Aviva 2006 Annual Report Download - page 136

Aviva plc
Annual Report and Accounts 2006 132
Notes to the consolidated financial statements continued
4 – Segmental information continued
(iii) Life and pensions and investment sales – new business and total income
For the purpose of recording life and pensions new business premiums, the Group’s policy is to include life insurance, long-term health
and accident insurance, savings, pensions and annuity business written by our life insurance subsidiaries, including managed pension fund
business and our share of the other life and related business written in our associates and joint ventures, as well as the lifetime mortgage
business written in the UK. This includes both insurance and investment contracts as defined under IFRS 4, Insurance Contracts, and is
consistent with the definition of covered business used for our supplementary embedded value reporting.
An analysis of new long-term business sales is provided below. In this table, single premiums are those relating to products issued by
the Group which provide for the payment of one premium only. Regular premiums are those where there is a contractual obligation
to pay on an ongoing basis. Life and pensions total income represents all net written premiums in the year for insurance contracts and
investment contracts, excluding non-participating investment contracts which are required to be accounted for under IAS 39, Financial
Instruments: Recognition and Measurement, and IAS 18, Revenue.
New single premiums New regular premiums Total income
2006 2005 2006 2005 2006 2005
£m £m £m £m £m £m
Life and pensions:
United Kingdom –Group companies 7,617 6,204 549 456 5,300 4,459
–associates and joint ventures 695 501 59 29 236 217
8,312 6,705 608 485 5,536 4,676
France 3,090 3,077 82 76 3,573 3,553
Netherlands 1,224 1,441 148 179 2,079 2,582
Other Europe
Ireland 809 372 109 63 397 182
Italy 2,216 1,940 101 58 1,919 1,357
Poland 238 120 48 34 395 312
Spain 1,410 1,395 107 100 1,266 1,248
Other 83 78 55 43 159 152
United States 767 448 20 20 931 517
Rest of the World 490 350 116 93 582 353
Total life and pensions (including share of associates
and joint ventures) 18,639 15,926 1,394 1,151 16,837 14,932
Retail sales of mutual fund type products:
United Kingdom 2,411 1,139 44 21 2,455 1,160
Netherlands 285 563 ––285 563
Other Europe
Poland 127 49 44131 53
Other 475 410 ––475 410
Rest of the World 1,564 1,151 ––1,564 1,151
Total investment sales 4,862 3,312 48 25 4,910 3,337
Total long-term savings (including share of associates
and joint ventures) 23,501 19,238 1,442 1,176 21,747 18,269
Included within new business sales is £6,365 million of single premiums and £615 million of regular premiums (2005: £5,071 million and
£357 million respectively) in respect of contracts that meet the definition of “non-participating investment” contracts under IFRS 4,
Insurance Contracts. Under IFRS, the premiums on these contracts are not included in the Group income statement under earned
premiums, but areincluded on the balance sheet as a deposit.
Sales from the Navigator funds administration business, previously excluded from investment sales figures, are now included in the new
single premiums figures above. This change has increased total investment sales for 2006 by £1,371 million (2005: £938 million).
Financial statements continued