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Notes to the consolidated
financial statements
continued
9 Other revenues and expenses
76 Notes to the consolidated financial statements Hiscox Ltd Report and Accounts 2009
2009 2008
£000 £000
Agency related income 6,651 5,324
Profit commission 12,248 14,382
Other underwriting income, catastrophe bonds 410 –
Other income 189 152
Other revenues 19,498 19,858
Managing agency expenses 33,051 19,513
Overseas underwriting agency expenses 47,943 28,787
Connect agency expenses 11,795 13,343
Investment expenses 2,690 1,899
Other Group expenses including central overheads 21,460 12,957
Other expenses 116,939 76,499
10 Employee benefit expense
The aggregate remuneration and associated costs were:
2009 2008
Note £000 £000
Wages and salaries, including holiday pay and sabbatical leave charges 108,626 79,048
Social security costs 12,391 10,468
Share based payments cost of options granted to Directors and employees 25 5,260 5,269
Pension costs – defined contribution 6,510 5,794
Pension costs – net expense/(credit) arising on defined benefit schemes 31 13,300 –
146,087 100,579
The average monthly number of staff employed by the Group was 1,061 (2008: 914) comprising 368 underwriting and 693 administrative
staff (2008: 335 and 579 respectively). Of the total remuneration shown above, an amount of £21,555,000 (2008: £21,053,000) was
recharged to Syndicate 33.
11 Finance costs
2009 2008
Note £000 £000
Interest and expenses associated with bank borrowings 2,493 3,201
Interest and charges associated with Letters of Credit 36 2,780 1,922
Interest charges arising on finance leases 37 20 35
5,293 5,158
12 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:
2009 2008
Group £000 £000
Fees payable to the Company’s auditors for the audit of the Group’s consolidated financial statements 188 262
Fees payable to the Company’s auditors and its associates for other services:
The audit of subsidiaries pursuant to legislation 638 519
Other services pursuant to legislation 90 75
All other services* 185 75
Fees in respect of the defined benefit pension scheme:
1,101 931
Audit 11 12
Total auditors’ remuneration expense 1,112 943
*Other fees relate primarily to corporate advisory and financial reporting consulting services. Non-audit services with fees greater than £50,000 must be pre-approved by the Audit Committee which is composed solely of independent
Non Executive Directors.