Aviva 2006 Annual Report Download - page 195

Overview Business review Governance Financial statements Other information
Aviva plc
Annual Report and Accounts 2006 191
46 – Contingent liabilities and other risk factors continued
In August 2004, the Group confirmed its intention to introduce time barring on mortgage endowment complaints, under FSA rules.
The Group now includes details of its endowment policyholders’ time bar position within the annual reprojection mailings. Customers will
be given at least 12 months individual notice before a time bar becomes applicable – double the six months’ notice required by the FSA.
(f) Other
In the course of conducting insurance and investment business, various Group companies receive liability claims, and become involved in
actual or threatened litigation arising therefrom. In the opinion of the directors, adequate provisions have been established for such claims
and no material loss will arise in this respect.
The Company and several of its subsidiaries have guaranteed the overdrafts and borrowings of certain other Group companies. The total
exposure of the Group and Company is £7 million (2005: £7 million) and £109 million (2005: £109 million) respectively but, in the
opinion of the directors, no material loss will arise in respect of these guarantees and indemnities.
In addition, in line with standard business practice, various Group companies have been given guarantees, indemnities and warranties in
connection with disposals in recent years of subsidiaries and associates to parties outside the Aviva Group. In the opinion of the directors,
no material loss will arise in respect of these guarantees, indemnities and warranties.
47 – Commitments
(a) Capital commitments
Contractual commitments for acquisitions or capital expenditures of investment property, property and equipment and intangible assets,
which have not been recognised in the financial statements, are as follows:
2006 2005
£m £m
Investment property 135 10
Property and equipment 152 169
287 179
Contractual obligations for future repairs and maintenance on investment properties are£3 million (2005: £8 million).
The Group has capital commitments to its joint ventures of £nil (2005: £34 million) and to other investment vehicles of £14 million
(2005: £nil).
(b) Operating lease commitments
(i) Future contractual aggregate minimum lease rentals receivable under non-cancellable operating leases are as follows:
2006 2005
£m £m
Within 1 year 12 26
Later than 1 year and not later than 5 years 33 44
Later than 5 years 23 13
68 83
(ii) Future contractual aggregate minimum lease payments under non-cancellable operating leases are as follows:
2006 2005
£m £m
Within 1 year 108 109
Later than 1 year and not later than 5 years 386 393
Later than 5 years 873 914
1,367 1,416
The total of future minimum sublease payments expected to be received under non-cancellable subleases 200 200