Aviva 2005 Annual Report Download - page 210

Financial statements continued
Alternative method of reporting long-term business continued
New business contribution continued
New business contribution before the effect of required capital includes minority interests in 2005 of £156 million (2004: £121 million).
This comprises minority interests in France of £19 million (2004: £7 million), Italy £35 million (2004: £27 million), Netherlands £10 million
(2004: £10 million), Poland £2 million, (2004: £2 million), Spain £89 million (2004: £75 million) and Other Europe £1 million (2004: nil).
New business New business
Present value of new contribution after the margin after the
business premiums effect of required capital effect of required capital1
2005 2004 2005 2004 2005 2004
£m £m £m £m % %
Life and pensions
United Kingdom 9,053 9,172 213 215 2.4% 2.3%
France 3,530 2,782 91 54 2.6% 1.9%
Ireland 665 561 13 16 2.0% 2.9%
Italy 2,294 1,799 36 34 1.6% 1.9%
Netherlands (including Belgium and Luxembourg) 2,407 2,168 57 43 2.4% 2.0%
Poland 285 241 13 94.6% 3.7%
Spain 2,013 2,110 155 121 7.7% 5.7%
Other Europe 739 804 2–0.3% –
Continental Europe 11,933 10,465 367 277 3.1% 2.6%
International 1,260 1,024 32 24 2.5% 2.3%
Total (after the effect of required capital) 22,246 20,661 612 516 2.8% 2.5%
1. New business margin represents the ratio of new business contribution after deducting the effect of required capital to PVNBP, expressed as a percentage.
2. The reduction in the level of required capital in respect of UK annuities from 200% to 150% of the EU minimum has increased the 2005 amount by £13 million (2004 has
not been restated).
New business contribution after the effect of required capital includes minority interests in 2005 of £120 million (2004: £94 million).
This comprises minority interests in France of £10 million (2004: £1 million), Italy £21 million (2004: £19 million), Netherlands
£7 million (2004: £8 million), Poland £2 million (2004: £2 million), Spain £79 million (2004: £64 million) and Other Europe £1 million
(2004: nil).
EEV basis – new business contribution before the effect of required capital, tax and minority interest
Present value of new
Annual premium equivalent business premiums New business contribution1New business margin2
2005 2004 2005 2004 2005 2004 2005 2004
£m £m £m £m £m £m % %
Analysed between:
– Bancassurance channels 710 587 6,075 4,976 311 242 5.1% 4.9%
– Other distribution channels 2,035 2,011 16,171 15,685 497 464 3.1% 3.0%
Total 2,745 2,598 22,246 20,661 808 706 3.6% 3.4%
1. Stated before the effect of required capital.
2. New business margin represents the ratio of new business contribution before the effect of required capital to PVNBP, expressed as a percentage.
EEV basis – new business contribution after the effect of required capital, tax and minority interest
Present value of new
Annual premium equivalent business premiums1New business contribution2New business margin3
2005 2004 2005 2004 2005 2004 2005 2004
£m £m £m £m £m £m % %
Analysed between:
– Bancassurance channels 387 328 3,238 2,728 93 74 2.9% 2.7%
– Other distribution channels 1,997 1,978 15,815 15,353 248 223 1.6% 1.5%
Total 2,384 2,306 19,053 18,081 341 297 1.8% 1.6%
1. Stated after deducting minority interests.
2. Contribution stated after deducting the effect of required capital, tax and minority interests.
3. New business margin represents the ratio of new business contribution after deducting the effect of required capital, tax and minority interests to PVNBP after deducting the
minority interests, expressed as a percentage.
Aviva plc 2005 Financial statements
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