Aviva 2013 Annual Report Download - page 188

Aviva plc
Annual report and accounts 2013
186
Notes to the consolidated financial statements continued
41 – Insurance liabilities
This note analyses the Group insurance contract liabilities by type of product and describes how the Group calculates these
liabilities and the assumptions the Group used.
(a) Carrying amount
(i) Insurance liabilities (gross of reinsurance) at 31 December comprise:
2013 2012
Long-term
business
£m
General
insurance
and health
£m
Total
£m
Long-term
business
£m
General
insurance
and health
£m
Total
£m
Long-term business provisions
Participating 45,098 — 45,098 49,473 — 49,473
Unit-linked non-participating 8,714 — 8,714 9,936 — 9,936
Other non-participating 41,160 — 41,160 71,781 — 71,781
94,972 — 94,972 131,190 — 131,190
Outstanding claims provisions 1,287 7,730 9,017 1,342 7,711 9,053
Provision for claims incurred but not reported — 2,568 2,568 — 2,843 2,843
1,287 10,298 11,585 1,342 10,554 11,896
Provision for unearned premiums — 4,226 4,226 — 4,441 4,441
Provision arising from liability adequacy tests — 10 10 — 11 11
Other technical provisions — — — — — —
Total 96,259 14,534 110,793 132,532 15,006 147,538
Less: Amounts classified as held for sale (106) (132) (238) (34,446) (1) (34,447)
96,153 14,402 110,555 98,086 15,005 113,091
(ii) Change in insurance liabilities recognised as an expense
The purpose of the following table is to reconcile the change in insurance liabilities, net of reinsurance, shown on the income
statement, to the change in insurance liabilities recognised as an expense in the relevant movement tables in note 41. To do this
we need to separate out the change in provision for outstanding claims on long-term business (which is not included in a separate
movement table), and the unwind of discounting on GI reserves (which is included within finance costs within the income
statement). For general insurance and health business, the change in the provision for unearned premiums is not included in the
reconciliation below, as within the income statement, this is included within earned premiums.
Continuin
g
Operations Discontinued Operations Total
2013
Gross
£m
Reinsurance
£m
Net
£m
Gross
£m
Reinsurance
£m
Net
£m
Gross
£m
Reinsurance
£m
Net
£m
Long-term business
Change in long-term business provisions
(note 41b(iv)) (2,423) (164) (2,587) 331 (19) 312 (2,092) (183) (2,275)
Change in provision for outstanding claims 75 (7) 68 (11) 11 — 64 4 68
(2,348) (171) (2,519) 320 (8) 312 (2,028) (179) (2,207)
General insurance and health
Change in insurance liabilities (note 41c(iv)
and 44c(ii)) (33) 64 31 — — — (33) 64 31
Less: Unwind of discount on GI reserves
and other (15) 10 (5) — — — (15) 10 (5)
(48) 74 26 — — — (48) 74 26
Total change in insurance (note 7) (2,396) (97) (2,493) 320 (8) 312 (2,076) (105) (2,181)
Continuing Operations Discontinued Operations Total
2012
Gross
£m
Reinsurance
£m
Net
£m
Gross
£m
Reinsurance
£m
Net
£m
Gross
£m
Reinsurance
£m
Net
£m
Long term business
Change in long term business provisions
(note 41b(iv)) 531 (252) 279 1,691 (125) 1,566 2,222 (377) 1,845
Change in provision for outstanding claims 52 28 80 7 (7) — 59 21 80
583 (224) 359 1,698 (132) 1,566 2,281 (356) 1,925
General insurance and health
Change in insurance liabilities (note 41c(iv)
and 44c(ii)) 140 (46) 94 — — — 140 (46) 94
Less: Unwind of discount on GI reserves
and other (35) 12 (23) — — — (35) 12 (23)
105 (34) 71 — — — 105 (34) 71
Total change in insurance liabilities (note 7) 688 (258) 430 1,698 (132) 1,566 2,386 (390) 1,996