Helios Underwriting (HUW) AI Stock Analysis

• Market Cap: £141.08M
• Dividend Yield: 2.91%
• Average Volume (3M): 39.67K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.59
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 11
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.06
• Shares Outstanding: 69,585,915
• 10 Day Avg. Volume: 36,709
• 30 Day Avg. Volume: 39,671
• PEG Ratio: 0.61
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 5.71
• P/FCF Ratio: -55.88
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: 214.00p ▲(3.88% Upside)

Helios Underwriting's overall score reflects significant challenges in financial performance, particularly in revenue and cash flow volatility. However, the stock's undervaluation and positive corporate events, such as strategic leadership changes and shareholder returns, provide a counterbalance, suggesting potential for future improvement.

Positive Factors

Operational Efficiency

Operational efficiency indicates effective management and cost control, which can lead to sustained profitability and competitive advantage in the insurance sector.

Stable Capital Structure

A stable capital structure with improved debt-to-equity ratio enhances financial stability, providing resilience against market fluctuations and supporting long-term growth.

High Gross Profit Margins

High gross profit margins reflect strong pricing power and cost management, which can sustain profitability even in challenging revenue environments.

Negative Factors

Revenue Volatility

Significant revenue volatility poses a risk to financial stability, potentially impacting long-term growth and investor confidence.

Negative Cash Flows

Negative cash flows can strain liquidity and limit the company's ability to invest in growth opportunities, affecting long-term operational sustainability.

Fluctuating ROE

Fluctuating ROE indicates potential profitability challenges, which could affect investor returns and the company's ability to attract capital for expansion.

Helios Underwriting Business Overview & Revenue Model

Company Description

Helios Underwriting plc, together with its subsidiaries, provides a limited liability investment for its shareholders in the Lloyd's insurance market in the United Kingdom. It operates through three segments: Syndicate Participation, Investment Management, and Other Corporate Activities. The company participates in the Lloyd's insurance market through a portfolio of Lloyd's syndicates. Its portfolio provides property insurance and reinsurance products. The company was formerly known as Hampden Underwriting Plc and changed its name to Helios Underwriting Plc in January 2014. Helios Underwriting plc was incorporated in 2006 and is based in London, the United Kingdom.

How the Company Makes Money

Helios Underwriting generates revenue primarily through underwriting profits from the insurance and reinsurance policies it writes. The company earns money by collecting premiums from policyholders, which are then invested to generate further income. Key revenue streams include the underwriting of specialty insurance products, fees from managing syndicates within the Lloyd's market, and investment income from the premiums collected. Strategic partnerships with other insurers and brokers also enhance HUW's market reach and profitability, allowing the company to diversify its risk portfolio and access new customer segments.

Helios Underwriting Financial Statement Overview

Summary

Helios Underwriting shows strengths in operational efficiency and a stable capital structure, but faces significant challenges with revenue volatility and cash flow management. The company's ability to maintain profitability amidst declining revenues and negative cash flows will be crucial for future stability.

Income Statement

Helios Underwriting has experienced significant revenue volatility, with a sharp decline in revenue growth rate of -85.85% in the latest year. Despite high gross profit margins, the net profit margin has fluctuated, peaking at 51.60% recently due to reduced revenue. The EBIT and EBITDA margins have improved significantly, indicating better operational efficiency, but the overall revenue decline poses a risk.

Balance Sheet

The company's debt-to-equity ratio has improved over time, indicating a stronger equity position relative to debt. However, the return on equity has been inconsistent, with a recent improvement to 10.73%. The equity ratio remains stable, suggesting a solid capital structure, but the fluctuating ROE highlights potential profitability challenges.

Cash Flow

Helios Underwriting's cash flow situation is concerning, with negative operating and free cash flows in the latest period. The free cash flow growth rate has been negative, and the operating cash flow to net income ratio is zero, indicating cash flow issues despite reported net income. This poses a risk to liquidity and operational sustainability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.00M	209.36M	149.39M	70.58M	52.30M
Gross Profit	36.00M	214.75M	111.65M	52.64M	52.59M
EBITDA	26.99M	24.30M	-4.21M	868.00K	-746.00K
Net Income	18.57M	16.37M	-2.10M	-434.00K	301.00K
Balance Sheet
Total Assets	243.01M	756.60M	490.49M	341.63M	192.62M
Cash, Cash Equivalents and Short-Term Investments	28.93M	40.91M	25.30M	24.62M	8.49M
Total Debt	58.46M	59.05M	15.00M	0.00	4.00M
Total Liabilities	69.89M	616.50M	373.31M	233.88M	142.07M
Stockholders Equity	173.12M	140.10M	117.18M	107.75M	50.55M
Cash Flow
Free Cash Flow	-3.68M	2.70M	-25.66M	-20.01M	-12.13M
Operating Cash Flow	-3.68M	3.20M	-24.96M	-17.02M	-11.94M
Investing Cash Flow	-1.52M	1.06M	-107.00K	-14.43M	1.23M
Financing Cash Flow	-7.98M	37.25M	25.75M	47.58M	13.17M

Helios Underwriting Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 206.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HUW, the sentiment is Negative. The current price of 206 is below the 20-day moving average (MA) of 207.80, below the 50-day MA of 214.58, and below the 200-day MA of 212.99, indicating a bearish trend. The MACD of -2.25 indicates Negative momentum. The RSI at 40.70 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:HUW.

