Providing access to Lloyd’s
Helios Underwriting plc Annual report and financial statements 2016
Helios Underwriting plc Annual report and financial statements 2016 • Helios provides access to insurance exposures 
in the Lloyd’s of London insurance market. 
• A quality portfolio of Lloyd’s underwriting 
participations is being built through 
targeted acquisitions.
• It has expanded its portfolio of syndicate capacity 
from £12.9m in 2013 to £35.0m as at May 2017.
• The capacity is capitalised by reinsurers, 
private capital and from Helios’ resources.
• Active management of risk through use of quota 
share and stop loss reinsurance.
• Open exposure to 2017 underwriting year reduced 
to £10.5m.
Providing access  
to a global specialty 
insurance market Visit our investor website at  
www.huwplc.com  
for the latest Company news  
and announcements.
Year of account
Capacity acquired 2014 2015 2016 2017
Capacity at beginning of underwriting 
year – £m 18.2 20.5 28.1 32.6
Acquired in year 1 – £m 4.6 6.3 5.6 2.4
Acquired in year 2 – £m 6.4 5.4 2.2 —
Acquired in year 3 – £m 6.3 2.2 — —
Final/current capacity – £m 35.5 34.4 35.9 35.0
Capacity reinsured – £m 14.9 16.6 23.2 24.5
Proportion reinsured 42% 48% 65% 70%
Helios retained capacity 20.6 17.8 12.7 10.5
Helios proportion retained 58% 52% 35% 30%
Each LLV acquired increases capacity for three open underwriting years. 
Position as at May 2017.
Helios Capacity Fund
£35.0m of capacity for 2017 
77% of the fund managed by leading 
managing agents at Lloyd’s
Reinsurance Strategy
To provide access to Lloyd’s exposures
To assist in the financing of the acquisitions
To mitigate the risk to capital from large losses
Strategic report
1 Overview of Helios Underwriting plc
2 Highlights
4 Chairman’s statement
6 Chief Executive’s review
10 Lloyd’s Advisers’ report –  
Hampden Agencies
13 Summary financial information
Governance
15 Board of Directors
16 Report of the Directors
17 Corporate governance statement
19 Statement of Directors’ responsibilities
Financial statements
20 Independent auditors’ report
21 Consolidated statement  
of comprehensive income
22 Consolidated statement  
of financial position
23 Parent Company statement  
of financial position
24 Consolidated statement of changes  
in equity
25 Parent Company statement of changes 
in equity
26 Consolidated statement of cash flows
27 Parent Company statement  
of cash flows
28 Notes to the financial statements
IBC Registered officers and advisers
Overview of Helios Underwriting plc
Helios Group summary profits
2016
£’000
2015
£’000
Underwriting profits 2,208 2,218
Total other income 904 476
Total costs (1,778) (1,941)
Profit before impairment and tax for the year 1,334 753
Profit before impairment and tax for the year expressed 
per share 11.64p 8.00p
Profit before tax 779 798
Earnings per share 6.22p 9.67p
Strategic report
Annual report and financial statements 2016 — Helios Underwriting plc 1 2016 1.96
2015 2.01
2014 1.75
Adjusted net asset value per share (£)
1.96
-2%
14 15 16
Creating further growth
Highlights
2016 1,334
2015 753
2014 1,351
Total 2016 1
Total 2015 31
Total 2014 16
Adjusted net asset 
Dividend 
Profit before impairment and tax (£m)
Growth in shareholder value (p per share)
1,334
+77%
1
15
15
14
14
16
16
Dividends (p)
5.5
+10%
14 15 16
2016 5.5
2015 5.0
2014 5.1
Final dividend 
Special dividend 
3.6
1.5 1.5 1.5
3.5
4.0
11
5
26
5
(5)
6
2 Helios Underwriting plc — Annual report and financial statements 2016 2017 32.6
2016 28.1
2015 20.5
2014 18.2
Growth in capacity (£m)
32.6
+16%
15 14 16 17
2016 14,918
2015 11,762
2014 7,770
Value of capacity fund (WAV) (£’000)
14,918
+27%
14
16*
15
51*
16
27*
* Growth in value (%).
Strategic report
3 Annual report and financial statements 2016 — Helios Underwriting plc 
•  Gross premium written during the period 
totalled £31.3m (2015: £21.5m)
•  Profits before impairment, goodwill and tax 
for the year of £1,334,000 (2015: £753,000) 
77% increase in profits
•  Earnings per share of 6.22p  
(restated 2015: 9.67p)
•  Helios retained capacity for 2017 open 
underwriting year £10.6 (2016: £9.8)
•  2014 underwriting year of account 
profit return on capacity of 15.6% 
(2013 underwriting year: 14.2%)
•  Net proceeds from the issue of new 
shares – £5.7m
•  Recommended total dividend for this year 
of 5.5p per share (2015: 5.0p per share)
•  Adjusted net asset value per share – 
£1.96 per share (2015: £2.01 per share)
Highlights  Chairman’s statement
Positive results
Summary
Your Board is pleased to report a set of 
encouraging results for 2016 which reflects 
the continued progress in building the portfolio 
of capacity on syndicates at Lloyd’ s to generate 
profits for shareholders. The profits before 
goodwill and impairment for the year were 
£1,334,000 (2015: £753,000), whilst the 
adjusted net asset value of the Group is 
£1.96 per share (2015: £2.01).
Underwriting profits from the two older 
underwriting years, the “off-risk” years, made 
a good contribution but the 2016 underwriting 
year in its first 12 months recognised a loss. 
Other income arising from fees from reinsurers 
and investment income has increased this year. 
T otal costs reduced to £1.8m as the expenditure 
on protecting the portfolio using stop loss 
reinsurance was rationalised.
Strategy
We have continued to implement our strategy 
of building the portfolio of syndicate capacity. 
During 2016 the key developments were the:
 » raising of £5.7m of new capital for the 
acquisition of further limited liability vehicles 
(“LLVs”) and enabling the broadening of the 
shareholder base; and
 » £3.9m of the funds raised have been 
utilised to date.
Underwriting result
The calendar year underwriting profits for 2016 
have been generated from results recognised 
in the portfolio from the 2014 to the 2016 
underwriting years as follows:
Underwriting year contribution
Helios retained profits
Underwriting year 
2016
£’000
2015
£’000
2013 — 1,274
2014 1,661 939
2015 1,031 5
2016 (484) —
2,208 2,218
During 2016, the 2014 underwriting year 
mid-point estimate increased from 8.7% 
return on capacity to a final result of 15.6%. 
The overall return on capacity for 2014 
benefited from the weaker £/US$ exchange 
rate that weakened by 20% in 2016 and from 
below average loss activity. The mid-point 
estimate for the 2015 underwriting year at 
31 December 2016 was 8.2%. This mid-point 
estimate for 2015 has improved to 9.8% 
with the release of updated estimates.
The level of major claims for the whole of 
Lloyd’s during 2016 at £2.1bn was the fifth 
highest since the turn of the century and 
above the long-term average. These losses 
were incurred mainly as a result of Hurricane 
Capacity acquired
During 2016 a further three corporate members were acquired that increased the capacity for 
the 2014 to 2016 years of account, and a further two corporate members have been bought 
since 31 December 2016. These companies have increased the capacity underwritten on the 
2014 to 2017 underwriting years as shown below.
Year of account – £m
2014 2015 2016 2017
Capacity at 1 January 2016 29.2 26.8 28.1 —
Acquired during 2016 6.3 5.4 5.6 — 
Capacity at 31 December 2016 35.5 32.2 33.7 32.6
Acquired to date in 2017 — 2.2 2.2 2.4
Current total capacity 35.5 34.4 35.9 35.0
These five acquisitions in 2016 and 2017 to date were purchased for a total consideration 
of £8.7m, of which £3.9m was committed from the funds raised from shareholders.
• Adjusted net asset value at 
£1.96 per share (2015: £2.01) 
• Three acquisitions in 2016 
added £5.6m of capacity to 2016 
underwriting year – 20% increase
• Two acquisitions agreed in 2017 
will add £2.4m of capacity to 2017 
underwriting year – an additional 
7% increase
• 5.5p per share total dividend 
payable (2015: 5.0p)
Acquisition strategy continues 
to build the fund of capacity.
We have continued 
to implement our 
strategy of building 
the portfolio of 
syndicate capacity.
Sir Michael Oliver 
Non-executive Chairman Matthew, the earthquake in Japan in April 2016 
and the Fort McMurray Wildfire in Canada. 
Consequently, the 2016 underwriting year 
result in the first 12 months retained by Helios 
made a negative contribution mainly arising 
from this claims experience. The underwriting 
environment remains competitive and pressure 
to reduce underwriting terms and conditions 
is prevalent within most classes of business. 
Nevertheless, we would expect the 2016 
underwriting year to be profitable and early 
indications from the managing agents of the 
syndicates in the portfolio are currently 
forecasting a mid-point estimate of profit 
on capacity of 3.5%.
The underwriting results will remain exposed 
to movements in £/US$ exchange rate due 
to significant underlying US$ exposure.
Other income
Helios generates fees from the quota share 
reinsurers, investment income from the Group 
funds at Lloyd’s and foreign exchange gains.
2016
£’000
2015
£’000
Fees from reinsurers 557 385
Investment income 347 91
Total other income 904 476
Fees and profit commission from reinsurers 
have increased as the capital committed has 
risen to £13m and as the 2014/15 years are 
recognising increased profits. The Group 
Funds at Lloyd’s are invested to produce 
consistent long-term returns. 
Total costs
The costs of the Group comprise the operating 
expenses and the cost of the stop loss 
protection bought to mitigate the downside 
from large underwriting losses. 
2016
£’000
2015
£’000
Pre-acquisition 63 200
Stop loss costs 248 407
Operating costs 1,467 1,334
Total costs 1,778 1,941
The reduction in the stop loss costs reflects 
the rationalisation of the stop loss reinsurance 
policies acquired in 2016. 
Adjusted net asset value per share
The Board views the adjusted net asset value 
per share (“ANAV”) as the key metric to measure 
the success of the Group. It measures the 
combination of the net tangible asset value 
of Helios and the current market value of the 
portfolio of syndicate capacity. The building 
of a portfolio of participations on leading 
Lloyd’s syndicates remains the strategic 
objective of the Group.
2016
£’000
2015
£’000
Net tangible assets 11,787 7,912
Group letters of credit 1,922 1,447
Weighted average 
value of capacity 14,918 11,762
28,627 21,121
Shares in issue 14,604 10,495
Adjusted net asset 
value per share (£) 1.96 2.01
The issue of shares in the year to raise 
additional funds has restricted the growth in 
ANAV per share. Previously the Board relied 
on the Humphrey’ s valuation that approached 
the valuation in a very similar way and the ANAV 
of £1.99 per share was published last year.
Dividend
Following another successful year, the Board 
is pleased to recommend that the final dividend 
remains the same as last year at 1.5p per 
share which, together with a special dividend 
of 4.0p per share (2015: 3.5p), totals 5.5p 
per share (2015: 5.0p). The special dividend 
equates to approximately 20% of the £3m 
cash released from the 2014 year of account. 
These dividends will be payable to shareholders 
on the register on 9 June 2017. If approved, 
the dividend will be paid in a single payment 
on 7 July 2017. 
Outlook
Our strategy of providing access to insurance 
exposures at Lloyd’s continues to develop. 
We see opportunities to both develop access 
to syndicates at Lloyd’s and to build on the 
structure for participation by private capital.
Although the 2015 underwriting year is 
expected to produce a good result, early 
indications for the 2016 underwriting year 
show lower returns on capacity. We see 
lower expected profitability as an opportunity 
to continue to build the portfolio of capacity 
by purchasing LLUs at reduced prices.
Board 
This is my final set of annual results as 
Chairman, and in the years since we 
launched the Company in 2007 we have 
substantially grown the portfolio of capacity 
and our financial strength. I am delighted 
that Michael Cunningham is taking over 
the role of Chairman.
Sir Michael Oliver
Non-executive Chairman
27 May 2017
Dividends (p)
3.6
1.5 1.5 1.5
2016 5.5
2015 5.0
2014 5.1
Final dividend 
Special dividend 
5.5
+10%
3.5
4.0
14 15 16
Strategic report
Annual report and financial statements 2016 — Helios Underwriting plc 5 Chief Executive’s review
Continuing to grow
Highlights
Growth in capacity 
through acquisitions
The strategy of building a portfolio of 
underwriting capacity at Lloyd’ s has continued 
through the purchase of further corporate 
members. There remains a steady flow 
of vehicles for sale as existing owners wish 
to cease underwriting due to a change 
of circumstances. Since 1 January 2016 
£7.9m of capacity has been acquired. 
We remain selective on the purchases and 
have encountered reticence from potential 
vendors as the prices offered do not match 
their expectations. Premiums over the 
Humphrey’ s value are no longer paid and as the 
soft market conditions are reflected in the profits 
generated and auction values, we would expect 
discounts on the Humphrey’ s value to increase.
Following the close of 2014 year of account, 
another very profitable year, further vehicles 
are expected to be marketed as the impact 
of the soft insurance market affects the future 
returns to be generated by LLVs. We continue 
to expect resistance from vendors regarding 
our value expectations. There remains a risk 
to the implementation of our strategy if suitable 
vehicles are not available at attractive prices.
Summary of acquisitions
Cash
consideration
£m
Capacity
£m
Humphrey
value
£m
Premium
over
Humphrey
Devon Underwriting Limited 1.1 1.2 1.0 115%
Nameco (No 346) Limited 3.7 3.3 3.4 109%
Pre-capital raise 4.8 4.5 
Salviscount LLP 0.8 1.0 0.8 101%
Pooks Limited 0.9 0.8 0.9 98%
Charmac Underwriting 2.2 1.6 2.3 96%
Post-capital raise 3.9 3.4 
Total since 1 January 2016 8.7 7.9 
Quality of portfolio
We continue to focus ruthlessly on the quality 
syndicates. So, participations on weaker 
syndicates in acquired portfolios are sold to 
maintain the overall quality. The six largest 
participations with the leading managing 
agents at Lloyd’s account for 77% of the 
portfolio. These participations in syndicates 
managed by these managing agents 
represent shares in the better managed 
businesses at Lloyd’s. 
The underwriting results of the Helios portfolio 
have consistently outperformed the Lloyd’s 
market average. Helios’ average return on 
capacity over the last three closed years 
is 14.3% and is on average 3.69% higher 
than the average of the Lloyd’s market. 
The combined ratio of the portfolio (before 
Helios corporate costs) has been 5.79% lower 
on average over the last three calendar years. 
These incremental returns demonstrate the 
diversity and the breadth of underwriting 
expertise within the businesses comprising 
the portfolio of syndicate capacity.
• 77% of the portfolio managed by 
leading managing agents at Lloyd’s 
• Helios portfolio underwriting 
results for 2014 underwriting 
year outperform Lloyd’s average 
return on capacity by 4.7% 
• Helios cedes 70% of portfolio at 
the start of the underwriting year
• Helios expects to retain over 50% 
of overall underwriting result by 
the close of the underwriting year
Maintaining the quality of the portfolio.
Helios return on 
capacity is on average 
3.6% higher than the 
Lloyd’s market over the 
last three closed years.
Nigel Hanbury
Chief Executive
6 Helios current portfolio
Top six holdings by managing agent
Syndicate Managing agent
2017 Helios
portfolio
capacity
 £’000
2017
Helios
portfolio
 % of total Largest class
510/557 T okio Marine Kiln Syndicates Ltd 6,400 18 Composite/Non-marine XL
623/6107 Beazley Furlonge Ltd 5,695 16 Composite/Reinsurance
2791/6103 Managing Agency Partners Ltd 4,456 13 Composite/Reinsurance
33/6104 Hiscox Syndicates Ltd 4,457 13 Composite/Reinsurance
609 Atrium Underwriters Ltd 3,395 10 Composite
6117 Argo Managing Agency 2,628 7 Reinsurance
Sub-total 27,031 77
Other 8,010 23
Total 2017 Helios portfolio 35,041 100
Source: 2017 syndicate capacities sourced from Lloyd’s.
Reinsurance quota share
The use of quota share reinsurance to 
provide access to the Lloyd’s underwriting 
exposures for reinsurers and private capital 
has been expanded. The core of the panel 
of reinsurers remains XL Group plc and 
Everest Reinsurance Bermuda Limited.
This reinsurance reduces the exposure 
of the portfolio and assists in the financing 
of the underwriting capital. Helios will seek 
to reinsure a significant proportion of the 
capacity at the start of the underwriting 
year to mitigate the open-year underwriting 
exposures. For corporate members acquired 
during the year, a proportion of the “on-risk” 
capacity will be ceded to reinsurers whilst 
the capacity on older years will be retained 
100% by Helios. Therefore, the proportion 
of the overall capacity that Helios retains 
is expected to rise as further corporate 
members are acquired in the future. The 
profits earned after the company has been 
acquired will be recognised by Helios.
The table shows that the Helios retained 
capacity increases significantly in years 
2 and 3 as further corporate members 
are acquired and the older years are 
not reinsured. Capacity on underwriting 
years after 18 months of development 
is substantially “off risk” as the underlying 
insurance contracts have mostly expired. 
Therefore, the profits from the capacity 
on the older years are retained 100% by 
Helios. The proportion of overall capacity 
retained by Helios for the 2015 and 2016 
underwriting years is expected to increase 
to approximately 50% as further corporate 
members are acquired. 
Year of account – £m
2014 2015 2016 2017
Helios capacity at outset 5.4 6.1 8.4 9.8
Retained capacity in year 1 2.5 4.6 2.4 0.7
Retained capacity in years 2 and 3 12.7 7.2 1.9 — 
Helios retained capacity 20.6 17.9 12.7 10.5
% of off-risk capacity 62% 31% 15% — 
Ceded capacity at outset 12.7 14.3 19.7 22.8
Further capacity ceded to QS 2.2 2.2 3.5 1.7
Total capacity ceded 14.9 16.5 23.2 24.5
Current total capacity 35.5 34.4 35.9 35.0
Helios share of total capacity 58% 52% 35% 30%
Strategic report
Annual report and financial statements 2016 — Helios Underwriting plc 7 Development of profit estimates
As Helios has no active involvement in the 
underwriting or management of the syndicates 
on which it participates, it relies on information 
on forecast profitability of the portfolio that is 
released on a quarterly basis by the managing 
agents of the syndicates. The managing 
agents have traditionally been conservative 
in the estimation of the profitability of a year 
of account, waiting until the development of 
the underlying reserves for the claims can 
be assessed with greater certainty. 
The capacity acquired on the “off-risk” years 
that is retained 100% by Helios contributes 
a significant part of the profits of the Group. 
