KBRA Affirms Rating for Helios Underwriting plc
12 Dec 2025 | New York
KBRA affirms the long-term credit rating of A- on Helios Underwriting plc’s (LSE:HUW.L) (Helios) USD 75 million 9.5% fixed rate Series A Senior Unsecured Notes due December 15, 2030. The Outlook for the rating is Stable.
Key Credit Considerations
The rating reflects Helios’ reduction in its gearing ratio and financial leverage since original issuance of the Notes in December 2023, adequate free cash flow to service debt on the Notes, and its unique offering for investors who wish to access uncorrelated insurance-linked returns of Lloyd’s (KBRA: AA-/Stable) without having to operate in the market. The rating also reflects the structural subordination of Helios’ debtholders to Lloyd’s policyholders and the manageable impact on the economics of the business from the adoption of IFRS-10 in 2024.
Balancing these strengths are a new management team and potential volatility to covenant calculations from the fair value accounting under IFRS-10.
Rating Sensitivities
Material appreciation in the valuation of subsidiary Limited Liability Vehicles (LLVs) or a reduction in financial leverage faster than planned could result in a positive rating action. Material depreciation in the valuation of subsidiary LLVs, an increase in financial leverage, and/or a material breach of any covenant could result in a negative rating action.
Helios is a specialist investment company that provides capital to the Lloyd’s of London market (KBRA: AA-/Stable) through a portfolio of corporate members/Limited Liability Vehicles, giving shareholders leveraged exposure to a curated, diversified book of specialist (re)insurance business. The company generates returns from underwriting profits on its retained capacity, fee and profit-commission income on third-party capital, and the embedded value and growth of its portfolio of Lloyd’s syndicate capacity.
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