Press Release|Insurance
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KBRA Affirms Rating for Helios Underwriting plc

22 Dec 2025   |   New York

Contacts

KBRA affirms the long-term credit rating of A- on Helios Underwriting plc’s (LSE:HUW.L) (Helios) amended 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. Helios amended the Note Purchase Agreement (NPA) on December 19th, 2025 which modestly strengthened certain covenants related to reporting and other operational requirements; there were no changes to the key terms of the Notes, leverage, asset coverage or other financial covenants. The amendment also allows for early repayment of the loan. Overall, KBRA views the amendments to the NPA as marginally positive for Noteholders. 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 to the NPA 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.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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