30828208 2025-01-01 2025-12-31 30828208 2025-01-01 2025-12-31 2 30828208 2025-01-01 2025-12-31 memberOfBoardIdentifier_executive_board_1 30828208 2025-01-01 2025-12-31 memberOfBoardIdentifier_board_of_director_1 30828208 2025-01-01 2025-12-31 memberOfBoardIdentifier_board_of_director_2 30828208 2025-01-01 2025-12-31 memberOfBoardIdentifier_board_of_director_3 30828208 2025-01-01 2025-12-31 1 30828208 2023-01-01 2023-12-31 30828208 2022-01-01 2022-12-31 30828208 2021-01-01 2021-12-31 30828208 2023-12-31 30828208 2022-12-31 30828208 2021-12-31 30828208 2024-01-01 2024-12-31 30828208 2025-12-31 30828208 2024-12-31 30828208 2025-01-01 fsa:ContributedCapitalMember 30828208 2025-01-01 fsa:ReserveForDevelopmentExpenditureMember 30828208 2025-01-01 fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember 30828208 2025-01-01 fsa:RetainedEarningsMember 30828208 2025-01-01 30828208 2025-01-01 2025-12-31 fsa:ContributedCapitalMember 30828208 2025-01-01 2025-12-31 fsa:ReserveForDevelopmentExpenditureMember 30828208 2025-01-01 2025-12-31 fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember 30828208 2025-01-01 2025-12-31 fsa:RetainedEarningsMember 30828208 2025-12-31 fsa:ContributedCapitalMember 30828208 2025-12-31 fsa:ReserveForDevelopmentExpenditureMember 30828208 2025-12-31 fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember 30828208 2025-12-31 fsa:RetainedEarningsMember 30828208 2025-01-01 fsa:CompletedDevelopmentProjectsMember 30828208 2025-01-01 fsa:DevelopmentProjectsInProgressMember 30828208 2025-01-01 2025-12-31 fsa:CompletedDevelopmentProjectsMember 30828208 2025-01-01 2025-12-31 fsa:DevelopmentProjectsInProgressMember 30828208 2025-12-31 fsa:CompletedDevelopmentProjectsMember 30828208 2025-12-31 fsa:DevelopmentProjectsInProgressMember 30828208 2025-01-01 fsa:FixturesFittingsToolsAndEquipmentMember 30828208 2025-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 30828208 2025-01-01 2025-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 30828208 2025-01-01 fsa:InvestmentsInGroupEnterprisesMember 30828208 2024-01-01 fsa:InvestmentsInGroupEnterprisesMember 30828208 2025-01-01 2025-12-31 fsa:InvestmentsInGroupEnterprisesMember 30828208 2024-01-01 2024-12-31 fsa:InvestmentsInGroupEnterprisesMember 30828208 2025-12-31 fsa:InvestmentsInGroupEnterprisesMember 30828208 2024-12-31 fsa:InvestmentsInGroupEnterprisesMember 30828208 2025-01-01 2025-12-31 relatedEntityIdentifier_sub_1 fsa:SubsidiaryMember 30828208 2025-12-31 relatedEntityIdentifier_sub_1 fsa:SubsidiaryMember 30828208 2025-01-01 2025-12-31 relatedEntityIdentifier_sub_2 fsa:SubsidiaryMember 30828208 2025-12-31 relatedEntityIdentifier_sub_2 fsa:SubsidiaryMember 30828208 2025-01-01 2025-12-31 relatedEntityIdentifier_sub_3 fsa:SubsidiaryMember 30828208 2025-12-31 relatedEntityIdentifier_sub_3 fsa:SubsidiaryMember 30828208 2025-01-01 2025-12-31 relatedEntityIdentifier_sub_4 fsa:SubsidiaryMember 30828208 2025-12-31 relatedEntityIdentifier_sub_4 fsa:SubsidiaryMember 30828208 2025-01-01 2025-12-31 relatedEntityIdentifier_sub_5 fsa:SubsidiaryMember 30828208 2025-12-31 relatedEntityIdentifier_sub_5 fsa:SubsidiaryMember 30828208 2025-01-01 2025-12-31 relatedEntityIdentifier_sub_6 fsa:SubsidiaryMember 30828208 2025-12-31 relatedEntityIdentifier_sub_6 fsa:SubsidiaryMember 30828208 2025-01-01 2025-12-31 relatedEntityIdentifier_sub_7 fsa:SubsidiaryMember 30828208 2025-12-31 relatedEntityIdentifier_sub_7 fsa:SubsidiaryMember 30828208 2025-01-01 2025-12-31 relatedEntityIdentifier_sub_8 fsa:SubsidiaryMember 30828208 2025-12-31 relatedEntityIdentifier_sub_8 fsa:SubsidiaryMember 30828208 2025-01-01 2025-12-31 relatedEntityIdentifier_sub_9 fsa:SubsidiaryMember 30828208 2025-12-31 relatedEntityIdentifier_sub_9 fsa:SubsidiaryMember 30828208 2025-01-01 fsa:DepositsLongtermInvestmentsAndReceivablesMember 30828208 2025-01-01 2025-12-31 fsa:DepositsLongtermInvestmentsAndReceivablesMember 30828208 2025-12-31 fsa:DepositsLongtermInvestmentsAndReceivablesMember iso4217:DKK pure xbrli:pure Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2025-01-01 2024-01-01 2025-12-31 2024-12-31 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Regnskabsklasse C, mellemstor virksomhed Revisionspåtegning true 2026-06-02 Kenneth Nielsen The Executive Board and Board of Directors have today considered and adopted the Annual Report of RiskPoint A/S for the financial year 1 January - 31 December 2025. The Annual Report is prepared in accordance with the Danish Financial Statements Act. In our opinion the Financial Statements give a true and fair view of the financial position at 31 December 2025 of the Company and of the results of the Company operations for 2025. In our opinion, Management's Review includes a true and fair account of the matters addressed in the Review. We recommend that the Annual Report be adopted at the Annual General Meeting. Copenhagen 2026-06-02 Ester Mølbjerg Hofman-Bang CEO Kenneth Nielsen Thomas Vængebjerg Boutrup Ulrik Krogsaa Evers Chairman To the shareholder of RiskPoint A/S Opinion In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 2025 and of the results of the Company’s operations for the financial year 1 January - 31 December 2025 in accordance with the Danish Financial Statements Act.We have audited the Financial Statements of RiskPoint A/S for the financial year 1 January - 31 December 2025, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies (”the Financial Statements”). