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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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SQUARETRADE LIMITED
COMPANY INFORMATION
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SQUARETRADE LIMITED
CONTENTS
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SQUARETRADE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The principal activity of SquareTrade Limited continues to be that of an insurance intermediary business, primarily in respect of mobile phone insurance and consumer electronics.
The principal strategic objective is to increase our market share across Europe by providing support services to the group’s EU entity, SquareTrade Europe Limited, Squaretrade European Services AS and SquareTrade BV. The Company continues to push to grow the business through new partnerships and has continued to be successful in doing so. Since the Company became a member of the Allstate family we have benefited from the support of the Group in many areas. In the current year revenue from insurance policies decreased from £52.5m in 2023 to £45.1m in 2024. This is following the changes implemented in 2020, whereby all new EU/EEA policies are now sold through the group entity, SquareTrade Europe Limited. Whilst the group continues to grow by expanding its customer base through both existing and new distribution channels, SquareTrade Limited benefits from this growth by receiving increased service fees for support activities provided to the group. These inter-company fees have increased from £23.7m to £31.2m during the financial year, contributing to the overall stable total revenue of £76.3m compared to the previous year (2023: £76.2m).
The Company’s operations expose it to a variety of financial and non-financial risks. Given the size of the Company, the directors have not delegated the responsibility of monitoring risk management to a sub-committee of the board. The financial and non-financial risk is monitored at a Company-wide level, with the policies set out by the board of directors implemented by the Company’s finance department.
Cash flow and liquidity risk The Company has access to sufficient cash to ensure it has adequate funds available for its operations. The Company uses its cash flows to settle amounts due to suppliers with agreed terms and ensure it maintains a strong inventory balance to meet customer demand. The Company had cash balances of £1,044k (2023 – £3,815k). The directors consider the cash flow risk is at an acceptable level. Foreign currency risk The Company has transactional currency exposures arising from sales and purchases in currencies other than its functional currency. Potential exposures to foreign currency exchange movements are monitored on a regular basis and managed accordingly. The Company has multiple bank accounts held in various foreign currencies in order to mitigate foreign exchange risk down to an acceptable level.
The Company’s key financial performance indicators for the year were as follows:
2024 2023 Change Turnover £76,270k £76,235k 0.01% Operating profit/(loss) £985k £9,073k (89.1)%
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SQUARETRADE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
In accordance with s172 of the Companies Act 2006, the directors of the company act in ways that they consider, in good faith, to be most likely to promote the success of the company for the benefits of its members as a whole. In doing so, the directors have regard, amongst other matters, to:
∙the likely consequences of any decision in the long term,
∙the interests of the company’s employees,
∙the need to foster the company’s business relationships with suppliers, customers and other key stakeholders,
∙the impact of the company’s operations on the community and the environment,
∙the desirability of the company maintaining a reputation for high standards of business conduct, and
∙the need to act fairly between members of the company.
Operational decisions are made with stakeholders in mind, in a structured set of monthly meetings which include the senior leadership of the company. Key topics and decisions from these operational meetings are then brought to the Board Meetings which occur three to four times per year. The company’s values and the Allstate Code of Business Conduct empower employees to make the best decisions in the interest of the company and its stakeholders.
This report was approved by the board on 29 September 2025 and signed on its behalf.
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SQUARETRADE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments 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 to 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 loss for the year, after taxation, amounted to £184 thousand (2023 - profit £5,578 thousand).
The directors who served during the year were:
The Directors of SquareTrade Limited consider that they have acted in good faith to promote the success of the company for the benefits of its members, whilst performing their duties in accordance with s172(1) Companies Act 2006. Our relationships with our employees, suppliers, customers and other stakeholders are essential to achieving our Strategic Objectives outlined in this report and meeting the shared purpose of the AllState Group. Together with the AllState family, we have a strong focus in putting the customer at the centre of all our actions. We regularly engage with new and existing stakeholders to improve business relationships for the benefit of customer value and service. We aim to work as a single team to advance the business and provide employees fulfilling opportunities, personal growth and performance-based awards.
