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Directors’ report
The Directors have pleasure in submitting
their Annual Report and financial statements
for the year ended 31 December 2009.
Principal activity and business review
The Company is a holding company for
subsidiaries involved in the business of
insurance in Bermuda, the US, the UK,
Guernsey and Europe. An analysis of the
development and performance of the business
can be found within the Chief Executive’s
report on pages 5 to 11. A description
of the major risks can be found in the risk
management section on pages 21 to 25.
Financial results
The Group achieved a pre-tax profit for the
year of £320.6 million (2008: £105.2 million).
Detailed results for the year are shown in the
consolidated income statement on page 48,
and also within the Group financial performance
section on pages 15 to 19.
Going concern
A review of the financial performance of
the Group is set out on pages 15 to 19. The
financial position of the Group, its cash flows
and borrowing facilities are included therein.
In addition, note 3 to the financial statements
provides a detailed discussion on the risks
which are inherent to the Group’s business
and how those risks are managed.
The Group has considerable financial resources
and a well balanced book of business.
After making enquiries, the Directors have
an expectation that the Company and the
Group have adequate resources to continue in
operational existence for the foreseeable future.
For this reason they continue to adopt the going
concern basis in preparing the accounts.
Dividends
An interim dividend of 4.5p (net) per share
(2008: 4.25p (net)) was paid on 6 October 2009
by Hiscox Ltd in respect of the year ended
31 December 2009. A second interim dividend
of 10.5p (net) per share (2008: final dividend
8.5p (net)) will be paid on 29 March 2010 in
respect of the year ended 31 December 2009.
Share capital
Details of the structure of the Company’s
share capital and changes in the share capital
during the year are disclosed in note 25
to the consolidated financial statements.
Directors
The names and details of the individuals who
served as Directors of the Company during
the year are set out on pages 32 to 33.
Stuart Bridges and Robert Childs retire
by rotation in accordance with the Bye-Laws
of the Company and they have each submitted
themselves for re-election at the Annual General
Meeting of the Company.
One of our Directors, Sir Mervyn Pedelty,
died in January 2010. Sir Mervyn had been the
Chairman of the Remuneration and Nomination
Committee and Senior Independent Director
of Hiscox Ltd since redomicile.
Political and charitable contributions
The Group made no political contributions
during the year (2008: £nil). Charitable
donations totalled £1,171,000 (2008: £717,000)
of which £1,000,000 (2008: £500,000) was
donated to the Hiscox Foundation, a UKregistered
charity. The policy of the Hiscox
Foundation is to assist and improve education,
the arts and independent living for disabled
and disadvantaged members of society.
Further information concerning the Group’s
charitable activities is contained in the report
on Corporate responsibility on page 27.
Major interests in shares
The Company has been notified of the following
shareholdings of 5% or more in the ordinary
shares of the Company as at 1 March 2010:
Number of shares % of total
Invesco Limited 48,909,615 13.04
Jupiter Asset Management 25,210,566 6.4
Standard Life Investments 21,943,914 5.852
Legal & General
Massachusettes Financial
18,591,533 5.05
Services Company 23,175,509 5.23
A copy of the Company’s Bye-Laws is available
for inspection at the Company’s registered office.
Directors’ report Hiscox Ltd Report and Accounts 2009
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