TIDMTAW
RNS Number : 4761O
Tawa PLC
20 September 2013
PRESS RELEASE 20 SEPTEMBER 2013
FOR IMMEDIATE RELEASE
INTERIM RESULTS ANNOUNCEMENT
Tawa plc
Unaudited interim results for the six months ended 30 June
2013
Tawa plc ("Tawa" or "the Group") today announces unaudited
interim results for the six months ended 30 June 2013.
Activity Highlights
-- Tawa on track for the 2013 plan:
o Experiencing higher than expected growth on the service
business hence better profitability;
o Supporting the development of incubated companies; and
o Successfully working on the reduction of reserves in its risk
carriers, whilst still suffering a high level of lead paint
claims.
-- Integration of Tawa servicing entities on track, with 'one
Team' project roll out, the rebranding of Chiltington entities to
the "Pro" brand, and new appointments and organisational changes to
strengthen servicing teams and accelerate integration;
-- As announced, on 16 April 2013, Tawa completed the sale of
the risk carrier KX Re and its direct subsidiary OX Re to Catalina
Holdings (Bermuda) Limited, finalising a cash-on-cash return on the
investment of $46.6 million.
Finance Highlights
-- External revenues of $20.7 million (30 June 2012: $16.1 million);
-- Reduced operating loss for the half year: $5.7 million (30 June 2012: loss $6.5 million);
-- A final accounting loss of $21.3 million has been recognised
upon the sale of KX Re resulting in an overall Group loss of $27.0
million for the period;
-- Increased positive earnings from the service division of $1.7
million (30 June 2012: profit $0.6 million);
-- Group net assets: $152.1 million (31 December 2012: $178.5 million); and
-- Net assets per share in US dollars: $1.34/GBP0.85 per share
(31 December 2012: $1.57/GBP1.01).
Tawa's first goal for 2013 was a continuation of its efforts to
grow the service business and restore profitability. Emphasis on
reducing the cost base, coupled with significant new contract
business, has ensured positive earnings growth in this division.
The incubators Q360 and Lodestar Marine are now establishing
growing income streams to absorb some of the expense of continued
investment, and the Group's share in its associate Asta delivered a
profit in the half year.
The second goal of reducing volatility of its risk carriers has
been demonstrated through the sale of KX Re, though this represents
just one aspect of this focus.
Gilles Erulin, Chief Executive, commented:
"A lot of work had been going on in the turnaround of our
various subsidiaries, especially in the servicing division. Our
long-standing clients, complemented by very large new clients, have
responded well to the efforts of our staff to adapt to their
changing needs. The interim results provide indications that these
turnaround effects are bearing fruit. The same is true for our
incubator investments, especially Lodestar Marine".
--ENDS-
Enquiries:
Gilles Erulin, Chief Executive, Tawa plc 020 7068 8000
Michael Gaughan, FWD 020 7623 2368
James Britton, or Guy Wiehahn, Peel Hunt (Nominated
Adviser and Broker) 020 7418 8900
Notes for Editors:
Tawa plc was formed in 2001 and is a specialised investor in the
insurance industry. In the last few years, Tawa has moved from
being a pure run-off risk owner towards being a multi-segment
investor in the insurance market, expanding significantly in the
servicing arena of the international insurance industry.
Tawa invests in acquiring run-off portfolios ("Portfolios",
"Risk Carriers") and investing in servicing business. The Group
also operates as an incubator for new projects and has invested
alongside professional teams to create two new businesses, Q360 and
Lodestar Marine, in addition to developing its own products to
serve the insurance market as a whole such as STRIPE(R) .
On the portfolio front, Tawa has been an acquirer of insurance
entities in run-off including CX Reinsurance Company Limited,
Hamburger Internationale Rückversicherung AG (HIR), LGIC Holdings,
LLC, PXRE Reinsurance Company, Island Capital Limited, Island
Capital (Europe) Ltd and Pavant SAS (formerly Pavant International
Re S.A). As an alternative technique to assuming run-off risks,
Tawa established a dedicated reinsurance vehicle, QX Reinsurance
Company Limited, in Bermuda to reinsure portfolios. Through HIR, a
German reinsurance company, Tawaoffers a vehicle for European
run-off portfolios transfers under the European Union portfolios
transfer directive.
On the service side, Tawa acquired Pro Insurance Solutions Ltd
("Pro") in 2009 and the Chiltington Consulting Group in April 2012.
Both service companies have a trading name of Pro.
Pro is a leading global provider of outsourcing and consultancy
services, focusing solely on the (re)insurance market. Located in 4
major markets, Pro provides round the clock service for
underwriting support, claims management, broking and consulting
services to a wide range of international clients, from single
entities to complex pools with complex assumed and reinsurance
portfolios.
Pro's virtual services platform offers a "one-stop shop"
solution for broking and underwriting teams, by supplying premises,
systems and infrastructure.
As part of its expansion in the Lloyd's market, in January 2012,
Tawa became the owner of 33% of Asta, the leading turnkey agency
management services company in Lloyd's.
In July 2007 Tawa plc was listed on the AIM market.
Further information can be found on the Company's website:
www.tawaplc.co.uk.
Interim results
Highlights
For the 2013 year, Tawa plc ("Tawa") had set itself the
following key strategic goals: grow the service business and
restore its profitability; while continuing to reduce the
volatility of the risk carriers. On the first goal, work streams
continue with better integrated platforms across the various
subsidiaries and regions, and cost synergies. Emphasis on reducing
the cost base, coupled with significant new contract business, has
ensured a better than forecast result for this segment. Whilst the
Group still absorbs the expense of the continuing investment in
broker and MGA start-ups, both are beginning to generate a growing
income stream. On the run-off portfolios, whilst dealing with the
lead paint development continues to be the primary focus, the
previously announced sale of KX Reinsurance Company Limited ("KX
Re") and its direct subsidiary OX Reinsurance Company Limited ("OX
Re") is illustrative of the volatility reduction effort which also
encompasses portfolio downscaling and potential sales of some
assets.
