Interim Results 2000 - Part 4
CGNU PLC
2 August 2000
CGNU plc Interim Announcement 2000
Part 4
-----------------------------------------------------------------------------
Page 29
Statistical Supplement
Segmental analysis of group operating profit at constant currency
6
months
to
6 30 June 6
months 1999 months
to at 2000 to
30 June exchange 30 June
2000 rates 1999
£m £m £m
Life achieved operating profit
United Kingdom 462 380 380
France 124 66 71
Ireland 33 25 25
Netherlands 76 62 68
Poland life and pensions 45 27 28
Spain 7 1 1
Other Europe (8) 19 20
International 15 29 28
------ ------ ------
754 609 621
====== ====== ======
Health
United Kingdom 2 - -
France 6 6 6
Netherlands 13 5 5
------ ------ ------
21 11 11
====== ====== ======
Fund management
United Kingdom 6 14 14
France 5 2 2
Netherlands 1 2 2
Other Europe 1 1 1
Australia and New Zealand 7 7 7
United States 2 - -
------ ------ ------
22 26 26
====== ====== ======
General Insurance (excluding United States
business)
United Kingdom 202 132 132
France (120) 18 20
Ireland 11 2 3
Netherlands 10 13 16
Other Europe 1 6 5
Australia and New Zealand 33 17 18
Canada 44 40 38
Other 31 36 36
------ ------ ------
212 264 268
====== ====== ======
Non-insurance operations (21) (11) (11)
Associated undertakings 2 7 8
Corporate costs (97) (64) (65)
Unallocated interest charges
- external (65) (41) (41)
- intra-group (102) (66) (66)
------ ------ ------
726 735 751
Wealth management (41) - -
------ ------ ------
Group operating profit before tax*
(excluding US general business) 685 735 751
United States general insurance business 115 103 102
------ ------ ------
Group operating profit before tax* 800 838 853
====== ====== ======
* Group operating profit before tax, change in the risk margin
amortisation of goodwill and exceptional items.
Restating modified statutory life profits for the six months to 30 June 1999
to account for the impact of exchange rate movements in the six months to
30 June 2000 would result in modified statutory life profits being restated
from £564 million to £553 million.
------------------------------------------------------------------------------
Page 30
Supplementary analyses
(a) Non-insurance operations - operating profit
6 6
months months
to to Full
30 June 30 June year
2000 1999 1999
£m £m £m
United Kingdom
Hill House Hammond 7 8 13
Norwich Union Direct Financial Services (5) (5) (12)
Norwich Union Equity Release and other
personal finance subsidiaries (6) (14) (23)
Your Move (27) (5) (13)
Other (1) - (1)
Europe (excluding UK) 11 5 6
------ ------ ------
Total (21) (11) (30)
====== ====== ======
(b) Wealth management - operating result
6 6
months months
to to Full
30 June 30 June year
2000 1999 1999
£m £m £m
United Kingdom
Asserta home (10) - -
Other wealth management (31) - -
------ ------ ------
Total (41) - -
====== ====== ======
(c) General business information - adverse weather/catastrophe claims costs
6 6
months months
to to Full
30 June 30 June year
2000 1999 1999
£m £m £m
United Kingdom 114 101 217
Europe (excluding UK)
France 90 - 38
Ireland - - -
Netherlands - - -
Other - - 4
International
Australia and New Zealand 3 19 24
Canada 4 5 9
United States 39 52 83
Other 16 6 45
------ ------ ------
Total 266 183 420
====== ====== ======
------------------------------------------------------------------------------
Page 31
Supplementary analyses (continued)
(d) General business - investment return information
Longer-term Actual
investment return investment return
6 6 6 6
months months months months
to to to to
30 30 Full 30 30 Full
June June year June June year
2000 1999 1999 2000 1999 1999
£m £m £m £m £m £m
United Kingdom 359 309 643 279 271 545
Europe (excluding UK)
France 47 41 72 31 24 43
Ireland 24 9 20 21 9 17
Netherlands 31 27 39 13 16 22
Other 35 42 74 34 32 58
International
Australia and New Zealand 45 37 72 37 32 69
Canada 62 56 118 53 52 104
United States 211 191 380 147 149 291
Other 47 43 83 34 36 72
------ ------ ------ ------ ------ ------
Total longer-term
investment return 861 755 1,501
====== ====== ======
Total actual investment income 649 621 1,221
Realised gains 307 329 591
Unrealised gains/(losses) 43 (384) (75)
------ ------ ------
Total actual investment return 999 566 1,737
====== ====== ======
------------------------------------------------------------------------------
Page 32
General insurance - geographical ratio analysis
Expense ratio Combined
(excluding operating
Claims ratio commission) ratio
6 6 6 6 6 6
months months months months months months
to to to to to to
30 June 30 June 30 June 30 June 30 June 30 June
2000 1999 2000 1999 2000 1999
% % % % % %
United Kingdom 76.1% 76.8% 10.6% 11.6% 106% 107%
France 121.5% 71.8% 13.5% 14.0% 154% 104%
Ireland 85.0% 86.7% 10.5% 10.9% 107% 108%
Netherlands 77.4% 69.8% 11.8% 11.5% 109% 105%
Australia and New
Zealand 74.0% 77.9% 17.6% 16.5% 105% 107%
Canada 74.0% 72.5% 12.2% 13.3% 104% 104%
United States
(statutory basis) 76.0% 75.5% 13.1% 13.7% 105% 106%
Total Group 78.6% 75.7% 12.5% 12.9% 109% 106%
Ratios are measured in local currency.