Helios Underwriting Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRE	77 Outperform	£538.78M	49.50	1.39%	7.61%	15.83%	-93.41%
LRE	76 Outperform	£1.58B	8.77	15.18%	11.94%	8.78%	-38.83%
BEZ	76 Outperform	£5.29B	7.50	22.59%	3.19%	6.00%	-24.29%
ADM	74 Outperform	£9.81B	11.86	65.36%	7.69%	22.62%	106.27%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HUW	58 Neutral	£141.08M	8.06	―	2.91%	―	―

Helios Underwriting Corporate Events

Helios Underwriting Grants LTIP Awards to Key Executives

Helios Underwriting plc has announced the grant of Long Term Incentive Plan (LTIP) awards to key managerial personnel, including CEO Louis Tucker and Head of Portfolio Strategy Jen Tan. These awards, which are structured as nil cost options, are designed to align management’s interests with those of shareholders by tying vesting to the company’s total shareholder return over a specified period. The announcement underscores Helios’s commitment to incentivizing its leadership team to drive performance and enhance shareholder value, reflecting its strategic positioning within the Lloyd’s insurance market.

Helios Underwriting’s Strategic Shareholding Adjustment by Deputy Chairman

Helios Underwriting announced that Nigel Hanbury, its Non-Executive Deputy Chairman, executed a ‘Bed and ISA’ trade involving 92,900 shares, maintaining his total interest at 10.8% of the company’s voting rights. This transaction, compliant with UK Market Abuse Regulation, underscores Helios’ strategic financial maneuvers within the insurance market, potentially impacting shareholder dynamics.

Helios Underwriting Announces Share Tender by Major Stakeholder

Helios Underwriting plc announced that Producers National Corporation, managed by Resolute Global Partners Ltd, tendered 525,478 ordinary shares at 238 pence per share under a recent Tender Offer. This transaction, involving Non-Executive Director Tom Libassi, resulted in him holding 18.52% of the company’s voting rights, potentially impacting the company’s shareholder structure and market positioning.

Helios Underwriting’s Deputy Chairman Adjusts Shareholding

Helios Underwriting plc announced that its Non-Executive Deputy Chairman, Mr. Nigel Hanbury, along with associated persons, tendered 879,545 ordinary shares at 238 pence per share as part of a recent Tender Offer. Additionally, Mr. Hanbury sold 500,000 shares at 218.9 pence per share. Following these transactions, Mr. Hanbury and his associates now hold 7,527,680 ordinary shares, representing 10.8% of the company’s voting rights. This move indicates a significant adjustment in shareholding, potentially impacting the company’s governance and stakeholder interests.

Helios Underwriting Announces Tender Offer Results and Voting Rights Update

Helios Underwriting plc announced the results of its Tender Offer, where 3,052,013 Ordinary Shares will be purchased at 238 pence each, returning approximately £7.26 million to shareholders. Following the completion of the Tender Offer, the total voting rights in Helios will be 69,585,918, impacting shareholder calculations under the FCA’s rules.

Helios Underwriting Secures Shareholder Approval for Key Resolutions

Helios Underwriting plc announced that all resolutions proposed at their General Meeting, including a special resolution for a tender offer to shareholders, were approved. The meeting also saw significant support for increasing the cap on Directors’ fees and authorizing the company to make market purchases of its own shares, indicating strong shareholder backing for Helios’ strategic initiatives.

Helios Underwriting Announces Key Leadership Appointments

Helios Underwriting plc has announced significant leadership changes with the appointment of Louis Tucker as CEO and Joanna Parsons as an Independent Non-Executive Director. Louis Tucker, with over two decades of experience in the Lloyd’s Market, is expected to lead Helios at a pivotal moment, leveraging his expertise in managing and scaling businesses. Joanna Parsons brings extensive experience in strategic and equity analysis, M&A, and financial oversight, which is expected to enhance Helios’s strategic growth and governance.

Helios Underwriting Hosts Capital Markets Day to Showcase Strategy and Leadership

Helios Underwriting plc is hosting a Capital Markets Day to engage with investors and analysts, featuring presentations on its business model, financials, and portfolio strategy. The event will introduce the new CEO, Louis Tucker, and provide insights into the company’s syndicate evaluation and strategic use of stochastic analysis, although no new material information or trading updates will be disclosed.

Helios Underwriting Plans £7.3 Million Shareholder Return via Tender Offer

Helios Underwriting plc has announced a proposed return of up to £7.3 million to its shareholders through a tender offer at 238 pence per ordinary share, representing a 16.7% premium to the recent market price. This decision follows strong financial results and favorable underwriting conditions at Lloyd’s, aiming to efficiently return excess capital to shareholders while considering tax implications and equality of treatment.

Helios Underwriting Reports Strong Interim Results Amid Favorable Market Conditions

Helios Underwriting announced strong interim financial results for the first half of 2025, driven by favorable Lloyd’s market conditions and strategic management. The company reported a 6p increase in net asset value per share and a significant reduction in operating expenses. Helios also declared a total cash dividend of 10 pence per share and expects further profit growth in the second half of the year. The appointment of Louis Tucker as CEO and the focus on digitalization and portfolio management are expected to enhance operational capabilities. Despite challenges from natural disasters in 2024, the company remains optimistic about future returns and continues to unlock shareholder value.

Helios Underwriting Appoints Louis Tucker as CEO

Helios Underwriting has appointed Louis Tucker as its new Chief Executive Officer, pending regulatory approval. Tucker, who brings over two decades of experience in the Lloyd’s Market, is expected to enhance Helios’ strategic positioning and shareholder returns with his extensive background in managing and scaling insurance businesses. His appointment is seen as a significant step in strengthening Helios’ portfolio and continuing its track record of outperforming the Lloyd’s market.