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REGISTERED NUMBER:
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REPORT OF THE DIRECTORS AND |
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AUDITED FINANCIAL STATEMENTS FOR THE PERIOD 1 APRIL 2019 TO 31 DECEMBER 2019 |
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FOR
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EUNA UNDERWRITING LTD |
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REGISTERED NUMBER:
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REPORT OF THE DIRECTORS AND |
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AUDITED FINANCIAL STATEMENTS FOR THE PERIOD 1 APRIL 2019 TO 31 DECEMBER 2019 |
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FOR
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EUNA UNDERWRITING LTD |
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EUNA UNDERWRITING LTD (REGISTERED NUMBER: 09154730)
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CONTENTS OF THE FINANCIAL STATEMENTS
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FOR THE PERIOD 1 APRIL 2019 TO 31 DECEMBER 2019
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Page
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Company Information
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1
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Report of the Directors
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2
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Report of the Independent Auditors
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4
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Income Statement
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6
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Balance Sheet
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7
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Notes to the Financial Statements
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8
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EUNA UNDERWRITING LTD
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COMPANY INFORMATION
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FOR THE PERIOD 1 APRIL 2019 TO 31 DECEMBER 2019
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DIRECTORS:
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SECRETARY:
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REGISTERED OFFICE:
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REGISTERED NUMBER:
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AUDITORS:
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Tower Bridge House
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St Katharine’s Way
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London
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E1W 1DD
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EUNA UNDERWRITING LTD (REGISTERED NUMBER: 09154730)
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REPORT OF THE DIRECTORS
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FOR THE PERIOD 1 APRIL 2019 TO 31 DECEMBER 2019
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Accelerant Acquisitions SPV3 Ltd acquired all the share capital of Euna Underwriting Ltd on 23 October 2019.
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PRINCIPAL ACTIVITY
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The principal activity of the company in the period under review was that of a Managing General Agent company. |
Following the company's acquisition, the company changed its accounting reference from 31 March to 31 December to |
align with the wider Accelerant group year end. |
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REVIEW OF BUSINESS
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With a strong and experienced underwriting team at its core Euna continues to deliver positive and profitable growth for
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its shareholders and capacity partners and is well positioned to maximise the potential opportunities which may come
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from a hardening market.
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Covid-19
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On 31 December 2019 a pneumonia of unknown cause was detected and reported to the World Health Organisation
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("WHO"); this virus was later named Coronavirus (COVID-19). The outbreak was declared a Public Health Emergency
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of International Concern on 30 January 2020 and on 12 March 2020 the WHO officially declared the outbreak a
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pandemic.
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The uncertainty as to the future impact on the Company of the Coronavirus pandemic has been considered as part of the
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Company's adoption of the going concern basis. In performing their assessment of the appropriateness of the going
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concern basis, the Directors have assessed the current impact of the Coronavirus pandemic and concluded that the
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Company will not be materially impacted by the pandemic and that it will be able to continue its principal activity as a
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Managing General Agent company.
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Going concern
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The Directors intend the Company's current principal activities to remain unchanged for the foreseeable future. The
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results for the period are as set out in the audited statement of comprehensive income. The uncertainty as to the future
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impact on the Company of the recent Covid-19 outbreak in particular has been considered as part of the Company's
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adoption of the going concern basis. To date, the Directors have not observed any material impact on the Company's
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principal activities due to Covid-19. There is a reasonable expectation that the Company will continue in operational
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existence for the foreseeable future. For this reason the Directors adopt the going concern basis in preparing the
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financial statements.
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DIRECTORS
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Other changes in directors holding office are as follows:
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STATEMENT OF DIRECTORS' RESPONSIBILITIES
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EUNA UNDERWRITING LTD (REGISTERED NUMBER: 09154730)
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REPORT OF THE DIRECTORS
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FOR THE PERIOD 1 APRIL 2019 TO 31 DECEMBER 2019
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STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
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So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act |
2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken |
as a director in order to make himself aware of any relevant audit information and to establish that the company's |
auditors are aware of that information. |
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AUDITORS
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The previous auditors, Anstey Bond LLP, have resigned and the new auditors, Mazars LLP, will be proposed for
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appointment at the forthcoming Annual General Meeting.
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This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small
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companies.
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ON BEHALF OF THE BOARD:
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
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EUNA UNDERWRITING LTD
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Opinion
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We have audited the financial statements of EUNA Underwriting Limited (the 'company') for the period from 01 April |
2019 to 31 December 2019 which comprise Income Statement, Balance Sheet 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). |
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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 profit for the period
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. |
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Basis for opinion
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We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.
