Gen.acc.8se.pf Regulatory News (GACA)

11 Aug 2005 10:00

General Accident PLC11 August 2005 INFORMATION FOR GENERAL ACCIDENT PREFERENCE SHAREHOLDERS GENERAL ACCIDENT PLC AND SUBSIDIARY COMPANIESUnaudited results for the six months ended 30 June 2005 These results are published for the benefit of preference shareholders of General Accident plc. The preference shares have remained listed 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). Our results for the first half of 2005 are excellent. They build on the strong performance in 2004 and show a significant improvement compared with the same period last year. Operating profit before tax on an IFRS basis of £1,016 million (2004: £733 million) reflects our focus on profitability in our long-term savings business, the resilience and sustainability of our general insurance performance, and the benefits of our actions to reduce our cost base. Our fund management business benefited from worldwide markets that have steadily improved and our continuing focus on cost control. Our diverse business mix, geographical spread, distribution capability and strong brand portfolio give us a strong andstable base from which to grow our business. RestatedSummarised consolidated income statement Unaudited Unaudited results results 6 months to 6 months to 30 June 30 June 2005 2004 £m £m ------------ ------------Statutory results Premiums written net of reinsurance and fee & commission income 13,074 11,976 Operating profit before tax 1,016 733--------------------------------------------------------------------------------------------------------------------- Profit before tax 1,248 635Tax Expense UK tax (208) (123) Overseas tax (141) (99) ------------------------------Total (349) (222)--------------------------------------------------------------------------------------------------------------------- Profit for the period 899 413--------------------------------------------------------------------------------------------------------------------- Attributable to:Equity shareholders of GA plc 849 389Minority Interests 50 24--------------------------------------------------------------------------------------------------------------------- Summarised consolidated balance sheet Restated* Unaudited Unaudited results results 30 June 30 June 2005 2004 £m £m ----------- ----------- Total assets 246,511 214,722--------------------------------------------------------------------------------------------------------------------- Equity attributable to shareholders of GA plc 11,948 8,692 Minority interests 738 517 Technical provisions and other liabilities 233,825 205,513 ---------------------------------------------------------------------------------------------------------------------Total liabilities and equity 246,511 214,722--------------------------------------------------------------------------------------------------------------------- * Restated for the effect of changes in accounting policies to transition GA plc onto an IFRS basis. The total impact of the above restatement is to reduce shareholders' funds by £679 million at 30 June 2004. Summarised consolidated statement of changes in equity Unaudited 6 months to 30 June 2005 £m---------------------------------------------------------------------------------------------------------------------Total equity at 1 January 2005 on an IFRS basis 12,062 Profit for the period 899Fair value gains, net of transfers to the profit and loss account 19Actuarial gains and losses on pension schemes (84)Foreign exchange rate movements (272)Aggregate tax effect - shareholder tax 18 ----------------Total recognised income and expense for the period 580Dividends and appropriations (11)Other 55---------------------------------------------------------------------------------------------------------------------Total equity at 30 June 2005 12,686Minority interest (738)---------------------------------------------------------------------------------------------------------------------Equity attributable to shareholders 11,948--------------------------------------------------------------------------------------------------------------------- RestatedSummarised consolidated cash flow statement Unaudited Unaudited 6 months to 6 months to 30 June 30 June 2005 2004 £m £m ------------ ------------Net cash from operating activities 4,764 4,731 Net cash used in other activities (159) (57) Net cash used in investing activities (2,243) (4,473) ---------------------------------------------------------------------------------------------------------------------Net increase in cash and cash equivalents 2,362 201--------------------------------------------------------------------------------------------------------------------- Basis of preparation From 2005, all European Union listed groups are required to prepare consolidated financial statements using standards issued by the International Accounting Standards Board (IASB). The listing rules in the UK require that the 2005interim results must also be presented on a basis consistent with International Financial Reporting Standards (IFRS). Accordingly, the results of the GA plc group ("the Group") for the six months to 30 June 2005 have been prepared usingthe Group's accounting policies under IFRS. These correspond to the Aviva plc accounting policies published in the Aviva plc market release on 5 July 2005, "Impact of International Financial Reporting Standards on the results for 31December 2004". This is the Group's first set of financial results prepared in accordance with IFRS accounting policies and its previously reported 2004 comparatives have been restated to comply with IFRS, with the date of transition to IFRS being 1 January 2004. The impact of IFRS reduces the 30 June 2004 statutory operating profit before tax by 21 % to £733 million, increases statutory profit before tax by 8 % to £635 million and reduces statutoryshareholders' funds by 7 % to £8,692 million. The Group's accounting policies are in accordance with IFRS issued by the IASB. The European Union has endorsed all relevant IFRS with the exception of the Amendment to IAS19 Employee Benefits (2004) and the amendments to IAS39, TheFair Value Option published by the IASB in June 2005. Both these amendments are expected to be endorsed by the European Commission during 2005 and although they are not mandatory until 2006, the Group has decided to adopt them early and reflect their impact within this interim announcement. The Group's full year financial statements at 31 December 2005 will be prepared in accordance with these endorsed IFRS and this announcement reflects the accounting policies expected to apply at the year end. IFRS remains subject to possible amendment by interpretative guidance from the IASB or other external bodies and are therefore subject to change prior to publication of the Group's full year financial statements for the year ended 31 December 2005 in 2006. The unaudited results of Aviva plc for the six months ended 30 June 2005 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 Enquiries: Charles Barrows, Investor Relations Director, Aviva plc 020 7662 8115 Registered in EnglandNumber 2468686 This information is provided by RNS The company news service from the London Stock Exchange