2001 Full year results-Part 5
CGNU PLC
27 February 2002
PART 5 OF 6
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Page 31
Statistical supplement
Segmental analysis of Group operating profit* at constant currency
- achieved profit basis
2000
at 2001
exchange
2001 rates 2000
Continuing operations £m £m £m
Life achieved operating profit
United Kingdom 859 938 938
France 227 208 204
Ireland 79 69 68
Italy 55 30 29
Netherlands (including
Belgium and Luxembourg) 221 183 179
Poland life and pensions 99 106 95
Spain 80 43 42
Other Europe 18 (17) (15)
International 36 28 29
------ ------ ------
1,674 1,588 1,569
====== ====== ======
Health
United Kingdom 8 6 6
France 9 12 12
Netherlands 53 51 50
------ ------ ------
70 69 68
====== ====== ======
Fund management
United Kingdom (4) 16 16
France 12 10 9
Netherlands 8 13 13
Other Europe 2 2 2
Australia and New Zealand 7 15 16
International 4 6 5
------ ------ ------
29 62 61
====== ====== ======
General insurance
United Kingdom 590 296 296
France 58 (116) (115)
Ireland 48 21 21
Netherlands 19 (4) (4)
Other Europe 41 18 20
Australia and New Zealand 69 78 82
Canada 72 79 78
Other 48 33 34
------ ------ ------
945 405 412
====== ====== ======
Non-insurance operations (2) (25) (24)
Corporate costs (187) (186) (185)
Unallocated interest charges
- external (179) (151) (151)
- intra-group (247) (210) (210)
------ ------ ------
2,103 1,552 1,540
Wealth management (99) (133) (133)
------ ------ ------
Group operating profit
before tax*
- continuing operations 2,004 1,419 1,407
====== ====== ======
* Group operating profit before tax from continuing operations, before
amortisation of goodwill and exceptional items
Restating 2000 modified statutory life profits to account for the impact of
exchange rate movements in 2001 would result in modified statutory life
profits increasing from £1,190 million to £1,204 million for the year to 31
December 2000.
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Page 32
Supplementary analyses
(a) New business contribution - including effect of solvency margin
2000
at 2001
2001 assumptions* 2000
£m £m £m
United Kingdom 315 269 283
Europe (excluding UK)
France 44 32 38
Ireland 29 18 20
Italy 21 16 16
Netherlands (including
Belgium and Luxembourg) 11 (8) (1)
Poland
- Life 5 3 3
- Pensions 2 22 22
Spain 50 15 15
Other (4) (1) (1)
International 6 (3) (3)
------ ------ ------
479 363 392
====== ====== ======
* 2000 new business contribution has been shown using the application of
2001 economic assumptions.
(b) Non-insurance operations - operating result
2001 2000
£m £m
United Kingdom
Hill House Hammond 4 12
Norwich Union Direct Financial Services - (7)
Norwich Union Equity Release
and other personal finance subsidiaries (3) (7)
Your Move (17) (39)
Other 3 (3)
Europe (excluding UK) 11 20
------ ------
(2) (24)
====== ======
The operating result of the equity release business sold in the UK is included
within the non-insurance results on a statutory basis. On an achieved profit
methodology new business contribution was £12 million before tax and
operating profit £15 million before tax, which is excluded from our results.
(c) Corporate costs
2001 2000
£m £m
Groupwide Staff profit share
and other incentive plans (78) (57)
Other corporate costs (109) (128)
------ ------
(187) (185)
====== ======
(d) Wealth management - operating result
2001 2000
£m £m
United Kingdom
assertahome (18) (23)
Other wealth management (81) (110)
------ ------
(99) (133)
====== ======
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Page 33
Supplementary analyses (continued)
General business - investment return information
Actual Longer-term
investment investment
return return
2001 2000 2001 2000
£m £m £m £m
United Kingdom 512 489 671 683
Europe (excluding UK)
France 62 52 91 93
Ireland 49 41 55 51
Netherlands 34 14 33 36
Other 50 53 66 75
International
Australia and New Zealand 55 73 70 89
Canada 105 110 128 131
Other 48 61 55 75
------ ------ ------ ------
Total longer-term investment return
- continuing operations 1,169 1,233
Total actual investment income 915 893
Realised gains 300 507
Unrealised (losses)/ gains (904) 82
------ ------
Total actual investment return
- continuing operations 311 1,482
Discontinued operations
United States 165 483 152 417
London Market - 45 - 55
------ ------ ------ ------
476 2,010 1,321 1,705
====== ====== ====== ======
Reconciliation between general business investment return information and
short-term fluctuation in investment returns incorporated in the summarised
consolidated profit and loss account - modified statutory basis.
