Company registration number 05604278 (England and Wales)
IPRISM UNDERWRITING AGENCY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
IPRISM UNDERWRITING AGENCY LIMITED
COMPANY INFORMATION
Directors
R Bosamia
G Johnson
I Lloyd
M Roncalli
B Harmer
(Appointed 23 October 2023)
A Woodhams
(Appointed 23 October 2023)
Mr A K Saunders
(Appointed 1 April 2024)
Company number
05604278
Registered office
18 Bevis Marks
London
United Kingdom
EC3A 7JB
Auditor
Azets Audit Services
2nd Floor
Regis House
45 King William Street
London
EC4R 9AN
Solicitors
Cripps LLP
Number 22
Mount Ephraim
Tunbridge Wells
Kent
TN4 8AS
IPRISM UNDERWRITING AGENCY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Profit and loss account
10
Balance sheet
11
Notes to the financial statements
13 - 25
IPRISM UNDERWRITING AGENCY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The directors present the Strategic Report, Directors' Report and the audited financial statements of iprism Underwriting Agency Limited ("the Company") for the year ended 30 June 2024.

Fair review of the business

The Company is a UK managing general agent (“MGA”) which focuses on insurance products for UK small and medium-sized enterprises (“SME’s”) and personal insurance products for private individuals. The Company enjoys a strong reputation for the quality of its underwriting expertise, its excellent service proposition, and the utility of its proprietary technology platforms, which have been developed in-house over the course of a decade. The Company currently employs 63 staff and is headquartered in the City of London.

 

The business combines bespoke ‘in-house’ developed underwriting systems, distribution platform and data analytic capability with underwriting expertise, attentive broker service and a focus on putting customers first. The Company has positioned itself to deliver a value added proposition for all its business partners and customers and the Company’s performance remains in-line with expectations. The Directors are confident that this approach ensures profitability that is sustainable in the long term.

Principal risks and uncertainties

The Company has a robust strategy to identify, manage and mitigate risk. The principal risks and uncertainties facing the Company can be grouped as Underwriting Capacity, Competitive, Regulatory, Financial and Economic.

 

Underwriting Capacity Risk

The Company is an insurance managing general agent (“MGA”) and depends on insurance companies and Lloyd’s underwriters to provide it with insurance underwriting capacity for its products. To retain this underwriting capacity the Company is required to maintain satisfactory loss ratios for its insurer partners. The Directors believe that the Company’s focus on writing high quality business at sustainable margins will deliver the required loss ratio performance to ensure the continued participation of its insurance capacity providers.

 

Competitive risks

In the UK, the Company has a strong position being one of only a very small number of MGA’s with bespoke ‘in-house’ developed underwriting systems, distribution platforms and advanced data analytical capability. The Company faces competition from established MGAs, insurer extranets and a limited number of similar technology-enabled competitors. The Directors believe the provision of a wide product range, ease and efficiency of the business process, and increased breadth and quality of the insurer partners providing underwriting capacity, allied with a strong service proposition and continual development of the technology platforms will deliver sustainable competitive advantage for the Company.

 

Regulatory risks

The Company is regulated by the UK’s Financial Conduct Authority (“FCA”), whose standards are subject to continuous revision, and the Directors acknowledge that any such new regulations or standards may have a material impact on the ability of the Company to create and supply products at a profit. In addition, compliance imposes costs on the business, and failure to comply with relevant standards from time to time could materially affect the Company’s ability to operate successfully. However, the Directors consider these risks to be manageable based on the current regulatory environment and outlook.

Financial risks

The Company faces a number of financial risks which are discussed in the Financial Instrument Risk section of the Directors’ Report included in these financial statements.

 

Economic risk

There continues to be uncertainty as to the full impact on the UK economy from the UK’s decision to leave the EU, the war in Ukraine and the ongoing repercussions of the worldwide Coronavirus pandemic. However, the market the Company operates in remains resilient and the Company has enjoyed revenue growth in the reporting period.

