Helios Underwriting plc

("Helios" or the "Company")

2018 Capacity and Trading Statement

Helios is pleased to announce that the capacity for the 2018 year of account will commence at £41m, an increase of 26% over opening capacity for 2017 year of account.    The quality of the portfolio has been improved, with Helios taking up all the pre-emption offers on capacity with value at the auctions, and as premium rates are expected to rise following the recent losses, the underwriting margins are likely to improve.

Following the Lloyds Capacity Auctions, the Weighted Average Prices of the capacity traded in 2017 reduced as a greater volume of capacity was traded over the three auctions and as the implications of the recent hurricane losses was felt.

Helios will continue to quota share reinsure 70% of the 2018 underwriting year exposures.

The results for the year to 31 December 2017 have been impacted by the 2017 catastrophe losses.  The Board expects an operating loss before tax of approximately £0.5m (2016 operating profit of £1.3m) after reinsurance recoveries but before any charge for the impairment of capacity and deferred tax adjustments.

The Adjusted Net Asset Value as at 31 December is forecast to be approximately 168p (196p - 2016).  The reduction the weighted Average Price per £ of capacity of 30% from the Lloyds Auctions is the driver to this fall in ANAV.

Following the catastrophic losses of Hurricanes Harvey, Irma and Maria, along with bushfires in California and other events, there is evidence of a hardening market for 2018 and beyond.   We will continue to seek to acquire further LLV's, particularly as valuation expectations for LLVs will now take into account lower auction values and a less profitable pipeline of underwriting results.

Our reinsurers have indicated continued support for which we are most grateful.  They have been the beneficiaries of the quality portfolio which makes up the Helios Capacity Fund. In profitable years the outperformance against Lloyds as a whole has been significant. We are confident that a satisfactory degree of outperformance will be maintained when the results for 2017 begin to be announced.

Our quality portfolio, together with the reinsurance protections we put in place, have put us in a strong position to benefit from these changing circumstances and we look forward to taking advantage of them.

For further information please contact:

Helios

Nigel Hanbury - Chief Executive                                                              020 7863 6655 / nigel.hanbury@huwplc.com

Arthur Manners - Chief Financial Officer                                             07754 965 917

Stockdale

Robert Finlay                                                                                                   020 7601 6100

About Helios

Helios provides a limited liability direct investment into the Lloyd's insurance market and is quoted on the London Stock Exchange's AIM market (ticker: HUW). Helios trades within the Lloyd's insurance market and expects to write approximately £41m of capacity for the 2018 account. The portfolio provides a good spread of business being concentrated in property insurance and reinsurance. For further information please visit www.huwplc.com.