Aviva 2002 Annual Report Download - page 98

Download and view the complete annual report

Please find page 98 of the 2002 Aviva annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

42 – Debenture loans, amounts due to credit institutions and commercial paper continued
(g) After taking into account the various interest rate and currency swaps entered into by the Group, the currency and interest rate
exposure of the general business and other borrowings of the Group was:
Floating rate borrowings Fixed rate borrowings Total
2002 2001 2002 2001 2002 2001
£m £m £m £m £m £m
Sterling 922 1,180 323 400 1,245 1,580
Euro 106 106 113 387 219 493
United States dollar 582 574 ––582 574
Canadian dollar 8–6814 8
Other 361147
Total non-long-term business borrowings 1,621 1,866 443 796 2,064 2,662
The floating rate borrowings comprise commercial paper and bank borrowings bearing interest based on local inter-bank offer rates,
which are fixed in advance for the period of the borrowings. Excluding the subordinated perpetual loan notes, the fixed rate borrowings
have a weighted average interest rate of 7.94% (2001: 6.26%) for a weighted average term of 8 years (2001: 10 years).
(h) The Group has the following undrawn committed central borrowing facilities available to it, of which £1,000 million (2001:
£1,000 million) is used to support the commercial paper programme:
2002 2001
£m £m
Expiring within one year 880 1,550
Expiring beyond one year 2,060 1,430
2,940 2,980
(i) The difference between the carrying value and the fair value of the non-long-term business fixed rate borrowings and the related
swaps is as follows:
Carrying value Fair value Carrying value Fair value
2002 2002 2001 2001
£m £m £m £m
Non-long-term business fixed rate borrowings 529 624 891 1,142
Currency swaps (86) (133) (95) (156)
443 491 796 986
(j) The General Accident preference shares, included in minority interests at their par value of £250 million together with an £8 million
accrual for dividends, are listed on the London Stock Exchange. Their fair value at 31 December 2002 was £267 million
(2001: £331 million), based on their quoted market price.
43 – Other creditors including tax and social security
2002 2001
£m £m
Banking and stockbroking liabilities (31b) 3,249 3,312
Proposed final ordinary dividend (15) 322 536
United Kingdom and overseas tax 868 174
Bank overdrafts 348 918
Other 2,191 3,627
Other creditors including tax and social security 6,978 8,567
Bank overdrafts arise substantially from unpresented cheques and amount to £61 million (2001: £554 million) in long-term business
operations and £287 million (2001: £364 million) in general business and other operations. The “other” totals include the obligation
to repay £295 million (2001: £336 million) received under stock repurchase arrangements entered into in the United Kingdom and
the Netherlands.
44 – Accruals and deferred income
2002 2001
£m £m
Deferred reinsurance commissions 90 51
Other accruals and deferred income 967 952
Accruals and deferred income 1,057 1,003
Notes to the accounts continued
84 Aviva plc
Annual report + accounts 2002