Ecclesiastl.8fe Regulatory News (ELLA)

23 Mar 2005 15:13

Ecclesiastical Insurance Office PLC23 March 2005 Ecclesiastical Insurance Office plc preliminary announcement of resultsfor the year ended 31 December 2004 --- CONSOLIDATED PROFIT AND LOSS ACCOUNTfor the year ended 31December 2004 2004 2003 (Restated) £000 £000TurnoverGross premiums written - general 343,945 354,187 business --------- --------- - long term 19,185 19,463 business -------- -------- 363130 373,650 Net premiums written - general 226,455 221,357 business --------- --------- - long term 19,006 19,012 business -------- -------- 245,461 240,369 --------- ---------Results --- ---Balance on the general businesstechnical account --- ---before equalisationprovision 32,950 17,563Balance on the long termbusiness technicalaccount (1,391) (3,851)Tax attributable to the shareholders - -long term business profits -------------- -------------- 31,559 13,712 Investment income 19,898 20,157Unrealised profit oninvestments 12,879 21,011Investment expenses andcharges (1,428) (1,543)Other operations (407) -Other charges includingexceptional charge (418) (4,573) ------- --------- Operating profit 64,988 53,534Change in equalisationprovision (2,905) (4,770) --------- --------- Profit on ordinaryactivities before tax 62,083 48,764Tax charge on profit onordinary activities (19,660) (13,811) ---------- ----------Profit attributable toshareholders 42,423 34,953Dividends (4,327) (4,393)Charitable grants net oftax relief (3,503) (2,975) --------- ---------Retained profit for thefinancial year 34,593 27,585 -------- ======== DividendsOrdinary• paid 0.292p per share(2003: 1.460p per share) 410 4102.8 per cent First CumulativePreference• paid (in the period) - 710 per cent Redeemable Second CumulativePreference• paid (in the period) 300 300• declared for the halfyear to 30 June 2005 150 1509.5 per cent Redeemable ThirdNon-Cumulative Preference• paid (in the period) 760 1,5208.625 per cent Non-CumulativeIrredeemable Preference• paid (in the period) 2,857 2,156• declared for the halfyear to 30 June 2005 1,779 1,078 On 29 June 2004 all of the issued and unissued ordinary shares of 50p inthe capital of the company were sub-divided into five ordinary shares of10p each. On 23 July 2004, each of the First Preference shares and Third Preferenceshares were redesignated as 8.625% Non-Cumulative Irredeemable Preferenceshares of £1.00 each. In respect of the period from 1 July 2004 until 31December 2004, holders of the redesignated First Preference shares andThird Preference share were eligible only for the dividend on theNon-Cumulative Irredeemable Preference shares paid on 31 December 2004. CONSOLIDATED BALANCE SHEETat 31 December 2004 2004 2003 Restated £000 £000AssetsIntangible assets:goodwill 1,671 2,089Land and buildings 25,141 19,271Shares in groupundertakings 250 250Other financialinvestments 597,978 600,178Assets held to coverlinked liabilities 46,915 40,903Reinsurers' share oftechnical provisions 153,023 137,758Other assets 272,786 211,334 --------- ---------Total assets 1,097,764 1,011,783 =========== =========== LiabilitiesCapital and reserves 194,210 159,740Fund for futureappropriations 14,510 10,238Technical provisions 758,457 725,410Technical provision forlinked liabilities 46,915 40,903Other liabilities 83,672 75,492 -------- --------Total liabilities 1,097,764 1,011,783 =========== =========== CONSOLIDATED CASH FLOW STATEMENTfor the year ended 31December 2004 2004 2003(excluding long termbusiness) £000 £000 Net cash inflow fromoperating activities 85,382 68,041Servicing of finance (4,022) (4,086)Taxation paid (9,801) (5,111)Capital expenditure (2,030) (1,705)Acquisitions anddisposals - 137Equity dividends paid (410) (410)Charitable grants paid (4,355) (4,000)Financing (675) (426) ------- ------- 64,089 52,440 ======== ========Cash flows were invested as follows:Decrease/increase in cashholdings 50,424 (11,850)Net portfolio investmentPurchases of shares andother variable yieldsecurities 6,112 31,597Purchases of fixed incomesecurities 150,630 282,969Purchases of properties 1,850 18Sales of shares and othervariable yield securities (3,666) (24,416)Sales of fixed incomesecurities (141,261) (224,696)Sales of properties - (1,182) ------------ ---------Net investment of cashflows 64,089 52,440 ======== ======== Ecclesiastical Insurance Office plc announces its results for the yearended 31 December 2004 The positive trend in the profitability of our general insurance businessadvanced strongly in 2004. The balance on the technical account improvedsignificantly to £35.9 million, before equalisation charges, from arestated £22.3 million in 2003. Growth in total premium income was heldback mainly by the effect of realigning our business portfolio in Canada.Gross written premiums fell by 3% but net written premiums rose by 2%. Theincreased premium rates applied in previous periods were generallymaintained in 2004 with further increases being obtained where necessary.Following implementation of the new ABI Statement of Recommended Practice,the results of London market and reinsurance business accepted are nowaccounted for on the annual basis instead of the fund basis usedpreviously. The 2003 comparatives have been restated accordingly. The negative balance on the technical account for long term business is animprovement on the prior year result which was affected by adjustmentsarising on the formation of Ecclesiastical Life Limited. The emergence ofprofits from the in-force book of business in 2004 was more than offset byincreases in reserves to meet the cost of improving mortality on annuitybusiness and other provisions. New business growth achieved byEcclesiastical Life Limited and its subsidiaries was 29% on the industrystandard measure (Annual Premium Equivalent). Unrealised profits on investments were £12.9m following the gain of £21.0m(restated) in 2003. Our fund management operation continued to berecognised for its long term performance with the Higher Income Fund beingawarded first place in the Standard & Poor's Awards 2005 in the UK Equityand Bond Income sector over five years. After tax, dividends and a further increase in the grant to AllchurchesTrust, retained profit for the year was £34.6m compared with £27.6m(restated) in 2003. Shareholders' funds rose significantly to £194.2m from£159.7m (restated), their highest ever level. The general business solvency ratio (based on net assets as a percentageof general business net premiums written) improved to 86% from 72%(restated). On 15th March 2005, Standard & Poor's Ratings Services revisedits outlook for the Company to positive from stable and affirmed theCompany's BBB+ long-term counterparty credit and insurer financialstrength ratings. The Directors remain positive about the financial and trading prospectsfor the current financial year. This announcement is prepared on the basis of the accounting policies asstated in the previous year's financial statements. The financial information set out above does not constitute the Company'sstatutory accounts for the year ended 31 December 2004 or 2003, but isderived from those accounts. Statutory accounts for 2003 have beendelivered to the Registrar of Companies and those for 2004 will bedelivered shortly. The auditors have reported on those accounts; theirreports were unqualified and did not contain statements under s.237(2) or(3) of Companies Act 1985. This announcement was approved at a meeting of the board of directors heldon 23 March 2005. Ecclesiastical Insurance Office plc is a subsidiary of EcclesiasticalInsurance Group plc which is an investment holding company whose ordinaryshares are not listed. The ordinary shares are not listed. Copies of the Audited Accounts areavailable from the Secretary. This information is provided by RNS The company news service from the London Stock Exchange