2001 Full year results-Part 5

CGNU PLC 27 February 2002 PART 5 OF 6 -------------------------------------------------------------------- Page 31 Statistical supplement Segmental analysis of Group operating profit* at constant currency - achieved profit basis 2000 at 2001 exchange 2001 rates 2000 Continuing operations Â£m Â£m Â£m Life achieved operating profit United Kingdom 859 938 938 France 227 208 204 Ireland 79 69 68 Italy 55 30 29 Netherlands (including Belgium and Luxembourg) 221 183 179 Poland life and pensions 99 106 95 Spain 80 43 42 Other Europe 18 (17) (15) International 36 28 29 ------ ------ ------ 1,674 1,588 1,569 ====== ====== ====== Health United Kingdom 8 6 6 France 9 12 12 Netherlands 53 51 50 ------ ------ ------ 70 69 68 ====== ====== ====== Fund management United Kingdom (4) 16 16 France 12 10 9 Netherlands 8 13 13 Other Europe 2 2 2 Australia and New Zealand 7 15 16 International 4 6 5 ------ ------ ------ 29 62 61 ====== ====== ====== General insurance United Kingdom 590 296 296 France 58 (116) (115) Ireland 48 21 21 Netherlands 19 (4) (4) Other Europe 41 18 20 Australia and New Zealand 69 78 82 Canada 72 79 78 Other 48 33 34 ------ ------ ------ 945 405 412 ====== ====== ====== Non-insurance operations (2) (25) (24) Corporate costs (187) (186) (185) Unallocated interest charges - external (179) (151) (151) - intra-group (247) (210) (210) ------ ------ ------ 2,103 1,552 1,540 Wealth management (99) (133) (133) ------ ------ ------ Group operating profit before tax* - continuing operations 2,004 1,419 1,407 ====== ====== ====== * Group operating profit before tax from continuing operations, before amortisation of goodwill and exceptional items Restating 2000 modified statutory life profits to account for the impact of exchange rate movements in 2001 would result in modified statutory life profits increasing from Â£1,190 million to Â£1,204 million for the year to 31 December 2000. -------------------------------------------------------------------- Page 32 Supplementary analyses (a) New business contribution - including effect of solvency margin 2000 at 2001 2001 assumptions* 2000 Â£m Â£m Â£m United Kingdom 315 269 283 Europe (excluding UK) France 44 32 38 Ireland 29 18 20 Italy 21 16 16 Netherlands (including Belgium and Luxembourg) 11 (8) (1) Poland - Life 5 3 3 - Pensions 2 22 22 Spain 50 15 15 Other (4) (1) (1) International 6 (3) (3) ------ ------ ------ 479 363 392 ====== ====== ====== * 2000 new business contribution has been shown using the application of 2001 economic assumptions. (b) Non-insurance operations - operating result 2001 2000 Â£m Â£m United Kingdom Hill House Hammond 4 12 Norwich Union Direct Financial Services - (7) Norwich Union Equity Release and other personal finance subsidiaries (3) (7) Your Move (17) (39) Other 3 (3) Europe (excluding UK) 11 20 ------ ------ (2) (24) ====== ====== The operating result of the equity release business sold in the UK is included within the non-insurance results on a statutory basis. On an achieved profit methodology new business contribution was Â£12 million before tax and operating profit Â£15 million before tax, which is excluded from our results. (c) Corporate costs 2001 2000 Â£m Â£m Groupwide Staff profit share and other incentive plans (78) (57) Other corporate costs (109) (128) ------ ------ (187) (185) ====== ====== (d) Wealth management - operating result 2001 2000 Â£m Â£m United Kingdom assertahome (18) (23) Other wealth management (81) (110) ------ ------ (99) (133) ====== ====== --------------------------------------------------------------------- Page 33 Supplementary analyses (continued) General business - investment return information Actual Longer-term investment investment return return 2001 2000 2001 2000 Â£m Â£m Â£m Â£m United Kingdom 512 489 671 683 Europe (excluding UK) France 62 52 91 93 Ireland 49 41 55 51 Netherlands 34 14 33 36 Other 50 53 66 75 International Australia and New Zealand 55 73 70 89 Canada 105 110 128 131 Other 48 61 55 75 ------ ------ ------ ------ Total longer-term investment return - continuing operations 1,169 1,233 Total actual investment income 915 893 Realised gains 300 507 Unrealised (losses)/ gains (904) 82 ------ ------ Total actual investment return - continuing operations 311 1,482 Discontinued operations United States 165 483 152 417 London Market - 45 - 55 ------ ------ ------ ------ 476 2,010 1,321 1,705 ====== ====== ====== ====== Reconciliation between general business investment return information and short-term fluctuation in investment returns incorporated in the summarised consolidated profit and loss account - modified statutory basis. For the year