Aviva 2014 Annual Report Download - page 167

Aviva plc Annual report and accounts 2014
163
18 – Acquired value of in-force business (AVIF) and intangible assets
This note shows the movements in cost, amortisation and impairment of the acquired value of in-force business and intangible
assets during the year.
AVIF on
insurance
contracts1
£m
AVIF on
investment
contracts2
£m
Other
intangible
assets with
finite useful
lives (b)
£m
Intangible
assets with
indefinite
useful
lives (a)
£m
Total
£m
Gross amount
At 1 January 2013 2,261 288 1,737 114 4,400
Additions
—
— 110
—
110
Disposals (1,850) (158) (477)
—
(2,485)
Movement in shadow adjustment 133 — —
—
133
Foreign exchange rate movements 18 10 8 4 40
At 31 December 2013 562 140 1,378 118 2,198
Additions
—
— 161
—
161
Disposals (70) (21) (67)
—
(158)
Foreign exchange rate movements (27) (1) (51) (8) (87)
At 31 December 2014 465 118 1,421 110 2,114
Accumulated amortisation
At 1 January 2013 (1,547) (165) (682)
—
(2,394)
Amortisation for the year (133) (8) (73)
—
(214)
Disposals 1,308 102 314
—
1,724
Foreign exchange rate movements (11) (7) 8
—
(10)
At 31 December 2013 (383) (78) (433)
—
(894)
Amortisation for the year (32) (5) (76)
—
(113)
Disposals 30 21 34
—
85
Foreign exchange rate movements 22 1 7
—
30
At 31 December 2014 (363) (61) (468) — (892)
Accumulated Impairment
At 1 January 2013 (144) (39) (185) (63) (431)
Impairment losses charged to expenses
—
— (24)
—
(24)
Disposals 61 15 151
—
227
Foreign exchange rate movements (2) — (3) (3) (8)
At 31 December 2013 (85) (24) (61) (66) (236)
Impairment losses charged to expenses
—
— (10)
—
(10)
Disposals 40 — 6
—
46
Foreign exchange rate movements 2 — — 4 6
At 31 December 2014 (43) (24) (65) (62) (194)
Carrying amount
At 1 January 20133 570 84 870 51 1,575
At 31 December 2013 94 38 884 52 1,068
At 31 December 2014 59 33 888 48 1,028
1 On insurance and participating investment contracts.
2 On non-participating investment contracts.
3 The carrying amount of acquired value of in-force business and intangible assets at 1 January 2013 includes held for sale assets of £491 million.
(a) Intangible assets with indefinite useful lives comprise the value of the Union Financière de France Banque distribution channel,
where the existing lives of the assets and their competitive position in, and the stability of, their respective markets support this
classification. Impairment testing of these intangible assets is covered in note 17(b).
(b) Other intangible assets with finite useful lives consist primarily of the value of bancassurance and other distribution agreements.
Additions relate to intangible assets with finite lives including capitalised software in the UK and Canadian general
insurance business.
The intangible assets with finite lives disposed of in the year relate primarily to River Road and a Canadian broker. Disposals
also comprise the derecognition of exhausted assets which are fully amortised or impaired with nil carrying value.
Impairment losses on intangible assets with finite lives of £10 million arose principally from impairments of capitalised
software in the UK long-term business and other Group activities. Impairment tests were conducted as described in note 17(b).
AVIF on insurance and investment contracts is generally recoverable in more than one year. Of the total AVIF of £92 million
(£59 million on insurance contracts, £33 million on investment contracts), £74 million (2013: £93 million) is expected to be
recovered more than one year after the statement of financial position date.
Aviva plc Annual report and accounts 2014 |163
IFRS Financial statements