the Company’s subsidiaries 
participate as Corporate Members of Lloyd’s are as follows:
Syndicate or 
MAPA number Managing or members’ agent
Allocated capacity per year of account
2011*
£
2012*
£
2013*
£
2014
£
33 Hiscox Syndicates Limited 616,717 568,645 568,645 1,289,939
218 Equity Syndicate Management Limited 503,431 254,285 359,285 745,344
386 QBE Underwriting Limited 117,581 135,136 135,136 448,627 
510 R J Kiln & Co Limited 902,945 905,425 880,770 2,238,439 
557 R J Kiln & Co Limited 508,445 697,973 263,474 431,063 
570 Atrium Underwriters Limited 367,987 — — — 
609 Atrium Underwriters Limited 489,106 867,730 817,120 1,712,561 
623 Beazley Furlonge Limited 576,920 457,746 577,313 1,798,439 
727 S A Meacock & Company Limited 286,333 286,333 286,333 368,166 
779 ANV Syndicates Limited 30,554 20,000 20,000 — 
807 R J Kiln & Co Limited 184,644 — — — 
958 Canopius Managing Agents Limited 328,732 366,434 287,914 435,630 
1176 Chaucer Syndicates Limited 103,056 204,874 251,818 317,712 
1200 Argo Managing Agency Limited 260,541 240,542 63,551 64,252 
2010 Cathedral Underwriting Limited 214,790 218,235 218,235 479,010 
2014 Pembroke Managing Agency Limited — — — 845,079 
2121 Argenta Syndicate Management Limited 190,505 156,969 11,691 — 
2525 Asta Managing Agency Limited 16,785 17,206 — 96,690 
2791 Managing Agency Partners Limited 1,243,821 1,078,666 1,134,641 2,134,400 
5820 ANV Syndicates Limited — — 47,754 — 
6103 Managing Agency Partners Limited 132,500 332,500 392,390 372,410 
6104 Hiscox Syndicates Limited 135,000 335,000 380,730 745,730 
6105 Ark Syndicate Management Limited 108,065 108,065 60,002 274,592 
6106 Amlin Underwriting Limited 248,251 298,251 256,170 — 
6107 Beazley Furlonge Limited 85,000 135,000 10,000 350,000 
6110 Pembroke Managing Agency Limited — 372,655 819,892 — 
6111 Catlin Underwriting Agencies Limited — 411,954 489,808 951,608 
6113 Barbican Managing Agency Limited — — 10,000 — 
6117 Asta Managing Agency Limited — — — 862,595 
7200 Members’ agents pooling arrangement 342,232 351,971 351,971 48,325 
7201 Members’ agents pooling arrangement 1,777,568 1,806,284 1,806,284 249,501 
7202 Members’ agents pooling arrangement 628,295 640,463 640,463 87,799 
7203 Members’ agents pooling arrangement 73,586 74,677 74,677 14,053 
7208 Members’ agents pooling arrangement 5,275,767 — — — 
7209 Members’ agents pooling arrangement 64,118 — — — 
7210 Members’ agents pooling arrangement 23,778 — — — 
7211 Members’ agents pooling arrangement — 5,439,352 5,439,352 687,750 
7217 Members’ agents pooling arrangement 83,478 83,478 83,478 83,478 
Total 15,920,531 16,865,849 16,738,897 18,133,192
* Including the new acquisitions in 2013. Corporate governance Strategic report
Annual report and financial statements 2013 | Helios Underwriting plc | 49
Financial statements
Notes to the financial statements continued • Y ear ended 31 December 2013
22. Group-owned net assets
The Group statement of financial position includes the following assets and liabilities held by the syndicates on which 
the Group participates. These assets are subject to trust deeds for the benefit of the relevant syndicates’ insurance 
creditors. The table below shows the split of the statement of financial position between Group and syndicate assets 
and liabilities:
31 December 2013 31 December 2012
Group
£’000
Syndicate
£’000
Total
£’000
Group
£’000
Syndicate
£’000
Total
£’000
Assets
Intangible assets 2,929 — 2,929 1,797 — 1,797
Reinsurance assets:
– reinsurers’ share of claims outstanding — 4,154 4,154 — 4,323 4,323
– reinsurers’ share of unearned premium — 800 800 — 590 590
Other receivables, including insurance receivables 793 10,761 11,554 490 8,853 9,343
Prepayments and accrued income 36 1,533 1,569 62 1,154 1,216
Financial assets at fair value 5,932 16,281 22,213 7,354 13,624 20,978
Cash and cash equivalents 86 980 1,066 697 747 1,444
Total assets 9,776 34,509 44,285 10,400 29,291 39,691
Liabilities
Insurance liabilities:
– claims outstanding — 21,596 21,596 — 19,814 19,814
– unearned premium — 5,968 5,968 — 4,624 4,624
Deferred income tax liabilities 1,656 — 1,656 938 — 938
Other payables, including insurance payables 34 4,082 4,116 246 4,343 4,589
Accruals and deferred income 866 257 1,123 581 50 631
Total liabilities 2,556 31,903 34,459 1,765 28,831 30,596
Shareholders’ equity
Share capital 853 — 853 853 — 853
Share premium 6,996 — 6,996 6,996 — 6,996
Retained earnings (629) 2,606 1,977 786 460 1,246
Total shareholders’ equity 7,220 2,606 9,826 8,635 460 9,095
Total liabilities and shareholders’ equity 9,776 34,509 44,285 10,400 29,291 39,691
23. Ultimate controlling party
The Directors consider that the Group has no ultimate controlling party.
