Notes to the consolidated
financial statements
continued
36 Capital and lease commitments
Capital commitments
The Group’s capital expenditure contracted for at the balance sheet date but not yet incurred for property, plant, equipment and software
development was £418,000 (2011: £326,000).
Operating lease commitments
The Group acts as both lessee and lessor in relation to various offices in the UK and overseas which are held under non-cancellable
operating lease agreements. The leases have varying terms, escalation clauses and renewal rights. The Group also has payment obligations
in respect of operating leases for certain items of office equipment. Operating lease rental expenses for the year totaled £7,233,000 (2011:
£7,256,000). Operating lease rental income for the year totaled £615,000 (2011: £420,000).
The aggregate minimum lease payments required by the Group under non-cancellable operating leases, over the expected lease terms,
are as follows:
2012 2011
£000 £000
No later than one year Land and buildings 7,482 7,359
Office equipment 194 1
Later than one year and no later than five years Land and buildings 25,967 25,239
Office equipment 72 –
Later than five years Land and buildings 18,101 22,106
51,816 54,705
The total future aggregate minimum lease rentals receivable by the Group as lessor under non-cancellable operating property leases
are as follows:
2012 2011
£000 £000
No later than one year 584 373
Later than one year and no later than five years 613 246
Later than five years – –
1,197 619
Obligations under finance leases
There were no finance lease arrangements in place at 31 December 2012 or 31 December 2011.
Finance lease interest expense for the year was £nil (2011: £1,430).
37 Principal subsidiary companies of Hiscox Ltd at 31 December 2012
Company Nature of business Country
Hiscox plc* Holding company Great Britain
Hiscox Insurance Company Limited General insurance Great Britain
Hiscox Insurance Company (Guernsey) Limited* General insurance Guernsey
Hiscox Holdings Inc. Insurance holding company USA (Delaware)
ALTOHA, Inc. Holding company USA (Delaware)
Hiscox Insurance Company Inc. General insurance USA (Illinois)
Hiscox Inc. Underwriting agent USA (Delaware)
Hiscox Insurance Company (Bermuda) Limited* General insurance and reinsurance Bermuda
Hiscox Dedicated Corporate Member Limited Lloyd’s corporate Name Great Britain
Hiscox Holdings Limited** Insurance holding company Great Britain
Hiscox Insurance Holdings Limited Insurance holding company Great Britain
Hiscox Syndicates Limited Lloyd’s managing agent Great Britain
Hiscox Underwriting Group Services Limited Service company Great Britain
Hiscox Capital Ltd* Reinsurance Bermuda
Hiscox Underwriting Ltd Underwriting agent Great Britain
Hiscox Europe Underwriting Limited Insurance intermediary Great Britain
*Held directly.
**Hiscox Holdings Limited held 54,560 shares in Hiscox Ltd at 31 December 2012 (2011: 54,560).
All companies are wholly-owned. The proportion of voting rights of subsidiaries held is the same as the proportion of equity shares held.
102 Notes to the consolidated financial statements Hiscox Ltd Report and Accounts 2012