Aviva 2009 Annual Report Download - page 290

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Aviva plc MCEV financial statements continued
Annual Report and Accounts 2009
Group MCEV analysis of earnings
Non-covered
but related to Non-covered Total non-
Covered life Total life relating to covered
business1 business2 business3 non-life business Total
2009 £m £m £m £m £m £m
£m A B A+B C B+C A+B+C
Opening group MCEV 14,212 2,639 16,851 (2,499) 140 14,352
Opening adjustments — — — — — —
Adjusted opening group MCEV 14,212 2,639 16,851 (2,499) 140 14,352
Operating MCEV earnings 2,178 — 2,178 15 15 2,193
Non-operating MCEV earnings 1,215 (99) 1,116 (496) (595) 620
Total MCEV earnings 3,393 (99) 3,294 (481) (580) 2,813
Other movements in IFRS net equity — (266) (266) (839) (1,105) (1,105)
Capital and dividend flows (250) — (250) (283) (283) (533)
Foreign exchange variances (743) (218) (961) 224 6 (737)
Acquired/divested businesses (1,611) (1) (1,612) 1,047 1,046 (565)
Closing group MCEV 15,001 2,055 17,056 (2,831) (776) 14,225
Preference share capital and direct capital instruments (1,190)
Equity attributable to ordinary shareholders of Aviva plc on an MCEV basis 13,035
1.Covered business represents the business that the MCEV calculations cover, as detailed in the Basis of preparation note. The embedded value is presented net of minority interests and tax.
2.Non-covered but related to life business represents the adjustments to the MCEV, including goodwill, to calculate the long-term business net assets on an MCEV basis. An analysis of net assets
on an MCEV basis gross of minority interests is provided on page 298.
3.Net assets for the total life businesses on an MCEV basis presented net of minority interests.
Non-covered
but related Non-covered Total non-
Covered to life Total life relating to covered
Restated business1 business2 business3 non-life business Total
2008 £m £m £m £m £m £m
£m A B A+B C B+C A+B+C
Opening group MCEV 18,389 2,059 20,448 977 3,036 21,425
Opening adjustments — — — — — —
Adjusted opening group MCEV 18,389 2,059 20,448 977 3,036 21,425
Operating MCEV earnings 1,760 — 1,760 509 509 2,269
Non-operating MCEV earnings (8,678) (53) (8,731) (1,203) (1,256) (9,934)
Total MCEV earnings (6,918) (53) (6,971) (694) (747) (7,665)
Other movements in IFRS net equity — (28) (28) (994) (1,022) (1,022)
Capital and dividend flows (63) — (63) (712) (712) (775)
Foreign exchange variances 2,717 567 3,284 (895) (328) 2,389
Acquired/divested businesses 87 94 181 (181) (87) —
Closing group MCEV 14,212 2,639 16,851 (2,499) 140 14,352
Preference share capital and direct capital instruments (1,190)
Equity attributable to ordinary shareholders of Aviva plc on an MCEV basis 13,162
1.Covered business represents the business that the MCEV calculations cover, as detailed in the Basis of preparation note. The embedded value is presented net of minority interests and tax.
2.Non-covered but related to life business represents the adjustments to the MCEV, including goodwill, to calculate the long-term business net assets on an MCEV basis. An analysis of net assets
on an MCEV basis gross of minority interests is provided on page 298.
3.Net assets for the total life businesses on an MCEV basis presented net of minority interests.