 

IPRISM UNDERWRITING AGENCY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Future developments

The Company will continue to pursue future growth through a variety of means, including extending and broadening its range of products and services, delivering new insurance capacity from both existing and new insurers, further developing its technological capabilities and extending the breadth and penetration of its broker base. Focus will continue to be around writing high quality business at sustainable margins and delivering a value added proposition for all partners and customers. The Company anticipates this will require modest on-going investment in people, sales and marketing efforts and continuing development of its technology platforms.

 

 

On behalf of the board

I Lloyd
Director
21 March 2025
IPRISM UNDERWRITING AGENCY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

Principal activities

The Company’s principal activity is that of an insurance underwriting agency.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

R Bosamia
G Johnson
I Lloyd
M Roncalli
B Harmer
(Appointed 23 October 2023)
A Woodhams
(Appointed 23 October 2023)
Mr A K Saunders
(Appointed 1 April 2024)
Results and dividends

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Financial risk management objectives and policies

As part of the process of effective corporate governance, the Company conducts a process for the assessment and mitigation of risks affecting the Company, particularly those which could inhibit achievement of the Company's strategic objectives. In particular, risk management focuses on operational, compliance and financial objectives.

 

The Board of Directors ("the Board") sets the overall risk appetite and culture of the Company. The Board establishes the parameters for risk appetite through setting the strategic direction, contributing to and ultimately approving annual business plans for the Company, and regularly reviewing and monitoring performance in relation to risk through half-yearly and ad hoc reports.

 

Risk appetite is defined in both qualitative and quantitative terms and is an expression of the maximum level of residual risk that the Company is prepared to accept in order to deliver its business objectives.

 

Monitoring exposure to risk and uncertainty is an integral part of the Company's structured management processes. The Company's activities expose it to a number of financial risks including cash flow risk, credit risk, interest rate risk and liquidity risk. The policies for managing financial risks set by the Board are implemented by the Company's finance department. The finance department follows specific guidelines to manage cash flow risk, credit risk, interest rate risk and liquidity risk and to assess the circumstances where it would be appropriate to use financial instruments to manage these. We also comment below on counterparty risk and insurance premium factors.

Liquidity risk

In order to maintain liquidity and to ensure that sufficient funds are available for ongoing operations and future developments, the Company uses a mixture of long-term and short-term debt finance. The Company has assessed its future funding requirements by preparing a cash flow forecast for the next three years.

Counterparty risk

In accordance with industry practice and risk transfer agreements with underwriters, the Company has minimal exposure to financial risks arising from its transactions with policyholders and underwriters.

IPRISM UNDERWRITING AGENCY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
Credit risk

The Company’s principal financial assets are cash at bank and debtors.

 

The Directors consider the credit risk for cash at bank to be limited because this is held with counterparties with a high credit rating that has been assigned by international credit rating agencies.

 

The Company’s credit risk is primarily attributable to its trade debtors. The amounts presented in the balance sheet in respect of trade debtors are net of provisions for irrecoverable amounts. A provision is made for cancellations in the item Provisions for Liabilities in the Balance Sheet.

 

The Company has no significant concentration of credit risk.

Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of:

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Capital structure

It is the Company’s policy to maintain a strong capital base, expanding it as appropriate to support projected growth, and to utilise capital efficiently.

In determining an appropriate level of capital, the Directors are conscious of the need to maintain a prudent relationship between the underlying risks of the business and shareholder return, whilst at the same time satisfying the capital requirements of the Financial Conduct Authority (“FCA”) by whom the Company is regulated.

 

IPRISM UNDERWRITING AGENCY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -
Going concern

The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt a going concern basis in preparing the annual financial statements.

