TIDMGACA

RNS Number : 2974D

General Accident PLC

02 March 2022

INFORMATION FOR GENERAL ACCIDENT PLC PREFERENCE SHAREHOLDERS

GENERAL ACCIDENT PLC

Preliminary Announcement of results for the year ended 31 December 2021

These results are published for the benefit of preference shareholders of General Accident plc ("the Company") for the year ended 31 December 2021. 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. The income of the Company for the year ended 31 December 2021 consists of interest received on this loan.

The principal risks and uncertainties facing the Company 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, and as such the risk of counterparty default is considered remote. In addition, the loan amounting to GBP9,484 million (2020: GBP9,529 million) is secured by a legal charge against the ordinary share capital of Aviva Group Holdings Limited mitigating the risk of loss in the event of Aviva plc defaulting. Due to the nature of the loan, and the fact that it is intended to be held until settled by Aviva plc (on maturity or earlier if redeemed before maturity) and not traded, the Company is not exposed to the risk of changes to the market value caused by changing perceptions of the credit worthiness of Aviva plc. There were no financial assets that were past due or impaired at either 31 December 2021 or 31 December 2020.

- Interest rate risk: From January 2021 the loan has been set at a fixed rate due to LIBOR being abolished, and going forwards the interest rate risk will be mitigated.

Exposure to credit risk and interest rate risk is managed through the monitoring of several risk measures.

The Company is part of the Aviva group ("Group") and Aviva plc 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                               2021           2020 
                                                 GBPm           GBPm 
 
 Investment income                                 66            120 
--------------------------------------  -------------  ------------- 
 
 Total income                                      66            120 
 
 
 Profit on ordinary activities before 
  tax                                              66            120 
 Tax on profit on ordinary activities               -              - 
--------------------------------------  -------------  ------------- 
 Profit for the period                             66            120 
--------------------------------------  -------------  ------------- 
 Basic earnings per share (pence)                0.24           0.52 
--------------------------------------  -------------  ------------- 
 
 
 Summarised statement of financial         Audited        Audited 
  position 
                                       31 December    31 December 
                                              2021           2020 
                                              GBPm           GBPm 
 
 Total assets                               13,932         13,932 
-----------------------------------  -------------  ------------- 
 
 
 Equity attributable to ordinary 
  shareholders                              13,682         13,682 
 Preference share capital                      250            250 
 
 Total equity                               13,932         13,932 
 
 
 Liabilities                                     -              - 
-----------------------------------  -------------  ------------- 
 Total equity and liabilities               13,932         13,932 
-----------------------------------  -------------  ------------- 
 
 
 Statement of changes in equity            Audited        Audited 
                                           results        results 
                                      12 months to   12 months to 
                                       31 December    31 December 
                                              2021           2020 
                                              GBPm           GBPm 
 
 Total equity at 1 January                  13,932         13,934 
 
 Profit for the period                          66            120 
  Total comprehensive income for 
   the period                                   66            120 
 
 Dividends                                    (66)          (122) 
 
 Total equity at 31 December                13,932         13,932 
-----------------------------------  -------------  ------------- 
 
 
 
 Summarised statement of cash flows                Audited        Audited 
                                                   results        results 
                                                 12 months   12 months to 
                                                        to 
                                               31 December    31 December 
                                                      2021           2020 
                                                      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 2021 is GBP195 (2020: GBP475). 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 2021 was approved by the Board of Directors on 1 March 2022. The preliminary announcement for the year ended 31 December 2021 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 2021 will be filed with the Registrar of Companies. The results for the year ended 31 December 2021 and 2020 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 2021, 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: Rupert Taylor Rea, Investor Relations Director, Aviva plc, rupert.taylorrea@aviva.com, +44 (0)7385 494 440

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