Helios Underwriting plc Annual report and financial statements 2015
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• Helios operates at Lloyd’s 
• Helios buys Limited Liability Vehicles (LLV) – companies that 
underwrite at Lloyd’s 
• LLV’s own capacity and have estimated undistributed  
or “pipeline” profits
• The capacity participates on and shares in the results  
of leading Lloyd’s syndicates
Underwriting Year
Capacity acquired 2013 2014 2015 2016
Capacity at beginning 
of underwriting year – £m 12.9  18.1  20.5  28.1 
Acquired in Year 1 – £m 3.9  4.7  6.3  4.6 
Acquired in Year 2 – £m 4.4  6.3  4.5  — 
Acquired in Year 3 – £m 5.8  5.2  —  — 
Final / current capacity – £m 27.0 34.4 31.3 32.7
Capacity reinsured – £m 6.4 14.9 16.1 22.9
Proportion reinsured 24% 43% 52% 70%
Helios retained capacity 20.6 19.5 15.2 9.8
Helios proportion retained 76% 57% 48% 30%
Overview of Helios Underwriting plc
Acquisition Strategy
Acquired 16 LLV’s since 2013
Helios Capacity Fund
£32.7m of capacity for 2016 
253% increase in capacity owned since Jan 2013 
Portfolio of participations on 20 syndicates 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
Each LLV acquired increases capacity for three open underwriting years. 
Position as at May 2016. •  Premium written during the period totalled 
£21.5m (2014: £17.1m)
•  Increased use of quota share reinsurance 
to reduce exposure
•  Profits reduce as levels of reinsurance have increased
•  Operating profit before tax, goodwill and 
impairment of £609,000 (2014: £1,351,000)
• Profit for the year £789,000 (2014: £2,056,000)
• Earnings per share of 8.38p (2014: 24.11p)
•  2013 underwriting year of account profit return on 
capacity of 14.20% (2012 underwriting year: 13.01%)
•  Recommended total dividend for this year of 5.0p 
per share (2014: 5.1p per share)
•  Adjusted net asset value per share (Humphrey & Co 
valuation) – £1.97 per share (2014: £1.72 per share)
•  30p per share growth (increase in adjusted net 
assets plus dividends) in shareholder value 
represents 17% increase in value to shareholders
Highlights
+37%
2016 28.1
2015 20.5
2014 18.1
+131%
Total 2015 30
Total 2014 13
Adjusted net asset 
Dividend 
-62%
2015 789
2014 2,056
Growth in shareholder value (pence per share)
Growth in capacity (£m)
Profit for the year (£’000)
30
28.1
789
14
13 14
15
14
+15%
2015 197
2014 172
2013 164
Adjusted net asset value (Humphrey’s Valuation) 
per share (pence)
197
13 14 15
15
16
15
Strategic report
1 Highlights
2 Chairman’s statement
4 Chief Executive’s review
8 Lloyd’s Advisers’ report – Hampden Agencies
10 Summary financial information
Governance
11 Board of Directors
12 Report of the Directors
13 Corporate governance statement
15 Statement of Directors’ responsibilities
Financial statements
16 Independent auditors’ report
17 Consolidated statement of comprehensive income
18 Consolidated statement of financial position
19 Parent Company statement of financial position
20 Consolidated statement of changes in equity
20 Parent Company statement of changes in equity
21 Consolidated statement of cash flows
22 Parent Company statement of cash flows
23 Notes to the financial statements
60 Registered officers and advisers
8
25
5
5
Strategic report
Annual report and financial statements 2015  Helios Underwriting plc                  1 Chairman’s statement
Positive results
Summary
Your Board is pleased to report a set of 
encouraging results for 2015 which reflects 
the reduced risk profile of the Group and a 
focus on increasing the capital available to 
the Group to fund a number of advantageous 
acquisitions of corporate members. 
Accordingly the profits before tax, goodwill 
and impairment for the year were £609,000 
(2014: £1,351,000), whilst the adjusted net 
asset value of the Group (Humphrey’ s 
Valuation) has increased to £1.97 per share 
(2014: £1.72) – an increase of 15%.
Helios has been reducing its exposure to the 
underwriting risk on the portfolio for the last 
two years and this reduction is reflected in 
the reduction in profitability this year . Underwriting 
profits of £1.4m (2014: £0.7m) have been ceded 
to reinsurers. In addition the premiums paid for 
Stop Loss cover increased by £300,000.
The net aggregate contribution made from 
acquiring companies at above and below fair 
value reduced from £785,000 to £108,000 
reflecting the more competitive environment 
for the buying of corporate members. The 
Board is committed to being selective on 
the acquisitions made in the future.
• Adjusted net asset value 
increases 15% to £1.97p per 
share (£1.72p) 
• Six acquisitions in 2015 
adding £6.3m of capacity 
to 2015 underwriting year 
– 31% increase
• Two acquisitions agreed 
in 2016 adding £4.6m of 
capacity to 2016 underwriting 
year – 16% increase
• 5.0p per share total 
dividend payable (2014: 5.1p)
Acquisition strategy continues to build the 
fund of capacity.
Sir Michael Oliver
Non-executive Chairman
Year of account – £m
2013 2014 2015 2016
Capacity at 1 January 2015 21.2 22.8 20.5 —
Acquired during 2015 5.8 6.3 6.3 —
Capacity at 31 December 2015 27.0 29.1 26.8 28.1
Acquired to date in 2016 — 5.2 4.5 4.6
Current total capacity 27.0 34.4 31.3 32.7
Strategy
We have continued to implement our strategy 
of building the portfolio of syndicate capacity. 
During the year the key developments were:
 » The profit for the year reflects the 
additional reinsurance cover bought to 
reduce the group exposure to large losses.
 » We have changed the accounting policy 
relating to the amortisation of capacity 
value to hold the capacity at fair value 
in the balance sheet in the future.
 » The management team has been 
strengthened by the appointment 
of an experienced Finance Director, 
Arthur Manners.
Capacity acquired
During the year a further six corporate members 
were acquired that increased the capacity for 
2013 to 2015 years of account, and a further 
two corporate members have been bought 
since 31 December 2015, adding a further 
£4.6m of capacity to the open years. These 
companies have increased the capacity 
underwritten on 2013 to 2016 underwriting 
years as shown below.
2                  Helios Underwriting plc  Annual report and financial statements 2015 These acquisitions in 2015 and 2016 to date 
were purchased for a total consideration of 
£11m, of which £3m was satisfied by the 
issue of new shares to certain vendors. We 
continue to grow and manage the quality of 
the portfolio of participations on the leading 
Lloyd’s syndicates. 
Underwriting result
The calendar year profits for 2015 have 
been generated from profits recognised in the 
portfolio from the 2013 and 2014 underwriting 
years. During 2015, the 2013 underwriting 
year mid-point estimates increased from 8.1% 
return on capacity to a final result of 14.1%. The 
mid-point estimate for the 2014 underwriting 
year is currently 8.7% and this year has made 
a healthy contribution to the 2015 result. 
As expected, the 2015 underwriting result has 
not made a significant contribution during the 
first 12 months but given the benign claims 
environment for the 2015 underwriting year 
to date, it should provide additional 
recognised profits for the next two 
financial years.
Capacity value
The Board has taken the view that it is 
appropriate to carry the value of the capacity 
acquired on the balance sheet at fair value 
at the date of acquisition. The building of a 
portfolio of participations on leading Lloyd’s 
syndicates remains the strategic objective. 
Therefore the Board decided that it was not 
appropriate to amortise the cost of the capacity 
acquired and instead to change the accounting 
policy to include an impairment test will be 
carried out at each reporting date to assess 
whether the current value exceeds the value 
carried in the balance sheet. The 2014 results 
have been restated for this accounting policy.
Reinsurance 
The proportion of the portfolio supported by 
the reinsurance market has increased and 
now the participants in the panel include private 
capital. By broadening the access to the Helios 
portfolio to private capital, we have expanded 
the potential pool of capital available to support 
the growth of the portfolio in the future. We 
expect to continue to use this source of financing 
in the future.
The reinsurers assist in the financing of their 
share of the underwriting capital required for 
the corporate members by providing letters 
of credit as Funds at Lloyd’s amounting to 
£11m at 31 December 2015. 
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 3.5p per share (2014: 3.6p), totals 
5p per share (2014: 5.1p). The special 
dividend equates to approximately 20% of 
the 1.8m cash released from the 2013 year 
of account. These dividends will be payable to 
shareholders on the register on 10 June 
2016. As last year, the Board will put in 
place a Scrip Dividend Scheme to give 
shareholders the opportunity to elect receive 
dividends in the form of new ordinary shares 
instead of cash. If approved the dividend will 
be paid in a single payment or share issue 
on 6 July 2016. 
Sir Michael Oliver
Non-executive Chairman
27 May 2016
-2%
2015 5.0
2014 5.1
2013 4.5
Final dividend
Special dividend
Dividends (p)
5.0
Special dividend of 3.5p 
per share (2014: 3.6p per 
share) together with a final 
dividend of 1.5p per share 
(2014: 1.5p per share).
13 14 15
1.5 1.5 1.5
3
3.6
3.5
Strategic report
Annual report and financial statements 2015  Helios Underwriting plc 3 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. This acquisition 
strategy has increased the portfolio from £13m 
at the start of the 2013 underwriting year to 
£33m currently. Since 1 January 2015 over 
£10m of capacity has been acquired. We 
remain selective on the purchases and have 
encountered increasing competition from other 
potential purchasers. There remains a risk to 
the implementation of our strategy if suitable 
vehicles are not available at attractive prices.
Quality of portfolio
We continue to focus ruthlessly on the 
quality syndicates. So participations on weaker 
syndicates in acquired portfolios are sold to 
• 70% of the portfolio managed 
by leading managing agents 
at Lloyd’s 
• Helios portfolio underwriting 
results outperform Lloyd’ s 
average return on capacity by 3%
• Helios cedes 70% of portfolio at 
the start of the underwriting year
• Helios expects to retain 
approximately 50% of 
overall underwriting result 
Maintaining the quality of the portfolio.
Nigel Hanbury
Chief Executive
maintain the overall quality. The seven largest 
syndicate participations account for over 70% 
of the portfolio. These syndicates are managed 
by the leading managing agents at Lloyd’s 
and 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 four years is 11% and 
is on average 3% higher than the average 
of the Lloyd’s market. 
The combined ratio of the portfolio (before 
Helios corporate costs) has been 4% higher 
on average over the last four calendar years. 
These incremental returns demonstrate the 
diversity and the breadth of underwriting 
expertise within the businesses comprising 
the portfolio of syndicate capacity.
Helios portfolio
Top seven syndicates for 2016
Syndicate Managing agent
2016 Helios
portfolio
capacity
 £’000
2016
Helios
portfolio
 % of total Largest class
510 T okio Marine Kiln Syndicates Ltd 4,494 16.0 US$ Property
2791 Managing Agency Partners Limited 3,412 12.1 Reinsurance
623 Beazley Furlonge Limited 3,318 11.8 US$ Non-Marine Liability
609 Atrium Underwriters Limited 2,586 9.2 US$ Property
33 Hiscox Syndicates Limited 2,277 8.1 US$ Property
6117/1910 Asta Managing Agency Limited 2,713 9.7 Reinsurance
6111 Catlin Underwriting Agencies Limited 1,548 5.5 Reinsurance
Subtotal 20,348 72.4 
Other 7,747 27.6 
Total 2016 Helios portfolio 28,095 100.0
Source: 2016 syndicate capacities sourced from Lloyd’s.
