Group key performance indicators
2012 2011
London UK and Corporate London UK and Corporate
Market Europe International Centre Total Market Europe International Centre Total
Gross premiums written (£m) 640.0 507.5 418.3 - 1,565.8 585.4 498.0 365.8 – 1,449.2
Net premiums written (£m) 462.4 479.9 325.8 - 1,268.1 413.4 472.6 288.0 – 1,174.0
Net premiums earned (£m) 419.0 476.9 302.7 - 1,198.6 418.8 448.6 277.6 – 1,145.0
Investment result (£m) 27.0 17.7 29.2 18.5 92.4 8.8 7.2 6.3 2.2 24.5
Profit/(loss) before tax (£m) 121.9 49.1 62.6 (16.5) 217.1 57.6 51.5 (89.5) (2.3) 17.3
Claims ratio (%) 40.3 47.2 46.0 - 44.1 56.6 46.3 89.9 – 60.2
Expense ratio (%) 32.8 46.9 44.2 - 40.5 32.5 44.7 42.9 – 39.1
Foreign exchange impact (%) 2.4 0.3 (1.0) - 0.9 – – 1.1 – 0.2
Combined ratio (%) 75.5 94.4 89.2 - 85.5 89.1 91.0 133.9 – 99.5
2012 2011
Financial assets and cash* (£m) 3,055.8 2,873.4
Other assets (£m) 1,330.5 1,349.3
Total assets (£m) 4,386.3 4,222.7
Net assets (£m) 1,378.4 1,255.9
Net asset value per share (p) 349.7 323.5
Net tangible asset value per share (p) 332.0 306.1
Adjusted number of shares in issue (m) 394.2 388.2
*excluding derivative assets, insurance linked fund and catastrophe bonds.
£67.3 million). The outflow is due to payment of being well placed against the new
of dividends to shareholders, with less scrip requirements when they come into force.
dividends having been taken up in the year.
The Bermuda Monetary Authority (BMA) has
The Group maintains relationships with a limited begun supervising the Group, under the new
number of banks, whose credit status and ability Group Supervisory Framework. The new
to meet day-to-day banking requirements are framework places a regulatory capital
monitored by the Group. The bank facility was requirement upon the Group for the first time.
renegotiated during the year up to $875 million. Testing of the new standards was undertaken
There was no cash drawn down on the banking during 2012 in which the Group had sufficient
facility during the year. capital to meet requirements. The BMA continues
to work towards Solvency II equivalence.
At 31 December 2012, $308 million (2011: $340
million) had been drawn by way of Letter of Credit
against this facility.
There were no impairments recorded against
cash or cash equivalents and no issues
regarding recoverability have been identified
on these assets. The Group has no direct
exposure to sovereign debt in Portugal, Ireland,
Italy, Greece or Spain.
Solvency II
Solvency II is the new solvency regime for all
European insurers and reinsurers. It aims to
create solvency requirements that are consistent
across all European member states which better
reflect the risks that insurers and reinsurers face.
The implementation of the new regime remains
uncertain, with a probable delay at least
until 2015. The Group continues to monitor
developments within Europe, and is confident
Group financial performance Hiscox Ltd Report and Accounts 2012 19