Aviva 2009 Annual Report Download - page 191

189
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
22 – Loans continued
The movements in the impairment provisions on these loans for the years ended 31 December 2009 and 2008 were as follows:
2009 2008
£m £m
At 1 January (122) (54)
Increase during the year (58) (58)
Write back following sale or reimbursement 17 —
Write back following recovery in value 5 8
Other movements 2 3
Foreign exchange movements 8 (21)
At 31 December (148) (122)
(b) Collateral
The Group holds collateral in respect of loans where it is considered appropriate, in order to reduce the risk of non-recovery.
This collateral generally takes the form of liens or charges over properties and, in the case of policy loans, the underlying policy,
for the majority of the loan balances above. In all other situations, the collateral must be in a readily realisable form, such as listed
securities, and is held in segregated accounts. Transfer of title for the collateral received always occurs in such cases, although
no market risk or benefit is taken. In the event of a default, the Group is able to sell or repledge the collateral.
The amount of collateral received with respect to loans which the Group is permitted to sell or repledge in the absence of
default was £3,685 million
(2008: £3,880 million, 2007: £6,282 million) . No collateral was actually sold or repledged in the
absence of default during the year
(2008: £nil) .
Financial statements IFRS