Company Registration No. 05104119 (England and Wales)
RESOLUTION UNDERWRITING PARTNERSHIP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
LB GROUP
Number One
Vicarage Lane
Stratford
London
England
E15 4HF
RESOLUTION UNDERWRITING PARTNERSHIP LIMITED
COMPANY INFORMATION
Directors
Mr C. G. Harman
Chairman
Mr R. C. Hayes
Mr A. G. Smith
(Resigned on 18 June 2019)
Mr N. H. Topche
Company number
05104119
Registered office
Number One
Vicarage Lane
Stratford
London
England
E15 4HF
Accountants
LB Group (Stratford)
Number One
Vicarage Lane
Stratford
London
England
E15 4HF
Business address
Fourth Floor
153 Fenchurch Street
London
Greater London
UK
EC3M 6BB
Auditors
PKF Littlejohn LLP
15 Westferry Circus
London
E14 4HD
RESOLUTION UNDERWRITING PARTNERSHIP LIMITED
CONTENTS
Page
Directors' report
1 - 2
Directors' responsibilities statement
3
Independent auditor's report
4 - 5
Profit and loss account
6
Balance sheet
7
Statement of changes in equity
8
Notes to the financial statements
9 - 17
RESOLUTION UNDERWRITING PARTNERSHIP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2019.
Principal activities
The group acts as insurance underwriting agents and Resolution Underwriting Partnership Limited is the main operating company. The company is authorised and regulated by the Financial Conduct Authority and is an approved Lloyd’s coverholder. The bulk of the company’s activities are conducted through its Appointed Representatives.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr C. G. Harman
Chairman
Mr R. C. Hayes
Mr A. G. Smith
(Resigned on 18 June 2019)
Mr N. H. Topche
Results and dividends
The result for the period, after taxation, amounted to a loss of £65,178. The directors do not propose any dividend for the period.
Financial instruments
Treasury operations and financial instruments
The company has various financial assets and liabilities, such as trade receivables and trade payables, arising directly from its operations. These assets and operating cash arising are actively managed to avoid unnecessary currency exposure. The company has not undertaken hedging activity but may do so if such arrangements appear to be a suitable solution to minimising any currency exposures, especially for earnings in currencies other than sterling.
Liquidity risk
The company manages its own cash and borrowings to maximise interest income and minimise interest expense, whilst ensuring that sufficient liquid resources are available to meet operating needs. The company does not hold client money while insurers’ funds are held with approved banks in currencies appropriate to the settlement requirements of the business.
Interest rate risk
The company could become exposed to interest rate risk on bank deposits if interest rates recover.
Foreign currency risk
The company’s principal foreign currency exposure risk potential could arise from income earned on trading operations with customers and suppliers in non sterling currency. Current and anticipated insurance business is predominantly denominated in sterling.
Credit risk
The company acts as an agent for insurers; while suitable vetting arrangements are operated to verify the credit worthiness of insurance brokers from whom business predominantly comes, the risk of non-payment rests largely with others. Investment of cash surpluses are made with banks which are considered by the Board to have adequate credit ratings to achieve the prudential standards applicable in our business.
RESOLUTION UNDERWRITING PARTNERSHIP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
Future developments
During the year the Company sold its interest in Dinghy UK Limited to reduce its Appointed Representatives to two, Accelerate Underwriting Limited ("AUL") and Falcon MGA Services Limited ("FMGAS"). In line with its budgets AUL became profitable during the year and continues to be so during 2020. FMGAS did not achieve its budgets in 2019 and reported a loss in the year. It is anticipated that it will become profitable and return a positive cashflow during 2020.
Auditor
PKF Littlejohn LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Mr C. G. Harman
Director
23 December 2020
RESOLUTION UNDERWRITING PARTNERSHIP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 3 -
The Directors are responsible for preparing the Directors’ 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 prepared the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102).
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 judgments 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 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.
RESOLUTION UNDERWRITING PARTNERSHIP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF RESOLUTION UNDERWRITING PARTNERSHIP LIMITED
- 4 -
Opinion
We have audited the financial statements of Resolution Underwriting Partnership Limited (the 'company') for the year ended 31 December 2019 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and notes to the financial statements, 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 FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 December 2019 and of its loss for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
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 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
I
n connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the directors' report has been prepared in accordance with applicable legal requirements.
