From continuing operations
Basic: Ordinary Shares ($ per
share) 0.1460 0.0681 0.0761
------------------------------------ ------------ ------------
Diluted: Ordinary Shares ($ per
share) 0.1365 0.0645 0.0719
------------------------------------ ------------ ------------ ------------
From discontinued operations
Basic: Ordinary Shares ($ per
share) (0.0475) (0.0558) (0.0602)
------------------------------------ ------------ ------------
Diluted: Ordinary Shares ($ per
share) (0.0444) (0.0528) (0.0568)
------------------------------------ ------------ ------------ ------------
9 Dividends
The Group does not propose the payment of a dividend to the shareholders in relation to the interim period (Jun 2010: nil). A dividend of 2 cents per share (1.23 pence) was paid on 1 June 2011 as an interim dividend for the year-ended 31 December 2010, with a final dividend for the same amount to be paid on 2 December 2011.
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 2011 30 Jun 2010 31 Dec 2010
$m $m $m
------------------------ ------------ ------------ ------------
Facilitation fee 20.6 20.6 19.9
Deferred consideration 41.3 46.8 46.6
Deferred assets 61.9 67.4 66.5
------------------------ ------------ ------------ ------------
11 Cash generated by/(used in) operating activities
6 months 6 months 12 months
30 Jun 2011 30 Jun 2010 31 Dec 2010
$m $m $m
--------------------------------- ------------- ------------- -------------
Operating profit for the period 19.4 10.6 13.5
Adjustments for:
- negative goodwill (1.5) - (4.9)
- income tax expense (0.2) - -
- investment return for the year
transferred to investing
activities (2.6) (3.4) (6.4)
- realised (gains)/losses on
investments (0.8) (0.1) 0.2
- unrealised losses/(gains) on
investments 0.8 (3.0) (1.5)
- depreciation 0.3 0.2 0.7
- share based payment expense 0.3 0.4 0.7
- amortisation of risk premium (1.3) (1.9) (3.8)
- amortisation of intangible
asset (0.4) (0.3) (0.7)
- adjustment to amortised cost (0.4) 4.1 6.7
- other gains and losses 0.4 (2.3) (2.6)
--------------------------------- ------------- ------------- -------------
14.0 4.3 1.9
Change in operating assets and
liabilities
Net decrease/(increase) in
insurance receivables and
liabilities 36.2 (0.6) (13.8)
Net decrease in loans and
receivables (3.9) (8.8) (8.5)
Net (decrease)/increase in other
operating liabilities (7.2) (7.5) 5.2
Cash generated by/(used in)
operations 39.1 (12.6) (15.2)
Finance costs (2.0) (2.0) (2.6)
--------------------------------- ------------- -------------
Net cash generated by/(used in)
operations 37.1 (14.6) (17.8)
--------------------------------- ------------- ------------- -------------
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 2011 30 Jun 2010 31 Dec 2010
$m $m $m
------------------------------------ ------------ ------------ ------------
From associate CX Re for a
management fee 1.3 1.3 2.5
From associate CX Re for expenses
recharged 2.8 4.1 7.4
4.1 5.4 9.9
------------------------------------ ------------ ------------ ------------
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 2011 30 Jun 2010 31 Dec 2010
$m $m $m
------------------------------- -------------- -------------- -------------
Amounts due from associate CX - 2.7 -
Re
------------------------------- -------------- -------------- -------------
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 2011 30 Jun 2010 31 Dec 2010
$m $m $m
------------------------------ ------------ ------------ ------------
Short-term employee benefits 2.9 3.6 5.0
Post-employment benefits 0.2 0.3 0.7
Share based payments 0.2 0.4 0.8
------------------------------ ------------ ------------
Management remuneration 3.3 4.3 6.5
------------------------------ ------------ ------------ ------------
Immediate and ultimate parent company
In the opinion of the Directors, the immediate and ultimate parent is Financiere Pinault S.C.A., a Societe en commandite par actions incorporated in France. The group financial statements of Financiere 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 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 2011 (30 Jun 2010 and 31 Dec 2010: no contingent liabilities).
14 Events after reporting period
Since the half year Tawa has announced two deals which will move it further along its goal of diversifying the Group's activities. On 8 September 2011, Tawa announced it had entered into a share purchase agreement which will lead to the acquisition of the Chiltington Group of companies, subject to regulatory approval.
On 16 September 2011, as a member of a consortium comprising Tawa Plc, Skuld, and Paraline Group Limited announced a definitive agreement to acquire Whittington Insurance Markets Limited, subject to regulatory approval.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SEAFMEFFSELU
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