Company registration number 03938590 (England and Wales)
ACCIDENT & HEALTH UNDERWRITING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
ACCIDENT & HEALTH UNDERWRITING LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 19
ACCIDENT & HEALTH UNDERWRITING LIMITED
COMPANY INFORMATION
Directors
Mr J Burnham
Mr C Boyd
Mr N Brothers
Mr D R Miller
Mr J Bostwick
K M Mazalova
(Appointed 1 January 2025)
Company number
03938590
Registered office
Chapel House
Thremhall Park
Start Hill
Bishop's Stortford
CM22 7WE
Independent auditors
PricewaterhouseCoopers LLP
7 More London Riverside
London
SE1 2RT
Bankers
Lloyds Bank
20 North Street
Bishop's Stortford
Hertfordshire
CM23 2LN
ACCIDENT & HEALTH UNDERWRITING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

Review of the business

The turnover has decreased marginally from £2,268,553 to £2,200,928 in the current year, but has remained relatively static. The administrative expenses have reduced from £1,672,512 to £1,606,748 due to reduced staff costs.

 

Principal risks and uncertainties

 

The principal risks and uncertainties of the Company are managed on a Group basis. They include the following risks set out below:

 

Regulatory environment

 

Accident & Health Underwriting Limited (AHU) operates in an environment regulated by the Financial Conduct Authority and as such adheres to the regulated environment with a strong framework of compliance provided by internal staff and independent external consultants. The Directors believe that by ensuring the Company is compliant within this framework through robust risk management and compliance monitoring and audit processes these external risk factors are minimised. The Directors continue to look for ways to enhance the compliance processes and meet regulatory changes.

 

Key performance indicators ("KPIs")

 

The Directors measure the performance of the Company using a variety of KPIs. Aside from Turnover and Profit for the financial year, where appropriate, the Directors monitor non-financial KPIs including retention rates and broker relationships. The regular monitoring of these KPIs aids decision making. The profit after tax for the year, which is considered a KPI, amounted to £544,794, up from £473,596 in 2023. Net assets of the Company totalled £5,581,752 (2023: £5,036,959).

Future developments

The business continues to specialise and adapt to world events.

Financial risk management

AHU 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 and where appropriate action taken to eliminate any exchange rate risk to the Company.

 

Credit risk

Credit risk arises where counterparties fail to meet their financial obligations in full as they fall due.

The primary sources of credit risk for the Company are:

- amounts due from insurance contract holders:

- amounts due from insurance intermediaries;

- counterparty risk of cash and cash equivalents

The Company manages the levels of credit risk it accepts by continued monitoring a single counterparty, or groups of counterparty. The exposure to individual counterparties is also managed by other mechanisms, such as the right to offset where counterparties have both payables and receivables balances of the Company and through credit review meetings.

 

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.

ACCIDENT & HEALTH UNDERWRITING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

Section 172(1) statement

This section of the report describes how the Directors have had regard to the matters set out in Section 172(1) (a) to (f) and forms the Directors' statement required under Section 414CZA of the Companies Act 2006. The Directors are required to act in a way to promote the success of the Company for the benefits of its members as a whole and in doing so consider the following matters:

 

Long term decision making

The Directors consider that their commitment to longer term decision making, and planning is disclosed appropriately throughout the rest of this strategic report in line with the results of the business.

 

Interests of company employees

The Company has a small number of employees and a flat organisational structure which always allows immediate and direct access for all employees to senior management. There is regular communication with staff and the directors are always open to questions.

 

Business relationships with suppliers, customers, and others

Time is taken to know the people we work with and work for - our customer base. These relationships are key parts of the Company's business and are managed through an extensive programme of formal and informal contact including monitoring of legal, contractual, and regulatory obligations. All complaints are monitored and treated with appropriate care and attention.

 

Impact on the environment

Our plans consider the impact of the Company's operations on the community, the environment, and wider societal responsibilities. The Board considers that the Company has little impact on environmental issues and is committed to a responsible approach to the impact via a number of initiatives such as recycling, saving on print and paper and waste.

On behalf of the board

Mr J Bostwick
Director
31 July 2025
ACCIDENT & HEALTH UNDERWRITING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

The directors present their annual report and audited financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the company continued to be that of insurance brokers.

Results and dividends

No dividends will be distributed for the year ended 31 December 2024 (2023: £Nil).

Directors

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

Mr J Burnham
Mr C Boyd
Mr N Brothers
Mr D R Miller
Mr J Bostwick
K M Mazalova
(Appointed 1 January 2025)

The directors holding office at 31 December 2024 did not hold any beneficial interest in the issued share capital of the company at 1 January 2024 or 31 December 2024.

The company maintains insurance policies on behalf of all the directors against liability arising from negligence, breach of duty and breach of trust in relation to the company.

Political donations

Neither the company nor any of its subsidiaries made any political donations or incurred any political expenditure during the year.

Statement of disclosure to auditors
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 auditors are 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 auditors are aware of that information.
Independent auditors

The company 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 company appointed PricewaterhouseCoopers LLP as independent auditors for the year ending 31 December 2024 and have reappointed them for the next year.

Small companies exemption
The Directors' Report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Mr J Bostwick
Director
31 July 2025
ACCIDENT & HEALTH UNDERWRITING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulation.

 

Company law 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’, and applicable law).

 

Under company law, 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:

 

 

The directors are 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 also 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.

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:

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.

ACCIDENT & HEALTH UNDERWRITING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ACCIDENT & HEALTH UNDERWRITING LIMITED
- 5 -
Opinion

In our opinion, Accident & Health Underwriting Limited’s financial statements:

 

We have audited the financial statements, included within the Annual Report and Financial Statements (the “Annual Report”), which comprise: the Balance sheet as at 31 December 2024; the Profit and loss account and the Statement of changes in equity for the year then ended; and the notes to the financial statements, which include a description of the significant accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

 

Independence

We remained independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

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 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.

 

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.

 

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the company's ability to continue as a going concern.

 

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

ACCIDENT & HEALTH UNDERWRITING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ACCIDENT & HEALTH UNDERWRITING LIMITED (CONTINUED)
- 6 -

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.

 

In connection with our audit of the financial statements, 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 audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. 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 based on these responsibilities.

 

With respect to the Strategic report and Directors' Report, we also considered whether the disclosures required by the UK Companies Act 2006 have been included.

 

Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters as described below.

 

Strategic report and Directors' Report

In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic report and Directors' Report for the year ended 31 December 2024 is consistent with the financial statements and has been prepared in accordance with applicable legal requirements.

 

In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we did not identify any material misstatements in the Strategic report and Directors' Report.

Responsibilities for the financial statements and the audit
Responsibilities of the directors for the financial statements

As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The directors are also responsible for such internal control as they 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.

ACCIDENT & HEALTH UNDERWRITING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ACCIDENT & HEALTH UNDERWRITING LIMITED (CONTINUED)
- 7 -
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 auditors’ 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.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK and European regulatory principles, such as those governed by the Council of Lloyd's and the Financial Conduct Authority, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to revenue recognition and journal entries. Audit procedures performed by the engagement team included:

 

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

 

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 company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 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.

ACCIDENT & HEALTH UNDERWRITING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ACCIDENT & HEALTH UNDERWRITING LIMITED (CONTINUED)
- 8 -

Other required reporting

 

Companies Act 2006 exception reporting

Under the Companies Act 2006 we are required to report to you if, in our opinion:

 

 

We have no exceptions to report arising from this responsibility.

 

Entitlement to exemptions

Under the Companies Act 2006 we are required to report to you if, in our opinion, the directors were not entitled to: prepare financial statements in accordance with the small companies regime; and take advantage of the small companies exemption from preparing a the Directors' Report. We have no exceptions to report arising from this responsibility.

Alex Marjoribanks (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
31 July 2025
ACCIDENT & HEALTH UNDERWRITING LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Note
£
£
Turnover
2
2,200,928
2,268,553
Administrative expenses
(1,606,748)
(1,672,512)
Other operating income/(expenses)
34,999
(2,352)
Operating profit
629,179
593,689
Interest receivable and similar income
103,540
27,188
Profit before taxation
732,719
620,877
Tax on profit
5
(187,925)
(147,281)
Profit for the financial year
544,794
473,596

There are no items of other comprehensive income in any of the years for which the financial statements are presented. Accordingly, no statement of total other comprehensive income is required.