 

Further details regarding the adoption of the going concern basis can be found in note 1.2 to the financial statements.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
M Roncalli
Director
21 March 2025
IPRISM UNDERWRITING AGENCY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards 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 these financial statements, the directors are required to:

 

  • select suitable accounting policies and then apply them consistently;

  • make judgements and accounting estimates that are reasonable and prudent;

  • state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

  • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

 

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. They 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 the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

IPRISM UNDERWRITING AGENCY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF IPRISM UNDERWRITING AGENCY LIMITED
- 7 -
Opinion

We have audited the financial statements of iprism Underwriting Agency Limited (the 'company') for the year ended 30 June 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

IPRISM UNDERWRITING AGENCY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF IPRISM UNDERWRITING AGENCY LIMITED
- 8 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

IPRISM UNDERWRITING AGENCY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF IPRISM UNDERWRITING AGENCY LIMITED
- 9 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Daniel Graves BA(Hons) FCA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
21 March 2025
Chartered Accountants
Statutory Auditor
2nd Floor
Regis House
45 King William Street
London
EC4R 9AN
IPRISM UNDERWRITING AGENCY LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
2024
2023
Notes
£
£
Turnover
13,320,859
10,990,060
Cost of sales
(6,738,280)
(5,332,087)
Gross profit
6,582,579
5,657,973
Administrative expenses
(5,695,119)
(4,752,432)
Exceptional items
-
0
1,000,000
Operating profit
2
887,460
1,905,541
Interest receivable and similar income
210,521
35,087
Interest payable and similar expenses
(10,687)
-
0
Profit before taxation
1,087,294
1,940,628
Tax on profit
5
(205,031)
(139,298)
Profit for the financial year
882,263
1,801,330
IPRISM UNDERWRITING AGENCY LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
7
578,596
536,358
Tangible assets
8
78,885
39,229
Investments
9
282,915
92,641
940,396
668,228
Current assets
Debtors
10
4,371,667
3,060,642
Cash at bank and in hand
6,270,706
5,334,695
10,642,373
8,395,337
Creditors: amounts falling due within one year
11
(7,618,461)
(6,030,132)
Net current assets
3,023,912
2,365,205
Total assets less current liabilities
3,964,308
3,033,433
Provisions for liabilities
12
(206,648)
(158,036)
Net assets
3,757,660
2,875,397
Capital and reserves
Called up share capital
14
400,000
400,000
Profit and loss reserves
3,357,660
2,475,397
Total equity
3,757,660
2,875,397

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 21 March 2025 and are signed on its behalf by:
M Roncalli
Director
Company Registration No. 05604278
IPRISM UNDERWRITING AGENCY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
400,000
1,798,206
2,198,206
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
1,801,330
1,801,330
Dividends
-
(1,124,139)
(1,124,139)
Balance at 30 June 2023
400,000
2,475,397
2,875,397
Year ended 30 June 2024:
Profit and total comprehensive income for the year
-
882,263
882,263
Balance at 30 June 2024
400,000
3,357,660
3,757,660
IPRISM UNDERWRITING AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
1
Accounting policies
Company information

iprism Underwriting Agency Limited is a private company limited by shares incorporated in England and Wales. The registered office is 18 Bevis Marks, London, United Kingdom, EC3A 7JB.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The Company meets the definition of a qualifying entity under FRS 102 and has taken advantage of the available financial statement disclosure exemptions. Exemption has been taken in relation to intra-group transactions.

 

These financial statements therefore present information about the company as an individual undertaking and not about its group.

The company has taken the exemption from the requirement to prepare consolidated financial statements on the basis that it’s a small company and group.

1.2
Going concern

The Company's business activities, together with the factors likely to affects its future development, performance and position are set out in the Business Review which forms part of the Strategic Report. The Strategic Report also describes the financial position of the Company; the Company's objectives, policies and processes for managing its capital; its financial risk management objectives, details of its financial instruments and hedging activities and its exposure to credit risk and liquidity risk.true

 

The Directors have prepared detailed cash flow and profit projections to March 2025 and consider the going concern basis of preparation of the financial statements to be appropriate. This assessment is based on the fact that the Company is trading profitably and is generating cash on a consistent basis.

 

As a consequence of these factors and other evidence available to the Directors in respect of the Company's trading prospects, the Directors are satisfied that the Company has sufficient resources to meet its liabilities as they fall due for a period of at least twelve months from the date of signing of these financial statements. Accordingly, the financial statements are prepared on a going concern basis and do not include any adjustments which would be necessary if this basis of preparation was inappropriate.

