The members present their annual report and audited financial statements for the year ended 31 December 2024.
The principal activity of the limited liability partnership continued to be that of an insurance claims handler.
The turnover has decreased marginally from £315,517 to £315,364 in the current year, but has remained relatively static. The administrative expenses have reduced from £322,830 to £268,246 due to reduced staff costs.
Principal risks and uncertainties
The principal risks and uncertainties of the LLP are managed on a Group basis. They include the following risks set out below:
Regulatory environment
Although not directly regulated by the Financial Conduct Authority, Accident & Health Claims Services LLP (AHC) adheres to a strong framework of compliance provided by internal staff and independent external consultants. The Members believe that by ensuring the LLP is compliant within this framework through robust risk management and compliance monitoring and audit processes these external risk factors are minimised. The Members continue to look for ways to enhance the compliance processes.
Key performance indicators ("KPIs")
The Members measure the performance of the LLP using a variety of KPIs. Aside from Turnover and Profit for the financial year, where appropriate, the Members monitor non-financial KPIs including service standards, complaints, declinatures and claims that have not been pursued. The regular monitoring of these KPIs aids decision making. Profit for the financial year before members' remuneration and profit share, which is considered a KPI, amounted to £69,997, up from a loss of £4,704 in 2023. Net current assets of the LLP totalled £573,960 (2023: £509,393).
Future developments
The business continues to service AHU business and is in the very early stages of speaking to Ark about administering other claims.
Financial risk management
AHC is exposed to a range of financial risks, in particular the key financial risk is that the proceeds from financial assets are not sufficient to fund the obligations.
The components of this financial risk are market risk, credit risk and liquidity risk.
Market risk
Market risk arises where the value of assets and liabilities change as a result of movements in interest rates or foreign exchange rates. The assets are denominated in Sterling. The related currency risk is closely monitored by management.
Credit risk
Credit risk arises where counterparties fail to meet their financial obligations in full as they fall due. The primary source of credit risk for the Company are fees due from Ark.
Liquidity risk
Liquidity risk is the risk that cash may not be available to pay obligations when due at a reasonable cost. This risk is mitigated by regular reviews of aged debtors and creditors.
The profit for the year before members' remuneration and profit shares was £69,997 (2023 - £4,704 loss).
The designated members who held office during the year and up to the date of signature of the financial statements were as follows:
Members interests
The policies regarding the allocation of profits to members, interim drawings and the subscription and redemption of members' capital are disclosed in the accounting policies note.
The LLP made no political donations or incurred any political expenditure during the year (2023: £Nil).
The LLP has an elective resolution in place under Section 487(2) of the Companies Act 2006 to dispense with the obligation to appoint auditors annually. The LLP appointed PricewaterhouseCoopers LLP as independent auditors for the year ending 31 December 2024 and have reappointed them for the next year.
The members are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulation.
Company law, as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 (the “Regulations”), requires the members to prepare financial statements for each financial year. Under that law the members 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, as applied to limited liability partnerships, members 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 LLP and of the profit or loss of the LLP for that period. In preparing the financial statements, the members 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, subject to any material departures disclosed and explained in the financial statements;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the LLP will continue in business.
The members are responsible for safeguarding the assets of the LLP and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The members are also responsible for keeping adequate accounting records that are sufficient to show and explain the LLP’s transactions and disclose with reasonable accuracy at any time the financial position of the LLP and enable them to ensure that the financial statements comply with the Companies Act 2006.
In our opinion, Accident & Health Claims Services LLP's financial statements:
give a true and fair view of the state of the LLP's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law); and
have been prepared in accordance with the requirements of the Companies Act 2006 as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.
Basis for opinion
Conclusions relating to going concern
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 LLP'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.
In auditing the financial statements, we have concluded that the members' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the LLP's ability to continue as a going concern.
Our responsibilities and the responsibilities of the members with respect to going concern are described in the relevant sections of this report.
Reporting on other information
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the members of the partnership as a body in accordance with the Companies Act 2006 as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 as applicable to limited liability partnerships we are required to report to you if, in our opinion:
we have not obtained all the information and explanations we require for our audit; or
adequate accounting records have not been kept by the LLP, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns.
We have no exceptions to report arising from this responsibility.
Entitlement to exemptions
Under the Companies Act 2006 as applicable to limited liability partnerships we are required to report to you if, in our opinion, the members were not entitled to: prepare financial statements in accordance with the small limited liability partnerships regime. We have no exceptions to report arising from this responsibility.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Accident & Health Claims Services LLP is a limited liability partnership incorporated in England and Wales. The registered office is Chapel House, Thremhall Park, Start Hill, Bishop's Stortford, CM22 7WE.
The limited liability partnership's principal activities are disclosed in the Members' Report.
These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2021, together 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.
The LLP is considered to be a qualifying entity (for the purposes of this FRS) and has applied the exemptions available under FRS 102 in respect of the requirement to produce a Statement of Cash Flows. The entity has been consolidated into the consolidated financial statements of Ark Insurance Holdings Limited (AIHL) and AIHL has been consolidated into the consolidated financial statements of White Mountains Insurance Group Limited (WTM). The consolidated financial statements of WTM are available for public inspection on the WTM website at https://investor.whitemountains.com
The financial statements are prepared in sterling, which is the functional currency of the limited liability partnership. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the members have a reasonable expectation that the limited liability partnership has adequate resources to continue in operational existence for the foreseeable future. Thus the members continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
In accordance with FRS 102 section 23 income is recognised to the extent that the LLP has obtained the right to consideration through its performance.
The LLP generates income from claims handling. The LLP charges fixed fees to cover all claims for a fixed period, these fees are apportioned to the period to which they relate.
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:
The LLP has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102 to all of its financial instruments.
Financial instruments are recognised in the LLP's balance sheet when the LLP becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statement, 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.
Basic Financial Assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. If an asset is impaired the impairment loss is recognised in profit or loss. If there is a decrease in the impairment loss, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the LLP transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic Financial Liabilities
Basic financial liabilities are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Financial liabilities are derecognised when the LLP's contractual obligations expire or are discharged or cancelled.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Capital
Members are not required to subscribe capital to the LLP. Any subscriptions or contributions made by members are discretionary but repayment by the LLP is not discretionary. These are disclosed in the accounts as Liabilities - Loans and other debts due from members.
Capital profits are allocated equally between the members.
Allocation of profits and drawings
Profits and losses are allocated equally between the members.
Drawings will be made on a discretionary basis when profits and cash are available.
The average number of persons (excluding members) employed by the partnership during the year was:
Their aggregate remuneration comprised:
In addition to the LLP's own assets and liabilities, the LLP also holds the following insurer claims floats which are excluded from the balance sheet:
Accident & Health Underwriting Limited is a designated member of the LLP.
During the year ended 31 December 2024, Accident & Health Underwriting Limited charged the LLP a total of £78,606 (2023: £69,154) for various costs.
As at 31 December 2024, the LLP owed Accident & Health Underwriting Limited £32,190 (2023: £34,866).
This loan is repayable on demand.
Under FRS 102 section 33.6, key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director of the entity. The key management personnel relating to the LLP are remunerated by a designated member company, Accident & Health Underwriting Limited, and disclosed as such in the member's Financial Statements.