GENERAL ACCIDENT PLC

Earnings Release • Aug 3, 2017

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RNS Number : 0123N

General Accident PLC

03 August 2017

INFORMATION FOR GENERAL ACCIDENT PLC PREFERENCE SHAREHOLDERS

GENERAL ACCIDENT PLC

Unaudited results for the six months ended 30 June 2017

These results are published for the benefit of preference shareholders of General Accident plc ("the Company") for the six months ended 30 June 2017.  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 2017 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 impacting interest income. 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, decreased during the period by £112 million from £17,003 million at 31 December 2016 to £16,891 million at 30 June 2017. Operating profit of the Aviva Group at £1,465 million was 11% higher than for the six months to 30 June 2016 (£1,325 million) and net operating cash inflow for the six months to 30 June 2017 was £4,850 million (six months to 30 June 2016: £1,128 million).

Summarised income statement	Unaudited	Unaudited
	results	results
	6 months to	6 months to
	30 June	30  June
Statutory results	2017	2016
	£m	£m
Investment income	69	85
Total income	69	85
Profit on ordinary activities before tax	69	85
Tax on profit on ordinary activities	(13)	(17)
Profit for the period	56	68
Basic earnings per share (pence)	0.2	0.3
Summarised statement of financial position	Unaudited
30 June	31 December
2017	2016
£m	£m
Total assets	14,004	13,980
Equity attributable to ordinary shareholders	13,709	13,664
Preference share capital	250	250
Total equity	13,959	13,914
Liabilities	45	66
Total equity and liabilities	14,004	13,980
Statement of changes in equity	Unaudited	Unaudited
results	results
6 months to	6 months to
30 June	30 June
2017	2016
£m	£m
Total equity at 1 January	13,914	13,917
Profit for the period	56	68
Total comprehensive income for the period	56	68
Dividends	(11)	(11)
Total equity at 30 June	13,959	13,974

Summarised statement of cash flows as at 30 June 2017

No statement of cash flows is presented as all balances would be nil (June 2016: 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 2017 have been prepared on the basis of the accounting policies set out in the Company's 2016 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 2016 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 2016 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 2016 accounts.

The results for the six months are unaudited.

The unaudited results of Aviva plc for the six months ended 30 June 2017 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.

K A Cooper                             S Maillet                                               T D Stoddard

Director                                   Director                                                Director

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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