Aviva 2006 Annual Report Download - page 198

Aviva plc
Annual Report and Accounts 2006 194
Notes to the consolidated financial statements continued
49 – Capital statement
FRS 27 requires us to produce a capital statement which sets out the financial strength of our Group entities and provides an analysis
of the disposition and constraints over the availability of capital to meet risks and regulatory requirements. The capital statement also
provides a reconciliation of shareholders’ funds to regulatory capital.
The analysis below sets out the Group’s available capital resources.
Available capital resources
CGNU CULAC NUL&P Total UK life Other Total
with-profit with-profit with-profit with-profit UK life UK life Overseas life Total life Other 2006 2005
fund fund fund3funds operations operations operations operations operations4Total Total
£m £m £m £m £m £m £m £m £m £m £m
Total shareholders’ funds 35 34 35 104 3,219 3,323 9,546 12,869 1,195 14,064 11,092
Other sources of capital1– – – – 200 200 153 353 2,737 3,090 2,941
Unallocated
divisible surplus 2,211 2,264 2,303 6,778 – 6,778 2,687 9,465 – 9,465 8,978
Adjustments onto
a regulatory basis:
Shareholders’ share of
accrued bonus (79) (87) (564) (730) – (730) – (730) – (730) (700)
Goodwill and
other intangibles ––––(68) (68) (3,549) (3,617) (2,021) (5,638) (3,077)
Regulatory valuation
and admissibility
restrictions2381 268 49 698 (1,438) (740) 453 (287) (459) (746) (1,211)
Total available
capital resources 2,548 2,479 1,823 6,850 1,913 8,763 9,290 18,053 1,452 19,505 18,023
Analysis of liabilities:
Participating
insurance liabilities 9,755 9,116 18,258 37,129 2,853 39,982 23,723 63,705 – 63,705 59,958
Unit-linked liabilities – – – – 6,221 6,221 14,783 21,004 – 21,004 17,999
Other non-participating
life insurance 1,157 1,857 705 3,719 13,557 17,276 24,239 41,515 – 41,515 36,219
Total insurance liabilities 10,912 10,973 18,963 40,848 22,631 63,479 62,745 126,224 – 126,224 114,176
Participating investment
liabilities 2,001 2,413 7,833 12,247 2,817 15,064 34,336 49,400 – 49,400 47,258
Non-participating
investment liabilities 53 18 – 71 22,840 22,911 16,047 38,958 – 38,958 30,051
Total investment liabilities 2,054 2,431 7,833 12,318 25,657 37,975 50,383 88,358 – 88,358 77,309
Total liabilities 12,966 13,404 26,796 53,166 48,288 101,454 113,128 214,582 – 214,582 191,485
1. Other sources of capital include Subordinated debt of £2,937 million issued by Aviva and £153 million of other qualifying capital issued by Dutch, Italian and US subsidiary
undertakings.
2. Including an adjustment for minorities.
3. Includes the Provident Mutual with-profit fund.
4. Other operations include general insurance and fund management business.
The regulatory and valuation admissibility restrictions for 2005 have been changed following a revised application of the technical rules.
This has increased total capital resources by £4.4 billion, all attributable to life operations.
Financial statements continued