The total Group ratios are based on average exchange rates applying to the
respective periods.
If the 2000 average exchange rates had been used to calculate the 1999 ratios,
the Group claims ratio, Group expense ratio and Group combined operating ratio
would have been 75.7%, 13.1% and 107% respectively.
Definitions:
Claims ratio - Incurred claims expressed as a percentage of net
earned premiums.
Expense ratio - Written expenses excluding commissions expressed as
a percentage of net written premiums.
Commission ratio - Written commissions expressed as a percentage of
net written premiums.
Combined ratio - Aggregate of claims ratio, expense ratio and
commission ratio.
------------------------------------------------------------------------------
Page33
General insurance - class of business analysis
(a) United Kingdom
Combined
Net written Underwriting operating
premiums result ratio
6 6 6 6 6 6
months months months months months months
to to to to to to
30 June 30 June 30 June 30 June 30 June 30 June
2000 1999 2000 1999 2000 1999
£m £m £m £m % %
Personal
Motor 706 626 (37) (63) 107% 112%
Homeowner 618 597 20 14 97% 97%
Creditor 227 157 12 14 97% 108%
Other 54 67 (3) (1) 109% 95%
------ ------ ------ ------ ------ ------
1,605 1,447 (8) (36) 101% 103%
------ ------ ------ ------ ------ ------
Commercial
Motor 365 333 (56) (70) 116% 122%
Property 350 382 (33) (7) 108% 100%
Liability 117 146 (41) (32) 133% 121%
Other 51 56 12 9 75% 84%
------ ------ ------ ------ ------ ------
883 917 (118) (100) 113% 111%
------ ------ ------ ------ ------ ------
London market 162 150 (31) (41) 122% 124%
------ ------ ------ ------ ------ ------
Total 2,650 2,514 (157) (177) 106% 107%
====== ====== ====== ====== ====== ======
Certain reclassifications have taken place since the publication of the
CGU plc and Norwich Union plc 1999 Annual Report and Accounts and the joint
merger announcement issued on 21 February 2000. Details of the
reclassifications are:
(i) Global Risks has been reclassified from the Commercial classes to
London market;
(ii) London & Edinburgh marine business has been reclassified to London
market;
(iii) Small business vehicles have been reclassified as Commercial;
(iv) Part of Commercial Other has been reclassified to Commercial
Property; and
(v) Personal Accident has been reclassified as Personal Other.
The 1999 figures have been restated for the above.
(b) France
Combined
Net written Underwriting operating
premiums result ratio
6 6 6 6 6 6
months months months months months months
to to to to to to
30 June 30 June 30 June 30 June 30 June 30 June
2000 1999 2000 1999 2000 1999
Em Em Em Em % %
Agents/brokers
Motor 201 189 (37) (7) 119% 103%
Property 241 235 (213) (6) 209% 95%
Other 106 109 (13) (3) 115% 102%
Direct 33 35 (11) (16) 134% 148%
------ ------ ------ ------ ------ ------
Total 581 568 (274) (32) 154% 104%
====== ====== ====== ====== ====== ======
The information in the above table has been translated using the rate of
1 euro = 6.56 FFr.
