GENERAL ACCIDENT PLC

Interim / Quarterly Report • Aug 8, 2019

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RNS Number : 3688I

General Accident PLC

08 August 2019

INFORMATION FOR GENERAL ACCIDENT PLC PREFERENCE SHAREHOLDERS

GENERAL ACCIDENT PLC

Unaudited results for the six months ended 30 June 2019

These results are published for the benefit of preference shareholders of General Accident plc ("the Company") for the six months ended 30 June 2019.  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 2019 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, 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 investment income. Exposure to both credit and interest rate risk is managed through the monitoring of several risk measures.

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

Summarised income statement	Unaudited	Unaudited
	results	results
	6 months to	6 months to
	30 June	30 June
Statutory results	2019	2018
	£m	£m
Investment income Preference share goodwill payment	82 -	69 (8)
Total income	82	61
Profit on ordinary activities before tax	82	61
Tax on profit on ordinary activities*	-	-
Profit for the period	82	61
Basic earnings per share (pence)	0.4	0.3

* Tax on investment income is £nil due to losses surrendered by another Aviva group company free of charge to cover any tax liabilities arising on the Company's profits.

Summarised statement of financial position	Unaudited
30 June	31 December
2019	2018
£m	£m
Total assets	14,005	13,934
Equity attributable to ordinary shareholders	13,755	13,684
Preference share capital	250	250
Total equity	14,005	13,934
Liabilities	-	-
Total equity and liabilities	14,005	13,934
Statement of changes in equity	Unaudited	Unaudited
results	results
6 months to	6 months to
30 June	30 June
2019	2018
£m	£m
Total equity at 1 January	13,934	13,941
Profit for the period	82	61
Total comprehensive income for the period	82	61
Dividends	(11)	(11)
Total equity at 30 June	14,005	13,991

Summarised statement of cash flows as at 30 June 2019	Unaudited	Unaudited
results	results
6 months to	6 months to
30 June	30 June
2019	2018
£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 30 June1	-	-

1 The closing balance as at 30 June 2019 is £199 (2018: £nil). The majority of the Company's cash requirements are met by fellow Group companies.

Basis of preparation

The results for the six months to 30 June 2019 have been prepared on the basis of the accounting policies set out in the Company's 2018 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 2018 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 2018 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 2018 accounts.

The results for the six months are unaudited.

The unaudited results of Aviva for the six months ended 30 June 2019 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 Mohammed                                      J Windsor

Director                                   Director                                               Director

Enquiries: Chris Esson, Investor Relations Director, Aviva plc   020 7662 8115

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