Aviva 2009 Annual Report Download - page 58

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Aviva plc Property and Risk management
Annual Report and Accounts 2009
Equity securities
The table below analyses our investments in equity securities by sector.
2009
Policyholder Participating
£m £m
Shareholder
£m
Total
£m
Public Utilities
Banks, trusts and insurance companies
Industrial miscellaneous and all other
Non-redeemable preferred shares
2,355
3,747
22,526
10
1,299
1,797
6,560
22
26
1,745
3,046
210
3,680
7,289
32,132
242
Total 28,638 9,678 5,027 43,343
Total % 66.1% 22.3% 11.6%
2008 23,840 13,817 5,754 43,411
2008 % 54.9% 31.8% 13.3%
At 31 December 2009, shareholder investment in equity securities amounted to £5,027 million, of which 77% related to our
business in the Netherlands, 17% our Italian business and 6% other businesses. The Italian equity holdings are held both directly
by our Italian subsidiaries and by group holding companies.
Of our £7,289 million exposure to equity investments in banks, trusts and insurance companies, £1,745 million relates to
shareholder investments, which includes £766 million equities held by our business in the Netherlands and a strategic holding in
UniCredit and other Italian banks of £927 million (£757 million net of minority interest share).
The remaining shareholder exposure to equity securities, other than banks, trusts and insurance companies, arises principally
in our Netherlands business, amounting to 95% of the total exposure of £3,282 million.
Other investments
The table below analyses other investments by type.
Policyholder Participating Shareholder Total
2009 £m £m £m £m
Unit trusts and other investment vehicles 23,914 5,415 615 29,944
Derivative financial instruments 146 621 1,311 2,078
Deposits and credit institutions 307 29 633 969
Minority holdings in property management undertakings 10 605 52 667
Other 490 552 149 1,191
Total 24,867 7,222 2,760 34,849
Total % 71.4% 20.7% 7.9%
2008 23,632 9,443 3,436 36,511
2008 % 64.7% 25.9% 9.4%
Property
Our global headquarters are located in St. Helen’s, 1 Undershaft, London, England. We also have the following
regional headquarters:
— UK – UK Life: York, England
— UK – UK General Insurance: Norwich, England
— Europe – London, England
— North America – Chicago, Illinois, USA
— Asia Pacific – Singapore
— Aviva Investors – London, England
In addition to the above, our regions have major offices in the following locations:
— North America: Des Moines, Iowa, USA and Scarborough, Ontario, Canada
— Europe: Paris, France; Amsterdam, the Netherlands; Dublin, Ireland; Madrid, Spain; and Milan, Italy
We own or lease space in 27 countries around the world. As of 31 December 2009, we owned and occupied land and buildings
for our own use with a total book value of £416 million
(2008: £568 million) . We believe that these facilities are adequate for our
present needs in all material respects. We also hold other properties, both directly and indirectly, for investment purposes, valued
at £10,756 million at 31 December 2009.
Risk management
As a global company we face a diverse range of risks, each of which has the potential to impact financial performance or hinder
the achievement of business objectives. If we do not manage these risks effectively we could also miss potential opportunities to
further develop and expand our business.
At Aviva, sound risk management is a key component of our business and is an integral part of maintaining financial stability
for our customers, shareholders and other stakeholders. We group the type of risks we face into three categories: financial,
strategic, and operational.
— Financial risks cover market and credit risk, insurance risk, liquidity and capital management.