This year, we were the driving force behind the first ever Cat
Our retail business continues to develop its position as the UK’s leading specialist insurer of high-value homes in the reserves for all losses prior to 1993 being thoroughly scrutinised and then centralised into Equitas, has insulated the Lloyd’s Market from the recent deterioration in old year losses hitting the rest of the insurance industry.
PEOPLE We are lucky to have excellent non-executive directors and a board membership that complies with the recent Higgs Report, so my remarks above are without an axe to grind. We also have a wonderful staff throughout the Company. I have always believed that if we treat each other with respect and kindness, we will be a better company and one that will be a pleasure to deal with and thereby more profitable. I was therefore extremely gratified that Hiscox plc came tenth in the recent Sunday Times ‘100 Best Companies to Work For’ list, above any other financial services company. Given the poor results we have had in previous years and the stress of the insurance business when losses thud in, it was a considerable achievement. I would like to thank everyone at Hiscox, and wish them the rewards that their recent endeavours deserve.
The Conflicts Committee comprises all the independent non-executive directors and the Group Compliance Officer. It meets as and when required. Should a conflict of interest arise between group entities, there is a formal procedure to refer the matter to this Committee.
In accordance with the Company’s Articles of Association, all directors are required to submit themselves for re-election by the shareholders at least every three years.
Awards were also made during the year under the Sharesave Scheme and the International Sharesave Scheme. These schemes provide a medium-term incentive available to all staff. Awards depend upon the amount employees are prepared to save out of their salary subject to the maximum figure under the rules.
The Group is also committed to ensuring that all employees are provided with safe working conditions. A Health and Safety Committee oversees compliance with, and the development of, the Group’s health and safety policy which is available to all staff via the Group’s intranet. In addition, risk assessments are completed for the building and for all staff, records of which are maintained for inspection by Environmental Health Officers.
Payment is then made on these terms, subject to the terms and conditions being met by the supplier. The Group had 18.0 (2001: 16.5) days purchases outstanding at 31 December 2002 based on the average daily amount invoiced by suppliers during the year ended 31 December 2002. The Company is a holding company and accordingly has no days purchases outstanding at 31 December 2002. Therefore, the Group creditors days are considered to be more representative.
As permitted by Section 230 of the Companies Act 1985, no profit and loss account of the parent company is presented. The profit after taxation for the Company for the year was £7,582,000 (2001: £1,688,000) and the retained loss for the financial year for the Company was £1,631,000 (2001: profit of £1,688,000).
Pension contributions for defined contribution schemes are charged to the profit and loss account on an accruals basis.
Profit/(loss) on ordinary activities before taxation 13,489 6,421 405 20,315 (33,404) 1,682 (774) (32,496)
Equalisation provisions are established in accordance with the requirements of Chapter 6 of the Interim Prudential Sourcebook for Insurers. These provisions, which are in addition to the provisions required to meet the anticipated ultimate cost of settlement of outstanding claims at the balance sheet date, are required by Schedule 9A to the Companies Act 1985 to be included within technical provisions at the balance sheet date notwithstanding that they do not represent liabilities at the balance sheet date. This has had the effect of reducing shareholders’ funds by £13,932,000 (2001: £11,229,000). The movement in equalisation provision during the year resulted in a decrease in the technical account and the Group profit before taxation of £2,703,000 (2001: £2,582,000).
Proposed final dividend 6,914 – 6,914 – Due to Group companies – – 4,541 14,321 Taxation payable 2,730 2,424 – – Amounts owed to credit institutions 21 2,059 – – Obligations under finance leases 454 1,042 – –
No. of No. of Adjusted options at No. of No. of No. of No. of options at exercise Market price Date from 1 January options options options options 31 December price at date of which Expiry 2002 granted lapsed exercised adjusted 2002 £ exercise exercisable date
a) Operating leases The Group has the following commitments under operating leases: Land and Land and buildings Other Total buildings Other Total