4                  Helios Underwriting plc  Annual report and financial statements 2015 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. For the 2016 underwriting year the 
panel of reinsurers was expanded to include 
private capital, a potential significant source 
of underwriting capital in the future. 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
2013 2014 2015 2016
Helios capacity at outset 6.4 5.4 6.1 8.4
Retained capacity in Yr 1 3.9 2.6 4.5 1.4
Retained capacity in Yr 2 and Yr 3 10.3 11.5 4.5 —
Helios retained capacity 20.6 19.5 15.1 9.8
% of “off-risk” capacity 50% 60% 30% 0%
Ceded capacity at outset 6.4 12.7 14.3 19.7
Further capacity ceded to QS — 2.2 1.8 3.2
Total capacity ceded 6.4 14.9 16.2 22.9
Current total capacity 27.0 34.4 31.3 32.7
Helios share of total capacity 76% 57% 48% 30%
2011 2012 2013 2014 Q8
Combined ratio compared with Lloyd’s and peer group: 2012–2015 (%)
� Helios � Lloyd’s
91.1
89.6
88.1
87.6
90.0
87.0
86.8
83.5
2012 2013 2014 2015
� Helios � Lloyd’s Market
Return on capacity (%)
0%
Underwriting Year of Account
Result as percentage of capacity
2%
4%
6%
8%
10%
Helios return on capacity 
is on average 3% higher 
than the Lloyd’s market 
over the last four years.
7.7
4.0
13.1
11.9
14.1
9.3
8.7
4.8
12%
14%
16%
Strategic report
Annual report and financial statements 2015  Helios Underwriting plc                  5 Chief Executive’s review continued
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 as the incidence of insured 
natural disasters and large loss events has 
been below normal expectations. 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 it would 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 realistic disaster scenarios (“RDSs”) 
prescribed by Lloyd’ s. The RDS events comprise 
16 compulsory events to assess the potential 
impact across the portfolio from the type of 
event proscribed. The nature and the size of 
the prescribed events have remained similar 
and the individual syndicate net exposures 
will depend on the business underwritten 
during the year and the reinsurance 
protections purchased at syndicate level.
Realistic disaster scenarios – gross and net reinsurance (%)
HUW’s aggregate current and historic quarterly progression of mid-point estimates (%)
Two events – 
NE windstorm
Gulf of Mexico 
windstorm
Florida 
windstorm – 
Pinellas
AEP 1 in 30 – 
US windstorm
San Francisco 
earthquake
Florida 
windstorm – 
Miami
Los Angeles 
earthquake
Two events 
– Carolina 
windstorm
Japanese 
earthquake
New Madrid 
earthquake
�  Final net loss 
as percentage 
of 2016 capacity
�   Final gross loss 
as percentage 
of 2016 capacity
Note:  The chart only shows the top ten net losses, not all RDSs. The AEP (aggregate exceedance probability) 1 in 30 figure is the weighted average of each syndicate’s 1 in 30 projections 
which serves as a guide to the portfolio aggregate though the correct approach would involve combining the underlying distribution curves which are not provided in the SBFs. 
Source: 2016 Syndicate Business Plans.
50.8
19.3
51.3
20.7
59.2
22.9
42.8
18.6
53.8
19.9
61.7
21.5
27.4
15.0
29.8
15.0
51.7
19.4
60.5
20.8
20
Return on premium limit (%)
15
10
5
0
-5
2012 YOA 2013 YOA 2014 YOA
Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12
2011 YOA 2010 YOA 2009 YOA 2008 YOA
6                  Helios Underwriting plc  Annual report and financial statements 2015 The estimated aggregate net largest exposure 
for the Helios portfolio, before quota share 
and stop loss reinsurance, remains two separate 
hurricanes to affect the US Northeast Coast. 
The aggregate net loss has reduced to 
23% (2015: 28%) of stamp capacity as the 
syndicates have reduced both their gross 
and net exposures. All the largest natural 
catastrophes would be substantial insured 
losses in excess of US$100bn, events that 
would generate a great deal of publicity.
Helios continues to buy stop loss reinsurance 
that will reduce the impact of a significant 
loss to the portfolio. 
Capacity value
The value of the portfolio of the syndicate 
capacity remains an important factor in delivering 
overall returns to shareholders. The Enterprise 
value, 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 impairment charge for this year of £63,000 
indicates a small reduction in the fair value 
of the syndicate capacity as a result of the 
fluctuations in the auction values of the 
syndicates in the portfolio.
Capital position 
The underwriting capital for the Helios 
portfolio is supplied as follows:
Underwriting 
capital as at 
31 December
2015 
£m
Reinsurance panel 10.8
Helios 3.9
Total 14.7
Helios has generated free cash of £1.8m 
in 2016 from the distribution of its share of 
the final underwriting profits for the 2013 
underwriting year and early releases from 
the 2014 and 2015 years. These profits have 
assisted in funding the recent acquisitions 
and will provide working capital for the next 
12 months. A bank facility is in place to fund 
cash shortfalls. 
Corporate costs
Given the reduction in risk assumed and 
the associated reduction in underwriting 
profits, it remains essential to manage the 
central costs of Helios effectively. The fees 
and profit commissions receivable from the 
reinsurance panel offset a proportion of the 
costs incurred. 
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.
Nigel Hanbury
Chief Executive
27 May 2016
+23%
2016 112
2015 91
2014 79
2013 42
2012 29
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.
112
14 15 16 13 12
Strategic report
Annual report and financial statements 2015  Helios Underwriting plc                  7 Lloyd’s Advisers’ report – Hampden Agencies
With the closure of the 2013 Account at 
31 December 2015 Lloyd’s has now reported 
twelve consecutive years of underwriting 
profits for private capital. The 2013 three year 
account result for the Helios portfolio was 
14.2% of capacity, which compares with 
the average for the portfolio of syndicates 
supported by private capital of 12.5% 
of capacity. 
Underwriting profitability is set to continue for 
both the 2014 and 2015 Accounts with the 
mid-point estimate for the Helios portfolio at 
Q8 on 2014 being 8.9% of capacity, a 0.4% 
improvement on 2013 at the same stage. 
The 2013 result and estimates for 2014 and 
2015 have benefited from below average 
major loss activity. Global insured major 
losses, according to Swiss Re Sigma, were 
$37bn in 2015, $44bn in 2014 and $45bn 
in 2013; these were significantly below the 
ten year average of $62bn a year. For 2016 
Hampden has a target profit, excluding prior 
years, of 0% to 5% of capacity assuming a 
long term average for catastrophe losses.
The Insurance Market in 2016
So far in 2016 the trend of rate reductions 
have continued in most classes of business 
other than motor. Overall, market conditions 
are 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. 
Property catastrophe reinsurance rates 
at 1 January 2016 have now declined for 
four years in succession. Guy Carpenter 
estimates rates reduced by 5% to 8% 
compared with reductions of over 11% 
a year earlier.
Property and casualty insurance rates in the 
United States began to decline during the 
first quarter of 2015. This has continued for 
a fifth successive quarter with the Council of 
Insurance Agents and Brokers reporting rate 
reductions of 3.7% in Q1 2016, the largest 
fall since reductions started in Q1 2015. The 
impact of rate reductions has reduced net 
written premium growth for the full year 2015 
to only 2.7%, which is lagging nominal GDP 
growth of 3.5%. 
We are now at the ‘soft market’ stage in 
the insurance cycle when we expect the 
outperformance of quality syndicates relative 
to the Lloyd’s average to increase compared 
with the ‘hard market’ years. Key success 
characteristics of quality syndicates include a 
focus on conservative reserving, often above 
the best estimate recommended by external 
actuaries, and a willingness to walk away 
from under-priced business rather than 
chase growth in premium income. 
The Investment Environment
Our view is that disciplined underwriters can 
make a profit in today’s market. Importantly, 
underwriting discipline is reinforced by two 
key factors which were not present in the late 
1990s. First, the investment environment. 
Low and declining bond yields now offer little 
protection to sub-par underwriting. We think 
it is no coincidence that the US industry 
made underwriting profits in eight years out 
of ten in the 1950s when the US Treasury 
10-year yield averaged 3.2% and so far 
this decade the average yield is 2.5% with 
underwriting profits being made three years 
out of six. 
Second, the process of setting regulatory 
capital for insurers has become much more 
robust with the introduction by the Prudential 
Regulatory Authority of the Solvency II regime 
which was fully implemented by Lloyd’s for 
the 2016 year. Syndicates are required to 
calculate their own capital requirements to 
Solvency II standards. Capital requirements 
are therefore a risk sensitive measure with 
the two most important risks of insurers 
being underwriting risk and reserving risk. 
The Lloyd’s capital requirements have been 
on an upward trend as a percentage of net 
earned premiums as the margin for achieving 
underwriting profitability has reduced as rates 
have declined.
Outperformance expected 
by quality syndicates 
The Helios portfolio 
continues to provide a 
good spread of business.
Market conditions are the most competitive in Lloyd’s 
since the late 1990s.
8                  Helios Underwriting plc  Annual report and financial statements 2015 Supply of Capital Close to All Time Highs
Good underwriting results continue to attract 
capital to the insurance 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 
2015 alternative capital continued to grow 
and now accounts for 19% of total dedicated 
reinsurance capital according to broker, 
Guy Carpenter. The market share of alternative 
capital has increased by 138% since 2008 
and has exacerbated the level of rate 
reductions in particular for property 
catastrophe reinsurance business. Since 
2008 Aon Benfield estimates that total 
reinsurance capital has increased by 55% 
although it fell back marginally by 2% to 
$565bn at 31 December 2015.
Balance of Power Shifting  
to Net Buyers of Reinsurance
With net written premium growth slowing down 
and underwriting margins being squeezed by 
a combination of reducing rates and increased 
expenses, one way to mitigate downside risk 
is to buy more reinsurance. The balance of 
power has continued to shift to net buyers 
of reinsurance from the sellers of reinsurance. 
One benefit of current market conditions is that 
syndicates have been able to secure a fuller 
reinsurance programme at more reasonable 
cost than in previous years in 2016.
Reserve Strength is Becoming 
Increasingly Important
Bottom line results in the current rating 
environment are becoming increasingly 
dependent on conservative reserving, 
given the modest forecast for pure year 
underwriting return. We consider the Helios 
portfolio of syndicates to be conservatively 
reserved overall with the last three year 
account closed result for 2013 including a 
prior year release of 4.7% of capacity from 
the 2012 and prior years. 
