Aviva 2005 Annual Report Download - page 114

Financial statements continued
Notes to the consolidated financial statements continued
4 – Segmental information continued
(ii) Segmental results – business segments
General
Long-term Fund insurance
business management and health Other Total
For the year ended 31 December 2005 £m £m £m £m £m
Gross written premiums 15,282 – 11,017 – 26,299
Premiums ceded to reinsurers (611) – (706) – (1,317)
Net written premiums 14,671 – 10,311 – 24,982
Change in unearned premium reserve – – (123) – (123)
Net earned premiums 14,671 – 10,188 – 24,859
Fee and commission income 598 264 214 771 1,847
15,269 264 10,402 771 26,706
Net investment income 21,985 11 1,603 123 23,722
Inter-segment revenue – 112 – – 112
Other income (10) – 41 122 153
Segment income 37,244 387 12,046 1,016 50,693
Claims and benefits paid, net of recoveries from reinsurers (13,482) – (6,224) – (19,706)
Change in insurance liabilities, net of reinsurance (10,004) – (372) – (10,376)
Change in investment contract provisions (7,814) – – – (7,814)
Change in unallocated divisible surplus (1,474) – – – (1,474)
Fee and commission expense (1,481) (55) (2,752) (38) (4,326)
Other operating expenses
Depreciation (11) (6) (17) (78) (112)
Amortisation of acquired value of in force business (45) – – – (45)
Amortisation of intangible assets (18) – (5) (16) (39)
Net impairment of acquired value of in force business (28) – – – (28)
Net impairment of intangible assets (6) – – – (6)
Impairment of goodwill (14) – – (29) (43)
Other net impairment losses recognised in the income statement (37) – – – (37)
Inter-segment expenses (103) – (9) – (112)
Other expenses (999) (233) (615) (1,027) (2,874)
Finance costs (203) – (58) (100) (361)
Segment expenses (35,719) (294) (10,052) (1,288) (47,353)
Segment result before share of profit/(loss) of joint ventures and associates 1,525 93 1,994 (272) 3,340
Share of profit/(loss) of joint ventures and associates 340 (1) 1 18 358
Segment result before tax 1,865 92 1,995 (254) 3,698
Unallocated costs
Finance costs on central borrowings (see below) (248)
Tax attributable to policyholders’ returns (922)
Tax attributable to shareholders’ profits (630)
Profit for the year 1,898
Finance costs on central borrowing comprise interest payable on borrowings by holding companies within the Group which is not
allocated to operating companies.
Impairment losses, and reversal of such losses, recognised directly in equity were £nil and £124 million respectively in long-term business.
Aviva plc 2005 Financial statements
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