Aviva 2013 Annual Report Download - page 135

Strategic report Governance IFRS Financial statements Other information
Aviva plc
Annual report and accounts 2013
133
Notes to the consolidated financial statements continued
3 – Presentation changes
(a) Discontinued operations
As described in note 4, the Group’s US life and annuity business and associated investment management operations (together
‘US Life’), were classified as held for sale in 2012 and sold on 2 October 2013. As the Group exited from a major geographical
area of operation and consistent with the presentation in the 2012 Annual Report and Accounts, the results of US Life up to the
completion date of the disposal, as well as those for preceding years, have been classified as discontinued operations.
(b) Change to operating segments
Following announcements in the first quarter of 2013 relating to modifications to the Group’s management structure, the Group’s
operating segments were changed to align them with the revised organisational reporting structure. The Group has determined its
operating segments along market reporting lines, reflecting the management structure whereby a member of the Executive
Management team is accountable to the group chief executive for the operating segment for which he is responsible. Further
details of the reportable segments are given in note 5.
4 – Subsidiaries
This note provides details of the acquisitions and disposals of subsidiaries, joint ventures and associates that the Group has made
during the year, together with details of businesses held for sale at the year end.
(a) Acquisitions
There have been no material acquisitions during the year.
(b) Disposal and remeasurement of subsidiaries, joint ventures and associates
The profit/(loss) on the disposal and remeasurement of subsidiaries, joint ventures and associates comprises:
2013
£m
2012
£m
Ireland
–
long-term business (see (i) below) 87 —
Spain
–
long-term business (see (ii) below) 197 —
Malaysia (see (iii) below) 39 —
Russia (see (iv) below) 1 —
Czech Republic, Hungary and Romania (see (v) below) 1 7
Italy
–
long-term business (see (c) below) (178) —
Korea (see (c) below) (20) —
Turkey – general insurance (see (c) below) (9) —
United Kingdom
–
RAC Limited — (21)
Delta Lloyd Associate — (129)
Poland (see (vi) below) (4) —
Sri Lanka — 12
Other small operations 1 (33)
Profit/(loss) on disposal and remeasurement from continuing operations 115 (164)
Profit/(loss) on disposal and remeasurement from discontinued operations (see (vii) below) 808 (2,359)
Total profit/(loss) on disposal and remeasurement 923 (2,523)
The figures above include £(104) million (2012: £nil) attributable to non-controlling interests, refer to section (c) below.
(i) Irish long-term business
On 17 January 2012 the Group’s Irish long-term business subsidiary Ark Life Assurance Company Limited (Ark Life) was classified as
held for sale as a result of Allied Irish Bank (“AIB”) exercising an option to purchase this entity. In addition AIB exercised its option
to put its non-controlling interest in Aviva Life Holdings Ireland Limited (ALHI), another Irish Group subsidiary, to the Group. As a
result this non-controlling interest was reclassified from equity to liabilities. At 31 December 2012 the net assets of Ark Life and the
liability to purchase the ALHI non-controlling interest were recorded in the Group financial statements at management’s best
estimates of settlement value.
On 8 March 2013 the disposal of Ark Life and the acquisition of the non-controlling interest in ALHI were completed, for cash
consideration of £117 million, consistent with the estimated expected net settlement reflected at 31 December 2012, together
with settlement of the non-controlling interest purchase liability of £166 million. This transaction resulted in a profit on disposal of
£87 million, calculated as follows: