CINCINNATI GLOBAL
UNDERWRITING AGENCY LIMITED
FOR THE YEAR ENDED
Company number: 04039137
CINCINNATI GLOBAL UNDERWRITING AGENCY LIMITED
CONTENTS
Pages
Directors and Advisers 2
Strategic Report 3-6
Report
of
the Directors 7-9
Independent Auditor's Report to the Members of 10-11
Cincinnati Global Underwriting Agency Limited
Statement
of
Comprehensive Income 12
Balance Sheet 13
Statement
of
Changes in Equity 14
Accounting Policies 15-16
Notes to the Financial Statements 17-23
-1 -
CINCINNATI
GLOBAL
UNDERWRITING
AGENCY
LIMITED
DIRECTORS
AND ADVISERS
Directors GAM Bonvarlet (non-executive)
C
Eales
(non-executive)
(non-executive Chairman)
R
B
Company Secretary R J Allibone
Registered Office and
Business Address
Cincinnati Global Underwriting Agency Ltd.
EC3M
7DQ
Bankers Lloyds Bank plc
25 Gresham Street
London
EC2V
7HN
Auditor Deloitte LLP
Statutory Auditor
1
New Street Square
London
EC4A
3HQ
United Kingdom
Solicitors Birketts
Fourth Floor, 106 Leadenhall Street
London
EC3A
4AA
-2-
CINCINNATI GLOBAL UNDERWRITING AGENCY LIMITED
STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2025
The Directors present the Strategic Report for the year ended 31 December 2025 for Cincinnati Global Underwriting Agency Limited
("the Company") (registered number 04039137).
Principal activities, review of the
business
and future
developments
The Company is regulated by the Financial Conduct Authority (FCA), Prudential Regulation Authority (PRA) and Lloyd's as
a
Managing Agent. The Company is the managing agent for Syndicate 318, which will continue to underwrite for the 2026 year
of
account.
Through its activities the Company derives income from fees and profit commissions from capital providers
of
the managed syndicate,
and provides services to the Syndicate it manages and fellow group undertakings for which it recharges the cost
of
provision.
The Company will continue to manage Syndicate 318 for the foreseeable future.
Results and Performance
The results for the year, as presented in tire statement
of
comprehensive income on page 12, show
a
profit on ordinary activities before tax
of
£6.
1m
(2024:
profit
£8.
1m).
Key Performance Indicators
During the year, on
a
turnover
of
£17.2m
(2024:
£20.
9m) the Company made
a
profit before tax
of
£6.1m
(2024:
£8.1m). Turnover
comprises fees
of
£2.4m
(2024:
£2.3m) and profit commissions
of
£14.
8m
(2024:
£18.
6m). There was profit commissions earned on the 2025,
2024 and 2023 year
of
accounts. The profit commissions for the 2023 year
of
account was £1.7m for the year as the 2023 calendar year of
account closed at
a
profit. The profit commissions for the 2024 year
of
account was
£8.
5m and for the 2025 year
of
account it was
£4.
6m in
the calendar year.
As the fee income is primarily to cover the costs
of
the Company, the main driver
of
financial success is through the generation
of
profit commissions. The Capital Margin at the year end is £42.8m
(2024:
£37.1m). For the 2025 calendar year the amount of
gross premium written by Syndicate 318 amounted to
£316.
0m
(2024:
£301.4m) with
a
profit for the year
of
£66.
2m
(2024:
profit £72.0m).
The underwriting capacity
of
the 2024 year
of
account for Syndicate 318 was £375.0m and is
£375.
0m for the 2025 year
of
account.
The Company has retained key underwriting and operational staff. There is no indebtedness in the business.
Other operating expenses under the control of the Managing Agency have increased in the year, largely owing to the increase in
bonuses paid to employees from the share
of
profit commissions payable to staff. The business has also required additional
resources as it has continued to embark on its growth strategy.
Strategy and Future
Developments
The Company is dependent on fees and profit commissions it receives from the capital providers
of
its managed syndicate, including its
aligned member Cincinnati Global Dedicated No 2 Limited. It is fundamental to the success
of
the Company, that it manages the key
risks associated with the management
of
Syndicate 318 to ensure its profitability, and maintain its attractiveness to capital providers,
and the ultimate parent company, Cincinnati Financial Corporation. The Board and management regularly look at potential new lines
of
business, as well as ways
of
leveraging the Lloyd's brand. The Syndicate has expanded into
a
number
of
new lines
of
business in
recent years, as the Board has sought to diversify the Syndicate's portfolio
of
business written.
Principal Risks and Uncertainties
As
a
Managing Agent at Lloyd's the majority
of
the risks to this Company arise from the management
of
Lloyd's Syndicate 318.
