38 Related-party transactions
Details of the remuneration of the Group’s key personnel are shown in the Directors’ remuneration report on pages 39 to 46. A number of the
Group’s key personnel hold insurance contracts with the Group, all of which are on normal commercial terms and are not material in nature.
The following transactions were conducted with related parties during the year.
(a) Syndicate 33 at Lloyd’s
The following balances were outstanding (payable) at the year end to Syndicate 33 by Group companies.
31 December 31 December
2012 2011
£000 £000
Hiscox Syndicates Limited 21,102 38,577
Hiscox Group insurance carriers 1,836 10,460
Hiscox Group insurance intermediaries (7,874) (14,845)
Other Hiscox Group companies (8,321) (7,581)
6,743 26,611
The following amounts reflected in the income statement were transacted with Syndicate 33:
31 December 31 December
2012 2011
£000 £000
Hiscox Syndicates Limited 25,840 32,276
Hiscox Group insurance carriers 6,313 3,556
Hiscox Group insurance intermediaries 12,550 14,133
44,703 49,965
(b) Transactions with associates
Certain companies within the Group conduct insurance and other business with associates. These transactions arise in the normal course
of obtaining insurance business through brokerages, and are based on arm’s length arrangements.
Total Total
2012 2011
£000 £000
Gross premium income achieved through associates 12,994 11,593
Commission expense charged by associates 3,286 2,679
Amounts payable to associates at 31 December 29 –
Amounts receivable from associates at 31 December 10,539 120
Details of the Group’s associates are given in note 16.
(c) Internal reinsurance arrangements
During the current and prior year, there were a number of reinsurance arrangements entered into in the normal course of trade between
various Group companies.
The related results of these transactions have been eliminated on consolidation.
Notes to the consolidated financial statements Hiscox Ltd Report and Accounts 2012 103