Aviva 2009 Annual Report Download - page 304

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Aviva plc MCEV financial statements continued
Annual Report and Accounts 2009
M10 – Post tax internal rate of return and payback period on life and pensions new business
Internal Total
rate Initial Required invested Payback
of return capital capital capital period
31 December 2009 % £m £m £m years
United Kingdom 14% 109 133 242 8
France 9% 53 169 222 9
Ireland 6% 56 23 79 10
Italy 10% 27 156 183 7
Poland 22% 20 9 29 5
Spain 26% 25 72 97 3
Other Europe 12% 43 7 50 8
Aviva Europe 13% 224 436 660 7
Delta Lloyd 6% 116 140 256 33
Europe 11% 340 576 916 15
North America 7% 162 376 538 14
Asia 6% 58 25 83 25
Australia 11% 2 34 36 8
Asia Pacific 8% 60 59 119 20
Total 10.0% 671 1,144 1,815 14
Total
Internal rate Initial Required invested Payback
of return capital capital capital period
31 December 2008 % £m £m £m years
United Kingdom 14% 157 136 293 8
France 9% 35 118 153 9
Ireland 8% 53 24 77 9
Italy 14% 9 48 57 6
Poland 21% 31 12 43 4
Spain 37% 28 75 103 3
Other Europe 13% 57 9 66 6
Aviva Europe 17% 213 286 499 7
Delta Lloyd 5% 277 244 521 n/a
Europe1 11% 490 530 1,020 7
North America 11% 124 489 613 6
Asia 13% 64 23 87 8
Australia 12% 3 30 33 8
Asia Pacific 12% 67 53 120 8
Total1 11.4% 838 1,208 2,046
1.For Delta Lloyd, the 2008 value of new business is a loss on a real world basis and so it is not possible to calculate a meaningful payback period. Consequently the total and Europe average
payback period excludes Delta Lloyd.
M11 – Free surplus emergence
Existing New Total
business business business
Impact of
experience Reduction
variances Release of Total in free
and required existing surplus Total new
Transfer assumption capital to business from business Total free
from VIF to Return on changes on free surplus Impact on
required surplus surplus
net worth net worth net worth surplus generation net worth capital generation generation
2009 £m £m £m £m £m £m £m £m £m
United Kingdom 220 99 62 (70) 311 (53) (130) (183) 128
Aviva Europe 495 89 27 112 723 (177) (281) (458) 265
Delta Lloyd 175 57 (124) 55 163 (111) (124) (235) (72)
Europe 670 146 (97) 167 886 (288) (405) (693) 193
North America 159 90 (100) 457 606 (192) (390) (582) 24
Asia Pacific 82 11 (5) 2 90 (55) (58) (113) (23)
Total 1,131 346 (140) 556 1,893 (588) (983) (1,571) 322
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