We have analysed the reserve strength of the 
2016 Helios portfolio of freehold syndicates 
(excluding Special Purpose Syndicates which 
have a limited tenure) at the closure of the 
2013 Account into the 2014 Account of 
those syndicates. The ratio of Incurred but 
Not Reported reserves to Net Outstanding 
Claims reserves was 115% at the closure of 
the 2013 Account of these syndicates into 
the 2014 Account. There will be two further 
calendar years of development before the 
2016 Account receives its share of 2015 and 
prior year reserves so this measure is a proxy 
for future reserve strength. The 115% ratio 
compares favourably with an equivalent figure 
for private capital syndicates of 72% in 2007 
and only 45% in 2004. However, over this 
period, we would expect part of the increase 
in IBNR to be due to the “tail” of claims 
settlement getting longer; Lloyd’s reports that 
coverholder business which has a longer “tail” 
has increased from 25% to 32% of Lloyd’s 
income between 2002 and 2015.
Conservative reserving we believe 
has an additional benefit in that it 
reinforces pricing discipline in today’s 
more challenging underwriting conditions. 
This is particularly important in liability 
business where under-reserving can lead 
to under-pricing business which in turn 
becomes under-reserved. A relatively modest 
pure year underwriting loss can then be 
magnified by prior year deteriorations 
which on liability business can be for 
three or more years.
Our Approach in This Market –  
A Focus on Quality
Our approach in this market is to focus 
syndicate portfolios on quality syndicates. 
The Helios portfolio for 2016 continues to 
provide a good spread of business across 
managing agents and classes of business. 
The two largest classes of business remain 
reinsurance at 28.6% and US dollar property 
insurance at 17.7% shown in the ‘doughnut’ 
chart below. Liability and motor exposures 
provide balance against the more volatile 
property catastrophe exposures as well as 
contributing through diversification to lower 
capital requirements.
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) and ‘C’ (Market Average). 
Helios continues to focus its portfolio on the 
quality syndicates which have traditionally 
outperformed in difficult times. The Helios 
portfolio contains 55% by underwriting capacity 
in syndicates graded ‘AA’ and ‘A’ by Hampden.
Hampden Agencies
27 May 2016
Investment returns no  
longer provide a cushion 
to sub par underwriting.
Non-US$ non-marine liability 8.6%
Non-US$ non-marine property 7.7%
Marine general 5.9%
Energy 3.9%
Motor 7.1%
Accident and health 3.5%
Aviation 2.9%
Pecuniary loss 3.0%
28.6% Reinsurance
0.0 % Life
17.7% US$ non-marine property
11.1% US$ non-marine liability
% of total gross 
premiums
Classes of business for 2016 (%)
Strategic report
Annual report and financial statements 2015  Helios Underwriting plc                  9 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 2015
Underwriting Year
Helios retained
 capacity at
 31 December
2015
£m
Portfolio mid 
point forecasts 
Total profit 
currently 
estimated
% earned 
in the 2015 
calendar 
year
Helios 
profits
2013 20.6 14.2% 2,925 41% 1,198
2014 14.3 8.9% 1,273 67% 854
2015 10.6 N/A 12
2,064
Pre-acquisition (190)
Fees from reinsurers 385
Stop loss costs (407)
Operating costs (1,334)
Other income 91
Operating profit 609
Year to 31 December 2014
Underwriting Year
Helios retained
 capacity at
 31 December
2014
£m
Portfolio mid 
point forecasts 
Total profit 
currently 
estimated
% earned 
in the 2014 
calendar 
year
Helios 
profits
2012 21.1 13.1% 2,764 52% 1,449
2013 14.8 8.5% 1,258 76% 952
2014 7.8 N/A 112
2,513
Pre-acquisition (225)
Fees from reinsurers 244
Stop loss costs (151)
Operating costs (1,375)
Other income 345
Operating profit 1,351
Summary Balance Sheet
The summary Group balance sheet excludes items relating to syndicate participations. See Note 25 for further information.
2015 2014
Intangible assets 8,511  6,368
Funds at Lloyd’s 3,894  925
Other cash 2,973  3,114
Other assets 1,231  2,207
Total assets 16,609  12,614
Deferred tax 3,172  2,352
Other liabilities 3,163  1,798
Total liabilities 6,335  4,150
Total equity 10,274  8,464
Cash flow
Helios has generated £2.9m of cash in 2016 from the distribution of the profits from the 2013 underwriting year, of which £1.1m was retained 
within funds at Lloyd’s.
10                  Helios Underwriting plc  Annual report and financial statements 2015 Board of Directors
Sir James Michael Yorrick Oliver, 75
(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, 59
(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, 58
(Non-executive Director)
Jeremy Evans joined Minories Underwriting Agencies 
in 1993, which was subsequently transferred to 
Aberdeen Underwriting Advisers Limited, with specific 
responsibility for its corporate capital plans, including 
the development of a conversion scheme for existing 
members. He is the CEO of Nomina plc as well 
as being a director of Hampden Capital plc and 
Hampden Holdings Limited.
Harold Michael Clunie Cunningham, 68 
(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, 60
(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, 56
(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 will be 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
A N
A N
N
 Nomination and Remuneration Committee N Chairman of Committee Audit Committee A
Annual report and financial statements 2015  Helios Underwriting plc                  11
Governance The Directors present their report and the audited Group and Parent Company Financial Statements for the year ended 31 December 2015.
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 2015 is shown in the Consolidated Statement of Comprehensive Income. The Group profit 
for the year after taxation was £789,000 (2014: £2,056,000).
A dividend of 5.1p per share was paid during calendar year 2015 totalling £457,000 (2014: £384,000).
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 Director is required to retire from the Board by rotation at the forthcoming Annual General Meeting and 
offers himself for re-election as a Director. Michael Cunningham therefore retires by rotation and offers himself for re-election as a Director. 
Arthur Manners, a new Director appointed on 8 April 2016, is required to retire from the Board and offer himself for re-election as a Director.
Policy and practice on the payment of creditors
It is the Group’s policy to:
 » agree the terms of payment at the commencement of business with suppliers;
 » ensure that suppliers are aware of the terms of payment; and
 » pay in accordance with contractual and other legal obligations.
The number of days’ purchases outstanding at 31 December 2015 is nil (2014: nil).
Substantial shareholdings
The substantial shareholders shown below were as at 10 May 2016:
Number 
of shares % holdings
Will Roseff 2,623,505 25.00%
Nigel John Hanbury (either personally or has an interest in) 1,370,872 13.06%
Hampden Capital plc 1,014,560 9.67%
Smith & Williamson Nominees Limited 785,724 7.49%
Roy Nominees Limited 717,500 6.84%
Lynchwood Nominees Limited 595,000 5.67%
Ferlim Nominees Limited 589,875 5.62%
Nicholas Wentworth Stanley 429,839 4.10%
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 27 May 2016.
Nigel Hanbury
Chief Executive
27 May 2016
Report of the Directors
Year ended 31 December 2015
12                  Helios Underwriting plc  Annual report and financial statements 2015 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.
Committees
The Audit Committee of the Company, comprising Michael Cunningham and Andrew Christie (both Non-executive Directors), is chaired by 
Andrew Christie. The Audit Committee is responsible for ensuring that the Group’s financial performance is properly monitored, controlled and 
reported. It also meets the auditors and reviews reports from the auditors relating to the accounting and internal control systems. The Audit 
Committee meets twice per year and with the auditors without management present.
The Nomination and Remuneration Committee of the Company, comprising Sir Michael Oliver, Michael Cunningham and Andrew Christie 
(all Non-executive Directors), is chaired by Michael Cunningham. Other than its Chief Executive, the Company has no employees.
The Company has adopted a model code for Directors’ dealings which is appropriate for an AIM-quoted company 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 5 5 — — 2 2
Nigel Hanbury 5 5 — — — —
Jeremy Evans 5 4 — — — —
Michael Cunningham 5 5 2 2 2 2
Andrew Christie 5 5 2 2 2 2
Average attendance 96% 100% 100%
Corporate governance statement
Year ended 31 December 2015
Annual report and financial statements 2015  Helios Underwriting plc                  13
Governance 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
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.
Corporate governance statement continued
Year ended 31 December 2015
14                  Helios Underwriting plc  Annual report and financial statements 2015 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. 
Statement of Directors’ responsibilities
Year ended 31 December 2015
Annual report and financial statements 2015  Helios Underwriting plc                  15
Governance We have audited the Financial Statements of Helios Underwriting plc for the year ended 31 December 2015 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 2015 
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 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
 » adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from 
branches not visited by us; or
 » the Parent Company Financial Statements are not in agreement with the accounting records and returns; or
 » certain disclosures of Directors’ remuneration specified by law are not made; or
 » we have not received all the information and explanations we require for our audit.
John Perry (Senior statutory auditor)  1 Westferry Circus
For and on behalf of PKF Littlejohn LLP Canary Wharf
Statutory auditor London E14 4HD
27 May 2016
Independent auditors’ report
To the members of Helios Underwriting plc
16                  Helios Underwriting plc  Annual report and financial statements 2015 Note
Year ended
31 December
2015
£’000
Restated
Year ended
31 December
2014
£’000
Gross premium written 6 21,511 17,062
Reinsurance premium ceded (5,582) (3,418)
Net premium written 6 15,929 13,644
Change in unearned gross premium provision 7 (162) (243)
Change in unearned reinsurance premium provision 7 93 (28)
(69) (271)
Net earned premium 5,6 15,860 13,373
Net investment income 8 255 516
Other income 392 150
Revenue 16,507 14,039
Gross claims paid (9,349) (7,435)
Reinsurers’ share of gross claims paid 1,650 1,375
Claims paid, net of reinsurance (7,699) (6,060)
Change in provision for gross claims 615 464
Reinsurers’ share of change in provision for gross claims (431) (319)
Net change in provision for claims 7 184 145
Net insurance claims and loss adjustment expenses 6 (7,515) (5,915)
Expenses incurred in insurance activities (7,571) (5,800)
Other operating expenses (812) (973)
Operating expenses 9 (8,383) (6,773)
Operating profit before goodwill and impairment 6 609 1,351
Goodwill on bargain purchase 20 244 785
Impairment of goodwill 20 (136) —
Impairment of syndicate capacity 13 (63) 25
Profit before tax 654 2,161
Income tax charge 10 135 (105)
Profit for the year 789 2,056
Other comprehensive income for the year, net of tax 121 —
Total comprehensive income for the year 910 2,056
Profit for the year attributable to owners of the Parent 789 2,056
Total comprehensive income for the year attributable to owners of the Parent 910 2,056
Earnings per share attributable to owners of the Parent
Basic and diluted 11 8.38p 24.11p
The profit attributable to owners of the Parent and earnings per share set out above are in respect of continuing operations.
The notes are an integral part of these Financial Statements.
