Aviva 2005 Annual Report Download - page 2

We have a balanced portfolio that benefits from diversification of distribution,
products and geography.
We continue to focus on managing the business to create value for shareholders
and customers.
We have delivered another strong performance from our international long-term
savings businesses.
Bancassurance goes from strength to strength, with total sales up 22%.
The acquisition of RAC has created a powerful new force in insurance
and motoring services.
Commitment to new combined operating ratio target of 98% demonstrates our
confidence in sustaining our excellent general insurance results.
Overview
2The Aviva group at a glance
4Chairman’s statement
6Group chief executive’s review
8Business segment
8Long-term savings and fund management
10 General insurance and health
12 A responsible company and employer
12 Corporate social responsibility
13 Employees
Business review
16 Group overview
16 Basis of preparation
17 Strategy and values
18 Financial position and performance
24 Business segment performance
24 Long-term savings and fund management
32 General insurance, health and related services
38 Other corporate information
38 Group capital structure
39 Group capital strength and solvency
42 Corporate social responsibility
44 Employees
46 Financial reporting
47 Risk and risk management
Governance
52 Board of directors
54 Directors’ report
57 Corporate governance
62 Audit committee report
64 Nomination committee report
65 Directors’ remuneration report
75 Independent auditors’ report
Financial statements
78 Accounting policies
87 Consolidated income statement
88 Pro forma reconciliation of Group operating profit
to profit before tax
90 Consolidated balance sheet
91 Consolidated statement of recognised income
and expense
91 Reconciliation of movements in consolidated
shareholders’ equity
92 Consolidated cash flow statement
93 Notes to the consolidated financial statements
190 Financial statements of the Company
199 Independent auditors’ report to the directors of
Aviva plc on the alternative method of reporting
long-term business profits
200 Alternative method of reporting long-term business
222 Aviva Group of companies
223 Shareholder services
Aviva is the world’s sixth-largest insurance
group and the largest insurance services
provider in the UK. We are one of the
leading providers of life and pension
products in Europe and are actively growing
our long-term savings businesses in Asian
markets, Australia and the USA. Our main
activities are long-term savings, fund
management and general insurance.
We have premium income and investment
sales of £35.0 billion and £317 billion of
assets under management. We have more
than 54,000 employees serving millions
of customers.
* On an IFRS basis.
**From continuing operations, including long-term savings result on a European Embedded Value (EEV)
basis before amortisation of goodwill.
† Return based on opening equity shareholders’ funds on an EEV basis.
‡ From continuing operations, including share of associates’ premiums.
≠On an EEV basis.
Strengths and highlights