Details
of
these risks are given in the Syndicate's accounts. The Company's own operational risks are not considered to be significant.
The key success factors to this Company are the level
of
fees and profit commissions receivable from managing the Syndicate, which
will be largely governed by the future size and profitability
of
the Syndicate.
If
the results
of
the Syndicate are not considered
adequate by the members
of
the Syndicate, support may be withdrawn, which could reduce the turnover and income
of
the Company.
Any losses suffered by the Syndicate will potentially reduce the capital available to support the Syndicate in future years. In
such circumstances to avoid
a
reduction in capacity managed, the Company is dependent upon the existing members finding
additional capital or attracting new members to the Syndicate.
If
significant losses are made by the Syndicate, the Company may
be at risk
of
litigation
if
capital providers to the Syndicate or other third parties consider they have suffered
a
loss due to
inadequate management
of
the Syndicate.
-3-
CINCINNATI GLOBAL UNDERWRITING AGENCY LIMITED
STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 (continued)
Principal Risks and Uncertainties (continued)
The Syndicate's activities expose it to a variety
of
financial and non-financial risks. The Company as Managing Agent is
responsible for managing the Syndicate's exposure to these risks and, where possible, introducing controls and procedures
that mitigate the effects
of
the exposure to risk. Each year, this Company, as Managing Agent, prepares a Solvency
Capital Requirement
(SCR)
for the Syndicate, the purpose of this being to agree capital requirements with Lloyd's based on
an agreed assessment
of
the risks impacting the Syndicate's business, and the measures in place to manage and mitigate
those risks from a quantitative and qualitative perspective. The risks described below are typically reflected in the SCR;
and typically the majority
of
the total assessed value
of
the risks concerned is attributable to Insurance Risk.
The insurance risks faced by a syndicate include the occurrence
of
catastrophic events, downward pressure on pricing of
risks, reductions in business volumes and the risk
of
inadequate reserving. Reinsurance risks arise from the risk that a
reinsurer fails to meet their share
of
a claim. The management
of
the Syndicate's funds is exposed to risks
of
investment,
liquidity, currency and interest rates leading to financial loss. The Syndicate is also exposed to regulatory and
operational risks including its ability to continue to trade. The operational risks include the failure to retain key people,
and have insufficient resources to effectively manage the business. The Board ensures that adequate remuneration and
human resource planning are in place to retain key people, and maintain
a
sufficiently balanced team
of
skilled and
experienced staff to prevent excessive dependence on any individuals.
The other significant risks faced by the Company are with regard to the investment
of
the available funds within its own
custody. The elements
of
these risks are investment risk, liquidity risk, currency risk and interest rate risk. To mitigate
this, the investments
of
Syndicate and Company funds are managed by external investment managers, and money market funds.
The company monitors the performance
of
the external investment managers on a regular basis and periodically agrees with
them the investment strategy to be adopted to mitigate risks
of
interest rate fluctuation and credit risks and to provide
appropriate liquidity. In order to minimise investment, credit and liquidity risk, the syndicate's funds are invested in highly
rated and readily realisable investments. The investment managers are advised to monitor the economic situation and to
anticipate future interest rate movements in order to manage investment values and returns and mitigate interest rate risks.
The Company manages the risks arising from its managed syndicate by exercising close management control and
monitoring
of
the Syndicate. This is achieved by the Company, as managing agent, ensuring through the presence of
their directors on the key management committees
of
the Syndicate, that they are involved in setting the culture, control and
operational environment for the Syndicate and monitoring its performance and adherence to procedures. The supervision
by Lloyd's, the Financial Conduct Authority and the Prudential Regulation Authority also lays down requirements and
monitors the management
of
the Syndicate's risks.
Climate change
The Company continuously evaluates business risks and opportunities associated with climate change, closely manages the
environmental impact and actively promotes positive environmental practices.
The business has no set emission targets but encourages employees to be mindful
of
use
of
electricity in the day
to day business. It is company policy that all short haul flights are taken in the Economy class, and all long haul flights in
Premium Economy, where available. Employees are expected to only travel overseas when it is deemed essential.
Geopolitical Risks
The Board will continue to monitor geopolitical risks and their potential implications for the Managing Agency,
and Syndicate 318. The Board are currently not aware
of
any material impacts that would require disclosure in these
reports and accounts.
-4-
CINCINNATI GLOBAL UNDERWRITING AGENCY LIMITED
STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 (continued)
Principal Risks and Uncertainties (continued)
Regulatory and operational risks
The Company's approval to be
a
managing agent
of
a
Lloyd's syndicate is subject to continuing approval by Lloyd's and the
Financial Conduct Authority and the Prudential Regulation Authority. The risk
of
this approval being removed is mitigated by
monitoring and fully complying with all requirements applicable to a Lloyd's Managing Agent and also to the operations
of
its
managed syndicate. In addition as
a
Managing Agent, Lloyd's require
a
minimum level
of
capital to be maintained by
the Company. The risk
of
failing to meet this requirement is mitigated by monitoring the level
of
assets held and ensuring
a
margin in excess
of
these requirements is maintained.