IPRISM UNDERWRITING AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
1.3
Turnover

Turnover represents gross commissions, policy fees and marketing brokerage arising from the sale of insurance policies. Gross commission income comprises both the commission retained by the Company (i.e. its retained share of the policy premium) and that paid away to brokers for introducing business.

 

Commission paid away to brokers is included as part of turnover on the basis that:

 

Income relating to insurance broking is brought into account in full at the policy inception date. Such income is adjusted to fully recognise anticipated policy cancellations arising from both mid-term adjustments and policies not taken up.

 

Where there is an expectation of future servicing requirements, a proportionate element of income relating to the policy is deferred to cover the associated contractual obligations.

 

Alterations in brokerage arising from additional premiums and other adjustments are taken into account as and when they occur.

 

Fees and other income receivable are recognised in the period to which they relate.

1.4
Intangible fixed assets

Software expenditure and website creation

An internally generated intangible asset arising from the company’s software development and website creation is recognised only if all the following conditions are met:

 

Assets resulting from the purchase of both software and website creation costs have been initially measured at cost.

 

Software and website creation costs are amortised on a straight-line basis over their estimated useful life, which is typically three to five financial years. These amortisation costs are included within net operating expenses in the Income Statement.

 

Where no internally-generated asset can be recognised, development expenditure is recognised as an expense in the period in which it is incurred.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Office furniture
25% per annum
IT equipment
33% per annum
IPRISM UNDERWRITING AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -

The carrying values of tangible assets are reviewed for impairment if events or changes in circumstance indicate that the carrying value may not be recoverable, and are written down immediately to their recoverable amount. Useful lives and residual values are renewed annually and where adjustments are required, these are made prospectively.

 

A tangible fixed asset is derecognised on disposal or when no future economic benefits are expected to arise from continued use of the asset. Any gain or loss arising on the derecognition of the asset is included in the Statement of Comprehensive Income in the period of derecognition.

1.6
Fixed asset investments

Investments in subsidiary undertakings are stated at cost less provision for any impairment in value.

 

Impairment review of investments

The Company assesses at each balance sheet date whether investments in subsidiary undertakings are impaired based on events or changes in circumstance which may indicate that the carrying value may not be recoverable.

 

If there is objective evidence that an impairment loss on investments in subsidiary undertakings has been incurred, the amount of the loss is measured as the difference between the asset's carrying amount and its recoverable amount, which is the higher of an asset's net realisable value less disposal costs, and its value in use. The carrying amount of the investment is reduced through a provision account and any impairment losses are recognised in the Statement of Comprehensive Income.

1.7
Interest bearing loans and borrowings

Obligations for loans and borrowings are recognised when the Company becomes party to the related contracts and are measured initially at fair value less directly attributable transaction costs. After initial recognition, loans and borrowings are subsequently measured at amortised cost using the effective interest rate method.

 

Gains and losses on the repurchase, settlement or cancellation of liabilities are recognised in finance costs (net).

1.8
Cash and cash equivalents

Cash and cash equivalents comprise cash in hand, demand deposits and other short-term highly-liquid investments that are readily convertible to known amounts of cash and are subjected to insignificant risk of changes in value.

 

 

IPRISM UNDERWRITING AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

 

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

 

Debt instruments, like loans and other accounts receivable and payable, are initially measured at the present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year (typically trade payables or receivables) are measured, initially and subsequently, at the undiscounted amount of the cash, or other consideration, expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an outright short-term loan not at the market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payment discounted at a market rate of interest for a similar debt instrument.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

 

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

 

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

 

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

IPRISM UNDERWRITING AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial assets & liabilities

A financial asset or liability is derecognised when the contract that gives rise to it is settled, sold, cancelled or otherwise expires.

 

Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, such that the difference in the respective carrying amounts, together with any costs or fees incurred, is recognised in the Statement of Comprehensive Income.

1.10
Taxation

The tax expense represents the sum of the tax currently payable / or (recoverable) and deferred tax.

Current tax

The Company's liability for current tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 

The tax currently payable (or recoverable) is based on the taxable profit (or loss) for the year. Taxable profit differs from net profit as reported in the financial statements because it excludes items of income or expenditure that are taxable or deductible in other years and it further excludes items that are never taxable or deductible.

