DARAG UK LIMITED

Company Registration Number:
11826973 (England and Wales)

Unaudited statutory accounts for the year ended 31 December 2022

Period of accounts

Start date: 1 January 2022

End date: 31 December 2022

DARAG UK LIMITED

Contents of the Financial Statements

for the Period Ended 31 December 2022

Directors report
Balance sheet
Additional notes
Balance sheet notes

DARAG UK LIMITED

Directors' report period ended 31 December 2022

The directors present their report with the financial statements of the company for the period ended 31 December 2022

Principal activities of the company

The principal activity of the Company is that of a holding company and is a private company limited by shares. The Company was incorporated under the laws of England and Wales under the Companies’ Act 2006. Its subsidiaries are licensed insurance carriers across the US and Bermuda. The Company and its subsidiaries are referred to as DARAG herein. The Company is included in the consolidated financial statements of DARAG Guernsey Limited (“DGuL”). The parent company of the Company is DARAG Holding Guernsey 2 Limited, and its registered address and principal place of business is PO Box 119 Martello Court Admiral Park St Peter Port Guernsey GY1 3HB, which holds all shares of the Company. The Company is a wholly owned subsidiary of DARAG Guernsey Limited (the “ultimate parent company”), and its registered address and principal place of business is PO Box 119 Martello Court Admiral Park St Peter Port Guernsey GY1 3HB.

Political and charitable donations

No charitable or political donations were made by the Company in the current period (2021: nil).

Additional information

ResultsThe results of the company for the period are shown in the statement of comprehensive income on page 6. The Company made a loss of USD 14,726 (2021: loss of USD 2,229,839).Directors' third party indemnity provisionsThe directors have the benefit of an indemnity which is a qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force through out the last financial year and is currently in force.Going concernThe directors have prepared these financial statements on a going concern basis, as they are of the opinion that the Company will be able to pay its debts as and when they fall due. Financing is provided by DARAG Guernsey Limited through capital contributions in order to meet liabilities as they fall due and for the purposes of investment activity.Subsequent events There are no subsequent events to report as at signing date.Russia-Ukraine conflictThe geopolitical situation in Eastern Europe with Russia’s military action against Ukraine has continued throughout 2022. The Company and its subsidiaries have not been directly impacted by the current war in Ukraine and sanctions imposed on the Russian Federation, but the macroeconomic challenges impacting the wider insurance industry such as rising interestrates, increasing inflation, hardening (re)insurance pricing as a result of the conflict, has put pressure on the company and its subsidiaries, including volatility in asset prices. The directors will continue to monitor the evolution of this situation.Statement of directors’ responsibilities for the financial statementsThe directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulation. The Companies Act 2006 requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” Section 1A, and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing the financial statements, the directors are required to:-select suitable accounting policies and then apply them consistently;-state whether applicable United Kingdom Accounting Standards, comprising FRS 102 Section 1A, have been followed;-make judgements and accounting estimates that are reasonable and prudent; and-prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Company will continue in business.The directors are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006.The directors are responsible for the maintenance and integrity of the website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.Disclosure of information to auditorhe Directors who held office at the date of approval of this directors’ report confirm that, so far as they are each aware, there is no relevant information of which the Company’s auditor is unaware; and each director has taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the Company’s auditor is aware of that information.



Directors

The directors shown below have held office during the whole of the period from
1 January 2022 to 31 December 2022

Thomas Alexander Booth
Daniel Geoffrey Kilpatrick


The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
21 June 2023

And signed on behalf of the board by:
Name: Thomas Alexander Booth
Status: Director

DARAG UK LIMITED

Balance sheet

As at 31 December 2022

Notes 2022 2021


£

£
Called up share capital not paid: 0 0
Fixed assets
Intangible assets:   0 0
Investments: 3 21,291,079 21,290,079
Total fixed assets: 21,291,079 21,290,079
Current assets
Cash at bank and in hand: 4,777 17,520
Total current assets: 4,777 17,520
Creditors: amounts falling due within one year: 4 ( 28,092 ) ( 25,109 )
Net current assets (liabilities): (23,315) (7,589)
Total assets less current liabilities: 21,267,764 21,282,490
Total net assets (liabilities): 21,267,764 21,282,490
Capital and reserves
Called up share capital: 5 5
Share premium account: 23,539,574 23,539,574
Profit and loss account: (2,271,815 ) (2,257,089 )
Total Shareholders' funds: 21,267,764 21,282,490

The notes form part of these financial statements

DARAG UK LIMITED

Balance sheet statements

For the year ending 31 December 2022 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors have chosen not to file a copy of the company's profit and loss account.