Section 172 (1) of the Companies Act 2006
The directors acknowledge their duty to promote the success
of
the company, which is prescribed in section 172
of
the
Companies Act 2006. The Board has identified that its key stakeholders are: our employees, capital providers, customers,
brokers, and regulators.
During the year the Board considered the effect
of
the strategic and operational decisions on the Company's stakeholders. The
Board approved the commencement
of
Marine line
of
business in Syndicate 318 during the year. The Board
maintained Syndicate 318's underwriting capacity at £375m for the 2025 year
of
account.
The directors have detailed below how the Company engages with its stakeholders.
Employees
Our employees are key to our success as
a
business. The directors continually strive to make the company an enjoyable
place to work, and offer opportunities for our people to develop their skills and careers. The Company promotes vocational
learning, and we currently have staff studying for professional qualifications across multiple disciplines. We also run
internal workshops to help develop future leaders, and offer employees
a
mentoring programme with external coaches.
The People and Culture Working Group, which is chaired by one
of
our non-executive directors is designed to encourage our
employees to participate in improving our workplace. The Company also hold regular "Townhall" meetings which provide
employees with an update on developments in the business, as well as providing a forum for open discussion. These sessions
also provide feedback on the results
of
the Company's Market and Practices surveys against our peers in the Lloyd's Market.
We also hold regular "Lunch and Learn" sessions to increase the general understanding
of
the business throughout our team.
Capital providers
The generation
of
fees and profit commissions from our capital providers is paramount to the continued success of the business.
A representative from our ultimate parent company, which provides the capital for our aligned member, sits on the Board.
We also hold regular meetings with members' agents who represent our third party names.
Customers
Our underwriters are committed to providing policies that meet the needs
of
our clients in an ever changing world.
Our claims team are dedicated to handling losses promptly and efficiently, and use
a
number
of
KPIs to ensure they
maintain high operational standards. The Product Oversight and Governance Committee also provides challenge from a
consumer perspective.
-5-
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CINCINNATI GLOBAL UNDERWRITING AGENCY LIMITED
STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 (continued)
Section 172 (1) of the Companies Act 2006 (continued)
Brokers
As
a
traditional Lloyd's Managing Agency, we are reliant on our brokers as
a
source for the business of our managed syndicate.
Our underwriters encourage an interactive approach with brokers. We hold regular workshops to harbour
a
better
understanding
of how we can work together to provide the best service for both existing and potential clients.
Regulators
We are transparent with our regulators. The relationships with our regulators are primarily handled by our governance team.
Our senior management and non-executive directors meet with regulators on an ad hoc basis.
This report has been approved for issue by the Board of Directors.
Other Matters
The Board are not aware of any other matters that require disclosure.
Director
Second Floor, 51 Lime Street
London
EC3M 7DQ
29 May 2026
-6-
CINCINNATI
GLOBAL
UNDERWRITING
AGENCY
LIMITED
REPORT
OF
THE
DIRECTORS
FOR
THE
YEAR
ENDED 31
DECEMBER
2025
The Directors present their Annual report and financial statements for the year ended 31 December
2025
for Cincinnati Global
Underwriting Agency Limited (registered number
04039137).
Cincinnati Global Underwriting Agency Limited is incorporated in
England and Wales, and is
a
private company limited by shares.
Future
developments
Future Developments
of
the business have been set out in the Strategic Report on page 3.
Dividends
During the year and to the date
of
signing, no dividends were paid.
(2024:
£Nil). There were no dividends proposed for after
the year end.
Financial
Risk Management
This has been discussed in the strategic report within Principal risks and uncertainties.
Going Concern
The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for
the foreseeable future. The directors are satisfied that the Company has sufficient financial resources to continue trading for
at least twelve months from the proposed date
of
signing. The Board has also received confirmation from the Capital and
Planning Group of the Corporation
of
Lloyd's to increase planned gross written premiums in the Syndicate Business
Forecast
of
Syndicate 318 for the
2026
underwriting year. The Board is also satisfied with the operational resilience
of
the
Company. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.
-
7-
CINCINNATI
GLOBAL
UNDERWRITING
AGENCY
LIMITED
REPORT
OF
THE
DIRECTORS
FOR
THE
YEAR
ENDED
31
DECEMBER
2025
(continued)
Statement
of
directors'
responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance
with applicable law and regulations.