The chart below indicates that a significant 
proportion of the improvement in the estimates 
of profitability of syndicates are declared by 
the managing agents in the last 12 months 
to the close of an underwriting year. Helios 
benefits from the conservative nature of the 
managing agents.
Risk management
Helios continues to ensure that the portfolio 
is well diversified across classes of businesses 
and managing agents at Lloyd’s. 
The purchase of quota share reinsurance cedes 
70% of the risk on the younger or “on-risk” 
years, which has remained consistent for 
the last three years. The market conditions 
continue to soften even as the incidence 
of insured natural disasters and large loss 
events have been above normal expectations 
in 2016. This has allowed the insurance 
industry to generate adequate returns 
on capital and thereby attract new capital 
to the industry. 
There is today a strong consensus in the 
insurance industry that the continued 
pressure on rates will have to slow shortly. 
It might take a catastrophe, or series of 
catastrophes, on a very large scale to 
materially turn the market for short-tail lines 
of business. The high aggregation of coastal 
exposures in the US and other developed 
markets is one reason why such massive 
dislocations cannot be ruled out. 
The biggest single risk faced by insurers 
arises from the possibility of mispricing 
insurance on a large scale. This is mitigated 
by the diversification of the syndicate 
portfolio and by the depth of management 
experience within the syndicates that Helios 
supports. These management teams have 
weathered multiple market cycles and the 
risk management skills employed should 
reduce the possibility of substantial 
under-reserving of previous-year underwriting.
We assess the downside risk in the event 
of a major loss through the monitoring of the 
aggregate net losses estimated by managing 
agents to the catastrophe risk scenarios 
(“CRS”) prescribed by Lloyd’s. 
The individual syndicate net exposures will 
depend on the business underwritten during 
the year and the reinsurance protections 
purchased at syndicate level.
The aggregate exceedance probability 
(“AEPs”) assess the potential impact across 
the portfolio from either single or multiple 
large losses with a probability of occurring 
greater than once in a 30-year period.
In addition, Helios buys stop loss reinsurance 
that will mitigate the impact of a significant 
loss to the portfolio.
For 2017, the scope of the stop loss cover has 
been rationalised and terms have been included 
which will assist in funding a large loss.
Chief Executive’s review continued
HUW’s aggregate current and historic  
quarterly progression of mid-point estimates (%)
Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12
Return on premium limit (%)
15
10
5
0
-5
20
 2015 YOA
 2011 YOA
 2014 YOA
 2010 YOA
 2013 YOA
 2009 YOA
 2012 YOA
 2008 YOA
CRS (catastrophe risk scenarios) – gross and net reinsurance (%)
AEP 1 in 30 – whole world 
natural catastrophes
AEP 1 in 30 – 
US windstorm
RDS terrorism – 
Rockefeller Center
AEP 1 in 30 – 
North America earthquake
�  Final net loss 
as percentage 
of 2017 capacity
�   Final net loss 
as percentage 
of 2016 capacity
Note:  The chart shows the new whole world AEP and the two other compulsory AEPs. It also shows one of the two terrorism RDSs, which are the only compulsory RDSs. The AEP 
1 in 30 figure is the weighted average of each syndicates’ 1 in 30 projections which serves as a guide to the portfolio aggregate. The aggregate AEP also does not factor 
in diversification. 
Source: 2016/7 syndicate business plans.
9.0
10.0
29.0
21.0
20.0
14.0
14.0
Helios Underwriting plc — Annual report and financial statements 2016 8 Capacity value
The value of the portfolio of the syndicate 
capacity remains the major asset of the 
Group and an important factor in delivering 
overall returns to shareholders. The adjusted 
net asset value (“ANAV”), being the value of 
the net tangible assets of the Group, 
together with the current value of the 
portfolio capacity, is a key management 
metric in determining growth in value 
to shareholders. 
The Board recognises that the average prices 
derived from the annual capacity auctions 
managed by the Corporation at Lloyd’s could 
be subject to material change if the level of 
demand for syndicate capacity reduces. 
Notwithstanding the average prices derived 
from the auction process, each of the syndicates 
will have a track record of trading profitability 
and generating cash.
The 2016 auctions valued the Helios portfolio 
at 31 December 2016 at £14.9m. Applying 
the 2015 auction average prices to the same 
portfolio, the overall value was very similar at 
£14.9m. There were variations in the prices 
achieved by individual syndicates between 
the years. 
The accounting policy requires an assessment 
of the carrying value of each syndicate 
participation against the latest average 
auction prices. The impairment charge 
for this year of £555,000 (2015: £63,000) 
results in a reduction in the fair value of the 
syndicate capacity held on the balance sheet. 
The two syndicates that mainly contributed 
to this impairment charge were Syndicate 
2010 (Cathedral) and Syndicate 386 (QBE 
Liability). The excess supply of capacity over 
demand for these participations at the last 
auction, the Board believes, was due to 
circumstances peculiar to each syndicate. 
Should the average auction prices for these 
two syndicates exceed the current carrying 
value in the future; the impairment charge 
could be reversed.
These movements in the carrying value of 
capacity have no impact on cash flow.
For calculation of the ANAV, the carrying 
value of the capacity in the balance sheet 
is replaced by the total current portfolio 
value. Therefore, this impairment charge 
does not impact the ANAV of the Group.
Capital position 
The underwriting capital for the Helios 
portfolio is supplied as follows:
Underwriting capital 
as at 31 December
2016
£m
2015
£m
Reinsurance panel 13.6 10.8
Helios own funds 4.1 3.9
Group letters of credit 1.9 1.4
Total 19.6 16.1
Helios has generated free cash of £3m in 
2016 (2015: £1.8m) from the distribution of 
its share of the final underwriting profits of the 
2014 underwriting year. These profits have 
assisted in funding the recent acquisitions 
and will provide working capital for the next 
12 months. 
Corporate, social and 
environmental responsibility
Helios aims to meet its expectations of 
its shareholders and other stakeholders 
in recognising, measuring and managing 
the impacts of its business activities. 
As Helios manages a portfolio of Lloyd’s 
syndicate capacity, it has no direct responsibility 
for the management of those businesses. 
Each managing agent has responsibility 
for the management of those businesses, 
their staff and employment policies and 
the environmental impact. 
Therefore, the Board does not consider 
it appropriate to monitor or report any 
performance indicators in relation to 
corporate, social or environmental matters.
Sir Michael Oliver has been our Chairman 
since the Company was created in 2007. 
Sadly he has decided that it is time to 
stand down at this year’s AGM in June. 
His experience and wise counsel was 
invaluable when the Company was launched 
as a new spread underwriting vehicle and 
has continued to be through all stages of 
its development. I would like to take this 
opportunity to extend our heartfelt gratitude 
to him and wish him well for the future.
Nigel Hanbury
Chief Executive
26 May 2017
2017 102
2016 112
2015 91
2014 79
2013 42
Capacity value per share (p)
Note:  Capacity value is derived from the weighted average of the prices at the capacity auction managed by Lloyd’s.
102
15 16 17 14 13
-9%
Strategic report
Annual report and financial statements 2016 — Helios Underwriting plc 9 The underwriting results of the Helios portfolio 
of syndicates have consistently outperformed 
the Lloyd’ s market average both on an annually 
accounted basis measured by combined ratio 
and on a three-year account basis, measured 
by return on underwriting capacity. 
The calendar year combined ratio of the 
portfolio (before Helios corporate costs) was 
94.6% in 2016 (2015: 83.4%). The Helios 
portfolio continues to outperform the Lloyd’s 
combined ratio, which was 97.9% in 2016. 
The increase in the calendar year combined 
ratio was driven in large part by a series 
of major losses. These losses included 
Hurricane Matthew and wildfires at Fort 
McMurray in Canada. Despite the major 
losses suffered during 2016, the 2016 
three-year account is expected to remain 
profitable, although property reinsurance 
remains on risk until 30 June 2017, while 
other classes of business can be on risk 
until 31 December 2017.
Over the last three calendar years, the average 
combined ratio of the Helios portfolio was 86.4%, 
outperforming Lloyd’ s by 5.7 percentage points 
a year. These incremental returns compared 
with the Lloyd’s market average demonstrate 
the quality of the syndicates in the Helios 
portfolio. The chart below shows the 
combined ratio of the Helios portfolio 
compared with Lloyd’s for the last three 
calendar years from 2014 to 2016.
With the closure of the 2014 account at 
31 December 2016 the Helios portfolio has 
outperformed Lloyd’s for the sixth successive 
three-year account result, reporting a profit of 
15.6% on capacity compared with the Lloyd’s 
market average of 10.9% of capacity, an 
outperformance of 4.7% of capacity. The 
chart below shows the return on capacity of 
the Helios portfolio compared with Lloyd’s for 
the last two closed years from 2013 to 2014 
and includes the mid-point estimated results 
for the 2015 account at Q8.
Underwriting profitability is set to continue for 
the 2015 account with the mid-point estimate 
for the Helios portfolio at Q8 in 2015 being 
8.1% of capacity compared with the Lloyd’s 
market average of 3.8% of capacity.
Global insured major losses, according to 
Swiss Re Sigma, were the highest since 2012 
at $54bn in 2016, up from $38bn in 2015 and 
in line with the inflation adjusted annual average 
for the last ten years of $53bn a year.
The largest insured loss in 2016 was the 
earthquake in Japan in April, with claims 
of $4.9bn. The second costliest event was 
Hurricane Matthew, which resulted in insured 
losses of $4bn in the US and the Caribbean. 
Hurricane Matthew, made landfall in Haiti 
as a Category 4 storm on 4 October 2016, 
before following the US coastline for hundreds 
of miles until it made landfall again in South 
Carolina on 8 October 2016 after causing 
storm surge, wind and flood damage, beach 
erosion and infrastructure damage in Florida 
through to North Carolina. 
Hurricane Matthew was a reminder of the 
potential insurance and reinsurance exposures 
from a major hurricane. Research by insurance 
company Validus calculated that had Matthew 
tracked just 30 miles to the west the insured 
loss could have been nearly ten times greater 
than the actual loss at $38bn, while Lloyd’s 
itself models a Florida windstorm landing in 
Miami-Dade County with total insured losses 
of $131bn. Insured losses of either magnitude 
would likely have had a significant impact on 
catastrophe reinsurance rates. 
Outperformance by syndicates 
continues to be expected 
Market conditions remain competitive despite early signs 
of capacity withdrawals from some lines of business.
Lloyd’s Advisers’ report – Hampden Agencies
Helios combined ratio compared with 
Lloyd’s: 2014–2016 (%)
� Helios � Lloyd’s
2014 2015 2016 2013 2014 2015 (e)
81.3
88.4
83.4
90.0
94.6
97.9
� Helios � Lloyd’s market
Helios return on capacity compared with Lloyd’s:  
2013-2014 and 2015 (est. at Q8) (%)
0%
Underwriting year of account
Result as a percentage of capacity
2%
4%
6%
8%
10%
12%
14%
16% Notes to figures
1.  Helios portfolio aggregates include all 
vehicles acquired prior to the declared result 
for each year of account.
2.  Helios 2013 to 2014: Results at 36 months 
calculated from distribution files excluding 
any movement for run-off years.
3.  Lloyd’s 2013 to 2014: Results at 36 months 
calculated from Lloyd’ s global accounts/year-end 
QMR returns. These exclude any movement 
for run-off years.
4.  2015 Q8 based on mid-point of the 2016 Q4 
estimate ranges provided by syndicates.
5.  All returns include standard personal expenses 
but are before members’ agents’ charges.
Source:  
Lloyd’s – pro forma financial statements, 31 December 2016.
14.1
9.3
15.6
10.9
8.1
3.8
Helios Underwriting plc — Annual report and financial statements 2016 10 Financial year results for 2016 reported 
by Lloyd’s and its competitors highlight the 
challenge in an average year for major losses 
of producing an underwriting profit with limited 
support from investment yields and declining 
prior year releases.
The insurance market in 2017
Market conditions remain the most competitive 
in Lloyd’s since the late 1990s when Lloyd’s 
reported four consecutive years of underwriting 
losses on a three-year account basis. So far 
in 2017, the trend of rate reductions has 
continued in most classes of business other 
than motor. There are signs that the level 
of rate reductions is beginning to moderate 
both in insurance and reinsurance classes, 
prompted in some cases by withdrawals 
of capacity.
For 2017, Hampden has a target profit, 
excluding prior year loss reserve development, 
of 0% to 5% of capacity assuming a long-term 
average for catastrophe losses. Pure year 
profitability is becoming increasingly dependent 
on major loss experience. The balance of 
power continues to shift from net sellers of 
reinsurance to net buyers of reinsurance, with 
the traditional reinsurance market facing 
increasing competition from alternative 
capital. Guy Carpenter calculates that 
alternative capital’s market share of global 
reinsurance capital has grown from 8% 
in 2008 to 19% in 2016. 
The return expectations from many alternative 
capital investors are modest. In a 2016 survey, 
Clear Path Analysis spoke to 108 institutional 
asset managers in Europe and the United States 
asking what returns they looked for in Insurance 
Linked Securities. The most frequent target 
return expected by over 30% of those surveyed 
was in the range of 3% to 5%. Despite these 
modest return expectations institutional investors 
continue to be attracted by the low correlation 
of insurance returns to other financial assets.
Syndicates in the Helios portfolio are adapting 
to current market conditions by buying more 
reinsurance or retrocession protection. The 
reinsurance cession ratio of the Helios portfolio 
increased from 17.9% in 2015 to 20.2% in 
2016. Part of the reason for this increase was 
due to portfolio composition – on a like-for-like 
basis the increase in the reinsurance cession 
ratio was from 17.6% to 18.9%. 
The rating environment
Property catastrophe reinsurance rates at 
1 January 2017 have now declined for five 
years in succession. Guy Carpenter’s Global 
Rate on Line Index reduced by 3.7% at 
1 January 2017, compared with reductions 
of 8.8% a year earlier.
Property and casualty insurance rates in the 
United States began to decline during the 
first quarter of 2015. Rates have continued 
to reduce for nine successive quarters with 
the Council of Insurance Agents and Brokers 
reporting rate reductions averaging 2.5% 
in Q1 2017, although the quantum of rate 
reductions is showing signs of moderating 
from reductions reported of 3.3% in Q4 2016.
The economy drives the property casualty 
insurance industry with net written premiums, 
a proxy for demand, tracking nominal GDP 
fairly well other than in “hard markets”. For 
the full year 2016, US nominal GDP grew by 
2.9%, down from 3.7% in 2015. Net written 
premium growth for all property/casualty 
insurers in the US was 2.8% for the first three 
quarters of 2016. Since the recession ended 
in Q2 2009 the economic recovery measured 
by real GDP growth has been muted compared 
with previous post-recession recoveries, only 
growing faster than 3% (at an annual rate) in 
a calendar quarter eight times out of 31 quarters 
and once in the last ten.
Supply of capital at all-time highs
Good underwriting results continue to attract 
capital to both the insurance industry and, in 
particular, the reinsurance industry searching 
for yield. Much of this is “alternative capital” 
and focused on reinsurance business through 
short-term structures such as catastrophe 
bonds and collateralised reinsurance. During 
2016 global reinsurer capital again reached 
a record high, according to Aon Benfield, of 
$595bn, increasing by 5% at the 2015 year end. 
Alternative capital grew by 13% to $81bn 
principally reflecting additional deployment 
into collateralised reinsurance structure. 
The insurance cycle is a classic supply-led cycle 
where pricing is driven more by changes in the 
supply of capital to the market than changes 
in demand for insurance and reinsurance. 
The growth in alternative capital has had a 
dramatic impact on pricing with Guy Carpenter 
assessing rate decreases on reinsurance cover 
bought through insurance-linked securities 
as high as 30% in the fourth quarter of 2016, 
which compares with much more modest 
rate reductions for global reinsurance at 
1 January 2017 of 3.7%. 
Global reinsurance capital has increased 
by 75% since 2008 while insurance capital 
measured by the United States property and 
casualty policyholders’ surplus also reached 
a record high at the end of 2016 of $701bn, 
an increase of 54% on 2008. 
In current market conditions profit-orientated 
organic growth is difficult and is the reason 
why many listed companies favour capital 
management with excess capital being repaid 
to shareholders through share buy-backs or 
special dividends. Capital repatriation is a 
reflection of underwriting discipline with Beazley, 
Lancashire and Hiscox ranked in the top four 
for capital repatriation out of 23 major reinsurers 
in the Aon Benfield Aggregate Report for 2016 
measured by dividends and share buy-backs 
as a percentage of opening equity. It is no 
coincidence that syndicates managed by 
Beazley (Syndicate 623), Hiscox (Syndicate 33) 
and Lancashire (Syndicate 2010) comprise in 
total 27.5% of the Helios syndicate portfolio 
for 2017. 
Investment returns 
no longer provide a 
cushion to sub par 
underwriting.
Strategic report
Annual report and financial statements 2016 — Helios Underwriting plc 11 Lloyd’s Advisers’ report – Hampden Agencies continued
The investment environment
Declining bond yields in 2016 boosted 
investment returns with the US ten-year 
treasury yield declining from 2.2% on average 
in 2015 to 1.8% in 2016. The yield on the 
US ten-year treasury has been below 3% for 
over five years. As long as new money yields 
are below the embedded yield (purchase 
price) of maturing bonds, portfolio yields of 
insurers will continue to fall, putting upward 
pressure on premium rates. Research from 
the Insurance Information Institute suggests 
that US insurers at year-end 2016 were 
earning a pre-tax new money yield of 1.6% 
compared with a pre-tax embedded yield 
of 3.0% using the US-five year treasury 
note as a proxy for new money yield. 
The importance of 
conservative reserving 
Bottom-line results in the current rating 
environment continue to be reliant on 
conservative reserving, given Hampden’s 
modest forecast for pure year underwriting 
return on the 2017 account in a range of 0% 
to 5% of capacity. We consider the Helios 
portfolio of syndicates to be conservatively 
reserved overall with the last three-year account 
closed result for 2014 including a prior release 
of 4.0% of capacity from the 2013 and prior 
years. Going forward, however, we see some 
moderation of reserve releases given that the 
“hard market” years of 2002–2006 reserves 
on liability business have now largely been 
distributed whilst market conditions have 
been more competitive since 2007. 
A continued focus on quality
Our focus in this market is to focus syndicate 
portfolios on quality syndicates with key success 
characteristics, being conservative reserving 
and a focus on profit rather than growth.
The Helios portfolio for 2017 continues to 
provide a good spread of business across 
managing agents and classes of business. 
The two largest classes of business remain 
reinsurance at 26.0% (2016: 28.6%) and 
US dollar property insurance at 16.9% 
(2016: 17.7%) shown in the first “doughnut” 
chart below.