This report was approved by the board of directors on 21 June 2023
and signed on behalf of the board by:

Name: Thomas Alexander Booth
Status: Director

The notes form part of these financial statements

DARAG UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2022

  • 1. Accounting policies

    Basis of measurement and preparation

    These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

    Other accounting policies

    1. General informationDARAG UK Limited (the “Company”) is a private company limited by shares and incorporated under the laws of England and Wales under the Companies’ Act 2006. The registered office is 25 Eastcheap, Fourth Floor, London, England, EC3M 1DT.The Company operates through its 100% owned subsidiaries (see note 7), which are in the business of acquiring financially distressed insurance entities, assuming loss portfolios by way of reinsurance, and providing consulting services including the management of captives and risk retention groups.2. Summary of significant accounting policiesa. The financial statements for the period ended 31 December 2022 have been prepared in accordance with United Kingdom Accounting Standards including Financial Reporting Standard 102, The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (“FRS 102”) applying section 1A small entities and the Companies Act 2006.b. Basis of preparationThe financial statements have been prepared on a going concern basis. The financial statements are presented in US Dollars being the functional currency of the company and rounded to the single US Dollar unless otherwise stated.The Company is a wholly owned subsidiary of DARAG Guernsey Limited. The Company’s results are included in the consolidated financial statements of the ultimate parent company which are prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union. DARAG Guernsey Limited’s registered address which is also its principal place of business is PO Box 119, Martello Court, Admiral Park, St Peter Port, Guernsey, GY1 3HB.The Company has taken advantage of the exemption from audit under section 477 of the Companies Act 2006 relating to small companies and has not prepared audited consolidated financial statements for the period ended 31 December 2022. The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime. These financial statements present information about the Company as an individual entity and not in regards to its group.Under FRS 102 Section 1A for small entities, the Company is exempt from the requirement to prepare a cash flow statement on the grounds of its size.The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements.c. Going concernThe directors have prepared these financial statements on a going concern basis, as they are of the opinion that the Company will be able to pay its debts as and when they fall due. Financing is provided by DARAG Guernsey Limited through capital contributions in order to meet liabilities as they fall due and for the purposes of investment activity.As a wholly owned subsidiary of DARAG Guernsey Limited, the directors expect the Company to have adequate resources to remain in existence for the foreseable future.e. TaxationThe current tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities.f. Financial instrumentsFinancial instruments which are all considered to be basic financial instruments, consist of debt instruments held by the Company measured at amortised cost.DebtorsDebtors principally consist of amounts due from group companies, prepayments, accrued income and sundry debtors and are carried at amortised cost less impairment.The Company assesses on a forward looking basis the expected credit losses associated with its debtors carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For debtors, the Company applies the simplified approach on expected lifetime losses to be recognised from initial recognition of the receivables. Impairment losses are recognised within operating profit in the statement of comprehensive income. Subsequent recoveries of amounts previously written off are credited against the same line item.CreditorsCreditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.Cash and cash equivalentsCash and cash equivalents is comprised only of cash held at bank.g. EquityShare capital represents the nominal value of shares that have been issued.Capital contributions includes any contributions from equity holders over and above the nominal value of shares issued.Retained earnings represent all current and prior period results of operations as reported in the statement of profit or loss, reduced by the amounts of dividends declared.i. Foreign currency translationTransactions in foreign currencies are translated into the company’s functional currency at the exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Non monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Non monetary items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction. Foreign currency differences are generally recognised in the statement of comprehensive income.3. Critical accounting estimates and judgementsEstimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.a. impairmentFor purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). As a result, assets are tested for impairment either individually or at the cash generating unit level.In determining value in use, management estimates the expected future cash flows from each cash generating unit and determines the suitable interest rate in order to calculate the present value of those cash flows. The data used for impairment testing procedures are directly linked to the Company’s latest approved budget, adjusted as necessary to exclude the effects of asset enhancements. Discount factors are determined individually for each cash generating unit and reflect management’s assessment of respective risk profiles, such as market and asset specific risk factors.

DARAG UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2022

  • 2. Employees

    2022 2021
    Average number of employees during the period 0 0

DARAG UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2022

3. Fixed assets investments note

Investment in subsidiariesInvestment in subsidiaries are stated at cost less impairment in value.For purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). As a result, assets are tested for impairment either individually or at the cash generating unit level.Impairment loss is recognized in profit or loss for the amount by which the asset’s or cash generating unit’s carrying amount exceeds its recoverable amounts which is the higher of its fair value less costs to sell and its value in use. In determining value in use, management estimates the expected future cash flows from each cash generating unit and determines the suitable interest rate in order to calculate the present value of those cash flows. The data used for impairment testing procedures are directly linked to the Company’s latest approved budget, adjusted as necessary to exclude the effects of asset enhancements. Discount factors are determined individually for each cash generating unit and reflect management’s assessment of respective risk profiles, such as market and asset specific risk factors. All assets are subsequently reassessed for indications that an impairment loss previously recognized may no longer exist. An impairment loss is reversed if the asset’s or cash generating unit’s recoverable amount exceeds its carrying amount.

DARAG UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2022

4. Creditors: amounts falling due within one year note

2022 2021
£ £
Accruals and deferred income 22,122 18,621
Other creditors 5,970 6,488
Total 28,092 25,109