24. Post balance sheet events
In order to increase the Group’s underwriting capacity, the Company has, since the balance sheet date, acquired 
100% of the voting rights (either directly or indirectly) of the following Limited Liability Vehicles:
Nomina No 380 LLP
On 16 January 2014 Helios UTG Partner Limited, a 100% subsidiary of the Company, became a 100% corporate 
partner in Nomina No 380 LLP for a total consideration of £557,000. Nomina No 380 LLP is incorporated in England 
and Wales and is a member of Lloyd’s.
After the alignment of accounting policies and other adjustments to the valuation of assets and liabilities to reflect 
their fair value at acquisition, the provisional fair value of the net assets at the date of acquisition was estimated to be 
£581,000 giving rise to negative goodwill of £24,000 on acquisition. The following table explains the provisional fair 
value adjustments made to the carrying values of the major categories of assets and liabilities at the date of acquisition. 50 | Helios Underwriting plc | Annual report and financial statements 2013
Notes to the financial statements continued • Y ear ended 31 December 2013
24. Post balance sheet events continued
Nomina No 380 LLP continued
Carrying value
£’000
Adjustments
£’000
Fair value
£’000
Intangible assets 28 496 524
Reinsurance assets:
– reinsurers’ share of claims outstanding 400 — 400
– reinsurers’ share of unearned premium 63 — 63
Other receivables, including insurance receivables 803 — 803
Prepayments and accrued income 116 — 116
Financial assets at fair value 1,363 — 1,363
Cash and cash equivalents 90 — 90
Insurance liabilities:
– claims outstanding (1,861) — (1,861)
– unearned premium (445) — (445)
Deferred income tax liabilities — (99) (99)
Other payables, including insurance payables (324) — (324)
Accruals and deferred income (49) — (49)
Net assets acquired 184 397 581
Satisfied by:
Cash and cash equivalents 557 — 557
Negative goodwill 373 (397) (24)
Bernul Limited
On 27 March 2014 Helios Underwriting plc acquired 100% of the issued share capital of Bernul Limited for a total 
consideration of £823,000. Bernul Limited is incorporated in England and Wales and is a corporate member of Lloyd’s.
After the alignment of accounting policies and other adjustments to the valuation of assets and liabilities to reflect 
their fair value at acquisition, the provisional fair value of the net assets at the date of acquisition was estimated to 
be £813,000 giving rise to goodwill of £10,000 on acquisition. The following table explains the provisional fair value 
adjustments made to the carrying values of the major categories of assets and liabilities at the date of acquisition:
Carrying value
£’000
Adjustments
£’000
Fair value
£’000
Intangible assets 1 323 324
Reinsurance assets:
– reinsurers’ share of claims outstanding 165 — 165
– reinsurers’ share of unearned premium 36 — 36
Other receivables, including insurance receivables 817 — 817
Prepayments and accrued income 85 — 85
Financial assets at fair value 1,123 — 1,123
Cash and cash equivalents 84 — 84
Insurance liabilities:
– claims outstanding (1,122) — (1,122)
– unearned premium (313) — (313)
Deferred income tax liabilities (56) (65) (121)
Other payables, including insurance payables (234) — (234)
Accruals and deferred income (31) — (31)
Net assets acquired 555 258 813
Satisfied by:
Cash and cash equivalents 823 — 823
Goodwill 268 (258) 10 Corporate governance Strategic report
Annual report and financial statements 2013 | Helios Underwriting plc | 51
Financial statements
24. Post balance sheet events continued
Nomina No 372 LLP
On 2 May 2014 Helios UTG Partner Limited, a 100% subsidiary of the Company, became a 100% corporate partner 
in Nomina No 372 LLP for £480,000. Nomina No 372 LLP is incorporated in England and Wales and is a member 
of Lloyd’s.
