Aviva Plc 6 Mths Rslts - Pt.2
Aviva PLC
1 August 2002
PART 2 OF 2
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Statistical supplement
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Page 33
Segmental analysis of Group operating profit* at constant currency - achieved
profit basis
6 months
2001
at 2002
6 months exchange 6 months
2002 rates 2001
Continuing operations £m £m £m
Life achieved operating profit**
United Kingdom 424 465 465
France 111 110 110
Ireland 37 37 37
Italy 30 24 24
Netherlands (including Belgium
and Luxembourg) 87 93 93
Poland life and pensions 47 43 44
Spain 38 31 31
Other Europe - 28 28
International 22 17 17
------ ------ ------
796 848 849
====== ====== ======
Health
United Kingdom 2 4 4
France 4 4 4
Netherlands 26 24 24
------ ------ ------
32 32 32
====== ====== ======
Fund management
United Kingdom (8) 5 5
France 6 6 6
Netherlands 5 4 4
Other Europe 1 1 1
Australia and New Zealand (1) 5 5
International - 3 3
------ ------ ------
3 24 24
====== ====== ======
General insurance
United Kingdom 303 254 254
France 25 34 34
Ireland 21 17 17
Netherlands 11 5 5
Other Europe 28 13 15
Australia and New Zealand 24 27 26
Canada 39 49 50
Other 29 26 26
------ ------ ------
480 425 427
====== ====== ======
Non-insurance operations** (7) 1 1
Corporate costs (96) (81) (81)
Unallocated interest charges
- external (104) (90) (90)
- intra-group (104) (125) (125)
Wealth management (21) (60) (60)
------ ------ ------
Group operating profit before tax*
- continuing operations 979 974 977
====== ====== ======
* Group operating profit before tax from continuing operations, before
amortisation of goodwill and exceptional items.
** Reclassification of other life and savings business from 'Life' to
'Non-insurance operations'.
Restating 2001 modified statutory life profits to account for the impact of
exchange rate movements in 2002 would result in modified statutory life
profits decreasing from £600 million to £599 million for the 6 months to
30 June 2001.
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Page 34
Supplementary analyses
(a) New business contribution - including effect of solvency margin
6 months 6 months
2002 2001
£m £m
United Kingdom 157 158
Europe (excluding UK)
France 17 20
Ireland 17 14
Italy 13 11
Netherlands (including Belgium and Luxembourg) 1 1
Poland
- Life 4 2
- Pensions - 1
Spain 28 19
Other (7) 2
International 7 (1)
------ ------
237 227
====== ======
(b) Non-insurance operations - operating result
6 months 6 months Full year
2002 2001 2001
£m £m £m
United Kingdom
Hill House Hammond 5 5 4
Norwich Union Equity Release and
other personal finance subsidiaries - (5) (3)
Your Move (5) (10) (17)
Norwich Union Life Services (6) 8 9
Other - 2 3
Europe (excluding UK) (1) 1 11
------ ------ ------
(7) 1 7
====== ====== ======
The operating result of the equity release business sold in the UK is included
within the non-insurance results on a statutory basis. On an achieved profit
methodology new business contribution was £7 million before tax (31 December
2001: £12 million) and operating profit before tax was £11 million
(31 December 2001: £15 million), which is excluded from our results.
(c) Corporate costs
6 months 6 months Full year
2002 2001 2001
£m £m £m
Groupwide staff profit share and
other incentive plans (39) (32) (78)
Other corporate costs (57) (49) (109)
------ ------ ------
(96) (81) (187)
====== ====== ======
(d) Wealth management - operating result
6 months 6 months Full year
2002 2001 2001
£m £m £m
United Kingdom
assertahome (4) (10) (18)
Other wealth management (17) (50) (81)
------ ------ ------
(21) (60) (99)
====== ====== ======
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Page 35
Supplementary analyses (continued)
(e) General business - investment return information
Actual investment return Longer-term investment return
6 months 6 months Full year 6 months 6 months Full year
2002 2001 2001 2002 2001 2001
£m £m £m £m £m £m
United Kingdom 281 255 512 338 323 671
Europe
(excluding UK)
France 23 35 62 30 49 91
Ireland 25 24 49 28 27 55
Netherlands 17 16 34 18 17 33
Other 25 32 50 31 35 66
International
Australia and
New Zealand 26 30 55 35 34 70
Canada 47 54 105 57 66 128
Other 17 23 48 21 28 55
------ ------ ------ ------ ------ ------
Total longer-term
investment
return -
continuing
operations 558 579 1,169
Total actual
investment
income 461 469 915
Realised gains 106 43 300
Unrealised
(losses) (473) (345) (904)
------ ------ ------
Total actual
investment
return
- continuing
operations 94 167 311
Discontinued
operations - 165 165 - 152 152
------ ------ ------ ------ ------ ------
94 332 476 558 731 1,321
====== ====== ====== ====== ====== ======
Reconciliation between general business investment return information and
short-term fluctuation in investment return incorporated in the summarised
consolidated profit and loss account - modified statutory basis.