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Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the
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financial statements section of our report. We are independent of the company in accordance with the ethical
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requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard,
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and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit
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evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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Emphasis of matter - Impact of the outbreak of COVID-19 on financial statements
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In forming our opinion on the company financial statements, which is not modified, we draw your attention to the
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directors' view on the impact of the COVID-19 as disclosed on page 2, and the consideration in the going concern basis
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of preparation on page 2 and non- adjusting post balance sheet events on page 12.
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Since the balance sheet date there has been a global pandemic from the outbreak of COVID-19, The potential impact of
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COVID-19 became significant in March 2020 and is causing widespread disruption to normal patterns of business
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activity across the world, including the UK.
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The full impact following the recent emergence of the COVID-19 is still unknown. It is therefore not currently possible
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to evaluate all the potential implications to the company's trade, customers, suppliers and the wider economy.
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Conclusions relating to going concern
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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. |
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Other information
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The directors are responsible for the other information. The other information comprises the information included in the
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annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial
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statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do
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not express any form of assurance conclusion thereon.
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In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing
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so, consider whether the other information is materially inconsistent with the financial statements or our knowledge
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obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or
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apparent material misstatements, we are required to determine whether there is a material misstatement in the financial
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statements or a material misstatement of the other information. If, based on the work we have performed, we conclude
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that there is a material misstatement of this other information, we are required to report that fact.
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We have nothing to report in this regard.
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Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
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-the information given in the Directors' Report for the financial year for which the financial statements are prepared is
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consistent with the financial statements; and
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- the Directors' Report have been prepared in accordance with applicable legal requirements.
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
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EUNA UNDERWRITING LTD
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Matters on which we are required to report by exception
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In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit,
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we have not identified material misstatements in the Report of the Directors.
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We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to
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report to you if, in our opinion:
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- adequate accounting records have not been kept, or returns adequate for our audit have not been received from
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branches not visited by us; or
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- the financial statements are not in agreement with the accounting records and returns; or
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- certain disclosures of directors' remuneration specified by law are not made; or
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- we have not received all the information and explanations we require for our audit.
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Responsibilities of directors
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As explained more fully in the directors' responsibilities statement set out on page 2, the directors are responsible for the
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preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal
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control as the directors determine is necessary to enable the preparation of financial statements that are free from
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material misstatement, whether due to fraud or error.
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In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a
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going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
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accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic
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alternative but to do so.
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Our responsibilities for the audit of the financial statements
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Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
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material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion.
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Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
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ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
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considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
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decisions of users taken on the basis of these financial statements.
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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting
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Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.
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Use of the audit report
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This report is made solely to the company's members as a body in accordance with Chapter 3 of Part 16 of the
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Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those
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matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by
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law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body
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for our audit work, for this report, or for the opinions we have formed.
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for and on behalf of
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Tower Bridge House
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St Katharine’s Way
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London
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E1W 1DD
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EUNA UNDERWRITING LTD (REGISTERED NUMBER: 09154730)
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INCOME STATEMENT
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FOR THE PERIOD 1 APRIL 2019 TO 31 DECEMBER 2019
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PERIOD
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1.4.19
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TO
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YEAR ENDED
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31.12.19
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31.3.19
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Notes
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£
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£
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TURNOVER
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Administrative expenses
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(
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)
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(
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)
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OPERATING PROFIT and
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PROFIT BEFORE TAXATION
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Tax on profit
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6
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(
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)
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PROFIT FOR THE FINANCIAL PERIOD
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EUNA UNDERWRITING LTD (REGISTERED NUMBER: 09154730)
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BALANCE SHEET
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31 DECEMBER 2019
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31.12.19
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31.3.19
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Notes
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£
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£
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£
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£
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|
FIXED ASSETS
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Tangible assets
|
7
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CURRENT ASSETS
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Debtors
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8
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Cash at bank
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CREDITORS
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Amounts falling due within one year
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9
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NET CURRENT ASSETS
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TOTAL ASSETS LESS CURRENT
LIABILITIES
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CAPITAL AND RESERVES
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Called up share capital
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Retained earnings
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SHAREHOLDERS' FUNDS
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The financial statements were approved by the Board of Directors on
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EUNA UNDERWRITING LTD (REGISTERED NUMBER: 09154730)
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NOTES TO THE FINANCIAL STATEMENTS
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FOR THE PERIOD 1 APRIL 2019 TO 31 DECEMBER 2019
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1.
