Aviva 2009 Annual Report Download - page 190

188
Aviva plc Notes to the consolidated financial statements continued
Annual Report and Accounts 2009
22 – Loans
This note analyses the loans our Group companies have made, the majority of which are mortgage loans.
(a) Carrying amounts
The carrying amounts of loans at 31 December 2009, 2008 and 2007 were as follows:
2009 2008 2007
At fair At fair At fair
value value value
through through through
profit profit profit
or loss At or loss At or loss At
other than amortised other than amortised other than amortised
trading cost Total trading cost Total trading cost Total
£m £m £m £m £m £m £m £m £m
Policy loans 214 1,655 1,869 265 1,861 2,126 215 1,316 1,531
Loans to banks — 5,339 5,339 — 6,415 6,415 — 7,576 7,576
Securitised mortgage loans (see note 23)
UK 1,840 — 1,840 1,861 — 1,861 1,777 — 1,777
Netherlands 5,544 1,770 7,314 4,936 2,262 7,198 3,699 1,911 5,610
7,384 1,770 9,154 6,797 2,262 9,059 5,476 1,911 7,387
Non-securitised mortgage loans 13,292 8,012 21,304 14,406 7,266 21,672 12,849 4,747 17,596
Loans and advances to bank customers — 1,943 1,943 — 1,886 1,886 — 1,307 1,307
Loans to brokers and other intermediaries — 92 92 — 98 98 — 80 80
Other loans — 1,378 1,378 — 981 981 — 716 716
Total 20,890 20,189 41,079 21,468 20,769 42,237 18,540 17,653 36,193
Loans to banks include cash collateral received under stock lending arrangements (see note 24(e)). The obligation to repay this
collateral is included in payables and other financial liabilities (note 49).
Of the above loans, £33,241 million
(2008: £30,673 million, 2007: £25,666 million) is expected to be recovered more than
one year after the statement of financial position date.
Loans at fair value
Fair values have been calculated by discounting the future cash flows using appropriate current interest rates for each portfolio
of mortgages. Further details of the fair value methodology are given in note 24(b).
The change in fair value of these loans during the year, attributable to a change in credit risk, was a gain of £338 million
(2008: £644 million loss) . The cumulative change attributable to changes in credit risk to 31 December 2009 was a loss of
£315 million
(2008: £854 million loss) .
Loans at amortised cost
The fair value of these loans at 31 December 2009 was £19,786 million
(2008: £20,218 million, 2007: £17,588 million) .
(b) Analysis of loans carried at amortised cost
2009 2008 2007
Amortised Carrying Amortised Carrying Amortised Carrying
cost Impairment value cost Impairment value cost Impairment value
£m £m £m £m £m £m £m £m £m
Policy loans 1,655 — 1,655 1,861 — 1,861 1,316 — 1,316
Loans to banks 5,339 — 5,339 6,415 — 6,415 7,576 — 7,576
Securitised mortgage loans 1,771 (1) 1,770 2,263 (1) 2,262 1,911 — 1,911
Non-securitised mortgage loans 8,115 (103) 8,012 7,328 (62) 7,266 4,753 (6) 4,747
Loans and advances to bank customers 1,986 (43) 1,943 1,936 (50) 1,886 1,346 (39) 1,307
Loans to brokers and other intermediaries 92 — 92 98 — 98 80 — 80
Other loans 1,379 (1) 1,378 990 (9) 981 725 (9) 716
Total 20,337 (148) 20,189 20,891 (122) 20,769 17,707 (54) 17,653