Results: 3 months Bob Scott Group Chief Executive

Transcription

1 Results: 3 months 2000 Bob Scott Group Chief Executive 10 May 2000

2 Results highlights Strong first quarter Pre-tax operating profit significantly higher at 396m (including achieved operating life profits) Operating EPS +59% Profitable growth in life and savings Asset management profit 25m +91% General insurance profit 165m +46%

3 Strong growth in life profits Achieved life operating profit 289m ( m) strong new business profit higher longer term investment return assumptions Statutory profits 127m ( m) Achieved life operating profit 289m 181m

4 Life & savings new business Worldwide sales 1.9bn life & pensions sales up 19% (APE +43%) Strong growth in the UK, France and Poland New business value +40% UK margins maintained volume growth in France strong contribution from Polish pensions

5 Growth in distribution power Joint venture to provide life, pensions and investment products to the RBS Acquiring 50% stakes in Royal Scottish A ssurance and NatW est Life Joint venture with Tesco (fully e-enabled with 1.4m finance customers) RBS/NatWest Customer Base Current Account Customers 9.2m Credit Card Customers 7.2m Internet banking Customers 190,000 Share of corporate market c. 33% Number of branches c. 2,000 RBS/NatWest s leading market positions provide good opportunities for growth

6 General insurance General insurance profit 165m +46% good improvement in the UK & US worse in France & Netherlands Weather claims costs 60m ( m)* Longer term investment return 362m ( m) higher investment returns acquisitions UK administration expense ratio 11% ( %) one of the lowest in the UK Distribution deal with Marks & Spencer * analysis in appendix

7 General insurance rates firming in most markets UK rates private motor + 20% commercial motor + 20% liability classes + 8% US rates workers comp +8.5% agri +5.5% total commercial lines +6% Australia rates motor + 6% liability classes + 14%

8 CGNU merger update Strong support from shareholders EU clearance for merger - most regulatory approvals received Bottom up exercise on cost savings - announce with interim results (A ug 2000) Appointments of BU heads completed and good progress on other senior positions Completion of merger expected around end of May 2000 Detailed integration planning underway - implementation from Day 1

9 Summary Pre-tax operating profit 396m ( m) Achieved operating life profit +68% Life and pensions new business +19% New business value +40% Asset management +91% General insurance profit +46% Growth in distribution power Merger on schedule for completion around end of May 2000

10 The online game The established players to win the online game for financial services Competitive advantages over new-comers: Financial muscle Distribution expertise Brand advantage/ Consumer credibility Product manufacturing skills Several initiatives underway in B2C & B2B

11 Wealth management project Both CGU and Norwich Union have significant wealth management projects Projects undergoing executive review Choose best from both More details with the CGNU half-year results First initiative launched today: asserta home

12 Results: 3 months 2000 Bob Scott Group Chief Executive 10 May 2000

13 APPENDIX

14 Adverse weather / catastrophe claims costs 3 months m UK France 9 - USA Canada - 4 Aust & NZ, Other

15 Total premium and investment sales* Life & savings General insurance Italy 8% Other Europe 11% Rest of World 3% North America 40% Rest of W orld 12% UK 30% Netherlands 12% France 22% UK 44% Continental Europe 18% *12 months to

16 General insurance investment mix (economic exposure ) Cash & Deposits 5% Properties 5% Mortgages & Loans 2% Equities 31% Fixed Interest 57%