The measure of quality assessed by Hampden is 
the grading we assign each year to syndicates. 
Syndicates graded “D” are not recommended 
for support while the four positive gradings 
range from “AA” (excellent), “A” (very good), 
“B” (good), “C” (market average).
Helios continues to focus its portfolio on the 
quality syndicates which have traditionally 
outperformed the Lloyd’s market result to 
a greater degree in “soft market” conditions 
compared with “hard market” conditions. 
The Helios portfolio split by Hampden grading 
for 2017 contains 56% (2016: 55.6%) 
underwriting capacity in syndicates graded 
“AA” and “A” by Hampden, as shown in 
the second “doughnut” chart below. 
Hampden Agencies
26 May 2017
Non-US$ non-marine liability 7.9%
Non-US$ non-marine property 6.9%
Marine general 5.2%
Energy 2.8%
Motor 9.6%
Accident and health 3.5%
Aviation 2.3%
Pecuniary loss 3.4%
26.0% Reinsurance
0.3% Life
16.9% US$ non-marine property
15.1% US$ non-marine liability
Classes of business for 2017 (%)
% of total gross 
premiums
B 29.3%
C 14.7%
21.7% AA
0% D
34.3% A
Helios syndicate capacity for 2017 by Hampden grading (%)
% of portfolio  
capacity
Helios Underwriting plc — Annual report and financial statements 2016 12 Summary financial information
The information set out below is a summary of the key items that the Board assesses in estimating the financial position of the Group. 
Given the Board has no active role in the management of the syndicates within the portfolio, the following approach is taken.
A) It relies on the quarterly syndicate forecasts to assess its share of the underlying profitability of the syndicates within the portfolio.
B)  It calculates the amounts due to/from the quota share reinsurers in respect of their share of the profits/losses as well as fees and 
commissions due.
C) An adjustment is made to exclude pre-acquisition profits on companies bought in the year.
D) Costs relating to stop loss reinsurance and operating costs are deducted.
Year to 31 December
2016
£’000
2015
£’000
Underwriting profit 2,208 2,218
Other income:
– fees from reinsurers 557 385
– investment income 347 91
Total other income 904 476
Costs:
– pre-acquisition (63) (200)
– stop loss costs (248) (407)
– operating costs (1,467) (1,334)
Total costs (1,778) (1,941)
Operating profit before goodwill and impairment 1,334 753
Goodwill on bargain purchase — 244
Impairment charge (555) (199)
Tax (66) 112
Profit for the year 713 910
Year to 31 December 2016
Underwriting year
Helios retained
 capacity at
 31 December
2016
£m
Portfolio 
mid-point 
forecasts 
Total profit 
currently 
estimated
£’000
% earned 
in the 2016 
calendar 
year
Helios 
profits
£’000
2014 20.6 15.5% 3,193 52% 1,661
2015 16.1 8.2% 1,314 79% 1,031
2016 10.8 N/A (484)
2,208
Year to 31 December 2015
Underwriting year
Helios retained
 capacity at
 31 December
2015
£m
Portfolio 
mid-point 
forecasts 
Total profit 
currently 
estimated
£’000
% earned 
in the 2015 
calendar 
year
Helios 
profits
£’000
2013 20.6 14.2% 2,925 44% 1,274
2014 14.3 8.9% 1,273 74% 939
2015 10.6 N/A 5
2,218
Strategic report
Annual report and financial statements 2016 — Helios Underwriting plc 13 Summary balance sheet
See Note 26 for further information.
2016
£’000
2015
£’000
Intangible assets 10,732 8,511 
Funds at Lloyd’s 4,083 3,894 
Other cash 7,229 2,973 
Other assets 3,480 1,231 
Total assets 25,524 16,609 
Deferred tax 3,581 3,172 
Other liabilities 4,618 3,163 
Total liabilities 8,199 6,335 
Total syndicate equity 5,194 6,149
Total equity 22,519 16,423
Cash flow
Helios has generated £3.4m of cash in 2016 from the distribution of the profits from the 2013 underwriting year.
Analysis of free working capital
Year to
31 December
2016
£’000
Year to
31 December
2015
£’000
Opening balance (free cash) 2,973 2,704 
Income
Cash acquired on acquisition 413 977 
Distribution of profits (net of tax retentions) 3,378 2,510 
Transfers from Funds at Lloyd’s 3,775 1,167 
Other income 271 437 
Proceeds from the issue of shares 5,722 —
Transfers from PTF accounts (early release) — 221 
Expenditure
Operating costs (815) (775)
Reinsurance cost (237) (275)
Payments to QS reinsurers (741) —
Acquisition of LLVs (5,592) (2,316)
Transfers to Funds at Lloyd’s (1,524) (1,351)
Tax (95) (5)
Dividends paid (299) (321)
Closing balance 7,229 2,973 
Summary financial information continued
Helios Underwriting plc — Annual report and financial statements 2016 14 Annual report and financial statements 2016 — Helios Underwriting plc 15
Governance
Board of Directors
Sir James Michael Yorrick Oliver, 76
(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 Kitcat & Aitken for 20 years and 
subsequently managing director of Carr, 
Kitcat & Aitken.
Nigel John Hanbury, 60
(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, 59
(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.
Harold Michael Clunie Cunningham, 69 
(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, 61
(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.
Arthur Roger Manners, 57
(Finance Director) 
Arthur Manners has over 20 years’ experience in 
the insurance industry and has, since June 2015, 
been acting as a consultant to the Company. 
The role at Helios Underwriting plc is part time 
and he is also finance director and compliance 
officer for insurance consultancy Total Risk 
Solutions (London) Limited, non-executive director 
of Gemini Insurance Brokers (Hong Kong) Limited 
and chairman of the trustees of Beazley Furlonge 
Pension Scheme. Prior to holding these positions, 
he was on the senior management team (including 
acting as finance director and group company 
secretary) at London Stock Exchange-listed 
insurer Beazley Group plc. Arthur Manners is 
a Chartered Accountant.
Committee membership 
Experienced leadership
 N
 A N
 N  
 A Audit Committee  N Nomination and Remuneration Committee  Chairman of Committee Helios Underwriting plc — Annual report and financial statements 2016 16
Report of the Directors – Year ended 31 December 2016
The Directors present their report and the audited Group and Parent Company Financial Statements for the year ended 31 December 2016.
Principal activity, 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 is included in the Chairman’ s Statement, the Chief Executive’ s Review 
and the Lloyd’s Advisers’ Report.
Results and dividends
The Group result for the year ended 31 December 2016 is shown in the Consolidated Statement of Comprehensive Income. The Group profit 
for the year after taxation was £713,000 (restated 2015 (Note 27): £910,000).
A dividend of 5.0p per share was paid during calendar year 2016 totalling £525,000 (2015: £457,000).
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-third of the Directors are required to retire from the Board by rotation at the forthcoming Annual General 
Meeting and may offer themselves for re-election as Directors. As the Board consists of six Directors, two are required to retire by rotation.  
Nigel Hanbury and Andrew Christie therefore retire by rotation and offer themselves for re-election as Directors of the Company.
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 2016 is nil (2015: nil).
Substantial shareholdings
The substantial shareholders shown below were as at 19 May 2017:
Number 
of shares % holdings
Will Roseff 3,711,542 25.41%
Nigel John Hanbury (either personally or has an interest in) 1,663,016 11.39%
Hampden Capital plc 1,214,560 8.32%
Helium Special Situations Fund 866,667 5.93%
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 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 26 May 2017.
Nigel Hanbury
Chief Executive
26 May 2017 Governance
Annual report and financial statements 2016 — Helios Underwriting plc 17
Corporate governance statement – Year ended 31 December 2016
The Company’s shares are traded on AIM of the London Stock Exchange. The Company is not required to report on compliance with the 
UK Corporate Governance Code (“the Code”); however, 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.
Board balance, Independence and review
The Board consists of two Executive Directors and four Non-executive Directors. The Board concludes that all the Non-executive Directors 
are independent in character and judgement. The Board will review on an ongoing basis whether there are relationships or circumstances 
which are likely to affect or could affect the independence of the Non-executive Directors.
The Board continually considers its own performance and effectiveness and that of its Committees. Throughout the year the Board has 
continued to review and assess all policies and practices to comply wherever possible with corporate governance best practice.
Committees
Audit Committee
The members of the Audit Committee are Michael Cunningham and Andrew Christie, who chairs the Committee. The Committee met twice 
during the year to fulfil its duties and with auditors without management present.
The Committee is comprised of independent Non-executive Directors only. The major tasks undertaken by the Committee include monitoring 
the integrity of the Company’s financial reporting, reviewing internal controls and risk management systems and oversight of the external 
audit process.
The Committee meets the auditors and reviews reports from the auditors relating to the accounting and internal control systems. It also 
oversees the relationship with the external auditors including reviewing the effectiveness of the audit; assessing annually their independence 
and objectivity, taking into account relevant UK professional and regulatory requirements; and the relationship with the auditors as a whole, 
including non-audit services and monitoring the auditors’ compliance with relevant ethical and professional guidance. The Committee reviews 
the Company’s compliance with accounting, legal and listing requirements.
Nomination and Remuneration Committee
The members of the Nomination and Remuneration Committee are Sir Michael Oliver, Michael Cunningham, who chairs the Committee, 
and Andrew Christie, all of whom are independent Non-executive Directors.
The full Committee met three times during the year to fulfil its duties. In respect of its remuneration duties, the Committee determines and 
agrees with the Board policies for pay; bonuses; incentives and other rewards; employee benefits; and the conditions of termination of 
employment. The Committees’ terms of reference try to ensure that members of the executive management are provided with sufficient 
incentives to encourage enhanced performance and are in a fair and responsible manner rewarded for their individual contribution to the 
success of the Company.
The Company has adopted a model code for Directors’ dealings which is appropriate for an AIM-quoted company and the Directors comply 
with Rule 21 of the AIM Rules relating to Directors’ dealings. 
Board and Committee meeting attendance
Board Audit Committee
Nomination and  
Remuneration Committee
Director
Possible 
number of 
meetings
Number 
of meetings
 attended
Possible
number of
meetings
Number
of meetings
 attended
Possible
number of
meetings
Number
of meetings
 attended
Sir Michael Oliver 8 7 — — 3 3
Nigel Hanbury 8 8 — — — —
Jeremy Evans 8 7 — — — —
Michael Cunningham 8 6 2 2 3 3
Andrew Christie 8 7 2 2 3 3
Arthur Manners 7 7 — — — —
Average attendance 89% 100% 100%
Arthur Manners was appointed as a Director on 8 April 2016 and was only able to attend a possible seven meetings. Helios Underwriting plc — Annual report and financial statements 2016 18
Corporate governance statement continued – Year ended 31 December 2016
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
Helios UTG Partner Limited 27 August 2013 Not a director 27 August 2013
Halperin Underwriting Limited 20 February 2014 20 December 2013 9 July 2004
Bernul Limited 4 June 2014 27 March 2014 4 June 2014
Dumasco Limited 16 September 2014 24 September 2014 16 September 2014
Nameco (No. 311) Limited 1 November 2001 8 January 2015 22 September 1999
Nameco (No. 402) Limited 1 November 2001 20 February 2015 24 September 1999
Updown Underwriting Limited 24 March 2015 13 March 2015 31 December 2002
Nameco (No. 507) Limited 1 November 2001 12 June 2015 20 September 2000
Nameco (No. 76) Limited 1 November 2001 27 August 2015 2 October 2000
Kempton Underwriting Limited 15 October 2013 27 August 2015 15 October 2013
Devon Underwriting Limited 21 January 2016 21 January 2016 21 January 2016
Nameco (No. 346) Limited 1 November 2001 27 May 2016 22 September 1999
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. Governance
Annual report and financial statements 2016 — Helios Underwriting plc 19
Statement of Directors’ responsibilities – Year ended 31 December 2016
The Directors are responsible for preparing the Strategic Report, the 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. 
The Company is compliant with AIM Rule 26 regarding the Company’s website.
Nigel Hanbury
Chief Executive
26 May 2017 Helios Underwriting plc — Annual report and financial statements 2016 20
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 2016 which comprise the Consolidated 
Statement of Comprehensive Income, the Consolidated and Parent Company Statements of Financial Position, the Consolidated and 
Parent Company Statements of Changes in Equity, the Consolidated and Parent Company Statements of Cash Flows and the related notes. 
The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards 
(“IFRS”) 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’s and the Parent 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 the Parent Company’s affairs as at 31 December 2016 
and of the Group’s profit for the year then ended;
 » the 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, based on the work undertaken in the course of the audit:
 » The information given in the Strategic Report and the Report of the Directors for the financial year for which the Financial Statements 
are prepared is consistent with the Financial Statements.
 » The Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. 
Matters on which we are required to report by exception
In light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified 
material misstatements in Strategic Report and the Report of the Directors.
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.
Neil Coulson (Senior statutory auditor)  1 Westferry Circus
For and on behalf of PKF Littlejohn LLP Canary Wharf
Statutory auditors London E14 4HD
26 May 2017 Financial statements
Annual report and financial statements 2016 — Helios Underwriting plc 21
Financial statements
Consolidated statement of comprehensive income – Year ended 31 December 2016
Note
Year ended
31 December
2016
£’000
Restated*
year ended
31 December
2015
£’000
Gross premium written 6 31,307 21,511
Reinsurance premium ceded 6 (7,772) (5,582)
Net premium written 6 23,535 15,929
Change in unearned gross premium provision 7 (826) (162)
Change in unearned reinsurance premium provision 7 199 93
Net change in unearned premium provision 7 (627) (69)
Net earned premium 5,6 22,908 15,860
Net investment income 8 885 255
Other income 2,134 536
Revenue 25,927 16,651
Gross claims paid (13,355) (9,349)
Reinsurers’ share of gross claims paid 2,472 1,650
Claims paid, net of reinsurance (10,883) (7,699)
Change in provision for gross claims 7 (3,826) 615
Reinsurers’ share of change in provision for gross claims 7 1,904 (431)
Net change in provision for claims 7 (1,922) 184
Net insurance claims incurred and loss adjustment expenses 6 (12,805) (7,515)
Expenses incurred in insurance activities (10,819) (7,571)
Other operating expenses (969) (812)
Operating expenses 9 (11,788) (8,383)
Operating profit before goodwill and impairment 6 1,334 753
Goodwill on bargain purchase 21 — 244
Impairment of goodwill 13,21 — (136)
Impairment of syndicate capacity 13 (555) (63)
Profit before tax 779 798
Income tax (charge)/credit 10 (66) 112
Profit for the year 713 910
Other comprehensive income
Foreign currency translation differences — —
Income tax relating to the components of other comprehensive income — —
Other comprehensive income for the year, net of tax — —
Total comprehensive income for the year 713 910
Profit for the year attributable to owners of the Parent 713 910
Total comprehensive income for the year attributable to owners of the Parent 713 910
Earnings per share attributable to owners of the Parent
Basic and diluted 11 6.22p 9.67p
* Refer to Note 27 for details regarding the restatement of the profit for the year 2015 as a result of a reclassification.
The profit attributable to owners of the Parent, the total comprehensive income and earnings per share set out above are in respect 
of continuing operations.
The notes are an integral part of these Financial Statements. Helios Underwriting plc — Annual report and financial statements 2016 22
Consolidated statement of financial position – At 31 December 2016
 
Note
31 December
2016
£’000
Restated*
31 December
2015
£’000
Assets
Intangible assets 13 10,732 8,511
Financial assets at fair value through profit or loss 15 45,580 31,797
Reinsurance assets:
– reinsurers’ share of claims outstanding 7 9,674 5,657
– reinsurers’ share of unearned premium 7 2,548 1,501
Other receivables, including insurance and reinsurance receivables 16 30,243 20,427
Deferred acquisition costs 17 4,255 2,926
Prepayments and accrued income 187 144
Cash and cash equivalents 6,212 3,634
Total assets 109,431 74,597
Liabilities
Insurance liabilities:
– claims outstanding 7 50,087 32,985
– unearned premium 7 16,821 11,169
Deferred income tax liabilities 18 3,581 3,172
Other payables, including insurance and reinsurance payables 19 14,708 9,360
Accruals and deferred income 1,715 1,488
Total liabilities 86,912 58,174
Equity
Equity attributable to owners of the Parent:
Share capital 20 1,460 1,050
Share premium 20 15,399 9,901
Other reserves — —
Retained earnings 5,660 5,472
Total equity 22,519 16,423
Total liabilities and equity 109,431 74,597
* Refer to Note 27 for details regarding the restatement of the profit for the year 2015 and the other reserves, as a result of a reclassification.
The Financial Statements were approved and authorised for issue by the Board of Directors on 26 May 2017, and were signed on its behalf by:
Nigel Hanbury
Chief Executive
The notes are an integral part of these Financial Statements. Financial statements
Annual report and financial statements 2016 — Helios Underwriting plc 23
Financial statements
Parent Company statement of financial position – At 31 December 2016
Company number: 05892671
Note
31 December
2016
£’000
31 December
2015
£’000
Assets
Investments in subsidiaries 14 19,503 14,706
Financial assets at fair value through profit or loss 15 2,380 60
Other receivables 16 4,488 5,220
Cash and cash equivalents 3,845 2,090
Total assets 30,216 22,076
Liabilities
Other payables 19 328 110
Total liabilities 328 110
Equity
Equity attributable to owners of the Parent:
Share capital 20 1,460 1,050
Share premium 20 15,399 9,901
Retained earnings:
At 1 January 11,015 3,653
Profit for the year attributable to owners of the Parent 2,539 7,819
Other changes in retained earnings (525) (457)
As 31 December 13,029 11,015
Total equity 29,888 21,966
Total liabilities and equity 30,216 22,076
The Financial Statements were approved and authorised for issue by the Board of Directors on 26 May 2017, and were signed on its behalf by:
Nigel Hanbury
Chief Executive
The notes are an integral part of these Financial Statements. Helios Underwriting plc — Annual report and financial statements 2016 24
Consolidated statement of changes in equity – Year ended 31 December 2016
Attributable to owners of the Parent
Consolidated Note
Share
 capital
£’000
 Share
 premium
£’000
Other 
reserves
£’000
Retained
earnings
£’000
Total
equity
£’000
At 1 January 2015 as originally reported 22 853 6,996 — 2,636 10,485
Effect of change in accounting policy (see note (i) below) 22 — — — 2,383 2,383
At 1 January 2015 as restated 22 853 6,996 — 5,019 12,868
Total comprehensive income for the year:
Profit for the year – as restated (see note (ii) below) — — — 910 910
Other comprehensive income, net of tax – as restated — — — — —
Total comprehensive income for the year — — — 910 910
Transactions with owners:
Dividends paid 12 — — — (457) (457)
Share issue 20 197 2,905 — — 3,102
Total transactions with owners 197 2,905 — (457) 2,645
At 31 December 2015 – as restated 1,050 9,901 — 5,472 16,423
At 1 January 2016 as originally reported 1,050 9,901 121 5,351 16,423
Effect of reclassification (see note (ii) below) — — (121) 121 —
At 1 January 2016 as restated 1,050 9,901 — 5,472 16,423 
Total comprehensive income for the year:
Profit for the year — — — 713 713
Other comprehensive income, net of tax — — — — —
Total comprehensive income for the year — — — 713 713
Transactions with owners:
Dividends paid 12 — — — (525) (525)
Share issue, net of transaction costs 20 410 5,498 — — 5,908
Total transactions with owners 410 5,498 — (525) 5,383
At 31 December 2016 1,460 15,399 — 5,660 22,519
(i)  The retained earnings as at 1 January 2015 have been restated to reflect the effects of the change in the Group’s accounting policy in accounting for intangible asset, syndicate capacity 
(refer to Note 22).
