UNAUDITED RESULTS - 9 MONTHS ENDED 30 SEPTEMBER 2000
Bob Scott, Group Chief Executive, commented:
"The worldwide long-term savings businesses continued to make excellent progress with new business up 14% to Ł9 billion. Life achieved operating profit increased 24% to Ł1,147 million with increased contributions from all our major businesses.
"Our general insurance result from ongoing businesses made good progress, rising to Ł428 million (1999: Ł375 million) with a combined operating ratio of 108%, and we continue to take the necessary steps to improve profitability towards our target combined operating ratio of 102% by the end of 2001.
"We have announced that we have successfully reached agreement for the sale of our US general insurance operations and that we are to withdraw from London Market operations.
"This completes the major elements of the restructuring of our business outlined at the time of the merger to reposition CGNU as a leading European-based financial services group focused on the long-term savings markets and the achievement of superior returns from selected general insurance markets. Whilst this is at considerable cost, this completes the major repositioning of general insurance business which would have any material financial consequence for the Group.
"Integration of our businesses is moving ahead rapidly, following our merger at the end of May. On 2 October our UK life, general and retail fund management businesses were launched under the new Norwich Union brand and, on the same day, our Irish business was integrated under the Hibernian brand. The performance of our ongoing businesses during a period of rapid merger integration demonstrates the strength of these businesses and the quality of our people, placing us in a strong position for future growth."
- Operating profit before tax from ongoing businesses* of Ł1,138 million (1999: Ł1,120 million) (including life achieved profit). On a modified statutory basis, operating profit before tax was Ł898 million (1999: Ł1,014 million)
- Life achieved operating profit up 24%** to Ł1,147 million
- Worldwide long-term savings new business sales up 14%** to Ł9 billion
- General insurance operating profit from ongoing businesses* of Ł428 million (1999: Ł375 million)
- Agreement for the sale of US general insurance business and exit from UK London Market
- Rapid merger integration progress
* Excluding US general insurance and UK London Market result
** At constant rates of exchange