Aviva 2009 Annual Report Download - page 120

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Aviva plc
Annual Report and Accounts 2009 Additional information for Shareholders
Major shareholders and related party disclosures
Major shareholders
The Financial Services Authority Disclosure and Transparency
Rules 2006 provide that a person or corporate entity that
acquires an interest of 3% or more in Aviva ordinary shares
is required to notify us of that interest, whether it is held
beneficially or not. Any subsequent increase or decrease of
1% or more must also be notified. Similarly, a notification
is required once the interest falls below 3%.
Based on notifications received up to 31 December 2009,
no shareholder held a beneficial interest of 5% or more in Aviva
ordinary shares at 31 December 2009 or at any point in the
preceding three financial years.
We are required under the Financial Services Authority
Listing Rules to disclose in the directors’ report to our annual
financial statements all notifications received since our previous
annual report. We have summarised below the notifications
received during last three financial years: 2007, 2008 and 2009.
The table below summarises the shareholders with at least
3% ownership of our outstanding ordinary shares as of
3 March 2010 according to notifications received from our
shareholders. Our major shareholders as listed below have the
same voting rights as all our ordinary shareholders.
% of total issued shares/
Total number of shares held % of voting rights
Blackrock Inc1
– Non-beneficial interest
(shares held nominally on
behalf of others) 140,757,642 5.09%
Axa S.A. and its Group companies
– Held beneficially 88,336,674 3.19%
– Non-beneficial interest 18,451,502 0.67%
Legal & General Group plc
– Held beneficially 116,354,795 4.24%
1. On 1 December 2009, Barclays Group sold Barclays Global Investors business to BlackRock
Inc, resulting in BlackRock holding 140,757,642 shares, or 5.09%, of voting rights of which
2,081,107 shares, or 0.08%, are held in CFDs.
To the best of our knowledge, except as set forth in the table
above, no other shareholder held more than 3% of our
outstanding ordinary shares as of 3 March 2010.
% of total issued shares/
As at 27 February 2008 Total number of shares held % of voting rights
– Held beneficially 104,107,838 4.01%
Barclays plc
– Non-beneficial interest 133,026,405 5.08%
Axa S.A. and its Group companies
– Held beneficially 28,520,097 1.10%
– Non-beneficial interest 230,932,552 8.90%
Legal & General Group plc
% of total issued shares/
As at 27 February 2007 Total number of shares held % of voting rights
Barclays plc
– Non-beneficial interest 153,862,359 5.99%
Axa S.A. and its Group companies
– Held beneficially 29,277,260 1.14%
– Non-beneficial interest 232,943,181 9.08%
Legal & General Group plc
– Held beneficially 93,312,175 3.65%
% of total issued shares/
As at 1 March 2006 Total number of shares held % of voting rights
Related party transactions
For more information relating to related party transactions,
including more information about the transactions described
below, please see “Financial Statements IFRS – Note 53 –
Related party transactions”.
Subsidiaries
Transactions between the Company and its subsidiaries are
eliminated on consolidation.
However, the Company has transactions and outstanding
balances with certain unit trusts, Open Ended Investments
Companies, collateralised debt obligations and similar entities
which are not consolidated and where a Group company acts
as manager. These entities are regarded as related parties for
the purposes of International Accounting Standard (“IAS”) 24.
The balances are included in the Group’s statement of financial
position at fair value or amortised cost in accordance with their
IAS 39 classifications. The transactions are included in the
income statement and include amounts paid on issue of shares
or units, amounts received on cancellation of shares or units and
paid in respect of the periodic charge and administration fee.
Directors and key management
The total compensation to those employees classified as key
management, being those having authority and responsibility
for planning, directing and controlling the activities of the
Group, including the executive and non-executive directors is
as follows:
2009 2008 2007
£m £m £m
Salary and other short-term benefits 39 38 40
Post-employment benefits 5 3 4
Equity compensation plans 16 9 14
Termination benefits 1 3 2
Total 61 53 60
Various directors and key management of Aviva may from time
to time purchase insurance, asset management or annuity
products, or be granted mortgages marketed by Aviva Group
companies in the ordinary course of business on substantially
the same terms, including interest rates and security
requirements, as those prevailing at the time for comparable
transactions with other persons.
Apart from the disclosed transactions discussed above and
in the “Governance” section of this report, no director had an
interest in shares, transactions or arrangements that requires
disclosure under applicable rules and regulations.
Other related parties
The Group received income from other related parties from
transactions made in the normal course of business. Loans to
other related parties are made on normal arm’s length
commercial terms.
Services provided to other related parties
2009 2008 2007
Income Receivable Income Receivable Income Receivable
earned at year earned at year earned at year
in year end in year end in year end
£m £m £m £m £m £m
Associates 49 3 61 3 58 2
Joint ventures 17 328 20 300 26 169
Employee
pension
schemes 9 2 24 6 26 6
Barclays plc 109,751,163 4.57%
Legal & General Group plc 81,072,340 3.38%
75 333 105 309 110 177