Aviva 2009 Annual Report Download - page 155

153
Performance review
Aviva plc Notes to the consolidated financial statements continued
Corporate responsibility
Annual Report and Accounts 2009
Governance
Shareholder information
Financial statements IFRS
Financial statements MCEV
Other information
3 – Subsidiaries continued
(i) Dutch health insurance business
On 1 January 2009, the Group’s Dutch subsidiary, Delta Lloyd, sold its health insurance business to OWM CZ Groep Zorgverkeraar
UA (CZ), a mutual health insurer, for £246 million, realising a profit of £31 million, calculated as shown below. Under the
terms of the agreement, CZ purchased the Delta Lloyd health insurance business and took on its underwriting risk and policy
administration. Delta Lloyd continues to market and distribute health insurance products from CZ to its existing customers and
continues to provide asset management for the transferred business. Delta Lloyd also has exclusive rights to market life, general
insurance and income protection products to CZ’s customers.
£m
Assets
Investments and property and equipment 396
Receivables and other financial assets 359
Prepayments and accrued income 158
Cash and cash equivalents 483
Total assets 1,396
Liabilities
Gross insurance liabilities (709)
Pension obligations and other provisions (7)
Other liabilities (467)
Total liabilities (1,183)
Net assets disposed of 213
Cash consideration 246
Less: transaction costs (2)
Total consideration 244
Profit on disposal before tax 31
(ii) Australian life and pensions business
On 1 October 2009, the Group sold its Australian life and pensions business and wealth management platform to National
Australia Bank for cash of A$902 million (£443 million). The total sale proceeds were fixed by reference to the net assets of the
businesses at 31 December 2008, adjusted to reflect the results in the period from 1 January 2009 to completion. The profit on
disposal of these wholly-owned subsidiaries was £122 million, calculated as follows:
£m
Assets
Goodwill and intangible assets 1
Investments and property and equipment 2,530
Receivables and other financial assets 60
Deferred acquisition costs and other assets 20
Tax assets 26
Cash and cash equivalents 175
Total assets 2,812
Liabilities
Gross insurance liabilities and liabilities for investment contracts (2,083)
Payables and financial liabilities (59)
Other liabilities (249)
Tax liabilities and other provisions (45)
Total liabilities (2,436)
Net assets disposed of 376
Cash consideration * 443
Less: transaction costs (16)
Less: other costs of disposal ** (25)
Total consideration 402
Transfer from currency translation reserve 96
Profit on disposal before tax 122
* The Group hedged its exposure to A$900 million of the sale proceeds through the purchase of foreign currency forward contracts.
**Other costs of disposal have arisen from the agreement of a call option to purchase the shares of an associate of the Australian businesses in 2010.
(iii) UK non-core operations
On 11 February 2009, the Group sold The British School of Motoring Limited and its subsidiaries to Arques Consulting GmbH for
a consideration of £4 million. The resultant loss on disposal of £9 million was provided for in the 2008 financial statements.
(iv) Non-adjusting subsequent event
On 17 February 2010, the Group sold its 35% holding in Sogessur SA to that company’s main shareholder, Société Générale, for
a consideration of £35 million, realising a profit on disposal of £24 million.
Financial statements IFRS