TIDMGACA
RNS Number : 3407V
General Accident PLC
06 August 2020
INFORMATION FOR GENERAL ACCIDENT PLC PREFERENCE SHAREHOLDERS
GENERAL ACCIDENT PLC
Unaudited results for the six months ended 30 June 2020
These results are published for the benefit of preference
shareholders of General Accident plc (the Company) for the six
months ended 30 June 2020. 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 2020 consists of interest received on this
loan.
The principal risks and uncertainties facing the Company for the
remainder of the year are:
- Credit risk: 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. The external
issuer credit rating (representing an issuer's ability to meet its
overall financial commitments as they fall due) is A.
- Interest rate risk: the net asset value of the Company's
financial resources is exposed to potential fluctuations in
interest rates impacting investment income. Interest rate risk is a
risk the Company chooses to accept rather than reduce or mitigate,
as although it may materially impact the results of the Company, it
does not impact the Company as a going concern, as the Company has
no operating expenses and a loan structure in place.
- COVID-19: On 11 March 2020, the World Health Organization
declared the outbreak of a strain of novel coronavirus disease,
COVID-19, a global pandemic. The spread of COVID-19 has resulted in
an economic downturn in the global economy. Whilst there has been a
fall in LIBOR rates since the onset of COVID-19, the loan with
Aviva has a floor set for LIBOR of zero. Therefore, interest income
will continue to be generated in the circumstance that LIBOR falls
below zero. The ability to pay future preference share dividends is
not affected.
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
2020 2019
GBPm GBPm
Investment income 75 82
--------------------------------------- ------------ ------------
Total income 75 82
Profit on ordinary activities before
tax 75 82
Tax on profit on ordinary activities* - -
--------------------------------------- ------------ ------------
Profit for the period 75 82
--------------------------------------- ------------ ------------
Basic earnings per share (pence) 0.3 0.4
--------------------------------------- ------------ ------------
* Tax on investment income is GBPnil 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 Unaudited Audited
position
30 June 31 December
2020 2019
GBPm GBPm
Total assets 13,998 13,934
----------------------------------- ------------ ------------
Equity attributable to ordinary
shareholders 13,748 13,684
Preference share capital 250 250
Total equity 13,998 13,934
Liabilities - -
----------------------------------- ------------ ------------
Total equity and liabilities 13,998 13,934
----------------------------------- ------------ ------------
Statement of changes in equity Unaudited Unaudited
results results
6 months to 6 months to
30 June 30 June
2020 2019
GBPm GBPm
Total equity at 1 January 13,934 13,934
Profit for the period 75 82
Total comprehensive income for
the period 75 82
Dividends (11) (11)
Total equity at 30 June 13,998 14,005
----------------------------------- ------------ ------------
Summarised statement of cash flows Unaudited Unaudited
results results
6 months 6 months to
to
30 June 30 June
2020 2019
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 30 June(1) - -
---------------------------------------- ---------- ------------
(1) The closing balance as at 30 June 2020 is GBP598 (2019:
GBP199). 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 2020 have been
prepared on the basis of the accounting policies set out in the
Company's 2019 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 2019 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 2019 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
2019 accounts.
The results for the six months are unaudited.
The unaudited results of Aviva for the six months ended 30 June
2020 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.
Going concern
A going concern review has been undertaken as part of the 2020
interim reporting process. After making enquires, the directors
have a reasonable expectation that the Group has adequate resources
to continue in operational existence over a period of at least
twelve months from the date of approval of the interim accounts.
For this reason, the Company continues to adopt the going concern
basis in preparing the interim accounts.
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 A Montague J Windsor
Director Director Director
Enquiries:
Chris Esson, Investor Relations Director, Aviva plc 020 7662 8115
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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August 06, 2020 05:00 ET (09:00 GMT)
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