Aviva 2006 Annual Report Download - page 193

Overview Business review Governance Financial statements Other information
Aviva plc
Annual Report and Accounts 2006 189
43 – Borrowings continued
(v) Securitised mortgage loan notes
Loan notes have been issued by special purpose securitisation companies in the UK and the Netherlands. Details of these securitisations
are given in note 22.
For the Dutch securitised mortgage loan notes carried at amortised cost of £5,233 million (2005: £4,424 million) their fair value is
£5,271 million (2005: £4,508 million),calculated based on the future cash flows discounted back at the market rate of interest.
(c) Movements during the year
Movements in borrowings during the year were:
2006 2005
£m£m
New borrowings drawn down, net of expenses 6,119 5,441
Repayment of borrowings (5,218) (4,585)
Net cash inflow 901 856
Foreign exchange rate movements (183) (170)
Borrowings acquired for non-cash consideration 11 –
Acquisitions 442 173
Fair value movements (52) 62
Amortisation of discounts and other non-cash items 52
Movements in the year 1,124 923
Balance at 1 January 11,013 10,090
Balance at 31 December 12,137 11,013
All movements in fair value in 2006 and 2005 on securitised mortgage loan notes designated as fair value through profit or loss were
attributable to changes in market conditions. These loan notes have external credit ratings which have not changed since the inception
of the loans.
(d) Undrawn borrowings
The Group has the following undrawn committed central borrowing facilities available to it, of which £1,000 million (2005:
£1,000 million) is used to support the commercial paper programme:
2006 2005
£m £m
Expiring within one year 1,180 890
Expiring beyond one year 980 1,360
2,1602,250
44 – Payables and other financial liabilities
2006 2005
£m £m
Payables arising out of direct insurance 1,389 1,639
Payables arising out of reinsurance operations 408 618
Deposits received from reinsurers 1,244 883
Loans from associates –3
Bank overdrafts 696 690
Derivative liabilities 355 526
Bank customer accounts 2,008 2,317
Bank deposits received from other banks 1,013 565
Other financial liabilities 2,122 2,340
Less: Amounts classified as held for sale –(96)
9,235 9,485
Expected to be settled within one year 8,200 7,384
Expected to be settled in morethan one year 1,035 2,101
9,235 9,485
Bank overdrafts arise substantially from unpresented cheques and amount to £266 million (2005: £115 million) in long-term business
operations and £430 million (2005: £575 million) in general business and other operations. Other financial liabilities include the obligation
to repay £722 million (2005: £467 million) received under stock repurchase arrangements entered into in the UK and the Netherlands.