Summary of interim financial results
30 Jun 2013 $m 30 Jun 2012 $m
------------------- ------------------
External revenue 20.7 16.1
Profit recognised in respect of service division for the period 1.7 0.6
Profit/(loss) recognised in respect of share of associate Asta for the
period 1.3 (0.8)
------------------- ------------------
Total servicing profit/(loss) 3.0 (0.2)
(Loss)/profit recognised in respect of risk carriers for the period (1.2) 1.9
Loss recognised in respect of corporate costs for the period (4.0) (3.1)
Loss recognised in respect of incubator costs for the period (1.8) (3.5)
Loss recognised in respect of finance costs for the period (1.2) (1.6)
Loss before disposal of assets (5.2) (6.5)
Loss recognised in respect of acquisition/disposal related costs for the
period (0.5) -
Loss on disposal of KX Re (21.3) -
Loss for the year attributable to owners of the Company (27.0) (6.5)
------------------- ------------------
Group surplus 152.1 193.3
-- Loss for the period attributable to owners of the Company was
$27.0 million (30 June 2012: loss $6.5 million);
-- The Group's total equity has decreased by $26.4 million since
31 December 2012 to $152.1 million as at 30 June 2013;
-- Net assets per share in sterling decreased from GBP1.01 to
GBP0.85 ($ decreased from $1.57 to $1.34); and
-- The Group's net tangible assets are $128.3 million (31 December 2012: $154.6 million).
On 16 April 2013, Tawa completed the sale of the risk carrier KX
Re and its direct subsidiary OX Re to Catalina Holdings (Bermuda)
Limited. This disposal resulted in an accounting loss in 2013 of
$21.3 million under IFRS accounting. However, the sale finalised a
cash-on-cash return of $46.6 million (total purchase and interest
costs of $71.7 million against total capital extractions,
management fees and sale price of $118.3 million) for the Group
since the acquisition of KX Re in May 2007. The sale also enabled
management to deleverage the platform. The cash-on-cash numbers are
considered a better indicator of how Tawa's investment portfolio
creates value for its shareholders.
Financial review
During the first six months of 2013, Tawa recognised net losses
of $27.0 million compared to net losses of $6.5 million in the six
months to 30 June 2012. The half-year 2013 figures include a loss
of $21.3 million recognised upon the sale of KX Re, thus the
underlying loss of $5.7 million from operational activities
indicates improved performance against the prior year. During the
period Group net assets decreased by $26.4 million, from $178.5
million ($1.57/GBP1.01 per share) at 31 December 2012 to $152.1
million ($1.34/GBP0.85 per share) at 30 June 2013 mainly as a
result of the KX Re sale.
Dividend and dividend policy
No dividend will be distributed in 2013 in relation to the
results for the 2012 financial year. The Group does not propose the
payment of a dividend to shareholders in relation to the six month
period to 30 June 2013 (June 2012: GBPnil).
Operational results
Tawa has the following divisions with clearly identified lines
of business, namely:
-- risk carriers/insurance divisionwhich holds the Group's
acquired insurance entities in run-off (risk carriers).
Profitability is achieved by effectively managing these assets and
liabilities;
-- service providers which comprise a platform that generates
income from consulting and outsourcing. Consulting typically
includes work provided directly for clients and the outsourcing
division includes work done on behalf of clients on Tawa's
platform; and
-- corporate division which comprises incubators, all Group
overheads, corporate costs, acquisition activities and
financing.
Risk carriers/insurance division
Tawa generates value from run-offs in a variety of ways,
depending on the nature of each run-off entity in question. These
strategies include:
-- Buying net assets at a significant discount to economic value
and accelerating capital extraction; and
-- Buying volatile books of business and applying its management
techniques to create value and reduce volatility.
This division comprises the results from the following run-off
companies in which Tawa held the following interests at the
reporting date:
Place of incorporation (or registration)
Subsidiary and operation Portion of ownership interest
------------------------------------------ ------------------------------------------ ------------------------------
PXRE Reinsurance Company ("PXRE") United States Connecticut 100%
Hamburger Internationale
Rückversicherung ("HIR") Germany 100%
Island Capital Ltd ("ICL") Bermuda 94.30%
Island Capital (Europe) Ltd ("ICE") Great Britain 94.30%
Pavant SAS - formerly Pavant
International Re S.A ("PIR") France 100%
QX Reinsurance Company Limited ("QX
Re") Bermuda 100%
Associate
------------------------------------------ ------------------------------------------ ------------------------------
CX Reinsurance Company Limited ("CX
Re") Great Britain 12.65%
CX Re was initially a subsidiary of the Group but on 21 March
2006 Tawa disposed of 87.35% of its shareholding. In accordance
with IFRS, the retained shareholding of 12.65% has been accounted
for as an associate since that date. Although the Company disposed
of 87.35% of CX Re the deferred consideration receivable on the
sale will reflect the current net asset value of CX Re. At 30 June
2013, the total deferred consideration was $47.8 million (June
2012: $48.0 million).
The risk carriers' net loss of $1.2 million (June 2012: profit
of $1.9 million), excluding taxation which is subject to group
relief and any intergroup fees which are eliminated on
consolidation, is summarised below:
Group risk carriers Associate
------ ---- ---------------------------------------------------- -----------
HIR 30
KX ICG OX Group Total Jun
Re PXRE (1) Re QX Re (2) Group CX Re 2013 30 Jun 2012
$m $m $m $m $m $m $m $m $m $m
-------------------- ------ -------- ------ ------ ------ ------ ---------- ----------- ------ ----------------------
Results
ALM results 0.3 (0.2) 0.2 (0.1) 0.1 0.4 0.7 (0.6) 0.1 3.3
Premium and other
income 0.2 - - - - - 0.2 (0.2) - 1.0
Liability management (0.4) (1.9) 0.1 - - 0.7 (1.5) 4.3 2.8 (1.1)
Expenses 0.3 - (0.3) - (0.4) (0.9) (1.3) (2.5) (3.8) (1.3)
Discontinued operation
eliminated in period (0.4) - - 0.1 - - (0.3) - (0.3) -
------ -------- ------ ------ ------ ------ ---------- ----------- ------ ----------------------
Group profit/(loss) for
the year - (2.1) - - (0.3) 0.2 (2.2) 1.0 (1.2) 1.9
Group relief payment of
surrendered losses - - (0.1) - - - (0.1) - (0.1) (2.0)
Intergroup fees
eliminated on
consolidation - - - - - - - (0.5) (0.5) (1.6)
------ -------- ------ ------ ------ ------ ---------- ----------- ------ ----------------------
Segmental profit/(loss)
for the year - (2.1) (0.1) - (0.3) 0.2 (2.3) 0.5 (1.8) (1.7)
Capital extracted - - - - - - - - - (2.4)
(1) ICG includes the results of ICL and ICE.
(2) HIR Group includes the results of HIR and PIR.
No dividends were paid during the period (2012: A dividend of
$2.4 million was paid by OX Re).
Service providers
Tawa's servicing platform comprises income from both consulting
and outsourcing. Consulting typically refers to work provided
directly for its clients and the outsourcing division refers to
work Tawa does on behalf of clients on its operating platform.
