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Notes to the consolidated
financial statements
continued
17 Investments in associates
Movement in carrying value
80 Notes to the consolidated financial statements Hiscox Ltd Report and Accounts 2009
2009 2008
£000 £000
Year ended 31 December
At beginning of year 7,200 1,502
Additions during the year – 5,438
Share of post-tax profit recognised for the period 118 260
At end of year 7,318 7,200
The Group’s interests in its principal associates, all of which are unlisted, were as follows:
100% results
% interest
held at Assets Liabilities Revenues Profit after tax
31 December £000 £000 £000 £000
2009
Associates incorporated in the UK From 25% to 49% 11,100 7,800 8,743 234
Associates incorporated in Europe up to 25% 943 436 1,379 30
Total at the end of 2009 12,043 8,236 10,122 264
100% results
% interest
held at Assets Liabilities Revenues Profit after tax
31 December £000 £000 £000 £000
2008
Associates incorporated in the UK From 25% to 49% 11,981 8,809 6,214 877
Associates incorporated in Europe up to 25% 2,066 1,289 1,483 268
Total at the end of 2008 14,047 10,098 7,697 1,145
There were no additional investments in associates made during 2009.
The equity interests held by the Group in respect of associates do not have quoted market prices and are not traded regularly in any
active recognised market. The associates concerned have no material impact on the results or assets of the Group. No impairments
were identified during the current or prior financial year under review.
During the prior year the Group made equity investments in Senior Wright Indemnity Ltd and Media Insurance Brokers. Cash consideration
of £5,438,000 was paid.
18 Deferred acquisition costs
2009 2008
Gross Reinsurance Net Gross Reinsurance Net
£000 £000 £000 £000 £000 £000
Balance deferred at 1 January 131,130 (21,068) 110,062 123,081 (14,568) 108,513
Acquisition costs incurred in relation to insurance contracts written 312,705 (42,212) 270,493 270,126 (40,634) 229,492
Acquisition costs expensed to the income statement (302,330) 45,696 (256,634) (262,077) 34,134 (227,943)
Balance deferred at 31 December 141,505 (17,584) 123,921 131,130 (21,068) 110,062
The deferred amount of insurance contract acquisition costs attributable to reinsurers of £17,584,000 (2008: £21,068,000) is not eligible
for offset against the gross balance sheet asset and is included separately within trade and other payables (note 28).
The amounts expected to be recovered before and after one year are estimated as follows:
2009 2008
£000 £000
Within one year 123,921 110,062
After one year – –
123,921 110,062