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), including
FRS
102 "The Financial Reporting
Standard applicable in the
UK
and Republic
of
Ireland". 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:
•
select suitable accounting policies and then apply them consistently;
•
make judgements 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; and
•
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
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 directors are responsible for the maintenance and integrity
of
the corporate and financial information included on
the company's website. Legislation in the United Kingdom governing the preparation and dissemination
of
financial
statements may differ from legislation in other jurisdictions.
The directors have detailed the principal risks and uncertainties
of
the Company, as well as other strategic information relating
to the business. This can be found in the Strategic Report on pages
3
to 6. The Company's accounting policies are not generally
subject to complex judgements.
The Company's relationship with key stakeholders are detailed in the Strategic Report on pages 3-6.
-8-
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CINCINNATI
GLOBAL
UNDERWRITING
AGENCY
LIMITED
REPORT
OF THE
DIRECTORS
FOR
THE
YEAR
ENDED 31
DECEMBER
2025 (continued)
Directors
The Directors of the company who held office during the year and up to the date
of
signing:
T
C
Cracas
R
B
Scott
Employees
The Company does not employ any members of staff directly. All staff are employed by the Company's parent
Cincinnati Global Underwriting Limited.
Charitable and Political Donations
Charitable donations amounting to
£16,400
were made by the company during the year
(2024:
£11,475).
No political donations were made by the company during the year
(2024:
£Nil).
Disclosure of Information to the Auditor
In the case of each of the persons who is
a
director of the Company at the date when this report is approved:
•
so far as each of the directors is aware, there is no relevant audit information (as defined in the Companies Act 2006) of
which the Company's auditor is unaware; and,
•
each of the directors has taken all the steps that they ought to have taken as
a
director to make themselves aware of any
relevant audit information (as defined) and to establish that the Company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of tire Companies Act 2006.
Auditor
Approved by the Board of Directors and signed on behalf of the Board:
M
T
Brunning
Director
Second Floor, 51 Lime Street
London
EC3M 7DQ
-9-
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF CINCINNATI GLOBAL UNDERWRITING AGENCY LIMITED
Report on the audit of the financial statements
Opinion
In our opinion the financial statements
of
Cincinnati Global Underwriting Agency Limited company
•
give
a
true and fair view
of
the state
of
the company's affairs as at 31 December 2025 and
of
its profit for the year then ended;
•have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including
Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"; and
•have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements which comprise:
•
the statement
of
comprehensive income;
•
the balance sheet;
•
the statement
of
changes in equity;
•
the related notes
1
to 19.
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
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 auditor's 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
UK,
including the Financial Reporting Council's (the 'FRC'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.
Conclusions relating to
going
concern
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.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our
auditor's 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.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors 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 directors 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.
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 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.
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 auditor's report.
-10-
INDEPENDENT AUDITOR'S
REPORT
TO THE
MEMBERS
OF CINCINNATI GLOBAL UNDERWRITING AGENCY
LIMITED
(continued)
Extent to which the audit was considered capable of detecting irregularities, including fraud
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.
We considered the nature of the company's industry and its control environment, and reviewed the company's documentation of
their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired
of
management and
directors about their own identification and assessment of the risks of irregularities, including those that are specific to the
company's business sector.
We obtained an
understanding
of the legal and regulatory framework that the company operates in, and identified the key laws
and regulations that:
•had a direct effect on the determination of material
amounts
and disclosures in the financial statements. These included UK
Companies Act, and tax legislation; and
•
do not have
a
direct effect on the financial statements but compliance with which may be fundamental to the company's ability to
operate or to avoid a material penalty. These included Lloyd's bye-laws
.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for
fraud and how and where fraud might occur in the financial statements.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of
management override. In addressing the risk
of
fraud through management override
of
controls, we tested the appropriateness of
journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative
of
a
potential bias; and evaluated the business rationale of any significant transactions that are
unusual
or outside the normal course
of business.
In addition to the above, our procedures to respond to the risks identified included the following:
•reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of
relevant laws and regulations described as having
a
direct effect on the financial statements;
•
performing analytical procedures to identify any
unusual
or unexpected relationships that may
indicate risks of material misstatement due to fraud;
•
enquiring of management concerning actual and potential litigation and claims, and instances of non-compliance
with laws and regulations; and
•reading minutes of meetings of those charged with governance, and reviewing correspondence with Lloyd's.
Report on other legal and regulatory requirements
Opinions on other matters prescribed by the Companies Act 2006
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 financial year for which the financial statements
are prepared is consistent with the financial statements; and
•the strategic report and directors' report has 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 any material misstatements in the strategic report or directors' report.