This division comprises the results from the following service
companies, in which Tawa had the following interests at the
reporting date:
Place of incorporation (or registration)
Subsidiary and operation Portion of ownership interest
------------------------------------------ ------------------------------------------ ------------------------------
Pro Insurance Solutions Limited
("Pro") Great Britain 100%
Pro IS, Inc ("Pro IS") United States Delaware 100%
Tawa Consulting Limited ("TCL") Great Britain 100%
Chiltington group of companies
("Chiltington") (1) Various 100%
(1) Chiltington group of companies reported under this segment
comprises all entities with the exception of the risk carrier
HIR.
The service providers' net profit of $1.7 million (June 2012:
profit of $0.6 million), excluding any taxation which will be
eliminated on consolidation under group relief, is summarised
below:
Pro (1) TCL Chiltington 30 Jun 2013 30 Jun 2012
$m $m $m $m $m
----------------- --------------------- ------------------ ------------------ ------------------ ----------------
Results
Revenue from
services 14.8 - 3.8 18.6 13.6
Other income 0.7 - - 0.7 2.1
Cost of services (13.8) - (3.8) (17.6) (15.1)
--------------------- ------------------ ------------------ ------------------ ----------------
Group
profit/(loss)
for the year 1.7 - - 1.7 0.6
Taxation
eliminated
under group
relief (0.1) - - (0.1) (0.3)
--------------------- ------------------ ------------------ ------------------ ----------------
Segmental
profit/(loss)
for the year 1.6 - - 1.6 0.3
Capital
extracted - - - - (3.2)
(1) Pro includes the results of Pro and Pro IS.
No dividends were paid during the period (2012: A dividend of
$3.2 million was paid by Pro).
Corporate division
This division incorporates corporate costs and Group overheads,
incubator costs, acquisition activities and financing resulting in
a loss of $27.5 million (June 2012: loss of $9.0 million) as
summarised below:
30 Jun 2013 30 Jun 2012
$m $m
--------------------------------------------- --------------------- ------------------
Corporate costs
Tawa plc (2.5) (2.3)
Share based payment accrual - (0.2)
Holding company costs (0.1) -
Other (1.4) (0.4)
--------------------- ------------------
Total corporate costs (4.0) (2.9)
Total acquisition/disposal related costs (0.5) (0.2)
Incubator costs (1.8) (3.5)
Finance costs (1.2) (1.6)
Share of result in associate Asta 1.3 (0.8)
Loss on disposal of subsidiary KX Re (21.3) -
--------------------- ------------------
Group loss for the year (27.5) (9.0)
Group tax relief 0.2 2.3
Intergroup fees eliminated on consolidation 0.5 1.6
--------------------- ------------------
Segmental loss for the year (26.8) (5.1)
--------------------- ------------------
The ongoing investment in incubators remains significant.
Operating costs of Q360 Limited $1.9 million (June 2012: $2.0
million), Lodestar Marine Limited $1.7 million (June 2012: $1.1
million) and STRIPE(R) $0.4 million (June 2012: $0.4 million) were
partly offset by combined revenues of $2.2 million (June 2012: $0.3
million). As these investments represent development of new
projects, it is accepted that the generation of positive cash flows
will take varying amounts of time and the Group is implementing
measures to control costs.
Tawa's associate Asta Capital Limited returned a trading profit
for the period of $6.8 million, before finance costs of $1.2
million and adjustment for goodwill. It reported a final overall
profit for the period of $3.8 million, of which Tawa has a 33.33%
share. Tawa's share of the result for the period was $1.3 million
profit (June 2012: loss of $0.8 million).
Prospects
The remainder of 2013 will see a continuation of efforts to grow
the service business both in size and earnings. Volatility
reduction and downscaling will continue for the risk carriers. At
Group level, Tawa's agenda remains: deleveraging, cost savings and
the restoration of an internal and external investment
capacity.
Condensed consolidated income statement For the period ended 30
June 2013
6 months 6 months 12 months
30 Jun 2013 30 Jun 2012 31 Dec 2012
restated restated
(Unaudited) (Unaudited) (Audited)
Notes $m $m $m
-------------------------------------- ------ ---------------------- ---------------------- ----------------------
Income from continuing operations
Insurance premium revenue 0.3 0.2 (0.2)
Insurance premium ceded to reinsurers - (0.2) (0.1)
Commission income 1.9 0.1 1.1
-------------------------------------- ------ ---------------------- ---------------------- ----------------------
Net earned premium revenue 2.2 0.1 0.8
Revenue from consultancy, insurance
and run-off services 20.7 16.1 33.0
Investment return 1.2 2.4 5.6
Other income 0.5 2.1 8.4
-------------------------------------- ------ ---------------------- ---------------------- ----------------------
Income 22.4 20.6 47.0
Total income 24.6 20.7 47.8
-------------------------------------- ------ ---------------------- ---------------------- ----------------------
Insurance claims and loss adjustment
expenses (2.0) (1.5) (6.1)
Insurance claims and loss adjustment
expenses recovered from reinsurers 0.5 0.4 (3.7)
-------------------------------------- ------ ---------------------- ---------------------- ----------------------
Net insurance claims (1.5) (1.1) (9.8)
-------------------------------------- ------ ---------------------- ---------------------- ----------------------
Total expenses (28.8) (23.1) (54.4)
-------------------------------------- ------ ---------------------- ---------------------- ----------------------
Results of operating activities
before negative goodwill recognised (5.7) (3.5) (16.4)
Negative goodwill recognised - - 0.3
Results of operating activities (5.7) (3.5) (16.1)
Share of results of associates 1.4 (0.8) (1.2)
Finance costs (1.7) (1.5) (5.0)
-------------------------------------- ------ ---------------------- ---------------------- ----------------------
Loss before taxation (6.0) (5.8) (22.3)
Taxation (0.4) 2.0 1.8
-------------------------------------- ------ ---------------------- ---------------------- ----------------------
Loss for the period from continuing
operations (6.4) (3.8) (20.5)
Loss for the period from discontinued
operations 7 (20.6) (2.7) (2.0)
---------------------- ---------------------- ----------------------
Loss for the period (27.0) (6.5) (22.5)
-------------------------------------- ------ ---------------------- ---------------------- ----------------------
Attributable to:
Owners of the Company (27.0) (6.5) (22.5)
Non-controlling interests - - -
---------------------- ---------------------- ----------------------
(27.0) (6.5) (22.5)
-------------------------------------- ------ ---------------------- ---------------------- ----------------------
Earnings per share
From continuing and discontinued
operations
Basic: Ordinary shares (cents per
share) 8 (23.81) (5.78) (20.22)
Diluted: Ordinary shares (cents per
share) 8 (23.81) (5.78) (20.22)
-------------------------------------- ------ ---------------------- ---------------------- ----------------------
From continuing operations
Basic: Ordinary shares (cents per
share) 8 (5.64) (3.38) (18.42)
Diluted: Ordinary shares (cents per
share) 8 (5.64) (3.38) (18.42)
