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

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

Indigo Underwriters Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Duo Building, 6th Floor, 280 Bishopsgate, London, EC2M 4RB.

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” September 2024) 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. The principal accounting policies adopted are set out below.

Prior year adjustments have been made to correct the classification of a subordinated loan, which was previously presented as a long-term creditor and has now been reclassified as an intercompany balance with debtors. In addition, the amount previously reported as short-term creditors has been reallocated to long-term creditors in accordance with the terms of the relevant agreement. These adjustments relate solely to presentation and have had no impact on net assets, profit for the year, or corporation tax. Further details are disclosed in the notes to the financial statements.

The Directors have assessed the ability of the Company to continue as a going concern for the next 12 months from the date of approval of these financial statements. true

The Directors consider that the Company has ongoing arrangements for the provision of insurance underwriting agency services and in conjunction with sufficient resources within the group headed by Hovmarksvej Holding ApS that can be made available to the Company, if required, the Company will have sufficient resources to meet its liabilities and cover its cost as they fall due for this period.

The Directors have concluded that there are no material uncertainties that may cast significant doubt about the Company’s ability to continue as a going concern for the next 12 months from the date of approval of these financial statements. Accordingly, the financial statements are prepared on the going concern basis.

Revenue comprises sales of services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

The company recognises revenue from the following major sources:

• Placement services - commission income

• Post placement services - claims handling

• Profit share form reinsurance contracts

Commission income is earned on insurance placements effected under various delegated authorities granted by a number of different underwriters. Revenue relating to policy placement is recognised at a point in time, being when:

• the insurance contract is agreed between insurer and policyholder; and

• the company has fulfilled its placement obligation and has a present right to consideration.

Where placement services include additional post-placement activities, an appropriate portion of revenue is allocated and deferred accordingly.

Claims handling services are recognised over time, as the performance obligation is satisfied. Revenue is recognised based on the period over which claims handling services are provided, which may include:

• the policy coverage period; and/or

• the claims settlement period.

The method of recognition reflects the pattern of service delivery, typically on a time elapsed basis or other appropriate measure of progress.

The company recognises income arising from profit-sharing arrangements under reinsurance contracts where it is contractually entitled to receive a share of the reinsurer’s profits. Income from profit commissions or profit-sharing arrangements is recognised in profit or loss when:

• the company has an enforceable contractual right to the income;

• the amount can be measured reliably; and

• it is probable that the economic benefits will flow to the company.

The share of profit is measured in accordance with the terms of the relevant reinsurance agreements, typically based on the performance of the underlying business after deducting claims, commissions, expenses and other contractual adjustments.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

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 gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Premiums received under binding authority arrangements are held in bank accounts controlled by the company prior to settlement with underwriters. Similarly, funds received from insurers for the settlement of claims are held in these bank accounts before being remitted to policyholders. As the company has control over these funds, they are recognised as assets within cash at bank in the financial statements, with a corresponding liability recognised within other creditors.

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.

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 liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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

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.

In the current year, the FRS 102 Periodic Review 2024 was applied by the company for the first time and affects the financial statements as follows.

The company has assessed its contractual arrangements in accordance with FRS 102 (as revised) and has determined that it does not have any leases that meet the definition of either operating or finance leases. Accordingly, no right-of-use assets or lease liabilities have been recognised in the balance sheet.

The company has adopted a new accounting policy in respect of revenue recognition in accordance with FRS 102, Section 23. The change has been applied retrospectively in accordance with paragraph 1.61(b) of the standard.

Nature of the Change

The change in accounting policy has been made to better reflect the operations and financial performance of the company in its role as an insurance intermediary.

In particular, the company has revised its accounting for placement services (‘commission income’). Revenue is now recognised at the point in time when the intermediary has satisfied its performance obligation. Where placement is the only service provided, this typically occurs when the terms of the insurance policy are contractually agreed by the insurer and the policyholder, and the insurer has a present right to payment from the policyholder. This approach ensures that revenue recognition aligns with the underlying economics of the transaction and the completion of the intermediary’s contractual obligations.

Effect of the Change

As the new policy has been applied retrospectively, the company has assessed its impact on both the current and prior periods. No prior period adjustments have been required, as the figures for prior periods under the previous policy are not materially different from those prepared under the revised policy. Consequently, the financial statements for prior periods have not been restated.

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.

Useful economic lives of non-financial assets

The annual amortisation and depreciation charges for intangible and tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re- assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Impairment of debtors

The Company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor where available, the ageing profile of debtors and historical experience.

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

Amounts due from related parties are receivable on demand and bear interest at a rate of 5.85% (2024: 7.10%)

Amounts due to related parties are payable on demand and bear interest at a rate of 5.85% (2024: 7.10%.)

Other borrowings represent amounts due to related parties bear interest at a rate of 15% (2024: 15%)

Each ordinary share carries one vote.

The preference shares do not have rights to vote at general meetings or on written resolution, no right of redemption. These shares do have a right to return on capital on liquidation and a right to receive dividends that are to be considered separately by the Directors and any dividend shall not exceed £0.01 per share and shall be payable subject to the availability of distributable profits.

The company is currently implementing a redundancy programme. An offer relating to one employee has not been accepted as at the reporting date. No provision has been recognised in the financial statements because the obligation is contingent and the amount is uncertain. The matter will be reassessed at future reporting dates, and a provision will be recognised if a present obligation arises and can be reliably estimated.

The company’s parent undertaking is Indigo Agencies Holdings Limited. The company’s ultimate controlling party is Hovmarksvej Holding ApS. The company is included in the consolidated financial statements of Hovmarksvej Holding ApS. The consolidated financial statements can be obtained on request from the company’s registered office.

Indigo Agencies Holdings Limited is incorporated in the UK and Hovmarksvej Holding ApS is incorporated in Denmark.

The company's ultimate controlling party is Hovmarksvej Holding ApS (CVR number 33239084), registered at Hovmarksvej 38, 2920 Charlottenlund, Denmark. This private limited company was incorporated on September 30, 2010, and is located in the Gentofte municipality.

A prior year adjustment has been recorded in the financial statements to correct the classification of a subordinated loan of £50,000, which was previously presented as a long-term creditor. As the underlying transaction represents an intercompany loan, a reallocation journal has been processed to adjust the presentation, reducing long-term creditors and offsetting the balance against the intercompany account with Indigo Agency Holdings Limited. This adjustment has no impact on net assets.

The loan previously presented under “Amount Due to Related Party – repayable within one year,” amounting to £144,246, has been reclassified as a long-term liability in accordance with the terms of the agreement.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified.