Aviva 2014 Annual Report Download - page 146

Aviva plc Annual report and accounts 2014
Notes to the consolidated financial statements continued
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5 – Segmental information
The Group’s results can be segmented, either by activity or by geography. Our primary reporting format is on market reporting
lines, with supplementary information being given by business activity. This note provides segmental information on the
consolidated income statement and consolidated statement of financial position.
The Group has determined its operating segments along market reporting lines. These reflect the management structure
whereby a member of the Executive Management team is accountable to the Group CEO for the operating segment for which
they are responsible.
United Kingdom & Ireland
The United Kingdom and Ireland comprises two operating segments – Life and General Insurance. The principal activities of our UK
and Ireland Life operations are life insurance, long-term health (in the UK) and accident insurance, savings, pensions and annuity
business. UK and Ireland General Insurance provides insurance cover to individuals and businesses, for risks associated mainly with
motor vehicles, property and liability (such as employers’ liability and professional indemnity liability) and medical expenses. UK &
Ireland General Insurance includes the results of our Ireland Health business.
France
The principal activities of our French operations are long-term business and general insurance. The long-term business offers a
range of long-term insurance and savings products, primarily for individuals, with a focus on the unit-linked market. The general
insurance business predominantly sells personal and small commercial lines insurance products through agents and a direct insurer.
Poland
Activities in Poland comprise long-term business and general insurance operations, including our long-term business in Lithuania.
Italy, Spain and Other
These countries are not individually significant at a Group level, so have been aggregated into a single reporting segment in line
with IFRS 8. This segment includes our operations in Italy (including Eurovita up until the date of disposal in June 2014) and Spain
(including Aseval and CxG up until the dates of their disposals in April 2013 and December 2014 respectively). The principal
activities of our Italian operations are long-term business and general insurance. The life business offers a range of long-term
insurance and savings products, and the general insurance business provides motor and home insurance products to individuals, as
well as small commercial risk insurance to businesses. The principal activity of the Spanish operation is the sale of long-term
business, accident and health insurance and a selection of savings products. Our Other European operations include our life
operations in Turkey (including our reduced joint venture share following IPO in November 2014) and our Turkish general insurance
business (up until the date of disposal in December 2014). This segment also includes the results of our Russian and Romanian
businesses until the date of their disposals in 2013.
Canada
The principal activity of the Canadian operation is general insurance. In particular it provides personal and commercial lines
insurance products principally distributed through insurance brokers.
Asia
Our activities in Asia principally comprise our long-term business operations in China, India, Singapore, Hong Kong, Vietnam,
Indonesia and Taiwan. This segment also includes the results of Malaysia and Korea until the date of their disposals (in April 2013
and June 2014 respectively). Asia also includes general insurance and health operations in Singapore and health operations in
Indonesia.
Aviva Investors
Aviva Investors operates in most of the markets in which the Group operates, in particular the UK, France, North America, Asia
Pacific and other international businesses, managing policyholders’ and shareholders’ invested funds, providing investment
management services for institutional pension fund mandates and managing a range of retail investment products, including
investment funds, unit trusts, OEICs and ISAs. This segment also includes the results of River Road Asset Management LLC until the
date of its disposal in June 2014.
Other Group activities
Investment return on centrally held assets and head office expenses, such as Group treasury and finance functions, together with
certain taxes and financing costs arising on central borrowings are included in ‘Other Group activities’, along with central core
structural borrowings and certain tax balances in the segmental statement of financial position. The results of our reinsurance
operations are also included in this segment.
Discontinued operations
In October 2013 the Group sold its US life operations (including the related internal asset management operations of Aviva
Investors), which has been presented as a discontinued operation for the comparative periods in the income statement, statement
of comprehensive income and statement of cash flows. As described in note 4(b)(viii) the settlement of the purchase price
adjustment, in conjunction with the aggregate development of other provisions is presented as profit from discontinued operations
in 2014.
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