Aviva 2007 Annual Report Download - page 144
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Please find page 144 of the 2007 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.3 – Subsidiaries continued
(d) Operations classified as held for sale
(i) Assets and liabilities of operations classified as held for sale
The assets and liabilities of operations classified as held for sale as at 31 December 2007 relate to our Dutch health
insurance businesses, and were as follows:
2007 2006
£m £m
Financial investments 316 –
Receivables and other financial assets 554 –
Prepayments and accrued income 146 –
Tax assets 16 –
Cash and cash equivalents 96 –
Total assets 1,128 –
Gross insurance liabilities (627) –
Borrowings (12) –
Payables and financial liabilities (72) –
Other liabilities (220) –
Tax liabilities and other provisions (11) –
Total liabilities (942) –
Net assets 186 –
(ii) Dutch health insurance business
On 16 July 2007, the Group announced that its Dutch subsidiary, Delta Lloyd Group (DL), had reached an agreement to sell
its health insurance business to OWM CZ Groep Zorgverkeraar UA (CZ), a mutual health insurer, and create a long-term
alliance for the cross-selling of insurance products. Under the terms of the agreement, CZ will purchase the DL health
insurance business and take on its underwriting risk and policy administration. DL will continue to market and distribute
health insurance products from CZ to its existing customers, and to provide asset management for the transferred business.
DL will also have exclusive rights to market life, general insurance and income protection products to CZ’s customers. The
transaction is expected to take effect on 1 January 2009, subject to regulatory, competition and other relevant approvals.
The relevant assets and liabilities of the DL health insurance business have been classified as held for sale, at their carrying
values, in the consolidated balance sheet as at 31 December 2007.
(e) Other information
Principal subsidiaries at 31 December 2007 are listed on pages 268 to 269.
One of the Group’s wholly-owned subsidiaries, Delta Lloyd NV, is subject to the provisions of Dutch corporate law and
particularly the Dutch “structure company” regime. Under this regime, Delta Lloyd operates under a Supervisory Board
which has a duty to have regard to the interests of a wide variety of stakeholders. The Supervisory Board includes two
Aviva Group representatives and is responsible for advising and supervising Delta Lloyd’s Executive Board. The shareholder
is one of the most important stakeholders to whom the Supervisory Board has a duty.
Dutch Law changed in October 2004 to ensure that Supervisory Board directors in Dutch companies were henceforth to
be elected by a company’s shareholders voting on nominations made by its Supervisory Board and the Works Council.
Under the previous system, Supervisory Board directors appointed their own successors. In 2006, Delta Lloyd commenced
proceedings against Aviva plc to try to compel the Company to adhere to the system that existed prior to the change
in the law, on the basis of agreements they say were entered into in 1973 when the Group acquired Delta Lloyd.
The Company disputes these claims and does not expect the litigation, whatever its outcome, to have any adverse
effect on the financial or operational performance of Delta Lloyd or the Group. We expect a judgement from the court on
this issue sometime in 2008, which either party will then have the ability to appeal.
4 – Segmental information
The Group’s results can be segmented, either by activity or by geography. Our primary reporting format is by business
activity, whilst our secondary segmentation is by geographical area. This note provides segmental information on the
consolidated income statement and balance sheet.
(a) Primary reporting format – business segments
(i) Reporting segments
The principal activity of the Group is financial services, which is managed using the following reportable segments: long-
term business, fund management, general insurance and health.
Long-term business
Our long-term business comprises 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.
Aviva plc
Annual Report and
Accounts 2007
140
Financial
statements
Notes to the consolidated financial statements continued