(ii)  The profit for the year 2015, the other comprehensive income 2015 and the retained earnings as at 31 December 2015 have been restated to reflect the effects of the reclassification 
of foreign exchanges gains and losses, which were originally recognised within the other comprehensive income, to be reclassified and recognised in the underwriting profits in the 
income statement (refer to Note 27).
The notes are an integral part of these Financial Statements. Financial statements
Annual report and financial statements 2016 — Helios Underwriting plc 25
Financial statements
Parent Company statement of changes in equity – Year ended 31 December 2016
Company Note
Share
 capital
£’000
Share
premium
£’000
Other
reserves
£’000
Retained
earnings
£’000
Total
equity
£’000
At 1 January 2015 853 6,996 — 3,653 11,502
Total comprehensive income for the year:
Profit for the year — — — 7,819 7,819
Other comprehensive income, net of tax — — — — —
Total comprehensive income for the year — — — 47,819 7,819
Transactions with owners:
Dividends paid 12 — — — (457) (457)
Share issue 20 197 2,905 — — 3,102
Total transactions with owners 197 2,905 — (457) 2,645
At 31 December 2015 1,050 9,901 11,015 21,966
At 1 January 2016 1,050 9,901 — 11,015 21,966
Total comprehensive income for the year:
Profit for the year — — — 2,539 2,539
Other comprehensive income, net of tax — — — — —
Total comprehensive income for the year — — — 2,539 2,539
Transactions with owners:
Dividends paid 12 — — — (525) (525)
Share issue, net of transaction costs 20 410 5,498 — — 5,908
Total transactions with owners 410 5,498 — (525) 5,383
At 31 December 2016 1,460 15,399 — 13,029 29,888
The notes are an integral part of these Financial Statements. Helios Underwriting plc — Annual report and financial statements 2016 26
Consolidated statement of cash flows – Year ended 31 December 2016
Note
Year ended 
31 December
2016
£’000
Restated*
Year ended
31 December
2015
£’000
Cash flows from operating activities
Profit before tax 779 798
Adjustments for:
– interest received 8 (113) (60)
– investment income 8 (594) (926)
– goodwill on bargain purchase 21 — (244)
– impairment of goodwill 21 — 136
– profit on sale of intangible assets (94) (120)
– impairment of intangible assets 13 555 63
Changes in working capital:
– change in fair value of financial assets held at fair value through profit or loss 8 (256) 360
– (increase)/decrease in financial assets at fair value through profit or loss (6,825) 1,020
– (increase)/decrease in other receivables (3,848) 709
– increase in other payables 3,090 11
– net increase/(decrease) in technical provisions 8,361 (50)
Cash generated from operations 1,055 1,697
Income tax paid (15) 166
Net cash inflow from operating activities 1,040 1,863
Cash flows from investing activities
Interest received 113 60
Investment income 594 926
Purchase of intangible assets 13 (6) (2)
Proceeds from disposal of intangible assets 137 24
Acquisition of subsidiaries, net of cash acquired (4,723) (2,521)
Net cash outflow from investing activities (3,885) (1,513)
Cash flows from financing activities
Net proceeds from issue of ordinary share capital (i) 5,722 —
Dividends paid to owners of the Parent 12 (299) (321)
Net cash inflow/(outflow) from financing activities 5,423 (321)
Net increase in cash and cash equivalents 2,578 29
Cash and cash equivalents at beginning of year 3,634 3,605
Cash and cash equivalents at end of year 6,212 3,634
* Refer to Note 27 for details regarding the restatement of the profit for the year as a result of a reclassification.
(i) Net proceeds from issue of ordinary share capital excludes shares issued via a script dividend of £226,000 and accrued expenses incurred of £40,000.
Cash held within the syndicates’ accounts is £2,163,000 (2015: £1,411,000) of the total cash and cash equivalents held at the year end of 
£6,212,000 (2015: £3,634,000). The cash held within the syndicates’ accounts is not available to the Group to meet its day-to-day working 
capital requirements.
Cash and cash equivalents comprise cash at bank and in hand.
The notes are an integral part of these Financial Statements. Financial statements
Annual report and financial statements 2016 — Helios Underwriting plc 27
Financial statements
Parent Company statement of cash flows – Year ended 31 December 2016
Note
Year ended 
31 December
2016
£’000
Year ended
31 December
2015
£’000
Cash flows from operating activities
Profit before tax 2,334 7,818
Adjustments for:
– investment income/(expenses) 1 (7)
– dividends received (3,226) (3,841)
– impairment of investment in subsidiaries — (4,987)
Changes in working capital:
– change in fair value of financial assets held at fair value through profit or loss (19) —
– increase in financial assets at fair value through profit or loss (2,339) —
– (increase)/decrease in other receivables 5 1,277
– increase/(decrease) in other payables 215 (54)
Net cash (outflow)/inflow from operating activities (3,029) 206
Cash flows from investing activities
Investment (income)/expenses (1) 7
Dividends received 3,226 3,841
Acquisition of subsidiaries 14,21 (4,797) (3,263)
Amounts owed by subsidiaries 23 933 (165)
Net cash (ouflow)/inflow from investing activities (639) 420
Cash flows from financing activities
Net proceeds from issue of ordinary share capital 5,722 —
Dividends paid to owners of the Parent 12 (299) (321)
Net cash inflow/(outflow) from financing activities 5,423 (321)
Net increase in cash and cash equivalents 1,755 305
Cash and cash equivalents at beginning of year 2,090 1,785
Cash and cash equivalents at end of year 3,845 2,090
Cash and cash equivalents comprise cash at bank and in hand.
The notes are an integral part of these Financial Statements. Helios Underwriting plc — Annual report and financial statements 2016 28
Notes to the financial statements – Year ended 31 December 2016
1. General information
The Company is a public limited company listed on AIM. The Company was incorporated in England, is domiciled in the UK and its registered 
office is 40 Gracechurch Street, London EC3V 0BT. The Company participates in insurance business as an underwriting member at Lloyd’s 
through its subsidiary undertakings. 
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.
Change in accounting policy effected in the comparative year
As of 1 January 2015 the Group changed its accounting policy for the accounting for intangible assets, syndicate capacity. The new accounting 
policy has been applied retrospectively and first reflected in the Financial Statements of the year ended 31 December 2015. For details of this 
change, refer to this accounting policy as disclosed further below and Note 22.
Basis of preparation
The Financial Statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as endorsed by the 
European Union (“EU”), IFRS Interpretations Committee (“IFRIC”) interpretations and those parts of the Companies Act 2006 applicable 
to companies reporting under IFRS. 
No statement of comprehensive income is presented for Helios Underwriting plc, as a Parent Company, as permitted by Section 408 
of the Companies Act 2006.
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 principal 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 amounts, events 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 the Company have net assets at the end of the reporting period of £22,519,000 and £29,888,000 respectively.
The Company’s subsidiaries participate as underwriting members at Lloyd’s on the 2014, 2015 and 2016 years of account and they have 
continued this participation since the year end on the 2017 year of account. This underwriting is supported by Funds at Lloyd’s totalling 
£6,006,000 (2015: £5,341,000), letters of credit provided through the Group’s quota share reinsurance agreements totalling £13,641,000 
(2015: £9,378,000) and solvency credits issued by Lloyd’s totalling £837,000 (2015: £3,645,000).
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
Adoption of new and revised standards
During the current year the Group and the Company adopted all the new and revised IFRS, amendments and interpretations that are relevant 
to its operations and are effective for accounting periods beginning on 1 January 2016. These are set out below and did not have a material 
impact on the accounting policies of the Group and the Company:
 » Amendments to IAS 27: Equity Method in Separate Financial Statements, issued on 12 August 2014 (effective 1 January 2016).
 » Amendments to IFRS 10, IFRS 12 and IAS 28: Investment Entities – Applying the Consolidation Exception, issued on 18 December 2014 
(effective 1 January 2016).
 » Amendments to IAS 1: Disclosure Initiative, issued on 18 December 2014 (effective 1 January 2016).
 » Annual improvements to IFRSs 2012–2014 Cycle, issued on 25 September 2014 (effective 1 January 2016).
 » Amendments to IAS 16 and IAS 38: Clarification of Acceptable Methods of Depreciation and Amortisation, issued on 12 May 2014 
(effective 1 January 2016). 
 » Amendments to IFRS 11: Accounting for Acquisitions of Interests in Joint Operations, issued on 6 May 2014 (effective 1 January 2016).
 » Amendments to IAS 16 and IAS 41: Bearer Plants, issued on 30 June 2014 (effective 1 January 2016).
 » Amendments to IAS 19: Defined Benefit Plans Employee Contributions, issued on 21 November 2013 (effective 1 February 2015).
 » Annual Improvements to IFRSs 2010–2012 Cycle, issued on 12 December 2013 (effective 1 February 2015). Financial statements
Annual report and financial statements 2016 — Helios Underwriting plc 29
Financial statements
2. Accounting policies continued
International Financial Reporting Standards continued
New standards, amendments and interpretations not yet adopted
At the date of authorisation of these Financial Statements, the following standards, amendments and interpretations were in issue 
but not yet effective:
(i) Adopted by the EU
 » IFRS 9 “Financial Instruments”, issued on 24 July 2014 (effective 1 January 2018).
 » IFRS 15 “Revenue from Contracts with Customers”, issued on 27 May 2014, including amendments to IFRS 15, issued on 11 September 2015 
(effective 1 January 2018).
(ii) Not adopted by the EU
Standards:
 » IFRS 14 “Regulatory Deferral Accounts”, issued on 30 January 2014 (effective 1 January 2016).
 » IFRS 16 “Leases”, issued on 13 January 2016 (effective 1 January 2019).
Amendments:
 » Amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture, issued 
on 11 September 2014 (effective date postponed indefinitely).
 » Amendments to IAS 12: Recognition of Deferred Tax Assets for Unrealised Losses, issued on 19 January 2016 (effective 1 January 2017).
 » Amendments to IAS 7: Disclosure Initiative, issued on 29 January 2016 (effective 1 January 2017).
 » Clarifications to IFRS 15 “Revenue from Contracts with Customers”, issued on 12 April 2014 (effective 1 January 2018).
 » Amendments to IFRS 12: Classification and Measurement of Share-based Payment Transactions, issued on 20 June 2016 
(effective 1 January 2018).
 » Amendments to IFRS 4: Applying IFRS 9 “Financial Instruments” with IFRS 4 “Insurance Contracts”, issued on 12 September 2016 
(effective 1 January 2018).
 » Annual Improvements to IFRS Standards 2014–2016 Cycle, issued on 8 December 2016 (effective 1 January 2018).
 » IFRIC Interpretation 22 Foreign Currency Transactions and Advance Consideration, issued on 8 December 2016 (effective 1 January 2018).
 » Amendments to IAS 40: Transfers of Investment Property, issued on 8 December 2016 (effective 1 January 2018).
Principles of consolidation, business combinations and goodwill
(a) Consolidation and investments in subsidiaries
The Group Financial Statements incorporate the Financial Statements of Helios Underwriting plc, the Parent Company, and its directly and 
indirectly held subsidiaries being 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 
Underwriting Limited, Bernul Limited, Dumasco Limited, Nameco (No. 311) Limited, Nameco (No. 402) Limited, Updown Underwriting Limited, 
Nameco (No. 507) Limited, Nameco (No. 76) Limited, Kempton Underwriting Limited, Devon Underwriting Limited, Nameco (No. 346) Limited,  
Helios UTG Partner Limited, Nomina No 035 LLP , Nomina No 342 LLP , Nomina No 380 LLP , Nomina No 372 LLP and Salviscount LLP (Note 4).
The Financial Statements for all of the above subsidiaries are prepared for the year ended 31 December 2016 under UK GAAP . Consolidation 
adjustments are made to convert the subsidiary Financial Statements prepared under UK GAAP to IFRS so as to align accounting policies 
and treatments.
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 £2,539,000 (2015: £7,819,000).
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. They are deconsolidated from the date that 
control ceases.
Intra-group transactions, balances and unrealised gains on intra-group transactions are eliminated. 
In the Parent Company’s Financial Statements, investments in subsidiaries are stated at cost and are reviewed for impairment annually 
or when events or changes in circumstances indicate the carrying value to be impaired.
(b) Business combinations and goodwill
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. Acquisition costs are 
expensed as incurred.
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 as a bargain purchase. Helios Underwriting plc — Annual report and financial statements 2016 30
Notes to the financial statements continued – Year ended 31 December 2016
2. Accounting policies continued
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.
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 annual 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.
Certain supported syndicates have non-Sterling functional currencies and any exchange movement that they would have reflected in other 
comprehensive income as a result of this has been included within profit before tax to be consistent with the Group’s policy of using Sterling 
as the functional currency.
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 of the year.
Underwriting
Premiums
Gross premium written comprises 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 includes 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 is earned according to the risk profile of the policy. Unearned premiums represent the proportion of gross premium written 
in the year that relates 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 the 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.
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 risks, 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. Financial statements
Annual report and financial statements 2016 — Helios Underwriting plc 31
Financial statements
2. Accounting policies continued
Underwriting continued
Claims incurred and reinsurers’ share continued
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 agreements, 70% of the 2014, 2015 and 2016 underwriting year of insurance exposure is ceded 
to the reinsurers. Amounts payable to the reinsurers are included within “reinsurance premium ceded” in the consolidated income statement 
of the year and amounts receivable from the reinsurers are included within “reinsurers share of gross claims paid” in the consolidated income 
statement of the year. 
Unexpired risks provision
Provision for unexpired risks is 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 (“IBNR”) 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.
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.
Investment income
Interest receivable from cash and short-term deposits and interest payable are accrued to the end of the period.
Dividend income from financial assets at fair value through profit or loss is recognised in the income statement when the Group’s right 
to receive payments is established.
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 proportionate to the funds contributed by the year of account.
Other operating expenses
All expenses are accounted for on an accruals basis.
Intangible assets: syndicate capacity
Syndicate capacity is an intangible asset which represents costs incurred in the Corporation of Lloyd’s auctions in order to acquire rights 
to participate on syndicates’ years of account.
At the individual subsidiary company level, the syndicate capacity is stated at cost, less any provision for impairment at initial recognition, and 
amortised on a straight line basis over the useful economic life, which is estimated to be five years (up to 2014: estimated to be seven years). 
No amortisation is charged until the following year when underwriting commences in respect of the purchased syndicate participation. Helios Underwriting plc — Annual report and financial statements 2016 32
Notes to the financial statements continued – Year ended 31 December 2016
2. Accounting policies continued
Intangible assets: syndicate capacity continued
At the consolidation level, the Group’ s accounting policy for the year 2014 was consistent with the accounting policy of the subsidiaries as described 
above. As of 1 January 2015, the Group changed its accounting policy for accounting for the intangible asset, syndicate capacity, as set out below:
The syndicate capacity represents the cost of purchasing the Group’s participation in the combined syndicates. The capacity is capitalised at 
cost in the statement of financial position. It has an indefinite useful life and is carried at cost less accumulated impairment. It is annually tested 
for impairment for each syndicate by reference to the weighted average value at Lloyd’s auctions and expected future profit streams to be 
earned by those syndicates in which the Group participates and provision is made for any impairment in the consolidated income statement.
This change in accounting policy was applied retrospectively as if the new policy had always been in place. The effects of this change 
are disclosed in Note 22.
Financial assets
(a) Classification
The Group classifies its financial assets in the following categories: at fair value through profit or loss, and 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.
(i) Financial assets at fair value through profit or loss 
All financial assets at fair value through profit or loss are categorised as designated at fair value through profit or loss upon initial recognition 
because they are managed and their performance is evaluated on a fair value basis in accordance with the Company’s documented investment 
strategy. 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 within 12 months; otherwise, they are classified as non-current.
(ii) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are 
classified as current assets, except for maturities greater than 12 months after the reporting period. The latter ones are classified as non-current assets.
The Group’s loans and receivables comprise “other receivables, including insurance and reinsurance receivables” and “cash and cash equivalents”.
The Parent Company’s loans and receivables comprise “other receivables” and “cash and cash equivalents”.
(b) Recognition, derecognition and measurement 
Regular purchases and sales of financial assets are recognised on the trade date, being the date on which the Group commits to the purchase 
or sale of the asset. Financial assets are derecognised when the right to receive cash flows from the financial assets has expired or are transferred 
and the Group has transferred substantially all its risks and rewards of ownership.
Financial assets at fair value through profit or loss are initially recognised at fair value and transaction costs incurred expensed in the income statement.
Loans and receivables are initially recognised at fair value plus transaction costs and are subsequently carried at amortised cost less any 
impairment losses.
Fair value estimation
The fair value of financial assets at fair value through profit or loss which are 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 at fair value through profit or loss held by the Group is the current bid price.
The fair value of financial assets at fair value through profit or loss 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.
Unrealised gains and losses arising from changes in the fair value of the financial assets at fair value through profit or loss, are presented 
in the income statement within “net investment income”.
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. 
(c) Impairment  
The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets 
is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence 
of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event 
(or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. 
Asset carried at amortised cost
For loans and receivables, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value 
of the estimated future cash flows (excluding future credit losses that has not been incurred) discounted at the financial asset’s original 
effective interest rate. The carrying amount of the asset is reduced and the amount of the loss is recognised in profit or loss. If a loan has a 
variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. 
As a practical expedient, the Group may measure impairment on the basis of an instrument’s fair value using an observable market price.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring 
after the impairment was recognised (such as an improvement in the debtor’s credit rating), the reversal of the previously recognised 
impairment loss is recognised in profit or loss. Financial statements
Annual report and financial statements 2016 — Helios Underwriting plc 33
Financial statements
2. Accounting policies continued
Cash and cash equivalents
For the purposes of the statements of cash flows, cash and cash equivalents comprise cash and short-term deposits at bank.