Matters on which we are required to report by exception
Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:
•adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches
not visited by us; or
•the financial statements are not in agreement with the accounting records and returns; or
•certain disclosures of directors' remuneration specified by law are not made; or
•we have not received all the information and explanations we require for our audit.
We have nothing to report in respect of these matters.
Use of our report
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 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 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 Deloitte LLP
Statutory Auditor
-11-
CINCINNATI GLOBAL UNDERWRITING AGENCY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2025
Note 2025
2024
£ £
Turnover
1
Other
operating
income
2
Operating
expenses
(35,203,345 )
(32,334,372 )
Operating
Profit 3-4
Interest
receivable
5
Profit on
ordinary
activities before
taxation
Taxation
6
(380,403 )
(169,220 )
Total
Comprehensive
Income 14-15
The total
comprehensive
income for the financial year relates
entirely
to
continuing
activities.
There were no recognised gains or losses other than those
reported
in the
Statement
of
Comprehensive
Income
for the financial year.
The Accounting Policies and notes on pages 15 to 23 form part of these Financial
Statements.
Please note that
figures
displayed
in
Statement
of
Comprehensive
Income, Balance Sheet,
Statement
of
Changes
in Equity, and the
corresponding
notes are
rounded
to the
nearest
whole
number.
-12-
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CINCINNATI GLOBAL UNDERWRITING AGENCY LIMITED
BALANCE SHEET
At 31 December 2025
Fixed Assets
Tangible fixed assets
Note
7
2025
2024
£
£
£
£
| Current Assets | |||||
Debtors: amounts falling due within one year | 8 | ||||
| Cash at bank and in hand | |||||
Creditors: amounts falling due within one year | 9 | ||||
| Net Current Assets | |||||
Debtors: amounts falling dueafter more than | one year 8 | ||||
| Total Assets less Current Liabilities | |||||
Creditors: amounts falling due after more thanone year | 10 | ||||
| Provisions | 11 | | |||
| Net Assets | |||||
| Capital and Reserves Called-up share capital | 13 | | |||
| Profit and Loss Account | 14 | ||||
| Equity Shareholders Funds | 15 |
Cincinnati Global
Underwriting
Agency Limited (registered number 04039137) is
incorporated
in England and Wales, and is
a
private company limited by shares.
These financial
statements
were
approved
by the board of directors on 29 May 2026 and signed on its behalf by:
D
C
Eales
M
T
Brunning
The Accounting Policies and notes on pages 15 to 23 form part of these Financial Statements.
-13-
CINCINNATI GLOBAL UNDERWRITING AGENCY LIMITED
STATEMENT OF CHANGES IN EQUITY
For
the year ended 31 December 2025
Note
Called-up share
capital
Profit and loss Total
shareholders
account fund
£
£
£
At 1 January 2024 | 13/15 | | | |
| Total comprehensive income | 14 | - | | |
| At 31 December 2024 | ||||
| Total comprehensive income | 14 | - | | |
| At 31 December 2025 | 15 |
The Accounting Policies and notes on pages 15 to 23 form part of these Financial Statements.
-14-
CINCINNATI GLOBAL UNDERWRITING AGENCY LIMITED
ACCOUNTING POLICIES
Cincinnati Global Underwriting Agency Limited (registered number
04039137)
is incorporated in England and Wales, and is
a
private company limited by shares.
Basis of Preparation
The Financial Statements are prepared under the historical cost basis
of
accounting and comply with applicable Accounting
Standards.
These financial statements have been prepared by the Company in accordance with Financial Reporting Standards 102,
"The Financial Reporting Standard applicable in the United Kingdom and the Republic
of
Ireland"
("FRS
102").
The Company is exempt from preparing
a
cash flow statement under Financial Reporting Standard No. 102 section
7
as it is
a
wholly owned subsidiary undertaking, the results
of
which are included in the consolidated Financial Statements
of
the group and
which are publicly available from the address in note 18.
The company has taken advantage
of
the exemption in
FRS
102.33.
1A from disclosing transactions with other wholly
owned group entities which qualify as related parties
The Company has taken advantage
of
disclosure exemptions under
FRS 102.1.12
for the cash flow statement, financial instruments,
and key management personnel.
Going Concern
Having reviewed the financial position
of
the Company, together with the net asset position, budgets and cash flow forecasts for the
12 months from the date
of
approval
of
these financial statements, the directors have
a
reasonable expectation that the Company has
adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the
going concern basis in preparing the annual report and accounts.
The following accounting policies have been applied consistently in dealing with items which are considered material in relation
to the financial statements.
Turnover
Turnover represents agency fees and profit commissions which are accounted for as follows:
Agency fees payable to the Company under agency agreements with members
of
Lloyd's are recognised when the contractual
right to such fees is established, and to the extent that the Company's relevant obligations under those agency agreements have
been performed.