-------------------------------------- ------ ---------------------- ---------------------- ----------------------
Condensed consolidated statement of comprehensive income For the
period ended 30 June 2013
6 months 6 months 12 months
30 Jun 2013 30 Jun 2012 31 Dec 2012
(Unaudited) (Unaudited) (Audited)
$m $m $m
---------------------------------------------- ---------------------- ---------------------- ----------------------
Loss for the period (27.0) (6.5) (22.5)
Other comprehensive income/(losses)
Items that may be reclassified subsequently
to profit or loss
Currency translation differences 0.6 (0.4) 0.6
---------------------------------------------- ---------------------- ---------------------- ----------------------
0.6 (0.4) 0.6
Total comprehensive losses for the period (26.4) (6.9) (21.9)
---------------------------------------------- ---------------------- ---------------------- ----------------------
Attributable to:
Owners of the Company (26.4) (6.9) (21.9)
Non-controlling interests - - -
----------------------------------------------
(26.4) (6.9) (21.9)
---------------------------------------------- ---------------------- ---------------------- ----------------------
Condensed consolidated statement of financial position As at 30
June 2013
30 Jun 2013 30 Jun 2012 31 Dec 2012
(Unaudited) (Unaudited) (Audited)
Notes $m $m $m
------------------------------------------------------- ------ ------------- ------------- -------------
Assets
Cash and cash equivalents 46.4 63.3 57.0
Financial assets - investments 173.0 279.7 249.9
Loans and receivables including insurance receivables 42.4 60.9 59.0
Reinsurers' share of technical provisions 8.1 41.4 27.9
Property, plant and equipment 2.0 1.9 1.6
Deferred assets 10 47.8 48.0 48.7
Interest in associates 15.1 14.3 13.9
Other intangible assets 1.0 2.2 1.1
Goodwill 22.8 23.7 22.8
Total assets 358.6 535.4 481.9
------------------------------------------------------- ------ ------------- ------------- -------------
Equity
Share capital 22.2 22.2 22.2
Share premium 110.6 110.6 110.6
Other reserves 4.0 2.2 3.4
Retained earnings 14.3 57.3 41.3
------------------------------------------------------- ------ ------------- ------------- -------------
Equity attributable to owners of the Company 151.1 192.3 177.5
Non-controlling interests 1.0 1.0 1.0
Total equity 152.1 193.3 178.5
------------------------------------------------------- ------ ------------- ------------- -------------
Liabilities
Creditors arising out of insurance operations 61.5 69.4 71.2
Other liabilities 38.0 38.4 41.0
Financial liabilities - borrowings 52.1 59.5 60.5
Technical provisions 54.9 174.8 130.7
Total liabilities 206.5 342.1 303.4
------------------------------------------------------- ------ ------------- ------------- -------------
Total liabilities and equity 358.6 535.4 481.9
------------------------------------------------------- ------ ------------- ------------- -------------
Condensed consolidated statement of changes in equity As at 30
June 2013
Share based
Share premium payments Own shares Translation Retained Non-controlling Total
Issued capital reserve reserve reserve reserve earnings Total interests Equity
$m $m $m $m $m $m $m $m $m
--------------- ------------------- -------------------- ---------------- ------------- ------------------- ---------------- ------- ----------------- --------
Balance at 1
January 2012 22.2 111.4 3.7 (2.6) (1.3) 63.8 197.2 1.0 198.2
Comprehensive
loss
Loss for the
period - - - - - (6.5) (6.5) - (6.5)
Other
comprehensive
income
Currency
translation
differences - - - - (0.4) - (0.4) - (0.4)
Total
comprehensive
loss for the
period - - - - (0.4) (6.5) (6.9) - (6.9)
--------------- ------------------- -------------------- ---------------- ------------- ------------------- ---------------- ------- ----------------- --------
Transactions
with owners
Issue of share
capital 0.4 1.4 - - - - 1.8 - 1.8
Share based
payments - - 0.2 - - - 0.2 - 0.2
Own shares
cancelled in
the period (0.4) (2.2) - 2.6 - - - - -
Total
transactions
with owners - (0.8) 0.2 2.6 - - 2.0 - 2.0
--------------- ------------------- -------------------- ---------------- ------------- ------------------- ---------------- ------- ----------------- --------
Balance at 30
June 2012 22.2 110.6 3.9 - (1.7) 57.3 192.3 1.0 193.3
--------------- ------------------- -------------------- ---------------- ------------- ------------------- ---------------- ------- ----------------- --------
Balance at 1
July 2012 22.2 110.6 3.9 - (1.7) 57.3 192.3 1.0 193.3
Comprehensive
loss
Loss for the
period - - - - - (16.0) (16.0) - (16.0)
Other
comprehensive
income
Currency
translation
differences - - - - 1.0 - 1.0 - 1.0
Total
comprehensive
loss for the
period - - - - 1.0 (16.0) (15.0) - (15.0)
--------------- ------------------- -------------------- ---------------- ------------- ------------------- ---------------- ------- ----------------- --------
Transactions
with owners
Share based
payments - - 0.2 - - - 0.2 - 0.2
Total
transactions
with owners - - 0.2 - - - 0.2 - 0.2
--------------- ------------------- -------------------- ---------------- ------------- ------------------- ---------------- ------- ----------------- --------
Balance at 31
December 2012 22.2 110.6 4.1 - (0.7) 41.3 177.5 1.0 178.5
--------------- ------------------- -------------------- ---------------- ------------- ------------------- ---------------- ------- ----------------- --------
Share based
Issued Share premium payments Own shares Translation Retained Non-controlling Total
capital reserve reserve reserve reserve earnings Total interests Equity
$m $m $m $m $m $m $m $m $m
--------------- --------------- ---------------- ---------------- ------------- ------------------- ---------------- ------- ----------------- --------
Balance at 1
January 2013 22.2 110.6 4.1 - (0.7) 41.3 177.5 1.0 178.5
Comprehensive
loss
Loss for the
period - - - - - (27.0) (27.0) - (27.0)
Other
comprehensive
income
Currency
translation
differences - - - - 0.6 - 0.6 - 0.6
--------------- --------------- ---------------- ---------------- ------------- ------------------- ---------------- ------- ----------------- --------
Total
comprehensive
profit/(loss)
for the
period - - - - 0.6 (27.0) (26.4) - (26.4)
--------------- --------------- ---------------- ---------------- ------------- ------------------- ---------------- ------- ----------------- --------
Transactions
with owners
Share based
payments - - - - - - - - -
Total
transactions
with owners - - - - - - - - -
--------------- --------------- ---------------- ---------------- ------------- ------------------- ---------------- ------- ----------------- --------
Balance at 30
June 2013 22.2 110.6 4.1 - (0.1) 14.3 151.1 1.0 152.1
--------------- --------------- ---------------- ---------------- ------------- ------------------- ---------------- ------- ----------------- --------
Condensed consolidated statement of cash flows
For the period ended 30 June 2013
6 months 6 months 12 months
30 Jun 2013 30 Jun 2012 31 Dec 2012
(Unaudited) (Unaudited) (Audited)
Notes $m $m $m
---------------------------------------------------------------- ------- ------------- ------------- -------------
Net cash used in operations 11 (21.1) (36.2) (76.4)