RESOLUTION UNDERWRITING PARTNERSHIP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF RESOLUTION UNDERWRITING PARTNERSHIP LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you 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; or
-
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and take advantage of the small companies exemption from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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
Financial Reporting Council’s website at: http://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 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.
Neil Coulson (Senior Statutory Auditor)
for and on behalf of PKF Littlejohn LLP
23 December 2020
Chartered Accountants
Statutory Auditor
15 Westferry Circus
London
E14 4HD
RESOLUTION UNDERWRITING PARTNERSHIP LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 6 -
2019
2018
£
£
Turnover
237,520
237,430
Administrative expenses
(342,985)
(204,011)
Operating (loss)/profit
(105,465)
33,419
Interest receivable and similar income from group companies
42,218
42,374
(Loss)/profit before taxation
(63,247)
75,793
Taxation
(1,931)
(8,051)
(Loss)/profit for the financial year
(65,178)
67,742
RESOLUTION UNDERWRITING PARTNERSHIP LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 7 -
2019
2018
Notes
£
£
£
£
Fixed assets
Intangible assets
4
102,588
91,490
Tangible assets
5
1,293
1,277
103,881
92,767
Current assets
Debtors
7
1,167,076
1,073,094
Cash at bank and in hand
1,701
21,290
1,168,777
1,094,384
Creditors: amounts falling due within one year
8
(478,710)
(328,025)
Net current assets
690,067
766,359
Total assets less current liabilities
793,948
859,126
Creditors: amounts falling due after more than one year
9
(748,373)
(748,373)
Net assets
45,575
110,753
Capital and reserves
Called up share capital
10
250,000
250,000
Profit and loss reserves
(204,425)
(139,247)
Total equity
45,575
110,753
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 23 December 2020 and are signed on its behalf by:
Mr C. G. Harman
Director
Company Registration No. 05104119
RESOLUTION UNDERWRITING PARTNERSHIP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
- 8 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2018
250,000
(206,989)
43,011
Year ended 31 December 2018:
Profit and total comprehensive income for the year
-
67,742
67,742
Balance at 31 December 2018
250,000
(139,247)
110,753
Year ended 31 December 2019:
Loss and total comprehensive income for the year
-
(65,178)
(65,178)
Balance at 31 December 2019
250,000
(204,425)
45,575
RESOLUTION UNDERWRITING PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 9 -
1
Accounting policies
Company information
Resolution Underwriting Partnership Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Number One, Vicarage Lane, Stratford, London, England, E15 4HF.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The Company is a managing general agent (“MGA”) underwriting insurance on behalf of major insurance companies and Lloyd’s syndicates (“Carriers”). The business of insurance underwriting is conducted through Appointed Representatives (“AR(s)”) of the Company, for which it acts as the regulated entity. Currently the Company has two ARs, being Accelerate Underwriting Limited (“AUL”) and Falcon MGA Services Limited (FMGAS”). As noted in the Directors Report, the Company is a wholly owned subsidiary of Resolution Underwriting Holdings Limited (“RUHL”).
As at 31 December 2019 the Company has advanced long term loans of £700,000 to AUL.
The directors have considered the outlook for the Company, which they consider to be positive and the budgets prepared for the period to 31 December 2021 have been prepared on a prudent basis and indicate that, other than in the case of FMGAS, little or no further funding will be required from RUPL.
As a regulated entity, the Company is required to report its regulatory capital surplus or deficit to the UK Financial Conduct Authority (“FCA”) quarterly to confirm the solvency position of the Company. The Company has a capital surplus at the year-end and this position is monitored regularly through the review of monthly management accounts and the assessment of future profit and loss, and cash flow forecasts.
Following the year-end, the outbreak of Covid-19 has resulted in major disruptions throughout the United Kingdom and the whole world, generally affecting both people and the business world. The situation is continually evolving and the current restrictions on movement initially led to a slowdown in trade which will inevitably lead to lower incomes across many sectors of business. This will include the purchase of insurance although, aside from the business written by FMGAS, none of the ARs write classes of insurance that are unusually vulnerable to Covid.