For the year to 31 December 2001
Short-term
fluctuation
Actual Longer-term in
investment investment investment
return return returns
£m £m £m
General business 476 1,321 (845)
Health business (24) 83 (107)
------ ------ ------
452 1,404 (952)
------ ------
Life business (36)
------
Total short-term
fluctuation in
investment returns (988)
======
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Page 34
Supplementary analyses (continued)
(f) General business information on continuing operations - adverse
weather/catastrophe claims costs
2001 2000
£m £m
United Kingdom * - 195
Europe (excluding UK)
France 4 95
Ireland - 4
International
Australia and New Zealand 7 4
Canada 6 15
Other - 18
------ ------
17 331
====== ======
* Adverse weather/catastrophe claims costs are the costs above the 10-year
average weather pattern.
(g) Disposals - impact on operating profit
The Group's operating profit in 2001 and 2000 from continuing operations
excludes the result from the United States general insurance business and
London Market operations. All other disposals and businesses in the process of
being sold are not considered sufficiently material to merit separate
disclosure in the Group results or do not meet the Financial Reporting
Standard 3, 'Reporting Financial Performance', definition of discontinued
business. A summary of the contribution to the Group's operating profit from
these operations is as follows:
2001 2000
£m £m
Disposals
United Kingdom - fund management 3 11
Italy - life 1 2
Poland - life * - (6)
Other Europe - life * - (10)
Other International - life * 3 19
Other Europe - general - (2)
New Zealand - general - 10
Other International - general 2 14
Other International - non-insurance 3 4
------ ------
12 42
====== ======
* Impact on operating profit is stated on an achieved profit basis.
The longer-term investment return component of the general insurance business
results included in the table above was £10 million (full year 2000: £52
million).
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Page 35
Supplementary analyses (continued)
(h) Pension schemes
FRS17 'Retirement benefits' was issued in November 2000 but will not be
mandatory for the Group and the Company until the year ended 31 December 2003.
Prior to this, phased transitional disclosures are introduced and the table
below is an extract from these disclosures. FRS17 differs from the existing
accounting standard for pension costs (SSAP24) in a number of ways,
principally the choice of assumptions, and that the difference between the
market value of assets and the liabilities is immediately recognised in the
balance sheet under FRS17, whereas changes in assets and liabilities are
recognised on a smoothed basis under SSAP24. The effect on the Group net
assets and retained profits at 31 December 2001 of substituting the above
FRS17 figures for the corresponding SSAP24 balance sheet would be as follows:
Net
assets
£m
Total included in the Group accounts 12,523
Less: pension asset/liability on a SSAP24 basis (143)
------
Total excluding pension asset/liability 12,380
Add: pension asset/liability on FRS17 basis 233
------
Total including pension asset/liability 12,613
======
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Page 36
General insurance - geographical ratio analysis
Combined
Claims Expense operating
ratio ratio ratio
2001 2000 2001 2000 2001 2000
% % % % % %
United Kingdom 71.7% 77.9% 10.5% 10.7% 102% 108%
France 71.5% 97.4% 13.1% 15.7% 104% 133%
Ireland 81.3% 88.0% 9.9% 8.9% 101% 109%
Netherlands 65.7% 73.4% 19.0% 18.2% 104% 108%
Australia and
New Zealand 69.7% 70.9% 14.2% 17.8% 99% 101%
Canada 78.1% 76.5% 12.9% 11.8% 107% 106%
------ ------ ------ ------ ------ ------
Group - continuing
operations 72.2% 78.6% 12.0% 12.6% 102% 109%
====== ====== ====== ====== ====== ======
Ratios are measured in local currency.
The total Group ratios are based on average exchange rates applying to the
respective periods.
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.
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Page 37
General insurance - class of business analyses
(a) United Kingdom - continuing operations
Net Combined
written Underwriting operating
premiums result ratio
2001 2000 2001 2000 2001 2000
£m £m £m £m % %
Personal
Motor 1,442 1,437 (40) (70) 103% 106%
Homeowner 1,037 1,228 72 (48) 94% 104%
Creditor 508 508 21 17 94% 96%
Other 89 108 (2) (3) 100% 97%
------ ------ ------ ------ ------ ------
3,076 3,281 51 (104) 98% 104%
------ ------ ------ ------ ------ ------
Commercial
Motor 680 686 (44) (90) 105% 113%
Property 579 636 (26) (136) 104% 120%
Liability 242 223 (64) (73) 126% 131%
Other 200 111 2 16 100% 85%
------ ------ ------ ------ ------ ------
1,701 1,656 (132) (283) 108% 116%
------ ------ ------ ------ ------ ------
£m 4,777 4,937 (81) (387) 102% 108%
====== ====== ====== ====== ====== ======
During the year to 31 December 2001, annualised rating increases for
commercial motor have been 18%, with 13% for personal motor and 23% for
commercial liability, while homeowners and commercial property have seen
increases of 6% and 11% respectively.
