Aviva 2009 Annual Report Download - page 171

169
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
9 – Longer-term investment return and economic assumption changes
for non-long-term business continued
The principal assumptions underlying the calculation of the longer-term investment return are:
Longer-term rates of Longer-term rates of
return Equities return Properties
2009 2008 2009 2008
% % % %
United Kingdom 7.0 9.2 5.5 7.7
France 7.3 8.3 5.8 6.8
Ireland 7.3 8.3 5.8 6.8
Netherlands 7.3 8.3 5.8 6.8
Canada 6.1 7.7 4.6 6.2
The Group has applied the same economic assumptions for equities and properties as are used under MCEV principles to calculate
the longer-term investment return for its non-long-term business in 2008 and 2009. In 2007, rates were based on EEV.
(e) The table below compares the actual return on investments attributable to the non-long-term business, after deducting
investment management expenses and charges, with the aggregate longer-term return over a five-year period.
2005 –
2009
£m
Restated
2004 –
2008
£m
Actual return attributable to shareholders
Longer-term return credited to operating results
5,547
(5,789)
5,516
(5,692)
Excess of longer term returns over actual returns (242) (176)
(f) The table below shows the sensitivity of the Group’s non-long-term business operating profit before tax to changes in the
longer term rates of return:
2009 2008
Movement in investment return for By Change in £m £m
Equities 1% higher/lower Group operating profit before tax 11 17
Properties 1% higher/lower Group operating profit before tax 3 3
(g) The economic assumption changes arise from movements in the rate used to discount latent claims.
As explained in accounting policy K, provisions for latent claims are discounted, using rates based on the relevant swap curve,
in the relevant currency at the reporting date, having regard to the duration of the expected settlement of the claims. The discount
rate is set at the start of the accounting period, with any change in rates between the start and end of the accounting period being
reflected below operating profit as an economic assumption change. The range of discount rates used is disclosed in note 38(c).
10 – Employee information
This note shows where our staff are employed throughout the world and analyses the total staff costs. The note excludes staff
employed by our joint ventures or associates.
(a) Employee numbers
The number of persons employed by the Group was:
At 31
December
Average for
the year
2009 2008 2007 2009 2008
Number Number Number Number Number
United Kingdom operations*
Aviva Europe
Delta Lloyd
North America
Asia Pacific
Aviva Investors
Corporate centre
21,663
9,741
6,297
5,247
1,599
1,311
469
28,424
9,827
6,674
5,627
2,376
1,298
532
32,872
9,583
6,406
4,634
2,052
967
497
24,068
9,755
6,486
5,498
1,595
1,313
467
29,996
9,761
6,522
4,990
2,220
1,061
507
46,327 54,758 57,011 49,182 55,057
Financial statements IFRS
* 2007 employee numbers include staff in the offshore operations in Sri Lanka and India. These operations were sold in 2008 and therefore these are not included in the 2008 closing numbers.