The Company has assessed the effects of Covid-19 on its own business as follows:
• The effect on its staff and their continuing ability to work safely and efficiently
• The effect on its customers and insurance Carriers
• The potential reduction of the Company’s cost base
• Re-forecast budgets and cashflows
RESOLUTION UNDERWRITING PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 10 -
Currently the employees of each AR have mostly been working from home. They all have full access to the various software systems and lines of communication and are working effectively and efficiently and continuing to provide swift service to their client base. They have contacted their major customers to assess the impact of the virus on their own businesses and have also contacted the insurance Carriers. Somewhat surprisingly, the most important impact of Covid so far has been significantly to increase the numbers of enquiries for insurance and the number of quotes being requested on new business. This has much to do with the continuing levels of service that the ARs have offered and the fact that many insurance companies have been struggling to offer any sort of decent levels of service.
Following the impact of Covid, the underlying businesses revisited their budget forecasts for 2020 and 2021. Based on these re-forecasts, which have been prepared on a prudent basis, the Directors have considered the outlook for the Company and believe that the Company will be profitable during 2020 and 2021. Accordingly, the financial statements of the Company as at 31 December 2019 have been prepared on a going concern basis. Additionally, the Company has received confirmation from its parent company RUHL that it will continue to support the Company’s operations for the foreseeable future.
The directors have considered whether the loan to AUL is recoverable and have concluded that the underlying strengths of the business of AUL are such that the loans and interest will be paid in full.
The directors are confident about the Company's prospects but, notwithstanding the prudent forecasts, they recognise that the success or otherwise of it being able to meet its forecasts is inevitably uncertain.
1.3
Turnover
The
C
ompany generates revenue principally from commissions
, profit commissions
and fees associated with underwriting and administering insurance contracts
.
Brokerage, commission and fees not due until after the year end are recognised on the inception of the insurance contracts concerned, which is when the underwriting services have been substantially completed. Adjustments to commission and fees are recognised when they can be ascertained with reasonable certainty, which is normally when the amounts concerned are advised or confirmed by the relevant third parties
.
Profit commissions are receivable based upon the underwriting performance of certain schemes. They are recognised when the Company can be certain that the commission will be paid and the amount can be reasonably accurately ascertained.
1.4
Intangible fixed assets
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:
Computer software development costs
5 years straight line
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
RESOLUTION UNDERWRITING PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 11 -
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:
Computer equipment
4 years straight line
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
.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.7
Impairment of fixed assets
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.
1.8
Cash and cash equivalents
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.
RESOLUTION UNDERWRITING PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 12 -
1.9
Financial instruments
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
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.
Classification of financial liabilities
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
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
paymen
ts 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. A
m
ounts 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.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
RESOLUTION UNDERWRITING PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 13 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred taxation is provided on the liability method to take account of timing differences between the treatment of certain items for accounts purposes and their treatment for tax purposes. Tax deferred or accelerated is accounted for in respect of all material timing differences.
1.12
Insurance assets and liabilities
In accordance with the Statement of Accounting Principles, the company recognises insurance debtors and fiduciary cash balances only to the extent that the company has a material economic interest in those balances. Accordingly, where insurance debtors and fiduciary cash are not recognised in the company's balance sheet, insurance creditors relating to those insurance debtors and fiduciary cash are also not included in the company's balance sheet. The net amount that will be receivable by the company from the fiduciary accounts, representing only that element of the insurance debtors and fiduciary cash that is commissions, fees or interest due to the company, is shown under debtors.
1.13
Current tax, including UK corporation tax, is provided at amounts expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
|
2
Auditor's remuneration
2019
2018
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
13,152
13,794
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 3
(2018 - 4).
RESOLUTION UNDERWRITING PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 14 -
4
Intangible fixed assets
Computer software
£
Cost
At 1 January 2019
131,203
Additions
46,751
At 31 December 2019
177,954
Amortisation and impairment
At 1 January 2019
39,713
Amortisation charged for the year
35,653
At 31 December 2019
75,366
Carrying amount
At 31 December 2019
102,588
At 31 December 2018
91,490
5
Tangible fixed assets
Computer equipment
£
Cost
At 1 January 2019
4,808
Additions
738
At 31 December 2019
5,546
Depreciation and impairment
At 1 January 2019
3,531
Depreciation charged in the year
722
At 31 December 2019
4,253
Carrying amount
At 31 December 2019
1,293
At 31 December 2018
1,277
6
Fixed asset investments
The company owns 10,000 shares at a par value of £0.000001 in Holdsure Limited, representing 100% of the share capital.
