Verisk Analytics Limited - Limited company accounts 16.3

REGISTERED NUMBER: 01924205 (England and Wales)

VERISK ANALYTICS LIMITED

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2015

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Statement of Comprehensive Income

5

Balance Sheet

6

Statement of Changes in Equity

7

Notes to the Financial Statements

8

DIRECTORS:

R Della Rocca

J Pendle

N Hays

SECRETARY:

K Thompson

REGISTERED OFFICE:

4th Floor

40 Gracechurch Street

London

EC3V 0ET

BUSINESS ADDRESS:

Linea House

Harvest Crescent

Ancells Road

Fleet

Hampshire

GU51 2UY

REGISTERED NUMBER:

01924205 (England and Wales)

AUDITORS:

Hartley Fowler LLP

Statutory Auditors

Chartered Accountants

44 Springfield Road

Horsham

West Sussex

RH12 2PD

The directors present their report with the financial statements of the company for the year ended 31 December 2015.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the marketing of specialist software for the

insurance industry.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2015 to the date of this

report.

R Della Rocca

J Pendle

N Hays

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors 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). 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;

-	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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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 or she

ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to

establish that the company's auditors are aware of that information.

AUDITORS

Clark Brownscombe Limited, the company's auditors, merged with Hartley Fowler LLP on 1st December 2015,

following which they resigned as the Company's auditor and confirmed to the company that, in accordance with

section 519 of the Companies Act 20016, there are no circumstances in connection with its resignation which it

considers need to be brought to the attention of the Company's members or creditors. The Directors of the Company

would like to thank Clark Brownscombe Limited for the service provided to the Company in the past. Hartley Fowler

LLP has been appointed as auditors to the Company in their place, the appropriate arrangements have been taken to

formalise this appointment in the absence of an Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to

small companies.

ON BEHALF OF THE BOARD:

R Della Rocca - Director

8 May 2017

We have audited the financial statements of Verisk Analytics Limited for the year ended 31 December 2015 on pages

five to fifteen. The financial reporting framework that has been applied in their preparation is 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'.

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 a Report of the Auditors 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.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors.

Scope of the audit of the financial statements

A description of the scope of an audit of financial statements is provided on the FRC's website at

www.frc.org.uk/apb/scope/private.cfm.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2015 and of its profit 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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Report of the Directors for the financial year for which the financial

statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception

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 from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

M P Cleghorn ACA (Senior Statutory Auditor)

for and on behalf of Hartley Fowler LLP

Statutory Auditors

Chartered Accountants

44 Springfield Road

Horsham

West Sussex

RH12 2PD

8 May 2017

TURNOVER

6,812,228

6,287,291

Cost of sales

3,326,611

2,956,033

GROSS PROFIT

3,485,617

3,331,258

Administrative expenses

2,445,383

1,941,232

1,040,234

1,390,026

Other operating income

843,263

520,299

OPERATING PROFIT

3

1,883,497

1,910,325

Interest receivable and similar income

1,563

2,698

Interest payable and similar charges

(5,483

)

(1,972

)

PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION

1,879,577

1,911,051

Tax on profit on ordinary activities

4

43,627

440,520

PROFIT FOR THE FINANCIAL YEAR

1,835,950

1,470,531

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,835,950

1,470,531

FIXED ASSETS

Tangible assets

6

822,018

1,234,804

Investments

7

20,665,610

20,665,610

21,487,628

21,900,414

CURRENT ASSETS

Debtors

8

2,497,259

1,686,646

Cash at bank

1,614,977

1,822,881

4,112,236

3,509,527

CREDITORS

Amounts falling due within one year

9

2,801,160

4,424,343

NET CURRENT ASSETS/(LIABILITIES)

1,311,076

(914,816

)

TOTAL ASSETS LESS CURRENT LIABILITIES

22,798,704

20,985,598

PROVISIONS FOR LIABILITIES

12

8,428

31,272

NET ASSETS

22,790,276

20,954,326

CAPITAL AND RESERVES

Called up share capital

13

200

200

Share premium

14

19,131,826

19,131,826

Retained earnings

14

3,658,250

1,822,300

SHAREHOLDERS' FUNDS

22,790,276

20,954,326

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors on 8 May 2017 and were signed on its behalf by:

R Della Rocca - Director

J Pendle - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2014

100

351,769

-

351,869

Changes in equity

Issue of share capital

100

-

19,131,826

19,131,926

Total comprehensive income

-

1,470,531

-

1,470,531

Balance at 31 December 2014

200

1,822,300

19,131,826

20,954,326

Changes in equity

Total comprehensive income

-

1,835,950

-

1,835,950

Balance at 31 December 2015

200

3,658,250

19,131,826

22,790,276

1.	COMPANY INFORMATION

Verisk Analytics Limited "the company" is a private Company limited by shares incorporated in England and

Wales. The registered office is 4th Floor, 40 Gracechurch Street, London, EC3V 0ET.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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"), the requirements of the Companies Act 2006 as

applicable to companies subject to the small companies regime and under the historical cost convention. The

disclosure requirement of section 1A of FRS102 have been applied other than where additional disclosure is

required to show a true and fair view.