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements 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 International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management is responsible for Management’s Review.Our opinion on the Financial Statements does not cover Management’s Review, and we do not express any form of assurance conclusion thereon.In connection with our audit of the Financial Statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the Financial Statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated.Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish Financial Statements Act.Based on the work we have performed, in our view, Management’s Review is in accordance with the Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in Management’s Review. Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines 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, Management is 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 in preparing the Financial Statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark 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.As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the Financial Statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.Evaluate the overall presentation, structure and contents of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view.Plan and perform the audit to obtain sufficient appropriate audit evidence regarding the consolidated financial information of the entities or business units as a basis for forming an opinion on the Financial Statements. We are responsible for the direction, supervision and review of the audit work performed. We remain solely responsible for our audit opinion.We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Hellerup 2026-06-02 PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab 33771231 Claus Christensen Casper Larsen State Authorised Public Accountant State Authorised Public Accountant mne33687 mne45855 RiskPoint A/S Hammerensgade 4, 2 1267 Copenhagen 30828208 Copenhagen Strandvejen 44 2900 Hellerup Seen over a 5-year period, the development of the Company is described by the following financial highlights:The ratios have been prepared in accordance with the recommendations and guidelines issued by the Danish CFA Society. For definitions, refer to the accounting policies. 227185000 234459000 239635000 65082000 -53833000 107167000 78000 5188000 2889000 39655000 -39905000 65461000 1093478000 809456000 821806000 0 0 0 1681000 0 -13012000 -52697000 86595000 156 132 117 100 63 0.101 0.113 0.060 0.067 0.130 0.155 0.096 0.012 0.065 0.105 0.579 1.185 -1.207 -2.354 0.845 Key activitiesRiskPoint A/S is an underwriting agency, providing value-adding insurance solutions to corporates and industrial clients through their advisors. In addition to insurance solutions within traditional lines of business, we also focus on establishing and developing insurance solutions including directors' liability, renewable energy, and company transactions (Transactional Risk).Development in the yearThe income statement of the Company for 2025 shows a profit of TDKK 81,064, and at 31 December 2025 the balance sheet of the Company shows an equity of TDKK 178,751.The result is considered satisfactory and slightly above expectations.The result for the year was overall good and further positively impacted by a general strong performance within Transactional Risk.During the year, the Company continued to invest in its organization, including expansion into new geographies, development of new product areas, IT and strengthening of support functions. As a consequence, the improvement in operating profitability was limited.The past year and follow-up on development expectations from last yearGross profit increased by approximately 14% compared to 2024. Overall, the Company delivered growth in line with its strategic direction. Profitability improved compared to the prior year, while reflecting continued investments in the platform and organizational capabilities.Special risks - operating risks and financial risksForeign exchange risksActivities abroad cause results and equity to be affected by the exchange rate development. No hedging of the Company's currency is made since the risk is not assessed to be material. The impact from exchange rate movements, is noticeable and is monitored closely.Targets and expectations for the year aheadManagement expects continued growth in revenue across business lines, however acknowledging that performance may remain subject to market conditions and volatility in certain business areas. Management expects a growth rate of 15–20% in gross profit and a result before tax in the range of MDKK 80–100.The Company will continue to prioritize