RESOLUTION UNDERWRITING PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 15 -
7
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
408,188
318,436
Amounts due from related parties
630,630
265,017
Other debtors
6,341
11,308
1,045,159
594,761
Amounts falling due after more than one year:
Amounts due from related parties
121,917
478,333
Total debtors
1,167,076
1,073,094
8
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
17,202
7,548
Amounts owed to group undertakings
394,960
26,726
Corporation tax
4,384
8,051
Other taxation and social security
-
308
Other creditors
-
250,000
Accruals and deferred income
62,164
35,392
478,710
328,025
9
Creditors: amounts falling due after more than one year
2019
2018
Notes
£
£
Borrowings from related parties
748,373
748,373
As at 31 December 2019, subordinated loans of £748,373 (2018: £748,373) were due to the parent company, Resolution Underwriting Holdings Limited.
These amounts can only be repaid dependent upon the regulatory solvency position of the company. Of this, £370,000 (£2018: £370,000) could be payable within one year if the company's solvency position permitted.
RESOLUTION UNDERWRITING PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 16 -
10
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
250,000 Ordinary shares of £1 each
250,000
250,000
250,000
250,000
RESOLUTION UNDERWRITING PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 17 -
11
Related party transactions
Mr C G Harman and Mr N H Topche are also directors in Accelerate Underwriting Limited, an Appointed Representative of the company and an associate of the parent company, Resolution Underwriting Holdings Limited. During the year, the Company incurred commission of £1,673,922 (2018: £1,222,668) relating to this agreement with Accelerate Underwriting Limited. As at 31 December 2019, the Company owed £
353,951
(2018: £19,190) to Accelerate Underwriting Limited in respect of this agreement.
As at 31 December 2019, the Company was owed £700,000 (2018: £700,000) from Accelerate Underwriting Limited in respect of these loans, which £700,000 (2018: £700,000) is due in accordance with the loan agreement. These loans are interest bearing at 6% and totalled £42,000 (2018: £42,000) for the year. As at 31 December 2019, the Company was owed interest of £31,500 (2018: £17,500) in respect of these loans.
The Company incurred charges of £8,000 (2019: £8,000) in respect of the rent of desk space during the year from Accelerate Underwriting Limited. As at 31 December 2019, the Company owed £5,334 (2018: £6,667) to Accelerate Underwriting Limited in respect of these charges. As at 31 December 2019, the Company owed £nil (2018: £868) to Accelerate Underwriting Limited in respect of settled expenses.
Mr C G Harman and Mr N H Topche are also directors in Falcon MGA Services Limited, an Appointed Representative of the company and an associate of the parent company, Resolution Underwriting Holdings Limited. During the year, the Company incurred commission of £16,319 (2018: £nil) relating to this agreement. As at 31 December 2019, the Company owed £9,943 (2018: £nil) to Falcon MGA Services Limited in respect of this agreement.
The Company charged Falcon MGA Services Limited £7,000 (2018: £6,437) for the rent of desk space, of which £
21,047
(2018: £6,437) was owed to the Company as at 31 December 2019.
12
Parent company
The company is wholly owned and controlled by Resolution Underwriting Holdings Limited, a company incorporated and domiciled in England. The address of the registered office is 1 Vicarage Lane, London E15 4HF.
As at 31 December 2019, the company owed £779,439 (2018: £748,373) to Resolution Underwriting Holdings Limited. Of this, £31,066 (2018: £nil) in due in under one year with no interest or repayment terms and £748,373 (2018: £748,373) relates to subordinated loans to the company.
Mr C G Harman, Mr R C Hayes and Mr N H Topche are also directors in Resolution Underwriting Holdings Limited.
The interest at a base rate of 3.5% on £308,373 of the subordinated debt has been waived in 2019 and 2018 and the remaining debt of £440,000 (2018: £440,000) is non-interest bearing.
2019-12-31
2019-01-01
false
CCH Software
CCH Accounts Production 2020.200
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Mr R. Hayes
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