Current and deferred tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it 
relates to items recognised in other comprehensive income or directly in equity, in which case tax is also recognised in other comprehensive 
income or directly in equity, respectively.
Current tax
The current income tax charge is calculated on the basis of the tax laws enacted at the balance sheet date in the countries where the 
Company and its subsidiaries operate and generate taxable income. Management establishes provisions when appropriate, on the basis 
of amounts expected to be paid to the tax authorities.
Deferred tax
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.
Other payables
These present liabilities for services provided to the Group prior to end of the financial year which are unpaid. These are classified as current 
liabilities, unless payment is not due within 12 months after the reporting date. They are recognised initially at their fair value and subsequently 
measured at amortised cost using the effective interest method. 
Share capital and share premium
Ordinary shares are classified as equity.
The difference between the fair value of the consideration received and the nominal value of the share capital issued is taken to the share 
premium account. Incremental costs directly attributable to the issue of shares or options are shown in equity as a deduction, net of tax, 
from proceeds.
Dividend distribution policy
Dividend distribution to the Company’s shareholders is recognised in the Group’s and the Parent Company’s Financial Statements 
in the period in which the dividends are approved by the Company’s shareholders.
3. Key accounting judgements and estimation uncertainties
In applying the Company’s accounting policies, the Directors are required to make judgements, estimates and assumptions in determining 
the carrying amounts of assets and liabilities. These judgements, estimates and assumptions are based on the best and most reliable 
evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered 
to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and 
outcomes may differ. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are 
recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future 
periods, if the revision affects both current and future periods. 
The measurement of the provision for claims outstanding is the most significant judgement involving estimation uncertainty regarding amounts 
recognised in these Financial Statements in relation to underwriting by the syndicates and this is disclosed further in Note 4.
The management and control of each syndicate is carried out by the managing agent of that syndicate, and the Company looks to the 
managing agent to implement appropriate policies, procedures and internal controls to manage each syndicate. 
The key accounting judgements and sources of estimation uncertainty set out below therefore relate to those made in respect of the 
Company only, and do not include estimates and judgements made in respect of the syndicates.
Purchased syndicate capacity
Estimating value in use
Where an indication of impairment of capacity values exists, the Directors will carry out an impairment review to determine the recoverable 
amount, which is the higher of fair value less cost to sell and value in use. The value in use calculation requires an estimate of the future cash 
flows expected to arise from the capacity and a suitable discount rate in order to calculate present value. 
Assessing indicators of impairment
In assessing whether there have been any indicators of impairment of assets, the Directors consider both external and internal sources 
of information such as market conditions, counterparty credit ratings and experience of recoverability. 
Recoverability of receivables
The Company establishes a provision for receivables that are estimated not to be recoverable. When assessing recoverability, factors such 
as the ageing of the receivables, past experience of recoverability and the credit profile of individual or groups of customers are all considered.  Helios Underwriting plc — Annual report and financial statements 2016 34
Notes to the financial statements continued – Year ended 31 December 2016
4. 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 these risks, in conjunction 
with its subsidiaries and members’ agent, is limited to selection of syndicate participations, monitoring the performance of the syndicates 
and the purchase of appropriate member level reinsurance.
Risk background
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 2016 and subsequent years of account, each managing agent will have prepared a 
Lloyd’s Capital Return (“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 risk arises 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 (as detailed 
below), 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.
Impact of Brexit vote
The Brexit vote will have an impact on various risk factors, including currency risks. The Lloyd’s market is in the process of developing a 
strategy for dealing with Brexit and the Company will monitor these developments and identify whether it needs to modify its participation 
in the Lloyd’s market. 
(a) Syndicate risks
(i) Liquidity risk
The syndicates are exposed to daily calls on their available cash resources, principally from claims arising from its insurance business. Liquidity 
risk arises where cash may not be available to pay obligation when due, or to ensure compliance with the syndicate’s obligations under the 
various trust deeds to which it is party.
The syndicates aim to manage their liquidity position so that they can fund claims arising from significant catastrophic events, as modelled 
in their Lloyd’s realistic disaster scenarios (“RDS”).
Although there are usually no stated maturities for claims outstanding, syndicates have provided their expected maturity of future claims 
settlements as follows:
2016
No stated
 maturity
£’000
0–1 year
£’000
1–3 years
£’000
3–5 years
£’000
> 5 years
£’000
Total
£’000
Claims outstanding (30) 16,590 18,746 7,313 7,468 50,087
2015
No stated
 maturity
£’000
0–1 year
£’000
1–3 years
£’000
3–5 years
£’000
> 5 years
£’000
Total
£’000
Claims outstanding 377 10,354 11,679 5,267 5,308 32,985 Financial statements
Annual report and financial statements 2016 — Helios Underwriting plc 35
Financial statements
4. Risk management continued
(a) Syndicate risks continued
(ii) Credit risk
Credit ratings to syndicate assets (Note 26) emerging directly from insurance activities which are neither past due nor impaired, are as follows:
2016
AAA
£’000
AA
£’000
A
£’000
BBB or lower
£’000
Not rated
£’000
Total
£’000
Financial investments 6,759 11,734 10,416 5,141 4,262 38,312
Deposits with ceding undertakings — — — — 5 5
Reinsurers share of claims outstanding (157) 2,576 6,325 125 289 9,158
Reinsurance debtors 78 154 270 20 16 538
Cash at bank and in hand 1 580 1,301 280 1 2,163
6,681 15,044 18,312 5,566 4,573 50,176
2015
AAA
£’000
AA
£’000
A
£’000
BBB or lower
£’000
Not rated
£’000
Total
£’000
Financial investments 6,002 8,385 7,421 2,980 2,362 27,150
Deposits with ceding undertakings — — — — 3 3
Reinsurers share of claims outstanding 218 1,980 3,263 41 144 5,646
Reinsurance debtors 665 4,268 1,508 10 10 6,461
Cash at bank and in hand 568 67 607 166 3 1,411
7,453 14,700 12,799 3,197 2,522 40,671
Syndicate assets (Note 26) emerging directly from insurance activities, with reference to their due date or impaired are as follows:
Past due but not impaired
2016
Neither
past due
nor impaired
£’000
Less than
6 months
£’000
Between 
6 months
and 1 year
£’000
Greater
than 1 year
£’000
Impaired
£’000
Total
£’000
Financial investments 38,312 — — — 1 38,313
Deposits with ceding undertakings 4 — — — — 4
Reinsurers share of claims outstanding 9,157 517 — — — 9,674
Reinsurance debtors 538 108 9 7 12 674
Cash at bank and in hand 2,163 — — — — 2,163
Insurance and other debtors 28,705 562 171 277 (6) 29,709
78,879 1,187 180 284 7 80,537
Past due but not impaired
2015
Neither
past due
nor impaired
£’000
Less than
6 months
£’000
Between 
6 months
and 1 year
£’000
Greater
than 1 year
£’000
Impaired
£’000
Total
£’000
Financial investments 27,150 — — — — 27,150
Deposits with ceding undertakings 3 — — — — 3
Reinsurers share of claims outstanding 5,646 19 — — (8) 5,657
Reinsurance debtors 6,461 385 40 5 9 6,900
Cash at bank and in hand 1,411 — — — — 1,411
Insurance and other debtors 8,315 252 66 98 (5) 8,726
48,986 656 106 103 (4) 49,847
(iii) Interest rate equity price risk
Interest rate risk and equity price risk are the risks that the fair value of future cash flows of financial instruments will fluctuate because 
of changes in market interest rates and market prices, respectively.  Helios Underwriting plc — Annual report and financial statements 2016 36
Notes to the financial statements continued – Year ended 31 December 2016
4. Risk management continued
(a) Syndicate risks continued
(iv) Currency risk
The syndicates’ main exposure to foreign currency risk arises from insurance business originating overseas, primarily denominated in US 
dollars. Transactions denominated in US dollars form a significant part of the syndicates’ operations. This risk is, in part, mitigated by the 
syndicates maintaining financial assets denominated in US dollars against its major exposures in that currency.
The table below provides details of syndicate assets and liabilities (Note 26) by currency:
2016
GBP
£’000
converted
USD
£’000
converted
EUR
£’000
converted
CAD
£’000
converted
Other
£’000
converted
Total
£’000
converted
Total assets 11,797 57,582 4,431 6,876 3,223 83,909
Total liabilities (16,829) (50,164) (3,950) (4,828) (2,943) (78,714)
Surplus/(deficiency) of assets (5,032) 7,418 481 2,048 280 5,195
2015
GBP
£’000
converted
USD
£’000
converted
EUR
£’000
converted
CAD
£’000
converted
Other
£’000
converted
Total
£’000
converted
Total assets 11,679 38,648 2,981 3,338 1,342 57,988
Total liabilities (13,745) (32,758) (2,543) (2,125) (668) (51,839)
Surplus/(deficiency) of assets (2,066) 5,890 438 1,213 674 6,149
The impact of a 5% change in exchange rates between GBP and other currencies would be £511,000 on shareholders’ funds (2015: £411,000).
(v) 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 has reinsurance programmes on the 2014, 2015 and 2016 years of account.
The 2014 and 2015 years of account have strategic collateralised quota share arrangement in respect of 50% of their business with XL Re Limited, 
12.45% with Bermudan reinsurer Everest Reinsurance Bermuda Limited (part of global NYSE-quoted insurer Everest Re Group Limited) and 
7.55% with Guernsey reinsurer Polygon Insurance Co Limited, through Hampden Insurance Guernsey PCC Limited – Cell 6.
The 2016 year of account (excluding Nameco (No 346) Limited) has strategic collateralised quota share arrangements in respect of 44.84% of 
its business with XL Re Limited,11% with Bermudan reinsurer Everest Reinsurance Bermuda Limited (part of global NYSE-quoted insurer 
Everest Re Group Limited), 5.29% with Guernsey reinsurer Polygon Insurance Co Limited and 8.87% with private shareholders through 
Hampden Insurance Guernsey PCC Limited – Cell 6.  
In addition, the Nameco (No 346) Limited 2016 year of account has strategic collateralised quota share arrangement in respect of 40% of its 
business with XL Re Limited,10% with Bermudan reinsurer Everest Reinsurance Bermuda Limited (part of global NYSE-quoted insurer Everest 
Re Group Limited) and 20% with private shareholders through Hampden Insurance Guernsey PCC Limited – Cell 6.
(b) Group risks – corporate level
(i) 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, interest rate risk and currency 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 risk, credit risk 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 2016 is £14.8m (2015: £8.1m), 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 arrangements through Cell 6, the Group’s 
Funds at Lloyd’s calculation benefits from an aggregate £13.6m (2015: £9.4m) letter of credit (“LOC”) acceptable to Lloyd’s, on behalf of 
XL Re Limited, Everest Reinsurance Bermuda Limited, Polygon Insurance Co Limited (the reinsurers) and the private shareholders. The LOC 
is pledged in aggregate to the relevant syndicates through Lloyd’s and thus Helios Underwriting plc is not specifically exposed to counterparty 
credit risk in this matter. Should the bank’s LOC become unacceptable to Lloyd’s for any reason, the reinsurer 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.
(ii) 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 could result in the Group making a loss compared to the carrying value when the 
Group disposes of particular syndicate participations. Financial statements
Annual report and financial statements 2016 — Helios Underwriting plc 37
Financial statements
4. Risk management continued
(b) Group risks – corporate level continued
(iii) 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.
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 Equity on pages 24 and 25.
At 31 December 2016 the corporate member subsidiaries had an agreed FAL requirement of £19,632,000 (2015: £16,844,000) to support 
their underwriting on the 2017 year of account (2016 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 LOC. 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 2016 the agreed 
FAL requirements for the Group were 60% (2015: 51%) of the capacity for the following year of account.
5. Segmental information
Nigel Hanbury is the Group’s chief operating decision-maker. He has determined its operating segments based on the way the Group is managed, 
for the purpose of allocating resources and assessing performance.
The Group has three segments that represent the primary way in which the Group is managed, as follows:
 » syndicate participation;
 » investment management; and 
 » other corporate activities.
Year ended 31 December 2016
Syndicate
participation
£’000
Investment
management
£’000
Other 
corporate 
activities
£’000
Total
£’000
Net earned premium 24,302 — (1,394) 22,908
Net investment income 663 222 — 885
Other income 643 — 1,491 2,134
Net insurance claims and loss adjustment expenses (12,805) — — (12,805)
Expenses incurred in insurance activities (10,422) — (397) (10,819)
Other operating expenses 884 — (1,853) (969)
Goodwill on bargain purchase — — — —
Impairment of goodwill — — — —
Impairment of syndicate capacity (see Note 13) — — (555) (555)
Profit before tax 3,265 222 (2,708) 779 Helios Underwriting plc — Annual report and financial statements 2016 38
Notes to the financial statements continued – Year ended 31 December 2016
5. Segmental information continued
Restated year ended 31 December 2015*
Syndicate
participation
£’000
Investment
management
£’000
Other 
corporate 
activities
£’000
Total
£’000
Net earned premium 17,257 — (1,397) 15,860
Net investment income 250 5 — 255
Other income 144 — 392 536
Net insurance claims and loss adjustment expenses (7,515) — — (7,515)
Expenses incurred in insurance activities (7,178) — (393) (7,571)
Other operating expenses 35 — (847) (812)
Goodwill on bargain purchase — — 244 244
Impairment of goodwill — — (136) (136)
Impairment of syndicate capacity (see Note 13) — — (63) (63)
Profit before tax 2,993 5 (2,200) 798
* Refer to Note 27 for details of the restatement of the profit for the year 2015 as a result of a reclassification.
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 2016 other corporate activities totalling £1,394,000 (2015: £1,397,000 – 2013, 2014 and 2015 year of account) 
presents the 2014, 2015 and 2016 years of account net Group quota share reinsurance premium payable to Hampden Insurance Guernsey 
PCC Limited – Cell 6. This net quota share reinsurance premium payable is included within “reinsurance premium ceded” in the consolidated 
income statement of the year.
6. Operating profit before goodwill and impairment
Underwriting year of account*
Year ended 31 December 2016
2014
and prior
£’000
2015
£’000
2016 
£’000
Sub-total
£’000
Pre-
acquisition
£’000
Corporate
 reinsurance
£’000
Other
 corporate
£’000
Total
£’000
Gross premium written 250 3,521 30,131 33,902 (2,595) — — 31,307
Reinsurance ceded 26 (487) (6,244) (6,705) 575 (1,394) (248) (7,772)
Net premium written 276 3,034 23,887 27,197 (2,020) (1,394) (248) 23,535
Net earned premium 1,679 11,986 12,676 26,341 (1,791) (1,394) (248) 22,908
Other income 1,566 543 82 2,191 (76) 557 347 3,019
Net insurance claims incurred and 
loss adjustment expenses 990 (6,196) (8,680) (13,886) 1,081 — — (12,805)
Operating expenses (1,300) (4,169) (5,575) (11,044) 723 — (1,467) (11,788)
Operating profit before goodwill 
and impairment 2,935 2,164 (1,497) 3,602 (63) (837) (1,368) 1,334
Quota share adjustment (1,274) (1,133) 1,013 (1,394) — 1,394 — —
Operating profit before goodwill 
and impairment after quota 
share adjustment 1,661 1,031 (484) 2,208 (63) 557 (1,368) 1,334
*  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. Financial statements
Annual report and financial statements 2016 — Helios Underwriting plc 39
Financial statements
6. Operating profit before goodwill and impairment continued
Underwriting year of account*
Restated year ended 31 December 2015**
2013 
and prior
£’000
2014
£’000
2015 
£’000
Sub-total
£’000
Pre-
acquisition
£’000
Corporate
 reinsurance
£’000
Other
 corporate
£’000
Total
£’000
Gross premium written (25) 2,362 21,331 23,668 (2,157) — — 21,511
Reinsurance ceded (123) (353) (3,723) (4,199) 421 (1,397) (407) (5,582)
Net premium written (148) 2,009 17,608 19,469 (1,736) (1,397) (407) 15,929
Net earned premium 712 9,092 9,475 19,279 (1,615) (1,397) (407) 15,860
Other income 246 147 15 408 (90) 382 91 791
Net insurance claims incurred and 
loss adjustment expenses 1,414 (4,190) (5,468) (8,244) 726 3 — (7,515)
Operating expenses (706) (3,160) (3,962) (7,828) 779 — (1,334) (8,383)
Operating profit before goodwill 
and impairment 1,666 1,889 60 3,615 (200) (1,012) (1,650) 753
Quota share adjustment (392) (950) (55) (1,397) — 1,397 — —
Operating profit before goodwill 
and impairment after quota share 
adjustment 1,274 939 5 2,218 (200) 385 (1,650) 753
*  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.
** Refer to Note 27 for details of the restatement of the profit for the year 2015 as a result of a reclassification.
Pre-acquisition relates to the element of results from the new acquisitions before they were acquired by the Group. 
7. Insurance liabilities and reinsurance balances
Movement in claims outstanding 
Gross
£’000
Reinsurance
£’000
Net
£’000
At 1 January 2015 26,179 4,682 21,497
Increase in reserves arising from acquisition of subsidiary undertakings 7,360 1,272 6,088
Movement of reserves (615) (431) (184)
Other movements 61 134 (73)
At 31 December 2015 32,985 5,657 27,328
At 1 January 2016 32,985 5,657 27,328
Increase in reserves arising from acquisition of subsidiary undertakings 8,122 1,417 6,705
Movement of reserves 3,826 1,904 1,922
Other movements 5,154 696 4,458
At 31 December 2016 50,087 9,674 40,413
Included within other movements are the 2013 and prior years’ claims reserves reinsured into the 2014 year of account on which the Group 
does not participate and currency exchange differences.
Movement in unearned premium
Gross
£’000
Reinsurance
£’000
Net
£’000
At 1 January 2015 8,005 1,014 6,991
Increase in reserves arising from acquisition of subsidiary undertakings 2,857 375 2,482
Movement of reserves 162 93 69
Other movements 145 19 126
At 31 December 2015 11,169 1,501 9,668
At 1 January 2016 11,169 1,501 9,668
Increase in reserves arising from acquisition of subsidiary undertakings 3,154 531 2,623
Movement of reserves 826 199 627
Other movements 1,672 317 1,355
At 31 December 2016 16,821 2,548 14,273 Helios Underwriting plc — Annual report and financial statements 2016 40
Notes to the financial statements continued – Year ended 31 December 2016
7. Insurance liabilities and reinsurance balances continued
Assumptions, changes in assumptions and sensitivity
As described in Note 4, 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 Group’s 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, 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 2016.