Consolidated statement of comprehensive income
Year ended 31 December 2015
Annual report and financial statements 2015  Helios Underwriting plc                  17
Financial statements  
Note
31 December
2015
£’000
Restated
31 December
2014
£’000
Assets
Intangible assets 13 8,511 6,368
Reinsurance assets:
– reinsurers’ share of claims outstanding 7 5,657 4,682
– reinsurers’ share of unearned premium 7 1,501 1,014
Other receivables, including insurance and reinsurance receivables 15 20,427 16,379
Prepayments and accrued income 3,070 2,067
Financial assets at fair value through profit or loss 16 31,797 22,977
Cash and cash equivalents 3,634 3,605
Total assets 74,597 57,092
Liabilities
Insurance liabilities:
– claims outstanding 7 32,985 26,179
– unearned premium 7 11,169 8,005
Deferred income tax liabilities 14 3,172 2,352
Other payables, including insurance and reinsurance payables 18 9,360 6,213
Accruals and deferred income 1,488 1,475
Total liabilities 58,174 44,224
Equity
Equity attributable to owners of the Parent:
Share capital 19 1,050 853
Share premium 19 9,901 6,996
Other reserves 121 —
Retained earnings 5,351 5,019
Total equity 16,423 12,868
Total liabilities and equity 74,597 57,092
The Financial Statements were approved and authorised for issue by the Board of Directors on 27 May 2016, and were signed on its behalf by:
Nigel Hanbury
Chief Executive
The notes are an integral part of these Financial Statements.
Consolidated statement of financial position
At 31 December 2015
18                  Helios Underwriting plc  Annual report and financial statements 2015 Note
31 December
2015
£’000
31 December
2014
£’000
Assets
Investments in subsidiaries 17 14,706 4,854
Financial assets at fair value through profit or loss 16 60 60
Other receivables 15 5,220 4,967
Cash and cash equivalents 2,090 1,785
Total assets 22,076 11,666
Liabilities
Other payables 18 110 164
Total liabilities 110 164
Equity
Equity attributable to owners of the Parent:
Share capital 19 1,050 853
Share premium 19 9,901 6,996
Retained earnings 11,015 3,653
Total equity 21,966 11,502
Total liabilities and equity 22,076 11,666
The Financial Statements were approved and authorised for issue by the Board of Directors on 27 May 2016, and were signed on its behalf by:
Nigel Hanbury
Chief Executive
The notes are an integral part of these Financial Statements.
Company number: 05892671
Parent Company statement of financial position
At 31 December 2015
Annual report and financial statements 2015  Helios Underwriting plc                  19
Financial statements Attributable to owners of the Parent restated
Consolidated Note
Share
 capital
£’000
 Share
 premium
£’000
Other 
reserves
£’000
Retained
earnings
£’000
Total
£’000
At 1 January 2014 as originally reported 21 853 6,996 — 1,977 9,826
Effect of change in accounting policy 21 — — — 1,370 1,370
At 1 January 2014 as restated 21 853 6,996 — 3,347 11,196
Profit for the year as restated 21 — — — 2,056 2,056
Dividends paid 12 — — — (384) (384)
At 31 December 2014 as restated 853 6,996 — 5,019 12,868
At 1 January 2015 as originally reported 21 853 6,996 — 2,636 10,485
Effect of change in accounting policy 21 — — — 2,383 2,383
At 1 January 2015 as restated 21 853 6,996 — 5,019 12,868
Profit for the year — — — 789 789
Other comprehensive income, net of tax — — 121 — 121
Dividends paid 12 — — — (457) (457)
Share issue 19 197 2,905 — — 3,102
At 31 December 2015 1,050 9,901 121 5,351 16,423
The consolidated profit for the year 2014 and retained earnings as at 1 January 2014 and 31 December 2014 have been restated to reflect 
the effects of the change in the Group’s accounting policy in accounting for intangible assets, syndicate capacity (refer to Note 21).
Other comprehensive income comprises of foreign currency translation differences of £149,000, net of tax relating to these items of £28,000.
Parent Company statement of changes in equity
Year ended 31 December 2015
Company Note
Share
 capital
£’000
Share
premium
£’000
Retained
earnings
£’000
Total
£’000
At 1 January 2014 853 6,996 3,313 11,162
Profit for the year — — 724 724
Dividends paid 12 — — (384) (384)
At 31 December 2014 853 6,996 3,653 11,502
At 1 January 2015 853 6,996 3,653 11,502
Profit for the year — — 7,819 7,819
Dividends paid 12 — — (457) (457)
Share issue 19 197 2,905 — 3,102
At 31 December 2015 1,050 9,901 11,015 21,966
The notes are an integral part of these Financial Statements.
Consolidated statement of changes in equity
Year ended 31 December 2015
20                  Helios Underwriting plc  Annual report and financial statements 2015 Note
Year ended 
31 December
2015
£’000
Restated
Year ended
31 December
2014
£’000
Cash flows from operating activities
Profit before tax 654 2,161
Adjustments for:
Other comprehensive income, gross of tax 149 —
– interest received (60) (2)
– investment income 8 (926) (435)
– goodwill on bargain purchase 20 (244) (785)
– impairment of goodwill 20 136 —
– profit on sale of intangible assets (120) (157)
– impairment of intangible assets 13 63 (25)
Changes in working capital:
– change in fair value of financial assets held at fair value through profit or loss 8 360 156
– decrease in financial assets at fair value through profit or loss 1,020 6,829
– decrease/(increase) in other receivables 709 (2,413)
– increase in other payables 11 1,164
– net decrease in technical provisions (50) (109)
Cash generated from operations 1,702 6,384
Income tax paid 161 (33)
Net cash inflow from operating activities 1,863 6,351
Cash flows from investing activities
Interest received 60 2
Investment income 926 435
Purchase of intangible assets 13 (2) (439)
Proceeds from disposal of intangible assets 24 504
Acquisition of subsidiaries, net of cash acquired (2,521) (3,930)
Net cash inflow from investing activities (1,513) (3,428)
Cash flows from financing activities
Dividends paid to owners of the Parent 12 (321) (384)
Net cash outflow from financing activities (321) (384)
Net increase in cash and cash equivalents 29 2,539
Cash and cash equivalents at beginning of year 3,605 1,066
Cash and cash equivalents at end of year 3,634 3,605
Cash held within the syndicates’ accounts is £1,411,000 (2014: £1,059,000) of the total cash and cash equivalents held at the year end of 
£3,634,000 (2014: £3,605,000). 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.
Consolidated statement of cash flows
Year ended 31 December 2015
Annual report and financial statements 2015  Helios Underwriting plc                  21
Financial statements Note
Year ended 
31 December
2015
£’000
Year ended
31 December
2014
£’000
Cash flows from operating activities
Profit before tax 7,818 724
Adjustments for:
– investment income (7) (7)
– dividends received (3,841) (4,140)
– impairment of investment in subsidiaries (4,987) 2,546
Changes in working capital:
– change in fair value of financial assets held at fair value through profit or loss — 9
– (increase)/decrease in financial assets at fair value through profit or loss — —
– decrease/(increase) in other receivables 1,277 (992)
– decrease in other payables (54) (19)
Net cash inflow/(outflow) from operating activities 206 (1,879)
Cash flows from investing activities
Investment income 7 7
Dividends received 3,841 4,140
Acquisition of subsidiaries 17,20 (3,263) (1,437)
Amounts owed by subsidiaries 22 (165) 1,316
Net cash inflow from investing activities 420 4,026
Cash flows from financing activities
Dividends paid to owners of the Parent 12 (321) (384)
Net cash outflow from financing activities (321) (384)
Net increase in cash and cash equivalents 305 1,763
Cash and cash equivalents at beginning of year 1,785 22
Cash and cash equivalents at end of year 2,090 1,785
Cash and cash equivalents comprise cash at bank and in hand.
The notes are an integral part of these Financial Statements.
Parent Company statement of cash flows
Year ended 31 December 2015
22                  Helios Underwriting plc  Annual report and financial statements 2015 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
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. For details of this change, refer to this accounting policy as disclosed further below and Note 21.
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 £16,423,000 and £21,966,000 respectively.
The Company’ s subsidiaries participate as underwriting members at Lloyd’ s on the 2013, 2014 and 2015 years of account and they have continued 
this participation since the year end on the 2016 year of account. This underwriting is supported by funds at Lloyd’s totalling £5,341,000 
(2014: £1,535,000), letters of credit provided through the Group’s quota share reinsurance agreements totalling £9,378,000 (2014: £8,728,000) 
and solvency credits issued by Lloyd’s totalling £3,645,000 (2014: £3,181,000).
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 2015. These are set out below and did not have a material 
impact on the accounting policies of the Group and the Company:
 » Annual improvements to IFRSs 2011–2013 Cycle (effective 1 January 2015).
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
 » Amendments to IAS 27: Equity Method in Separate Financial Statements, issued on 12 August 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).
Notes to the financial statements
Year ended 31 December 2015
Annual report and financial statements 2015  Helios Underwriting plc                  23
Financial statements 2. Accounting policies continued
International Financial Reporting Standards continued
New standards, amendments and interpretations not yet adopted continued
(i) Adopted by the EU continued
 » 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).
(ii) Not adopted by the EU
 Standards:
 » IFRS 9 “Financial Instruments”, issued on 24 July 2014 (effective 1 January 2018).
 » IFRS 14 “Regulatory Deferral Accounts”, issued on 30 January 2014 (effective 1 January 2016).
 » 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).
 » IFRS 16 “Leases”, issued on 13 January 2016 (effective 1 January 2019).
 Amendments:
 » 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 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 T ax 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).
Consolidation, goodwill 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, Helios UTG Partner Limited, Nomina No 035 LLP , Nomina No 342 LLP , Nomina No 380 LLP 
and Nomina No 372 LLP (Note 17).
The Financial Statements of Hampden Corporate Member Limited, Nameco (No. 365) Limited, Nameco (No. 605) Limited, Nameco (No. 321) Limited, 
Nameco (No. 917) Limited, Nameco (No. 229) Limited, Nameco (No. 518) Limited, Nameco (No. 804) Limited, Halperin 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, Helios UTG Partner Limited, Nomina No 035 LLP , Nomina No 342 LLP , Nomina No 380 LLP 
and Nomina No 372 LLP are prepared for the year ended 31 December 2015 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 £7,819,000 (2014: £724,000).
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.
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.
The Group uses the acquisition method of accounting to account for the acquisition of subsidiaries. The cost of an acquisition is measured as 
the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange. 
The excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net assets acquired is capitalised and recorded 
as goodwill. Following initial recognition, goodwill is measured at cost less accumulated impairment losses. Goodwill is tested for impairment 
annually or if events or changes in circumstances indicate that the carrying value may be impaired and recognised directly in the Consolidated 
Income Statement. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly 
in the Consolidated Income Statement. Intra-group transactions, balances and unrealised gains on intra-group transactions are eliminated. 
Notes to the financial statements continued
Year ended 31 December 2015
24                  Helios Underwriting plc  Annual report and financial statements 2015 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 monthly average rates of exchange prevailing at the time of the transaction as a proxy for the transactional 
rates. The translation difference arising on non-monetary asset items is recognised in the Consolidated Income Statement.
Monetary items are translated at period-end rates; any exchange differences arising from the change in rates of exchange are recognised in 
the Consolidated Income Statement 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.
Annual report and financial statements 2015  Helios Underwriting plc                  25
Financial statements 2. Accounting policies continued
Underwriting continued
Claims incurred and reinsurers’ share continued
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.
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, 50% of the 2013 underwriting year of account and 70% of the 2014 and 
2015 underwriting year of account 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.
