Interim Results

Personal Group Holdings PLC
29 September 2003


29 September 2003


Enquiries:


Christopher Johnston, Chairman & Chief Executive
John Barber, Finance Director
Personal Group Holdings Plc
Tel: [phone] ext. 235


Chris Steele/Trevor Phillips
Holborn
Tel: [phone]


Grant Harrison/Jonathan Retter
Durlacher Limited
Tel: [phone]



                       Personal Group Holdings Plc


Interim Statement for the six months to 30 June 2003

The directors of Personal Group Holdings Plc, employee benefit insurers and
consultants, are pleased to announce the Group's interim results as follows:


HIGHLIGHTS
                                                                       2003       2002

                                                                        £m         £m          %
Underwriting income*                                                   6.31       5.97        Up 6
Pre-tax profit                                                         2.92       2.65       Up 10
Earnings per share                                                     6.6p       5.9p       Up 12
First interim dividend per share                                       2.0p       1.8p       Up 11


   *  comprising premiums earned net of non-financial reinsurance by Personal
      Assurance Plc

  • Major employee programmes launched for Northern Foods, Vinci, Westminster
    Health Care, Priory Clinics, Honeywell, New Wave Logistics, Solway Foods,
    Maintrain and Bournemouth Airport.
  • During the second half of 2003 further employee programmes are being
    launched for LivingWell, bonmarche, Eaton, De Vere, FedEx, Tibbett & Britten
    and Starbucks.


Our strategy is based on:


•         personal contact
•         affordable benefits that are easy to own
•         consistency of price and service


This has produced another record first half year's results.


CHAIRMAN'S STATEMENT


I am pleased to report that the Group has produced another profitable period.
During the first half of 2003 our profit before tax increased by 10 per cent, to
£2,922,000.  Earnings per share were up 12 per cent, to 6.6p.


In view of this continuing successful period of trading, the directors have
declared a first interim dividend of 2p (2002: 1.8p) per share, an increase of
11 per cent, payable on 29 October 2003 to shareholders on the register at the
close of business on 8 October 2003.  After provision for taxation and
dividends, there is a surplus for the period of £1,384,000 (2002: £1,238,000)
which has been added to reserves.  Shareholders' funds now stand at a total of
£15,342,000 (50p per share) and include net cash balances of £6,817,000 in
addition to £4,259,000 of Treasury loan stock.


In the first half of the year major employee benefit programmes were launched
for Northern Foods, Vinci, Westminster Health Care, Priory Clinics, Honeywell,
New Wave Logistics, Solway Foods, Maintrain and Bournemouth Airport. During the
second half of 2003 further employee programmes are being launched for
LivingWell, bonmarche, Eaton, De Vere, FedEx, Tibbett & Britten and Starbucks.


Personal Assurance Plc continues to steadily build its reputation. 2003 is the
18th consecutive year without any premium price increase for existing
policyholders. We may be unique among health insurance companies in not having
levied price increases on our customers' policies over so many years, when
general price inflation has been more than 80 per cent.  Our premium growth has
come exclusively from new customers joining our hospital plans and existing
members increasing their coverage.


The balance sheet is strong, and the business continues to record good organic
growth in its core operations. Current trading is in line with directors'
expectations.


Our continuing success is wholly due to the enthusiasm, commitment and
professionalism of the Personal team. My thanks to everyone involved.