For the six months to 30 June 2002
Short-term
Actual Longer-term fluctuation
investment investment in investment
return return return
£m £m £m
General business 94 558 (464)
Health business 4 39 (35)
------ ------ ------
98 597 (499)
------ ------
Life business (26)
------
Total short-term fluctuation
in investment return (525)
======
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Page 36
Supplementary analyses (continued)
(f) General business information on continuing operations - adverse
weather/catastrophe claims costs
6 months 6 months Full year
2002 2001 2001
£m £m £m
United Kingdom* - - -
Europe (excluding UK)
France - 4 4
Ireland - - -
International
Australia and New Zealand 4 3 7
Canada 6 5 6
Other - - -
------ ------ ------
10 12 17
====== ====== ======
* Adverse weather/catastrophe claims costs are the costs above the
10-year average weather pattern.
(g) Pension schemes
FRS17 'Retirement benefits' was issued in November 2000 but will not be
mandatory for the Group and the Company until the year ended 31 December 2003.
Prior to this, phased transitional disclosures are introduced and the table
below is an extract from these disclosures. FRS17 differs from the existing
accounting standard for pension costs (SSAP24) in a number of ways,
principally the choice of assumptions, and that the difference between the
market value of assets and the liabilities is immediately recognised in the
balance sheet under FRS17, whereas changes in assets and liabilities are
recognised on a smoothed basis under SSAP24. The effect on the Group net
assets and retained profit of substituting the FRS17 figures for the
corresponding SSAP24 balance sheet would be as follows:
Restated*
30 June 31 December
2002 2001
Net assets Net assets
£m £m
Total included in the Group accounts 12,140 12,403
Less: pension asset on a SSAP24 basis (143) (143)
------ ------
Total excluding pension asset/liability 11,997 12,260
Add: pension (liability)/asset on FRS17 basis (330) 233
------ ------
Total including pension asset/liability 11,667 12,493
====== ======
* Restated for the effect of Financial Reporting Standard 19.
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Page 37
General insurance - geographical ratio analysis
Combined
Claims ratio Expense ratio operating ratio
6 months 6 months 6 months 6 months 6 months 6 months
2002 2001 2002 2001 2002 2001
% % % % % %
United Kingdom 71.0% 71.5% 10.4% 10.6% 101% 103%
France 69.9% 72.1% 12.6% 11.8% 100% 103%
Ireland 81.0% 85.0% 9.5% 8.3% 100% 104%
Netherlands 64.3% 64.6% 17.2% 18.4% 102% 104%
Australia and
New Zealand 73.2% 73.9% 13.2% 13.9% 102% 103%
Canada 74.1% 74.7% 12.0% 13.3% 103% 104%
------ ------ ------ ------ ------ ------
Group
- continuing
operations 71.4% 71.8% 11.3% 11.9% 101% 103%
====== ====== ====== ====== ====== ======
Ratios are measured in local currency.
The total Group ratios are based on average exchange rates applying to the
respective periods.
Definitions:
Claims ratio - Incurred claims expressed as a percentage of net earned
premiums.
Expense ratio - Written expenses excluding commissions expressed as a
percentage of net written premiums.
Commission - Written commissions expressed as a percentage of net
ratio written premiums.