Notes to the financial statements continued
Year ended 31 December 2015
26                  Helios Underwriting plc  Annual report and financial statements 2015 2. Accounting policies continued
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.
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 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 has been applied retrospectively as if the new policy had always been in place. The effects of this change are 
disclosed in Note 21.
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.
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.
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.
Other operating expenses
All expenses are accounted for on an accruals basis.
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. Loans 
and receivables are initially recognised at fair value plus transaction costs and are subsequently carried at amortised cost less any impairment 
losses. 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, including insurance and reinsurance receivables” and “cash and 
cash equivalents”.
(b) Recognition
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 at fair value through profit or loss are initially recognised at fair value and transaction costs 
incurred expensed in the income statement. Financial assets are derecognised when the right to receive cash flows from the investments 
has expired or are transferred and the Group has transferred substantially all its risks and rewards of ownership.
Loans and receivables are recognised as described in (ii) above.
Annual report and financial statements 2015  Helios Underwriting plc                  27
Financial statements 2. Accounting policies continued
Financial assets continued
(b) Recognition continued
(i) 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. 
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.
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.
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. 
Notes to the financial statements continued
Year ended 31 December 2015
28                  Helios Underwriting plc  Annual report and financial statements 2015 3. Key accounting judgements and estimation uncertainties continued
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. 
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.
Syndicate risks
The syndicates’ activities expose them to a variety of financial and non-financial risks. The managing agent is responsible for managing the 
syndicate’s exposure to these risks and, where possible, introducing controls and procedures that mitigate the effects of the exposure to risk. 
For the purposes of setting capital requirements for the 2015 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, leading to 
financial loss. The syndicate is also exposed to regulatory and operational risks including its ability to continue to trade. However, supervision 
by Lloyd’s and the Prudential Regulation Authority provides additional controls over the syndicate’s management of risks.
The Group manages the risks faced by the syndicates on which its subsidiaries participate by monitoring the performance of the syndicates it 
supports. This commences in advance of committing to support a syndicate for the following year, with a review of the business plan prepared 
for each syndicate by its managing agent. In addition, quarterly reports and annual accounts, together with any other information made available 
by the managing agent, are monitored and if necessary enquired into. If the Group considers that the risks being run by the syndicate are excessive, 
it will seek confirmation from the managing agent that adequate management of the risk is in place and, if considered appropriate, will withdraw 
support from the next year of account. The Group also manages its exposure to insurance risk by purchasing appropriate member level reinsurance.
Reinsurance risk
Reinsurance risk to the Group arises where reinsurance contracts put in place to reduce gross insurance risk do not perform as anticipated, 
result in coverage disputes or prove inadequate in terms of the vertical or horizontal limits purchased. Failure of a reinsurer to pay a valid claim 
is considered a credit risk, which is detailed separately below.
The Group currently has reinsurance programmes on the 2013, 2014 and 2015 years of account.
The 2013 year of account has a strategic collateralised quota share arrangement in respect of 50% of its business with Bermudan reinsurer 
XL Re Limited (part of global NYSE-quoted insurer XL Group plc) through Hampden Insurance Guernsey PCC Limited – Cell 6, a special 
purpose vehicle.
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.
Annual report and financial statements 2015  Helios Underwriting plc                  29
Financial statements 4. Risk management continued
Investment, credit, liquidity and currency risks
The other significant risks faced by the Group are with regard to the investment of funds within its own custody. The elements of these risks 
are investment risk, liquidity risk, credit risk, currency risk and interest rate risk. To mitigate this, the surplus Group funds are deposited with 
highly rated banks and fund managers. The main liquidity risk would arise if a syndicate had inadequate liquid resources for a large claim and 
sought funds from the Group to meet the claim. In order to minimise investment 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 2015 is £8.1m (2014: £6.2m), 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 £9.4m (2014: £8.7m) letter of credit (“LOC”) acceptable to Lloyd’s, on behalf 
of XL Re Limited, Everest Reinsurance Bermuda Limited and Polygon Insurance Co Limited (the reinsurers). 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.
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.
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 page 20.
At 31 December 2015 the corporate member subsidiaries had an agreed FAL requirement of £16,844,000 (2014: £13,136,000) to support their 
underwriting on the 2016 year of account (2015 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 2015 the agreed FAL 
requirements for the Group were 51% (2014: 64%) of the capacity for the following year of account.
Notes to the financial statements continued
Year ended 31 December 2015
30                  Helios Underwriting plc  Annual report and financial statements 2015 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 2015
Syndicate
participation
£’000
Investment
management
£’000
Other 
corporate 
activities
£’000
Total
£’000
Net earned premium 16,914 — (1,054) 15,860
Net investment income 250 5 — 255
Other income — — 392 392
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 2,506 5 (1,857) 654
Restated year ended 31 December 2014
Syndicate
participation
£’000
Investment
management
£’000
Other 
corporate 
activities
£’000
Total
£’000
Net earned premium 13,837 — (464) 13,373
Net investment income 473 43 — 516
Other income — — 150 150
Net insurance claims and loss adjustment expenses (5,915) — — (5,915)
Expenses incurred in insurance activities (5,471) — (329) (5,800)
Other operating expenses — (973) (973)
Goodwill on bargain purchase — — 785 785
Impairment of goodwill — — — —
Impairment of syndicate capacity (see Note 13) — — 25 25
Profit before tax 2,924 43 (806) 2,161
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 2015 other corporate activities totalling £1,054,000 (2014: £465,000 – 2013 and 2014 years of account) presents 
the 2013, 2014 and 2015 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.
All of the Group’s Limited Liability Vehicles transferred their capacity to Nameco (No 917) Limited for the 2016 underwriting year of account. 
Therefore, Nameco (No 917) Limited is the only Limited Liability Vehicle to enter into a reinsurance contract with Hampden Insurance Guernsey 
PCC Limited – Cell 6 for the 2016 underwriting year of account. 
Annual report and financial statements 2015  Helios Underwriting plc                  31
Financial statements 6. Operating profit before goodwill and impairment
Underwriting year of account*
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
Net premium written (148) 2,009 17,607 19,468 (1,735) (1,397) (407) 15,929
Net earned premium 712 9,092 9,475 19,279 (1,615) (1,397) (407) 15,860
Other income 170 62 22 254 (80) 382 91 647
Net insurance claims 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 1,590 1,804 67 3,461 (190) (1,012) (1,650) 609
Quota share adjustment (392) (950) (55) (1,397) — 1,397 — —
Operating profit before goodwill 
and impairment after quota 
share adjustment 1,198 854 12 2,064 (190) 385 (1,650) 609
Underwriting year of account*
Restated year ended 31 December 2014
2012 
and prior
£’000
2013
£’000
2014 
£’000
Sub-total
£’000
Pre-
acquisition
£’000
Corporate
 reinsurance
£’000
Other
 corporate
£’000
Total
£’000
Gross premium written 107 1,574 16,655 18,336 (1,274) — — 17,062
Net premium written 89 1,373 13,858 15,320 (1,049) (627) — 13,644
Net earned premium 744 6,603 7,706 15,053 (1,053) (627) — 13,373
Other income 257 110 47 414 (93) — 345 666
Net insurance claims and loss 
adjustment expenses 980 (3,088) (4,282) (6,390) 476 (1) — (5,915)
Operating expenses (532) (2,205) (3,106) (5,843) 445 — (1,375) (6,773)
Operating profit before goodwill 
and impairment 1,449 1,420 365 3,234 (225) (628) (1,030) 1,351
Quota share adjustment — (468) (253) (721) — 721 — —
Operating profit before goodwill 
and impairment after quota 
share adjustment 1,449 952 112 2,513 (225) 93 (1,030) 1,351
*  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.
Pre-acquisition relates to the element of results from the new acquisitions before they were acquired by the Group. 
Notes to the financial statements continued
Year ended 31 December 2015
32                  Helios Underwriting plc  Annual report and financial statements 2015 7. Insurance liabilities and reinsurance balances
Movement in claims outstanding 
Gross
£’000
Reinsurance
£’000
Net
£’000
At 1 January 2014 21,596 4,154 17,442
Increase in reserves arising from acquisition of subsidiary undertakings 5,106 947 4,159
Movement of reserves (464) (319) (145)
Other movements (59) (100) 41
At 31 December 2014 26,179 4,682 21,497
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
Included within other movements are the 2012 and prior years’ claims reserves reinsured into the 2013 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 2014 5,968 800 5,168
Increase in reserves arising from acquisition of subsidiary undertakings 1,691 216 1,475
Movement of reserves 243 (28) 271
Other movements 103 26 77
At 31 December 2014 8,005 1,014 6,991
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
Assumptions, changes in assumptions and sensitivity
As described in Note 3, the majority of the risks to the Group’s future cash flows arise from its subsidiaries’ participation in the results of 
Lloyd’s syndicates and are mostly managed by the managing agents of the syndicates. The Group’s role in managing these risks, in 
conjunction with the 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 2015.
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 
£3,299,000 (2014: £2,618,000);
 » a 10% increase/decrease in the managing agents’ calculation of net claims reserves will decrease/increase the Group’s pre-tax profits by 
£2,733,000 (2014: £2,150,000); and 
 » a 10% increase/decrease in the run-off year net claims reserves will decrease/increase the Group’s pre-tax profits by £1,000 (2014: £nil).
The 10% movement has been selected to give an indication of the possible variations in the assumptions used.
Annual report and financial statements 2015  Helios Underwriting plc                  33
Financial statements 7. Insurance liabilities and reinsurance balances continued
Analysis of gross and net claims development
The tables below provide information about historical gross and net claims development: 
2015
Gross claims
Underwriting pure year
After 
12 months
£’000
After 
24 months
£’000
After 
36 months
£’000
2011 8,066 12,739 12,710
2012 8,631 12,614 12,418
2013 6,850 11,562 11,436
2014 6,914 11,560 —
2015 6,417 — —
Net claims
Underwriting pure year
After 
12 months
£’000
After 
24 months
£’000
After 
36 months
£’000
2011 6,726 10,834 10,751
2012 7,156 10,733 10,591
2013 5,901 10,067 9,866
2014 5,916 10,100 —
2015 5,546 — —
* Including the new acquisitions during 2015.
2014
Gross claims as a percentage of gross earned premium 
Year of account 2012* 2013* 2014
12 months 67.7% 53.0% 52.0%
24 months 53.5% 49.7% —
36 months 45.1% — —
Net claims as a percentage of net earned premium
Year of account 2012* 2013* 2014
12 months 66.4% 58.2% 55.6%
24 months 58.7% 53.0% —
36 months 48.9% — —
* Including the new acquisitions during 2014.
The 2014 comparative figures are presented in the format as disclosed in the 2014 financial statements due to the information being 
unavailable at the subsidiary level. The 2015 data is now available in the above detail, as a result of the new UK GAAP and specifically the 
requirements of FRS 102 and 103.
