Aviva 2013 Annual Report Download - page 248

Aviva plc
Annual report and accounts 2013
246
Notes to the Company’s financial statements continued
I – Related party transactions
The Company receives dividend and interest income from subsidiaries and pays interest and fee expense to those subsidiaries in the
normal course of business. These activities are reflected in the table below.
Loans to and from subsidiaries are made on normal arm’s-length commercial terms. The maturity analysis of the related party
loans is as follows:
Loans owed by subsidiaries
Maturit
y
analysis
2013
£m
2012
£m
Within 1 year 42 1,240
1 to 5 years 832 446
Over 5 years 208 608
Total 1,082 2,294
Loans owed to subsidiaries
2013 2012
Maturit
y
analysis of contractual undiscounted cash flows
Principal
£m
Interest
£m
Total
£m
Principal
£m
Interest
£m
Total
£m
Within 1 year 9,975 218 10,193 794 336 1,130
1 to 5 years 563 34 597 11,333 506 11,839
Over 5 years — — — 1,820 83 1,903
Total 10,538 252 10,790 13,947 925 14,872
Other related party balances comprise dividends and interest receivable and payable, as well as inter-company balances for fees
and other transactions in the normal course of business.
Loans owed to Aviva Group Holdings Limited were settled during the year, resulting in a realised fair value loss of £78 million.
The loan principal payable within 1 year of £9,975 million relates to a facility provided by General Accident plc, with settlement
to be received in cash at maturity in December 2014. It is the intention of both parties that this facility will be renewed in full
upon maturity.
Dividends, loans, interest
Services provided to related parties
2013 2012
Income
earned
in year
£m
Receivable
at year end
£m
Income
earned
in year
£m
Receivable
at year end
£m
Subsidiaries 1,553 1,706 1,692 5,313
The related parties’ receivables are not secured and no guarantees were received in respect thereof. The receivables will be settled
in accordance with normal credit terms.
Services provided by related parties
2013 2012
Expense
incurred
in year
£m
Payable
at year end
£m
Expense
incurred
in year
£m
Payable
at year end
£m
Subsidiaries 326 14,260 402 17,516
The related parties’ payables are not secured and no guarantees were given in respect thereof. The payables will be settled in
accordance with normal credit terms. Details of guarantees, indemnities and warranties given by the Company on behalf of related
parties are given in note 53(f).
The directors and key management of the Company are considered to be the same as for the Group. Information on both the
Company and Group key management compensation can be found in note 61.
J – Subsequent event
There are no subsequent events to report.
K – Statement of cash flows
Following a review of the classification of the cash flows, additional disclosures in respect of treasury shares purchased for
employee trusts, interest paid on direct capital instruments, fixed rate tier 1 notes and exchange gains on cash and cash equivalents
and shares issued under equity compensation plans have been provided and comparative amounts have been amended from
amounts previously reported. There has been no impact on the total cash and cash equivalents balance.