 

The tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income.

 

Current tax assets and liabilities are offset only when there is a legally enforceable right to set off the amounts and the company intends to either settle on a net basis or to realise the asset and settle the liability simultaneously.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method.

 

Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is more likely than not that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. Timing differences arise from the inclusion of items of income and expenditure in taxation computation in periods different from those in which they are included in the financial statements.

 

Deferred taxation is recognised in full on all timing differences that have originated but not reversed at the balance sheet date which result in an obligation at the balance sheet date to pay more tax in the future, or a right to pay less tax in the future, at rates expected to apply when they reverse based on current tax rates and law. Deferred tax assets and liabilities are not discounted.

IPRISM UNDERWRITING AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -

Deferred tax (continued)

Unrelieved tax losses and other deferred tax assets are reviewed at each balance sheet date and recognised only to the extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

 

Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted and that are expected to apply in the period when the liability is settled or the asset is realised.

 

Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

 

Deferred tax assets and liabilities are offset when there is a legally enforceable right to sett of current tax liabilities against current tax assets and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

1.11
Retirement benefits

Pension costs payable in the year in respect of contributions to Personal Pension plan arrangements of certain employees, together with employer contributions to the Company's stakeholder pension arrangements, are charged to the profit and loss account. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

1.12
Leases

Leases taken by the Company are individually assessed as to whether they are finance leases or operating leases. Leases where the lessor retains substantially all the risks and rewards of ownership of the asset are classified as operating leases.

 

Rental costs under operating leases are charged to the Statement of Comprehensive Income in the period to which they relate.

1.13

Insurance broking debtors and creditors

The Company acts as an agent in the broking of insurable risks of policyholders and is not liable, as a principal, for premiums due to underwriters or for claims payable to policyholders. Notwithstanding the Company's legal relationship with policyholders and underwriters, the Company has followed generally accepted accounting practice for insurance intermediaries and discloses debtors, creditors and cash balances relating to insurance business as assets and liabilities of the Company itself, consistent with the commercial substance of the underlying transactions.

1.14

Expenses

Expenses are recognised on an accruals basis.

2
Operating profit
2024
2023
£
£
Depreciation of owned tangible fixed assets
48,505
34,254
Amortisation of intangible assets
305,246
294,163
Loss on disposal of intangible assets
7,734
7,137
Loss on disposal of tangible assets
-
-
Operating lease charges
407,725
392,721
IPRISM UNDERWRITING AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Total
57
45

 

4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
61,762
50,401
For other services
Preparation of financial statements and taxation compliance services
8,880
8,340

The company bore the audit fees for its intermediary and ultimate parent company of £4,500 and £7,500 respectively.

5
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
130,966
41,173
Adjustments in respect of prior periods
47,666
70,626
Total current tax
178,632
111,799
Deferred tax
Origination and reversal of timing differences
26,399
27,499
Total tax charge
205,031
139,298

The main rate of corporation tax is 25% for the financial year beginning 1 April 2024 (previously 25% in the financial year beginning 1 April 2023). The effective tax rate in financial year 2023 was 20.5%.

IPRISM UNDERWRITING AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
5
Taxation
(Continued)
- 20 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
1,087,294
1,940,628
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
271,824
397,829
Tax effect of expenses that are not deductible in determining taxable profit
47,899
23,037
Tax effect of income not taxable in determining taxable profit
(52,630)
(212,193)
Adjustments in respect of prior years
47,666
70,626
Group relief
(210,341)
(153,718)
Permanent capital allowances in excess of depreciation
23,015
(20,442)
Deferred tax charge
26,399
27,499
Other items
51,199
6,660
Taxation charge for the year
205,031
139,298
6
Pension arrangements

The Company contributes to defined contribution pension schemes on behalf of eligible employees. The assets of the scheme are held separately from those of the Company in independently administered funds. The pension cost charge represents contributions payable by the Company in the year ended 30 June 2024 and amounted to £203,215 (2023: £157,561). Contributions totalling £24,591 (2023: £18,366) were payable at 30 June 2024 and are included within other creditors.