8. Net investment income
Year ended
31 December 
2015
£’000
Year ended
31 December
2014
£’000
Investment income 926 435
Realised gains on financial assets at fair value through profit or loss (327) 279
Unrealised losses on financial assets at fair value through profit or loss (360) (156)
Investment management expenses (44) (44)
Bank interest 60 2
Net investment income 255 516
Notes to the financial statements continued
Year ended 31 December 2015
34                  Helios Underwriting plc  Annual report and financial statements 2015 9. Operating expenses (excluding goodwill and amortisation)
Year ended
31 December
2015
£’000
Year ended
31 December
2014
£’000
Expenses incurred in insurance activities 7,571 5,800
Exchange differences 35 22
Directors’ remuneration 195 238
Acquisition costs in connection with the new subsidiaries acquired in the year 91 51
Professional fees 405 505
Administration and other expenses 17 75
Auditors’ remuneration:
– audit of the Parent Company and Group Financial Statements 49 30
– audit of subsidiary company Financial Statements — 32
– audit related assurance services 20 20
Operating expenses 8,383 6,773
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
2015
£
Year ended
31 December
2014
£
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 — —
Nigel Hanbury 130,050 173,250
Total 195,050 238,250
The Chief Executive, Nigel Hanbury, has a bonus incentive scheme in addition to his basic remuneration. The above figures include an accrual 
for the year of £63,000 (2014: £98,000) in respect of this scheme. No other Directors derive other benefits, pension contributions or incentives 
from the Group. At 31 December 2015 no share options were held by the Directors (2014: nil).
10. Income tax charge
(a) Analysis of tax charge/(credit) in the year
Year ended
31 December
2015
£’000
Restated
Year ended
31 December
2014
£’000
Current tax:
– current year (11) 5
– prior year (9) 12
– foreign tax paid 25 25
Total current tax 5 42
Deferred tax:
– current year (5) 157
– prior year (135) (94)
Total deferred tax (140) 63
Income tax charge (135) 105
Annual report and financial statements 2015  Helios Underwriting plc                  35
Financial statements 10. Income tax charge continued
(b) Factors affecting the tax charge/(credit) for the year
Tax for the year is lower than (2014: lower than) the standard rate of corporation tax in the UK of 20.25% (2014: 21.49%).
The differences are explained below:
Year ended
31 December
2015
£’000
Restated
Year ended
31 December
2014
£’000
Profit before tax 654 2,160
Tax calculated as profit before tax multiplied by the standard rate of corporation tax in the UK of 20.25% (2014: 21.49%) 133 244
Tax effects of:
Prior year adjustments (9) (82)
Rate change adjustments (244) —
Permanent disallowances (18) 73
Goodwill on bargain purchase not subject to tax (22) (169)
Foregin taxes 25 25
Other — 14
Tax charge for the year (135) 105
The results of the Group’s participation on the 2013, 2014 and 2015 years of account and the calendar year movement on 2012 and prior 
run-offs will not be assessed for tax until the years ended 2016, 2017 and 2018 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 £2,184,000 (2014: £1,270,000) taxable losses carried forward, to which £1,009,000 has been recognised as a deferred tax 
asset and has been offset against deferred tax liabilities as disclosed in Note 14.
The Company has £1,175,000 (2014: £610,000) 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 14.
11. Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to ordinary shareholders 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”.
The earnings per share and weighted average number of shares used in the calculation are set out below:
Year ended
31 December
2015
Restated
Year ended
31 December
2014
Profit for the year after tax attributable to ordinary shareholders £789,000 £2,056,000
Weighted average number of shares in issue 9,411,794 8,526,948
Basic and diluted earnings per share 8.38p 24.11p
The basic and diluted earnings per share as originally reported for the year ended 31 December 2014 was 12.23p, based on a profit for 
the year after tax attributable to ordinary shareholders of £1,043,000. The weighted average number of shares in issue for the year ended 
31 December 2014 remained unchanged.
Notes to the financial statements continued
Year ended 31 December 2015
36                  Helios Underwriting plc  Annual report and financial statements 2015 12. Dividends paid or proposed
A dividend of 5.1p per share was paid during the year totalling £457,000 (2014: £384,000). The dividend was settled partly in cash and partly 
with the issue of ordinary shares (Note 19). Future dividends are detailed in Note 26.
13. Intangible assets
Goodwill
£’000
Restated
Syndicate
capacity
£’000
Restated
Total
£’000
Cost
At 1 January 2014 — 4,750 4,750
Additions — 439 439
Disposals — (724) (724)
Impairment — — —
Acquired with subsidiary undertakings — 2,127 2,127
At 31 December 2014 — 6,592 6,592
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
Impairment (Note 21)
At 1 January 2014 — 249 249
Impairment for the year — (25) (25)
Disposals — — —
At 31 December 2014 — 224 224
At 1 January 2015 — 224 224
Impairment for the year — 63 63
Disposals — — —
At 31 December 2015 — 287 287
Net book value
As at 31 December 2013 — 4,501 4,501
As at 31 December 2014 — 6,368 6,368
As at 31 December 2015 — 8,511 8,511
Note 20 sets out the details of the entities acquired by the Group during the year, the fair value adjustments and the goodwill arising.
Annual report and financial statements 2015  Helios Underwriting plc                  37
Financial statements 14. Deferred tax
Group
Deferred tax is calculated in full on temporary differences using a tax rate of 19% (2014: 20%). 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 2014 629 1,228 1,857
On acquisition of subsidiary undertakings 250 182 432
Prior period adjustment — (94) (94)
(Credit)/charge for the year (72) 229 157
At 31 December 2014 807 1,545 2,352
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
Company
The Company had no deferred tax assets or liabilities (2014: £nil), as disclosed in Note 10.
15. Other receivables
Group
31 December
2015
£’000
31 December
2014
£’000
Arising out of direct insurance operations 4,930 3,755
Arising out of reinsurance operations 9,986 7,897
Other debtors 5,511 4,727
Total 20,427 16,379
The Group has no analysis of other receivables held directly by the syndicates on the Group’s behalf (see Note 22). None of the Group’s other 
receivables are past their due date and are all classified as fully performing.
Included within the above receivables are amounts totalling £1,179,000 (2014: £581,000) which are not expected to be wholly recovered 
within one year.
Company
31 December
2015
£’000
31 December
2014
£’000
Receivables from subsidiaries (Note 22) 5,205 3,957
Other debtors — 996
Prepayments 15 14
Total 5,220 4,967
All the Company receivables are due within one year.
16. Financial assets at fair value through profit or loss
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: other techniques which have prices (other than quoted prices included within Level 1 where all inputs which have a significant effect 
on the recorded fair value are observable, either directly or indirectly (that is, derived from prices).
Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data. 
Notes to the financial statements continued
Year ended 31 December 2015
38                  Helios Underwriting plc  Annual report and financial statements 2015 16. Financial assets at fair value through profit or loss continued
As at 31 December 2015 and 2014, the Group held the following financial assets carried at fair value on the statement of financial position:
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
Group
Total 
2014
£’000
Level 1
£’000
Level 2
£’000
Level 3
£’000
Shares and other variable yield securities and units in unit trusts 3,150 986 1,415 749
Debt securities and other fixed income securities 16,419 5,743 6,986 3,690
Participation in investment pools 565 140 92 333
Loans and deposits with credit institutions 1,843 1,355 237 252
Derivatives 15 2 — 12
Other investments 60 60 — —
Funds at Lloyd’s 925 925 — —
Total – fair value 22,977 9,211 8,730 5,036
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 £1,447,000 (2014: £610,000) 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
31 December 
2015
£’000
31 December
2014
£’000
Holdings in collective investment schemes 60 60
Total – market value 60 60
17. Investments in subsidiaries
31 December 
2015
£’000
31 December
2014
£’000
Total 14,706 4,854
Annual report and financial statements 2015  Helios Underwriting plc                  39
Financial statements 17. Investments in subsidiaries continued
At 31 December 2015 the Company owned 100% of the following companies and limited liability partnerships, either directly or indirectly. All 
subsidiaries are incorporated in England and Wales. 
Company or partnership
Direct/indirect
interest
2015
ownership
2014
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% — Lloyd’s of London corporate vehicle
Nameco (No. 402) Limited Direct 100% — Lloyd’s of London corporate vehicle
Updown Underwriting Limited Direct 100% — Lloyd’s of London corporate vehicle
Nameco (No. 507) Limited Direct 100% — Lloyd’s of London corporate vehicle
Nameco (No. 76) Limited Direct 100% — Lloyd’s of London corporate vehicle
Kempton Underwriting 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
Helios UTG Partner Limited, a subsidiary of the Company, owns 100% of Nomina No 035 LLP , Nomina No 342 LLP , Nomina No 380 LLP and 
Nomina No 372 LLP . The cost of acquisition of these LLPs is accounted for in Helios UTG Partner Limited, their immediate parent company 
(Note 20(b)). 
For details of all new acquisition made during the year 2015 refer to Note 20(a).
18. Other payables
Group
31 December 
2015
£’000
31 December
2014
£’000
Arising out of direct insurance operations 696 512
Arising out of reinsurance operations 5,672 3,835
Corporation tax payable 14 36
Other creditors 2,978 1,830
9,360 6,213
The Group has no analysis of other payables held directly by the syndicates on the Group’s behalf (see Note 25).
Company
31 December 
2015
£’000
31 December
2014
£’000
Other creditors — —
Accruals and deferred income 110 164
110 164
All payables above are due within one year. 
Notes to the financial statements continued
Year ended 31 December 2015
40                  Helios Underwriting plc  Annual report and financial statements 2015 19. 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 2014 8,526,948 853 6,996 7,849
Ordinary shares of 10p each and share premium at 31 December 2014 8,526,948 853 6,996 7,849
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 20(a)) 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 20(a)) 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
20. Acquisition of Limited Liability Vehicles
Acquisitions of Limited Liability Vehicles is accounted for using the acquisition method of accounting. Comparing the consideration paid to the 
fair value of net assets acquired gives rise to goodwill and is recognised in the Consolidated Income Statement as goodwill on bargain purchase 
or impairment of goodwill as follows:
Company or partnership
2015
Goodwill 
on bargain 
purchase
£’000
2015
Impairment
of goodwill
£’000 Total
2014
Goodwill 
on bargain 
purchase
£’000
2014
Impairment 
of goodwill
£’000 Total
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) — — —
Nomina No 380 LLP — — — 68 — 68
Bernul Limited — — — 6 — 6
Nomina No 372 LLP — — — 33 — 33
Dumasco Limited — — — 678 — 678
244 (136) 108 785 — 785
Further details of individual acquisitions are shown below:
Annual report and financial statements 2015  Helios Underwriting plc                  41
Financial statements 20. Acquisition of Limited Liability Vehicles continued
(a) 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
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
Prepayments and accrued income 114 — 114
Financial assets at fair value through profit or loss 1,308 — 1,308
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.
Notes to the financial statements continued
Year ended 31 December 2015
42                  Helios Underwriting plc  Annual report and financial statements 2015 20. Acquisition of Limited Liability Vehicles continued
(a) 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
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
Prepayments and accrued income 98 — 98
Financial assets at fair value through profit or loss 1,114 — 1,114
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.
Annual report and financial statements 2015  Helios Underwriting plc                  43
Financial statements 20. Acquisition of Limited Liability Vehicles continued
(a) 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
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
Prepayments and accrued income 84 — 84
Financial assets at fair value through profit or loss 1,777 — 1,777
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 19) 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.