---------------------------------------------------------------- ------- ------------- ------------- -------------
Investing activities
Cash payments to acquire debt securities (159.7) (170.7) (318.4)
Cash receipts from sale or maturity of debt securities 183.6 193.1 368.1
Cash transferred from investing activities 2.4 5.9 8.3
Cash receipts from interest 2.0 4.0 7.8
Purchases of property, plant and equipment - - (0.1)
Acquisition of investment in an associate - (10.1) (10.1)
Acquisition of subsidiary net of cash and cash equivalents
acquired - 9.2 9.1
Disposal of subsidiary net of tax, cash and cash equivalents
disposed of (10.1) - -
---------------------------------------------------------------- -------
Cash generated by investing activities 18.2 31.4 64.7
---------------------------------------------------------------- ------- ------------- ------------- -------------
Financing activities
Proceeds from financial borrowings - 23.2 24.1
Repayments of financial borrowings (7.8) - -
---------------------------------------------------------------- -------
Cash flows (used in)/generated by financing activities (7.8) 23.2 24.1
---------------------------------------------------------------- ------- ------------- ------------- -------------
Net (decrease)/increase in cash and cash equivalents (10.7) 18.4 12.4
Cash and cash equivalents at beginning of period 57.0 44.7 44.7
Effects of exchange rate changes on the balance of cash held in
foreign currencies 0.1 0.2 (0.1)
Cash and cash equivalents at end of period 46.4 63.3 57.0
---------------------------------------------------------------- ------- ------------- ------------- -------------
Notes to the condensed consolidated financial statements For the
period ended 30 June 2013
1 General information
Tawa plc (the "Company") and its subsidiaries (together the
"Group") are engaged in four principal business activities:
-- The acquisition and run-off of insurance companies that have ceased underwriting;
-- The provision of insurance;
-- The provision of run-off management services to acquired insurance companies; and
-- The provision of insurance services to external clients.
On 16 April 2013, Tawa completed the sale of the risk carrier KX
Re and its direct subsidiary OX Re to Catalina Holdings (Bermuda)
Limited as part of the Group's active investment management program
with a view to volatility reduction.
The interim consolidated financial statements do not constitute
statutory accounts as defined in section 434 of the Companies Act
2006 and should be read in conjunction with the Group's
consolidated financial statements for the year ended 31 December
2012. A copy of the statutory accounts for that year has been
delivered to the Registrar of Companies. The auditors' report on
those accounts was not qualified, did not include a reference to
any matters to which the auditors draw attention by way of emphasis
without qualifying the report, and did not contain any statements
under section 498(2) or 498(3) of the Companies Act 2006.
The Directors have considered the position of the Group's
investments and assets compared to the technical provisions and
other liabilities. In addition they have assessed the Group's
liquidity with regard to expected future cash flows. They have also
considered the performance of the business, as discussed in the
interim results. In light of these reviews the Directors have
concluded that it is appropriate to adopt the going concern basis
in preparing the interim report.
The interim results have been reviewed by the Group's auditors,
Mazars LLP.
2 Significant accounting policies
The annual financial statements of Tawa plc are prepared in
accordance with IFRS as adopted by the European Union. The
condensed set of financial statements included in this interim
report has been prepared in accordance with International
Accounting Standard 34 "Interim Financial Reporting" as adopted by
the European Union.
The same accounting policies, presentation and methods of
computation are followed in these condensed consolidated financial
statements as were applied in the preparation of the Group's
consolidated financial statements for the year ended 31 December
2012.
3 Critical accounting judgements and estimates
The judgements and estimates made by management which have a
significant effect on the condensed consolidated financial
statements are consistent with those disclosed in the Group's
consolidated financial statements for the year ended 31 December
2012.
4 Financial risk management
The Group's activities expose it to a variety of financial
risks: market risk (including currency risk, fair value interest
rate risk, cash flow interest rate risk and price risk), credit
risk and liquidity risk.
The interim condensed consolidated financial statements do not
include all risk management information and disclosures required in
the annual financial statements, and should be read in conjunction
with the Group's consolidated financial statements for the year
ended 31 December 2012. There have been no changes since the year
end in any risk management policies.
5 Disposal of subsidiaries
KX Reinsurance Company Limited and OX Reinsurance Company
Limited
On 16 April 2013, the Group disposed of its risk carrier KX Re
and its direct subsidiary OX Re. The sale was part of the Group's
active investment management program with a view to volatility
reduction.
The business of KX Re comprised a collection of mature
portfolios of long-tail liabilities, including exposure to
asbestos, environmental and other latent claims. OX Re was a small
London market company which had been in run-off since 1994 and was
acquired by Tawa as a strategic investment in 2011.
Consideration received
Period ended 30 Jun 2013
$m
--------------------------
Consideration received 30.2
Inter company loan repaid (15.0)
Net consideration received
in cash 15.2
--------------------------- ------- ------------------------- ------------------------- --------------------------
Analysis of assets and liabilities over which control was lost
Date of disposal 16 April
KX Re OX Re Inter Group eliminations 2013
$m $m $m $m
------- ------------------------- ------------------------- --------------------------
Assets
Investments in
subsidiaries 5.6 - (5.6) -
Inter company loan with
Tawa plc 15.0 - (15.0) -
Cash and cash equivalents 19.7 5.6 - 25.3
Investments: Debt and
equity securities 40.1 - - 40.1
Loans and receivables
including insurance
receivables 6.7 - - 6.7
Reinsurers' share of
technical provisions 13.8 3.8 - 17.6
Liabilities
Creditors arising out of
reinsurance operations (2.0) - - (2.0)
Other liabilities - (0.1) - (0.1)
Technical provisions (47.1) (4.0) - (51.1)
Net assets disposed of 51.8 5.3 (20.6) 36.5
--------------------------- ------- ------------------------- ------------------------- --------------------------
Loss on disposal of subsidiary
Period ended 30 Jun 2013
$m
---------------------------------
Net consideration received in cash 15.2
Net assets disposed of (36.5)
Loss on disposal (21.3)
------------------------------------------------------------ ---------------------------------
The loss on disposal is included in the loss for the year from discontinued operations (see
note 7).
