CGNU Interim Results 2001-Pt6
CGNU PLC
2 August 2001
PART 6 OF 6
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Page 30
Statistical supplement
Segmental analysis of Group operating profit* at constant currency - achieved
profit basis
6 months
2000
at 2001
6 months exchange 6 months
2001 rates 2000
Ongoing business £m £m £m
Life achieved operating profit
United Kingdom 473 462 462
France 110 127 124
Ireland 37 33 33
Italy 24 11 11
Netherlands (including Belgium and
Luxembourg) 93 77 75
Poland life and pensions 44 52 45
Spain 31 7 7
Other Europe 28 (19) (18)
International 17 14 15
------ ------ ------
857 764 754
====== ====== ======
Health
United Kingdom 4 2 2
France 4 6 6
Netherlands 24 26 26
------ ------ ------
32 34 34
====== ====== ======
Fund management
United Kingdom 5 6 6
France 6 5 5
Netherlands 4 1 1
Other Europe 1 1 1
Australia and New Zealand 5 7 7
United States 3 2 2
------ ------ ------
24 22 22
====== ====== ======
General insurance
United Kingdom 254 196 196
France 34 (122) (120)
Ireland 17 11 11
Netherlands 5 (3) (3)
Other Europe 15 6 8
Australia and New Zealand 26 31 33
Canada 50 46 44
Other 26 26 24
------ ------ ------
427 191 193
====== ====== ======
Non-insurance operations (7) (19) (19)
Corporate costs (81) (97) (97)
Unallocated interest charges
- external (90) (65) (65)
- intra-group (125) (102) (102)
------ ------ ------
1,037 728 720
Wealth management (60) (41) (41)
------ ------ ------
Group operating profit before tax*
- ongoing business 977 687 679
====== ====== ======
* Group operating profit before tax, 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 £606 million to £611 million for the six months to
30 June 2000.
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Page 31
Supplementary analyses
a) New business contribution - including effect of solvency margin
6 months
2000
6 months at 2001 6 months
2001 assumptions* 2000
£m £m £m
United Kingdom 158 123 130
Europe (excluding UK)
France 20 21 25
Ireland 14 10 11
Italy 11 5 5
Netherlands (including Belgium and
Luxembourg) 1 (1) 2
Poland - Life 2 3 2
- Pensions 1 21 17
Spain 19 1 1
Other 2 1 1
International (1) - -
------ ------- ------
227 184 194
====== ====== ======
* 2000 new business contribution has been shown using the application
of 2001 economic assumptions and exchange rates.
b) Non-insurance operations - operating result
6 months 6 months Full year
2001 2000 2000
£m £m £m
United Kingdom
Hill House Hammond 5 7 12
Norwich Union Direct Financial
Services - (5) (7)
Norwich Union Equity Release and
other personal finance subsidiaries (5) (6) (7)
Your Move (10) (27) (39)
Other 2 - (3)
Europe (excluding UK) 1 12 20
------ ------ ------
(7) (19) (24)
====== ====== ======
c) Corporate costs
6 months 6 months Full year
2001 2000 2000
£m £m £m
Staff profit share scheme costs (32) (28) (57)
Other corporate costs (49) (69) (128)
------ ------ ------
(81) (97) (185)
====== ====== ======
d) Wealth management - operating result
6 months 6 months Full year
2001 2000 2000
£m £m £m
United Kingdom
assertahome (10) (10) (23)
Other wealth management (50) (31) (110)
------ ------ ------
(60) (41) (133)
====== ====== ======
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Page 32
Supplementary analyses (continued)
e) General business - investment return information
Actual Longer-term
investment investment
return return
6 6 Full 6 6 Full
months months year months months year
2001 2000 2000 2001 2000 2000
£m £m £m £m £m £m
United Kingdom 255 257 489 323 322 683
Europe
(excluding UK)
France 35 31 52 49 47 93
Ireland 24 21 41 27 24 51
Netherlands 16 13 14 17 18 36
Other * 32 39 53 35 41 75
International
Australia and
New Zealand 30 37 73 34 45 89
Canada 54 53 110 66 62 131
Other * 23 29 61 28 41 75
------ ------ ------ ------ ------ ------
Total longer-term
investment return
- ongoing business 579 600 1,233
Total actual
investment income 469 480 893
Realised gains 43 307 507
Unrealised (losses)/
gains (345) 43 82
------ ------ ------
Total actual
investment return
- ongoing business 167 830 1,482
Businesses discontinued
United States 165 147 483 152 211 417
London Market - 22 45 - 37 55
------ ------ ------ ------ ------ ------
332 999 2,010 731 848 1,705
====== ====== ====== ====== ====== ======
* The actual investment income and longer-term investment return for
Turkey of £5 million and £6 million respectively in the six months to
30 June 2000 has been re-classified from International to Other
Europe, consistent with current and full year disclosure.