Christopher W T Johnston, Chairman
26 September 2003





PERSONAL GROUP HOLDINGS PLC

Consolidated profit and loss account
for the 6 months ended 30 June 2003


                                        6 months ended               6 months ended           12 months ended
                                          30 June 2003                 30 June 2002          31 December 2002
                                             Unaudited                    Unaudited                   Audited
                                        £000      £000                £000     £000              £000    £000
TECHNICAL ACCOUNT -
GENERAL BUSINESS

Gross premiums written                           6,363                        6,012                    12,195

Change in the gross provision
for unearned premiums                             (48)                         (39)                        19

Earned premiums, net of                          6,315                        5,973                    12,214
reinsurance

Claims paid
Gross amount                         (1,290)                       (1,290)                    (2,566)
Reinsurers' share                       -                            -                           -

Net of reinsurance                   (1,290)                       (1,290)                    (2,566)

Change in the provision
for claims
Gross amount                            (98)                             4                       (41)
Reinsurers' share                       -                            -                           -

Net of reinsurance                      (98)                             4                       (41)

Claims incurred, net of                        (1,388)                      (1,286)                   (2,607)
reinsurance

Net operating expenses:

Financial reinsurance costs                -                         (129)                      (129)
Other                                (2,770)                       (2,644)                    (5,094)

                                               (2,770)                      (2,773)                   (5,223)
Balance on the technical                         
account for general business                     2,157                        1,914                     4,384






PERSONAL GROUP HOLDINGS PLC

Consolidated profit and loss account (continued)
for the 6 months ended 30 June 2003

                                             6 months ended              6 months ended        12 months ended
                                               30 June 2003                30 June 2002       31 December 2002
                                                  Unaudited                   Unaudited                Audited
                                    Note    £000       £000              £000      £000          £000     £000
NON-TECHNICAL

ACCOUNT

Balance on the general business
technical account                                     2,157                       1,914                  4,384

Investment income                            250                          259                     433
Unrealised gains/(losses) on                   9                         (63)                    (87)
investments
Investment expenses                            -                         (34)                    (60)
and charges

Net investment return                                   259                         162                    286

Other income                                          1,661                       1,727                  3,434


Other charges                                       (1,123)                     (1,125)                (2,425)


Charitable donations                                   (32)                        (30)                   (65)

Profit on ordinary activities
before tax                                            2,922                       2,648                  5,614

Tax on profit on ordinary
activities                           1                (940)                       (870)                (1,636)
Profit for the period                                 1,982                       1,778                  3,978

Dividends                            2                (598)                       (540)                (2,404)

Profit retained                                       1,384                       1,238                  1,574
                                                      

Earnings per share
Basic & diluted                      3                 6.6p                        5.9p                  13.2p


There are no recognised gains or losses for the period other than the profit for
the financial period.






PERSONAL GROUP HOLDINGS PLC

Consolidated balance sheet at 30 June 2003
                                                At 30 June 2003        At 30 June 2002       At 31 December 2002
                                                      Unaudited              Unaudited                    Audited
                                                 £000      £000           £000    £000            £000       £000
Assets

Investments

Other financial investments                               4,721                  4,819                      4,711
                                                                                 

Debtors

Debtors arising out of direct insurance
operations                                      1,138                    1,172                   1,140
                                                                         
Other debtors due within one year                 539                      741                     728

                                                          1,677                  1,913                      1,868

Other assets

Tangible assets                                 6,149                    6,006                   6,004
Cash at bank and in hand                        6,817                    5,066                   6,458
Investment in own shares                          447                      402                     402

                                                         13,413                 11,474                     12,864
                                                                                

Prepayments and
accrued income

Accrued interest and rent                          20                       31                      42
Deferred acquisition costs                         38                       46                      38
Other prepayments and accrued income              111                       46                      72

                                                            169                    123                        152

Total assets                                             19,980                 18,329                     19,595






PERSONAL GROUP HOLDINGS PLC

Consolidated balance sheet at 30 June 2003 (continued)

                                         At 30 June 2003            At 30 June 2002       At 31 December 2002
                                               Unaudited                  Unaudited                   Audited
                                          £000      £000             £000      £000           £000       £000
Liabilities

Capital and reserves

Called up share capital                  1,528                      1,528                    1,528
Profit and loss account                 13,814                     12,029                   12,430

Equity shareholders' funds                        15,342                     13,557                    13,958