investments in its organization, including development of new business areas, strengthening of capabilities and continued investments in IT and operational infrastructure. These investments are expected to support continued growth over time, but are not yet fully reflected in the current financial performance.Furthermore, the continued soft market is expected to have an impact on the financial performance in 2026.Research and developmentThe Company continues to invest in the development of its IT platform and digital capabilities in order to support scalability and efficiency across the business. Reference is also made to the development activities in note 7.External environmentAs an insurance underwriting agency, our climate footprint is limited. It is important to RiskPoint that we act environmentally, socially and economically responsible in corporation with our customers, business partners and stakeholders. For further information please refer to the consolidated annual report for RiskPoint Group A/S.Branches abroadThe Company maintains branch offices, which are included in the Annual Report for RiskPoint A/S. The Company has branch offices in the following countries: Germany, UK, Switzerland, Spain, Holland, Italy, Belgium, France and Portugal.Furthermore, the Company has subsidiaries in USA, Canada, New Zealand, Australia, UK, Singapore, Dubai and Germany. In accordance with section 112 of the Danish Financial Statements Act and the consolidated financial statements for 2025 of RiskPoint Group A/S, the Company has not prepared consolidated financial statements.Unusual eventsThe financial position at 31 December 2025 of the Company and the results of the activities for the financial year for 2025 have not been affected by any unusual events.Subsequent eventsNo events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. 335834000 294209000 213413000 171628000 5571000 2942000 116850000 119639000 7203000 -33647000 7129000 13005000 24684000 17282000 106498000 81715000 25434000 29283000 81064000 52432000 21730000 9154000 0 10898000 21730000 20052000 448000 781000 448000 781000 34221000 2499000 2588000 2644000 36809000 5143000 58987000 25976000 632239000 649966000 186419000 110176000 494000 2648000 0 2192000 11053000 7130000 830205000 772112000 267386000 260194000 1097591000 1032306000 1156578000 1058282000 1500000 1500000 16948000 15640000 -4104000 -304000 164407000 84651000 178751000 101487000 5567000 5825000 16542000 32850000 22109000 38675000 89717000 85462000 585578000 620039000 221549000 174716000 1925000 1101000 14396000 3822000 42553000 32980000 955718000 918120000 955718000 918120000 1156578000 1058282000 1500000 15640000 -304000 84651000 101487000 0 0 3800000 0 3800000 0 5394000 0 -5394000 0 0 4086000 0 -4086000 0 0 0 0 81064000 81064000 1500000 16948000 -4104000 164407000 178751000 180208000 144347000 7878000 6585000 25327000 20696000 213413000 171628000 156 132 In the financial year the remuneration to the Executive Board has not been disclosed in accordance with section 98 B(3) of the Danish Financial Statements Act. In the financial year 2024 the remuneration to the Executive Board amounts to DKK 2,407k. No remuneration is paid to the Board of Directors. 5238000 2615000 333000 327000 5571000 2942000 4829000 5212000 2300000 7793000 7129000 13005000 11175000 13059000 4270000 3720000 9239000 503000 24684000 17282000 26397000 11324000 -258000 15451000 -705000 2508000 25434000 29283000 81064000 52432000 19165000 10898000 0 6916000 17814000 -17814000 36979000 0 10011000 0 5238000 0 15249000 0 21730000 0 5 years Completed development projects relate to the development of the Company's ERP system. The project was finished in 2023 and is being used by the Company and its related entities to drive efficiencies and higher margins in core business activities.Completed development projects also relates to the development of a business distribution system targeting new and existing customers in the Nordic region. The project was finished in 2025 and is generating revenue in the targeted segment. 3627000 3627000 2846000 333000 3179000 448000 3-5 years 4925000 3161000 43404000 1764000 48329000 4925000 -35276000 5059000 -2578000 312000 7000000 -33647000 0 7000000 204000 0 -30650000 -35276000 16542000 32850000 34221000 2499000 Negative differences arising on initial measurement of subsidiaries at net asset value375171Investments in subsidiaries are specified as follows:DKK 600,000USD 1SGD 150.001GBP 250,000CAD 200.100NZD 1AUD 1USD 200EUR 25,000In accordance with the company's accounting policies, the following entities with negative equity value are measured at 0 DKK. - RP Underwriting Inc. - RP Underwriting PTY Limited- RiskPoint Solution Limited- RiskPoint Middle East Managing Office Limited- Caplloyd A/S - ForsikringsagenturThe company has provided letters of supports to the following entities and have therefore recognised a provision for the negative equity value in the following subsidiaries: - Riskpoint PTE. Limited Caplloyd A/S - Forsikringsagentur Denmark 1.00 RP Underwriting Inc. USA 1.00 Riskpoint PTE. Limited