Last checked at 8 Aug 2019 10:00
INFORMATION FOR GENERAL ACCIDENT PLC PREFERENCE SHAREHOLDERS
GENERAL ACCIDENT PLC
Unaudited results for the six months ended 30 June 2019
These results are published for the benefit of preference shareholders of General Accident plc ("the Company") for the six months ended 30 June 2019. The preference shares have remained listed on the London Stock Exchange following the merger of the Company with Commercial Union plc, in June 1998 to form CGU plc ("CGU"), and the subsequent merger of CGU with Norwich Union plc in May 2000 to form Aviva plc (formerly CGNU plc).
The Company transferred its interest in its subsidiaries to its parent company, Aviva plc ("Aviva") in 2005, in return for an inter-company loan with Aviva. The income of the Company for the six months to 30 June 2019 consists of interest received on this loan. The principal risks and uncertainties facing the Company for the remainder of the year are (1) credit risk, as the net asset value of the Company's financial resources is exposed to the potential default on the loans and short term receivables due from its parent, Aviva, and (2) interest rate risk, as the net asset value of the Company's financial resources is exposed to potential fluctuations in interest rates impacting investment income. Exposure to both credit and interest rate risk is managed through the monitoring of several risk measures.
The Company is part of the Aviva group ("Group") and Aviva owns 100% of the Company's ordinary issued share capital.
Summarised income statement | Unaudited | Unaudited | |
| results | results | |
| 6 months to | 6 months to | |
| 30 June | 30 June | |
Statutory results | 2019 | 2018 | |
| £m | £m | |
|
|
| |
Investment income
Preference share goodwill payment
| 82
- | 69
(8) | |
|
| ||
Total income | 82 | 61 | |
|
|
| |
Profit on ordinary activities before tax | 82 | 61 | |
Tax on profit on ordinary activities* | - | - | |
Profit for the period | 82 | 61 | |
Basic earnings per share (pence) | 0.4 | 0.3 |
* Tax on investment income is £nil due to losses surrendered by another Aviva group company free of charge to cover any tax liabilities arising on the Company's profits.
Summarised statement of financial position |
Unaudited |
| |
30 June | 31 December | ||
2019 | 2018 | ||
£m | £m | ||
|
|
| |
Total assets | 14,005 | 13,934 | |
|
|
| |
Equity attributable to ordinary shareholders | 13,755 | 13,684 | |
Preference share capital | 250 | 250 | |
|
|
| |
Total equity | 14,005 | 13,934 | |
|
|
| |
Liabilities | - | - | |
Total equity and liabilities | 14,005 | 13,934 | |
| |||
| |||
Statement of changes in equity | Unaudited | Unaudited | |
results | results | ||
6 months to | 6 months to | ||
30 June | 30 June | ||
2019 | 2018 | ||
£m | £m | ||
| |||
Total equity at 1 January | 13,934 | 13,941 | |
|
|
| |
Profit for the period | 82 | 61 | |
Total comprehensive income for the period |
82 |
61 | |
|
|
| |
Dividends | (11) | (11) | |
|
|
| |
Total equity at 30 June | 14,005 | 13,991 | |
|
Summarised statement of cash flows as at 30 June 2019 | Unaudited | Unaudited |
results | results | |
6 months to | 6 months to | |
30 June | 30 June | |
2019 | 2018 | |
£m | £m | |
| ||
Cash flows from financing activities | - | - |
Net cash from financing activities | - | - |
Total net increase/(decrease) in cash and cash equivalents | - | - |
Cash and cash equivalents at 1 January | - | - |
Cash and cash equivalents at 30 June1 | - | - |
|
|
|
1 The closing balance as at 30 June 2019 is £199 (2018: £nil). The majority of the Company's cash requirements are met by fellow Group companies.
Basis of preparation
The results for the six months to 30 June 2019 have been prepared on the basis of the accounting policies set out in the Company's 2018 Annual Report and Accounts. The interim accounts do not constitute statutory accounts as defined by section 434 of the Companies Act 2006. The auditor has reported on the 2018 accounts and the report was unqualified and did not contain a statement under section 498(2) or (3) of the Companies Act 2006. The Company's 2018 Report and Accounts have been filed with the Registrar of Companies.
During the period, there have been no changes in the nature of related party transactions from those described in the Company's 2018 accounts.
The results for the six months are unaudited.
The unaudited results of Aviva for the six months ended 30 June 2019 are available on application to the Group Company Secretary, Aviva plc, St. Helen's, 1 Undershaft, London EC3P 3DQ. A copy can also be found on the Aviva plc website at www.aviva.com.
Responsibility statement
The directors confirm that these condensed interim financial statements have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union and as issued by the IASB and that the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:
(a) An indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
(b) Material related party transactions in the first six months and any material changes in the related party transactions described in the last annual report.
K A Cooper S Mohammed J Windsor
Director Director Director
Enquiries: Chris Esson, Investor Relations Director, Aviva plc 020 7662 8115