GENERAL ACCIDENT PLC

Earnings Release • Mar 2, 2022

National Storage Mechanism | Additional information

RNS Number : 2974D

General Accident PLC

02 March 2022

INFORMATION FOR GENERAL ACCIDENT PLC PREFERENCE SHAREHOLDERS

GENERAL ACCIDENT PLC

Preliminary Announcement of results for the year ended 31 December 2021

These results are published for the benefit of preference shareholders of General Accident plc ("the Company") for the year ended 31 December 2021. 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, in 2005, in return for an inter-company loan. The income of the Company for the year ended 31 December 2021 consists of interest received on this loan.

The principal risks and uncertainties facing the Company are:

-       Credit risk: The net asset value of the Company's financial resources is exposed to the potential default on the loan and short-term receivables due from its parent, Aviva plc. The external issuer credit rating of Aviva plc (representing an issuer's ability to meet its overall financial commitments as they fall due) is A, and as such the risk of counterparty default is considered remote. In addition, the loan amounting to £9,484 million (2020: £9,529 million) is secured by a legal charge against the ordinary share capital of Aviva Group Holdings Limited mitigating the risk of loss in the event of Aviva plc defaulting. Due to the nature of the loan, and the fact that it is intended to be held until settled by Aviva plc (on maturity or earlier if redeemed before maturity) and not traded, the Company is not exposed to the risk of changes to the market value caused by changing perceptions of the credit worthiness of Aviva plc. There were no financial assets that were past due or impaired at either 31 December 2021 or 31 December 2020.

-       Interest rate risk: From January 2021 the loan has been set at a fixed rate due to LIBOR being abolished, and going forwards the interest rate risk will be mitigated.

Exposure to credit risk and interest rate risk is managed through the monitoring of several risk measures.

The Company is part of the Aviva group ("Group") and Aviva plc owns 100% of the Company's ordinary issued share capital.

Summarised income statement	Audited	Audited
	results	results
	12 months to	12 months to
	31 December	31 December
Statutory results	2021	2020
	£m	£m
Investment income	66	120
Total income	66	120
Profit on ordinary activities before tax	66	120
Tax on profit on ordinary activities	-	-
Profit for the period	66	120
Basic earnings per share (pence)	0.24	0.52

Summarised statement of financial position	Audited	Audited
31 December	31 December
2021	2020
£m	£m
Total assets	13,932	13,932
Equity attributable to ordinary shareholders	13,682	13,682
Preference share capital	250	250
Total equity	13,932	13,932
Liabilities	-	-
Total equity and liabilities	13,932	13,932
Statement of changes in equity	Audited	Audited
results	results
12 months to	12 months to
31 December	31 December
2021	2020
£m	£m
Total equity at 1 January	13,932	13,934
Profit for the period	66	120
Total comprehensive income for the period	66	120
Dividends	(66)	(122)
Total equity at 31 December	13,932	13,932

Summarised statement of cash flows	Audited	Audited
results	results
12 months to	12 months to
31 December	31 December
2021	2020
£m	£m
Cash flows from financing activities	-	-
Net cash from financing activities	-	-
Total net increase/(decrease) in cash and cash equivalents	-	-
Cash and cash equivalents at 1 January	-	-
Cash and cash equivalents at 31 December1	-	-

¹The closing balance as at 31 December 2021 is £195 (2020: £475). The majority of the Company's cash requirements are met by fellow Group companies.

Basis of preparation

The preliminary announcement for the year ended 31 December 2021 was approved by the Board of Directors on 1 March 2022. The preliminary announcement for the year ended 31 December 2021 is prepared on the basis of the accounting policies set out in the annual accounts. Audited statutory accounts, together with the auditor's report thereon, will be filed with the Registrar of Companies when approved and published.

The Company's Annual Report and Accounts for 2021 will be filed with the Registrar of Companies. The results for the year ended 31 December 2021 and 2020 were audited by PricewaterhouseCoopers LLP. The auditor's report was unqualified and did not contain a statement under section 498(2) or section 498(3) of the Companies Act 2006.

The audited annual reports and accounts of both the Company and of Aviva plc for the year ended 31 December 2021, once published, will be available on application to the Group General Counsel and Company Secretary, Aviva plc, St Helen's, 1 Undershaft, London, EC3P 3DQ. Copies will be made available on the Aviva plc website once published at http://www.aviva.com/investor-relations/reports/.

Enquiries: Rupert Taylor Rea, Investor Relations Director, Aviva plc, rupert.taylorrea@aviva.com, +44 (0)7385 494 440

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

ACSDXGDXUGGDGDB