1 Segmental reporting by business group
The tables in the links below show segmental information by business segment. Business segments are primary segments and represent the way in which the business is managed. Each segment underwrites sub-classes of business which fall within the broad classes of aviation, marine, non-marine and UK commercial business. The segments are discussed in more detail in the Operating and Financial Review. The non-marine business group is large and comprises direct and reinsurance books of business.
Year ended 31 December 2005
Income and expenses by business segment Year ended 31 December 2005
Assets and liabilities by business segment Year ended 31 December 2005
Year ended 31 December 2004
Income and expenses by business segment Year ended 31 December 2004
Assets and liabilities by business segment Year ended 31 December 2004
2 Net earned premium
|
2005
£m |
2004
£m |
|
| Insurance contracts premiums |
|
|
| - Gross premiums written |
993.5 |
945.6 |
| - Change in unearned premium provision |
(6.8) |
(61.9) |
 |
| Gross premiums earned |
986.7 |
883.7 |
| Insurance premium revenue from the receipt of reinsurance to close |
78.8 |
15.3 |
| Reinsurance premiums ceded |
|
|
| - Reinsurance premiums payable |
(164.2) |
(155.4) |
| - Change in unearned reinsurance premium provision |
(0.4) |
(5.9) |
|
| |
(164.6) |
(161.3) |
|
| Net earned premiums |
900.9 |
737.7 |
|
The insurance premium revenue from the receipt of reinsurance to close represents the premium received from the third party syndicate members on the 2002 year of account (2004: 2001 year of account) who sold their capacity to Amlin, for use by Amlin's corporate members for the following year of account. An identical amount is recorded as a movement in claims, representing the additional liabilities taken on by Amlin from the third party members. Overall these transactions have no impact on profit for the year.
3 Investment return
|
2005
£m |
2004
£m |
|
| Investment income |
|
|
| - dividend income |
2.1 |
1.1 |
| -i nterest income |
66.6 |
42.2 |
| Cash and cash equivalents interest income |
2.5 |
9.2 |
|
| |
71.2 |
52.5 |
|
| Net realised gains/(losses) on financial assets |
|
|
| - equity securities |
12.2 |
4.2 |
| - debt securities |
(6.0) |
(4.5) |
|
| |
6.2 |
(0.3) |
|
| Net fair value gains on assets at fair value through income statement |
|
|
| - equity securities |
12.5 |
3.8 |
| - debt securities |
1.0 |
(3.9) |
|
| |
13.5 |
(0.1) |
|
| Total |
90.9 |
52.1 |
|
4 Other operating income
|
2005
£m |
2004
£m |
|
| Information fee income |
0.6 |
2.9 |
| Other income |
0.8 |
4.5 |
|
| |
1.4 |
7.4 |
|
5 Insurance claims and loss adjustment expenses
|
2005
£m |
2004
£m |
|
| Gross |
|
|
| Current year insurance claims and loss adjustment expenses |
991.6 |
596.0 |
| Additional/(reduced) costs for prior period insurance claims |
(79.5) |
(53.8) |
|
| |
912.1 |
542.2 |
| Insurance claims and loss adjustment expenses relating to the receipt of reinsurance to close (note 2) |
78.8 |
15.3 |
| Reinsurance |
|
|
| Current year insurance claims and loss adjustment expenses recoverable from reinsurers |
(436.2) |
(167.1) |
| (Additional)/reduced costs for prior period claims recoverable from reinsurers |
(0.2) |
4.1 |
|
| |
(436.4) |
(163.0) |
|
| Total net insurance claims and loss adjustment expenses |
554.5 |
394.5 |
|
6 Expenses for the acquisition of insurance contracts
|
2005
£m |
2004
£m |
|
| Expenses for the acquisition of insurance contracts |
173.4 |
175.0 |
| Changes in deferred expenses for the acquisition of insurance contracts |
(3.2) |
(13.3) |
|
| |
170.2 |
161.7 |
|
7 Other operating expenses
Expenses related to underwriting |
2005
£m |
2004
£m |
|
| Administrative expenses |
64.8 |
58.8 |
| Syndicate exchange (gains)/losses |
(25.7) |
16.1 |
|
| |
39.1 |
74.9 |
|
| Other expenses |
|
|
|
| Central management and other expenses |
6.8 |
11.0 |
| Marketing and administration |
0.6 |
0.4 |
| Depreciation |
2.4 |
2.5 |
| Employee incentives |
24.2 |
17.2 |
|
| |
34.0 |
31.1 |
|
| Total |
73.1 |
106.0 |
|
8 Directors' remuneration
The aggregate remuneration of the directors of the Company, including amounts received from subsidiaries, was:
|
2005
£m |
2004
£m |
|
| Emoluments of executive directors |
3.0 |
3.0 |
| Fees to non-executive directors |
0.4 |
0.4 |
|
| |
3.4 |
3.4 |
| Pension contributions |
0.2 |
0.2 |
|
| |
3.6 |
3.6 |
|
Remuneration includes remuneration during the period of office only. Details of directors' remuneration and pension benefits, including those of the highest paid director, are included in the Directors' remuneration report starting here. Payments were made to defined benefit pension schemes for two executive directors and to defined contribution schemes for two executive directors.
9 Employee benefit expenses
The average number of persons employed by the Group, including individuals on fixed term contracts and directors, were:
|
2005
|
2004
|
|
| Underwriting divisions |
|
|
| Underwriting, claims and reinsurance |
356 |
346 |
| Administration and support |
125 |
124 |
| Central functions |
|
|
| Operations |
66 |
64 |
| Finance |
68 |
56 |
| Internal audit and compliance |
10 |
9 |
|
| |
625 |
599 |
|
The aggregate payroll costs incurred by Group companies and Syndicate 2001, including amounts attributable to third party names, is analysed as follows:
|
2005
£m
|
2004
£m
|
|
| Wages and salaries |
29.0 |
24.7 |
| Employee incentive and related social security costs |
24.2 |
17.3 |
| Share options granted to directors and employees |
0.7 |
0.6 |
| Social security costs |
5.6 |
3.9 |
| Pension costs - defined contribution schemes (note 26) |
2.4 |
1.7 |
| Pension costs - defined benefit schemes (note 26) |
5.8 |
8.4 |
|
| |
67.7 |
56.6 |
|
| Payroll costs attributable to third party members |
(0.8) |
(1.9) |
|
| Payroll costs retained in the Group |
66.9 |
54.7 |
|
10 Finance costs
|
2005
£m
|
2004
£m
|
|
| Letter of credit commissions |
2.3 |
4.4 |
| Subordinated bond interest |
4.3 |
0.4 |
| Loan interest |
3.8 |
- |
|
| |
10.4 |
4.8 |
|
|
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