Singapore 1.00 Riskpoint Solutions Ltd. United Kingdom 1.00 RP Underwriting Ltd. Canada 1.00 RiskPoint Solution Limited New Zealand 1.00 RP Underwriting PTY Limited Australia 1.00 RiskPoint Middle East Managing Office Limited Dubai 1.00 RiskPoint GmbH Germany 1.00 2644000 56000 2588000 2588000 The following receivables fall due for payment more than 1 year after year end:Trade receivables133,468109,545133,468109,545 Prepayments consist of prepaid expenses concerning rent, insurance premiums, subscriptions and interest as well. Deferred tax liabilities at 1 January5,825-9,626Amounts recognised in the income statement for the year-25815,451Deferred tax liabilities at 31 December5,5675,825Recognition of deferred tax liabilities relates to differences between accounting values and taxable values. Rental and lease obligationsLease obligations under operating leases. Total future lease payments:Within 1 year6,8137,410Between 1 and 5 years1,3668,5148,17915,924Guarantee obligationsRiskPoint A/S has granted a receivables charge to Danske Bank as security for intercompany balances with the Company's Parent Company RiskPoint Group A/S.15,00015,000RiskPoint A/S has provided an unlimited guarantee to the Parent Company RiskPoint Group A/S under which the guarantor assumes joint and several liability for the Company's deposits with Danske Bank.Other contingent liabilitiesThe group companies are jointly and severally liable for tax on the jointly taxed incomes etc. of the Group. The total amount of corporation tax payable is disclosed in the Annual Report for RP PartnerCo A/S, which is the management company of the joint taxation purposes. Moreover, the group companies are jointly and severally liable for Danish withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income. Any subsequent adjustments of corporation taxes and withholding taxes may increase the Company's liability.RiskPoint A/S has issued letters of support to the subsidiaries RiskPoint PTE Limited and RP Underwriting Ltd. to secure going concern. The letters of support applies up to and including the approval Annual Reports for 2026 for the aforementioned subsidiaries.Other financial obligationsCommitted other financial obligations. Total future payments DKK 15,744k. Controlling interestRiskPoint Group A/SParent CompanyRP PartnerCo A/SUltimate Parent CompanyManagementKey management personnelTransactionsIn the financial year 2025, the following intercompany transactions have occurred:Override commission from group companies of DKK 68,126kInterest received from group companies of DKK 4,829kInterest paid to group companies of DKK 11,175kReceivables from group companies of DKK 186,419kPayables to group companies of DKK 221,549kThe Company assess that the above-mentioned transactions have been made on market terms.The Group Annual Reports may be obtained by requests to the respective companies. Consolidated Financial StatementsThe Company is included in the Group Annual Report reports of the largest and smallest group:RP PartnerCo A/SHammerensgade 4, 2., 1267 CopenhagenRiskPoint Group A/SHammerensgade 4, 2., 1267 Copenhagen The Annual Report of RiskPoint A/S for 2025 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to medium-sized enterprises of reporting class C.The accounting policies applied remain unchanged from last year.The Financial Statements for 2025 are presented in TDKK.Accounting estimatesAccording to terms defined in binder contracts, a profit commission accrues to RiskPoint. Due to the nature of insurance business and the emergence of insurance events the estimation of profit commission earned involves accounting estimates, which are dependent on future events and developments. These estimates are made by Management on the basis of historic experience and other assumptions, which Management consider to be prudent and realistic.Due to the inherent nature of the estimates, the assumptions applied may be incomplete and unexpected future events and developments may occur, which give rise to subsequent adjustment of the estimates made. With reference to section 112 of the Danish Financial Statements Act and to the consolidated financial statements for 2025 for RiskPoint Group A/S and RP PartnerCo A/S, the Company has not prepared consolidated financial statements. With reference to section 86(4) of the Danish Financial Statements Act and to the cash flow statement included in the consolidated financial statements for RiskPoint Group A/S and RP PartnerCo A/S, the Company has not prepared a cash flow statement. Recognition and measurementRevenues are recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities measured at fair value or amortised cost are recognised. Moreover, all expenses incurred to achieve the earnings for the year are recognised in the income statement, including depreciation, amortisation, impairment losses and provisions as well as reversals due to changed accounting estimates of amounts that have previously been recognised in the income statement.Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to the asset will flow to the Company, and the value of the asset can be measured reliably.Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow out of the Company, and the value of the liability can be measured reliably.Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below. Business combinationsBusiness acquisitions carried through on or after 1 July 2018Acquisitions of subsidiaries are accounted for using the purchase method under which the identifiable assets and liabilities of the entity acquired are measured at fair value at the time of acquisition.The time of acquisition is the time when the Company obtains control of the entity acquired.The cost of the entity acquired is the fair value of the consideration agreed, including consideration contingent on future events. Transaction costs directly attributable to the acquisition of subsidiaries are recognised in the income statement as incurred.Positive differences between the cost of the entity acquired and identifiable assets and liabilities are recognised as goodwill in intangible assets in the balance sheet and are amortised in the income statement on a straight-line basis over their estimated useful lives. Where the differences are negative, they are recognised immediately in the income statement.Where the purchase price allocation is not final, positive and negative differences from acquired subsidiaries due to changes to the recognition and measurement of identifiable net assets may be adjusted for up to 12 months after the time of acquisition. These adjustments are also reflected in the value of goodwill or negative goodwill, including in amortisation already made.Where cost includes contingent consideration, this is measured at fair value at the time of acquisition. Contingent consideration is subsequently measured at fair value. Any value adjustments are recognised in the income statement.In respect of step acquisitions, any previously held investments in the entity acquired are remeasured at fair value at the time of acquisition. The difference between the carrying amount of the investment previously held and the fair value is recognised in the income statement. All leases are considered operating leases. Payments made under operating leases are recognised in the income statement on a straight-line basis over the lease term. Translation policiesTransactions in foreign currencies are translated at the exchange rates at the dates of transaction. Gains and losses arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement.Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the rates at the time when the receivable or the debt arose are recognised in financial income and expenses in the income statement.Fixed assets acquired in foreign currencies are measured at the transaction date rates. RevenueThe Entity´s commission-based income is recognised at the invoicing of the insurance premium taken out via the Entity´s carrier. Other external expensesOther external expenses comprise expenses for premises, sales as well as office expenses, etc. Gross profitWith reference to section 32 of the Danish Financial Statements Act, gross profit/loss is calculated as a summary of revenue, work on own account recognised in assets and other external expenses. Staff costs include wages and salaries including compensated absence and pensions as well as other social security contributions etc. made to the entity's employees.The Company's contributions to the parent company under the groups incentive program is accounted for as a cash-based incentive program. Amortisation, depreciation and impairment lossesAmortisation, depreciation and impairment losses comprise amortisation, depreciation and impairment of intangible assets and property, plant and equipment. Income from investments in subsidiariesThe item “Income from investments in subsidiaries” in the income statement includes the proportionate share of the profit for the year. Financial income and expenses are recognised in the income statement at the amounts relating to the financial year. Tax on profit/loss for the yearTax for the year consists of current tax for the year and deferred tax for the year. The tax attributable to the profit for year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity.The Company is jointly taxed with the ultimate Danish parent company and all Danish subsidiaries. The tax effect of the joint taxation with the subsidiaries is allocated to Danish enterprises showing profits or losses in proportion to their taxable incomes (full allocation with credit for tax losses). Intangible fixed assetsDevelopment projectsCosts of development projects comprise salaries, amortisation and other expenses directly or indirectly attributable to the Company’s development activities.Development projects that are clearly defined and identifiable and in respect of which technical feasibility, sufficient resources and a potential future market or development opportunity in the enterprise can be demonstrated, and where it is the intention to manufacture, market or use the project, are recognised as intangible assets. This applies if