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 six months to 30 June 2001
Short-term
Actual Longer-term fluctuation
investment investment in investment
return return returns
£m £m £m
General business 332 731 (399)
Health business 9 42 (33)
------ ------ ------
341 773 (432)
====== ======
Life business (14)
------
Total short-term fluctuation in
investment returns (446)
======
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Page 33
Supplementary analyses (continued)
f) General business information on ongoing business - adverse
weather/catastrophe claims costs
6 months 6 months Full year
2001 2000 2000
£m £m £m
United Kingdom * - - 195
Europe (excluding UK)
France 4 90 95
Ireland - - 4
International
Australia and New Zealand 3 3 4
Canada 5 4 15
Other - 16 18
------ ------ ------
12 113 331
====== ====== ======
* 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 ongoing business 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:
Full
6 months 6 months year
2001 2000 2000
£m £m £m
Disposals
United Kingdom - fund management 3 6 11
Poland - life * - (7) (6)
Other Europe - life * - (3) (10)
Other Europe - general - 1 5
New Zealand - general - 5 10
Other International - life* 3 6 19
Other International - general - (4) 8
Businesses being disposed of
Italy - life * 1 1 2
Other Europe - general (3) (2) (6)
------ ------ ------
4 3 33
====== ====== ======
* 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 £6 million (six months to
30 June 2000: £26 million, full year 2000: £43 million).
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Page 34
General insurance - geographical ratio analysis
Combined
Claims Expense operating
ratio ratio ratio
6 6 6 6 6 6
months months months months months months
2001 2000 2001 2000 2001 2000
% % % % % %
United Kingdom 71.5% 75.3% 10.6% 10.8% 103% 105%
France 72.1% 121.5% 11.8% 13.5% 103% 154%
Ireland 85.0% 85.0% 8.3% 10.5% 104% 107%
Netherlands 64.6% 77.4% 18.4% 11.8% 104% 109%
Australia and
New Zealand 73.9% 74.0% 13.9% 17.6% 103% 105%
Canada 74.7% 74.0% 13.3% 12.2% 104% 104%
------ ------ ------ ------ ------ ------
Group - ongoing
business 71.8% 78.9% 11.9% 12.1% 103% 109%
====== ====== ====== ====== ====== ======
Ratios are measured in local currency.
The total Group ratios are based on average exchange rates applying to the
respective periods.
Definitions:
Claims - Incurred claims expressed as a percentage of net earned
ratio premiums.
Expense - Written expenses excluding commissions expressed as a
ratio percentage of net written premiums.
Commission - Written commissions expressed as a percentage of net
ratio written premiums.
Combined - Aggregate of claims ratio, expense ratio and commission
ratio ratio.
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Page 35
General insurance - class of business analyses
a) United Kingdom - ongoing business
Net Combined
written Underwriting operating
premiums result ratio
6 6 6 6 6 6
months months months months months months
2001 2000 2001 2000 2001 2000
£m £m £m £m % %
Personal
Motor 750 706 (29) (37) 104% 107%
Homeowner 531 618 29 20 95% 97%
Creditor 288 227 14 12 98% 97%
Other 49 54 - (3) 95% 109%
------ ------ ------ ------ ------ ------
1,618 1,605 14 (8) 100% 101%
------ ------ ------ ------ ------ ------
Commercial
Motor 354 365 (34) (56) 107% 116%
Property 297 350 (19) (33) 106% 108%
Liability 117 117 (33) (41) 128% 133%
Other 68 51 3 12 96% 75%
------ ------ ------ ------ ------ ------
836 883 (83) (118) 109% 113%
------ ------ ------ ------ ------ ------
2,454 2,488 (69) (126) 103% 105%
====== ====== ====== ====== ====== ======
During the six months to 30 June 2001, annualised rating increases for
commercial motor have been 20%, with 16% for personal motor and 19% for
commercial liability, while homeowners and commercial property have seen
increases of 4% and 8% respectively.
