Aviva 2009 Annual Report Download - page 159

157
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
4 – Segmental information continued
(ii) Segmental income statement for the year ended 31 December 2008
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 8,108 5,496 9,550 5,979 6,486 587 — — 36,206
Premiums ceded to reinsurers (612) (498) (350) (92) (214) (75) — — (1,841)
Internal reinsurance revenue — 26 (17) (4) (4) (1) — — —
Net written premiums 7,496 5,024 9,183 5,883 6,268 511 — — 34,365
Net change in provision for unearned premiums 6 344 (3) (18) (50) (2) — —– 277
Net earned premiums 7,502 5,368 9,180 5,865 6,218 509 — — 34,642
Fee and commission income 310 362 505 206 40 168 294 — 1,885
7,812 5,730 9,685 6,071 6,258 677 294 — 36,527
Net investment income (8,844) 326 (7,820) 1,652 444 (626) (407) (768) (16,043)
Inter-segment revenue — — — — — — 203 —
203
Share of loss of joint ventures and associates (1,058) — (11) (27) — (32) — — (1,128)
Profit/(loss) on the disposal of subsidiaries and associates — (38) 9 15 — — — 21 7
Segmental income* (2,090) 6,018 1,863 7,711 6,702 19 90 (747) 19,566
Claims and benefits paid,
net of recoveries from reinsurers (8,620) (3,944) (9,280) (4,131) (2,912) (464) — (2) (29,353)
Change in insurance liabilities,
net of reinsurance 2,674 280 4,253 (844) (2,774) 296 — — 3,885
Change in investment contract provisions 7,240 — 2,643 122 (126) 401 349 — 10,629
Change in unallocated divisible surplus 2,151 — 2,301 30 — — — — 4,482
Amortisation of deferred acquisition costs and acquired
value of in-force business — — (39) (5) (285) (4) — — (333)
Depreciation and other amortisation expense (70) (108) (43) (77) (51) (5) (5) — (359)
Other operating expenses (1,787) (2,599) (1,444) (1,526) (633) (296) (362) 552 (8,095)
Impairment losses** — (26) (17) (797) (200) — — — (1,040)
Inter-segment expenses (137) (2) (18) — (42) (3) — (1) (203)
Finance costs (541) (10) (20) (683) (17) — — (276) (1,547)
Segmental expenses 910 (6,409) (1,664) (7,911) (7,040) (75) (18) 273 (21,934)
(Loss)/profit before tax (1,180) (391) 199 (200) (338) (56) 72 (474) (2,368)
Tax attributable to policyholders’ returns 1,031 — 49 — — (12) — — 1,068
(Loss)/profit before tax attributable to shareholders (149) (391) 248 (200) (338) (68) 72 (474) (1,300)
Adjusted for non-operating items:
Reclassification of corporate costs and unallocated interest 7 (71) 54 — 15 — — (5) —
Investment return variances and economic assumption
changes on long-term business 694 — 472 (72) 433 104 — — 1,631
Short-term fluctuation in return on investments backing
non-long-term business — 334 37 352 (47) — — 143 819
Economic assumption changes on general insurance
and health business — 91 3 — — — — — 94
Impairment of goodwill — — 16 50 — — — — 66
Amortisation and impairment of intangibles 3 33 12 22 44 — 3 — 117
(Profit)/loss on the disposal of subsidiaries and associates — 38 (9) (15) — — — (21) (7)
Exceptional items 108 312 7 126 42 — 6 (50) 551
Integration and restructuring costs 60 195 15 23 — — 33 — 326
Operating profit/(loss) before tax attributable
to shareholders 723 541 855 286 149 36 114 (407) 2,297
* Total reported income, excluding inter-segment revenue, is split United Kingdom £3,928 million, France £1,005 million, Netherlands £7,711 million, USA £4,954 million and Rest of the World
£1,968 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 £830 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.
Financial statements IFRS