Notes to the consolidated
financial statements
continued
8 Analysis of return on financial investments continued
(b) Investment return continued
London Market UK and Europe International Corporate Centre 2011 Total
£000 % £000 % £000 % £000 % £000 %
Debt and fixed income securities 9,477 1.1 7,642 1.8 10,846 1.6 1,968 0.9 29,933 1.3
Equities and shares in unit trusts – – (1,168) (2.4) (4,392) (9.3) (375) (0.9) (5,935) (3.8)
Deposits with credit institutions/
cash and cash equivalents 225 0.4 725 1.0 868 0.4 126 0.2 1,944 0.4
9,702 1.1 7,199 1.3 7,322 0.8 1,719 0.5 25,942 0.9
9 Other revenues and operational expenses
2012 2011
£000 £000
Agency related income 5,866 6,769
Profit commission 5,532 7,383
Other underwriting income – catastrophe bonds 1,123 1,006
Other income 1,409 2,164
Other revenues 13,930 17,322
Wages and salaries 88,294 69,185
Social security cost 15,299 12,930
Pension cost – defined contribution 6,117 5,724
Pension cost – defined benefit 1,800 1,700
Share based payments 6,135 8,677
Marketing expenses 26,251 19,955
Investment expenses 3,543 3,360
Depreciation, amortisation and impairment 7,833 8,098
Other expenses 80,930 73,575
Operational expenses 236,202 203,204
10 Finance costs
2012 2011
Note £000 £000
Interest and expenses associated with bank borrowings 2,703 1,960
Interest and charges associated with Letters of Credit 35 5,032 3,933
Interest charges on experience account 870 804
Interest charges arising on finance leases 36 – 1
8,605 6,698
11 Auditors’ remuneration
Fees payable to the Group’s main external auditors, KPMG, its member firms and its associates (exclusive of VAT) include the following
amounts recorded in the consolidated income statement:
2012 2011
Group £000 £000
Amounts receivable by the auditor and associates in respect of:
The auditing of the accounts of any associate of the Group 911 908
All audit-related assurance services 129 132
Taxation compliance services – 8
All non-audit-related assurance services 21 –
1,061 1,048
The full audit fee payable for the Syndicate audit has been included above, although an element of this is borne by the third-party
participants in the Syndicate.
80 Notes to the consolidated financial statements Hiscox Ltd Report and Accounts 2012