Aviva 2002 Annual Report Download - page 77

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8 – Long-term business bonuses
The following amounts have been included in the long-term business technical account in respect of policyholder bonuses:
2002 2001
£m £m
Bonuses allocated in anticipation of a bonus declaration, included in claims paid 508 826
Reversionary and similar policyholder bonuses, included in the movement in the long-term business provision 2,346 3,117
2,854 3,943
Policyholder bonuses in the table above now include amounts for the Group’s Dutch and French businesses in 2001 and 2002.
9 – Net operating expenses
Net operating expenses in the technical accounts comprise:
Long-term business General business
Restated
2002 2001 2002 2001
£m £m £m £m
Acquisition costs 1,494 1,609 2,379 2,644
Changes in deferred acquisition costs (144) (42) (30) 28
Administrative expenses – Financial Services Compensation Scheme levy –––31
– other 737 701 483 590
2,087 2,268 2,832 3,293
Reinsurance commissions receivable (26) (44) (139) (144)
2,061 2,224 2,693 3,149
10 – Corporate costs and integration costs
2002 2001
£m £m
Group-wide staff profit share and other incentive plans 86 78
Global finance improvement programme 26 6
Other corporate costs 106 103
218 187
Merger integration incentive plans –49
Costs of integrating acquired undertakings –10
218 246
Integration costs in 2001 included £49 million in respect of integration incentive plans relating to the integration of the former CGU and
Norwich Union businesses, which were payable to staff of certain business units and to senior management and were conditional upon
the performance of the Group against predefined targets. A charge of £10 million was also included in 2001 relating to the costs of
integrating the acquired businesses of Fortis Australia Limited and Aviva Limited (formerly known as The Insurance Corporation of
Singapore). The tax impact of these charges was a credit of £8 million.
11 – Employee information
The average number of persons employed by the Group during the year was:
2002 2001
Number Number
United Kingdom 36,298 36,091
Europe (excluding UK) 18,555 18,520
International 9,709 13,496
64,562 68,107
The analysis of total staff costs was:
2002 2001
£m £m
Wages and salaries 1,433 1,794
Social security costs 194 208
Pension costs 117 89
1,744 2,091
63 Aviva plc
Annual report + accounts 2002