Net cashflow on disposal of subsidiary
Period ended 30 Jun 2013
$m
---------------------------------
Net consideration received in cash 15.2
Less: cash and cash equivalents disposed of (25.3)
Total consideration received (10.1)
------------------------------------------------------------ ---------------------------------
6 Segmental information
The Group's reportable segments under IFRS 8 are identified as
follows:
-- Underwriting run-off and insurance;
-- CX Re (associate) underwriting run-off;
-- Service providers; and
-- Other corporate activities.
The other corporate activities segment includes corporate
expenses and other activities not related to the core business
segments and which are not reportable segments due to their
immateriality. Certain expenses and taxes are not allocated across
the segments.
The accounting policies of the reportable segments are not the
same as the Group's accounting policies. The segmental reporting
includes the results for associate CX Re in relation to all equity
holders as an operating segment, whereas the financial statements
show the results for CX Re as a non-operating activity; namely
share of results of associate and loss for the year from
discontinued operations. A reconciliation to the financial
statements has been performed.
Segment income and results
The following is an analysis of the Group's revenue and result
by reportable segment.
Underwriting CX Re Other Reconciliation
run-off and underwriting Service corporate Discontinued to financial
insurance run-off providers activities operations Intra-group statements Total
For the period ended 30
June 2013 $m $m $m $m $m $m $m $m
------------------------- -------------- -------------- ------------- ------------- --------------- ------------- ---------------- ---------------
Continuing operations
Income
Insurance premium expense 0.3 - - - - - - 0.3
Insurance premium ceded to
reinsurers - (0.1) - - - - 0.1 -
Commission income - - - 1.9 - - - 1.9
----------------------------- -------------- -------------- ------------- ------------- --------------- ------------- ---------------- ---------------
Net earned premium expense 0.3 (0.1) - 1.9 - - 0.1 2.2
Revenue from consultancy and
run-off services - - 20.6 4.7 - (4.6) - 20.7
Investment return 1.9 (2.2) - (0.3) (0.4) - 2.2 1.2
Other income 0.4 0.2 0.9 (0.6) (0.2) - (0.2) 0.5
----------------------------- -------------- -------------- ------------- ------------- --------------- ------------- ---------------- ---------------
Total other income 2.3 (2.0) 21.5 3.8 (0.6) (4.6) 2.0 22.4
Total income 2.6 (2.1) 21.5 5.7 (0.6) (4.6) 2.1 24.6
----------------------------- -------------- -------------- ------------- ------------- --------------- ------------- ---------------- ---------------
Insurance claims and loss
adjustment expenses (2.5) 7.3 - 0.1 0.4 - (7.3) (2.0)
Insurance claims and loss
adjustment expenses
recovered from reinsurers 0.5 (1.2) - - - - 1.2 0.5
----------------------------- -------------- -------------- ------------- ------------- --------------- ------------- ---------------- ---------------
Net insurance claims (2.0) 6.1 - 0.1 0.4 - (6.1) (1.5)
----------------------------- -------------- -------------- ------------- ------------- --------------- ------------- ---------------- ---------------
Segment expenses (1.8) (3.5) (19.7) (11.8) (0.1) 4.6 3.5 (28.8)
----------------------------- -------------- -------------- ------------- ------------- --------------- ------------- ---------------- ---------------
Segment results of operating
activities (1.2) 0.5 1.8 (6.0) (0.3) - (0.5) (5.7)
----------------------------- -------------- -------------- ------------- ------------- --------------- ------------- ---------------- ---------------
Share of results of
associate - - - 1.3 - - 0.1 1.4
Finance costs (1.0) - - (0.7) - - - (1.7)
Taxation (0.1) - (0.2) (0.1) - - - (0.4)
Loss for the period from
discontinued operations - - - (21.3) 0.3 - 0.4 (20.6)
-----------------------------
Segment (loss)/profit for
the period (2.3) 0.5 1.6 (26.8) - - - (27.0)
----------------------------- -------------- -------------- ------------- ------------- --------------- ------------- ---------------- ---------------
Underwriting CX Re Other Reconciliation
run-off and underwriting Service corporate Discontinued to financial
insurance run-off providers activities operations Intra-group statements Total
For the period
ended 30 June
2012 $m $m $m $m $m $m $m $m
--------------- -------------- -------------- ------------- ------------- --------------- ------------- ---------------- -------
Continuing
operations
Income
Insurance
premium
expense 0.2 (0.7) - - - - 0.7 0.2
Insurance
premium ceded
to reinsurers (0.2) (0.4) - - - - 0.4 (0.2)
Commission
income - - - 0.1 - - - 0.1
--------------- -------------- -------------- ------------- ------------- --------------- ------------- ---------------- -------
Net earned
premium
expense - (1.1) - 0.1 - - 1.1 0.1
Revenue from
consultancy
and run-off
services - - 18.0 7.6 - (9.5) - 16.1
Investment
return 4.0 2.7 - - (1.6) - (2.7) 2.4
Other income 1.9 - 2.1 - (1.9) - - 2.1
--------------- -------------- -------------- ------------- ------------- --------------- ------------- ---------------- -------
Total other
income 5.9 2.7 20.1 7.6 (3.5) (9.5) (2.7) 20.6
Total income 5.9 1.6 20.1 7.7 (3.5) (9.5) (1.6) 20.7
--------------- -------------- -------------- ------------- ------------- --------------- ------------- ---------------- -------
Insurance
claims and
loss
adjustment
expenses (3.8) (1.9) - - 2.3 - 1.9 (1.5)
Insurance
claims and
loss
adjustment
expenses
recovered
from
reinsurers 0.7 0.8 - - (0.3) - (0.8) 0.4
--------------- -------------- -------------- ------------- ------------- --------------- ------------- ---------------- -------
Net insurance
claims (3.1) (1.1) - - 2.0 - 1.1 (1.1)
--------------- -------------- -------------- ------------- ------------- --------------- ------------- ---------------- -------
Segment
expenses (2.1) (0.8) (19.6) (12.8) 1.9 9.5 0.8 (23.1)
--------------- -------------- -------------- ------------- ------------- --------------- ------------- ---------------- -------
Segment
results of
operating
activities 0.7 (0.3) 0.5 (5.1) 0.4 - 0.3 (3.5)
--------------- -------------- -------------- ------------- ------------- --------------- ------------- ---------------- -------
Share of
results of
associate - - - (0.8) - - - (0.8)
Finance costs (0.1) - - (1.4) - - - (1.5)
Taxation (2.0) - (0.2) 2.2 2.0 - - 2.0
Loss for the
period from
discontinued
operations - - - - (2.4) - (0.3) (2.7)
---------------
Segment
(loss)/profit
for the
period (1.4) (0.3) 0.3 (5.1) - - - (6.5)
--------------- -------------- -------------- ------------- ------------- --------------- ------------- ---------------- -------
Segment assets, liabilities and other information
The following is an analysis of the Group's net assets, capital
expenditure, impairment losses, depreciation and amortisation by
reportable segment.
