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Aviva plc
Annual Report and
Accounts 2007
151
Financial
statements
9 – Longer term investment return for general insurance and health business continued
(c) The longer term investment return is calculated separately for each principal general insurance and health business unit.
In respect of equities and properties, the return is calculated by multiplying the opening market value of the investments,
adjusted for sales and purchases during the year, by the longer term rate of investment return. The longer term rate of
investment return is determined using consistent assumptions between operations, having regard to local economic
and market forecasts of investment return. The allocated longer term return for other investments is the actual income
receivable for the year.
(d) The total assets supporting the general insurance and health business, which contribute towards the longer term
return were £18,291 million (2006: £19,718 million).
The principal assumptions underlying the calculation of the longer term investment return are:
Longer term rates of return Longer term rates of return
Equities Properties
2007 2006 2007 2006
% % %%
United Kingdom 7.6 7.1 6.6 6.1
France 7.0 6.3 6.0 5.3
Ireland 7.0 6.3 6.0 5.3
Netherlands 7.0 6.3 6.0 5.3
Canada 7.1 7.0 6.16.0
The Group has applied the same economic assumptions for equities and properties as are used under EEV principles to
calculate the longer term investment return for its general insurance and health business.
(e) The table below compares the actual return on investments attributable to the general insurance and health business,
after deducting investment management expenses and charges, with the aggregate longer term return over a four
year period. This table will be built up over time to give aggregate and comparative figures over a five year period.
2004 – 2007
£m
Actual return attributable to shareholders 4,779
Longer term return credited to operating results (4,136)
Excess of actual returns over longer term returns 643
(f) The table below shows the sensitivity of the Group’s general insurance and health operating profit before tax to
changes in the longer term rates of return:
2007 2006
Movement in investment return for By Change in £m £m
Equities 1% higher/lower Group operating profit before tax 27 31
Properties 1% higher/lower Group operating profit before tax 44
10 – Employee information
This note shows where our staff are employed throughout the world and analyses the total staff costs.
The number of persons employed by the Group was:
At 31 December Average for the year
2007 2006 2007 2006
Number Number Number Number
United Kingdom operations* 33,686 33,251 33,560 35,340
Europe 16,059 16,942 15,839 16,770
North America** 4,717 4,659 4,853 3,623
Asia Pacific 2,052 1,784 2,005 1,784
Corporate centre 497 502 497 502
57,011 57,138 56,754 58,019
* Including support staff in India and Sri Lanka.
** The lower average number in 2006 reflects the inclusion of AmerUs staff only since November 2006.