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General Accident PLC (GACA)

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Thursday 02 August, 2018

General Accident PLC

Half-year Report

RNS Number : 5979W
General Accident PLC
02 August 2018
 

INFORMATION FOR GENERAL ACCIDENT PLC PREFERENCE SHAREHOLDERS

 

 

GENERAL ACCIDENT PLC

Unaudited results for the six months ended 30 June 2018

 

 

These results are published for the benefit of preference shareholders of General Accident plc ("the Company") for the six months ended 30 June 2018.  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 2018 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.

 

On 8 March 2018, as part of its 2017 results, Aviva announced that it had the ability to cancel preference shares at par.  On 23 March 2018, it announced that it would not be using its ability to cancel the shares. On 30 April 2018, Aviva announced that it will offer a discretionary goodwill payment to shareholders who were adversely affected by the sale of shares between 8 and 22 March 2018 (inclusive) with a total cost not exceeding approximately £14 million. £8 million of this provision has been allocated to the Company below based on the proportion of Aviva and the Company's preference share capital.

 

Equity shareholders' funds of the Aviva Group, prepared using accounting policies under IFRS, decreased during the period by £605 million from £16,969 million at 31 December 2017 to £16,364 million at 30 June 2018. Operating profit of the Aviva Group at £1,438 million was 2% higher than for the six months to 30 June 2017 (£1,413 million) and net operating cash inflow for the six months to 30 June 2018 was £2,280 million (six months to 30 June 2017: £4,850 million).



 




Summarised income statement

Unaudited

Unaudited

 

results

results

 

6 months to

6 months to

 

30 June

30 June

Statutory results

2018

2017

 

£m

£m

 

 

 

Investment income

 

Preference share goodwill payment

 

69

 

(8)

69

 

-


 

 

Total income

61

69

 

 

 

Profit on ordinary activities before tax

61

69

Tax on profit on ordinary activities*

-

(13)

Profit for the period

61

56

Basic earnings per share (pence)

0.3

0.2

 

* Tax on investment income is £nil due to losses surrendered by Aviva free of charge to cover any tax liabilities arising on the Company's profits (2017: 19.25%).

 

 

 

Summarised statement of financial position

 

Unaudited

 

30 June

31 December

2018

2017

£m

£m

 

 

 

Total assets

13,999

13,973

 

 

 

Equity attributable to ordinary shareholders

13,741

13,691

Preference share capital

250

250

 

 

 

Total equity

13,991

13,941

 

 

 

Liabilities

8

32

Total equity and liabilities

13,999

13,973

 



 

 



Statement of changes in equity

Unaudited

Unaudited

results

results

6 months to

6 months to

30 June

30 June

2018

2017

£m

£m

 



Total equity at 1 January

13,941

13,914

 

 

 

Profit for the period

61

56

 

Total comprehensive income for the period

 

61

 

56

 

 

 

Dividends

(11)

(11)

 

 

 

Total equity at 30 June

13,991

13,959

 



 

 

 

Summarised statement of cash flows as at 30 June 2018

 

No statement of cash flows is presented as all balances would be nil (June 2017: nil). All the Company's cash requirements are met by fellow Group companies.



 

Basis of preparation

 

The results for the six months to 30 June 2018 have been prepared on the basis of the accounting policies set out in the Company's 2017 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 2017 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 2017 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 2017 accounts.

 

The results for the six months are unaudited.

 

The unaudited results of Aviva for the six months ended 30 June 2018 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 Maillet                                               T D Stoddard

Director                                   Director                                                Director

 

 

 

Enquiries: Chris Esson, Investor Relations Director, Aviva plc     020 7662 8115


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