“Our philosophy is to give people the opportunity to develop to their full potential.”
Financial investments, cash and indebtedness (cont.) The Group has four managed investment funds in which the majority of the insurance funds are invested. Three of these (one each for Syndicate 2004, AICL and AIGL) are managed by Alliance Capital Management, whilst the fourth (another AIGL fund) is managed by Lloyds TSB International.
The listing in September 2004 triggered an issue of shares to the Trust immediately prior to the listing. Full details of the associated transaction (and the impact of share reorganisation) are set out in note 20 to the accounts. The effect of the listing on the Trust was that staff who held units became holders of shares in Admiral Group plc equating to an 8% stake worth £57m at listing.
As noted above, the current executive directors, with the support of the Board, are of the opinion that their shareholdings provide appropriate incentivisation to maximise shareholder return. For this reason, none of the current executive directors will participate in the new share schemes (nor did they in the ESOT).
The Board, which meets at least eight times a year, has a schedule of matters reserved for its approval which include: • setting Group strategy and approving an annual budget and medium-term projections
The directors are given access to independent professional advice at the Group's expense, should they deem it necessary, to carry out their responsibilities.
Relations with shareholders In fulfilment of the Chairman's obligations under the new Combined Code, the Chairman gives feedback to the Board on issues raised with him by major shareholders, although to date there have been no such issues. This is supplemented by monthly feedback to the Board on meetings between management and investors. External analyst reports are circulated to all the directors.
Martin Jackson and Keith James receive £5,000 each in remuneration for their membership. This is included in their aggregate remuneration figures set out in the remuneration report.
The Committee, after due consideration of all relevant issues (including those set out above) makes recommendations to the Board as to whether the Annual Report (or other financial report) should be approved, and also reviews and makes recommendations on any report issued by the external auditor.
The findings of all internal and external investigations into internal control and risk management are reviewed, along with management’s response to the same.
• setting, reviewing and approving individual remuneration packages for executive directors and the Chairman, including terms and conditions of employment and any changes to packages
The Compliance Officer also carries responsibility for the Risk Management controlled function. In this role, he assists in determining a suitable Risk Management Strategy and provides support and advice to the Risk Management Committee and to managers responsible for implementing the strategy.
In light of this, their remuneration packages consist of base salary (benchmarked against market rates by the Committee) and benefits such as private medical cover, permanent health insurance and death in service cover. The Group does not contribute to any pension arrangements on behalf of the executive directors, and it is not intended that they will participate in any Group share schemes.
Oliver! - Port Talbot Youth Theatre received a donation from Henry's Pot
Community The Group is a leading employer in the South Wales region in which it operates and has staff living across a large number of communities. The Group encourages its employees to get involved within local communities and takes pride in the level of involvement.
Directors and their interests The present directors of the Company are shown on the inside cover of this report, whilst directors’ interests in the share capital of the Company are set out in the remuneration report.
We have audited the financial statements on pages 41 to 67. We have also audited the information in the directors’ remuneration report that is described as having been audited.
KPMG Audit Plc Registered Auditor Cardiff 13531 Admiral AR a/w 5/4/05 9:59 am Page 42
Basic and diluted earnings per share - unadjusted 11 33.5p 15.2p
General insurance business written premiums comprise the premiums on contracts entered into during the year, which incept during the current financial year. Premiums are disclosed gross of commission payable to intermediaries and exclude taxes and levies based on premiums.
Profit commission is recognised in the profit and loss account when the right to consideration is achieved, and is capable of reliable measurement.
Realised gains or losses represent the difference between net sales proceeds and purchase price or in the case of investments valued at amortised cost, the latest carrying value.
Cash at bank and in hand 50,021 4,936 - 54,957 Cash on short term deposit 12,975 2,143 - 15,118