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 £5,009,000 (2015: £3,299,000);
 » a 10% increase/decrease in the managing agents’ calculation of net claims reserves will decrease/increase the Group’s pre-tax profits 
by £4,041,000 (2015: £2,733,000); and 
 » a 10% increase/decrease in the run-off year net claims reserves will decrease/increase the Group’s pre-tax profits by £12,000 (2015: £1,000).
The 10% movement has been selected to give an indication of the possible variations in the assumptions used.
Analysis of gross and net claims development
The tables below provide information about historical gross and net claims development: 
2016
Gross claims
Underwriting pure year*
After 
12 months
£’000
After 
24 months
£’000
After 
36 months
£’000
Profit/(loss) 
on RITC
received
£’000
2012 12,114 17,331 17,035 1,844
2013 9,041 15,370 15,133 1,484
2014 9,727 16,403 16,925
2015 8,968 16,622
2016 11,470 
Net claims
Underwriting pure year*
After 
12 months
£’000
After 
24 months
£’000
After 
36 months
£’000
Profit/(loss) 
on RITC
received
£’000
2012 10,049 14,763 14,614 1,782
2013 7,788 13,411 13,071 1,684
2014 8,272 14,227 14,616
2015 7,735 14,281
2016 9,175 
* Including the new acquisitions during 2016.
At the end of the 3 years syndicates are normally reinsured to close. Participations on subsequent years on syndicates may therefore change. 
The above table therefore only shows 3 years of development and how the reinsurance to close received performed in its fourth year. Financial statements
Annual report and financial statements 2016 — Helios Underwriting plc 41
Financial statements
8. Net investment income
Year ended
31 December 
2016
£’000
Year ended
31 December
2015
£’000
Investment income 594 926
Realised losses on financial assets at fair value through profit or loss (19) (327)
Unrealised gain/(losses) on financial assets at fair value through profit or loss 256 (360)
Investment management expenses (59) (44)
Bank interest 113 60
Net investment income 885 255
9. Operating expenses (excluding goodwill and amortisation)
Year ended
31 December
2016
£’000
Year ended
31 December
2015
£’000
Expenses incurred in insurance activities:
Acquisition costs 7,052 5,119
Change in deferred acquisition costs (49) (128)
Administrative expenses 3,528 2,476
Other 288 104
10,819 7,571
Other operating expenses:
Exchange differences (16) 35
Directors’ remuneration 312 195
Acquisition costs in connection with the new subsidiaries acquired in the year 100 91
Professional fees 443 405
Administration and other expenses 10 17
Auditors’ remuneration:
– audit of the Parent Company and Group Financial Statements 31 30
– audit of subsidiary company Financial Statements 35 19
– under provision of prior year audit fee 34 — 
– audit related assurance services 20 20
969 812
Operating expenses 11,788 8,383
The Group has no employees other than the Directors of the Company.
Details of the Directors’ remuneration are disclosed below:
Directors’ remuneration
Year ended
31 December
2016
£
Year ended
31 December
2015
£
Sir Michael Oliver 20,000 20,000
Jeremy Evans 15,000 15,000
Michael Cunningham 15,000 15,000
Andrew Christie 15,000 15,000
Arthur Manners 118,000 —
Nigel Hanbury 129,000 130,050
Total 312,000 195,050
The Chief Executive, Nigel Hanbury and the Finance Director Arthur Manners have a bonus incentive scheme in addition to their basic remuneration. 
The above figures for Nigel Hanbury and Arthur Manners include an accrual for the year of £50,000 each (2015: £63,000 for Nigel Hanbury only) 
in respect of this scheme. No other Directors derive other benefits, pension contributions or incentives from the Group. At 31 December 2016 
no share options were held by the Directors (2015: nil). Helios Underwriting plc — Annual report and financial statements 2016 42
Notes to the financial statements continued – Year ended 31 December 2016
10. Income tax charge
(a) Analysis of tax (credit)/charge in the year
Year ended
31 December
2016
£’000
Restated*
year ended
31 December
2015
£’000
Current tax:
– current year 465 (11)
– prior year 1 (9)
– foreign tax paid 30 25
Total current tax 496 5
Deferred tax:
– current year (430) 18
– prior year — (135)
Total deferred tax (430) (117)
Income tax charge/(credit) 66 (112)
(b) Factors affecting the tax charge/(credit) for the year
Tax for the year is lower than (2015: lower than) the standard rate of corporation tax in the UK of 20% (2015: 20.25%).
The differences are explained below:
Year ended
31 December
2016
£’000
Restated*
year ended
31 December
2015
£’000
Profit before tax 779 798
Tax calculated as profit before tax multiplied by the standard rate of corporation tax in the UK of 20% (2015: 20.25%) 156 161
Tax effects of:
Prior year adjustments 1 (9)
Rate change and other adjustments (166) (249)
Permanent disallowances 45 (18)
Goodwill on bargain purchase not subject to tax — (22)
Foreign taxes 30 25
Other — —
Tax charge/(credit) for the year 66 (112)
* Refer to Note 27 for details of the restatement of the profit for the year 2015 as a result of a reclassification.
The results of the Group’s participation on the 2014, 2015 and 2016 years of account and the calendar year movement on 2013 and prior run-offs 
will not be assessed for tax until the years ended 2017, 2018 and 2019 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.
New legislation was passed on 18 November 2015 to reduce the UK corporation tax rate to 19% from 1 April 2017 and 18% from 1 April 2020. 
The government further announced on 16 March 2016 as part of its Budget that a rate of 17% will apply from 1 April 2020 instead of 18%. 
This is not expected to have a material impact on the closing deferred tax liability.
The Group has £1,069,000 (2015: £2,184,000) taxable losses carried forward, to which £134,000 (2015: £1,009,000) has been recognised 
as a deferred tax asset and has been offset against deferred tax liabilities of the same nature as disclosed in Note 18.
The Company has £935,000 (2015: £1,175,000) of tax losses to carry forward to which no deferred tax asset has been recognised due 
to the uncertainty of the future taxable profits, as disclosed in Note 18.
11. Earnings per share
Basic earnings per share is calculated by dividing the net profit attributable to ordinary equity holders of the Company after tax by the weighted 
average number of ordinary shares outstanding during the period. 
Diluted earnings per share is calculated by dividing the net profit attributable to ordinary equity holders of the Company by the weighted 
average number of ordinary shares outstanding during the year, plus the weighted average number of ordinary shares that would be issued 
on the conversion of all the dilutive potential ordinary shares into ordinary shares. 
The Group has no dilutive potential ordinary shares.
Earnings per share has been calculated in accordance with IAS 33 “Earnings per share”. Financial statements
Annual report and financial statements 2016 — Helios Underwriting plc 43
Financial statements
11. Earnings per share continued
The earnings per share and weighted average number of shares used in the calculation are set out below:
Year ended
31 December
2016
Restated
year ended
31 December
2015
Profit for the year after tax attributable to ordinary equity holders of the Parent £713,000 £910,000
Weighted average number of ordinary shares in issue 11,463,456 9,411,794
Basic and diluted earnings per share 6.22p 9.67p
The basic and diluted earnings per share as originally reported for the year ended 31 December 2015 was 8.38p, based on profit for the year 
after tax attributable to ordinary shareholders as originally reported of £789,000. The weighted average number of shares in issue for the year 
ended 31 December 2015 remained unchanged. Refer to Note 27 for details regarding the restatement.
12. Dividends paid or proposed
A dividend of 5.0p per share was paid during the year totalling £525,000 (2015: £457,000). The dividend was settled partly in cash and partly 
with the issue of ordinary shares (Note 20). Future dividends are detailed in Note 28.
13. Intangible assets
Goodwill
£’000
Restated*
syndicate
capacity
£’000
Total
£’000
Cost
At 1 January 2015 — 6,592 6,592
Additions 136 2 138
Disposals — (61) (61)
Impairment (136) — (136)
Acquired with subsidiary undertakings — 2,265 2,265
At 31 December 2015 — 8,798 8,798
At 1 January 2016 — 8,798 8,798
Additions 493 6 499
Disposals — (87) (87)
Impairment — — —
Acquired with subsidiary undertakings — 2,364 2,364
At 31 December 2016 493 11,081 11,574
Impairment
At 1 January 2015 — 224 224
Impairment for the year — 63 63
Disposals — — —
At 31 December 2015 — 287 287
At 1 January 2016 — 287 287
Impairment for the year — 555 555
Disposals — — —
At 31 December 2016 — 842 842
Net book value
As at 31 December 2014 — 6,368 6,368
As at 31 December 2015 — 8,511 8,511
As at 31 December 2016 493 10,239 10,732
*  Refer to Note 22 for the details regarding the restatement of the syndicate capacity as a result of the change of the accounting policy for intangibles – syndicate capacity.
Note 21 sets out the details of the entities acquired by the Group during the year, the fair value adjustments and the goodwill arising. Helios Underwriting plc — Annual report and financial statements 2016 44
Notes to the financial statements continued – Year ended 31 December 2016
14. Investments in subsidiaries
31 December
2016
£’000
31 December
2015
£’000
Total 19,503 14,706
At 31 December 2016 the Company owned 100% of the following companies and limited liability partnerships, either directly or indirectly. 
All subsidiaries are incorporated in England and Wales and their registered office address is at 40 Gracechurch Street, London, EC3V 0BT. 
Company or partnership
Direct/indirect
interest
2016
ownership
2015
ownership Principal activity
Hampden Corporate Member Limited Direct 100% 100% Lloyd’s of London corporate vehicle
Nameco (No. 365) Limited Direct 100% 100% Lloyd’s of London corporate vehicle
Nameco (No. 605) Limited Direct 100% 100% Lloyd’s of London corporate vehicle
Nameco (No. 321) Limited Direct 100% 100% Lloyd’s of London corporate vehicle
Nameco (No. 917) Limited Direct 100% 100% Lloyd’s of London corporate vehicle
Nameco (No. 229) Limited Direct 100% 100% Lloyd’s of London corporate vehicle
Nameco (No. 518) Limited Direct 100% 100% Lloyd’s of London corporate vehicle
Nameco (No. 804) Limited Direct 100% 100% Lloyd’s of London corporate vehicle
Halperin Underwriting Limited Direct 100% 100% Lloyd’s of London corporate vehicle
Bernul Limited Direct 100% 100% Lloyd’s of London corporate vehicle
Dumasco Limited Direct 100% 100% Lloyd’s of London corporate vehicle
Nameco (No. 311) Limited Direct 100% 100% Lloyd’s of London corporate vehicle
Nameco (No. 402) Limited Direct 100% 100% Lloyd’s of London corporate vehicle
Updown Underwriting Limited Direct 100% 100% Lloyd’s of London corporate vehicle
Nameco (No. 507) Limited Direct 100% 100% Lloyd’s of London corporate vehicle
Nameco (No. 76) Limited Direct 100% 100% Lloyd’s of London corporate vehicle
Kempton Underwriting Limited Direct 100% 100% Lloyd’s of London corporate vehicle
Devon Underwriting Limited Direct 100% — Lloyd’s of London corporate vehicle
Nameco (No 346) Limited Direct 100% — Lloyd’s of London corporate vehicle
Helios UTG Partner Limited Direct 100% 100% Corporate partner
Nomina No 035 LLP Indirect 100% 100% Lloyd’s of London corporate vehicle
Nomina No 342 LLP Indirect 100% 100% Lloyd’s of London corporate vehicle
Nomina No 380 LLP Indirect 100% 100% Lloyd’s of London corporate vehicle
Nomina No 372 LLP Indirect 100% 100% Lloyd’s of London corporate vehicle
Salviscount LLP Indirect 100% — Lloyd’s of London corporate vehicle
Helios UTG Partner Limited, a subsidiary of the Company, owns 100% of Nomina No 035 LLP , Nomina No 342 LLP , Nomina No 380 LLP , 
Nomina No 372 LLP and Salviscount LLP . The cost of acquisition of these LLPs is accounted for in Helios UTG Partner Limited, their immediate 
parent company. 
For details of all new acquisition made during the year 2016 refer to Note 21(a).
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: The fair value of financial instruments traded in active markets (such as publicly traded securities) is based on quoted market prices 
(unadjusted) at the end of the reporting period. The quoted market price used for financial assets held by the Group is the current bid price. 
These instruments are included in Level 1.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise 
the use of observable market data inputs, either directly or indirectly, (other than quoted prices included within Level 1) and rely as little as possible 
on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. This is the case 
for unlisted equity securities.   Financial statements
Annual report and financial statements 2016 — Helios Underwriting plc 45
Financial statements
15. Financial assets at fair value through profit or loss continued
The Group held the following financial assets carried at fair value on the statement of financial position:
Group
Total 
2016
£’000
Level 1
£’000
Level 2
£’000
Level 3
£’000
Shares and other variable yield securities and units in unit trusts 6,968 2,508 4,459 1
Debt securities and other fixed income securities 30,810 10,096 20,714 —
Participation in investment pools 755 125 259 371
Loans and deposits with credit institutions 512 337 162 13
Derivatives 67 45 22 —
Other investments 2,385 2,385 — —
Funds at Lloyd’s 4,083 4,083 — —
Total – fair value 45,580 19,579 25,616 385
Group
Total 
2015
£’000
Level 1
£’000
Level 2
£’000
Level 3
£’000
Shares and other variable yield securities and units in unit trusts 5,111 1,922 2,786 403
Debt securities and other fixed income securities 20,359 8,639 8,101 3,619
Participation in investment pools 484 48 134 302
Loans and deposits with credit institutions 1,878 1,307 313 258
Derivatives 8 1 — 7
Other investments 63 63 — —
Funds at Lloyd’s 3,894 3,894 — —
Total – fair value 31,797 15,874 11,334 4,589
Funds at Lloyd’s represent assets deposited with the Corporation of Lloyd’s to support the Group’s underwriting activities as described in the 
accounting policies. The Group entered into a Lloyd’s Deposit Trust Deed which gives Lloyd’s 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 £1,922,000 (2015: £1,447,000) are also held as part of the Group’s 
Funds at Lloyd’s.
The Directors consider any credit risk or liquidity risk not to be material.
Company
Financial assets at fair value through profit or loss, are shown below:
31 December 
2016
£’000
31 December
2015
£’000
Holdings in collective investment schemes 2,380 60
Total – market value 2,380 60
16. Other receivables
Group
31 December
2016
£’000
31 December
2015
£’000
Arising out of direct insurance operations 7,237 4,930
Arising out of reinsurance operations 14,643 9,986
Other debtors 8,363 5,511
Total 30,243 20,427
The Group has no analysis of other receivables held directly by the syndicates on the Group’s behalf (see Note 26). None of the Group’s other 
receivables are past their due date and are all classified as fully performing. Helios Underwriting plc — Annual report and financial statements 2016 46
Notes to the financial statements continued – Year ended 31 December 2016
16. Other receivables continued
Included within the above receivables are amounts totalling £1,565,000 (2015: £1,179,000) which are not expected to be wholly recovered 
within one year.
Company
31 December
2016
£’000
31 December
2015
£’000
Receivables from subsidiaries (Note 22) 4,272 5,205
Other debtors 205 —
Prepayments 11 15
Total 4,488 5,220
All the Company receivables are due within one year.
17. Deferred acquisition costs
31 December
2016
£’000
31 December
2015
£’000
At 1 January 2,926 1,948
Increase arising from acquisition of subsidiary undertakings (Note 21) 850 697
Movement in deferred acquisition costs 49 128
Other movements 430 153
At 31 December 4,255 2,926
18. Deferred tax
Group
Deferred tax is calculated in full on temporary differences using a tax rate of 19% (2015: 19%). 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 2015 807 1,545 2,352
On acquisition of subsidiary undertakings 520 416 936
Prior period adjustment — (135) (135)
Credit for the year (40) 59 19
At 31 December 2015 1,287 1,885 3,172
At 1 January 2016 1,287 1,885 3,172
On acquisition of subsidiary undertakings 868 (29) 839
Prior period adjustment — — —
Credit for the year — (430) (430)
At 31 December 2016 2,155 1,426 3,581
Company
The Company had no deferred tax assets or liabilities (2015: £nil), as disclosed in Note 10.
19. Other payables
Group
31 December 
2016
£’000
31 December
2015
£’000
Arising out of direct insurance operations 825 696
Arising out of reinsurance operations 8,397 5,672
Corporation tax payable 420 14
Other creditors 5,066 2,978
14,708 9,360
The Group has no analysis of other payables held directly by the syndicates on the Group’s behalf (see Note 26). Financial statements
Annual report and financial statements 2016 — Helios Underwriting plc 47
Financial statements
19. Other payables continued
Company
31 December 
2016
£’000
31 December
2015
£’000
Other creditors — —
Accruals and deferred income 328 110
328 110
All payables above are due within one year. 
20. Share capital and share premium
Allotted, called up and fully paid
Number of
shares
Ordinary share
capital
£’000
Share
premium
£’000
Total
£’000
Ordinary shares of 10p each and share premium at 1 January 2015 8,526,948 853 6,996 7,849
Issued on 13 March 2015 – acquisition of subsidiary (Note 21(b)) 429,839 43 559 602
Issued on 3 July 2015 – part settlement of dividends payable (Note 12) 84,027 8 128 136
Issued on 1 September 2015 – acquisition of subsidiaries (Note 21(b)) 1,454,536 146 2,218 2,364
Ordinary shares of 10p each and share premium at 31 December 2015 10,495,350 1,050 9,901 10,951
Ordinary shares of 10p each and share premium at 1 January 2016 10,495,350 1,050 9,901 10,951
Issued on 6 July 2016 – part settlement of dividends payable (Note 12) 125,947 12 214 226
Issued on 6 October 2016 – Result of placing 3,500,000 350 4,900 5,250
Issued on 28 October 2016 – Result of placing 482,943 48 676 724
14,604,240 1,460 15,691 17,151
Less: transaction costs arising on share issues (292) (292)
Ordinary shares of 10p each and share premium at 31 December 2016 14,604,240 1,460 15,399 16,859
21. Acquisition of Limited Liability Vehicles
Acquisitions of Limited Liability Vehicles are accounted for using the acquisition method of accounting. 
