Aviva 2013 Annual Report Download - page 141

Strategic report Governance IFRS Financial statements Other information
Aviva plc
Annual report and accounts 2013
139
Notes to the consolidated financial statements continued
5 – Segmental information continued
(a) (i) Segmental income statement for the year ended 31 December 2013
United Kingdom &
Ireland Europe
Life
£m
GI
£m
France
£m
Poland
£m
Italy, Spain
and Other
£m
Canada
£m
Asia
£m
Aviva
Investors2
£m
Other
Group
activities3
£m
Continuing
operations
£m
Discontinued
operations4
£m
Total
£m
Gross written premiums 4,971 4,664 5,634 484 3,277 2,318 678 — 9 22,035 1,589 23,624
Premiums ceded to reinsurers (743) (455) (63) (6) (79) (60) (146) — 6 (1,546) (100) (1,646)
Internal reinsurance revenue — (9) (6) (3) (5) (8) — — 31 — — —
Premiums written net of
reinsurance 4,228 4,200 5,565 475 3,193 2,250 532 — 46 20,489 1,489 21,978
Net change in provision for
unearned premiums (9) 185 (25) (2) 31 (54) 8 — — 134 — 134
Net earned premiums 4,219 4,385 5,540 473 3,224 2,196 540 — 46 20,623 1,489 22,112
Fee and commission income 424 198 134 60 115 40 14 294 — 1,279 28 1,307
4,643 4,583 5,674 533 3,339 2,236 554 294 46 21,902 1,517 23,419
Net investment
income/(expense) 6,898 293 3,388 180 1,628 17 40 92 (27) 12,509 2,340 14,849
Inter-segment revenue — — — — — — — 143 — 143 49 192
Share of profit of
j
oint ventures
and associates 88 — 8 3 6 — 15 — — 120 — 120
Profit/(loss) on the disposal and
remeasurement of subsidiaries,
j
oint ventures and associates 87 — — (4) 13 — 19 — — 115 808 923
Segmental income1 11,716 4,876 9,070 712 4,986 2,253 628 529 19 34,789 4,714 39,503
Claims and benefits paid, net of
recoveries from reinsurers (8,960) (2,818) (4,858) (363) (3,222) (1,342) (489) — (41) (22,093) (2,037) (24,130)
Change in insurance liabilities,
net of reinsurance 4,102 119 (1,618) (103) (2) (42) 92 — (55) 2,493 (312) 2,181
Change in investment contract
provisions (4,829) — (1,725) 34 (386) — — (144) — (7,050) (31) (7,081)
Change in unallocated
divisible surplus 199 — 426 16 (363) — 2 — — 280 — 280
Fee and commission expense (598) (1,479) (554) (60) (286) (620) (61) (23) (294) (3,975) (438) (4,413)
Other expenses (370) (301) (280) (51) (214) (136) (73) (446) (349) (2,220) (293) (2,513)
Inter-segment expenses (129) (4) — (7) — (3) — — — (143) (49) (192)
Finance costs (224) (6) (4) — (4) (6) — (5) (360) (609) (16) (625)
Segmental expenses (10,809) (4,489) (8,613) (534) (4,477) (2,149) (529) (618) (1,099) (33,317) (3,176) (36,493)
Profit/(loss) before tax 907 387 457 178 509 104 99 (89) (1,080) 1,472 1,538 3,010
Tax attributable to
policyholders' returns (190) — — — — — (1) — — (191) — (191)
Profit/(loss) before tax
attributable to
shareholders' profits 717 387 457 178 509 104 98 (89) (1,080) 1,281 1,538 2,819
Adjusted for non-operating
items:
Reclassification of corporate
costs and unallocated interest — 7 21 — — — — — (28) — — —
Investment return variances and
economic assumption changes
on life business 414 — (70) 1 (267) — (29) — — 49 (452) (403)
Short-term fluctuation in return
on investments backing non-
life business — 74 15 — 12 122 — — 113 336 — 336
Economic assumption changes
on general insurance and
health business — (28) — — — (4) — — (1) (33) — (33)
Impairment of goodwill,
j
oint
ventures and associates — — — — 48 — 29 — — 77 — 77
Amortisation and impairment
of intangibles 21 1 — — 17 15 1 22 14 91 9 100
(Profit)/loss on the disposal and
remeasurement of subsidiaries,
j
oint ventures and associates (87) — — 4 (13) — (19) — — (115) (808) (923)
Integration and restructuring
costs 59 24 25 1 8 9 7 41 189 363 3 366
Operating profit/(loss)
before tax attributable
to shareholders 1,124 465 448 184 314 246 87 (26) (793) 2,049 290 2,339
1 Total reported income, excluding inter-segment revenue, includes £15,862 million from the United Kingdom (Aviva plc’s country of domicile). Income is attributed on the basis of geographical origin which does not differ materially
from revenue by geographical destination, as most risks are located in the countries where the contracts were written.
2 Aviva Investors operating profit includes £2 million profit relating to the Aviva Investors Pooled Pensions business.
3 Other Group activities include Group Reinsurance.
4 Discontinued operations represent the results of the US life and related internal asset management businesses (US Life) until the date of disposal (2 October 2013). For further details see note 4.