Aviva 2005 Annual Report Download - page 200

198 Financial statements continued
Financial statements of the Company
Notes to the company financial statements continued
H – Contingent liabilities
Details of the Company’s contingent liabilities are given in note 46(f).
I – Risk management policies
The business of the Company is managing its investments in subsidiary operations. Its risks are considered to be the same as those in the
operations themselves and full details of the risk management policies are given in note 50.
J – Related party transactions
The Company receives dividend and interest income from subsidiaries and pays interest to those subsidiaries in the normal course of
business. These activities are reflected in the table below.
Loans to and from subsidiaries, associates and joint ventures are made on normal arm’s length commercial terms. The maturity analysis of
the related party loans is as follows:
Contractual repricing or maturity dates
Denominated Within 1 – 2 2 – 3 3 – 4 4 – 5 Over 5 Effective
currency 1 year years years years years years Total interest
Payables £m £m £m £m £m £m £m rate %
2005 £/b1,121 120 1,697 202 – 1,495 4,635 5.12%
2004 £/a949 177 124 527 202 1,495 3,474 4.89%
Receivables
2005 £/b869 75 420 210 – 2,907 4,481 4.55%
2004 £/a1,060 65 – 583 188 2,882 4,778 4.71%
Other related party balances comprise dividend and interest receivable and payable, as well as inter-company balances for transactions
in the normal course of business.
Services provided to related parties
Income earned Receivable at Income earned Receivable
in year year end in year at year end
2005 2005 2004 2004
£m £m £m £m
Subsidiaries 1,925 4,481 563 4,778
The related parties’ receivables are not secured and no guarantees were received in respect thereof. The receivables will be settled in
accordance with normal credit terms. Details of guarantees, indemnities and warranties given by the Company on behalf of related
parties are given in note 46(f).
Services provided by related parties
Expense incurred Payable at Expense incurred Payable at
in year year end in year year end
2005 2005 2004 2004
£m £m £m £m
Subsidiaries 238 5,336 184 4,767
The related parties’ payables are not secured and no guarantees were received in respect thereof. The payables will be settled in
accordance with normal credit terms.
The directors and key management of the Company are considered to be the same as for the Group. Information on both the Company
and Group key management compensation may be found in note 53.
Aviva plc 2005 Financial statements