Notes to the financial statements continued
Year ended 31 December 2015
44                  Helios Underwriting plc  Annual report and financial statements 2015 20. Acquisition of Limited Liability Vehicles continued
(a) 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
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
Prepayments and accrued income 241 — 241
Financial assets at fair value through profit or loss 1,662 — 1,662
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.
Annual report and financial statements 2015  Helios Underwriting plc                  45
Financial statements 20. Acquisition of Limited Liability Vehicles continued
(a) 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
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
Prepayments and accrued income 92 — 92
Financial assets at fair value through profit or loss 1,609 — 1,609
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 19) 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.
Notes to the financial statements continued
Year ended 31 December 2015
46                  Helios Underwriting plc  Annual report and financial statements 2015 20. Acquisition of Limited Liability Vehicles continued
(a) 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
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
Prepayments and accrued income 101 — 101
Financial assets at fair value through profit or loss 1,435 — 1,435
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 19) 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.
Annual report and financial statements 2015  Helios Underwriting plc                  47
Financial statements 20. Acquisition of Limited Liability Vehicles continued
(b) 2014 acquisitions
Nomina No 380 LLP
On 16 January 2014 Helios UTG Partner Limited, a 100% subsidiary of the Company, became a 100% corporate partner in Nomina No 380 LLP 
for a total consideration of £557,000. Nomina No 380 LLP is incorporated in England and Wales and is a member of Lloyd’s.
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 £625,000. 
Negative goodwill of £68,000 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 441 83 524
Reinsurance assets:
– reinsurers’ share of claims outstanding 292 — 292
– reinsurers’ share of unearned premium 65 — 65
Other receivables, including insurance and reinsurance receivables 740 — 740
Prepayments and accrued income 106 — 106
Financial assets at fair value through profit or loss 1,252 — 1,252
Cash and cash equivalents 82 — 82
Insurance liabilities:
– claims outstanding (1,530) — (1,530)
– unearned premium (502) — (502)
Deferred income tax liabilities — (56) (56)
Other payables, including insurance and reinsurance payables (298) — (298)
Accruals and deferred income (50) — (50)
Net assets acquired 598 27 625
Satisfied by:
Cash and cash equivalents 557 — 557
Total consideration 557 — 557
Negative goodwill (41) (27) (68)
2012 year of
account
2013 year of
account
2014 year of
account
Capacity acquired 1,133,981 1,209,361 1,325,968
The net earned premium and profit of Nomina No 380 LLP for the period since the acquisition date to 31 December 2014 were £820,000 
and £106,000 respectively.
Negative goodwill has arisen on the acquisition of Nomina No 380 LLP as a result of the purchase consideration being at a discount to the fair 
value of net assets acquired.
Notes to the financial statements continued
Year ended 31 December 2015
48                  Helios Underwriting plc  Annual report and financial statements 2015 20. Acquisition of Limited Liability Vehicles continued
(b) 2014 acquisitions continued
Bernul Limited
On 27 March 2014 Helios Underwriting plc acquired 100% of the issued share capital of Bernul Limited for a total consideration of £823,000. 
Bernul Limited is incorporated in England and Wales and is a corporate member of Lloyd’s.
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 £829,000. 
Negative goodwill of £6,000 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 2 322 324
Reinsurance assets:
– reinsurers’ share of claims outstanding 157 — 157
– reinsurers’ share of unearned premium 36 — 36
Other receivables, including insurance and reinsurance receivables 776 — 776
Prepayments and accrued income 81 — 81
Financial assets at fair value through profit or loss 1,071 — 1,071
Cash and cash equivalents 80 — 80
Insurance liabilities:
– claims outstanding (1,014) — (1,014)
– unearned premium (311) — (311)
Deferred income tax liabilities (53) (64) (117)
Other payables, including insurance and reinsurance payables (218) — (218)
Accruals and deferred income (36) — (36)
Net assets acquired 571 258 829
Satisfied by:
Cash and cash equivalents 823 — 823
Total consideration 823 — 823
Negative goodwill 252 (258) (6)
2012 year 
of account
2013 year 
of account
2014 year 
of account
Capacity acquired 751,734 825,845 807,280
The net earned premium and profit of Bernul Limited for the period since the acquisition date to 31 December 2014 were £436,000 and 
£59,000 respectively.
Negative goodwill has arisen on the acquisition of Bernul Limited as a result of the purchase consideration being at a discount to the fair value 
of net assets acquired.
Annual report and financial statements 2015  Helios Underwriting plc                  49
Financial statements 20. Acquisition of Limited Liability Vehicles continued
(b) 2014 acquisitions continued
Nomina No 372 LLP
On 2 May 2014 Helios UTG Partner Limited, a 100% subsidiary of the Company, became a 100% corporate partner in Nomina No 372 LLP 
for a total consideration of £480,000. Nomina No 372 LLP is incorporated in England and Wales and is a 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 £513,000. 
Negative goodwill of £33,000 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 401 41 442
Reinsurance assets:
– reinsurers’ share of claims outstanding 233 — 233
– reinsurers’ share of unearned premium 46 — 46
Other receivables, including insurance and reinsurance receivables 519 — 519
Prepayments and accrued income 94 — 94
Financial assets at fair value through profit or loss 1,001 — 1,001
Cash and cash equivalents 84 — 84
Insurance liabilities:
– claims outstanding (1,213) — (1,213)
– unearned premium (393) — (393)
Deferred income tax liabilities — (42) (42)
Other payables, including insurance and reinsurance payables (212) — (212)
Accruals and deferred income (46) — (46)
Net assets acquired 514 (1) 513
Satisfied by:
Cash and cash equivalents 480 — 480
Total consideration 480 — 480
Negative goodwill (34) 1 (33)
2012 year of
account
2013 year of
account
2014 year of
account
Capacity acquired 885,403 925,974 1,018,821
The net earned premium and loss of Nomina No 372 LLP for the period since the acquisition date to 31 December 2014 were £444,000 
and £3,000 respectively.
Negative goodwill has arisen on the acquisition of Nomina No 372 LLP as a result of the purchase consideration being at a discount to the fair 
value of net assets acquired.
Notes to the financial statements continued
Year ended 31 December 2015
50                  Helios Underwriting plc  Annual report and financial statements 2015 20. Acquisition of Limited Liability Vehicles continued
(b) 2014 acquisitions continued
Dumasco Limited
On 16 September 2014 Helios Underwriting plc acquired 100% of the issued share capital of Dumasco Limited for a total consideration of 
£2,500,000. Dumasco 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 £3,178,000. 
Negative goodwill of £678,000 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 — 442 442
Reinsurance assets:
– reinsurers’ share of claims outstanding 265 — 265
– reinsurers’ share of unearned premium 69 — 69
Other receivables, including insurance and reinsurance receivables 2,068 — 2,068
Prepayments and accrued income 131 — 131
Financial assets at fair value through profit or loss 1,129 — 1,129
Cash and cash equivalents 1,481 — 1,481
Insurance liabilities:
– claims outstanding (1,348) — (1,348)
– unearned premium (485) — (485)
Deferred income tax liabilities (95) (88) (183)
Other payables, including insurance and reinsurance payables (384) — (384)
Accruals and deferred income (7) — (7)
Net assets acquired 2,824 354 3,178
Satisfied by:
Cash and cash equivalents 2,500 — 2,500
Total consideration 2,500 — 2,500
Negative goodwill (324) (354) (678)
2012 year of
account
2013 year of
account
2014 year of
account
Capacity acquired 1,469,048 1,519,048 1,476,478
The net earned premium and profit of Dumasco Limited for the period since the acquisition date to 31 December 2014 were £270,000 and 
£55,000 respectively.
Negative goodwill has arisen on the acquisition of Dumasco Limited as a result of the purchase consideration being at a discount to the fair 
value of net assets acquired.
Annual report and financial statements 2015  Helios Underwriting plc                  51
Financial statements 21. 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, was 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 20.
The effects of the change of this accounting policy on the Group’s Financial Statements are set out below:
Effect on the Consolidated Statement of Comprehensive Income
 
Year ended
31 December
2014
£’000
Profit for the year 2014 as originally reported 1,043
Effect on profit of change in accounting policy: impairment of syndicate capacity 1,013
Profit for the year 2014 as restated 2,056
Effect on the Consolidated Statement of Financial Position 
Year ended
31 December
2014
£’000
Retained earnings as at 1 January 2014 as originally reported 1,977
Effect on profit of change in accounting policy: impairment of syndicate capacity 1,370
Retained earnings as at 1 January 2014 as restated 3,347
Retained earnings as at 31 December 2014 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
Retained earnings as at 31 December 2014 as restated 5,019
Effect on the “earnings per share”
 
As originally
 reported
Effect of change
in accounting
policy As restated
Profit for the year 2014 (£’000) 1,043 1,013 2,056
Weighted average number of shares in issue 8,526,948 — 8,526,948
Basic and diluted earnings per share 12.23p 11.88p 24.11p
Notes to the financial statements continued
Year ended 31 December 2015
52                  Helios Underwriting plc  Annual report and financial statements 2015 22. 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
2015
£’000
31 December
2014
£’000
Balances due from/(to) Group companies at the year end:
Hampden Corporate Member Limited 327 562
Nameco (No. 365) Limited (5) 58
Nameco (No. 605) Limited (4) 199
Nameco (No. 321) Limited 9 5
Nameco (No. 917) Limited 1,451 217
Nameco (No. 229) Limited 58 62
Nameco (No. 518) Limited 14 (5)
Nameco (No. 804) Limited 274 405
Halperin Underwriting Limited 32 15
Bernul Limited 47 195
Dumasco Limited 177 472
Nameco (No. 311) Limited 37 —
Nameco (No. 402) Limited (104) —
Updown Underwriting Limited 713 —
Nameco (No. 507) Limited 660 —
Nameco (No. 76) Limited 393 —
Kempton Underwriting Limited 573 —
Nomina No 035 LLP — —
Nomina No 342 LLP — —
Nomina No 380 LLP — —
Nomina No 372 LLP — —
Helios UTG Partner Limited 553 1,772
Total (Note 15) 5,205 3,957
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 £112,000 (2014: £79,000).
