Aviva 2014 Annual Report Download - page 168

Aviva plc Annual report and accounts 2014
Notes to the consolidated financial statements continued
164
19 – Interests in, and loans to, joint ventures
In several businesses, Group companies and other parties jointly control certain entities. This note analyses these interests and
describes the principal joint ventures in which we are involved.
(a) Carrying amount and details of joint ventures
(i) The movements in the carrying amount comprised:
2014 2013
Goodwill
and
intangibles
£m
Equity
interests
£m
Loans
£m
Total
£m
Goodwill and
intangibles
£m
Equity
interests
£m
Loans
£m
Total
£m
At 1 January 60 1,145 24 1,229 132 1,341 43 1,516
Share of results before tax
—
138
—
138 — 161
—
161
Share of tax
—
(3)
—
(3) — (16)
—
(16)
Share of results after tax
—
135
—
135 — 145
—
145
Amortisation of intangibles1 (6)
—
—
(6) (5) —
—
(5)
Share of (loss)/profit after tax (6) 135
—
129 (5) 145
—
140
Reclassification from subsidiary 43 21
—
64 — —
—
—
Additions
—
7 73 80 — 149 6 155
Disposals
—
(311)
—
(311) (54) (378)
—
(432)
Reduction in Group interest (10) (26)
—
(36) — (37)
—
(37)
Share of gains/(losses) taken to other comprehensive income
—
22
—
22 — (37)
—
(37)
Loans repaid
—
—
(25) (25) — — (21) (21)
Dividend received
—
(22)
—
(22) — (37)
—
(37)
Foreign exchange rate movements
—
9 1 10 (13) (1) (4) (18)
At 31 December 87 980 73 1,140 60 1,145 24 1,229
Less: Amounts classified as held for sale — — — — — (29) — (29)
At 31 December 87 980 73 1,140 60 1,116 24 1,200
1 Comprises amortisation of AVIF on insurance contracts of £3 million (2013: £3 million) and other intangibles of £3 million (2013: £2 million).
‘Reclassification from subsidiary’ relates to the recognition of the Group’s joint venture holdings in Indonesia, which was previously
a fully consolidated subsidiary (refer to note 4(b)(i) for further detail). Additions relate to additional investments in, and loans to,
property management undertakings.
Disposals relate to the disposal of all or a portion of the Group’s holdings in various property management undertakings.
Reductions in Group interest in 2014 relate to the sale of the South Korean joint venture, Woori Aviva Life Insurance Co. Ltd, and
the IPO share sale of AvivaSA Emeklilik ve Hayat A.S. See note 4 for further details.
The Group’s share of total comprehensive income related to joint venture entities is £151 million (2013: £103 million).
(ii) The carrying amount at 31 December comprised:
2014 2013
Goodwill
and
intangibles
£m
Equity
interests
£m
Loans
£m
Total
£m
Goodwill and
intangibles
£m
Equity
interests
£m
Loans
£m
Total
£m
Property management undertakings
—
692 73 765 — 893 24 917
Long-term business undertakings 87 278
—
365 60 252
—
312
General insurance and health undertakings
—
10
—
10 — —
—
—
Total 87 980 73 1,140 60 1,145 24 1,229
The property management undertakings perform property ownership and management activities, and are incorporated and
operate in the UK. All such investments are held by subsidiary entities. The loans are not secured and no guarantees were received
in respect thereof. They are interest-bearing and are repayable on termination of the relevant partnership.
The long-term business undertakings perform life insurance activities. All investments in such undertakings are unlisted with the
exception of Aviva SA Emklilik ve Hayat A.S. which has issued a minority portion of shares publically (refer to note 4(b)(v)). All
investments in such undertakings are held by subsidiaries, except for the shares in the Chinese joint venture, Aviva-COFCO Life
Insurance Co. Limited, which are held by Aviva plc. The Group’s share of net assets of that company is £208 million (2013: £177
million) and has a fair value of £208 million (2013: £177 million).
The investment in general insurance and health undertakings relates to the health insurance operations in our Indonesian joint
venture.
(iii) No joint ventures are considered to be material from a Group perspective (2013: none). The Group’s principal joint ventures
are as follows:
Name Nature of activities Principal place of business
Proportion of
ownership interest
2014 2013
The Southgate Limited Partnership Property management UK 50.00% 50.00%
Airport Property Partnership Property management UK 50.00% 50.00%
First-Aviva Life Insurance Co. Ltd Life insurance Taiwan 49.00% 49.00%
Aviva-COFCO Life Insurance Co. Ltd Life insurance China 50.00% 50.00%
PT Astra Aviva Life Life insurance Indonesia 50.00% 60.00%1
AvivaSA Emeklilik ve Hayat A.S Life insurance Turkey 41.28% 49.83%
1 Operations reclassified as a joint venture in 2014 upon change in control, refer to note 4(b)(i).
164 | Aviva plc Annual report and accounts 2014