b) France
Net Combined
written Underwriting operating
premiums result ratio
6 6 6 6 6 6
months months months months months months
2001 2000 2001 2000 2001 2000
Em Em Em Em % %
Motor 232 231 (31) (46) 114% 121%
Property 263 244 11 (215) 91% 207%
Other 132 106 (4) (13) 102% 113%
------ ------ ------ ------ ------ ------
627 581 (24) (274) 103% 154%
====== ====== ======= ====== ====== ======
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Page 36
General insurance - class of business analyses (continued)
c) Netherlands
Net Combined
written Underwriting operating
premiums result ratio
6 6 6 6 6 6
months months months months months months
2001 2000 2001 2000 2001 2000
Em Em Em Em % %
Personal property 17 20 2 (2) 86% 114%
Commercial property 128 97 3 (6) 93% 103%
Motor 139 121 (21) (12) 115% 110%
Liability 35 35 (6) (9) 123% 137%
Inward reinsurance - 4 - (2) - 143%
Other 47 95 3 (4) 90% 103%
------ ------ ------ ------ ------ ------
366 372 (19) (35) 104% 109%
====== ====== ====== ====== ====== ======
d) Canada
Net Combined
written Underwriting operating
premiums result ratio
6 6 6 6 6 6
months months months months months months
2001 2000 2001 2000 2001 2000
C$m C$m C$m C$m % %
Automobile 594 643 (1) (20) 99% 103%
Property 282 311 (31) (27) 113% 109%
Liability 70 80 (13) - 118% 100%
Other 14 14 10 4 66% 70%
------ ------ ------ ------ ------ ------
960 1,048 (35) (43) 104% 104%
====== ====== ====== ====== ====== ======
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Page 37
Assets under management
Long-term General
business business
and Group Group
other
30 30 30 31
June June June December
2001 2001 2001 2000
£m £m £m £m
Financial investments
Shares, other variable
yield securities and units
in unit trusts 40,940 5,016 45,956 50,910
Debt and fixed income securities
at market value 12,897 8,300 21,197 25,273
Debt and fixed income securities
at amortised cost 34,773 - 34,773 35,095
Loans secured by mortgages
and other loans, net of
non-recourse funding 10,990 1,139 12,129 12,311
Deposits with credit
institutions 1,809 1,839 3,648 2,841
------ ------ ------ ------
Total financial investments 101,409 16,294 117,703 126,430
Investments in Group
undertakings and participating
interests 749 284 1,033 992
Land and buildings 8,330 768 9,098 8,826
------ ------ ------ ------
Total investments 110,488 17,346 127,834 136,248
Assets held to cover linked
liabilities 24,843 - 24,843 27,255
Other assets included in the
balance sheet 9,068 19,237 28,305 29,815
------ ------ ------ ------
Total assets included in the
balance sheet 144,399 36,583 180,982 193,318
====== ======
Third party funds under
management:
Unit trusts, Oeics, Peps
and Isas 4,524 5,295
Segregated funds 18,961 21,302
------ ------
Total assets under management 204,467 219,915
====== ======
General insurance and other investments mix
Total
30
United Continental June
Kingdom Europe International 2001
£m £m £m £m
Shares, other variable yield
securities and units
in unit trusts 2,356 1,991 669 5,016
Debt and fixed income
securities at market value 3,387 2,634 2,279 8,300
Land & buildings 277 447 44 768
Other 2,345 605 312 3,262
------ ------ ------ ------
Total Investments 8,365 5,677 3,304 17,346
====== ====== ====== ======
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Page 38
Shareholder information
Financial calendar 2001/2002
Ex-dividend date for 2001 interim dividend 26 September 2001
Record date for 2001 interim dividend 28 September 2001
Payment of interim 2001 dividend 15 November 2001
Announcement of long-term savings new
business for 9 months to 30 September 25 October 2001
Preliminary announcement of 2001 results 27 February 2002
Dividend reinvestment plan
Shareholders are offered the opportunity to participate in the Company's
Dividend Reinvestment Plan (the 'Plan') which enables dividends to be
reinvested in the Company's shares at reduced dealing costs.
Shareholders who have previously elected to join the Plan need take no further
action as their cash dividend will automatically be used to purchase CGNU's
shares, on or around the dividend payment date, in accordance with the terms
of the Plan.
Shareholders who have not already joined the Plan and wish to do so should
contact the Company's Registrar, at the address below, in order to obtain full
details and a mandate form. Completed mandate forms must be returned to the
Registrar by no later than 26 October 2001 in order to participate in the Plan
for the 2001 interim dividend.
The Plan is available to ordinary shareholders, members of the CGNU Share
Account and members of the Group's employee profit sharing schemes.
Interim report and accounts
In an effort to minimise waste and eliminate unnecessary cost, the Company has
decided not to mail interim reports automatically to all shareholders each
year. However, shareholders who would like a copy of the report, now and in
future years, should contact the Company's Registrar at the address below.
Shareholder enquiries
Shareholders who have any administrative enquiries about their shareholding in
CGNU plc should contact the Company's Registrar:
Lloyds TSB Registrars
The Causeway
Worthing
West Sussex
BN99 6DA
0870 600 3952
Internet addresses
There are various internet sites within the Group, most of which inter-link to
enable quick reference direct to specific sites. Principal UK internet sites
are as follows:
CGNU Group www.cgnu-group.com
UK long-term savings and general insurance www.norwichunion.co.uk
Fund management www.morleyfm.com
Wealth management www.norwichunion.com
Buying a home www.your-move.co.uk
www.assertahome.com
CGNU plc
Registered in England no: 2468686
Registered Office: St Helen's, 1 Undershaft, London EC3P 3DQ
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