Aviva 2013 Annual Report Download - page 176

Aviva plc
Annual report and accounts 2013
174
Notes to the consolidated financial statements continued
27 – Financial investments continued
(b) Cost, unrealised gains and fair value
The following is a summary of the cost/amortised cost, gross unrealised gains and losses and fair value of financial investments:
2013
Restated1
2012
Cost/
amortised
cost
£m
Unrealised
gains
£m
Unrealised
losses and
impairment
s £m
Fair
value
£m
Cost
amortised
cost
£m
Unrealised
gains
£m
Unrealised
losses and
impairments
£m
Fair
value
£m
Fixed maturity securities 120,316 8,164 (1,675) 126,805 148,540 15,316 (2,079) 161,777
Equity securities 31,164 7,775 (1,559) 37,380 31,833 4,753 (2,273) 34,313
Other investments
Unit trusts and specialised investment vehicles 26,880 1,881 (155) 28,606 24,296 1,315 (28) 25,583
Derivative financial instruments 793 683 (418) 1,058 1,201 518 (129) 1,590
Deposits with credit institutions 601 — — 601 739 — — 739
Non-controlling interests in property management
undertakings 774 130 (108) 796 741 123 (138) 726
Other long-term investments 405 12 (28) 389 434 20 (30) 424
Other investments
–
short-term 1 — — 1 6 — — 6
180,934 18,645 (3,943) 195,636 207,790 22,045 (4,677) 225,158
These are further analysed as follows:
At fair value through profit or loss 179,683 18,592 (3,833) 194,442 180,739 18,463 (4,500) 194,702
Available for sale 1,251 53 (110) 1,194 27,051 3,582 (177) 30,456
180,934 18,645 (3,943) 195,636 207,790 22,045 (4,677) 225,158
1 Restated for the adoption of IFRS10. See note 1 for further details.
All unrealised gains and losses and impairments on financial investments classified as fair value through profit or loss have been
recognised in the income statement.
Gains and losses on financial investments from continuing operations classified as at fair value through profit or loss recognised
in the income statement in the year were a net gain of £1,524 million (2012: £12,381 million net gain). Of this, £135 million net
gain (2012: £19 million net loss) related to financial investments designated as trading and £1,389 million net gain (2012:
£12,400 million net gain) related to investments designated as other than trading.
Total impairments of financial investments classified as available for sale (AFS) in the income statement in the year were £13
million (2012: £14 million). The total accumulated impairment provision for financial investments classified as available-for-sale
included in the table above within unrealised losses and impairments was £13 million (2012: £97 million). Movements in this AFS
provision are shown in section (c) below.
(c) Impairment of financial investments
The movements in impairment provisions on available-for-sale financial investments for the years ended 31 December 2012 and
2013 were as follows:
2013 2012
Fixed
maturity
securities
£m
Equity
securities
£m
Other
Investments
£m
Total
£m
Fixed
maturity
securities
£m
Equity
securities
£m
Other
Investments
£m
Total
£m
At 1 January (84) (4) (9) (97) (126) (5) (7) (138)
Charge for the year taken to the income statement (12) — (1) (13) (12) — (2) (14)
Write back following sale or reimbursement 101 — — 101 49 — — 49
Write back following recovery in value — — — — — 1 — 1
Foreign exchange rate movements (5) (1) 2 (4) 5 — — 5
At 31 December — (5) (8) (13) (84) (4) (9) (97)
(d) Financial investment arrangements
(i) Stock lending arrangements
The Group has entered into stock lending arrangements in the UK and overseas in accordance with established market
conventions. The majority of the Group’s stock lending transactions occur in the UK, where investments are lent to EEA-regulated,
locally domiciled counterparties and governed by agreements written under English law.