Combined - Aggregate of claims ratio, expense ratio and commission
operating ratio.
ratio
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Page 38
General insurance - class of business analyses
(a) United Kingdom - continuing operations
Net written Underwriting Combined
premiums result operating ratio
6 months 6 months 6 months 6 months 6 months 6 months
2002 2001 2002 2001 2002 2001
£m £m £m £m % %
Personal
Motor 645 750 (22) (29) 103% 104%
Homeowner 495 531 22 29 95% 95%
Creditor 227 288 6 14 100% 98%
Other 42 49 1 - 100% 95%
------ ------ ------ ------ ------ ------
1,409 1,618 7 14 99% 100%
------ ------ ------ ------ ------ ------
Commercial
Motor 365 354 (10) (34) 103% 107%
Property 341 297 (10) (19) 103% 106%
Liability 132 117 (26) (33) 121% 128%
Other 129 68 4 3 91% 96%
------ ------ ------ ------ ------ ------
967 836 (42) (83) 104% 109%
------ ------ ------ ------ ------ ------
£m 2,376 2,454 (35) (69) 101% 103%
====== ====== ====== ====== ====== ======
During the six months to 30 June 2002, annualised rating increases for
commercial motor have been 10%, with 7% for personal motor and 29% for
commercial liability, while homeowners and commercial property have seen
increases of 7% and 16% respectively.
(b) France
Net written Underwriting Combined
premiums result operating ratio
6 months 6 months 6 months 6 months 6 months 6 months
2002 2001 2002 2001 2002 2001
Em Em Em Em % %
Motor 196 232 (5) (31) 100% 114%
Property and other 248 395 (3) 7 100% 95%
------ ------ ------ ------ ------ ------
Em 444 627 (8) (24) 100% 103%
------ ------ ------ ------ ------ ------
£m 275 389 (5) (15) 100% 103%
====== ====== ====== ====== ====== ======
The figures for 2001 include the results for CGU Courtage which was disposed
in May 2002. In 2002, the figures exclude CGU Courtage reflecting the
structure of the sale whereby the Group had no economic interest in the
operating result after 31 December 2001.
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Page 39
General insurance - class of business analyses (continued)
(c) Netherlands
Net written Underwriting Combined
premiums result operating ratio
6 months 6 months 6 months 6 months 6 months 6 months
2002 2001 2002 2001 2002 2001
Em Em Em Em % %
Property 163 145 9 5 91% 93%
Motor 133 139 (19) (21) 114% 115%
Liability 32 35 (5) (6) 118% 123%
Other 61 47 3 3 92% 90%
------ ------ ------ ------ ------ ------
Em 389 366 (12) (19) 102% 104%
------ ------ ------ ------ ------ ------
£m 241 227 (7) (12) 102% 104%
====== ====== ====== ====== ====== ======
(d) Canada
Net written Underwriting Combined
premiums result operating ratio
6 months 6 months 6 months 6 months 6 months 6 months
2002 2001 2002 2001 2002 2001
C$m C$m C$m C$m % %
Automobile 736 594 (22) (1) 103% 99%
Property 339 282 (14) (31) 104% 113%
Liability 90 70 (10) (13) 111% 118%
Other 15 14 4 10 73% 66%
------ ------ ------ ------ ------ ------
C$m 1,180 960 (42) (35) 103% 104%
------ ------ ------ ------ ------ ------
£m 509 436 (18) (16) 103% 104%
====== ====== ====== ====== ====== ======
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Page 40
Assets under management
General
Long-term business Restated*
business and other Group Group
30 June 30 June 30 June 31 December
2002 2002 2002 2001
£m £m £m £m
Financial investments
Shares, other variable
yield securities and
units in unit trusts 31,154 2,764 33,918 37,738
Strategic investments 2,651 1,071 3,722 3,849
Debt and fixed income
securities at market value 20,620 8,302 28,922 29,641
Debt and fixed income
securities at amortised cost 37,248 - 37,248 34,129
Loans secured by mortgages
and other loans, net of
non-recourse funding 11,727 1,208 12,935 12,527
Deposits with credit
institutions 1,565 910 2,475 2,149
------ ------ ------ ------
Total financial investments 104,965 14,255 119,220 120,033
Investments in Group
undertakings and
participating interests 798 304 1,102 1,077
Land and buildings 8,446 836 9,282 9,041
------ ------ ------ ------
Total investments 114,209 15,395 129,604 130,151
Assets held to cover
linked liabilities 29,932 - 29,932 28,704
Other assets included
in the balance sheet 11,400 20,340 31,740 29,469
------ ------ ------ ------
Total assets included
in the balance sheet 155,541 35,735 191,276 188,324
====== ====== ====== ======
Third party funds
under management:
Securitised
mortgages (gross of
non-recourse funding) 1,892 1,149
Unit trusts, Oeics,
Peps and Isas 5,372 4,677
Segregated funds 15,106 14,849
------ ------
Total assets under management 213,646 208,999
====== ======
* Restated for the effect of Financial Reporting Standard 19.
