Aviva 2014 Annual Report Download - page 261

Aviva plc Annual report and accounts 2014
257
IFRS profit before tax has increased to £387 million (2012:
£248 million). This included adjusted operating profits of £465
million (2012: £480 million), which decreased for the reasons
set out above. The increase in IFRS profit before tax is mainly
due to lower integration and restructuring costs of £24 million
(2012: £170 million). The impact of negative short-term
fluctuations in investments was £74 million (2012: £17 million
positive) and in 2013 this arose mainly due to an increase in risk
free rates reducing fixed income security market values. This
was partly offset by a favourable impact from an increase in the
swap rate used to discount latent claims.
France
The table below presents sales, net written premiums, adjusted
operating profit and profit before tax attributable to
shareholders’ profits under IFRS from our operations in France
for the three years ended 31 December 2014, 2013 and 2012.
2014
£m
Restated1
2013
£m
2012
£m
Sales
Long-term insurance and savings business 4,633 4,498 3,638
General insurance and health net written
premiums 1,106 1,105 1,002
Total sales 5,739 5,603 4,640
IFRS net written premiums 5,684 5,565 4,702
Adjusted operating profit before tax
Long-term insurance and savings business 394 385 335
General insurance and health 78 84 95
Other operations (20) (21) (8)
Total adjusted operating profit before
tax 452 448 422
Profit before tax attributable to
shareholders' profits 462 457 482
1 Comparative has been restated to reflect changes in MCEV liquidity premium and extension of the MCEV
covered business.
Year ended 31 December 2014
The weakening of the Euro affected all metrics from a Group
perspective.
On a PVNBP basis, long-term insurance and savings business
sales in France increased by £135 million, or 3%, to £4,633
million (2013: £4,498 million1), with higher sales of unit-linked
products. General insurance and health sales were broadly flat
year on year at £1,106 million (2013: £1,105 million). On a
constant currency basis general insurance and health net written
premiums increased by 5% benefitting from rating and other
management actions. IFRS net written premiums were up 2% to
£5,684 million (2013: £5,565 million) for similar reasons.
Adjusted operating profit before tax remained stable at
£452 million (2013: £448 million) but improved by 6% on a
constant currency basis. Within this, life profits increased by 2%
to £394 million (2013: £385 million), mainly reflecting increased
margins. General insurance and health profits decreased to £78
million (2013: £84 million) largely due to adverse weather
events and higher healthcare claims costs.
IFRS profit before tax increased to £462 million (2013: £457
million), which includes the higher adjusted operating profits
discussed above. The increase in IFRS profit includes lower
integration and restructuring costs of £15 million (2013: £25 million)
which offset less favourable investment variances of £41 million
(2013: £55 million).
Year ended 31 December 2013
On a PVNBP basis, long-term insurance and savings business
sales in France increased by £860 million, or 24%, to £4,498
million (2012: £3,638 million), with higher sales in both savings
(particularly unit-linked) and protection products. General
insurance and health sales were up 10% to £1,105 million
(2012: £1,002 million), benefiting from rating and other
management actions. IFRS net written premiums were up 18%
to £5,565 million (2012: £4,702 million) for similar reasons.
Adjusted operating profit before tax increased by 6% to
£448 million (2012: £422 million). Within this, life profits
increased by 15% to £385 million (2012: £335 million), mainly
reflecting increased margins. General insurance and health
profits decreased to £84 million (2012: £95 million) with the
reduction largely due to adverse weather, partly offset by higher
profits from the health business.
IFRS profit before tax decreased to £457 million (2012: £482
million). This includes the higher adjusted operating profits
discussed above. The reduction in profits is due mainly to higher
restructuring costs of £25 million (2012: £11 million), and lower
favourable investment variances of £55 million (2012: £96
million favourable).
Poland
The table below presents sales, net written premiums, adjusted
operating profit and profit before tax attributable to
shareholders’ profits under IFRS from our operations in Poland
for the three years ended 31 December 2014, 2013 and 2012.
2014
£m
2013
£m
2012
£m
Sales
Long-term insurance and savings business 573 486 373
General insurance and health net written
premiums 57 69 65
Total sales 630 555 438
IFRS net written premiums 482 475 433
Adjusted operating profit before tax
Long-term insurance and savings business 180 164 153
General insurance and health 9 9 9
Other operations 3 11 5
Total adjusted operating profit before
tax 192 184 167
Profit before tax attributable to
shareholders' profits 196 178 176
Year ended 31 December 2014
Life and pensions sales on a PVNBP basis were up 18% to £573
million (2013: £486 million), mainly benefitting from changes in
pensions legislation in Lithuania and an increase in sales of higher
margin protection products. General insurance net written
premiums were £57 million (2013: £69 million). Total net written
premiums increased 1% to £482 million (2013: £475 million) due
to improved sales of life products partially offset by decreased sales
in general insurance business.
Adjusted operating profit increased by 4% to £192 million
(2013: £184 million). Life profits increased by 10% to £180
million (2013: £164 million) mainly due to a one-off regulatory
pension change of £39 million. General insurance profits
remained flat at £9 million (2013: £9 million). Profit before tax
attributable to shareholders was £196 million, an increase of
10% (2013: £178 million).
Year ended 31 December 2013
Life and pensions sales on a PVNBP basis were up 30% to £486
million (2012: £373 million), mainly due to increased sales of
unit-linked products and pensions following changes in
pensions legislation. General insurance net written premiums
were £69 million (2012: £65 million). Total net written
premiums increased 10% to £475 million (2012: £433 million)
due mainly to higher life and pensions sales.
Adjusted operating profit increased by 10% to £184 million
(2012: £167 million). Life profits increased by 7% to £164
million (2012: £153 million) due to lower expenses and higher
assets under management. General insurance profits were
stable at £9 million (2012: £9 million).
Profit before tax attributable to shareholders was £178
million, an increase of 1% (2012: £176 million).
Italy, Spain and Other
The table below presents sales, net written premiums, adjusted
operating profit and profit before tax attributable to shareholders’
profits under IFRS from our operations in Italy, Spain and Other for
the three years ended 31 December 2014, 2013 and 2012.
Other information
Aviva plc Annual report and accounts 2014 |257