The members present their annual report and audited financial statements for the year ended 31 December 2025.
The principal activity of the limited liability partnership continued to be that of an insurance claims handler.
The turnover has increased marginally from £315,364 to £315,587 in the current year, due to investment interest.
The administrative expenses have reduced from £268,246 to £245,017, mainly due to reduced rent costs after moving office.
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
Although not directly regulated by the Financial Conduct Authority, AHC adheres to 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.
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 service standards, complaints, declinatures and claims that have not been pursued. The regular monitoring of these KPIs aids decision making. The profit before tax for the year, which is considered a KPI, amounted to £97,617, up from £69,997 in 2024. Net assets of the Company totalled £677,735 (2024: £580,118).
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.
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.
The profit for the year before members' remuneration and profit shares was £97,617 (2024 - £69,997).
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 (2024: £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 Moore NHC Audit Limited as independent auditors for the year ending 31 December 2025 and have reappointed them for the next year.
This report has been prepared in accordance with the special provisions relating to small LLPs within Part 15 of the Companies Act 2006.
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.
We have audited the financial statements of Accident & Health Claims Services LLP (the 'limited liability partnership') for the year ended 31 December 2025 which comprise the profit and loss account, the balance sheet and notes to the financial statements, including 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).
Basis for opinion
Conclusions relating to going concern
Other information
As explained more fully in the members' responsibilities statement, the members are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the members 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 members are responsible for assessing the limited liability partnership'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 members either intend to liquidate the limited liability partnership or to cease operations, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the partnership.
Our approach was as follows:
We obtained an understanding of the legal and regulatory requirements applicable to the partnership and considered that the most significant are the Companies Act 2006, International Financial Reporting Standards as adopted by the UK, and UK taxation legislation.
We obtained an understanding of how the partnership complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the limited liability partnership's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the limited liability partnership's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the limited liability partnership and the limited liability partnership's members as a body, for our audit work, for this report, or for the opinions we have formed.
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, Bishops 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 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 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.
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:
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 2025, Accident & Health Underwriting Limited charged the LLP a total of £59,293 (2024: £78,606) for various costs.
As at 31 December 2025, the LLP owed Accident & Health Underwriting Limited £29,681 (2024: £32,190).
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.