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SQUARETRADE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
There have been no significant events affecting the Company since the year end.
The auditors, FLB Audit LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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SQUARETRADE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SQUARETRADE LIMITED
We have audited the financial statements of SquareTrade Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, 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 Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.
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.
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SQUARETRADE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SQUARETRADE LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
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 or the Directors' report.
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SQUARETRADE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SQUARETRADE LIMITED (CONTINUED)
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:
∙enquiring of management concerning actual and potential litigation and claims;
∙performing analytical procedures to identify any unusual results that may indicate risks of material misstatement due to fraud;
∙reading minutes of meetings;
∙assessing any management override of controls by testing journal entries and other adjustments and
∙reviewing accounting estimates for indications of potential bias; evaluating any transactions that are unusual or outside the normal course of business; and
∙maintaining alert to any fraud risks throughout the audit.
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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
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SQUARETRADE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SQUARETRADE LIMITED (CONTINUED)
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 Auditors' 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.
for and on behalf of
Chartered Accountants and Statutory Auditors
1010 Eskdale Road
Winnersh Triangle
Wokingham
RG41 5TS
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SQUARETRADE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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SQUARETRADE LIMITED
REGISTERED NUMBER: 07165194
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 12 to 28 form part of these financial statements.
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SQUARETRADE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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SQUARETRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
SquareTrade Limited is a limited liability company. The company was incorporated in United Kingdom and is registered in England and Wales. The registered office is C/O Fieldfisher Riverbank House, 2 Swan Lane, London, United Kingdom, EC4R 3TT. The registration number 07165194.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of The Allstate Corporation as at 31 December 2024 and these financial statements may be obtained from 2775 Sanders Road Northbrook IL 60062.
The directors have a reasonable expectation that the Company will be able to operate within the level of available facilities and cash for the foreseeable future and accordingly believe that it is appropriate to prepare the financial statements on a going concern basis. The directors have obtained a letter of support from Squaretrade Inc, the parent company.
The Directors have made appropriate enquiries and considered the business plans which provide financial projections for the foreseeable future. For the purposes of this review, the period considered is 12 months from the balance sheet sign off date. Based on the Group’s forecasts and the ability of Squaretrade Inc. to provide the necessary support, the Directors are satisfied that the Company has adequate resources to continue operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on the going concern basis.
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SQUARETRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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SQUARETRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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SQUARETRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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SQUARETRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Stock The value of replacement stock is calculated using the costs to repair. Replacement stock is then valued at the lower of this value, cost to repair, or its net reliable value less costs to sell. The net realisable value of stock is a judgemental area. Stock provision Stock is reviewed for impairment by management. Management applies a provisioning policy based on a combination of ageing analysis, historical usage trends, current market conditions, and specific identification of items considered at risk. These estimates are inherently uncertain and may change as market conditions evolve. Any significant changes in assumptions could result in a material adjustment to the carrying amount of inventories. Deferred tax asset Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences or unused tax losses can be utilised. Judgement is required to assess the likelihood of future taxable profits arising, based on forecasts and business plans approved by the directors. These forecasts include assumptions about future income, expenditure, and macroeconomic factors. The recognition of deferred tax assets is reviewed at each reporting date and is adjusted to reflect changes in expectations. Where the directors consider that it is not probable that sufficient taxable profits will be available in the foreseeable future, the deferred tax asset is not recognised.
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SQUARETRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Analysis of turnover by country of destination:
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SQUARETRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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SQUARETRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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SQUARETRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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SQUARETRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
11.Taxation (continued)
There were no factors that may affect future tax charges.
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SQUARETRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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SQUARETRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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SQUARETRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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SQUARETRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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SQUARETRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Profit and loss account
The Company is covered under the equity incentive plans of the parent company, The Allstate Corporation. The parent company grants nonqualified stock options, restricted stock units and performance stock awards (“equity awards”) to certain employees and directors of the parent company and its subsidiaries. The Company recognises the fair value of equity awards computed at the award date over the period in which the requisite service is rendered. The Company records compensation expense related to awards under these plans over the vesting period of each grant. The expense is calculated using the straight-line method and is booked over lesser of the 3-year vesting period or the individual’s retirement eligibility date with a minimum of 12 months. The total expense amount is reduced by the annual forfeiture rate for both RSUs and stock options. The estimated forfeiture amounts are true-up monthly in the expense calculations.