Monetary amounts in these financial statements are rounded to the nearest £1, except where otherwise

indicated. The financial statements are presented in sterling which is also the functional currency of the

company

First time adoption of FRS 102

These financial statements are the first financial statements the Company has prepared in accordance with

Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of

Ireland' (FRS 102) as applied to smaller entities by the adoption of section 1A of FRS 102. The financial

statements of the Company for the year ended 31 December 2014 were prepared in accordance with Financial

Reporting Standard for Smaller Entities (effective April 2008) (FRSSE).

Some of the FRS 102 recognition, measurement, presentation and disclosure requirements and accounting

policy choices differ from FRSSE. Consequently, the Directors have amended certain accounting policies to

comply with FRS 102. The Directors have also taken advantage of certain exemptions from the requirements

of FRS 102 permitted by FRS 102 Chapter 35 'Transition to this FRS'.

The reported financial position and financial performance for the previous year are not affected by the

transition to FRS 102.

Financial reporting standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial

statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of

Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Preparation of consolidated financial statements

The financial statements contain information about Verisk Analytics Limited as an individual company and do

not contain consolidated financial information as the parent of a group. The company is exempt under Section

401 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and

its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its

parent, Verisk Analytics, Inc., a company registered in United States of America.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

Turnover

Turnover represents net invoiced sales of goods and services supplied, excluding value added tax, on the basis

set out below.

The Company recognises software license revenue on delivery, provided all significant obligations have been

met, persuasive evidence of an agreement exists, fees are fixed or determinable, collections are probable,

objective evidence of fair value for all undelivered elements has been established, and the Company is not

involved in significant production, customisation, or modification of the software or services that are essential

to the functionality of the software. The Company recognises software license revenue pro-rata over the

duration of the license where objective evidence of fair value for all undelivered elements cannot be

established.

Revenues from multiple element arrangements are allocated to each element based on the relative fair values

of the elements. The determination of fair value is based on objective evidence that is specific to our

business.

Other Income

Rental income on assets leased under operating leases is recognised on a straight line basis over the lease

term and is presented within other operating income.

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.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful

life.

Improvements to property - over the lease term

Fixtures and fittings - Straight line over 20 years

Computer equipment - 25% on cost

Fixed asset investments

Interests in a subsidiary is 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 the income statement.

Taxation

The tax expense represents the sum of the current tax expense and deferred tax expense. Current tax assets

are recognised when tax paid exceeds the tax payable.

Current and deferred tax is charged or credited to the profit or loss, except when it relates to items charged or

credited to other comprehensive income or equity, when the tax follows the transaction or event it relates to

and is also charged or credited to other comprehensive income, or equity.

Current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities are offset, if

and only if, there is a legally enforceable right to set off the amounts and the entity intends either to settle on

the net basis or to realise the asset and settle the liability simultaneously.

Current tax is based on taxable profit for the year. Taxable profit differs from total comprehensive income

because it excludes items of income or expense that are taxable or deductible in other periods. Current tax

assets and liabilities are measured using tax rates that have been enacted or substantively enacted by the

reporting period.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a

right to pay less tax in the future have occurred at the balance sheet date. Timing differences are differences

between the company's taxable profits and its results as stated in the financial statements that arise from the

inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in

the financial statements.

Deferred tax is measured at the average tax rates that are expected to apply in the periods in which timing

differences are expected to reverse, based on tax rates and laws that have been enacted or substantively

enacted by the balance sheet date. Deferred tax is measured on a non-discounted basis.

Foreign currencies

Transactions in currencies other than the functional currency (foreign currency) are initially recorded at the

exchange rate prevailing on the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling

at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at

the rate ruling at the date or the transaction, or, if the asset or liability is measured at fair value, the rate

when that fair value was determined.

All translation differences are taken to profit or loss, except to the extent that they relate to gains or losses on

non-monetary items recognised in other comprehensive income, when the related translation gain or loss is

also recognised in other comprehensive income.

Leases

Leases are operating leases and the annual rental are charged to the profit and loss account on a straight line

basis over the lease term.

Rental income from assets leased under operating leases is recognised on a straight line basis over the term of

the lease. Rent free periods or other incentives given to the lessee are accounted for as a reduction to the

rental income and recognised on a straight line basis over the lease term.

Retirement benefits

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.

For defined contribution schemes the amount charged to profit or loss is the contributions payable in the year.

Differences between contributions payable in the year and contributions actually paid are shown as either

accruals or prepayments.

Employee Benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are

required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement, if material, is recognised in the period in which the employee's

services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed

to terminate the employment of an employee or to provide termination benefits.

