Aviva 2009 Annual Report Download - page 282

280
Aviva plc Notes to the Company’s financial statements continued
Annual Report and Accounts 2009
E – Reserves
Investment Equity Restated
Merger valuation compensation Retained
reserve reserve reserve earnings
£m £m £m £m
Balance at 1 January 2008 735 13,883 89 3,207
Arising in the year:
Profit for the year — — — 858
Fair value losses on investments in subsidiaries — (8,113) — —
Actuarial gains on pension schemes — — — 2
Dividends and appropriations — — — (975)
Reserves credit for equity compensation plans — — 39 —
Shares issued in lieu of dividends — — — 170
Trust shares distributed in the year — — — (6)
Issue of share capital under equity compensation scheme — — (15) 15
Aggregate tax effect — — — 16
Balance at 31 December 2008 735 5,770 113 3,287
Arising in the year:
Profit for the year — — — 571
Fair value gains on investments in subsidiaries — 883 — —
Actuarial losses on pension schemes — — — (3)
Dividends and appropriations — — — (853)
Reserves credit for equity compensation plans — — 56 —
Shares issued in lieu of dividends — — — 299
Trust shares distributed in the year — — — (18)
Issue of share capital under equity compensation scheme — — (60) 60
Aggregate tax effect — — — 17
Balance at 31 December 2009 735 6,653 109 3,360
Tax of £17 million
(2008: £16 million) is deductible in respect of coupon payments of £61 million on the direct capital instruments.
F – Borrowings
The Company’s borrowings comprise:
2009
£m
2008
£m
2007
£m
Subordinated debt
9.5% guaranteed bonds 2016
Commercial paper
4,672
199
483
4,639
199
535
3,054
198
918
Total 5,354 5,373 4,170
Maturity analysis of contractual undiscounted cash flows:
2009 2008 2007
Principal
£m
Interest
£m
Total
£m
Principal
£m
Interest
£m
Total
£m
Principal
£m
Interest
£m
Total
£m
Within 1 year
1 – 5 years
5 – 10 years
10 – 15 years
Over 15 years
483
—
1,074
1,288
2,544
328
1,235
1,540
1,349
1,092
811
1,235
2,614
2,637
3,636
535
—
409
1,402
3,066
312
1,163
1,449
1,250
2,445
847
1,163
1,858
2,652
5,511
932
—
351
588
2,344
235
799
998
867
206
1,167
799
1,349
1,455
2,550
Total contractual undiscounted cash flows 5,389 5,544 10,933 5,412 6,619 12,031 4,215 3,105 7,320
Where subordinated debt is undated, the interest payments have not been included beyond 15 years. Annual interest payments for
these borrowings are £74 million
(2008: £77 million) .
The fair value of the subordinated debt at 31 December 2009 was £4,372 million (
2008: £2,979 million) . The fair value of the
9.5% guaranteed bonds 2016 at 31 December 2009 was £238 million
(2008: £224 million) . The fair value of the commercial
paper is considered to be the same as its carrying value.
Further details of these borrowings and undrawn committed facilities can be found in the Group consolidated financial
statements, note 48.
G – Contingent liabilities
Details of the Company’s contingent liabilities are given in the Group consolidated financial statements, note 51(j).