------------------------------------------------------------------------------
Page 34
General insurance - class of business analysis (continued)
(c) Netherlands
Combined
Net written Underwriting operating
premiums result ratio
6 6 6 6 6 6
months months months months months months
to to to to to to
30 June 30 June 30 June 30 June 30 June 30 June
2000 1999 2000 1999 2000 1999
Em Em Em Em % %
Domestic 64 63 (8) 5 114% 88%
Motor 121 97 (12) (23) 110% 125%
Commercial fire 53 38 - 1 96% 96%
Liability 35 31 (9) (5) 137% 115%
Inward reinsurance 4 8 (2) (1) 143% 111%
Other 95 49 (4) 5 103% 86%
------ ------ ------ ------ ------ ------
Total 372 286 (35) (18) 109% 105%
====== ====== ====== ====== ====== ======
The information in the above table has been translated using the rate of
1 euro = 2.20 NLG.
(d) Canada
Net written Underwriting Combined
premiums result operating ratio
6 6 6 6 6 6
months months months months months months
to to to to to to
30 June 30 June 30 June 30 June 30 June 30 June
2000 1999 2000 1999 2000 1999
C$m C$m C$m C$m % %
Automobile 643 566 (20) (7) 103% 101%
Property 311 283 (27) (14) 109% 105%
Liability 80 68 - (25) 100% 134%
Other 14 16 4 3 70% 73%
------ ------ ------ ------ ------ ------
Total 1,048 933 (43) (43) 104% 104%
====== ====== ====== ====== ====== ======
------------------------------------------------------------------------------
Page 35
Assets under management
General Group Group
business 30 31
Long-term and June December
business other 2000 1999
£m £m £m £m
Financial investments
Shares, other variable yield
securities and units in
unit trusts 44,410 7,416 51,826 54,736
Debt and fixed income securities
at market value 13,297 13,531 26,828 24,893
Debt and fixed income securities
at amortised cost 31,426 - 31,426 29,757
Loans secured by mortgages
and other loans 11,068 1,305 12,373 11,404
Deposits with credit institutions 1,723 1,077 2,800 2,588
------- ------- ------- -------
Total financial investments 101,924 23,329 125,253 123,378
Investments in participating
interests 110 231 341 434
Land and buildings 7,495 805 8,300 7,847
------- ------- ------- -------
Total investments 109,529 24,365 133,894 131,659
Assets held to cover linked
liabilities 26,723 - 26,723 24,626
Other assets included in the
balance sheet 8,642 19,679 28,321 26,899
------- ------- ------- -------
Total assets included in the
balance sheet 144,894 44,044 188,938 183,184
------- ------- ------- -------
Third party funds under
management:
Unit trusts, Oeics, PEPs and Isas 6,228 5,596
Segregated funds 20,585 19,691
------- -------
Total assets under management 215,751 208,471
======= =======
------------------------------------------------------------------------------
Page 36
Shareholder information
Financial calendar 2000/2001
Ex-dividend date for 2000 interim dividend 25 September 2000
Record date for 2000 interim dividend 29 September 2000
Announcement of 9 months 2000 results 8 November 2000
Payment of 2000 interim dividend 17 November 2000
Preliminary announcement of 2000 results 27 February 2001
Dividend reinvestment plan
Shareholders are offered the opportunity to participate in the Company's
Dividend Reinvestment Plan (the 'Plan') which enables dividends to be
reinvested in the Company's shares at reduced dealing costs.
Shareholders who have previously elected to join the Plan need take no further
action as their cash dividend will automatically be used to purchase CGNU's
shares, on or around the dividend payment date, in accordance with the terms
of the Plan.
Shareholders who have not already joined the Plan and wish to do so should
contact the Company's Registrar, at the address below, in order to obtain full
details and a mandate form. Completed mandate forms must be returned to the
Registrar by no later than 27 October 2000 in order to participate in the Plan
for the 2000 interim dividend. The Plan is available to ordinary shareholders,
members of the CGNU Share Account and members of the Group's employee profit
sharing schemes.
Interim report
In an effort to minimise waste and eliminate unnecessary cost, the Company has
decided not to mail interim reports automatically to all shareholders each
year. However, shareholders who would like a copy of the report, now and in
future years, should contact the Company's Registrar at the address below.
Shareholder enquiries
Shareholders who have any administrative enquiries about their shareholding in
CGNU should contact the Company's Registrar:
Lloyds TSB Registrars
The Causeway
Worthing
West Sussex
BN99 6DA
CGNU plc
Registered in England no: 2468686
Registered Office: St Helen's, 1 Undershaft, London EC3P 3DQ
Internet address: www.cgnu-group.com
Latest directors dealings
- 3 hours ago Savannah Energy
- 4 hours ago Buccaneer Energy PLC
- 4 hours ago Savannah Energy
- 4 hours ago Carclo
- 5 hours ago Schroder Japan Growth Fund