Profit commissions arising from agency agreements with members
of
Lloyd's is recognised when the contractual right to such profit
commissions is established, but only to the extent that
a
reliable estimate
of
the amount due can be made, and receipt is virtually certain.
Such estimates are accrued by reference to cumulative profits
of
Syndicate 318, subject to the application
of
any deficit clauses. The
commissionable amount is
20%
of
Syndicate profits after standard personal expenses. This is an area
of
estimation uncertainty as profit
commissions only become receivable upon closure
of
a
year
of
account.
Revenue that has been credited in the Company's books, but not yet recognised as income in accordance with the policies described
above, is credited to the deferred income account under Creditors in the Company's balance sheet.
The Company incurs expenses on behalf
of
its managed syndicate. Other operating income represents the recharge
of
these expenses
to the appropriate syndicate, with no amounts being retained by the Company-
Interest receivable
Taxation
The charge for taxation is based on the profit for the year and takes into account taxation deferral because of timing differences
between the treatment
of
certain items for taxation and accounting purposes.
Deferred tax is provided in full on timing differences which result in an obligation at the balance sheet date to pay more tax, or
a
right to pay less tax, at
a
future date, at rates expected to apply when they crystallise based on current tax rates and law.
Deferred tax assets are recognised to the extent that it is regarded as more likely than not that they will be recovered.
Deferred tax assets and Labilities have not been discounted.
Key Sources of Estimation Uncertainty
The calculation
of
profit commissions arising from open underwriting years
of
account is
a
key source
of
estimation uncertainty.
While profit commissions income is only recognised to the extent that
a
reliable estimate of the amount due can be made, the
profitability
of
an underwriting year may be subject to material fluctuations up until the point
of
closure.
Critical Accounting Judgements
There are no critical accounting judgements made by the Company.
-15-
CINCINNATI
GLOBAL
UNDERWRITING
AGENCY
LIMITED
ACCOUNTING
POLICIES
(continued)
Debtors,
Creditors
and Provisions
recognised where there is a present obligation as a result
of
a
past event that can be measured reliably, and the settlement is
probable.
Dividends
Interim dividends payable are recognised when paid and final dividends booked as a liability when they are approved by the
members passing
a
written resolution.
Depreciation
Depreciation is provided on all tangible assets using the straight-line method, at rates calculated to write
off
the cost or valuation
of
each asset, less any residual value, evenly over its expected useful life. The expected useful lives
of
the principal categories are:
Furniture and equipment
-
Refurbishment
-
years
Inhouse IT systems
-
years
Leasing Commitments
Rentals paid under operating leases are charged to the statement
of
comprehensive income on
a
Pension Contributions
The Company operates a defined contribution pension scheme. The assets
of
the scheme are held separately from those
of
the
Company in an independently administered fund. The pension charge represents contributions payable by the Company for the year.
The Company's liability is limited to the amounts
of
the contributions.
-16-
CINCINNATI GLOBAL UNDERWRITING AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
1
Turnover
2025
£
2024
£
Agency fees
Profit commissions
2
Other Operating Income
2025
£
2024
£
| Recharge of expenses applicable to managed syndicate | | |
The Company incurs expenses on behalf of its managed syndicate. These expenses are recharged directly to the appropriate
syndicate with no
amounts
being retained by the Company. A gross basis is shown, being expenses incurred and
amounts
recharged to managed syndicate.
3
Operating Profit 2025
£
2024
£
| Operating Profit | ||
| This is stated after charging:Auditor's remuneration: | ||
| Audit of Cincinnati Global Underwriting Agency Limited financial statements | | |
| Audit fees incurred by Cincinnati Global Underwriting Agency Limited butrelating to related entities | | |
| Operating lease expenses | 1,050,151 | 414,804 |
| Recharge to Syndicate for lease | (966,568) | (378,554) |
| Net lease amount attributable to Cincinnati Global Underwriting Agency Limited | _______ | |
| Depreciation | | |
| Recharge to Syndicate for use of assets | ( | ( |
| Net depreciation attributable to Cincinnati Global Underwriting Agency Limited | _______15,319 | 11,405 |
The auditor's remuneration includes fees relating to the audit of its parent company Cincinnati Global Underwriting Limited
and
a
fellow subsidiary, Cincinnati Global Dedicated No
2
Limited of £43,839 (2024: £42,660 ).
