Aviva 2013 Annual Report Download - page 262

Aviva plc
Annual report and accounts 2013
260
Financial and operating performance continued
£2 million (2011: £36 million), mainly due to the reduction in
adjusted operating profit and a one-off profit in 2011 arising on
the disposal of Aviva Investors Australia.
Assets under management increased by £11 billion, or 5%,
to £236 billion (2011: £225 billion). This was due to capital
appreciation more than offsetting negative net flows.
Other Group activities (from continuing operations)
The table below presents net written premiums, adjusted
operating losses and loss before tax attributable to shareholders’
profits from other group activities for the three years ended
31 December 2013, 2012 and 2011.
2013
£m
Restated1
2012
£m
Restated1
2011
£m
IFRS net written premiums 46 77 84
Adjusted operating loss before tax
General insurance (51) 22 64
Corporate centre (150) (136) (138)
Group debt costs and other interest (502) (537) (568)
Delta Lloyd Associate (see below) — 112 157
Other Group operations (90) (132) (132)
Total adjusted operating loss before tax (793) (671) (617)
Loss before tax attributable to
shareholder's profits (1,080) (1,420) (1,026)
1 Restated for the adoption of IAS19. See note 1 for further details.
Year ended 31 December 2013
Net written premiums from our reinsurance business were £46
million (2012: £77 million).
Adjusted operating loss from general insurance was £51
million (2012: £22 million profit). The decrease was mainly due
to a £67 million impact from the floods in Canada in our
reinsurance business.
Corporate centre costs were £150 million (2012: £136
million). Group debt costs and other interest decreased to £502
million (2012: £537 million), mainly due to lower internal debt
costs following the revision of terms to an internal loan (the
impact of this is neutral at an overall Group level).
Losses from other operations were £90 million (2012: £132
million), which includes £36 million of compensation expected
to be claimed from a group holding company (see Aviva
Investors above).
Loss before tax attributable to shareholders’ profits was
£1,080 million (2012: £1,420 million). The improvement in
2013 was mainly due to the disposal of the Delta Lloyd
Associate.
Year ended 31 December 2012
Net written premiums from our reinsurance business were £77
million (2012: £84 million).
Adjusted operating profit from general insurance was £22
million (2011: £64 million). Corporate centre costs were stable
at £136 million (2011: £138 million). Group debt costs and
other interest decreased to £537 million (2011: £568 million).
Losses from other operations were stable at £132 million (2011:
£132 million loss).
Loss before tax attributable to shareholders’ profits was
£1,420 million (2011: £1,026 million). The higher loss in 2012
was mainly due to the Delta Lloyd Associate.
Delta Lloyd Associate
For the period from 6 May 2011 to 5 July 2012, the Group had
an associate interest in Delta Lloyd. In July 2012, following a
sell-down, the Group’s holding fell to 19.8% of Delta Lloyd’s
ordinary share capital representing 18.6% of shareholder voting
rights and for the remainder of 2012 it was treated as a
financial investment. In January 2013, the Group sold the
remainder of its holding in Delta Lloyd.
The Group’s share of the loss of its associate interest in Delta
Lloyd in 2012 was £304 million (2011: £133 million profit). This
comprised operating profit of £112 million (2011: £157 million),
£523 million of negative non operating items (2011: £10 million
positive) and a tax credit of £107 million (2011: £34 million
charge). In addition, in 2012, an amount of £205 million
previously recognised as an impairment was reversed through
the Group’s share of loss after tax of associates, after it became
redundant when the Group’s share of Delta Lloyd’s net asset
value declined to below its quoted market value prior to sale.
Discontinued operations
United States
The table below presents IFRS net written premiums, adjusted
operating profit and profit/(loss) before tax attributable to
shareholders for the three years ended 31 December 2013,
2012 and 2011.
On 2 October 2013 the Group completed the sale of its
United States life and related internal asset management
businesses (US Life) to Athene Holding. See ‘IFRS Financial
Statements – note 4 – Subsidiaries’ for further details. The
results of US Life are presented as discontinued operations for
all periods presented.
2013
£m
2012
£m
2011
£m
IFRS net written premiums 1,489 3,589 3,620
Adjusted operating profit before tax
Life business 272 200 197
Other operations (13) (16) (11)
Fund management 31 55 37
Total adjusted operating profit before tax 290 239 223
Profit/(loss) before tax attributable to
shareholders’ profits 1,538 (2,696) 262
Year ended 31 December 2013
The results for 2013 are for the 9 month period to 2 October
2013. 2012 represents a full year’s results. Net written
premiums were £1,489 million (2012: £3,589 million). Adjusted
operating profit before tax was £290 million (2012: £239
million), driven mainly by higher life profits of £272 million
(2012: £200 million).
Profit before tax of £1,538 million (2012: £2,696 million
loss) reflects the adjusted operating profits above. It also
includes positive investment variances of £452 million (2012:
£342 million), which were driven mainly by the impact of
favourable equity market performance on embedded
derivatives, and profits on disposal of £808 million (2012:
£2,359 million loss) mainly reflecting currency translation and
investment valuation reserves recycled to the income statement
on completion. Further details are set out in note 4 to the
financial statements.
Year ended 31 December 2012
Net written premiums decreased by 1% to £3,589 million
(2011: £3,620 million) as higher sales were offset by increased
outward reinsurance premiums.
Adjusted operating profit increased by £16 million, or 7%,
to £239 million (2011: £223 million). Long-term insurance and
savings adjusted operating profit remained broadly flat at £200
million (2011: £197 million). Fund management operations
generated profits of £55 million (2011: £37 million).
Loss before tax attributable to shareholders was £2,696
million (2011: £262 million profit) which mainly related to
an impairment to write the value of the business down at
31 December 2012.