Aviva 2013 Annual Report Download - page 142

Aviva plc
Annual report and accounts 2013
140
Notes to the consolidated financial statements continued
5 – Segmental information continued
(a) (ii) Segmental income statement for the year ended 31 December 2012 – (Restated)4
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
operations5
£m
Total
£m
Gross written premiums 6,363 4,951 4,763 441 3,195 2,248 740 — 43 22,744 3,796 26,540
Premiums ceded to reinsurers (740) (450) (55) (6) (150) (63) (101) — (6) (1,571) (207) (1,778)
Internal reinsurance revenue — (11) (6) (2) (9) (9) (3) — 40 — — —
Premiums written net of reinsurance 5,623 4,490 4,702 433 3,036 2,176 636 — 77 21,173 3,589 24,762
Net change in provision for
unearned premiums (15) 63 (28) (3) 3 (31) (5) — — (16) — (16)
Net earned premiums 5,608 4,553 4,674 430 3,039 2,145 631 — 77 21,157 3,589 24,746
Fee and commission income 448 180 121 57 131 42 10 279 5 1,273 23 1,296
6,056 4,733 4,795 487 3,170 2,187 641 279 82 22,430 3,612 26,042
Net investment income/(expense) 8,561 514 8,047 401 3,136 140 283 (8) 61 21,135 2,241 23,376
Inter-segment revenue — — — — — — — 134 — 134 75 209
Share of (loss)/profit of
j
oint ventures
and associates (15) — 8 2 2 — (3) 7 (256) (255) — (255)
(Loss)/profit on the disposal and
remeasurement of subsidiaries,
j
oint ventures and associates (2) (21) — — 7 — 12 — (160) (164) (2,359) (2,523)
Segmental income1 14,600 5,226 12,850 890 6,315 2,327 933 412 (273) 43,280 3,569 46,849
Claims and benefits paid, net of
recoveries from reinsurers (9,224) (2,915) (5,272) (341) (3,934) (1,268) (589) — (58) (23,601) (2,721) (26,322)
Change in insurance liabilities,
net of reinsurance 404 (30) (880) (241) 359 (40) (17) — 15 (430) (1,566) (1,996)
Change in investment contract
provisions (3,151) — (983) 19 (296) — — (39) — (4,450) (77) (4,527)
Change in unallocated
divisible surplus (347) — (4,359) (30) (1,491) — (89) — — (6,316) — (6,316)
Fee and commission expense (854) (1,544) (604) (60) (362) (611) (86) (24) (312) (4,457) (498) (4,955)
Other expenses (749) (465) (268) (56) (316) (151) (67) (342) (429) (2,843) (1,307) (4,150)
Inter-segment expenses (122) (3) — (5) — (4) — — — (134) (75) (209)
Finance costs (252) (21) (2) — (2) (8) — (5) (363) (653) (21) (674)
Segmental expenses (14,295) (4,978) (12,368) (714) (6,042) (2,082) (848) (410) (1,147) (42,884) (6,265) (49,149)
Profit/(loss) before tax 305 248 482 176 273 245 85 2 (1,420) 396 (2,696) (2,300)
Tax attributable to
policyholders' returns (198) — — — — — (23) — — (221) — (221)
Profit/(loss) before tax
attributable
to shareholders' profits 107 248 482 176 273 245 62 2 (1,420) 175 (2,696) (2,521)
Adjusted for non-operating items:
Reclassification of corporate costs
and unallocated interest 7 32 25 — 6 — — 1 (71) — — —
Investment return variances and
economic assumption changes
on life business 663 — (28) (13) — — (2) — — 620 (342) 278
Short-term fluctuation in return
on investments backing non-life
business — (17) (68) (1) (43) 10 — — 112 (7) — (7)
Economic assumption changes
on general insurance and
health business — 20 — — — — — — 1 21 — 21
Impairment of goodwill,
j
oint
ventures and associates6 (1) — — — 108 — — — (47) 60 782 842
Amortisation and impairment
of intangibles 54 6 — — 16 11 1 6 34 128 129 257
(Profit)/loss on the disposal and
remeasurement of subsidiaries,
j
oint ventures and associates 2 21 — — (7) — (12) — 160 164 2,359 2,523
Integration and restructuring costs 71 170 11 5 12 11 4 33 144 461 7 468
Share of Delta Lloyd's non-operating
items (before tax), as an associate — — — — — — — — 523 523 — 523
Share of Delta Lloyd's tax expense,
as an associate — — — — — — — — (107) (107) — (107)
Operating profit/(loss) before tax
attributable to shareholders 903 480 422 167 365 277 53 42 (671) 2,038 239 2,277
1 Total reported income, excluding inter-segment revenue, includes £18,582 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 £3 million profit relating to Aviva Investors Pooled Pensions business.
3 Other Group activities include Group Reinsurance.
4 Restated for the adoption of revised IAS19 and IFRS 10. See note 1 for further details. Also restated for the revised segmentation per note 3.
5 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.
6 Other Group activities included a reversal of an impairment in respect of our investment in Delta Lloyd of £205 million.