Aviva 2014 Annual Report Download - page 181

Aviva plc Annual report and accounts 2014
177
27 – Financial investments continued
(b) Cost, unrealised gains and fair value
The following is a summary of the cost/amortised cost, gross unrealised gains and losses and fair value of financial investments:
2014
Restated1
2013
Cost/
amortised
cost
£m
Unrealised
gains
£m
Unrealised
losses and
impairments
£m
Fair value
£m
Cost
amortised
cost
£m
Unrealised
gains
£m
Unrealised
losses and
impairments
£m
Fair value
£m
Fixed maturity securities 118,245 14,130 (714) 131,661 120,316 8,164 (1,675) 126,805
Equity securities 29,701 7,114 (1,196) 35,619 31,164 7,775 (1,559) 37,380
Other investments
Unit trusts and specialised investment vehicles 27,304 2,152 184 29,640 26,880 1,881 (155) 28,606
Derivatives financial instruments 917 3,660 (489) 4,088 912 1,630 (418) 2,124
Deposits with credit institutions 539
—
—
539 601 —
—
601
Minority holdings in property management undertakings 740 120 (106) 754 774 130 (108) 796
Other long-term investments 344 22 (30) 336 405 12 (28) 389
Other investments
–
short-term 1
—
—
11 —
—
1
177,791 27,198 (2,351) 202,638 181,053 19,592 (3,943) 196,702
These are further analysed as follows:
At fair value through profit or loss 176,843 27,098 (2,339) 201,602 179,802 19,539 (3,833) 195,508
Available for sale 948 100 (12) 1,036 1,251 53 (110) 1,194
177,791 27,198 (2,351) 202,638 181,053 19,592 (3,943) 196,702
1 The statement of financial position has been restated following the adoption of amendments to IAS 32 ‘Financial Instruments: Presentation’ – see note 1 for details. There is no impact on the result or the total equity for any period
presented as a result of this restatement
All unrealised gains and losses and impairments on financial investments classified as fair value through profit or loss have been
recognised in the income statement.
Gains and losses on financial investments from continuing operations classified as at fair value through profit or loss recognised
in the income statement in the year were a net gain of £11,161 million (2013: £1,524 million net gain). Of this, £587 million net
gain (2013: £135 million net gain) related to financial investments designated as trading and £10,574 million net gain (2013:
£1,389 million net gain) related to investments designated as other than trading.
The movement in the unrealised gain/loss position reported in the statement of financial position during the year, shown in the
table above, includes foreign exchange movements on the translation of unrealised gains and losses on financial investments held
by foreign subsidiaries, which are recognised in other comprehensive income, as well as transfers due to the realisation of gains
and losses on disposal and the recognition of impairment losses.
Total impairments of financial investments classified as available for sale (AFS) in the income statement in the year were £2
million. £5 million previously recognised impairment on equity securities was recovered through sale during 2014.
The total accumulated impairment provision for financial investments classified as available-for-sale included in the table above
within unrealised losses and impairments was £9 million (2013: £13 million). Movements in this AFS provision are shown in section
(c) below.
(c) Impairment of financial investments
The movements in impairment provisions on available-for-sale financial investments for the years ended 31 December 2014 and
2013 were as follows:
2014 2013
Fixed
maturity
securities
£m
Equity
securities
£m
Other
Investments
£m
Total
£m
Fixed
maturity
securities
£m
Equity
securities
£m
Other
Investments
£m
Total
£m
At 1 January
—
(5) (8) (13) (84) (4) (9) (97)
Charge for the year taken to the income statement
—
—
(2) (2) (12) — (1) (13)
Write back following sale or reimbursement
—
5
—
5101 —
—
101
Foreign exchange rate movements
—
—
11(5) (1) 2 (4)
At 31 December — — (9) (9) — (5) (8) (13)
Aviva plc Annual report and accounts 2014 |177
IFRS Financial statements