Aviva 2013 Annual Report Download - page 149

Strategic report Governance IFRS Financial statements Other information
Aviva plc
Annual report and accounts 2013
147
Notes to the consolidated financial statements continued
7 – Details of expenses
This note gives further detail on the items appearing in the expenses section of the consolidated income statement.
Continuin
g
operations
2013
£m
Restated1
2012
£m
Claims and benefits paid
Claims and benefits paid to policyholders on long-term business
Insurance contracts 11,899 12,382
Participating investment contracts 5,089 6,500
Non-participating investment contracts 61 33
Claims and benefits paid to policyholders on general insurance and health business 6,082 6,050
23,131 24,965
Less: Claim recoveries from reinsurers
Insurance contracts (975) (1,197)
Participating investment contracts (63) (167)
Claims and benefits paid, net of recoveries from reinsurers 22,093 23,601
Change in insurance liabilities
Change in insurance liabilities (note 41) (2,396) 688
Change in reinsurance asset for insurance provisions (note 41) (97) (258)
Change in insurance liabilities, net of reinsurance (2,493) 430
Change in investment contract provisions
Investment income allocated to investment contracts 4,406 3,178
Other changes in provisions
Participating investment contracts (note 42) 2,244 759
Non-participating investment contracts 409 525
Change in reinsurance asset for investment contract provisions (9) (12)
Change in investment contract provisions 7,050 4,450
Change in unallocated divisible surplus (note 46) (280) 6,316
Fee and commission expense
Acquisition costs
Commission expenses for insurance and participating investment contracts 2,264 2,393
Change in deferred acquisition costs for insurance and participating investment contracts 184 131
Deferrable costs for non-participating investment contracts 82 126
Other acquisition costs 872 970
Change in deferred acquisition costs for non-participating investment contracts (93) 85
Investment income attributable to unitholders 347 441
Reinsurance commissions and other fee and commission expense 319 311
3,975 4,457
Other expenses
Other operating expenses
Staff costs (note 11b) 841 1,122
Central costs and sharesave schemes 150 136
Depreciation 31 42
Impairment of goodwill on subsidiaries (note 17) 48 109
Amortisation of acquired value of in-force business on insurance contracts 37 43
Amortisation of intangible assets 81 96
Impairment of acquired value of in-force business — 73
Impairment of intangible assets 14 49
Integration and restructuring costs (see below) 363 461
Other expenses 701 662
2,266 2,793
Impairments
Net impairment on loans 30 43
Net impairment on financial investments 2 —
Net impairment on receivables and other financial assets — 3
32 46
Other net foreign exchange (gains)/losses (78) 4
Finance costs (note 8) 609 653
Expenses from continuing operations 33,174 42,750
Expenses from discontinued operations 3,127 6,190
Total expenses 36,301 48,940
1 Restated for the adoption of revised IAS19 and IFRS10. See note 1 for further details.
Integration and restructuring costs
Integration and restructuring costs from continuing operations were £363 million (2012: £461 million) and mainly include expenses
associated with the Group’s transformation programme. Compared with the prior year, integration and restructuring costs reduced
by 21% as the level of transformation activity in UK and Ireland general insurance in 2012 was not repeated and Solvency II
implementation costs reduced to £79 million (2012: £117 million).