4
Directors and Employees
Staff Costs (including Directors) recharged from Cincinnati Global Underwriting Limited
2025
£
2024
£
| Wages and salaries | | |
| Profit commissions payable | | |
| Social security costs | | |
| Pension contributions | ||
| Staff Benefits | | |
| 26,255,438 | 25,851,642 | |
| Less: recharged to managed syndicate | ( | ( |
| |
-17-
CINCINNATI
GLOBAL
UNDERWRITING
AGENCY
LIMITED
NOTES
TO
THE
FINANCIAL
STATEMENTS
(continued)
4
Directors
and Employees (continued)
2025 2024
| Average number of employees during the period | No. | No. |
| Accounting and statistical | | |
| Underwriting and claims | | |
| Other | ||
| |
All group staff were employed by Cincinnati Global Underwriting Limited but provide services to the Company and its managed
syndicate. The above represents the average number
of
employees providing services. The staff costs detailed include
£Nil
(2024:
£Nil) charged to the Company by third parties in respect
of
Directors services.
2025 2024
£ £
Directors
emoluments
| Emoluments including benefits | |||
| Amounts payable to defined contributions pension | scheme | | |
| 2,332,532 | 1,955,163 | ||
| Less: recharged to managed syndicate | ( | ( | |
| Highest paid Director | |||
| Emoluments including benefits | | ||
| | |||
| Less: recharged to managed syndicate | ( | ( | |
| |
Retirement benefits are accruing to
directors
(2024:
3) under money purchase pension schemes.
5 Interest Receivable
2025 2024
£ £
| Interest on Intercompany Loan | ||
| Bank Interest | | |
-18-
CINCINNATI
GLOBAL
UNDERWRITING
AGENCY
LIMITED
NOTES TO THE
FINANCIAL
STATEMENTS
(continued)
6 Taxation
2025
£
2024
£
Analysis of charge in year
| Current tax: | |||
| UK corporation tax on profits for the period | |||
| Adjustment in respect of previous periods | ( | ( | |
| Total current tax ________ | ( | __ | |
| Deferred tax:Origination and reversal of timing differences | ( | ||
| Adjustments in respect of previous periods | ( | ||
| Total deferred tax ________ | __ | ( | |
| Total tax per statement of comprehensive income ________ | __ | |
The charge for the year can be reconciled to the profit per the statement
of
comprehensive income as follows:
2025
£
2024
£
Tax on profit at standard UK tax rate
of
Effects of:
Expenses not deductible 2,246
Tangible fixed assets 574 -
Adjustment from previous periods 76,726 (75,433 )
Effects
of
group relief (1,229,841 ) (1,790,309 )
Roundings
-
Tax charge for the period
________380,403
_
Income tax expense reported in the income statement 380,403 169,220
Factors
affecting the tax charge for future periods
The main UK corporation tax rate is 25%. As such, all deferred tax balances as at 31 December 2025 have been recognised
at
25%.
Tax on
profit/
(loss) at standard UK tax rate
of
25%
(2024:
25%).
Pillar Two
The company is subject to the global minimum top-up tax under the OECD's Pillar Two reform, which was subsequently
enacted into UK legislation 11 July 2023.
UK has introduced amendments to
FRS
102 and In accordance with the amendments to
FRS 102
Section
29.2B,
the
company has applied the temporary exception from recognising and disclosing deferred tax assets and liabilities related
to Pillar Two income taxes. Pillar Two taxes are therefore recognised as current tax in the period in which the liability
arises. Cincinnati Group is carefully monitoring the implementation
of
Pillar Two across its operating jurisdictions. The
assessment
of
potential exposure to Pillar Two income taxes is based on the most recent Country-by-Country Report
and the financial statements
of
the constituent entities within the group. Based on this assessment, the Group does not
foresee any material exposure to Pillar Two income taxes, particularly as the UK is expected to benefit from the transitional
Country-by-Country Reporting (CbCR) safe harbour
relief
in the fiscal year 2025.
-19-
CINCINNATI
GLOBAL
UNDERWRITING
AGENCY
LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
7
Tangible Fixed Assets
Cost
At
1
January 2025
Additions
Furniture, equipment,
computer hardware,
and refurbishment
At 31 December 2025 6,638,286
Depreciation
At
1
January 2025 2,314,265
Charge during year
At 31 December 2025 2,575,886
Net Book Value
At 31 December 2025 4,062,400
At 31 December 2024
2025
2024
£ £
8
Debtors
Due within one year
| Amounts due from group companies | |||
| Amounts due from managed syndicate (Note 17) | |||
| Other debtors | |||
| Prepayments and accrued income | |||
| Due after one year | |||
| Deferred Tax (Note 12) | |||
| Accrued Income | |||
| __________ | ___ | |
All amounts due from group companies have arisen in the normal course of business and are
repayable on demand.
