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General Accident Interim Profit Down As Aviva Scraps Preference Shares

2nd Aug 2018 13:38

LONDON (Alliance News) - General Accident PLC on Thursday said its profit declined in the first half of 2018 hurt by goodwill charges.

The car insurance firm said pretax profit declined to GBP61 million in the six months to the end of June compared to GBP69 million reported a year earlier, while investment income remained flat at GBP69 million.

Back in 2005, the company transferred its interest in its subsidiaries to its parent company Aviva PLC, in return for an inter-company loan with Aviva. The company's income is currently generated from interest received on this loan.

During the period, the company said Aviva decided to cancel preference shares and offered a discretionary goodwill payment to shareholders. General Accident took a GBP8 million provision based on its proportion of preference share capital.

Shares in General Accident were untraded on Thursday, last quoted at 132.77 pence each.

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