4 Operating segments continued
(d) Geographical information continued
The Group has not reported geographical segmental details of non-current assets excluding financial instruments and including loans
and receivables, rights and obligations under insurance and reinsurance contracts, investments in associates and subsidiaries as such
details are not used by the chief operating decision maker to evaluate the performance of the Group.
5 Net asset value per share
2012 2011
Net asset Net asset Net asset Net asset
value value value value
(total equity) per share (total equity) per share
£000 pence £000 pence
Net asset value 1,378,384 349.7 1,255,899 323.5
Net tangible asset value 1,308,767 332.0 1,188,347 306.1
The net asset value per share is based on 394,200,249 shares (2011: 388,233,074 shares), being the adjusted number of shares in issue
at 31 December.
Net tangible assets comprise total equity excluding intangible assets.
6 Return on equity
2012 2011
£000 £000
Profit for the year (all attributable to owners of the Company) 207,772 21,272
Opening shareholders’ equity 1,255,899 1,266,114
Adjusted for the time-weighted impact of capital distributions and issuance of shares (28,095) (14,025)
Adjusted opening shareholders’ equity 1,227,804 1,252,089
Annualised return on equity (%) 16.9 1.7
7 Investment result
The total result for the Group before taxation comprises:
2012 2011
Note £000 £000
Investment income including interest receivable 45,699 50,333
Net realised gains on financial investments at fair value through profit or loss 9,071 5,040
Net fair value gains/(losses) on financial investments at fair value through profit or loss 37,920 (29,431)
Investment result – financial assets 8 92,690 25,942
Fair value losses on derivative financial instruments 21 (266) (1,447)
Total result 92,424 24,495
Investment expenses are presented within other expenses (note 9).
8 Analysis of return on financial investments
(a) The weighted average return on financial investments for the year by currency, based on monthly asset values, was:
2012 2011
% %
Sterling 3.6 1.0
US Dollar 3.2 0.6
Other 1.8 1.6
(b) Investment return
London Market UK and Europe International Corporate Centre 2012 Total
£000 % £000 % £000 % £000 % £000 %
Debt and fixed income securities 26,813 3.5 8,585 1.9 19,191 2.5 7,990 3.9 62,579 2.8
Equities and shares in unit trusts – – 8,288 13.8 8,580 14.0 10,106 16.6 26,974 14.8
Deposits with credit institutions/
cash and cash equivalents 242 0.2 796 0.7 1,700 0.6 399 0.4 3,137 0.5
27,055 3.1 17,669 2.8 29,471 2.7 18,495 5.1 92,690 3.1
Notes to the consolidated financial statements Hiscox Ltd Report and Accounts 2012 79