IPRISM UNDERWRITING AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
7
Intangible fixed assets
Software
£
Cost
At 1 July 2023
1,401,111
Additions
355,218
Disposals and write-off
(76,550)
At 30 June 2024
1,679,779
Amortisation and impairment
At 1 July 2023
864,753
Amortisation charged for the year
305,246
Disposals and scrappage
(68,816)
At 30 June 2024
1,101,183
Carrying amount
At 30 June 2024
578,596
At 30 June 2023
536,358
8
Tangible fixed assets
Office furniture
IT equipment
Total
£
£
£
Cost
At 1 July 2023
24,790
280,229
305,019
Additions
1,427
86,734
88,161
At 30 June 2024
26,217
366,963
393,180
Depreciation and impairment
At 1 July 2023
20,213
245,577
265,790
Depreciation charged in the year
3,700
44,805
48,505
At 30 June 2024
23,913
290,382
314,295
Carrying amount
At 30 June 2024
2,304
76,581
78,885
At 30 June 2023
4,577
34,652
39,229
9
Fixed asset investments
2024
2023
£
£
Other investments other than loans
282,915
92,641
IPRISM UNDERWRITING AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
9
Fixed asset investments
(Continued)
- 22 -

On 08 September 2023, the Company acquired 100% of the issued share capital of SK Underwriting Limited (03841676) registration number - England and Wales) which is a trading entity.

At 30 June 2024, the Company owned the whole of the issued share capital of the following companies, which are trading entities:

 

At 30 June 2024, the Company owned the whole of the issued share capital of the following companies, which are dormant and have been dormant since incorporation:

 

Separate financial statements are prepared for these companies and are filed with Companies House. Each of these companies has an issued share capital of £1 and their office addresses are 18 Bevis Marks, London, England, EC3A 7JB.

Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 July 2023
92,641
Additions
190,274
At 30 June 2024
282,915
Carrying amount
At 30 June 2024
282,915
At 30 June 2023
92,641
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,482,807
2,684,074
Corporation tax recoverable
-
0
2,771
Amounts owed by group undertakings
682,030
222,758
Other debtors
206,830
151,039
4,371,667
3,060,642
IPRISM UNDERWRITING AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
11
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
6,534,912
5,111,980
Amounts owed to group undertakings
129,026
72,613
Corporation tax
127,448
-
0
Other taxation and social security
96,348
69,725
Other creditors
730,727
775,814
7,618,461
6,030,132
12
Provisions for liabilities
2024
2023
£
£
Provision for policy cancellations
82,510
60,297
Deferred tax liabilities
13
124,138
97,739
206,648
158,036
Movements on provisions apart from deferred tax liabilities:
Provision for policy cancellations
£
At 1 July 2023
60,297
Reversal of provision
22,213
At 30 June 2024
82,510
13
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Excess of book depreciation over capital allowances
130,286
102,331
Pensions
(6,148)
(4,592)
124,138
97,739
IPRISM UNDERWRITING AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
13
Deferred taxation
(Continued)
- 24 -
2024
Movements in the year:
£
Liability at 1 July 2023
97,739
Charge to profit or loss
26,399
Liability at 30 June 2024
124,138

The deferred tax liability has been measured at the effective rate of tax 25% (2023: 25%).

14
Called up share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
40,000,000 Ordinary shares of 1p each
400,000
400,000
400,000
400,000

 

15
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2024
2023
£
£
Within one year
76,800
451,200
Between two and five years
-
0
76,800
76,800
528,000
16
Financial commitments, guarantees and contingent liabilities

The company has provided a floating charge over its assets as security for a loan facility granted to it's parent, iprism Holdings Limtied.

17
Events after the reporting date

On 20 October 2024, iprism Underwriting Agency Limited declared a final dividend of £878,000 in respect of the year ending 30 June 2024.

 

On 08 July 2024, iprism Underwriting Agency Limited entered into a new lease agreement, containing non-cancelable commitments, for it's office premise.

