Aviva 2009 Annual Report Download - page 184

182
Aviva plc Notes to the consolidated financial statements continued
Annual Report and Accounts 2009
18 – Interests in, and loans to, joint ventures continued
(b) Property management undertakings
The principal joint ventures are as follows:
Company GP proportion held PLP proportion held
Airport Property Partnership 50.0% 50.0%
Ashtenne Industrial Fund Limited Partnership 66.7% 37.4%
The Junction Limited Partnership 25.0% 34.2%
The Mall Limited Partnership 50.0% 50.5%
Queensgate Limited Partnership 50.0% 50.0%
Quercus Healthcare Property Partnership Limited 50.0% 35.3%
The 20 Gracechurch Limited Partnership 50.0% 50.0%
All the above entities perform property ownership and management activities, and are incorporated and operate in the United
Kingdom. All these investments are held by subsidiary entities.
(c) Long-term business undertakings
The principal joint ventures are as follows:
Country of
incorporation and
Company Class of share Proportion held operation
Aviva-COFCO Life Insurance Co. Limited Ordinary shares of RMB1 each 50.0% China
AvivaSA Emeklilik ve Hayat A.S. Ordinary shares of YTL1 each 49.8% Turkey
CIMB Aviva Assurance Berhad Ordinary shares of RM1 each 49.0% Malaysia
CIMB Aviva Takaful Berhad Ordinary shares of RM1 each 49.0% Malaysia
First-Aviva Life Insurance Co., Ltd. Ordinary shares of NT$10 each 49.0% Taiwan
Woori Aviva Life insurance Co. Ltd Ordinary shares of KRW 5000 each 46.8% Korea
All investments in the above companies are unlisted and are held by subsidiaries except for the shares in Aviva-COFCO Life
Insurance Co. Limited, which are held by the Company. The Group’s share of net assets of that company is £55 million
(2008: £57 million) and have a fair value of £72 million (2008: £61 million) .
(d) Impairment testing
CIMB Aviva Assurance Berhad and CIMB Aviva Takaful Berhad
The Group’s investments in CIMB Aviva Assurance Berhad and CIMB Aviva Takaful Berhad have been tested for impairment by
comparing their carrying values (which include goodwill which arose on their acquisition) with their recoverable amounts. The
recoverable amounts for both the investments have been determined based on value in use calculations. This calculation is an
actuarially-determined appraisal value and is based on the embedded value of the business together with the present value of
expected profits from future new business. The recoverable amounts exceed the carrying values of both the investments.
Key assumptions used for the calculation were:
— Cash flow projections based on
(i) the policy portfolio existing at the valuation date, and
(ii) the future sales based on plans approved by management covering the subsequent three year period. The cash flows
from existing policy portfolio is calculated using best estimate assumptions, which have been supported by experience
investigation where available and prudent estimates typical for the market where experience investigations are not available;
— The calculations use a risk adjusted discount rate of 13.2%; and
— New sales beyond the three year period have been extrapolated using a growth rate of 11.0%.