INFORMATION FOR GENERAL ACCIDENT PLC PREFERENCE SHAREHOLDERS
GENERAL ACCIDENT PLC
Unaudited results for the six months ended 30 June 2023
These results are published for the benefit of preference shareholders of General Accident plc (the Company) for the six months ended 30 June 2023. 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 in 2005, in return for an inter-company loan with Aviva plc. The income of the Company for the six months to 30 June 2023 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 loan and short-term receivables due from its parent, Aviva plc. The external issuer credit rating of Aviva plc (representing an issuer's ability to meet its overall financial commitments as they fall due) is A.
• Interest rate risk: Effective from 1 January 2023, interest rate risk arises as the loan receivable is subject to a floating interest rate based on the SONIA swap rate. The net asset value of the Company's financial resources is exposed to potential fluctuations in interest rates impacting investment income. The net asset value of the Company's financial resources is not anticipated to be materially affected by fluctuations in interest rates.
• Risk of non-payment: The payment of the preference share dividends is made in cash by the parent of the Company, Aviva plc. If Aviva plc had insufficient cash at any time to pay the dividend it could use its revolving credit facility with Aviva Group Holdings (AGH), utilising AGH's cash balances.
The Company is part of the Aviva plc group (Group) and Aviva plc owns 100% of the Company's ordinary issued share capital.
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| | | |
| Condensed income statement | Unaudited | Unaudited | |
| | results | results | |
| | 6 months to | 6 months to | |
| | 30 June | 30 June | |
|
| 2023 | 2022 | |
| | £m | £m | |
| |
| | |
| Investment income | 223 | 33 | |
| |
|
| |
| Total income | 223 | 33 | |
|
|
|
| |
| Profit on ordinary activities before tax | 223 | 33 | |
| Tax on profit on ordinary activities* | - | - | |
| Profit for the period | 223 | 33 | |
| Basic earnings per share (pence) | 1.1 | 0.1 |
* Tax on investment income is £nil due to losses surrendered by a fellow Group company at no charge to cover any tax liabilities arising on the Company's profits.
| Condensed statement of financial position | Unaudited | Audited |
| 30 June | 31 December | |
| 2023 | 2022 | |
| £m | £m | |
|
|
|
|
| Total assets | 14,144 | 13,932 |
|
|
|
|
| Equity attributable to ordinary shareholders | 13,894 | 13,682 |
|
| ||
| Preference share capital | 250 | 250 |
|
|
|
|
| Total equity | 14,144 | 13,932 |
|
|
|
|
| Liabilities | - | - |
|
| ||
| Total equity and liabilities | 14,144 | 13,932 |
| Condensed statement of changes in equity | Unaudited | Unaudited |
| results | results | |
| 6 months to | 6 months to | |
| 30 June | 30 June | |
| 2023 | 2022 | |
| £m | £m | |
| |
|
|
| Total equity at 1 January | 13,932 | 13,932 |
|
|
|
|
| Profit for the period | 223 | 33 |
|
Total comprehensive income for the period |
223 |
33 |
|
|
|
|
| Dividends | (11) | (11) |
|
|
|
|
| Total equity at 30 June | 14,144 | 13,954 |
| | | |
| Condensed statement of cash flows | Unaudited | Unaudited |
| results | results | |
| 6 months to | 6 months to | |
| 30 June | 30 June | |
| 2023 | 2022 | |
| £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 | - | - |
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¹ The closing balance as at 30 June 2023 is £309 (2022: £9). The majority of the Company's cash requirements are met by Aviva plc.
Basis of preparation
The results for the six months to 30 June 2023 have been prepared on the basis of the accounting policies set out in the Company's 2022 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 2022 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 2022 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 2022 accounts.
The results for the six months are unaudited.
The unaudited results of Aviva plc for the six months ended 30 June 2023 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 2023 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 UK 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:
(1) 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
(2) 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 Dinwiddie N Harrison
Director Director Director
Enquiries:
Rupert Taylor Rea, Investor Relations Director, Aviva plc
rupert.taylorrea@aviva.com, +44 (0)7385 494 440
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