Underwriting CX Re Other Reconciliation
run-off and underwriting Service corporate to financial
insurance run-off providers activities Intra-group statements Total
As at 30 June
2013 $m $m $m $m $m $m $m
-------------- -------------- -------------- ------------- ------------- ------------- ---------------- --------
Segment
assets 234.9 174.9 22.4 100.4 - (174.0) 358.6
Segment
liabilities (145.1) (136.5) (10.3) (51.1) - 136.5 (206.5)
Segment net
assets 89.8 38.4 12.1 49.3 - (37.5) 152.1
-------------- -------------- -------------- ------------- ------------- ------------- ---------------- --------
Depreciation - - (0.2) - - - (0. 2)
Amortisation
of
intangible
assets - - (0.1) - - - (0.1)
Amortisation
of risk
premium 0.2 - - - - - 0.2
-------------- -------------- -------------- ------------- ------------- ------------- ---------------- --------
Underwriting CX Re Other Reconciliation
run-off and underwriting Service corporate to financial
insurance run-off providers activities Intra-group statements Total
As at 30 June
2012 $m $m $m $m $m $m $m
-------------- -------------- -------------- ------------- ------------- ------------- ---------------- --------
Segment
assets 424.2 195.6 24.6 100.7 (15.3) (194.6) 535.2
Segment
liabilities (268.4) (156.9) (14.4) (74.4) 15.3 156.9 (341.9)
Segment net
assets 155.8 38.7 10.2 26.3 - (37.7) 193.3
-------------- -------------- -------------- ------------- ------------- ------------- ---------------- --------
Depreciation - - (0.4) - - - (0.4)
Amortisation
of
intangible
assets - - (0.1) - - - (0.1)
Amortisation
of risk
premium 0.2 - - - - - 0.2
-------------- -------------- -------------- ------------- ------------- ------------- ---------------- --------
For the purposes of monitoring segment performance and
allocating resources between segments, the Group Chief Executive
monitors the tangible, intangible and financial assets and
liabilities of each segment. All assets and liabilities are
allocated to reportable segments.
Geographical information
The Group's revenue and information about its segment net assets
by geographical location are as follows:
United Kingdom United States of America Total
As at 30 June 2013 $m $m $m
-------------------- --------------- ------------------------- ----------
Segment revenue 19.4 5.2 24.6
Segment net assets 63.7 88.4 152.1
-------------------- --------------- ------------------------- ----------
As at 30 June 2012 $m $m $m
-------------------- --------------- ------------------------- ----------
Segment revenue 15.8 4.9 20.7
Segment net assets 92.4 100.9 193.3
-------------------- --------------- ------------------------- ----------
Information about major customers
The Group does not derive revenue from an individual
policyholder or intermediary that represents 10% or more of the
Group's total revenue.
7 Discontinued operations
30 Jun 2013 30 Jun 2012 31 Dec 2012
$m $m $m
---------------------------------- ------------- ------------- -------------
Profit/(loss) arising from CX Re 0.4 (0.3) (0.2)
Profit/(loss) arising from KX Re 0.3 (2.4) (1.8)
Loss on disposal of KX Re (21.3) - -
Loss for the period (20.6) (2.7) (2.0)
---------------------------------- ------------- ------------- -------------
CX Reinsurance Company Limited
On 21 March 2006, the Company sold a significant proportion
(87.35%) of its "A" shareholding in CX Re to a consortium in which
the Company participates. The majority of the consideration
receivable is in the form of deferred consideration, any
adjustments to the deferred consideration are accounted for as a
profit/(loss) on sale of investment in the period in which the
adjustments to the deferred consideration arise. The results of the
discontinued operation which have been included in the consolidated
income statement are as follows:
30 Jun 2013 30 Jun 2012 31 Dec 2012
$m $m $m
------------------------------------- ------------- ------------- -------------
Profit/(loss) on sale of investment 0.4 (0.3) (0.2)
------------- ------------- -------------
Profit/(loss) for the period 0.4 (0.3) (0.2)
------------------------------------- ------------- ------------- -------------
KX Reinsurance Company Limited
On 16 April 2013, the Group disposed of its risk carrier KX Re
and its direct subsidiary OX Re.
The results of the discontinued operations, which have been
included in the consolidated income statement, were as follows:
30 Jun 2013 30 Jun 2012 31 Dec 2012
$m $m $m
------------------------- ------------------------- -------------------------
Net earned premium revenue - - -
Total other income 0.6 3.5 4.8
Net insurance claims (0.4) (2.0) (2.2)
Total expenses 0.1 (1.9) (2.4)
0.3 (0.4) 0.2
Loss on disposal of discontinued
operations (21.3) - -
(Loss)/profit before tax (21.0) (0.4) 0.2
Tax on profit or (loss) from the
ordinary activities of the
discontinued operation for the
period - (2.0) (2.0)
Net loss for the period from
discontinued operations (21.0) (2.4) (1.8)
------------------------- ------------------------- -------------------------
The effect of discontinued operations on segment results is
disclosed in note 6.
Where appropriate, the comparatives have been re-presented to
include those operations discontinued in the current year.
8 Earnings per share
30 Jun 2013 30 Jun 2012 31 Dec 2012
restated restated
Earnings $m $m $m
------------------------------------- ------------------------- ------------------------- -------------------------
Earnings for the purposes of basic
earnings per share from continuing
and discontinued operations
being net profit attributable to
equity holders of the Group (27.0) (6.5) (22.5)
Earnings for the purposes of basic
earnings per share from continuing
operations being net
loss attributable to equity holders
of the Group (6.4) (3.8) (20.5)
Number of shares 30 Jun 2013 30 Jun 2012 31 Dec 2012
------------------------------------- ------------------------- ------------------------- -------------------------
Weighted average number of Ordinary
Shares for the purposes of basic
earnings per share 113,375,177 112,481,734 111,263,808
Effect of dilutive potential
Ordinary Shares: Share options - - -
Weighted average number of Ordinary
Shares for the purposes of diluted
earnings per share 113,375,177 112,481,734 111,263,808
------------------------------------- ------------------------- ------------------------- -------------------------
30 Jun 2013 30 Jun 2012 31 Dec 2012
restated restated
Basic earnings per share US cents US cents US cents
------------------------------------- ------------------------- ------------------------- -------------------------
From continuing and discontinued
operations
Basic: Ordinary Shares (cents per
share) (23.81) (5.78) (20.22)
Diluted: Ordinary Shares (cents per
share) (23.81) (5.78) (20.22)
------------------------------------- ------------------------- ------------------------- -------------------------
From continuing operations
Basic: Ordinary Shares (cents per
share) (5.64) (3.38) (18.42)
Diluted: Ordinary Shares (cents per
share) (5.64) (3.38) (18.42)
------------------------------------- ------------------------- ------------------------- -------------------------
From discontinued operations
Basic: Ordinary Shares (cents per
share) (18.17) (2.40) (1.80)
Diluted: Ordinary Shares (cents per
share) (18.17) (2.40) (1.80)
------------------------------------- ------------------------- ------------------------- -------------------------
9 Dividends
The Group does not propose the payment of a dividend to
shareholders in relation to the interim period (June 2012:
GBPnil).
