Aviva 2005 Annual Report Download - page 139

22 – Securitised mortgages and related assets continued
All the shares in the Arena companies are held by independent trustee companies. Although DLL and AMS do not own, directly or
indirectly, any of the share capital of the securitisation companies or their parent companies, these companies have been treated as
subsidiaries in the consolidated financial statements. DLL and AMS have no right, nor any obligation, to repurchase the benefit of any
of the securitised mortgage loans, other than in certain circumstances where they are in breach of warranty.
Delta Lloyd companies have purchased notes in the securitisation companies, which have been offset against the borrowings of the
securitisation companies in the consolidated balance sheet.
(c) In all of the above transactions, the Company and its subsidiaries are not obliged to support any losses that may be suffered by the
noteholders and do not intend to provide such support. Additionally, the notes were issued on the basis that noteholders are only entitled
to obtain payment, of both principal and interest, to the extent that the available resources of the respective special purpose securitisation
companies, including funds due from customers in respect of the securitised loans, are sufficient and that noteholders have no recourse
whatsoever to other companies in the Aviva Group.
23 – Financial investments
(a) Financial investments comprise:
2005
At fair value through
profit or loss
Other Available
Trading than trading for sale* Total
£m £m £m £m
Debt securities
UK government – 22,845 – 22,845
Non-UK government 4 22,908 438 23,350
Corporate – UK – 11,492 58 11,550
Corporate – Non-UK 81 31,345 5,237 36,663
Other – 8,834 675 9,509
85 97,424 6,408 103,917
Equity securities
Corporate – UK – 29,036 13 29,049
Corporate – Non-UK 58 21,610 1,327 22,995
58 50,646 1,340 52,044
Other investments
Unit trusts 4 14,419 3 14,426
Derivative financial instruments 1,003 (536) – 467
Deposits with credit institutions – 165 – 165
Specialised investment companies (see note 18c) – 9,783 – 9,783
Minority holdings in property management undertakings (see note 17b) – 499 – 499
Other (6) 1,069 24 1,087
1,001 25,399 27 26,427
Total financial investments 1,144 173,469 7,775 182,388
*The loss related to AFS investments recognised in equity was £65 million (2004: £64 million loss) and the amount recognised in the income statement on disposals was
£154 million (2004: £322 million gain). (See notes 5 and 32).
Of the above total, £19,509 million (2004: £17,794 million) is expected to be recovered more than one year after the balance sheet date.
Financial statements
Aviva plc 2005
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