Helios Underwriting, the Lloyd’s of London focused investment and underwriting vehicle, has secured backing from specialist insurance-linked securities (ILS) and reinsurance investment firms ILS Capital Management and Hudson Structured Capital Management.
The two experienced ILS and reinsurance investment managers are between them subscribing for £40.8 million of an up to £60 million capital raise by Helios, as the company continues to target sophisticated and experienced investors to help it build its portfolio of Lloyd’s business.
ILS Capital Management is to invest £20.8 million and at the same time Tom Libassi, co-founder and managing partner of ILS Capital Management, has agreed to become a non-executive director of Helios with a seat on the board.
The £20.8 million is being invested by funds under the management of, or associated with ILS Capital.
Hudson Structured Capital Management is to invest £20 million as part of the capital raising round from Helios, presumably through its HSCM Bermuda branch which undertakes its reinsurance related investing.
Helios’ CEO explained to us previously that the company has been targeting ILS fund managers and other sophisticated and experienced insurance sector investors.
In ILS Capital and Hudson Structured they have secured support and backing from two of the ILS managers offering a more diverse and broader investment strategy, allocating to more lines of business than just property catastrophe reinsurance risks and both with experience of allocating capital into the Lloyd’s of London marketplace.
Both of the ILS fund managers are subscribing to the Helios capital raise at UK £1.60 per share.
Helios is set to raise £43.8 million through the issue of 27,375,000 new ordinary shares at £1.60 per share, which is seemingly largely the ILS Capital and Hudson Structured investment.
Helios will also try to raise up to up to £13.2 million through an additional conditional placing to new and existing investors, as well as an additional £3 million through a conditional open offer.
The company said that the proceeds of the capital raise will be used in its limited liability vehicles (LLV) acquisition strategy at Lloyd’s, with a targeted campaign of further LLV acquisitions over the next 12 months.
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