General Acc Interim Rslts,etc
CGNU PLC
2 August 2000
INFORMATION FOR GENERAL ACCIDENT PREFERENCE SHAREHOLDERS
GENERAL ACCIDENT PLC AND SUBSIDIARY COMPANIES
Unaudited results for the six months ended 30 June 2000
These results are published for the benefit of preference shareholders of
General Accident plc, whose shares have remained listed following the merger
of the Company with Commercial Union plc in June 1998 to form CGU plc (CGU).
CGU merged with Norwich Union plc in May 2000 to form CGNU plc.
Our worldwide life and savings business made excellent progress in the half
year, as well as achieving a number of significant new distribution
agreements. Our general insurance business results were disappointing,
reflecting late notified claims from the December 1999 storms in France and an
increase in large claims. We continue to take the necessary steps to improve
profitability. Against a difficult background, negotiations continue to
achieve a sale of the Company's US general insurance business.
Summarised consolidated profit and loss Restated
account Unaudited Unaudited
6 months to 6 months to
30 June 2000 30 June 1999
£m £m
Statutory results
Net premiums written 9,123 8,953
------- -------
Profit on ordinary activities before taxation 504 120
Tax on profit on ordinary activities (205) (59)
Minority interests (5) (13)
------- -------
Profit attributable to shareholders 294 48
Preference dividends (11) (11)
------- -------
Profit attributable to equity shareholders 283 37
======= =======
Summarised balance sheet Restated
Unaudited Unaudited
30 June 2000 30 June 1999
£m £m
Total assets 118,491 109,538
======= =======
Equity shareholders' funds 10,830 10,035
Non-equity shareholders' funds and minority 512 473
Interests
Technical provisions and other liabilities 107,149 99,030
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Total liabilities 118,491 109,538
======= =======
Summarised cash flow statement Unaudited Unaudited
6 months to 6 months to
30 June 2000 30 June 1999
£m £m
Net cash (outflow)/inflow from operating (39) 219
activities
Net cash outflow from other activities (577) (489)
Net sales of investments 596 144
------- -------
Decrease in cash holdings (20) (126)
======= =======
The unaudited interim results have been prepared on the basis of accounting
policies set out in the CGU Group's 1999 Annual Report and Accounts, as
modified to align the embedded value assumptions used by CGU plc and Norwich
Union plc onto a common basis. This has led to an increase in shareholders'
funds at 30 June 1999 of £80m. The requirements of FRS 16 'Current Tax' have
been implemented in respect of the half year 1999 results, reducing profit on
ordinary activities before taxation, and taxation, by £6m in both cases.
The unaudited results of CGNU plc for the six months ended 30 June 2000 are
available on application to the Group Company Secretary, CGNU plc, St.
Helen's, 1 Undershaft, London EC3P 3DQ.
Enquiries: Peter Foster, Group Finance Director, CGNU 020 7662 2007
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