ACCIDENT & HEALTH UNDERWRITING LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Note
£
£
£
£
Fixed assets
Tangible assets
7
25,582
3,753
Current assets
Debtors
8
3,007,319
2,073,309
Cash at bank and in hand
2,699,535
3,080,542
5,706,854
5,153,851
Creditors: amounts falling due within one year
9
(147,566)
(119,816)
Net current assets
5,559,288
5,034,035
Total assets less current liabilities
5,584,870
5,037,788
Provisions for liabilities
(3,118)
(829)
Net assets
5,581,752
5,036,959
Capital and reserves
Called up share capital
11
37,500
37,500
Capital redemption reserve
12,500
12,500
Profit and loss account
5,531,752
4,986,959
Total equity
5,581,752
5,036,959

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 31 July 2025 and are signed on its behalf by:
Mr J  Bostwick
Director
Company registration number 03938590 (England and Wales)
ACCIDENT & HEALTH UNDERWRITING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Capital redemption reserve
Profit ad loss account
Total
£
£
£
£
Balance at 1 January 2023
37,500
12,500
4,513,363
4,563,363
Year ended 31 December 2023:
Profit for the financial year
-
-
473,596
473,596
Balance at 31 December 2023
37,500
12,500
4,986,959
5,036,959
Year ended 31 December 2024:
Profit for the financial year
-
-
544,794
544,794
Balance at 31 December 2024
37,500
12,500
5,531,753
5,581,753
ACCIDENT & HEALTH UNDERWRITING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information

Accident & Health Underwriting Limited is a private company limited by shares incorporated in England and Wales. The registered office is Chapel House Thremhall Park, Start Hill, Bishop's Stortford, CM22 7WE.

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 company 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 company 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 company. 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.

1.2
Turnover

Turnover comprises the following:

- Brokerage fees which are recognised in the accounts when work on a policy is deemed to have been completed as this is the point at which the company is entitled to this income. For this reason no adjustments are made for accrued or deferred income regardless of the period a policy covers.

- Profit commissions which are recognised when they are earned.

- Other commissions which are recognised when they are received.

1.3
Tangible 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:

Leasehold land and buildings
20% on cost
Plant and machinery
20% and 33% on cost
ACCIDENT & HEALTH UNDERWRITING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.4
Financial instruments

The company 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 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 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 company 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, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 company's contractual obligations expire or are discharged or cancelled.

1.5
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.6
Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

 

Current or deferred taxation assets and liabilities are not discounted.

ACCIDENT & HEALTH UNDERWRITING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates 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 profit and loss account, 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 the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.7
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.8
Foreign exchange

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.

1.9

Exclusion of insurer debtors

The company collects insurance premiums on behalf of underwriters and then pays them over the net premium after deducting the company's own commission. These monies are collected and then paid out of designated bank accounts. The balance sheet excludes these bank accounts and the liability due to the underwriters. Trade debtors are commission debtors only.

1.10

Judgements and key estimates

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

ACCIDENT & HEALTH UNDERWRITING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
2
Turnover

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Brokerage income
1,479,591
1,568,177
Profit commission
721,337
700,376
2,200,928
2,268,553
3
Employees

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

2024
2023
Number
Number
Total
13
14
4
Directors' remuneration
2024
2023
£
£
Remuneration paid to directors
731,598
767,038

Emoluments of the highest paid director was £251,708 (2023: £250,425). The total contributions to the company pension scheme made on behalf of all directors was £39,600 (2023: £39,600).

5
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current year
185,636
147,042
Deferred tax
Timing differences
2,289
239
Total tax charge
187,925
147,281

A change to the main UK corporation tax rate, announced in the Budget on 3 March 2021, increased the main rate of corporation tax from 19% to 25%. This has resulted in an increase to the company's tax charge in the current period.