Options are granted under the plan with exercise price equal to the closing share price of the parent company’s common stock on the applicable grants date. Options granted to the employees in 2017, 2018, 2019, 2020, 2021 and 2022, 2023 and 2024 vest rateably over a three-year period. Vesting is subject to continued service, except for employees who are retirement eligible and in certain other limited circumstances. Options may be exercised once vested and will expire no later than ten years after the date of grant. Restricted stock unit awards granted in 2022, 2023 and 2024 have a one to three-year rateable vesting, one third on the first, second and third anniversary of the grant date respectively. Restricted stock unit awards granted in 2021, 2020, 2019, 2018 and 2017 vest and unrestrict in one instalment on the day prior to the third anniversary. Employee awards are subject to forfeiture upon termination. Upon termination of employment as a result of death or disability, all restricted stock units vest. Unvested restricted stock units are forfeited following any other type of termination of employment except termination after a change in control
Performance stock awards vest into shares of stock based on achieving established company specific performance goals. Performance stock awards granted prior to 2023 vest into shares of stock on the day prior to the third anniversary of the grant date. Performance stock awards granted on or after February 16, 2023 vest into shares of stock on the third anniversary of the grant date. The numbers of shares earned upon vesting of the performance stock awards is based on the attainment of performance goals for each of the performance periods, subject to continued service, except for employees who are retirement eligible and in certain other limited circumstances.
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SQUARETRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The fair value of each option grants is estimated on the date of grant using binomial lattice model. The parent company uses historical data to estimate option exercise and employee termination within the valuation model. The expected term of options granted is derived from the output of the binomial lattice model and represents the period of time that options granted are expected to be outstanding. The expected volatility of the price of the underlying shares is implied based on traded options and historical volatility of the parent company’s common stock. The expected dividends were based on the current dividend yield of the Company’s stock as of the date of the grant. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The fair value of the restricted stock units is based on the market value of the parent company stock as of the date of the grant. The market value in part reflects the payment of future dividends expected. The fair value of performance stock awards that do not include a market condition is based on the market value of the Company’s stock as of the date of the grant. Starting with the February 2020 award, the fair value of performance stock awards includes a component with market-based condition measured on the grant date using a Monte Carlo simulation model. Market-based condition measures the Company’s total shareholder return (“TSR”) relative to the TSR of peer companies, expressed in terms of the Company’s TSR percentile rank among the peer companies, over a three-calendar-year performance period. The Monte Carlo simulation model uses a risk-neutral framework to model future stock price movements based upon the risk-free rate of return at the time of grant, volatilities of the Company and the peer companies, and expected term assumed to be equal to the remaining measurement period. The market value in part reflects the payment of future dividends expected. As the Company is a qualifying entity under FRS 102, the Company has taken the exemption permitted under FRS 102 to not include the disclosures required by FRS 102 Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23 as these are publicly available in the consolidated financial statements of The AllState Corporation.
The Danish Tax Authorities commenced a review of the Company’s VAT submissions covering the period from 1 July 2016 to 31 March 2019. In their view, input VAT recovered on goods brought into the country relating to claims handling services constituted insurance agency services which were exempt from VAT.
The Company appealed the assessment in February 2021. Although a decision was expected within 39 months, the review remains ongoing. If the appeal is rejected, the Company can seek a refund of VAT from the insurer who had originally paid the VAT to the Tax Authorities. In 2024, the Company voluntarily repaid the input VAT to the Danish Tax Authorities to prevent further accrual of interest and penalties. However, the uncertainty regarding the timing and outcome of the review remains in relation to any associated interest and penalties on the late payment that may be imposed. Accordingly, these financial consequences are disclosed as a contingent liability..
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £1,208k (2023: £959k).
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SQUARETRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
SquareTrade Limited is a 100% owned subsidiary of
The ultimate controlling party is
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