Aviva 2002 Annual Report Download - page 82

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17 – Subsidiary undertakings continued
(b) Goodwill on acquisitions
The identifiable assets and liabilities of the entities acquired, at the relevant date of acquisition, were as set out below.
Book and
fair value
£m
Assets
Total investments 18
Other assets –
Total assets 18
Liabilities
Technical provisions including linked liabilities 1
Other creditors and provisions –
Total liabilities 1
Total shareholders’ funds 17
Less: Minority interests –
Shareholders’ funds acquired 17
Goodwill arising on acquisition 38
Total consideration 55
The total consideration comprised:
Cash (including contingent cash amounts) 55
55
No individual acquisition was material enough to require separate disclosure.
In addition to the goodwill arising on the acquisitions of these subsidiary undertakings, the Group acquired a further 30% of the share
capital of Eurovita Italcasse Assicurazioni S.p.A. (Eurovita), a 50.96% subsidiary of the Group, for a cash consideration of £21 million.
The consideration is equivalent to the increase in the Group’s share of net assets and there is no additional goodwill arising. The Group
now owns 80.96% of this subsidiary. The Group also made a number of smaller acquisitions in continental Europe. These gave rise to an
additional amount of £38 million goodwill. Total positive goodwill arising in the year was £76 million (note 18).
(c) Disposals
The net (loss)/profit on the disposal of subsidiary undertakings comprises:
2002 2001
£m £m
Long-term savings businesses:
Canada –(5)
General insurance businesses:
UK (see (i) below) (20) –
France (see (ii) below) 6–
New Zealand - State Insurance –52
Australia and New Zealand (see (v) below) (66) –
United States –125
Belgium –46
Spain (see (iv) below) 94 –
Other businesses:
France (see (iii) below) 1–
UK –70
Other small operations (19) (1)
(4) 287
(i) In January 2002, the Group completed the disposal of its wholly-owned subsidiary, Sabre Insurance Company Limited, for a total
consideration of £14 million. The net assets disposed of amounted to £24 million and the loss on disposal, after transaction costs
and the inclusion of £10 million of goodwill previously written off to reserves, was £20 million.
(ii) In May 2002, the Group completed the disposal of its wholly-owned subsidiary CGU Courtage SA, for a total consideration of
£189 million. The net assets disposed of amounted to £137 million and the profit on disposal, after transaction costs, warranties
and indemnities was £6 million.
(iii) In May 2002, the Group completed the disposal of its wholly-owned subsidiary, Royal Saint Georges Banque, for a total consideration
of £16 million. The net assets disposed of amounted to £15 million and the profit on disposal, after transaction costs, was £1 million.
Notes to the accounts continued
68 Aviva plc
Annual report + accounts 2002