Where the comparison of the consideration paid to the fair value of net assets acquired gives rise to a negative goodwill this is recognised 
in the consolidated income statement as goodwill on bargain purchase. The below table shows the summary of the goodwill on bargain 
purchase and the impairment of goodwill as follows:
Company or partnership
2016
Goodwill 
on bargain 
purchase
£’000
2016
Impairment
of goodwill
£’000
Total
£’000
2015
Goodwill 
on bargain 
purchase
£’000
2015
Impairment 
of goodwill
£’000
Total
£’000
Nameco (No. 311) Limited — — — 59 — 59
Nameco (No. 402) Limited — — — — (30) (30)
Updown Underwriting Limited — — — 51 — 51
Nameco (No. 507) Limited — — — 134 — 134
Nameco (No. 76) Limited — — — — (52) (52)
Kempton Underwriting Limited — — — — (54) (54)
Devon Underwriting Limited — — — — — —
Nameco (No. 346) Limited — — — — — —
Salviscount LLP — — — — — —
— — — 244 (136) 108 Helios Underwriting plc — Annual report and financial statements 2016 48
Notes to the financial statements continued – Year ended 31 December 2016
21. Acquisition of Limited Liability Vehicles continued
Further details of individual acquisitions are shown below:
(a) 2016 acquisitions
Devon Underwriting Limited
On 21 January 2016, Helios Underwriting plc acquired 100% of the issued share capital of Devon Underwriting Limited for a total 
consideration of £1,070,000. Devon Underwriting Limited is incorporated in England and Wales and is a corporate member of Lloyd’s.
The acquisition has been accounted for using the acquisition 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 £970,000. 
Goodwill of £100,000 arose on acquisition which has been recognised as an intangible asset and will be assessed at each period end for 
impairment. 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 — 604 604
Financial assets at fair value through profit or loss 1,863 — 1,863
Reinsurance assets:
– reinsurers’ share of claims outstanding 332 — 332
– reinsurers’ share of unearned premium 67 — 67
Other receivables, including insurance and reinsurance receivables 1,242 — 1,242
Deferred acquisition cost 152 — 152
Prepayments and accrued income 12 — 12
Cash and cash equivalents 104 — 104
Insurance liabilities:
– claims outstanding (2,121) — (2,121)
– unearned premium (584) —  (584)
Deferred income tax liabilities (109) (121) (230)
Other payables, including insurance and reinsurance payables (440) — (440)
Accruals and deferred income (31) — (31)
Net assets acquired 487 483 970
Satisfied by:
Cash and cash equivalents 1,070 — 1,070
Total consideration 1,070 — 1,070
Goodwill 583 (483) 100
2014 year
of account
2015 year
of account
2016 year
of account
Capacity acquired 1,866,053 1,298,575 1,244,242
The net earned premium and profit of Devon Underwriting Limited for the period since the acquisition date to 31 December 2016 are 
£1,011,000 and £118,000 respectively.
Goodwill has arisen on the acquisition of Devon Underwriting Limited as a result of the purchase consideration being in excess of the fair value 
of net assets acquired. Financial statements
Annual report and financial statements 2016 — Helios Underwriting plc 49
Financial statements
21. Acquisition of Limited Liability Vehicles continued
(a) 2016 acquisitions continued
Nameco (No 346) Limited
On 27 May 2016, Helios Underwriting plc acquired 100% of the issued share capital of Nameco (No 346) Limited for a total consideration 
of £3,728,000. Nameco (No 346) Limited is incorporated in England and Wales and is a corporate member of Lloyd’s.
The acquisition has been accounted for using the acquisition 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 £3,378,000. 
Goodwill of £350,000 arose on acquisition, which has been recognised as an intangible asset and will be assessed at each period end for 
impairment. 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 3 1,300 1,303
Financial assets at fair value through profit or loss 3,598 — 3,598
Reinsurance assets:
– reinsurers’ share of claims outstanding 810 — 810
– reinsurers’ share of unearned premium 384 — 384
Other receivables, including insurance and reinsurance receivables 4,502 — 4,502
Deferred acquisition cost 541 — 541
Prepayments and accrued income 17 — 17
Cash and cash equivalents 643 — 643
Insurance liabilities:
– claims outstanding (4,522) — (4,522)
– unearned premium (2,032) — (2,032)
Deferred income tax liabilities (271) (260) (531)
Other payables, including insurance and reinsurance payables (1,130) — (1,130)
Accruals and deferred income (205) — (205)
Net assets acquired 2,338 1,040 3,378
Satisfied by:
Cash and cash equivalents 3,728 — 3,728
Total consideration 3,728 — 3,728
Goodwill 1,390 (1,040) 350
2014 year
of account
2015 year
of account
2016 year
of account
Capacity acquired 3,367,971 3,187,015 3,320,877
The net earned premium and profit of Nameco (No 346) Limited for the period since the acquisition date to 31 December 2016 are £1,728,000 
and £217,000 respectively.
Goodwill has arisen on the acquisition of Nameco (No. 346) Limited as a result of the purchase consideration being in excess of the fair value 
of net assets acquired. Helios Underwriting plc — Annual report and financial statements 2016 50
Notes to the financial statements continued – Year ended 31 December 2016
21. Acquisition of Limited Liability Vehicles continued
(a) 2016 acquisitions continued
Salviscount LLP
On 2 December 2016, Helios UTG Partner Limited, a 100% subsidiary of the Company, became a 100% corporate partner in Salviscount LLP 
for a total consideration of £795,000. Salviscount LLP is incorporated in England and Wales and is a corporate member of Lloyd’s.
The acquisition has been accounted for using the acquisition 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 £752,000. 
Goodwill of £43,000 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 443 14 457
Financial assets at fair value through profit or loss 1,160 — 1,160
Reinsurance assets:
– reinsurers’ share of claims outstanding 274 — 274
– reinsurers’ share of unearned premium 80 — 80
Other receivables, including insurance and reinsurance receivables 714 387 1,101
Deferred acquisition costs 157 — 157
Prepayments and accrued income 5 — 5
Cash and cash equivalents 123 — 123
Insurance liabilities:
– claims outstanding (1,479) — (1,479)
– unearned premium (538) — (538)
Deferred income tax liabilities — (108) (108)
Other payables, including insurance and reinsurance payables (446) — (446)
Accruals and deferred income (34) — (34)
Net assets acquired 459 293 752
Satisfied by:
Cash and cash equivalents 795 — 795
Total consideration 795 — 795
Goodwill 336 (293) 43
2014 year
of account
2015 year
of account
2016 year
of account
Capacity acquired 1,083,903 935,951 1,008,257
The net earned premium and Loss of Salviscount LLP for the period since the acquisition date to 31 December 2016 are £63,000 and 
£6,000 respectively.
Goodwill has arisen on the acquisition of Salviscount LLP as a result of the purchase consideration being in excess of the fair value of net 
assets acquired.
Had the Limited Liability Vehicles been consolidated from 1 January 2016, the Consolidated Statement of Comprehensive Income would 
show net earned premium of £24,699,000 and a profit after tax of £776,000.
Costs incurred in connection with the three acquisitions totalling £100,000 have been recognised in the consolidated income statement. Financial statements
Annual report and financial statements 2016 — Helios Underwriting plc 51
Financial statements
21. Acquisition of Limited Liability Vehicles continued
(b) 2015 acquisitions
Nameco (No. 311) Limited
On 8 January 2015, Helios Underwriting plc acquired 100% of the issued share capital of Nameco (No. 311) Limited for a total consideration 
of £926,000. Nameco (No. 311) Limited is incorporated in England and Wales and is a corporate member of Lloyd’s.
The acquisition has been accounted for using the acquisition 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 £985,000. 
Negative goodwill of £59,000 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 5 327 332
Financial assets at fair value through profit or loss 1,308 — 1,308
Reinsurance assets:
– reinsurers’ share of claims outstanding 201 — 201
– reinsurers’ share of unearned premium 60 — 60
Other receivables, including insurance and reinsurance receivables 656 172 828
Deferred acquisition costs 110 — 110
Prepayments and accrued income 4 — 4
Cash and cash equivalents 239 — 239
Insurance liabilities:
– claims outstanding (1,112) — (1,112)
– unearned premium (439) — (439)
Deferred income tax liabilities (74) (95) (169)
Other payables, including insurance and reinsurance payables (331) — (331)
Accruals and deferred income (46) — (46)
Net assets acquired 581 404 985
Satisfied by:
Cash and cash equivalents 926 — 926
Total consideration 926 — 926
Negative goodwill 345 (404) (59)
2013 year of
account
2014 year of
account
2015 year of
account
Capacity acquired 951,511 1,009,477 954,608
The net earned premium and profit of Nameco (No. 311) Limited for the period since the acquisition date to 31 December 2015 are £642,000 
and £52,000 respectively.
Negative goodwill has arisen on the acquisition of Nameco (No. 311) Limited as a result of the purchase consideration being at a discount 
to the fair value of net assets acquired. Helios Underwriting plc — Annual report and financial statements 2016 52
Notes to the financial statements continued – Year ended 31 December 2016
21. Acquisition of Limited Liability Vehicles continued
(b) 2015 acquisitions continued
Nameco (No. 402) Limited
On 20 February 2015, Helios Underwriting plc acquired 100% of the issued share capital of Nameco (No. 402) Limited for a total 
consideration of £823,000. Nameco (No. 402) Limited is incorporated in England and Wales and is a corporate member of Lloyd’s.
The acquisition has been accounted for using the acquisition 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 £793,000. 
Goodwill of £30,000 arose on acquisition, which has been assessed as impaired and written off in the consolidated 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 1 346 347
Financial assets at fair value through profit or loss 1,114 — 1,114
Reinsurance assets:
– reinsurers’ share of claims outstanding 170 — 170
– reinsurers’ share of unearned premium 49 — 49
Other receivables, including insurance and reinsurance receivables 576 265 841
Deferred acquisition costs 93 — 93
Prepayments and accrued income 5 — 5
Cash and cash equivalents 62 — 62
Insurance liabilities:
– claims outstanding (1,037) — (1,037)
– unearned premium (388) — (388)
Deferred income tax liabilities (78) (116) (194)
Other payables, including insurance and reinsurance payables (222) — (222)
Accruals and deferred income (47) — (47)
Net assets acquired 298 495 793
Satisfied by:
Cash and cash equivalents 837 — 837
Less: loan to previous owner transferred on acquisition (14) — (14)
Total consideration 823 — 823
Goodwill 525 (495) 30
2013 year of
account
2014 year of
account
2015 year of
account
Capacity acquired 825,496 870,437 815,675
The net earned premium and profit of Nameco (No. 402) Limited for the period since the acquisition date to 31 December 2015 are £455,000 
and £31,000 respectively.
Goodwill has arisen on the acquisition of Nameco (No. 402) Limited as a result of the purchase consideration being in excess to the fair value 
of net assets acquired. Financial statements
Annual report and financial statements 2016 — Helios Underwriting plc 53
Financial statements
21. Acquisition of Limited Liability Vehicles continued
(b) 2015 acquisitions continued
Updown Underwriting Limited
On 13 March 2015, Helios Underwriting plc acquired 100% of the issued share capital of Updown Underwriting Limited for a total consideration 
of £1,202,000. Updown Underwriting Limited is incorporated in England and Wales and is a corporate member of Lloyd’s.
The acquisition has been accounted for using the acquisition 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 £1,253,000. 
Negative goodwill of £51,000 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 — 411 411
Financial assets at fair value through profit or loss 1,777 — 1,777
Reinsurance assets:
– reinsurers’ share of claims outstanding 196 — 196
– reinsurers’ share of unearned premium 47 — 47
Other receivables, including insurance and reinsurance receivables 578 — 578
Deferred acquisition costs 78 — 78
Prepayments and accrued income 6 — 6
Cash and cash equivalents 150 — 150
Insurance liabilities:
– claims outstanding (1,174) — (1,174)
– unearned premium (351) — (351)
Deferred income tax liabilities (107) (78) (185)
Other payables, including insurance and reinsurance payables (232) — (232)
Accruals and deferred income (48) — (48)
Net assets acquired 920 333 1,253
Satisfied by:
Cash and cash equivalents 600 — 600
429,839 ordinary 10p shares issued (Note 20) 602 — 602
Total consideration 1,202 — 1,202
Negative goodwill 282 (333) (51)
2013 year of
 account
2014 year of
 account
2015 year of
 account
Capacity acquired 926,849 926,541 864,578
The net earned premium and profit of Updown Underwriting Limited for the period since the acquisition date to 31 December 2015 are £485,000 
and £84,000 respectively.
Negative goodwill has arisen on the acquisition of Updown Underwriting Limited as a result of the purchase consideration being at a discount 
to the fair value of net assets acquired. Helios Underwriting plc — Annual report and financial statements 2016 54
Notes to the financial statements continued – Year ended 31 December 2016
21. Acquisition of Limited Liability Vehicles continued
(b) 2015 acquisitions continued
Nameco (No. 507) Limited
On 12 June 2015, Helios Underwriting plc acquired 100% of the issued share capital of Nameco (No. 507) Limited for a total consideration 
of £900,000. Nameco (No. 507) Limited is incorporated in England and Wales and is a corporate member of Lloyd’s.
The acquisition has been accounted for using the acquisition 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 £1,034,000. 
Negative goodwill of £134,000 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 26 463 489
Financial assets at fair value through profit or loss 1,662 — 1,662
Reinsurance assets:
– reinsurers’ share of claims outstanding 307 — 307
– reinsurers’ share of unearned premium 103 — 103
Other receivables, including insurance and reinsurance receivables 1,366 161 1,527
Deferred acquisition costs 232 — 232
Prepayments and accrued income 9 — 9
Cash and cash equivalents 160 — 160
Insurance liabilities:
– claims outstanding (1,833) — (1,833)
– unearned premium (853) — (853)
Deferred income tax liabilities (132) (119) (251)
Other payables, including insurance and reinsurance payables (455) — (455)
Accruals and deferred income (63) — (63)
Net assets acquired 529 505 1,034
Satisfied by:
Cash and cash equivalents 900 — 900
Total consideration 900 — 900
Negative goodwill 371 (505) (134)
2013 year of
account
2014 year of
account
2015 year of
account
Capacity acquired 1,503,290 1,789,216 1,688,738
The net earned premium and profit of Nameco (No. 507) Limited for the period since the acquisition date to 31 December 2015 are £655,000 
and £53,000 respectively.
Negative goodwill has arisen on the acquisition of Nameco (No. 507) Limited as a result of the purchase consideration being at a discount 
to the fair value of net assets acquired. Financial statements
Annual report and financial statements 2016 — Helios Underwriting plc 55
Financial statements
21. Acquisition of Limited Liability Vehicles continued
(b) 2015 acquisitions continued
Nameco (No. 76) Limited
On 28 August 2015, Helios Underwriting plc acquired 100% of the issued share capital of Nameco (No. 76) Limited for a total consideration 
of £747,000. Nameco (No. 76) Limited is incorporated in England and Wales and is a corporate member of Lloyd’s.
The acquisition has been accounted for using the acquisition 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 £695,000. 
Goodwill of £52,000 arose on acquisition, which has been assessed as impaired and written off in the consolidated 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 29 359 388
Financial assets at fair value through profit or loss 1,609 — 1,609
Reinsurance assets:
– reinsurers’ share of claims outstanding 211 — 211
– reinsurers’ share of unearned premium 58 — 58
Other receivables, including insurance and reinsurance receivables 612 — 612
Deferred acquisition costs 87 — 87
Prepayments and accrued income 5 — 5
Cash and cash equivalents 84 — 84
Insurance liabilities:
– claims outstanding (1,182) — (1,182)
– unearned premium (397) — (397)
Deferred income tax liabilities (43) (68) (111)
Other payables, including insurance and reinsurance payables (617) — (617)
Accruals and deferred income (52) — (52)
Net assets acquired 404 291 695
Satisfied by:
666,555 ordinary 10p shares issued (Note 20) 1,083 — 1,083
Less: loan to previous owner transferred on acquisition (336) — (336)
Total consideration 747 — 747
Goodwill 343 (291) 52
2013 year of
account
2014 year of
 account
2015 year of
account
Capacity acquired 872,590 849,496 952,361
The net earned premium and profit of Nameco (No. 76) Limited for the period since the acquisition date to 31 December 2015 are £218,000 
and £28,000 respectively.
Goodwill has arisen on the acquisition of Nameco (No. 76) Limited as a result of the purchase consideration being in excess to the fair value 
of net assets acquired. Helios Underwriting plc — Annual report and financial statements 2016 56
Notes to the financial statements continued – Year ended 31 December 2016
21. Acquisition of Limited Liability Vehicles continued
(b) 2015 acquisitions continued
Kempton Underwriting Limited
On 28 August 2015, Helios Underwriting plc acquired 100% of the issued share capital of Kempton Underwriting Limited for a total consideration 
of £267,000. Kempton Underwriting Limited is incorporated in England and Wales and is a corporate member of Lloyd’s.
The acquisition has been accounted for using the acquisition 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 £213,000. 
Goodwill of £54,000 arose on acquisition, which has been assessed as impaired and written off in the consolidated 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 58 240 298
Financial assets at fair value through profit or loss 1,435 — 1,435
Reinsurance assets:
– reinsurers’ share of claims outstanding 188 — 188
– reinsurers’ share of unearned premium 58 — 58
Other receivables, including insurance and reinsurance receivables 644 — 644
Deferred acquisition costs 97 — 97
Prepayments and accrued income 4 — 4
Cash and cash equivalents 47 — 47
Insurance liabilities:
– claims outstanding (1,022) — (1,022)
– unearned premium (430) — (430)
Deferred income tax liabilities — (46) (46)
Other payables, including insurance and reinsurance payables (1,030) — (1,030)
Accruals and deferred income (30) — (30)
Net assets acquired 19 194 213
Satisfied by:
787,981 ordinary 10p shares issued (Note 20) 1,281 — 1,281
Less: loan to previous owner transferred on acquisition (1,014) — (1,014)
Total consideration 267 — 267
Goodwill 248 (194) 54
2013 year of
 account
2014 year of
 account
2015 year of
account
Capacity acquired 732,981 967,444 1,034,681
The net earned premium and profit of Kempton Underwriting Limited for the period since the acquisition date to 31 December 2015 are £240,000 
and £28,000 respectively.
Goodwill has arisen on the acquisition of Kempton Underwriting Limited as a result of the purchase consideration being in excess to the fair 
value of net assets acquired.
Had the six Limited Liability Vehicles been consolidated from 1 January 2015, the Consolidated Statement of Comprehensive Income would 
show net earned premium of £17,475,000 and a profit after tax of £956,000.
Costs incurred in connection with the six acquisitions totalling £91,000 have been recognised in the consolidated income statement.
22. Change of accounting policy
Up to 31 December 2014 the Group’s intangible asset, syndicate capacity, was stated at cost, less any provision for impairment at initial 
recognition, and amortised on a straight line basis over the useful economic life, estimated to be seven years. 
As of 1 January 2015 the Group changed its accounting policy for intangible assets, syndicate capacity. The new accounting policy has been 
applied retrospectively, as if the policy had always been in place.
The new accounting policy adopted measures the intangible asset, syndicate capacity, at cost less any impairment. For more details, refer 
to Note 13.