Strategic investments include the market value of the Group's shareholding in
Societe Generale, Munchener Ruckversicherungs-Gesellschaft and The Royal Bank
of Scotland Group.
General insurance and other investments mix
Total
United Continental 30 June
Kingdom Europe International 2002
£m £m £m £m
Shares, other variable
yield securities and
units in unit trusts
and strategic investments 1,996 1,194 645 3,835
Debt and fixed income
securities at market value 3,789 2,442 2,071 8,302
Land and buildings 299 494 43 836
Other 1,495 496 431 2,422
------ ------ ------ ------
Total investments 7,579 4,626 3,190 15,395
====== ====== ====== ======
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Page 41
Group capital structure
The Group maintains an efficient structure from a combination of equity
shareholders' funds, preference capital, subordinated debt and borrowings,
consistent with the Group's risk profile and the regulatory and market
requirements of its business.
The Group's capital, from all funding sources, has been allocated such that
the capital employed by trading operations is greater than the capital
provided by its shareholders and its subordinated debtholders. As a result,
the Group is able to enhance the returns earned on its equity capital.
Capital employed by segment
Restated*
6 months Full year
2002 2001
£m £m
Long-term savings 11,024 11,307
General insurance and health 4,613 4,780
Other business 316 324
Corporate 2,119 2,947
------ ------
18,072 19,358
Disposed business - CGU Courtage - 137
------ ------
Total capital employed 18,072 19,495
====== ======
Financed by
Internal debt 2,504 3,284
External debt 2,243 2,651
Subordinated debt 1,185 1,157
Shareholders' funds and minority interests 12,140 12,403
------ ------
18,072 19,495
====== ======
* Restated for the effect of Financial Reporting Standard 19.
At 30 June 2002 capital employed in our operations was lower at £18.1 billion
(31 December 2001: £19.5 billion, restated), primarily reflecting £293 million
reduction in shareholders' funds and the use of £1,188 million of assets
employed in the business to reduce internal and external debt.
In addition to its external funding sources, the Group has a number of
internal debt arrangements in place. These have allowed the assets supporting
technical liabilities to be invested into the pool of central capital for
use across the Group. They have also enabled the shareholders to deploy cash
from some parts of the business to others in order to fund growth. Although
intra-group loans in nature, they are counted as part of the capital base for
the purpose of capital management. All internal loans have been negotiated at
market rates and are appropriately serviced.
The ratio of the Group's external debt to shareholders' funds was 17% (2001
restated: 20%). Interest cover, which measures the extent to which external
interest costs are covered by achieved operating profit, was 14 times
(2001: 12 times).
Standard and Poor's have recently reaffirmed the financial strength rating of
AA (very strong security) in respect of the Group's principal operations.
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Page 42
Group capital structure (continued)
Deployment of equity shareholders' funds
6 months 2002
Fixed Other
income Other net
Equities securities investments assets Total
£m £m £m £m £m
Assets
Long-term savings 891 2,372 1,135 786 5,184
General insurance,
health, corporate
and other business 3,835 2,113 745 (780) 5,913
------ ------ ------ ------ ------
4,726 4,485 1,880 6 11,097
Goodwill 1,372
Additional value of in-force long-term business 5,603
------
Assets backing continuing operations 18,072
External debt (2,243)
Internal debt (2,504)
Subordinated debt (1,185)
-------
12,140
Minority interests (681)
Preference capital (200)
------
Total continuing operations 11,259
Disposed business - CGU Courtage -
------
Equity shareholders' funds 11,259
======
Deployment of equity shareholders' funds (continued)
Restated*
Full year
2001
Total
£m
Assets
Long-term savings 5,115
General insurance, health,
corporate and other business 6,910
------
12,025
Goodwill 1,385
Additional value of in-force long-term business 5,948
------
Assets backing continuing operations 19,358
External debt (2,651)
Internal debt (3,284)
Subordinated debt (1,157)
------
12,266
Minority interests (651)
Preference capital (200)
------
Total continuing operations 11,415
Disposed business - CGU Courtage 137
------
Equity shareholders' funds 11,552
======
* Restated for the effect of Financial Reporting Standard 19.