to 31 December 2001 Short-term fluctuation Actual Longer-term in investment investment investment return return returns Â£m Â£m Â£m General business 476 1,321 (845) Health business (24) 83 (107) ------ ------ ------ 452 1,404 (952) ------ ------ Life business (36) ------ Total short-term fluctuation in investment returns (988) ====== --------------------------------------------------------------------- Page 34 Supplementary analyses (continued) (f) General business information on continuing operations - adverse weather/catastrophe claims costs 2001 2000 Â£m Â£m United Kingdom * - 195 Europe (excluding UK) France 4 95 Ireland - 4 International Australia and New Zealand 7 4 Canada 6 15 Other - 18 ------ ------ 17 331 ====== ====== * Adverse weather/catastrophe claims costs are the costs above the 10-year average weather pattern. (g) Disposals - impact on operating profit The Group's operating profit in 2001 and 2000 from continuing operations excludes the result from the United States general insurance business and London Market operations. All other disposals and businesses in the process of being sold are not considered sufficiently material to merit separate disclosure in the Group results or do not meet the Financial Reporting Standard 3, 'Reporting Financial Performance', definition of discontinued business. A summary of the contribution to the Group's operating profit from these operations is as follows: 2001 2000 Â£m Â£m Disposals United Kingdom - fund management 3 11 Italy - life 1 2 Poland - life * - (6) Other Europe - life * - (10) Other International - life * 3 19 Other Europe - general - (2) New Zealand - general - 10 Other International - general 2 14 Other International - non-insurance 3 4 ------ ------ 12 42 ====== ====== * Impact on operating profit is stated on an achieved profit basis. The longer-term investment return component of the general insurance business results included in the table above was Â£10 million (full year 2000: Â£52 million). -------------------------------------------------------------------- Page 35 Supplementary analyses (continued) (h) Pension schemes FRS17 'Retirement benefits' was issued in November 2000 but will not be mandatory for the Group and the Company until the year ended 31 December 2003. Prior to this, phased transitional disclosures are introduced and the table below is an extract from these disclosures. FRS17 differs from the existing accounting standard for pension costs (SSAP24) in a number of ways, principally the choice of assumptions, and that the difference between the market value of assets and the liabilities is immediately recognised in the balance sheet under FRS17, whereas changes in assets and liabilities are recognised on a smoothed basis under SSAP24. The effect on the Group net assets and retained profits at 31 December 2001 of substituting the above FRS17 figures for the corresponding SSAP24 balance sheet would be as follows: Net assets Â£m Total included in the Group accounts 12,523 Less: pension asset/liability on a SSAP24 basis (143) ------ Total excluding pension asset/liability 12,380 Add: pension asset/liability on FRS17 basis 233 ------ Total including pension asset/liability 12,613 ====== -------------------------------------------------------------------- Page 36 General insurance - geographical ratio analysis Combined Claims Expense operating ratio ratio ratio 2001 2000 2001 2000 2001 2000 % % % % % % United Kingdom 71.7% 77.9% 10.5% 10.7% 102% 108% France 71.5% 97.4% 13.1% 15.7% 104% 133% Ireland 81.3% 88.0% 9.9% 8.9% 101% 109% Netherlands 65.7% 73.4% 19.0% 18.2% 104% 108% Australia and New Zealand 69.7% 70.9% 14.2% 17.8% 99% 101% Canada 78.1% 76.5% 12.9% 11.8% 107% 106% ------ ------ ------ ------ ------ ------ Group - continuing operations 72.2% 78.6% 12.0% 12.6% 102% 109% ====== ====== ====== ====== ====== ====== Ratios are measured in local currency. The total Group ratios are based on average exchange rates applying to the respective periods. Definitions: Claims ratio - Incurred claims expressed as a percentage of net earned premiums. Expense ratio - Written expenses excluding commissions expressed as a percentage of net written premiums. Commission ratio - Written commissions expressed as a percentage of net written premiums. Combined ratio - Aggregate of claims ratio, expense ratio and commission ratio. -------------------------------------------------------------------- Page 37 General insurance - class of business analyses (a) United Kingdom - continuing operations Net Combined written Underwriting operating premiums result ratio 2001 2000 2001 2000 2001 2000 Â£m Â£m Â£m Â£m % % Personal Motor 1,442 