Aviva 2001 Annual Report Download - page 58

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Notes to the accounts
56 CGNU plc Annual report + accounts 2001
1 – Exchange rates
The principal rates of exchange used for translation are:
Average rates Closing rates
2001 2000 2001 2000
Canadian dollar 2.23 2.25 2.32 2.24
United States dollar 1.43 1.51 1.46 1.49
The 2001 profit and loss account and balance sheet figures have been translated into euros using the average rate of a1 = £0.62
(2000:
a
1 = £0.61) and the closing rate of a1 = £0.61 (2000:
a
1 = £0.63) respectively.
2 – Discontinued operations
“Discontinued operations”disclosures relate to the exit from London Market business in 2000 and the sale of the general insurance
business in the Unites States, which completed on 1 June 2001. The results of all other operations are entitled “Continuing operations”.
The Group’s consolidated profit and loss account incorporates the following financial information in respect of the UK London
Market and US general insurance businesses:
Abridged statement of operating and investment gains
London Market US general insurance business
2001 2000 2001 2000
£m £m £m £m
Net premiums written –192 1,103 3,021
Change in the provision for unearned premiums –(16) 102 (14)
Earned premiums, net of reinsurance –176 1,205 3,007
Allocated investment return transferred from the non-technical account –55 152 417
Claims incurred, net of reinsurance –(173) (978) (3,025)
Other charges –(62) (400) (949)
Balance on the general business technical account
Underwriting result –(59) (173) (967)
Longer-term investment return –55 152 417
–(4) (21) (550)
Unallocated interest charges* ––(21) (42)
Operating loss –(4) (42) (592)
Amortisation of goodwill ––(1) (3)
Short-term fluctuation in investment return –(10) 13 66
Loss on ordinary activities before tax –(14) (30) (529)
Tax on loss on ordinary activities –1(93) 110
Loss for the financial year –(13) (123) (419)
Retranslation to closing rate ––(2) (4)
Retained loss –(13) (125) (423)
*Unallocated interest charges are eliminated on consolidation.