IPRISM UNDERWRITING AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
18
Related party transactions
Remuneration of key management personnel
2024
2023
£
£
Aggregate compensation
976,451
563,596
Other information

As the Company is a wholly owned subsidiary of Eagle 2018 Limited, advantage has been taken of the

exemption given by FRS 102.33 Related Party Disclosures not to disclose transactions with it and any other wholly owned group entities in these financial statements.

 

Metier Trading Limtied is a wholly owned subsidiary of the Company, advantage has been taken of the exemption given by FRS 102.33 Related Party Disclosures not to disclose transactions with it and any other wholly owned group entities in these financial statements.

 

S K Underwriting Limtied is a wholly owned subsidiary of the Company, advantage has been taken of the exemption given by FRS 102.33 Related Party Disclosures not to disclose transactions with it and any other wholly owned group entities in these financial statements.

19
Parent company

The immediate parent undertaking of the company is Eagle 2018 Limited (registration number 11732511 - England and Wales). Their registered office address is 18 Bevis Marks, London, England, EC3A 7JB.

2024-06-302023-07-01falsefalsefalseCCH SoftwareCCH Accounts Production 2024.310R BosamiaG JohnsonI LloydM RoncalliB HarmerA WoodhamsMr A K Saunders056042782023-07-012024-06-3005604278bus:Director12023-07-012024-06-3005604278bus:Director22023-07-012024-06-3005604278bus:Director32023-07-012024-06-3005604278bus:Director42023-07-012024-06-3005604278bus:Director52023-07-012024-06-3005604278bus:Director62023-07-012024-06-3005604278bus:Director72023-07-012024-06-3005604278bus:RegisteredOffice2023-07-012024-06-30056042782024-06-30056042782022-07-012023-06-300560427812023-07-012024-06-300560427812022-07-012023-06-3005604278core:RetainedEarningsAccumulatedLosses2022-07-012023-06-3005604278core:RetainedEarningsAccumulatedLosses2023-07-012024-06-30056042782023-06-3005604278core:ComputerSoftware2024-06-3005604278core:ComputerSoftware2023-06-3005604278core:FurnitureFittings2024-06-3005604278core:ComputerEquipment2024-06-3005604278core:FurnitureFittings2023-06-3005604278core:ComputerEquipment2023-06-3005604278core:CurrentFinancialInstrumentscore:WithinOneYear2024-06-3005604278core:CurrentFinancialInstrumentscore:WithinOneYear2023-06-3005604278core:CurrentFinancialInstruments2024-06-3005604278core:CurrentFinancialInstruments2023-06-3005604278core:ShareCapital2024-06-3005604278core:ShareCapital2023-06-3005604278core:RetainedEarningsAccumulatedLosses2024-06-3005604278core:RetainedEarningsAccumulatedLosses2023-06-3005604278core:ShareCapital2022-06-3005604278core:RetainedEarningsAccumulatedLosses2022-06-3005604278core:ShareCapitalOrdinaryShares2024-06-3005604278core:ShareCapitalOrdinaryShares2023-06-3005604278core:FurnitureFittings2023-07-012024-06-3005604278core:ComputerEquipment2023-07-012024-06-3005604278core:UKTax2023-07-012024-06-3005604278core:UKTax2022-07-012023-06-300560427822023-07-012024-06-300560427822022-07-012023-06-3005604278core:ComputerSoftware2023-06-3005604278core:ComputerSoftwarecore:ExternallyAcquiredIntangibleAssets2023-07-012024-06-3005604278core:ComputerSoftware2023-07-012024-06-3005604278core:FurnitureFittings2023-06-3005604278core:ComputerEquipment2023-06-30056042782023-06-3005604278core:WithinOneYear2024-06-3005604278core:WithinOneYear2023-06-3005604278core:BetweenTwoFiveYears2024-06-3005604278core:BetweenTwoFiveYears2023-06-3005604278bus:PrivateLimitedCompanyLtd2023-07-012024-06-3005604278bus:FRS1022023-07-012024-06-3005604278bus:Audited2023-07-012024-06-3005604278bus:FullAccounts2023-07-012024-06-30xbrli:purexbrli:sharesiso4217:GBP