Technical provisions

Provision for unearned premiums            334                        344                      286 
Claims outstanding                         965                        816                      865

                                                   1,299                      1,160                     1,151

Provison for other risks and charges                 202                        238                       180

Creditors

Arising out of reinsurance operations        -                        100                        -
Current taxation                           880                        988                      901
Other creditors including other
taxation and social security               433                        500                      514
Bank loan                                  340                        338                      307
Proposed dividend                          600                        540                    1,861

                                                   2,253                      2,466                     3,583

Accruals and deferred income                         884                        908                       723

Total liabilities                                 19,980                     18,329                    19,595






PERSONAL GROUP HOLDINGS PLC

Consolidated cash flow statement
for the 6 months ended 30 June 2003

                                                 6 months ended         6 months ended        12 months ended
                                                   30 June 2003           30 June 2002       31 December 2002
                                                      Unaudited              Unaudited                Audited
                                                  £000     £000          £000     £000        £000       £000


Net cash inflow from operating activities                 3,575                  2,859                  5,931

Loan interest paid                                          (8)                    (9)                   (18)

Taxation paid                                             (939)                  (581)                (1,492)

Capital expenditure

Purchase of fixed assets                         (406)                  (139)                (348)
Sale of fixed assets                                29                     64                  86
Purchase of own shares                            (94)                      -                    -
Sale of own shares                                  28                      -                    -

                                                          (443)                   (75)                  (262)

Equity dividends paid                                   (1,859)                (1,606)                (2,149)

Financing

Addition to bank loan                               94                      -                    -
Repayment of bank loan                            (61)                   (46)                 (77)

                                                             33                   (46)                   (77)

Net cash flows                                              359                    542                  1,933

Cash flows were invested as follows:

Increase in cash holdings                                   359                    554                  1,946

Net portfolio investment
Ordinary shares, loans,
finance leases, treasury loan stock                           -                   (12)                   (13)

Net investment of cash flows                                359                    542                  1,933






PERSONAL GROUP HOLDINGS PLC


Notes



1.       Taxation comprises United Kingdom corporation tax of £918,000 (30 June
2002: £692,000, 31 December 2002: £1,516,000), and deferred taxation charge of
£22,000 (30 June 2002: £178,000, 31 December 2002: £120,000).

2.       The directors have declared a dividend of 2.0p (30 June 2002: 1.80p, 31
December 2002) per share payable on 29 October 2003 to shareholders on the
register at the close of business on 8 October 2003.  Shares will be marked
ex-dividend on 6 October 2003.

3.       The calculations of basic and diluted earnings per share are based on
the following:


                                                 30 June 2003        30 June 2002         31 December 2002

Earnings - basic and diluted                       £1,982,000          £1,778,000               £3,978,000

Weighted average number of shares

Basic                                              29,969,819          30,014,943               30,014,943

Diluted                                            30,162,413          30,129,691               30,143,974


The interim results, which have not been audited, have been prepared on the same
basis and using the same accounting policies as those used in the preparation of
the full years accounts to 31 December 2002 and the interim accounts for the 6
months ended 30 June 2002.


The interim statement, which was approved by the Board on 26 September 2003, is
not the Company's statutory accounts.  The statutory accounts for each of the
two years to 31 December 2001 and 31 December 2002 received audit reports, which
were unqualified and did not contain statements under section 237 (2) or (3) of
the Companies Act 1985.  The 2001 and 2002 accounts have been filed with the
Registrar of Companies.






Financial calendar for the year ending 31 December 2003



The Company announces the following dates in its financial calendar for the year
ending 31st December 2003:

•  Payment of 1st interim dividend                             - 29 October 2003
•  Preliminary results for the year ending 31st December 2003  - March 2004
•  Publication of Report and Accounts for 2003                 - March 2004
•  Payment of 2nd interim dividend                             - March 2004
•  AGM                                                         - April 2004
•  Payment of final dividend                                   - May 2004


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