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STATUTORY INFORMATION
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Euna Underwriting Ltd is a
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company's registered number and registered office address can be found on the Company Information page.
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2.
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ACCOUNTING POLICIES
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BASIS OF PREPARING THE FINANCIAL STATEMENTS
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TURNOVER AND REVENUE RECOGNITION
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Turnover represents commission and fees earned. Credit is taken for commission at the point at which placement
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services are substantially complete. Commissions on adjustment premiums, binding authorities and treaties are
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recognised when the revenue is confirmed as earned. Fees charged for services are recognised when earned.
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TANGIBLE FIXED ASSETS
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Plant and machinery is initially recognised at cost and then subsequently stated at historical cost less |
depreciation. Depreciation is provided at the following annual rates in order to write off the cost less estimated |
residual value of each asset over its estimated useful economic life. |
33% of cost for plant and machinery. |
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TAXATION
|
Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to |
the extent that it relates to items recognised in other comprehensive income or directly in equity. |
|
Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or |
substantively enacted by the balance sheet date. |
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DEFERRED TAX
|
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance |
sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from |
those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that |
have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the |
timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they |
will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS
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The company operates a defined contribution pension scheme. Contributions payable to the company's pension |
scheme are charged to profit or loss in the period to which they relate. |
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CASH AND CASH EQUIVALENTS
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Cash and cash equivalents are included in the balance sheet at cost. Cash and cash equivalents comprise of cash
|
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within the bank.
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EUNA UNDERWRITING LTD (REGISTERED NUMBER: 09154730)
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NOTES TO THE FINANCIAL STATEMENTS - continued
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FOR THE PERIOD 1 APRIL 2019 TO 31 DECEMBER 2019
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2.
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ACCOUNTING POLICIES - continued
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INSURANCE BROKING DEBTORS AND CREDITORS
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Insurance intermediaries act as agents in the placement of insurable risks. As such, they are not liable, as
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principal, for amounts arising from such transactions. In recognition of this relationship, debtors from insurance
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intermediary transactions are not included as an asset of the Company. Other than the receivable for brokerage,
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commissions, or fees earned on a transaction, no recognition of the insurance transaction occurs until the
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Company receives cash in respect of the premiums or claims. At that point, a corresponding liability is
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established in favour of the insurer or the cedant, unless the cash is held in trust, in which case neither the cash
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nor the corresponding liability is reflected in the Company's financial statements.
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3.
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EMPLOYEES AND DIRECTORS
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The average number of employees during the period was 8 (in the year ended 31 March 2019 - 6) |
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PERIOD
|
|
|
1.4.19
|
|
|
TO
|
YEAR ENDED
|
|
31.12.19
|
|
31.3.19
|
£
|
£
|
|
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Directors' remuneration
|
|
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The directors of the company are paid by other group companies.
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4.
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OPERATING PROFIT
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The operating profit is stated after charging:
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PERIOD
|
|
|
1.4.19
|
|
|
TO
|
YEAR ENDED
|
|
31.12.19
|
|
31.3.19
|
£
|
£
|
|
|
Depreciation - owned assets
|
|
|
|
|
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5.
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AUDITORS' REMUNERATION
|
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PERIOD
|
|
|
1.4.19
|
|
|
TO
|
YEAR ENDED
|
|
31.12.19
|
|
31.3.19
|
£
|
£
|
|
|
Fees payable to the company's auditors for the audit of the company's
financial statements
|
11,000
|
|
3,900
|
|
|
|
EUNA UNDERWRITING LTD (REGISTERED NUMBER: 09154730)
|
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|
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NOTES TO THE FINANCIAL STATEMENTS - continued
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FOR THE PERIOD 1 APRIL 2019 TO 31 DECEMBER 2019
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6.
