Aviva 2005 Annual Report Download - page 142

Financial statements continued
Notes to the consolidated financial statements continued
23 – Financial investments continued
(e) Stocklending
The Group has entered into stocklending arrangements in the United Kingdom and overseas during the year in accordance with
established market conventions. In the United Kingdom, investments are lent to locally-domiciled counterparties and governed by
agreements written under English law. Other investments are specifically deposited under local laws in various countries overseas as
security to holders of policies issued there.
Included within financial investments are £461 million (2004: £240 million) of debt securities and other fixed income securities which
have been sold under stock repurchase arrangements. The obligations arising under these arrangements are included in other financial
liabilities (see note 44).
The carrying amounts of financial assets received and pledged as collateral under stocklending arrangements at 31 December 2005
are £1,869 million and £nil million respectively (2004: £3,210 million and £nil respectively).
24 – Receivables and other financial assets
2005 2004
£m £m
Amounts owed by contract holders 1,873 1,949
Amounts owed by intermediaries 1,543 1,711
Deposits with ceding undertakings 1,050 984
Amounts due from reinsurers 820 736
Other financial assets 2,488 2,129
Total 7,774 7,509
Less: Amounts classified as held for sale (68) –
7,706 7,509
Expected to be recovered in less than one year 7,210 7,026
Expected to be recovered in more than one year 496 483
7,706 7,509
Concentrations of credit risk with respect to receivables are limited due to the size and spread of the Group’s trading base. No further
credit risk provision is therefore required in excess of the normal provision for doubtful receivables.
25 – Deferred acquisition costs and other assets
(a) The carrying amount comprises:
General
Long-term insurance Total Total
business and health 2005 2004
£m £m £m £m
Deferred acquisition costs in respect of:
Insurance contracts 1,139 1,281 2,420 2,120
Participating investment contracts 3–395
Non-participating investment contracts 752 – 752 494
1,894 1,281 3,175 2,709
Other assets 393 238 631 480
Total 2,287 1,519 3,806 3,189
Less: Amounts classified as held for sale – (40) (40) –
2,287 1,479 3,766 3,189
Deferred acquisition costs on long-term business are generally recoverable in more than one year whilst such costs on general insurance
and health business are generally recoverable within one year after the balance sheet date.
Aviva plc 2005 Financial statements
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