Helios Underwriting has reported a profit before tax of £4.4 million for the first half of 2025, as the Lloyd’s market continues to deliver strong performance and the outlook for 2026 remains positive.
The firm said reduced expenses and the impact of foreign exchange movements on debt revaluation drove its H1 2025 profit.
The Lloyd’s investment vehicle also reported that its operating ratio, operating expenses relative to gross capacity, fell sharply from 0.98% in H1 2024 to 0.48% in H1 2025, and it expects a comparable reduction in the second half of the year.
Meanwhile, net asset value (NAV) per share rose to £2.39 at 30 June 2025, up from £2.33 at the end of 2024 after accounting for a 10p dividend.
Total net assets reportedly increased to £170.4 million (from £166.0 million at 31 December 2024), supported by the recognition of underwriting profit in Q2.
Helios noted it has adopted a more conservative profit-recognition methodology, deferring a larger share of earnings into the second half of the year to reflect the seasonality of claims, and therefore expects further NAV uplift in H2 2025.
The company highlighted that £21 million of net underwriting profits from the 2022 year of account were received in May 2025, with around £14.3 million being returned to shareholders. A further £40 million of net underwriting profits is expected in 2026 from the 2023 year of account.
With this in mind, Helios said the 2024 year of account should also produce a strong return.
Interim Executive Chairman, John Chambers, commented, “The strong pricing environment in the insurance market continues to show through in our pipeline profits.
“The 2023 profit forecast continues to improve in line with expectations. Historic development patterns indicate that further improvement is likely in the final half year. The 2023 underwriting profit will be received by us next year and will be the largest made by Helios by some margin.
“The 2024 calendar year experienced above-average losses with hurricanes Helene and Milton resulting in market-wide insured losses of $20 billion each and the Baltimore Bridge Collapse one of the costliest losses ever to have hit the marine insurance market.
“Whilst the significant California wildfires occurred in early 2025, much of the estimated $40 billion in losses will fall to the 2024 year policies.
“In spite of this the mid-point forecast of 8.0% profit on capacity has improved in the half year and is tracking towards a strong ultimate result. This demonstrates the underlying strength of pricing adequacy.”
Chambers continued, “Whilst the 2025 year of account is at a very early stage of development, we are hopeful that the current strong rating environment will ultimately result in good returns for this year and beyond despite the modest headwind of a softening US Dollar The ongoing strong financial performance of Helios reflects the strength of our unique proposition, our continued strategic delivery and favourable underwriting conditions.
“As a result, we have been able to continue to unlock shareholder returns, including a dividend payment of 10 pence per share in 2025.
“Helios remains a unique proposition for investors seeking access to this favourable market, and we remain confident that, from a returns perspective, the most attractive years of this insurance cycle are still to come and are excited about the opportunities that lie ahead.”
