Aviva 2009 Annual Report Download - page 166

164
Aviva plc Notes to the consolidated financial statements continued
Annual Report and Accounts 2009
6 – Details of expenses
This note gives further detail on the items appearing in the second section of the consolidated income statement.
2009 2008
£m £m
Claims and benefits paid
Claims and benefits paid to policyholders on long-term business
Insurance contracts 16,973 16,986
Participating investment contracts 4,264 5,085
Non-participating investment contracts 67 115
Claims and benefits paid to policyholders on general insurance and health business 7,444 8,696
28,748 30,882
Less: Claim recoveries from reinsurers
Insurance contracts (1,083) (1,447)
Participating investment contracts (116) (82)
Claims and benefits paid, net of recoveries from reinsurers 27,549 29,353
Change in insurance liabilities
Change in insurance liabilities 5,755 (4,792)
Change in reinsurance asset for insurance provisions (73) 907
Change in insurance liabilities, net of reinsurance 5,682 (3,885)
Change in investment contract provisions
Investment income allocated to investment contracts 5,136 (6,957)
Other changes in provisions
Participating investment contracts (note 39) 5,764 (3,088)
Non-participating investment contracts (5,425) (591)
Change in reinsurance asset for investment contract provisions 5,710 7
Change in investment contract provisions 11,185 (10,629)
Change in unallocated divisible surplus (note 43) 1,547 (4,482)
Fee and commission expense
Acquisition costs
Commission expenses for insurance and participating investment contracts 2,953 3,521
Change in deferred acquisition costs for insurance and participating investment contracts (536) (513)
Deferrable costs for non-participating investment contracts 112 160
Other acquisition costs 1,137 1,337
Change in deferred acquisition costs for non-participating investment contracts (31) 185
Investment income attributable to unitholders 331 (679)
Reinsurance commissions and other fee and commission expense 430 400
4,396 4,411
Other expenses
Other operating expenses
Staff costs (note 10) 2,659 2,873
Central costs and sharesave schemes 108 141
Depreciation (note 20) 115 131
Impairment losses on property and equipment (note 20) 2 —
Impairment of goodwill on subsidiaries (note 16a) 30 48
Amortisation of acquired value of in-force business on insurance contracts (note 17) 249 333
Amortisation of intangible assets (note 17) 142 113
Net impairment of acquired value of in-force business (note 17) 13 2
Impairment of intangible assets (note 17) 12 13
Integration and restructuring costs (see below) 286 326
Exceptional items (see below) 776 247
Other expenses 299 217
4,691 4,444
Impairments
Net impairment on loans 53 50
Net impairment on financial investments 538 973
Net impairment on receivables and other financial assets 2 17
Net impairment on non-financial assets (1) —
592 1,040
Other net foreign exchange losses/(gains) 83 (68)
Finance costs (note 7) 1,336 1,547
Total expenses 57,061 21,731