Aviva 2002 Annual Report Download - page 85

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21 – Investments in associated undertakings and participating interests
(a) Investments in participating interests included in the consolidated balance sheet comprise:
Long-term Non-long-term Total Long-term Non-long-term Total
business business 2002 business business 2001
£m £m £m £m £m £m
Investments in associated undertakings (21b) 727 240 967 752 257 1,009
Other participating interests 36 47 83 43 25 68
763 287 1,050 795 282 1,077
The cost of the above investments was £915 million and £44 million respectively (2001: £902 million and £76 million respectively).
None of the other participating interests are listed on a recognised investment exchange.
(b) Associated undertakings
(i) Movements in the Group’s investments in associated undertakings comprise:
Long-term Non-long-term Total
business business 2002
£m £m £m
Share of result for the year after tax 19 7 26
Foreign exchange rate movements 81018
Realised investment gains after tax –22
Unrealised investment losses after tax (15) (17) (32)
Dividends received –(4) (4)
Additions –1313
Amortisation of goodwill on associated undertakings (7a) (13) – (13)
Reclassification to subsidiary undertakings (24) (28) (52)
Movements in investments in associated undertakings (25) (17) (42)
Balance at 1 January
Goodwill (21c) 244 – 244
Share of net assets 508 257 765
752 257 1,009
Balance at 31 December
Goodwill (21c) 231 – 231
Share of net assets 496 240 736
727 240 967
Additions in the table above include an investment in a new associate, ProCapital SA in France. The Group also increased its
shareholding in its French associate, Sofragi, to 56.4% and that company has therefore been reclassified as a subsidiary.
(ii) The principal associated undertakings included above are:
Country of
incorporation
Company Class of share Proportion held and operation
Global Aerospace Underwriting Managers Limited Ordinary £1 shares 50.0% Great Britain
Norwich Winterthur Holdings Limited Ordinary £1 shares 48.5% Great Britain
ProCapital S.A. Ordinary 11 shares 43.5% France
RBS Life Investments Limited Ordinary £1 shares 49.99% Great Britain
Société Foncière Lyonnaise Ordinary 12 shares 31.49% France
The British Aviation Insurance Company Limited Ordinary £1 shares 38.1% Great Britain
All investments in associated undertakings are held by subsidiary undertakings and are included in the accounts using year ended
31 December 2002 figures. Société Foncière Lyonnaise (“SFL”) is listed on a recognised investment exchange and its total value, based
on mid market prices at 31 December 2002, is £682 million (2001: £583 million). All other associated undertakings are not listed. All
associated undertakings transact insurance business, with the exception of SFL which is a property company, and ProCapital, which is an
online brokerage company.
The Group’s shareholding in SFL would reduce to 26.37% if all convertible bonds previously issued by SFL are converted to ordinary shares.
71 Aviva plc
Annual report + accounts 2002