Return on capital employed
Full year
6 months 2002 2001
Normalised Opening Return
after-tax equity Return on on
return capital capital capital
restated* (annualised) restated*
£m £m % %
Long-term savings 555 11,307 10.1% 10.0%
General insurance
and health 295 4,780 12.7% 11.9%
Other business (18) 324 (11.4%) (27.0%)
Corporate (13) 2,947 (0.9%) (3.2%)
------ ------ ------ ------
819 19,358 8.6% 8.8%
Borrowings (145) (7,092) 4.1% 4.4%
------ ------ ------ ------
674 12,266 11.3% 11.2%
Minority interests (48) (651) 15.3% 15.9%
Preference capital (9) (200) 8.5% 8.5%
------ ------ ------ ------
617 11,415 11.1% 11.0%
Disposed business
- CGU Courtage - 137 - 15.3%
Discontinued
operations - - - -
------ ------ ------ ------
Equity shareholders'
funds 617 11,552 11.0% 9.7%
====== ====== ====== ======
* Restated for the effect of Financial Reporting Standard 19.
The return on capital is calculated as the after-tax return on opening equity
capital, based on operating profit from continuing operations, including life
achieved profit, before amortisation of goodwill and exceptional items.
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Page 43
Group capital structure (continued)
Capital management
In managing its capital, the Group aims to:
i. match the profile of its assets and liabilities, taking account of the
risks inherent in each business. In the case of the Group's life
operations, which have long-term liabilities, the majority of capital is
held in fixed income securities. A significant proportion of the capital
supporting the Group's general insurance and health operations is held in
equities, reflecting the relatively low risk profile of these businesses;
ii. maintain financial strength to support new business growth and satisfy
the requirements of its policyholders, regulators and rating agencies;
iii. retain financial flexibility by maintaining strong liquidity, including
significant unutilised committed credit lines, and access to a range of
capital markets; and
iv. allocate capital efficiently to support growth and repatriate excess
capital where appropriate.
An important aspect of the Group's overall capital management process is the
setting of target risk-adjusted rates of return for individual business units,
which are aligned to performance objectives and ensure that the Group is
focused on the creation of value for shareholders.
Risk based capital
The Group uses risk based capital as one of several measures to assess its
capital requirements for its general insurance businesses. Financial modelling
techniques enhance our practice of active capital management, ensuring
sufficient capital is available to protect against unforeseen events and
adverse scenarios and risk management. Reinsurance is actively used to limit
risk and capital requirements in the inherently volatile general insurance
business. Through reinsurance, exposure to loss is limited to £100 million for
any extra aggregation of events. Our aim continues to be the optimal usage of
capital through appropriate allocation to our businesses.
Our risk based capital model is part of a longer term development programme
for more complex risk monitoring techniques in part to meet future industry
standards. Within a few years we expect to agree capital requirements with the
regulator on the basis of our risk based capital models. This represents the
level of capital necessary to enable the general insurance business to meet
the statutory minimum solvency margin over a 5 year period with 99%
probability of not requiring further capital.
Our current risk based capital methodology for general insurance business
assesses insurance, market and credit risks and makes prudent allowance for
diversification benefits. We consider risks over a 5 year period allowing for
planned levels of business growth. Following the disposal of our US, London
Market and Courtage businesses, our risk based capital requirement may be
expressed as 36% of net written premiums.
Capital employed in our general insurance business after goodwill and adding
back the claims equalisation reserve was £4.6 billion at 30 June 2002 and
required capital on a risk basis was £3.3 billion, giving a surplus capital
position of £1.3 billion.
Sensitivity analysis
The sensitivity of the Group's shareholders' funds at 30 June 2002 to a
10% fall in the global equity markets or a rise of 1% in global interest rates
is as follows:
31 December 30 June Equities Interest rates
2001 2002 down 10% up 1%
£bn £bn £bn £bn
Additional value of
5.9 in-force* 5.6 5.3 5.8
13.6 Other net assets 12.4 12.0 12.0
(7.1) Borrowings** (5.9) (5.9) (5.9)
------ ------ ------ ------
12.4 Shareholders' funds 12.1 11.4 11.9
====== ====== ====== ======
* Assumes achieved profit assumptions adjusted to reflect revised bond
yields
** Comprising internal, external and subordinated debt
Post-tax internal rate of return on life and pensions new business
The total internal rate of return on life and pensions new business for the
Group was 16% (31 December 2001: 16%). The return is the discount rate at
which the present value of the post-tax cash flows expected to be earned over
the lifetime of the business written is equal to the initial capital required
to support the writing of the business. The capital includes the statutory
minimum solvency margin and amounts to £400 million (31 December 2001:
£800 million). This includes £100 million (31 December 2001: £200 million) of
solvency requirements.