ACCIDENT & HEALTH UNDERWRITING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
5
Taxation
(Continued)
- 16 -

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
732,719
620,877
Expected tax charge based on the standard rate of corporation tax in the UK of 25% (23.5%)
183,180
146,030
Tax effect of expenses that are not deductible in determining taxable profit
(3,795)
1,335
Tax effect of utilisation of tax losses not previously recognised
(935)
-
Permanent capital allowances in excess of depreciation
(2,066)
(323)
Deferred tax - accelerated capital allowances
2,289
239
Share of associates profits
9,252
-
Taxation charge for the year
187,925
147,281
Taxation charge in the financial statements
187,925
147,281
6
Administrative expenses

The following expenditure is included within administrative expenses:

 

2024

2023

 

£

£

Wages and salaries costs

1,080,568

1,165,106

Social security costs

127,544

135,816

Pension costs

46,538

48,609

Property costs

105,413

101,864

 

 

 

Auditors remuneration for services to the Company is as follows:

 

 

 

 

 

2024

2023

 

£

£

Auditor's remuneration

15,908

15,445

 

ACCIDENT & HEALTH UNDERWRITING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
7
Tangible assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2024
2,090
49,154
51,244
Additions
16,014
8,168
24,182
Disposals
(2,090)
(14,707)
(16,797)
At 31 December 2024
16,014
42,615
58,629
Accumulated depreciation
At 1 January 2024
2,090
45,401
47,491
Depreciation charged in the year
801
1,319
2,120
Eliminated in respect of disposals
(2,090)
(14,474)
(16,564)
At 31 December 2024
801
32,246
33,047
Carrying amount
At 31 December 2024
15,213
10,369
25,582
At 31 December 2023
-
0
3,753
3,753

During the year the company moved premises which resulted in the disposal of various tangible fixed assets.

8
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,343,380
1,177,496
Other debtors
1,663,939
895,813
3,007,319
2,073,309

Included in other debtors is a balance for accrued profit commissions of £1,264,941 (2023: £543,604).

9
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
4,923
5,292
Corporation tax
83,410
73,081
Other creditors
59,233
41,443
147,566
119,816
ACCIDENT & HEALTH UNDERWRITING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
10
Creditors: amounts falling due after more than one year

In addition to the company's own assets and liabilities, it also manages the following insurer balances which are excluded from the balance sheet:

 

Restated

2024     2023

£         £

 

IBA Sterling bank balance 375,030 569,157

 

 

 

IBA Foreign Currency bank balance 23,492 64,590

 

 

 

 

IBA bank balance 398,522 633,747

 

Included in the balances above are amounts owed to the company totaling £58,724 (2023: £90,632).

 

The comparative analysis of IBA bank balances has been restated. In the 2023 financial statements these were disclosed as £485,985 and £56,720 for Sterling and Foreign accounts respectively.

 

 

 

ACCIDENT & HEALTH UNDERWRITING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
11
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
12,500
12,500
12,500
12,500
Ordinary C shares of £1 each
12,500
12,500
12,500
12,500
Ordinary D shares of £1 each
12,500
12,500
12,500
12,500
37,500
37,500
37,500
37,500
12
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
71,730
79,200
Between two and five years
286,920
79,200
In over five years
59,775
-
0
418,425
158,400

The costs charged in the year in relation to the operating leases is disclosed in note 6 of the financial statements.

13
Related party transactions

The company is a designated member of Accident & Health Claims Services LLP. As at the 31 December 2024 the partnership owed the company £32,190 (2023: £34,866). This balance is repayable on demand.

 

During the year ended 31 December 2024 the company charged the partnership a total of £78,606 (2023: £69,154) for various costs.

 

The remuneration of key management personnel, which includes directors and non-directors, was £821,163 (2023: £860,725). 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.

14
Parent company

The company is a wholly owned subsidiary of White Mountains Insurance Group, Ltd, a company incorporated in Bermuda.

The company is under the control of its ultimate parent company, White Mountains Insurance Group, Ltd, registered at A.S Cooper Building, 26 Reid Street, Hamilton HM 11, Bermuda.

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