Aviva 2009 Annual Report Download - page 158

156
Aviva plc Notes to the consolidated financial statements continued
Annual Report and Accounts 2009
4 – Segmental information continued
(i) Segmental income statement for the year ended 31 December 2009
United Kingdom Europe
Other
Aviva Delta North Aviva Group
Life GI# Europe Lloyd America Asia Pacific Investors activities Total
£m £m £m £m £m £m £m £m £m
Gross written premiums 6,086 4,239 12,936 4,482 6,413 534 — — 34,690
Premiums ceded to reinsurers (1,311) (355) (468) (134) (231) (77) — — (2,576)
Internal reinsurance revenue — 28 (13) (7) (6) (2) — — —
Net written premiums 4,775 3,912 12,455 4,341 6,176 455 — — 32,114
Net change in provision for unearned premiums 2 607 (16) 6 (35) (5) — — 559
Net earned premiums 4,777 4,519 12,439 4,347 6,141 450 — — 32,673
Fee and commission income 261 272 558 226 55 121 296 — 1,789
5,038 4,791 12,997 4,573 6,196 571 296 — 34,462
Net investment income 8,199 553 10,184 3,172 2,242 586 157 (121) 24,972
Inter-segment revenue — — — — — — 202 — 202
Share of loss of joint ventures and associates (416) — (36) (41) — (11) — — (504)
Profit on the disposal of subsidiaries and associates — — — 31 — 122 — — 153
Segmental income* 12,821 5,344 23,145 7,735 8,438 1,268 655 (121) 59,285
Claims and benefits paid,
net of recoveries from reinsurers (7,313) (3,409) (8,871) (3,567) (4,110) (279) — — (27,549)
Change in insurance liabilities,
net of reinsurance 663 531 (2,321) (1,448) (2,895) (212) — — (5,682)
Change in investment contract provisions (4,008) — (6,451) (239) (128) (148) (211) — (11,185)
Change in unallocated divisible surplus 872 — (2,280) (68) — (71) — — (1,547)
Amortisation of deferred acquisition costs and acquired
value of in-force business (46) — (47) (3) (149) (4) — — (249)
Depreciation and other amortisation expense (45) (72) (60) (35) (77) (6) (5) — (300)
Other operating expenses (1,804) (1,893) (2,107) (1,248) (653) (246) (348) (306) (8,605)
Impairment losses** — (42) (17) (445) (104) — — — (608)
Inter-segment expenses (119) (6) (15) — (60) (1) — (1) (202)
Finance costs (254) (19) (13) (672) (18) — — (360) (1,336)
Segmental expenses (12,054) (4,910) (22,182) (7,725) (8,194) (967) (564) (667) (57,263)
Profit/(loss) before tax 767 434 963 10 244 301 91 (788) 2,022
Tax attributable to policyholders’ returns (156) — (32) — — (29) — — (217)
Profit/(loss) before tax attributable to shareholders 611 434 931 10 244 272 91 (788) 1,805
Adjusted for non-operating items:
Reclassification of corporate costs and unallocated interest 1 (10) 13 29 10 — 1 (44) —
Investment return variances and economic assumption changes
on long-term business 83 — (194) 348 (87) (75) — — 75
Short-term fluctuation in return on investments backing
non-long-term business — (62) (92) 23 (79) — — 115
(95)
Economic assumption changes on general insurance
and health business — (55) 2 — (4) — — — (57)
Impairment of goodwill 35 — 26 1 — — — — 62
Amortisation and impairment of intangibles 3 18 31 19 69 2 2 — 144
(Profit)/loss on the disposal of subsidiaries and associates — — — (31) — (122) — — (153)
Exceptional items (163) 42 16 — 60 — — — (45)
Integration and restructuring costs 89 114 64 — — — 21 (2) 286
Operating profit/(loss) before tax attributable
to shareholders 659 481 797 399 213 77 115 (719) 2,022
* Total reported income, excluding inter-segment revenue, is split United Kingdom £18,165 million, France £12,890 million, Netherlands £7,335 million, USA £6,350 million and Rest of the World
£14,545 million. Income is attributed on the basis of geographical origin which does not materially differ from revenue by geographical destination, as most risks are located in the countries
where the contracts were written.
**Impairment losses, and reversal of such losses, recognised directly in other comprehensive income were £482 million and £nil respectively.
# United Kingdom General Insurance includes the Group Reinsurance business, agency run off business and the non-insurance business for the RAC.