26 Insurance liabilities and reinsurance assets continued
26.2 Movements in insurance claims liabilities and reinsurance claims assets
2012 2011
Gross Reinsurance Net Gross Reinsurance Net
Year ended 31 December £000 £000 £000 £000 £000 £000
Total at beginning of year (1,902,571) 412,828 (1,489,743) (1,706,404) 374,193 (1,332,211)
Claims and claim adjustment expenses for year (719,792) 180,966 (538,826) (830,368) 132,470 (697,898)
Cash paid for claims settled in the year 614,723 (124,685) 490,038 650,510 (95,433) 555,077
Exchange differences and other movements 74,736 (15,670) 59,066 (16,309) 1,598 (14,711)
Total at end of year (1,932,904) 453,439 (1,479,465) (1,902,571) 412,828 (1,489,743)
Claims reported and claim adjustment expenses (932,604) 192,311 (740,293) (938,498) 187,973 (750,525)
Claims incurred but not reported (1,000,300) 261,128 (739,172) (964,073) 224,855 (739,218)
Total at end of year (1,932,904) 453,439 (1,479,465) (1,902,571) 412,828 (1,489,743)
The insurance claims expense reported in the consolidated income statement is comprised as follows:
2012 2011
Gross Reinsurance Net Gross Reinsurance Net
Year ended 31 December £000 £000 £000 £000 £000 £000
Current year claims and claim adjustment expenses (930,635) 239,912 (690,723) (1,126,667) 229,314 (897,353)
Over/(under) provision in respect of prior year
claims and claim adjustment expenses 210,843 (58,946) 151,897 296,299 (96,844) 199,455
Total claims and claim adjustment expenses (719,792) 180,966 (538,826) (830,368) 132,470 (697,898)
27 Trade and other payables
2012 2011
Note £000 £000
Creditors arising out of direct insurance operations 15,606 58,346
Creditors arising out of reinsurance operations 130,605 152,866
146,211 211,212
Share of Syndicates’ other creditors’ balances 10,239 4,856
Social security and other taxes payable 8,649 10,640
Other creditors 9,037 14,939
27,925 30,435
Reinsurers’ share of deferred acquisition costs 17 18,340 15,641
Accruals and deferred income 73,139 56,847
Total 265,615 314,135
The amounts expected to be settled before and after one year are estimated as follows:
Within one year 248,155 300,976
After one year 17,460 13,159
265,615 314,135
The amounts expected to be settled after one year of the balance sheet date primarily relate to deferred bonuses and the Group’s provision
of sabbatical leave employee benefits.
Notes to the consolidated financial statements Hiscox Ltd Report and Accounts 2012 95