GENERAL ACCIDENT PLC

Earnings Release • Aug 7, 2014

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RNS Number : 4783O

General Accident PLC

07 August 2014

INFORMATION FOR GENERAL ACCIDENT PLC PREFERENCE SHAREHOLDERS

GENERAL ACCIDENT PLC

Unaudited results for the six months ended 30 June 2014

These results are published for the benefit of preference shareholders of General Accident plc ("the Company") for the six months ended 30 June 2014.  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 2014 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 terms receivable 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 £593 million from £8,164 million at 31 December 2013 to £8,757 million at 30 June 2014. Operating profit of the Aviva Group at £1,052 million was 7% lower than for the six months to 30 June 2013 (£1,133 million) and net operating cash outflows for the six months to 30 June 2014 were £1,558 million (restated six months to 30 June 2013: £2,553 million inflow).

Summarised income statement	Unaudited	Unaudited
	results	results
	6 months to	6 months to
	30 June	30  June
Statutory results	2014	2013
	£m	£m
Investment income	122	120
Total income	122	120
Profit on ordinary activities before tax	122	120
Tax on profit on ordinary activities	(26)	(28)
Profit for the period	96	92
Basic earnings per share (pence)	0.5	0.5

Summarised statement of financial position	Unaudited
30 June	31 December
2014	2013
£m	£m
Total assets	14,083	14,041
Equity attributable to ordinary shareholders	13,750	13,665
Preference share capital	250	250
Total equity	14,000	13,915
Liabilities	83	126
Total equity and liabilities	14,083	14,041
Statement of changes in equity		Unaudited
	results
	6 months to
	30 June
	2014
	£m
Total equity at 1 January 2014		13,915
Profit for the period		96
Other comprehensive income		-
Total comprehensive income for the period		96
Dividends		(11)
Total equity at 30 June 2014		14,000

Summarised statement of cash flows as at 30 June 2014

No statement of cash flows is presented as all balances would be nil (June 2013: 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 2014 have been prepared on the basis of the accounting policies set out in the Company's 2013 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 2013 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 2013 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 2013 accounts.

The results for the six months are unaudited.

The unaudited results of Aviva plc for the six months ended 30 June 2014 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.

David Rogers                                                   Kirstine Cooper

Director                                                            Director

Enquiries: Colin Simpson, 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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