Annual report and financial statements 2015  Helios Underwriting plc                  53
Financial statements 22. 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 2015 are set out below:
Company
31 December
2015
£’000
31 December
2014
£’000
Hampden Corporate Member Limited 43 38
Nameco (No. 365) Limited 11 7
Nameco (No. 605) Limited 36 18
Nameco (No. 321) Limited 13 7
Nameco (No. 917) Limited 7 6
Nameco (No. 229) Limited 10 7
Nameco (No. 518) Limited 18 10
Nameco (No. 804) Limited 32 24
Halperin Underwriting Limited 14 9
Bernul Limited 9 6
Dumasco Limited — 11
Nameco (No. 311) Limited 17 —
Nameco (No. 402) Limited 18 —
Updown Underwriting Limited 1 —
Nameco (No. 507) Limited 26 —
Nameco (No. 76) Limited 16 —
Kempton Underwriting Limited 11 —
Nomina No 035 LLP 14 9
Nomina No 342 LLP 14 9
Nomina No 380 LLP 13 14
Nomina No 372 LLP 16 12
Helios UTG Partner Limited — —
Total 339 187
Notes to the financial statements continued
Year ended 31 December 2015
54                  Helios Underwriting plc  Annual report and financial statements 2015 22. Related party transactions continued
The Group entered into quota share reinsurance contracts for the 2013, 2014, 2015 and 2016 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 2013 2014 2015 2016
Hampden Corporate Member Limited 50% 70% 70% —
Nameco (No. 365) Limited 50% 70% 70% —
Nameco (No. 605) Limited 50% 70% 70% —
Nameco (No. 321) Limited 50% 70% 70% —
Nameco (No. 917) Limited 50% 70% 70% 70%
Nameco (No. 229) Limited 50% 70% 70% —
Nameco (No. 518) Limited 50% 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 — — — —
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% —
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 £1,541,000 
during the year.
During the year, the following Directors received dividends:
Director
Shareholding at
date dividend
declared
5 June 2015
Dividend 
received
3 July 2015
£
Shareholding at 
date dividend
declared 
6 June 2014
Dividend 
received 
4 July 2014
£
Sir Michael Oliver 19,000 969 19,000 855
Nigel Hanbury (either personally or has an interest in) 1,298,445 66,221 1,261,257 56,757
Andrew Christie 5,500 280 5,500 248
Jeremy Evans 51,004 2,601 51,002 2,295
Arthur Manners — — — —
Michael Cunningham 20,500 1,045 20,500 923
Arthur Manners was appointed as a Director on 8 April 2016. During the year he provided consultancy services to the Company totalling 
£23,000. At the balance sheet date, no amount was outstanding.
23. Ultimate controlling party
The Directors consider that the Group has no ultimate controlling party.
Annual report and financial statements 2015  Helios Underwriting plc                  55
Financial statements 24. 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
2013*
£
2014*
£
2015*
£
2016
£
33 Hiscox Syndicates Limited 1,182,895 1,976,012 2,181,434 2,277,214
218 ERS Syndicate Management Limited 824,028 1,210,087 1,043,361 1,104,985
308 Tokio Marine Kiln Syndicates Limited — — 84,528 —
386 QBE Underwriting Limited 347,509 688,000 676,101 717,212
510 Tokio Marine Kiln Syndicates Limited 2,688,563 3,966,124 4,354,770 4,494,092
557 Tokio Marine Kiln Syndicates Limited 301,001 468,590 503,331 515,497
609 Atrium Underwriters Limited 1,279,982 2,180,088 2,476,231 2,585,811
623 Beazley Furlonge Limited 1,431,928 2,721,429 2,833,814 3,318,443
727 S A Meacock & Company Limited 539,378 621,211 673,634 686,069
779 ANV Syndicates Limited 20,000 — — —
958 Canopius Managing Agents Limited 553,663 647,022 190,436 —
1176 Chaucer Syndicates Limited 356,992 422,886 456,986 525,888
1200 Argo Managing Agency Limited 157,370 158,071 93,819 —
1729 Asta Managing Agency Limited — 104,443 68,758 —
1910 Asta Managing Agency Limited — — — 1,085,226
2010 Cathedral Underwriting Limited 527,247 788,022 765,756 803,908
2014 Pembroke Managing Agency Limited — 1,252,199 1,184,570 1,250,000
2121 Argenta Syndicate Management Limited 120,309 160,341 260,341 —
2525 Asta Managing Agency Limited 20,000 116,690 134,698 167,124
2791 Managing Agency Partners Limited 2,646,342 3,465,594 3,308,676 3,412,007
5820 ANV Syndicates Limited 224,170 220,259 160,259 —
6103 Managing Agency Partners Limited 550,173 520,992 209,826 235,001
6104 Hiscox Syndicates Limited 611,224 1,086,224 1,087,998 1,094,562
6105 Ark Syndicate Management Limited 115,296 497,192 515,932 —
6106 Amlin Underwriting Limited 361,805 — — —
6107 Beazley Furlonge Limited 32,500 372,500 372,500 372,500
6110 Pembroke Managing Agency Limited 1,072,507 — — —
6111 Catlin Underwriting Agencies Limited 775,544 1,288,533 1,366,820 1,547,837
6113 Barbican Managing Agency Limited 67,328 67,328 — —
6117 Asta Managing Agency Limited — 1,161,216 771,300 1,627,302
7200 Members’ agent pooling arrangement 533,338 229,692 75,199 —
7201 Members’ agent pooling arrangement 2,721,724 1,164,941 384,687 —
7202 Members’ agent pooling arrangement 969,860 417,196 134,663 —
7203 Members’ agent pooling arrangement 206,643 146,019 93,572 —
7211 Members’ agent pooling arrangement 5,545,063 793,461 101,070 —
7217 Members’ agent pooling arrangement 177,460 177,460 199,640 210,730
7227 Members’ agent pooling arrangement — — 34,150 64,031
Total 26,961,842 29,089,822 26,798,860 28,095,439
* Including the new acquisitions in 2015.
Notes to the financial statements continued
Year ended 31 December 2015
56                  Helios Underwriting plc  Annual report and financial statements 2015 25. 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 2015 Restated 31 December 2014
Group
£’000
Syndicate
£’000
Total
£’000
Group
£’000
Syndicate
£’000
Total
£’000
Assets
Intangible assets 8,511 — 8,511 6,368 — 6,368
Reinsurance assets:
– reinsurers’ share of claims outstanding — 5,657 5,657 — 4,682 4,682
– reinsurers’ share of unearned premium — 1,501 1,501 — 1,014 1,014
Other receivables, including insurance and reinsurance receivables 1,216 19,211 20,427 2,193 14,186 16,379
Prepayments and accrued income 15 3,055 3,070 14 2,053 2,067
Financial assets at fair value through profit or loss 4,644 27,153 31,797 1,493 21,484 22,977
Cash and cash equivalents 2,223 1,411 3,634 2,546 1,059 3,605
Total assets 16,609 57,988 74,597 12,614 44,478 57,092
Liabilities
Insurance liabilities:
– claims outstanding — 32,985 32,985 — 26,179 26,179
– unearned premium — 11,169 11,169 — 8,005 8,005
Deferred income tax liabilities 3,172 — 3,172 2,352 — 2,352
Other payables, including insurance and reinsurance payables 1,586 7,774 9,360 529 5,684 6,213
Accruals and deferred income 1,577 (89) 1,488 1,269 206 1,475
Total liabilities 6,335 51,839 58,174 4,150 40,074 44,224
Equity attributable to owners of the Parent
Share capital 1,050 — 1,050 853 — 853
Share premium 9,901 — 9,901 6,996 — 6,996
Other reserves — 121 121 — — —
Retained earnings (677) 6,028 5,351 615 4,404 5,019
Total equity 10,274 6,149 16,423 8,464 4,404 12,868
Total liabilities and equity 16,609 57,988 74,597 12,614 44,478 57,092
Below is an analysis of the free working capital available to the Group:
Group
31 December
2015
£’000
31 December
2014
£’000
Funds at Lloyd’s supplied by:
Quota share reinsurers 9,378 8,728
Stop loss reinsurers 1,447 610
Group owned 3,894 925
Total Funds at Lloyd’s supplied (excluding solvency credits) 14,719 10,263
Group funds available:
Financial assets 4,644 1,493
Cash 2,223 2,546
Total funds 6,867 4,039
Less Group Funds at Lloyd’s (3,894) (925)
Free working capital 2,973 3,114
Annual report and financial statements 2015  Helios Underwriting plc                  57
Financial statements Notes to the financial statements continued
Year ended 31 December 2015
26. 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:
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.
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 £966,000, giving rise to goodwill of £104,000 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 — 604 604
Reinsurance assets:
– reinsurers’ share of claims outstanding 333 — 333
– reinsurers’ share of unearned premium 67 — 67
Other receivables, including insurance and reinsurance receivables 1,238 — 1,238
Prepayments and accrued income 163 — 163
Financial assets at fair value through profit or loss 1,857 — 1,857
Cash and cash equivalents 103 — 103
Insurance liabilities:
– claims outstanding (2,121) — (2,121)
– unearned premium (584) — (584)
Deferred income tax liabilities (109) (115) (224)
Other payables, including insurance and reinsurance payables (439) — (439)
Accruals and deferred income (31) — (31)
Net assets acquired 477 489 966
Satisfied by:
Cash and cash equivalents 1,070 — 1,070
Total consideration 1,070 — 1,070
Goodwill 593 (489) 104
2014 year of
account
2015 year of
account
2016 year of
 account
Capacity acquired 1,866,053 1,298,575 1,244,242
58                  Helios Underwriting plc  Annual report and financial statements 2015 26. Events after the financial reporting period continued
Nameco (No 346) Limited
On 23 May 2016, Helios Underwriting plc acquired 100% of the issued share capital of Nameco (No 346) Limited for a total consideration of 
£3,750,000. Nameco (No 346) 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 £3,270,000, giving rise to goodwill of £480,000 on 
acquisition. The following table explains the provisional fair value adjustments made to the carrying values of the major categories of assets 
and liabilities at the date of acquisition:
Carrying value
£’000
Adjustments
£’000
Fair value
£’000
Intangible assets 3 1,300 1,303
Reinsurance assets:
– reinsurers’ share of claims outstanding 687 — 687
– reinsurers’ share of unearned premium 202 — 202
Other receivables, including insurance and reinsurance receivables 4,021 — 4,021
Prepayments and accrued income 498 — 498
Financial assets at fair value through profit or loss 3,213 — 3,213
Cash and cash equivalents 574 — 574
Insurance liabilities:
– claims outstanding (4,025) — (4,025)
– unearned premium (1,526) — (1,526)
Deferred income tax liabilities (242) (247) (489)
Other payables, including insurance and reinsurance payables (1,018) — (1,018)
Accruals and deferred income (170) — (170)
Net assets acquired 2,217 1,053 3,270
Satisfied by:
Cash and cash equivalents 3,750 — 3,750
Total consideration 3,750 — 3,750
Goodwill 1,533 (1,053) 480
2014 year of
account
2015 year of
account
2016 year of
 account
Capacity acquired 3,367,971 3,187,015 3,320,877
Future dividends
In respect of the year ended 31 December 2015 a final dividend of 1.5p per share together with a special dividend of 3.5p per share, amounting 
to a total dividend of £519,000, is to be proposed at the Annual General Meeting on 28 June 2016. These Financial Statements do not reflect 
this dividend payable.
Annual report and financial statements 2015  Helios Underwriting plc                  59
Financial statements 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
60                  Helios Underwriting plc  Annual report and financial statements 2015  
Helios Underwriting plc is committed to 
environmental issues, which is reflected in 
this Annual Report which has been printed 
on Novatech Digital Silk, which is an FSC
®
 
Mix Certified paper, ensuring that all virgin 
pulp is derived from well managed forests 
and other responsible sources. Helios Underwriting plc Annual report and financial statements 2015
Helios Underwriting plc
40 Gracechurch Street 
London 
EC3V 0BT