Aviva 2013 Annual Report Download - page 140

Aviva plc
Annual report and accounts 2013
138
Notes to the consolidated financial statements continued
5 – Segmental information
The Group’s results can be segmented, either by activity or by geography. Our primary reporting format is on market reporting
lines, with supplementary information being given by business activity. This note provides segmental information on the
consolidated income statement and consolidated statement of financial position.
The Group has determined its operating segments along market reporting lines. These reflect the management structure
whereby a member of the Executive Management team is accountable to the Group CEO for the operating segment for which
they are responsible.
Following announcements in the first quarter of 2013 relating to modifications to its management structure, the Group’s
operating segments were changed to align them with the revised organisational reporting structure. These segments are set out
below. Results for prior periods have been restated to facilitate comparison.
United Kingdom & Ireland
The United Kingdom and Ireland comprises two operating segments – Life and General Insurance. The principal activities of our UK
and Ireland Life operations are life insurance, long-term health (in the UK) and accident insurance, savings, pensions and annuity
business, whilst UK and Ireland General Insurance provides insurance cover to individuals and businesses, for risks associated mainly
with motor vehicles, property and liability (such as employers’ liability and professional indemnity liability) and medical expenses.
UK & Ireland General Insurance includes the results of our Ireland Health business.
France
The principal activities of our French operations are long-term business and general insurance. The long-term business offers a
range of long-term insurance and savings products, primarily for individuals, with a focus on the unit-linked market. The general
insurance business predominantly sells personal and small commercial lines insurance products through agents and a direct insurer.
Poland
Activities in Poland comprise long-term business and general insurance operations.
Italy, Spain and Other
These countries are not individually significant at a Group level, so have been aggregated into a single reporting segment in line
with IFRS 8. This segment includes our operations in Italy and Spain (including Aseval up until the date of its disposal in April 2013).
The principal activities of our Italian operations are long-term business and general insurance. The life business offers a range of
long-term insurance and savings products, and the general insurance business provides motor and home insurance products to
individuals, as well as small commercial risk insurance to businesses. As set out in note 4c, the operations of Eurovita have been
classified as held for sale during 2013. The principal activity of the Spanish operation is the sale of long-term business, accident and
health insurance and a selection of savings products. Our Other European operations include our life operations in Turkey and our
Turkish general insurance business (which is held for sale as at 31 December 2013). This segment also includes the results of our
Russian, Czech, Hungarian and Romanian businesses until the date of their disposals.
Canada
The principal activity of the Canadian operation is general insurance. In particular it provides personal and commercial lines
insurance products principally through intermediaries and insurance brokers.
Asia
Our activities in Asia principally comprise our long-term business operations in China, India, Singapore, Hong Kong and Vietnam as
well as our life operations in Taiwan, Indonesia and South Korea which are held for sale as at the balance sheet date. This segment
also includes the results of Sri Lanka and Malaysia until the date of their disposals (in December 2012 and April 2013, respectively).
Asia also includes general insurance operations in Singapore and health operations in Indonesia (which is held for sale at
31 December 2013).
Aviva Investors
Aviva Investors operates in most of the markets in which the Group operates, in particular the UK, France and Canada and other
international businesses, managing policyholders’ and shareholders’ invested funds, providing investment management services for
institutional pension fund mandates and managing a range of retail investment products, including investment funds, unit trusts,
OEICs and ISAs. The internal asset management operations of Aviva Investors North America were sold with the Group’s US life
operations and are classified as a discontinued operation in these financial statements.
Other Group activities
Investment return on centrally held assets and head office expenses, such as Group treasury and finance functions, together with
certain taxes and financing costs arising on central borrowings are included in ‘Other Group activities’, along with central core
structural borrowings and certain tax balances in the segmental statement of financial position. The results of our reinsurance
operations are also included in this segment.
Discontinued operations
In October 2013 the Group sold its US life operations (including the related internal asset management operations of Aviva
Investors), which has been presented as a discontinued operation in the income statement, statement of comprehensive income
and statement of cash flows.