Aviva 2013 Annual Report Download - page 139

Strategic report Governance IFRS Financial statements Other information
Aviva plc
Annual report and accounts 2013
137
Notes to the consolidated financial statements continued
4 – Subsidiaries continued
(c) Assets and liabilities of operations classified as held for sale
The assets and liabilities of operations classified as held for sale as at 31 December 2013 are as follows:
2013 2012
Total
£m
US Life
£m
Other
£m
Total
£m
Assets
Goodwill 4 — 183 183
Acquired value of in-force business and intangible assets — 408 83 491
Interests in, and loans to, joint ventures and associates 29 — 126 126
Property and equipment — — 2 2
Investment property — 6 12 18
Loans — 3,397 — 3,397
Financial investments 2,675 31,212 5,203 36,415
Reinsurance assets 37 644 239 883
Deferred acquisition costs 6 1,468 70 1,538
Other assets 196 769 97 866
Cash and cash equivalents 351 544 373 917
3,298 38,448 6,388 44,836
Additional impairment to write down the disposal group to fair value less costs to sell (185) (2,233) — (2,233)
Total assets 3,113 36,215 6,388 42,603
Liabilities
Insurance liabilities (238) (31,153) (3,294) (34,447)
Liability for investment contracts (2,710) (2,197) (1,857) (4,054)
Unallocated divisible surplus 4 — (55) (55)
Provisions (3) (184) (3) (187)
Deferred tax liabilities (1) (672) (8) (680)
Current tax liabilities — — — —
External borrowings (29) (145) — (145)
Other liabilities (46) (1,497) (346) (1,843)
Total liabilities (3,023) (35,848) (5,563) (41,411)
Net assets 90 367 825 1,192
(i) Eurovita
In the first half of 2013, the Italian long-term business Eurovita Assicurazioni S.p.A (“Eurovita”) was classified as held for sale, as
a result of management determining that the value of this business will principally be recovered through sale. Finoa Srl (“Finoa”),
an Italian holding company in which Aviva owns a 50% share, owns a 77.55% share of Eurovita. During November 2013, the sale
of Finoa’s stake in Eurovita was announced subject to regulatory approval.
Following classification as held for sale, Eurovita was re-measured at fair value based on the expected sales price less costs to
sell of £39 million. As a result, a remeasurement loss of £178 million has been recognised within “Profit on the disposal and re-
measurement of subsidiaries, joint ventures and associates” in the income statement. Aviva’s share of this loss is £74 million, and
its share of the investment is £10 million.
Eurovita’s results continue to be consolidated. On completion of the disposal the currency translation reserves relating to
Eurovita, currently recognised in equity, will be recycled to the income statement.
(ii) Other businesses
Also classified as held for sale at 31 December 2013 are operations in Indonesia, South Korea, the general insurance business in
Turkey, Taiwan and other small operations.
 In Indonesia management decided to restructure existing operations and establish a new joint venture. As Aviva’s holding will
change from a 60% controlling interest to a 50% joint venture the investment is classified as held for sale at 31 December
2013. Net assets are £17 million at 31 December 2013. On 17 January 2014, Aviva and PT Astra International Tbk signed an
agreement to form Astra Aviva Life, a 50-50 joint venture to sell and distribute life insurance products in Indonesia.
 Management determined that the value of our long-term business joint venture in South Korea, in which the group has a 47%
share, will be principally recovered through sale. The sale is expected to complete in 2014 with an expected sales price of
£41 million. As a result, the business has been classified as held for sale and remeasured at fair value of £19 million based on
Aviva’s share of the expected sales price less costs to sell. As a result, a re-measurement loss of £20 million was recognised at
31 December 2013.
 Management committed to sell the Turkey general insurance business with completion of the sale expected in 2014. As a
result, the business was classified as held for sale as of 31 December 2013 and remeasured at fair value based on the expected
sales price less costs to sell of £2 million resulting in a remeasurement loss of £9 million.
 Refer to note 19 for details on the joint venture in Taiwan.
Significant restrictions
In certain jurisdictions the ability of subsidiaries to transfer funds to the Group in the form of cash dividends or to repay loans and
advances is subject to local corporate or insurance laws and regulations and solvency requirements. We do not believe that these
requirements constitute a material limitation on the ability of the subsidiaries to transfer funds to the Group. There are no
protective rights of non-controlling interests which significantly restrict the Group’s ability to access or use the assets and settle the
liabilities of the Group.