Share based payments

Verisk Analytics Inc., the ultimate parent company, grants share options to certain employees.

For cash-settled share based payments the goods or services received are measured at fair value with a

corresponding liability which is remeasured to fair value at each reporting date. Changes in fair value are

recognised through the profit and loss account.

3.	OPERATING PROFIT

The operating profit is stated after charging:

2015

2014

as restated

£

£

Depreciation - owned assets

526,312

511,114

Auditors' remuneration

10,950

9,000

Foreign exchange differences

870

805

Pension costs

132,676

107,424

Operating leases - land & buildings

319,861

445,445

Directors' remuneration and other benefits etc

181,894

174,297

4.

TAXATION

Analysis of the tax charge

The tax charge on the profit on ordinary activities for the year was as follows:

2015

2014

as restated

£

£

Current tax:

UK corporation tax

106,637

430,239

Underprovision in earlier year

-

159

Overprovision in earlier years

(40,166

)

-

Total current tax

66,471

430,398

Deferred tax

(22,844

)

10,122

Tax on profit on ordinary activities

43,627

440,520

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is

explained below:

2015

2014

as restated

£

£

Profit on ordinary activities before tax

1,879,577

1,911,051

Profit on ordinary activities multiplied by the standard rate of corporation tax in the UK of 20.250% (2014 - 21.500%)

380,614

410,876

Effects of:

Expenses not deductible for tax purposes

225

82

Depreciation in excess of capital allowances

51,554

19,418

Adjustments to tax charge in respect of previous periods

(40,166

)

-

Timing differences

(17

)

(137

)

Deferred Tax

(22,844

)

10,281

Group Relief

(325,739

)

-

Total tax charge

43,627

440,520

5.	PRIOR YEAR ADJUSTMENT

On 8 December 2014, the company acquired shares of Maplecroft.Net Limited for £20,665,610. Investments of

£19,375,916 were recognised in 2014 accounts instead of £20,665,610. A prior year adjustment of £1,289,694

has been made by debiting the investments and crediting amounts due from Maplecroft.Net Limited. A prior

year adjustment has no impact on statement of comprehensive income for the current and previous year.

6.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

and

Computer

property

fittings

equipment

Totals

£

£

£

£

COST

At 1 January 2015

823,030

239,911

1,236,915

2,299,856

Additions

-

976

145,812

146,788

Disposals

(39,132

)

-

-

(39,132

)

At 31 December 2015

783,898

240,887

1,382,727

2,407,512

DEPRECIATION

At 1 January 2015

130,237

53,744

881,071

1,065,052

Charge for year

156,775

47,554

321,983

526,312

Eliminated on disposal

(5,870

)

-

-

(5,870

)

At 31 December 2015

281,142

101,298

1,203,054

1,585,494

NET BOOK VALUE

At 31 December 2015

502,756

139,589

179,673

822,018

At 31 December 2014

692,793

186,167

355,844

1,234,804

7.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2015

and 31 December 2015

20,665,610

NET BOOK VALUE

At 31 December 2015

20,665,610

At 31 December 2014

20,665,610

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Maplecroft.Net Limited

Nature of business: Global risk analytics

%

Class of shares:

holding

Ordinary £0.01 A shares

100.00

2015

2014

£

£

Aggregate capital and reserves

(443,503

)

366,474

Loss for the year

(809,977

)

(945,669

)

The registered office of Maplecroft.Net Limited is:

1 Henry Street

Bath

BA1 1JS

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2015

2014

as restated

£

£

Trade debtors

819,387

880,623

Amounts owed by group undertakings

1,379,417

697,356

Other debtors

298,455

108,667

2,497,259

1,686,646

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2015

2014

as restated

£

£

Bank loans and overdrafts (see note 10)

-

137

Trade creditors

301,892

123,420

Amounts owed to group undertakings

647,603

2,118,066

Taxation and social security

348,726

754,727

Other creditors

1,502,939

1,427,993

2,801,160

4,424,343

10.

LOANS

An analysis of the maturity of loans is given below:

2015

2014

as restated

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

-

137

11.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2015

2014

as restated

£

£

Within one year

741,128

741,128

Between one and five years

2,363,781

3,104,909

3,104,909

3,846,037

12.	PROVISIONS FOR LIABILITIES

2015

2014

as restated

£

£

Deferred tax

Accelerated capital allowances

8,428

31,272

Deferred

tax

£

Balance at 1 January 2015

31,272

Accelerated capital allowances

(22,844

)

Balance at 31 December 2015

8,428

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2015

2014

value:

as restated

£

£

200

Ordinary

£1

200

200

14.

RESERVES

Retained

Share

earnings

premium

Totals

£

£

£

At 1 January 2015

1,822,300

19,131,826

20,954,126

Profit for the year

1,835,950

1,835,950

At 31 December 2015

3,658,250

19,131,826

22,790,076