Aviva 2009 Annual Report Download - page 306

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Aviva plc MCEV financial statements continued
Annual Report and Accounts 2009
M13 – Segmental analysis of life and related business embedded value
Required Total
Free surplus capital1 VIF MCEV
2009 £m £m £m £m
United Kingdom2 1,270 2,568 2,065 5,903
France3 (71) 1,592 1,252 2,773
Ireland 175 226 487 888
Italy 263 268 129 660
Poland 60 131 950 1,141
Spain 135 212 265 612
Other Europe 38 33 188 259
Aviva Europe 600 2,462 3,271 6,333
Delta Lloyd 368 1,095 68 1,531
Europe
North America3,4
968
(152)
3,557
1,240
3,339
(394)
7,864
694
Asia 118 181 241 540
Australia — — — —
Asia Pacific 118 181 241 540
Total 2,204 7,546 5,251 15,001
1.Required capital is shown net of implicit items permitted by local regulators to cover minimum solvency margins.
2.The large increase in required capital in the UK reflects the additional capital locked in following the Reattribution of the Inherited Estate.
3.France and Aviva USA have a positive surplus on a statutory basis.
4. Aviva USA’s holding company debt amounting to £810 million at 31 December 2009 has been included within non-covered business.
Required Total
Restated Free surplus capital1 VIF MCEV
2008 £m £m £m £m
United Kingdom 1,357 1,477 2,053 4,887
France2 (92) 1,567 1,092 2,567
Ireland 135 252 603 990
Italy 261 235 149 645
Poland 115 134 979 1,228
Spain 143 225 354 722
Other Europe 43 34 159
236
Aviva Europe 605 2,447 3,336 6,388
Delta Lloyd (333) 2,284 511 2,462
Europe
North America2,3
272
(362)
4,731
1,528
3,847
(1,446)
8,850
(280)
Asia 72 159 193 424
Australia 9 253 69 331
Asia Pacific 81 412 262 755
Total 1,348 8,148 4,716 14,212
1.Required capital is shown net of implicit items permitted by local regulators to cover minimum solvency margins.
2.France, Delta Lloyd and Aviva USA have a positive surplus on a statutory basis.
3.Aviva USA’s holding company debt amounting to £1,128 million at 31 December 2008 has been included within non-covered business.
M14 – Risk allowance within present value of in-force (VIF)
Within the VIF in the tables, there are additional allowances for risks not included within the basic present value of future
profits calculation.
Time value
of financial
Non- options
Frictional hedgeable and
PVFP costs risks guarantees VIF
2009 £m £m £m £m £m
United Kingdom 2,572 (285) (197) (25) 2,065
France 2,048 (144) (155) (497) 1,252
Ireland 517 (9) (21) — 487
Italy 189 (22) (11) (27) 129
Poland 1,050 (17) (74) (9) 950
Spain 326 (16) (28) (17) 265
Other Europe 198 (3) (5) (2) 188
Aviva Europe 4,328 (211) (294) (552) 3,271
Delta Lloyd 487 (129) (80) (210) 68
Europe 4,815 (340) (374) (762) 3,339
North America 80 (9) (45) (420) (394)
Asia 324 (19) (30) (34) 241
Australia — — — — —
Asia Pacific 324 (19) (30) (34) 241
Total 7,791 (653) (646) (1,241) 5,251