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Page 44
Group capital structure (continued)
Shareholders' funds, including minority interests
Normalised
return
Closing shareholders' funds (note 1)
MSSB net Internally
assets generated Embedded Before After
(note 2) AVIF value tax tax
6 months 2002 Note £m £m £m £m £m
Life assurance
United Kingdom 2,372 3,159 5,531 424 297
France 947 361 1,308 111 71
Ireland 279 198 477 37 32
Italy 236 65 301 30 18
Netherlands
(including Belgium
and Luxembourg) 1,108 816 1,924 87 65
Poland 125 257 382 47 34
Spain 232 101 333 38 25
Other Europe 101 17 118 - -
International 372 41 413 22 13
------ ------ ------ ------ ------
5,772 5,015 10,787 796 555
Participating
interests 3 237 - 237 - -
------ ------ ------ ------ ------
6,009 5,015 11,024 796 555
------ ------ ------ ------ ------
General insurance
and health 4
United Kingdom 5 2,032 2,032 227 155
France 496 496 29 18
Ireland 206 206 21 17
Netherlands 418 418 37 27
Other Europe 191 191 28 19
Australia and
New Zealand 370 370 24 16
Canada 585 585 39 24
Other 315 315 29 19
------ ------ ------ ------
4,613 4,613 434 295
------ ------ ------ ------
Other business 316 316 (25) (18)
Corporate 5,6 2,119 2,119 (18) (13)
External debt 7 (2,243) (2,243) (68) (48)
Internal debt (2,504) (2,504) (104) (72)
Subordinated debt (1,185) (1,185) (36) (25)
Shareholders'
funds, including
minority interests 7,125 5,015 12,140 979 674
====== ====== ====== ====== ======
Comprising
Equities 4,726 4,726
Debt and fixed
income securities 4,485 4,485
Property 800 800
Deposits and
other investments 1,080 1,080
Intangible assets 8 1,960 5,015 6,975
Other net assets 6 6
Borrowings (5,932) (5,932)
------ ------ ------
7,125 5,015 12,140
====== ====== ======
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Page 45
Group capital structure (continued)
Shareholders' funds, including minority interests (continued)
Notes
1. The normalised return is based upon operating profit from continuing
operations, including life achieved profit, before amortisation of
goodwill and exceptional items.
2. Includes acquired additional value of in-force long-term business of
£588 million.
3. The net assets represent the £237 million of goodwill on the RBSG
joint venture.
4. The capital employed in the Group's general insurance operations
includes £314 million of goodwill.
5. Assets available to shareholders are held by the Group's UK general
insurance operations and are available to finance future growth of the
Group. Accordingly, for the purposes of preparing this note, these
assets together with their associated pre-tax investment return of
£78 million (post-tax £55 million) have been reclassified as Corporate.
6. The return before tax of £(18) million comprises investment return
£78 million and corporate costs £(96) million.
7. The external borrowings reported in the summary consolidated balance
sheet of £2,254 million comprises £11 million of general insurance
borrowings (reported within the general insurance and health net
assets) and £2,243 million of borrowings by holding companies of the
Group not allocated to operating companies (shown as external debt).
8. Comprises acquired additional value of in-force long-term business
(£588 million), goodwill arising on acquisitions (£1,135 million) and
goodwill on the RBSG joint venture (£237 million).