The Financial Statements of the year ended 31 December 2015 reflected the restatement of the consolidated profit for the year 2014, the 
retained earnings, both as at 1 January 2014 and as at 31 December 2014, and the effect to the ‘earnings per share’ for the year 2014. Financial statements
Annual report and financial statements 2016 — Helios Underwriting plc 57
Financial statements
22. Change of accounting policy continued
The effects of the change of this accounting policy on the Group’s Financial Statements for the year ended 31 December 2015 are set out below:
Effect on the consolidated statement of financial position – as at 1 January 2015
Year ended
31 December
2015
£’000
Retained earnings as at 1 January 2015 as originally reported 2,636
Effect on profit of change in accounting policy: impairment of syndicate capacity: 
– effect on retained earnings as at 1 January 2014 1,370
– effect on profit for the year 2014 1,013
2,383
Retained earnings as at 1 January 2015 as restated 5,019
23. Related party transactions
Helios Underwriting plc has inter-company loans with its subsidiaries which are repayable on three months’ notice provided it does not jeopardise 
each company’ 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
2016
£’000
31 December
2015
£’000
Balances due from/(to) Group companies at the year end:
Hampden Corporate Member Limited (82) 327
Nameco (No. 365) Limited (34) (5)
Nameco (No. 605) Limited (164) (4)
Nameco (No. 321) Limited (43) 9
Nameco (No. 917) Limited 3,397 1,451
Nameco (No. 229) Limited 28 58
Nameco (No. 518) Limited (35) 14
Nameco (No. 804) Limited 104 274
Halperin Underwriting Limited (16) 32
Bernul Limited 27 47
Dumasco Limited (37) 177
Nameco (No. 311) Limited (29) 37
Nameco (No. 402) Limited (181) (104)
Updown Underwriting Limited 644 713
Nameco (No. 507) Limited (80) 660
Nameco (No. 76) Limited 8 393
Kempton Underwriting Limited 128 573
Devon Underwriting Limited 110 —
Nameco (No 346) Limited (382) —
Nomina No 035 LLP — —
Nomina No 342 LLP — —
Nomina No 380 LLP — —
Nomina No 372 LLP — —
Salviscount LLP — —
Helios UTG Partner Limited 909 553
Total (Note 16) 4,272 5,205
Helios Underwriting plc and its subsidiaries 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 £146,000 (2015: £112,000). Helios Underwriting plc — Annual report and financial statements 2016 58
Notes to the financial statements continued – Year ended 31 December 2016
23. Related party transactions continued
The Limited Liability Vehicles have entered into a members’ 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 2016 are set out below:
Company
31 December
2016
£’000
31 December
2015
£’000
Hampden Corporate Member Limited 34 43
Nameco (No. 365) Limited 7 11
Nameco (No. 605) Limited 34 36
Nameco (No. 321) Limited 10 13
Nameco (No. 917) Limited 121 7
Nameco (No. 229) Limited 9 10
Nameco (No. 518) Limited 13 18
Nameco (No. 804) Limited 23 32
Halperin Underwriting Limited 10 14
Bernul Limited — 9
Dumasco Limited — —
Nameco (No. 311) Limited 12 17
Nameco (No. 402) Limited 12 18
Updown Underwriting Limited — 1
Nameco (No. 507) Limited 21 26
Nameco (No. 76) Limited 12 16
Kempton Underwriting Limited — 11
Devon Underwriting Limited 9 —
Nameco (No 346) Limited 51 —
Nomina No 035 LLP 10 14
Nomina No 342 LLP 9 14
Nomina No 380 LLP 15 13
Nomina No 372 LLP 11 16
Salviscount LLP 20 —
Helios UTG Partner Limited — —
Total 443 339 Financial statements
Annual report and financial statements 2016 — Helios Underwriting plc 59
Financial statements
23. Related party transactions continued
The Group entered into quota share reinsurance contracts for the 2014, 2015, 2016 and 2017 years of account with Hampden Insurance 
PCC (Guernsey) Limited – Cell 6. The Limited Liability Vehicles’ underwriting year of account quota share participations are set out below:
Company or partnership 2014 2015 2016 2017
Hampden Corporate Member Limited 70% 70% — —
Nameco (No. 365) Limited 70% 70% — —
Nameco (No. 605) Limited 70% 70% — —
Nameco (No. 321) Limited 70% 70% — —
Nameco (No. 917) Limited 70% 70% 70% 70%
Nameco (No. 229) Limited 70% 70% — —
Nameco (No. 518) Limited 70% 70% — —
Nameco (No. 804) Limited 70% 70% — —
Halperin Underwriting Limited 70% 70% — —
Bernul Limited 70% 70% — —
Dumasco Limited — — — —
Nameco (No. 311) Limited — 70% — —
Nameco (No. 402) Limited — 70% — —
Updown Underwriting Limited — 70% — —
Nameco (No. 507) Limited — — — —
Nameco (No. 76) Limited — — — —
Kempton Underwriting Limited — — — —
Devon Underwriting Limited — — 70% 70%
Nameco (No 346) Limited — — 70% 70%
Helios UTG Partner Limited — — — —
Nomina No 035 LLP 70% 70% — —
Nomina No 342 LLP 70% 70% — —
Nomina No 380 LLP 70% 70% — —
Nomina No 372 LLP 70% 70% — —
Salviscount LLP — — — —
Nigel Hanbury, a Director of Helios Underwriting plc and its subsidiary companies, is also a director and majority shareholder in 
Hampden Insurance Guernsey PCC Limited – Cell 6. Hampden Capital, a substantial shareholder in Helios Underwriting plc, is also a substantial 
shareholder in Hampden Insurance Guernsey PCC Limited – Cell 6. Under the agreement, the Group accrued a net reinsurance premium 
payable of £1,602,000 during the year.
During the year, the following Directors received dividends, in line with their shareholdings held:
Director
Shareholding at
date dividend
declared
10 June 2016
Dividend 
received
16 July 2016
£
Shareholding at 
date dividend
declared 
5 June 2015
Dividend 
received 
3 July 2015
£
Sir Michael Oliver 19,000 950 19,000 969
Nigel Hanbury (either personally or has an interest in) 1,370,872 68,544 1,298,445 66,221
Andrew Christie 5,500 275 5,500 280
Jeremy Evans 52,004 2,600 52,004 2,601
Arthur Manners — — — —
Michael Cunningham 20,500 1,025 20,500 1,045
24. Ultimate controlling party
The Directors consider that the Group has no ultimate controlling party. Helios Underwriting plc — Annual report and financial statements 2016 60
Notes to the financial statements continued – Year ended 31 December 2016
25. 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
2014*
£
2015*
£
2016*
£
2017
£
33 Hiscox Syndicates Limited 2,475,618 2,626,038 2,819,818 3,299,138
218 ERS Syndicate Management Limited 1,457,074 1,216,951 1,328,708 1,790,933
308 Tokio Marine Kiln Syndicates Limited 244,528 184,528 100,000 100,000
386 QBE Underwriting Limited 729,313 711,365 800,289 596,204
510 Tokio Marine Kiln Syndicates Limited 4,484,868 4,818,514 5,092,961 5,521,755
557 Tokio Marine Kiln Syndicates Limited 543,871 553,433 575,567 580,415
609 Atrium Underwriters Limited 2,744,234 2,905,377 3,128,724 3,185,607
623 Beazley Furlonge Limited 3,237,747 3,285,149 3,971,374 4,781,292
727 S A Meacock & Company Limited 896,256 943,679 971,078 978,560
958 Canopius Managing Agents Limited 721,004 268,646 — —
1176 Chaucer Syndicates Limited 422,886 456,986 551,376 604,413
1200 Argo Managing Agency Limited 298,071 233,819 194,697 —
1729 Asta Managing Agency Limited 139,443 103,758 42,000 —
1884 Charles Taylor Managing Agency Limited — 25,000 — —
1910 Asta Managing Agency Limited — — 1,205,896 —
1991 R&O Managing Agency Limited 118,995 60,000 — —
2010 Cathedral Underwriting Limited 818,022 792,006 871,081 891,542
2014 Pembroke Managing Agency Limited 1,494,054 1,484,840 1,516,902 900,000
2121 Argenta Syndicate Management Limited 160,341 260,341 — —
2525 Asta Managing Agency Limited 116,690 134,698 171,414 173,558
2689 Asta Managing Agency Limited — — — 815,483
2791 Managing Agency Partners Limited 3,884,990 3,650,489 3,855,235 3,905,942
4444 Canopius Managing Agents Limited — — 101,429 —
5820 ANV Syndicates Limited 369,348 269,738 109,479 —
6103 Managing Agency Partners Limited 562,334 226,476 253,649 289,885
6104 Hiscox Syndicates Limited 1,236,224 1,187,998 1,180,437 870,875
6105 Ark Syndicate Management Limited 617,738 638,070 — —
6107 Beazley Furlonge Limited 423,737 423,737 423,737 598,211
6111 Catlin Underwriting Agencies Limited 1,568,175 1,628,877 1,868,500 —
6113 Barbican Managing Agency Limited 160,528 — — —
6117 Argo Managing Agency Limited 1,362,210 903,993 1,808,246 2,495,000
7200 Members’ agent pooling arrangement 380,695 220,774 49,640 —
7201 Members’ agent pooling arrangement 1,944,625 1,129,424 255,745 —
7202 Members’ agent pooling arrangement 691,575 395,365 89,845 —
7203 Members’ agent pooling arrangement 189,931 135,355 14,565 —
7211 Members’ agent pooling arrangement 793,461 101,070 — —
7217 Members’ agent pooling arrangement 203,691 229,149 241,878 254,608
7227 Members’ agent pooling arrangement — 39,758 74,545 —
Total 35,492,277 32,245,401 33,668,815 32,633,421
* Including the new acquisitions in 2016. Financial statements
Annual report and financial statements 2016 — Helios Underwriting plc 61
Financial statements
26. 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 2016 Restated 31 December 2015
Group
£’000
Syndicate
£’000
Total
£’000
Group
£’000
Syndicate
£’000
Total
£’000
Assets
Intangible assets 10,732 — 10,732 8,511 — 8,511
Financial assets at fair value through profit or loss 7,263 38,317 45,580 4,644 27,153 31,797
Reinsurance assets:
– reinsurers’ share of claims outstanding — 9,674 9,674 — 5,657 5,657
– reinsurers’ share of unearned premium — 2,548 2,548 — 1,501 1,501
Other receivables, including insurance and reinsurance receivables 3,480 26,763 30,243 1,216 19,211 20,427
Deferred acquisition costs — 4,255 4,255 — 2,926 2,926
Prepayments and accrued income — 187 187 15 129 144
Cash and cash equivalents 4,049 2,163 6,212 2,223 1,411 3,634
Total assets 25,524 83,907 109,431 16,609 57,988 74,597
Liabilities
Insurance liabilities:
– claims outstanding — 50,087 50,087 — 32,985 32,985
– unearned premium — 16,821 16,821 — 11,169 11,169
Deferred income tax liabilities 3,581 — 3,581 3,172 — 3,172
Other payables, including insurance and reinsurance payables 3,028 11,680 14,708 1,586 7,774 9,360
Accruals and deferred income 1,590 125 1,715 1,577 (89) 1,488
Total liabilities 8,199 78,713 86,912 6,335 51,839 58,174
Equity attributable to owners of the Parent
Share capital 1,460 — 1,460 1,050 — 1,050
Share premium 15,399 — 15,399 9,901 — 9,901
Other reserves — — — — — —
Retained earnings 466 5,194 5,660 (677) 6,149 5,472
Total equity 17,325 5,194 22,519 10,274 6,149 16,423
Total liabilities and equity 25,524 83,907 109,431 16,609 57,988 74,597
Below is an analysis of the free working capital available to the Group:
Group
31 December
2016
£’000
31 December
2015
£’000
Funds at Lloyd’s supplied by:
Quota share reinsurers 13,641 9,378
Stop loss reinsurers 1,924 1,447
Group owned 4,082 3,894
Total Funds at Lloyd’s supplied (excluding solvency credits) 19,647 14,719
Group funds available:
Financial assets 7,263 4,644
Cash 4,049 2,223
Total funds 11,312 6,867
Less Group Funds at Lloyd’s (4,083) (3,894)
Free working capital 7,229 2,973 Helios Underwriting plc — Annual report and financial statements 2016 62
Notes to the financial statements continued – Year ended 31 December 2016
27. Effects of a reclassification in the year 2015 comparatives 
The year 2015 comparatives, at consolidation level, in these Financial Statements include the effects of the reclassification of the foreign 
exchange differences, for the year 2015, originally included in the other comprehensive income, net of tax, amounting to £121,000, and now 
reclassified into the income statement, within the other income line.
These foreign exchange differences arose as a result of the retranslation of the syndicates’ results whose functional currency is not the 
Pound Sterling, into the Pound Sterling as the reporting currency to Lloyd’s. Hence, such foreign exchange differences were accounted 
for as other comprehensive income within the syndicates’ reported results.
As the functional and presentation currency of the Helios Group is the Pound Sterling, such foreign exchange differences were accounted 
for as other income in the income statement in the consolidated Financial Statements of the year ended 31 December 2016.
As a result, to aid consistency in presentation, the comparative amount for the year ended 31 December 2015 of £121,000 has been reclassified 
and the effects of the reclassification resulted in the restatements as set out below:
(i) Effect on the Consolidated Income Statement 
Profit for the year
Restated
2015
£’000
Profit for the year 2015 – as originally reported 789
Effect of reclassification of foreign exchange differences from other comprehensive income  
into other income in the income statement 121
Profit for the year 2015 – as restated 910
(ii) Effect on the Consolidated Statement of Financial Position 
Other
 reserves
£’000
Restated
2015
retained 
earnings
£’000
Equity reserves:
At 31 December 2015 – as originally reported 121 5,351
Effect of reclassification in foreign exchange differences, as described above (121) 121
At 31 December 2015 – as restated — 5,472
(iii) Effect on the “earnings per share” (Note 11)
As originally
 reported
Effect of
 reclassification
As
restated
Profit for the year 2015 (£’000) 789 121 910
Weighted average number of ordinary shares in issue 9,411,794 — 9,411,794
Basic and diluted earnings per share 8.38p 1.29p 9.67p
28. Assets pledged as security
On 21 April 2016, the Company has registered a security charge with the Companies House against a prospective revolving credit facility 
(RCF) with its bank. The security charge is on all the assets of the Group.
The RCF is still not in place, and it will be a formally initiated and agreed upon, as and when the Group’s management decides that additional 
funds are required to meet its strategic plans. Financial statements
Annual report and financial statements 2016 — Helios Underwriting plc 63
Financial statements
29. Events after the financial reporting period
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:
Pooks Limited
On 25 January 2017, Helios Underwriting plc acquired 100% of the issued share capital of Pooks Limited for a total consideration of 
£308,000. Pooks 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 £262,000, giving rise to goodwill of £46,000 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 — 516 516
Financial assets at fair value through profit or loss 732 — 732
Reinsurance assets:
– reinsurers’ share of claims outstanding 206 — 206
– reinsurers’ share of unearned premium 38 — 38
Other receivables, including insurance and reinsurance receivables 896 — 896
Deferred acquisition costs 63 — 63
Prepayments and accrued income 5 — 5
Cash and cash equivalents 102 — 102
Insurance liabilities:
– claims outstanding (1,019) — (1,019)
– unearned premium (327) — (327)
Deferred income tax liabilities — (98) (98)
Other payables, including insurance and reinsurance payables (822) — (822)
Accruals and deferred income (30) — (30)
Net assets acquired (156) 418 262
Satisfied by:
Cash and cash equivalents 871 — 871
Less: loan to previous owner transferred on acquisition (563) — (563)
Total consideration 308 — 308
Goodwill 464 (418) 46
2014 year of
account
2015 year of
account
2016 year of
 account
Capacity acquired 749,927 756,697 784,666
Pooks Limited was formally owned by Nigel Hanbury, a Director of the Company. The total consideration was established in the same way as 
any other acquisition, whereby the starting point was based on an independent Humphrey’s valuation. Helios Underwriting plc — Annual report and financial statements 2016 64
Notes to the financial statements continued – Year ended 31 December 2016
29. Events after the financial reporting period continued
Charmac Underwriting Limited
On 3 April 2017, Helios Underwriting plc acquired 100% of the issued share capital of Charmac Underwriting Limited for a total consideration 
of £2,240,000. Charmac Underwriting 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 £2,142,000, giving rise to goodwill of £98,000 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 37 642 679
Financial assets at fair value through profit or loss 1,677 — 1,677
Reinsurance assets:
– reinsurers’ share of claims outstanding 439 — 439
– reinsurers’ share of unearned premium 119 — 119
Other receivables, including insurance and reinsurance receivables 2,067 277 2,344
Deferred acquisition costs 248 — 248
Prepayments and accrued income 9 — 9
Cash and cash equivalents 428 — 428
Insurance liabilities:
– claims outstanding (2,120) — (2,120)
– unearned premium (832) — (832)
Deferred income tax liabilities (73) (175) (248)
Other payables, including insurance and reinsurance payables (569) — (569)
Accruals and deferred income (32) — (32)
Net assets acquired 1,398 744 2,142
Satisfied by:
Cash and cash equivalents 2,240 — 2,240
Total consideration 2,240 — 2,240
Goodwill 842 (744) 98
2014 year of
account
2015 year of
account
2016 year of
 account
Capacity acquired 1,417,006 1,491,671 1,622,890
Future dividends
In respect of the year ended 31 December 2016 a final dividend of 1.5p per share together with a special dividend of 4p per share, amounting 
to a total dividend of £803,000, is to be proposed at the Annual General Meeting on 28 June 2017. These Financial Statements do not reflect 
this dividend payable. Helios Underwriting Plc commitment to environmental issues is reflected in 
this Annual Report which has been printed on Satimatt which are FSC
®
 
certified papers. 
This document was printed by Park Communications using their 
environmental print technology, which  minimises the impact of printing 
on the environment. 99% of all dry waste associated with this production 
is diverted from landfill. 
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)
Arthur Roger Manners (Finance Director)
Company secretary
Martha Bruce
Bruce Wallace Associates Limited
120 Pall Mall
London SW1Y 5EA
Company number
05892671
Registered office
40 Gracechurch Street
London EC3V 0BT
Statutory auditors
PKF Littlejohn LLP
1 Westferry Circus
Canary Wharf
London E14 4HD
Lloyd’s members’ agent
Hampden Agencies Limited
40 Gracechurch Street
London EC3V 0BT
Registrars
Neville Registrars Limited
Neville House
18 Laurel Lane
Halesowen B63 3DA
Nominated adviser and broker
Stockdale Securities Limited
Beaufort House, 15 St. Botolph Street
London EC3A 7BB
Registered officers and advisers Helios Underwriting plc Annual report and financial statements 2016