Aviva 2006 Annual Report Download - page 152
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Aviva plc
Annual Report and Accounts 2006 148
Notes to the consolidated financial statements continued
18 – Investments in associates continued
(b) The principal associates included above are:
Type of Proportion Country of incorporation
Company business Class of share held and operation
Aviva Life Insurance Company India Pvt. Limited Insurance Ordinary Rs1 shares 26.0% India
RBSG Collective Investments Limited Investment Ordinary £1 shares 49.99% Great Britain
RBS Life Investments Limited Insurance Ordinary £1 shares 49.99% Great Britain
The British Aviation Insurance Company Limited Insurance Ordinary £1 shares 38.1% Great Britain
All investments in principal associates are unlisted and are held by subsidiaries.
In July 2006, our French operation, Aviva France, sold its holding in ProCapital SA, an online brokerage company, to Credit Mutuel for
£98 million. The sale resulted in a profit on disposal of £79 million (see note 3b).
(c) Additional information
Summarised aggregate financial information on the Group’s interests in its associates is as follows:
2006 2005
£m £m
Share of revenues 427 277
Shareof results beforetax 48 39
Share of assets 3,111 2,897
Share of liabilities (2,498) (2,275)
Share of net assets 613 622
The associates have no significant contingent liabilities to which the Group is exposed, nor has the Group any significant contingent
liabilities in relation to its interest in the associates.
(d) Impairment testing
The Group’s investments in RBS Life Investments Limited and RBSG Collective Investments Limited have been tested for impairment by
comparing their carrying values (which include goodwill which arose on their acquisition) with their recoverable amounts. The recoverable
amounts for both the investments have been determined based on value in use calculations. The calculations use cash flow projections
based on business plans approved by management covering a five year period and a risk adjusted discount rate of 6.8%. Cash flows
beyond that five year period have been extrapolated using a growth rate of 4.5%.The recoverable amounts significantly exceed the
carrying values of both the investments and a reasonably possible change to the key underlying assumptions will not cause the carrying
values of the investments to exceed their recoverable amounts.
Financial statements continued