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Page 46
Group capital structure (continued)
Shareholders' funds, including minority interests (continued)
Restated closing shareholders' funds*
MSSB net Internally
assets generated Embedded
(note 1) AVIF value
31 December 2001 Note £m £m £m
Life assurance
United Kingdom 2,586 3,444 6,030
France 889 354 1,243
Ireland 256 211 467
Italy 218 60 278
Netherlands (including Belgium
and Luxembourg) 983 883 1,866
Poland 117 254 371
Spain 179 130 309
Other Europe 101 6 107
International 385 7 392
------ ------ ------
5,714 5,349 11,063
Participating interests 2 244 - 244
------ ------ ------
5,958 5,349 11,307
------ ------ ------
General insurance and health 3
United Kingdom 4 2,043 2,043
France 482 482
Ireland 200 200
Netherlands 430 430
Other Europe 276 276
Australia and New Zealand 357 357
Canada 590 590
Other 402 402
------ ------ ------
4,780 - 4,780
------ ------ ------
Other business 324 324
Corporate 4,5 2,947 2,947
External debt 6 (2,651) (2,651)
Internal debt (3,284) (3,284)
Subordinated debt (1,157) (1,157)
------ ------ ------
(3,821) - (3,821)
------ ------ ------
6,917 5,349 12,266
Disposed business - CGU Courtage 137 - 137
------ ------ ------
Shareholders' funds, including
minority interests 7,054 5,349 12,403
====== ====== ======
Comprising
Equities 4,947 4,947
Debt and fixed income securities 5,063 5,063
Property 825 825
Deposits and other investments 1,417 1,417
Intangible assets 7 1,984 5,349 7,333
Other net assets (90) (90)
Borrowings (7,092) (7,092)
------ ------ ------
7,054 5,349 12,403
====== ====== ======
* Restated for the effect of Financial Reporting Standard 19.
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Page 47
Group capital structure (continued)
Shareholders' funds, including minority interests (continued)
Notes
1. Includes acquired additional value of in-force long-term business of
£599 million.
2. The net assets represent the £244 million of goodwill on the RBSG
joint venture.
3. The capital employed in the Group's general insurance operations
includes £316 million of goodwill.
4. Assets available to shareholders are held by the Group's UK general
insurance operations and are available to finance future growth of the
Group. Accordingly, for the purposes of preparing this note, these
assets together with their associated pre-tax investment return of
£107 million (post-tax £72 million) have been reclassified as
Corporate.
5. The return before tax of £80 million comprises investment return
(£107 million) and corporate costs (£187 million).
6. The external borrowings reported in the summary consolidated balance
sheet of £2,662 million comprises £11 million of general insurance
borrowings (reported within the general insurance and health net
assets) and £2,651 million of borrowings by holding companies of the
Group not allocated to operating companies (shown as external debt).
7. Comprises acquired additional value of in-force long-term business
(£599 million), goodwill arising on acquisitions (£1,141 million) and
goodwill on the RBSG joint venture (£244 million).
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Page 48
Shareholder information
Financial calendar 2002/2003
Ex-dividend date for 2002 interim dividend 25 September 2002
Record date for 2002 interim dividend 27 September 2002
Payment of interim 2002 dividend 15 November 2002
Announcement of long-term savings new
business for 9 months to 30 September 24 October 2002
Preliminary announcement of 2002 results 26 February 2003
Dividend reinvestment plan
Shareholders are offered the opportunity to participate in the Company's
Dividend Reinvestment Plan (the 'Plan') which enables dividends to be
reinvested in the Company's shares at reduced dealing costs.
Shareholders who have previously elected to join the Plan need take no further
action as their cash dividend will automatically be used to purchase Aviva's
shares, on or around the dividend payment date, in accordance with the terms
of the Plan.
Shareholders who have not already joined the Plan and wish to do so should
contact the Company's Registrar, at the address below, in order to obtain full
details and a mandate form. Completed mandate forms must be returned to the
Registrar by no later than 25 October 2002 in order to participate in the Plan
for the 2002 interim dividend.
The Plan is available to ordinary shareholders, members of the Aviva Share
Account and members of the Group's employee profit sharing schemes.
Interim report
In an effort to minimise waste and eliminate unnecessary cost, the Company has
decided not to mail interim reports automatically to all shareholders each
year. However, shareholders who would like a copy of the report, now and in
future years, should contact the Company's Registrar at the address below.
Shareholder enquiries
Shareholders who have any administrative enquiries about their shareholding
in Aviva plc should contact the Company's Registrar:
Lloyds TSB Registrars
The Causeway
Worthing
West Sussex
BN99 6DA
0870 600 3952
Internet addresses
There are various internet sites within the Group, most of which inter-link
to enable quick reference direct to specific sites. Principal UK internet
sites are as follows:
Aviva www.aviva.com
UK long-term savings and
general insurance www.norwichunion.co.uk
Fund management www.morleyfm.com
Buying a home www.your-move.co.uk and
www.assertahome.com
Aviva plc
Registered in England no: 2468686
Registered Office: St Helen's, 1 Undershaft, London EC3P 3DQ
This information is provided by RNS
The company news service from the London Stock Exchange
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