(b) France
Net Combined
written Underwriting operating
premiums result ratio
2001 2000 2001 2000 2001 2000
Em Em Em Em % %
Motor 409 416 (26) (93) 106% 122%
Property 475 447 9 (213) 98% 147%
Other 245 187 (36) (35) 114% 119%
------ ------ ------ ------ ------ ------
Em 1,129 1,050 (53) (341) 104% 133%
====== ====== ====== ====== ====== ======
£m 700 640 (33) (208) 104% 133%
====== ====== ====== ====== ====== ======
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Page 38
General insurance - class of business analyses (continued)
(c) Netherlands
Net Combined
written Underwriting operating
premiums result ratio
2001 2000 2001 2000 2001 2000
Em Em Em Em % %
Personal
property 23 28 2 1 91% 93%
Commercial
property 225 316 15 (1) 96% 100%
Motor 264 258 (34) (36) 113% 114%
Liability 47 46 (8) (19) 119% 142%
Inward
reinsurance - 9 - (3) - 135%
Other 65 106 2 (8) 93% 105%
------ ------ ------ ------ ------ ------
Em 624 763 (23) (66) 104% 108%
------ ------ ------ ------ ------ ------
£m 387 465 (14) (40) 104% 108%
====== ====== ====== ====== ====== ======
(d) Canada
Net Combined
written Underwriting operating
premiums result ratio
2001 2000 2001 2000 2001 2000
C$m C$m C$m C$m % %
Automobile 1,175 1,272 (43) (68) 104% 105%
Property 591 655 (28) (38) 105% 107%
Liability 163 162 (60) (20) 137% 115%
Other 28 27 7 7 72% 69%
------ ------ ------ ------ ------ ------
C$m 1,957 2,116 (124) (119) 107% 106%
------ ------ ------ ------ ------ ------
£m 878 940 (56) (53) 107% 106%
====== ====== ====== ====== ====== ======
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Page 39
Assets under management
General
Long-term Business
Business and other Group Group
31 Dec 31 Dec 31 Dec 31 Dec
2001 2001 2001 2000
£m £m £m £m
Financial investments
Shares, other variable
yield securities and
units in unit trusts 34,947 2,791 37,738 46,821
Strategic investments 2,472 1,377 3,849 4,089
Debt and fixed income
securities at market value 20,353 9,288 29,641 25,273
Debt and fixed income
securities at amortised cost 34,129 - 34,129 35,095
Loans secured by mortgages
and other loans, net of
non-recourse funding 11,291 1,236 12,527 12,311
Deposits with credit
institutions 803 1,346 2,149 2,988
------ ------ ------ ------
Total financial investments 103,995 16,038 120,033 126,577
Investments in Group
undertakings and
participating interests 795 282 1,077 992
Land and buildings 8,184 857 9,041 8,826
------ ------ ------ ------
Total investments 112,974 17,177 130,151 136,395
Assets held to cover
linked liabilities 28,704 - 28,704 27,255
Other assets included
in the balance sheet 9,325 20,054 29,379 29,668
------ ------ ------ ------
Total assets included
in the balance sheet 151,003 37,231 188,234 193,318
------ ------ ------ ------
Third party funds
under management:
Unit trusts, Oeics,
Peps and Isas 4,677 5,295
Segregated funds 15,998 21,302
------ ------
Total assets under
management 208,909 219,915
====== ======
Strategic investments include the market value of the Group's share of
Societe Generale, Munchener Ruckversicherungs-Gesellschaft, and The Royal
Bank of Scotland Group.
General insurance and other investments mix
Total
United Continental 31 Dec
Kingdom Europe International 2001
£m £m £m £m
Shares, other variable
yield securities
and units in unit trusts 2,045 1,454 669 4,168
Debt and fixed income
securities at market value 4,509 2,643 2,136 9,288
Land and buildings 292 496 69 857
Other 1,869 585 410 2,864
------ ------ ------ ------
Total Investments 8,715 5,178 3,284 17,177
====== ====== ====== ======
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