sufficient certainty exists that the value in use of future earnings can cover cost of sales, distribution and administrative expenses involved as well as the development costs.Development projects that do not meet the criteria for recognition in the balance sheet are recognised as expenses in the income statement as incurred.Capitalised development costs are measured at cost less accumulated amortisation and impairment losses or at a lower recoverable amount. An amount corresponding to the recognised development costs is allocated to the equity item 'Reserve for development costs'. The reserve comprises only development costs recognised in financial years beginning on or after 1 January 2016. The reserve is reduced by amortisation of and impairment losses on the development projects on a continuing basis.As of the date of completion, capitalised development costs are amortised on a straight-line basis over the period of the expected economic benefit from the development work. The amortisation period is 5 year. Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impairment losses.Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the time when the asset is ready for use. Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are:Other fixtures and fittings, tools and equipment3-5 years The fixed assets’ residual values are determined at nil.Depreciation period and residual value are reassessed annually. Impairment of fixed assetsThe carrying amounts of intangible assets and property, plant and equipment and investments are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by amortisation and depreciation.If so, the asset is written down to its lower recoverable amount. Investments in subsidiariesInvestments in subsidiaries are recognised and measured under the equity method.The item “Investments in subsidiaries” in the balance sheet include the proportionate ownership share of the net asset value of the enterprises calculated on the basis of the fair values of identifiable net assets at the time of acquisition with deduction or addition of unrealised intercompany profits or losses and with addition of the remaining value of any increases in value and goodwill calculated at the time of acquisition of the enterprises.The total net revaluation of investments in subsidiaries is transferred upon distribution of profit to “Reserve for net revaluation under the equity method“ under equity. The reserve is reduced by dividend distributed to the Parent Company and adjusted for other equity movements in the subsidiaries.Subsidiaries with a negative net asset value are recognised at DKK 0. Any legal or constructive obligation of the Parent Company to cover the negative balance of the enterprise is recognised in provisions. Other fixed asset investments consist of deposits. Receivables are measured in the balance sheet at the lower of amortised cost and net realisable value, which corresponds to nominal value less provisions for bad debts.Trade receivables comprise premiums collected with policyholders on behalf of the Company´s carriers. When recognising these receivables, the amount owed to the carrier net of sales commission is recognised as well. PrepaymentsPrepayments comprise prepaid expenses concerning subsequent financial years. Deferred tax assets and liabilitiesDeferred income tax is measured using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes on the basis of the intended use of the asset and settlement of the liability, respectively.Deferred tax assets, including the tax base of tax loss carry-forwards, are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities within the same legal tax entity.Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the balance sheet date when the deferred tax is expected to crystallise as current tax. Any changes in deferred tax due to changes to tax rates are recognised in the income statement or in equity if the deferred tax relates to items recognised in equity. Current tax receivables and liabilitiesCurrent tax receivables and liabilities are recognised in the balance sheet at the amount calculated on the basis of the expected taxable income for the year adjusted for tax on taxable incomes for prior years. Tax receivables and liabilities are offset if there is a legally enforceable right of set-off and an intention to settle on a net basis or simultaneously. Debts are measured at amortised cost, substantially corresponding to nominal value.Trade payables comprise premiums collected from the policyholders and payables to the Company´s carriers. The premium payable is recognized net of sales commission.Prepayments received from customers comprise profit commission received from the Company's carriers but not earned under the issued policies. The prepayments are recognized as income over the risk period of the policies. Financial HighlightsExplanation of financial ratiosReturn on assetsProfit/loss of primary operations x 100 / Total assets at year endSolvency ratioEquity at year end x 100 / Total assets at year endReturn on equityNet profit for the year x 100 / Average equity