General Accident PLC Final Results (1472S)

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RNS Number : 1472S

General Accident PLC

07 March 2019

INFORMATION FOR GENERAL ACCIDENT PLC PREFERENCE SHAREHOLDERS

GENERAL ACCIDENT PLC

Preliminary Announcement of results for the year ended 31 December 2018

These results are published for the benefit of preference shareholders of General Accident plc ("the Company") for the year ended 31 December 2018. 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 2018 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.

On 8 March 2018, as part of its 2017 results, Aviva announced that it had the ability to cancel its existing preference shares at par. On 23 March 2018, it announced that it would take no action to cancel the preference shares. On 30 April 2018, Aviva announced that it would offer a discretionary goodwill payment to shareholders who sold preference shares in the period from 8 to 22 March 2018 (inclusive) at a share price that was lower than the price that the preference shares returned to following the announcement on 23 March 2018. The total cost of the goodwill payments to preference shareholders, including associated administration costs, was GBP10 million against the initial estimate of approximately GBP14 million. GBP2 million was recognised in the Company. No material provision remains outstanding as at 31 December 2018.

The Company is part of the Aviva group ("Group") and Aviva 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                               2018           2017 
                                                 GBPm           GBPm 
 
 Investment income                                146            138 
  Preference share goodwill payment               (2)              - 
--------------------------------------  -------------  ------------- 
 
 Total income                                     144            138 
 
 
 Profit on ordinary activities before 
  tax                                             144            138 
 Tax on profit on ordinary activities               -              - 
--------------------------------------  -------------  ------------- 
 Profit for the period                            144            138 
--------------------------------------  -------------  ------------- 
 Basic earnings per share (pence)                0.64           0.61 
--------------------------------------  -------------  ------------- 
 
 
 Summarised statement of financial         Audited        Audited 
  position 
                                       31 December    31 December 
                                              2018           2017 
                                              GBPm           GBPm 
 
 Total assets                               13,934         13,973 
-----------------------------------  -------------  ------------- 
 
 
 Equity attributable to ordinary 
  shareholders                              13,684         13,691 
 Preference share capital                      250            250 
 
 Total equity                               13,934         13,941 
 
 
 Liabilities                                     -             32 
-----------------------------------  -------------  ------------- 
 Total equity and liabilities               13,934         13,973 
-----------------------------------  -------------  ------------- 
 
 
 Statement of changes in equity            Audited        Audited 
                                           results        results 
                                      12 months to   12 months to 
                                       31 December    31 December 
                                              2018           2017 
                                              GBPm           GBPm 
 
 Total equity at 1 January                  13,941         13,914 
 
 Profit for the period                         144            138 
  Total comprehensive income for 
   the period                                  144            138 
 
 Dividends                                   (151)          (111) 
 
 Total equity at 31 December                13,934         13,941 
-----------------------------------  -------------  ------------- 
 
 
 
 Summarised statement of cash flows                Audited        Audited 
  as at 31 December 2018 
                                                   results        results 
                                                 12 months   12 months to 
                                                        to 
                                               31 December    31 December 
                                                      2018           2017 
                                                      GBPm           GBPm 
 
 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 December(1)             -              - 
--------------------------------------------  ------------  ------------- 
 
 

1 The closing balance as at 31 December 2018 is GBP116 (2017: GBPnil). 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 2018 was approved by the Board of Directors on 6 March 2019. The preliminary announcement for the year ended 31 December 2018 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 2017 have been filed with the Registrar of Companies. The results for the year ended 31 December 2017 and 2018 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 2018, 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 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 [e-mail] or visit www.rns.com.

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March 07, 2019 05:00 ET (10:00 GMT)