1,437 (40) (70) 103% 106% Homeowner 1,037 1,228 72 (48) 94% 104% Creditor 508 508 21 17 94% 96% Other 89 108 (2) (3) 100% 97% ------ ------ ------ ------ ------ ------ 3,076 3,281 51 (104) 98% 104% ------ ------ ------ ------ ------ ------ Commercial Motor 680 686 (44) (90) 105% 113% Property 579 636 (26) (136) 104% 120% Liability 242 223 (64) (73) 126% 131% Other 200 111 2 16 100% 85% ------ ------ ------ ------ ------ ------ 1,701 1,656 (132) (283) 108% 116% ------ ------ ------ ------ ------ ------ Â£m 4,777 4,937 (81) (387) 102% 108% ====== ====== ====== ====== ====== ====== During the year to 31 December 2001, annualised rating increases for commercial motor have been 18%, with 13% for personal motor and 23% for commercial liability, while homeowners and commercial property have seen increases of 6% and 11% respectively. (b) France Net Combined written Underwriting operating premiums result ratio 2001 2000 2001 2000 2001 2000 Em Em Em Em % % Motor 409 416 (26) (93) 106% 122% Property 475 447 9 (213) 98% 147% Other 245 187 (36) (35) 114% 119% ------ ------ ------ ------ ------ ------ Em 1,129 1,050 (53) (341) 104% 133% ====== ====== ====== ====== ====== ====== Â£m 700 640 (33) (208) 104% 133% ====== ====== ====== ====== ====== ====== -------------------------------------------------------------------- Page 38 General insurance - class of business analyses (continued) (c) Netherlands Net Combined written Underwriting operating premiums result ratio 2001 2000 2001 2000 2001 2000 Em Em Em Em % % Personal property 23 28 2 1 91% 93% Commercial property 225 316 15 (1) 96% 100% Motor 264 258 (34) (36) 113% 114% Liability 47 46 (8) (19) 119% 142% Inward reinsurance - 9 - (3) - 135% Other 65 106 2 (8) 93% 105% ------ ------ ------ ------ ------ ------ Em 624 763 (23) (66) 104% 108% ------ ------ ------ ------ ------ ------ Â£m 387 465 (14) (40) 104% 108% ====== ====== ====== ====== ====== ====== (d) Canada Net Combined written Underwriting operating premiums result ratio 2001 2000 2001 2000 2001 2000 C$m C$m C$m C$m % % Automobile 1,175 1,272 (43) (68) 104% 105% Property 591 655 (28) (38) 105% 107% Liability 163 162 (60) (20) 137% 115% Other 28 27 7 7 72% 69% ------ ------ ------ ------ ------ ------ C$m 1,957 2,116 (124) (119) 107% 106% ------ ------ ------ ------ ------ ------ Â£m 878 940 (56) (53) 107% 106% ====== ====== ====== ====== ====== ====== -------------------------------------------------------------------- Page 39 Assets under management General Long-term Business Business and other Group Group 31 Dec 31 Dec 31 Dec 31 Dec 2001 2001 2001 2000 Â£m Â£m Â£m Â£m Financial investments Shares, other variable yield securities and units in unit trusts 34,947 2,791 37,738 46,821 Strategic investments 2,472 1,377 3,849 4,089 Debt and fixed income securities at market value 20,353 9,288 29,641 25,273 Debt and fixed income securities at amortised cost 34,129 - 34,129 35,095 Loans secured by mortgages and other loans, net of non-recourse funding 11,291 1,236 12,527 12,311 Deposits with credit institutions 803 1,346 2,149 2,988 ------ ------ ------ ------ Total financial investments 103,995 16,038 120,033 126,577 Investments in Group undertakings and participating interests 795 282 1,077 992 Land and buildings 8,184 857 9,041 8,826 ------ ------ ------ ------ Total investments 112,974 17,177 130,151 136,395 Assets held to cover linked liabilities 28,704 - 28,704 27,255 Other assets included in the balance sheet 9,325 20,054 29,379 29,668 ------ ------ ------ ------ Total assets included in the balance sheet 151,003 37,231 188,234 193,318 ------ ------ ------ ------ Third party funds under management: Unit trusts, Oeics, Peps and Isas 4,677 5,295 Segregated funds 15,998 21,302 ------ ------ Total assets under management 208,909 219,915 ====== ====== Strategic investments include the market value of the Group's share of Societe Generale, Munchener Ruckversicherungs-Gesellschaft, and The Royal Bank of Scotland Group. General insurance and other investments mix Total United Continental 31 Dec Kingdom Europe International 2001 Â£m Â£m Â£m Â£m Shares, other variable yield securities and units in unit trusts 2,045 1,454 669 4,168 Debt and fixed income securities at market value 4,509 2,643 2,136 9,288 Land and buildings 292 496 69 857 Other 1,869 585 410 2,864 ------ ------ ------ ------ Total Investments 8,715 5,178 3,284 17,177 ====== ====== ====== ====== -------------------------------------------------------------------- This information is provided by RNS The company news service from the London Stock Exchange MORE TO FOLLOW FR FGGZZVVZGZZM

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