No dividend will be distributed in 2013 in relation to the
results for the 2012 financial year.
10 Deferred assets
Deferred assets relate to the consideration outstanding on the
disposal of a subsidiary CX Re, as described in note 7, and a
transaction facilitation fee. Part of the deferred consideration is
related to the net asset value of CX Re and is subject to net asset
value adjustments through the income statement.
30 Jun 2013 30 Jun 2012 31 Dec 2012
$m $m $m
------------------------ ------------- ------------- -------------
Facilitation fee 14.3 14.2 14.7
Deferred consideration 33.5 33.8 34.0
Deferred assets 47.8 48.0 48.7
------------------------ ------------- ------------- -------------
11 Cash used in operating activities
30 Jun 2013 30 Jun 2012 31 Dec 2012
(Unaudited) (Unaudited) (Audited)
$m $m $m
------------------------------------------ ----------------------------- ---------------------------- -------------
Operating loss - continuing operations (5.7) (3.5) (16.1)
Operating (loss)/profit - operation
discontinued in period 0.3 (0.4) 0.3
------------------------------------------ ----------------------------- ---------------------------- -------------
Operating loss for the period (5.4) (3.9) (15.8)
Adjustments for:
- negative goodwill - - (0.3)
- share of (profit)/loss of associate (1.4) - 1.2
- income tax expense (0.4) - (0.3)
- investment return for the period
transferred to investing activities (2.0) (4.0) (7.8)
- realised (gains)/losses on investments (7.4) 0.3 (0.5)
- unrealised losses/(gains) on
investments 8.2 (0.3) 0.6
- depreciation 0.3 0.4 0.6
- share based payment expense - 0.2 0.4
- amortisation of risk premium (0.2) (0.2) (0.3)
- amortisation of intangible asset (0.1) (0.1) (0.4)
- adjustment to amortised cost 0.9 0.7 0.2
- other gains and losses 19.0 (5.3) (6.4)
------------------------------------------ ----------------------------- ---------------------------- -------------
11.5 (12.2) (28.8)
Change in operating assets and
liabilities
Net decrease in insurance receivables and
liabilities (45.1) (16.1) (37.2)
Net (decrease)/increase in loans and
receivables (7.6) 0.4 (3.7)
Net increase/(decrease) in other
operating liabilities 21.2 (7.1) (4.5)
----------------------------- ---------------------------- -------------
Cash used in operations (20.0) (35.0) (74.2)
Finance costs (1.1) (1.2) (2.2)
------------------------------------------ ----------------------------- ---------------------------- -------------
Net cash used in operations (21.1) (36.2) (76.4)
------------------------------------------ ----------------------------- ---------------------------- -------------
12 Related party transactions
Transactions between the Company and its subsidiaries, which are
related parties, have been eliminated on consolidation and are not
disclosed in this note. Transactions and balances between the Group
and its associate are disclosed below.
Trading transactions
Tawa Management Limited provides insurance run-off management
services to CX Re an associate of the Group in which the Company
has a 12.65% equity interest and a 49.95% voting interest.
Run-off services are provided on a negotiated fee basis, the
terms and pricing of which are at arm's length. Run-off management
expenses are recharged at cost by Tawa Management Limited.
During the period Group companies entered into the following
transactions with related parties who are not members of the
Group:
Group income received
-------------------------------------------
30 Jun 2013 30 Jun 2012 31 Dec 2012
$m $m $m
---------------------------------------------------------------------- ------------- ------------- -------------
From associate CX Reinsurance Company Limited for a management fee 0.6 0.6 0.5
From associate CX Reinsurance Company Limited for expenses recharged 2.2 2.5 4.4
2.8 3.1 4.9
---------------------------------------------------------------------- ------------- ------------- -------------
At the period end, the following balances with related parties
who are not members of the Group were outstanding:
Amounts owed (to)/from related parties
--------------------------------------------------------------
30 Jun 2013 30 Jun 2012 31 Dec 2012
$m $m $m
------------------------------------------------------ --------------------- --------------------- ----------------
Amounts due from/(to) associate CX Reinsurance
Company Limited 0.5 0.2 -
------------------------------------------------------ --------------------- --------------------- ----------------
Key management personnel
The Group considers its key management personnel to include its
Executive and Non-Executive Directors and those members of
management reporting directly to its Board that have executive
management responsibility for Group-wide operations.
Remuneration of key management personnel
The remuneration of key management included in the income
statement is set out below in aggregate for each of the categories
specified in IAS 24 Related Party Disclosures.
30 Jun 2013 30 Jun 2012 31 Dec 2012
$m $m $m
------------------------------ --------------------- --------------------- ---------------------
Short-term employee benefits 2.0 2.0 3.4
Post-employment benefits 0.2 0.2 0.4
Share based payments 0.1 0.2 0.3
------------------------------ --------------------- --------------------- ---------------------
Management remuneration 2.3 2.4 4.1
------------------------------ --------------------- --------------------- ---------------------
Immediate and ultimate parent company
In the opinion of the Directors, the immediate and ultimate
parent is Financière Pinault S.C.A., a Société en commandite par
actions incorporated in France. The group financial statements of
Financière Pinault S.C.A. may be obtained from the Tribunal de
Commerce de Paris, 1 Quai de Corse, 75004 Paris, France.
13 Contingent liabilities
Certain of the Group's subsidiaries and its associate CX Re are
routinely involved in litigation or potential litigation related to
primarily the settlement of insurance claims liabilities. However,
none of such actual or proposed litigation that had not been
provided for met the definition of a contingent liability.
Consequently, the Group had no insurance related, or other,
contingent liabilities as at 30 June 2013 (30 June 2012 and 31
December 2012: no contingent liabilities).
14 Events after reporting period
There are no events to report.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BLGDCXSBBGXC
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