After the alignment of accounting policies and other adjustments to the valuation of assets and liabilities to reflect 
their fair value at acquisition, the provisional fair value of the net assets at the date of acquisition was estimated to 
be £469,000 giving rise to goodwill of £11,000 on acquisition. The following table explains the provisional fair value 
adjustments made to the carrying values of the major categories of assets and liabilities at the date of acquisition:
Carrying value
£’000
Adjustments
£’000
Fair value
£’000
Intangible assets 3 439 442
Reinsurance assets:
– reinsurers’ share of claims outstanding 253 — 253
– reinsurers’ share of unearned premium 48 — 48
Other receivables, including insurance receivables 497 — 497
Prepayments and accrued income 90 — 90
Financial assets at fair value 959 — 959
Cash and cash equivalents 80 — 80
Insurance liabilities:
– claims outstanding (1,216) — (1,216)
– unearned premium (350) — (350)
Deferred income tax liabilities — (87) (87)
Other payables, including insurance payables (203) — (203)
Accruals and deferred income (44) — (44)
Net assets acquired 117 352 469
Satisfied by:
Cash and cash equivalents 480 — 480
Goodwill 363 (352) 11
Members’ agents profit commission agreement
During the year the Company re-negotiated its Group fee arrangement with the Limited Liability Vehicles members’ 
agent, Hampden Agencies Limited. Under this new agreement, the Group will pay a fixed fee per underwriting year 
of account, commencing with the 2014 underwriting year of account, of £50,000 plus an additional fee of 0.2% for 
underwriting capacity in excess of £10,000,000.
Future dividends
In respect of the year ended 31 December 2013 a final dividend of 1.5p per share together with a special dividend 
of 3.0p per share, amounting to a total dividend of £384,000 is to be proposed at the annual general meeting on 
26 June 2014. These Financial Statements do not reflect this dividend payable.
Notes to the financial statements continued • Y ear ended 31 December 2013 52 | Helios Underwriting plc | Annual report and financial statements 2013
Directors
Sir James Michael Yorrick Oliver (Non-executive 
Chairman) 
Nigel John Hanbury (Chief Executive) 
Jeremy Richard Holt Evans (Non-executive Director) 
Harold Michael Clunie Cunningham (Non-executive 
Director) 
Andrew Hildred Christie (Non-executive Director)
Company secretary
Martha Bruce 
Bruce Wallace Associates Limited 
123 Pall Mall 
London SW1Y 5EA
Company number
05892671
Registered office
Hampden House 
Great Hampden 
Great Missenden 
Buckinghamshire HP16 9RD
Statutory auditor
PKF Littlejohn LLP
1 Westferry Circus 
Canary Wharf 
London E14 4HD
Solicitors
Jones Day
21 Tudor Street 
London EC4Y 0DJ
Bankers
Coutts & Co
440 Strand 
London WC2R 0QS
Nominated adviser
Smith & Williamson Corporate Finance Limited
25 Moorgate 
London EC2R 6AY
Lloyd’s members’ agent
Hampden Agencies Limited
85 Gracechurch Street 
London EC3V 0AA
Registrars
Capita Asset Services
The Registry 
34 Beckenham Road 
Beckenham 
Kent BR3 4TU
Broker
Westhouse Securities Limited
Heron Tower 
110 Bishopsgate 
London EC2N 4AY
Registered officers and advisers  Helios Underwriting plc Annual report and financial statements 2013
Helios Underwriting plc
Hampden House
Great Hampden
Great Missenden
Buckinghamshire HP16 9RD
United Kingdom