GENERAL ACCIDENT PLC

Earnings Release • Mar 9, 2017

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RNS Number : 9614Y

General Accident PLC

09 March 2017

INFORMATION FOR GENERAL ACCIDENT PLC PREFERENCE SHAREHOLDERS

GENERAL ACCIDENT PLC

Preliminary Announcement of results for the year ended 31 December 2016

These results are published for the benefit of preference shareholders of General Accident plc ("the Company") for the year ended 31 December 2016.  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 year ended 31 December 2016 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 plc, and (2) interest rate risk, as the net asset value of the Company's financial resources is exposed to potential fluctuations in interest rates. Exposure to both credit and interest rate risk is managed through the monitoring of several risk measures.

Equity shareholders' funds of the Aviva Group, prepared using accounting policies under IFRS, increased during the period by £1,001 million from restated £16,002 million at 31 December 2015 to £17,003 million at 31 December 2016. Operating profit of the Aviva Group at £3,010 million was 12.0% higher than for the twelve months to 31 December 2015 (restated £2,688 million) and net operating cash inflow for the twelve months to 31 December 2016 was £4,747 million (2015: £4,755 million).

Summarised income statement	Audited	Audited
	results	results
	12 months to	12 months to
	31 December	31 December
Statutory results	2016	2015
	£m	£m
Investment income	160	166
Total income	160	166
Profit on ordinary activities before tax	160	166
Tax on profit on ordinary activities	(32)	(34)
Profit for the year	128	132
Basic earnings per share (pounds)	0.01	0.01

Summarised statement of financial position	Audited	Audited
31 December	31 December
2016	2015
£m	£m
Total assets	13,980	14,004
Equity attributable to ordinary shareholders	13,664	13,667
Preference share capital	250	250
Total equity	13,914	13,917
Liabilities	66	87
Total equity and liabilities	13,980	14,004
Statement of changes in equity		Audited
	results
	12 months to
	31 December
	2016
	£m
Total equity at 1 January 2016		13,917
Profit for the year		128
Other comprehensive income		-
Total comprehensive income for the year		128
Dividends		(131)
Total equity at 31 December 2016		13,914

Summarised statement of cash flows as at 31 December 2016

No statement of cash flows is presented as all balances would be nil (2015: nil). All the Company's cash requirements are met by fellow Group companies.

Basis of preparation

The preliminary announcement for the year ended 31 December 2016 was approved by the Board of Directors on 8 March 2017. The preliminary announcement for the year ended 31 December 2016 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 2015 have been filed with the Registrar of Companies. The results for the year ended 31 December 2015 and 2016 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 2016, 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: Chris Esson, Investor Relations Director, Aviva plc     020 7662 8115

This information is provided by RNS

The company news service from the London Stock Exchange

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