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TAXATION
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|
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Analysis of the tax charge/(credit)
|
|
The tax charge/(credit) on the profit for the period was as follows:
|
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PERIOD
|
|
|
1.4.19
|
|
|
TO
|
YEAR ENDED
|
|
31.12.19
|
|
31.3.19
|
£
|
£
|
|
|
Current tax:
|
|
UK corporation tax
|
|
|
(
|
)
|
|
|
Tax on profit
|
|
|
(
|
)
|
|
|
|
UK corporation tax has been charged at
19
% .
|
|
|
RECONCILIATION OF TOTAL TAX CHARGE/(CREDIT) INCLUDED IN PROFIT AND LOSS
|
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The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is
|
|
explained below:
|
|
|
PERIOD
|
|
|
1.4.19
|
|
|
TO
|
YEAR ENDED
|
|
31.12.19
|
|
31.3.19
|
£
|
£
|
|
|
Profit before tax
|
|
|
|
|
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
(2019 -
|
|
|
|
|
|
|
|
Effects of:
|
|
Expenses not deductible for tax purposes
|
|
|
|
|
|
|
Depreciation in excess of capital allowances
|
|
|
|
|
|
|
Utilisation of tax losses
|
|
|
(
|
)
|
|
|
Timing differences
|
395
|
|
-
|
|
|
|
Credit for group relief
|
-
|
|
(270,000
|
)
|
|
|
Credit for deferred tax
|
-
|
|
(3,414
|
)
|
|
|
Total tax charge/(credit)
|
101,495
|
|
(247,940
|
)
|
|
|
EUNA UNDERWRITING LTD (REGISTERED NUMBER: 09154730)
|
|
|
|
NOTES TO THE FINANCIAL STATEMENTS - continued
|
|
|
FOR THE PERIOD 1 APRIL 2019 TO 31 DECEMBER 2019
|
|
|
7.
|
TANGIBLE FIXED ASSETS
|
|
Plant and
|
|
machinery
|
|
etc
|
£
|
|
|
COST
|
|
At 1 April 2019
|
|
|
|
|
Additions
|
|
|
|
|
Disposals
|
(
|
)
|
|
|
At 31 December 2019
|
|
|
|
|
DEPRECIATION
|
|
At 1 April 2019
|
|
|
|
|
Charge for period
|
|
|
|
|
At 31 December 2019
|
|
|
|
|
NET BOOK VALUE
|
|
At 31 December 2019
|
|
|
|
|
At 31 March 2019
|
|
|
|
|
8.
|
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
|
|
|
31.12.19
|
|
31.3.19
|
£
|
£
|
|
|
Trade debtors
|
|
|
|
|
|
|
Other debtors
|
|
|
|
|
|
|
|
|
|
|
|
9.
|
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
|
|
|
31.12.19
|
|
31.3.19
|
£
|
£
|
|
|
Trade creditors
|
|
|
|
|
|
|
Amounts owed to group undertakings
|
|
|
|
|
|
|
Taxation and social security
|
|
|
|
|
|
|
Other creditors
|
|
|
|
|
|
|
|
|
|
|
|
10.
|
ULTIMATE CONTROLLING PARTY
|
|
|
The immediate parent of the Company is Accelerant Acquisition SPV 3 Limited (SPV 3). SPV 3 is a subsidiary
|
|
of Accelerant Distribution Holdings Limited, itself a subsidiary of Accelerant Intermediate Holdings Limited,
|
|
which is both the highest and lowest level of consolidation that includes the results and position of the Company.
|
|
Copies of the Accelerant Intermediate Holdings Limited consolidated financial statements can be obtained from
|
|
the following address: 190 Elgin Avenue, George Town, Grand Cayman.
|
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The ultimate controlling party is Keoni Schwartz, an individual who owns 10% of the funds in which the
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Accelerant group is held, and has 100% of the voting rights in Accelerant Holdings LP..
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EUNA UNDERWRITING LTD (REGISTERED NUMBER: 09154730)
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NOTES TO THE FINANCIAL STATEMENTS - continued
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FOR THE PERIOD 1 APRIL 2019 TO 31 DECEMBER 2019
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11.
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POST BALANCE SHEET EVENT
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Covid-19
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On 31 December 2019 a pneumonia of unknown cause was detected and reported to the World Health
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Organisation ("WHO"); this virus was later named Coronavirus (COVID-19). The outbreak was declared a
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Public Health Emergency of International Concern on 30 January 2020 and on 12 March 2020 the WHO
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officially declared the outbreak a pandemic.
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The Directors have assessed the Financial Reporting Council ("FRC") guidance regarding Coronavirus
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subsequent events and note that there is no record of Coronavirus existing prior to 31 December 2019. As such,
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the Directors have assessed the Coronavirus pandemic to be a non-adjusting post balance sheet event.
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An assessment has been performed of the potential impact of the Covid-19 pandemic on the business. The
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Directors believe that the Company will not be materially impacted by the pandemic and that it will be able to
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continue its principal activity as providing specialist insurance and reinsurance brokerage services. There have
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been no other events subsequent to the statement of financial position date which would materially affect the
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financial statements.
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