-20-
CINCINNATI
GLOBAL UNDERWRITING AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
2025
2024
£
£
9
Creditors:
amounts
falling
due
within
one year
| Amount owed to ultimate parent | company | ||
| Corporation Tax | | | |
| Other taxes and social security | |||
| Accrued Expenses | |||
| Deferred income | |||
| _______ |
10
Creditors:
amounts
falling
due after more than one year
2025
2024
£
£
| Deferred income | |||
| Deferred Tax (Note 12) | â– | ||
| __________911,503 | _______ | 209,446 |
11 Provisions
2025 2024
£
£
| Dilapidations provision |
A provision
of
£224,989
has been made for the estimated dilapidations on the Third
Floor,
1
Minster Court.
This provision will be retained by the Company until such time as costs
recharged to the managed syndicate, in proportion to usage.
are incurred and will then be
12
Deferred
tax assets
/
liabilities
2025
2024
£
£
Provision at start
of
period
Adjustment in respect of prior years (153,454 ) 33,688
Deferred tax (charge) to income statement for the period
Other
-
rounding
(303,677 ) 295,657
Provision at end
of
period
__________232,680 __________ 689,811
Fixed asset timing differences (692,132 ) 5,442
Timing differences
-
trading 924,812 684,369
Net deferred tax asset at 31 December 232,680 689,811
Deferred
tax asset
Recoverable after 12 months 924,812 689,811
Deferred
tax
liabilities
Payable after 12 months 692,132 -
The company operates under a small margin of fee income as well as profit commission from the
Managed Syndicate. The current forecasts results for the Syndicate would imply sufficient profit
commission will be accrued in the company to fully utilise the deferred tax asset in the year ending
31st December
2025
and may crystalise in 2026/27.
-21
-
CINCINNATI
GLOBAL
UNDERWRITING
AGENCY
LIMITED
NOTES TO THE
FINANCIAL
STATEMENTS
(continued)
13 Called-up Share Capital 2025 2025
2024 2024
Allotted Allotted
called-up and called-up and
Authorised fully paid Authorised fully paid
525,000 525,000 525,000 Ordinary shares of £1 each
2025
2024
14 Profit and Loss Reserve
£
£
| Balance at 1 January | | |
| Total comprehensive income | ||
| Retained profit at end of year | |
15 Reconciliation of Movement in Shareholders Funds
2025 2024
£
£
| Opening shareholders funds | ||
| Total comprehensive income | | |
| Closing shareholders funds | |
16 Obligations Under Operating Leases
The minimum lease payments to which the company is committed under non-cancellable operating leases for the coming
year is as follows:
2025
£
Land and
Buildings
2024
£
Land and
Buildings
On leases not later than one year
On leases later than one year and not later than five years 3,551,395 280,116
On leases later than five years 1,093,931
_
Of the above lease amount expiring in one year
£1,064,282
(2024:
£378,177)
will be recharged to the managed syndicate.
On 15th April 2025,
a
lease agreement was signed for the office building at 51 Lime Street, EC3R 7DQ, this is reflected
in the above.
See note 11 for details of the dilapidations provision.
-22-
CINCINNATI GLOBAL UNDERWRITING AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
17 Related Parties
The company has taken
advantage
of the exemption in FRS 102.33.1A from disclosing transactions with other wholly
owned group entities which qualify as related parties.
Transactions with Managed Syndicate
The Syndicate does not qualify for the exemption stated above under FRS 102.33.1A, as it is not
a
fully owned group company.
The managed syndicate, Syndicate 318 is
a
related party as defined in FRS 102.33 by virtue of the
control exercised over the activity of the syndicate.
In relation to the mandatory disclosure above, the company had the following aggregated transactions
with Syndicate 318:
Syndicate 318
Agency salaries charged to the syndicate (Note 1)
Profit commissions charged to the syndicate (Note 1)
2025
£
2024
£
Other Operating Income (Note 2)
Expenses recharged to the Syndicate:
Staff and related costs (Note 4)
(15,954,812 )
(13,591,903 )
Other expenses _______(7,966,663 ) __ (5,798,144 )
At 31 December 2025 the Company was owed £8,164,609 by Syndicate 318
(2024:
£1,499,193 ).
18 Intermediate and Ultimate Parent Company
Cincinnati Global Underwriting Agency Limited is incorporated in England and Wales. The Company's immediate
parent is Cincinnati Global Underwriting Limited which is incorporated in England and Wales. The ultimate parent
company is Cincinnati Financial Corporation
Corporation is both the largest and smallest group of
undertakings
for which group financial statements are
prepared.
Group accounts for Cincinnati Global Underwriting Limited and Cincinnati Financial Corporation are available
from the Company Secretary of Cincinnati Global Underwriting Agency Limited,
Lime Street, London EC3M 7DQ, or at www.cinfin.com.
19 Post Balance Sheet Events
There are no post balance sheet events that require disclosure by the board.
-23-
