9 - Other operations and regional costs
| 6 months 2008 £m |
6 months 2007 £m |
Full year 2007 £m |
|
|---|---|---|---|
| Europe | (12) | – | (11) |
| North America | (5) | – | (2) |
| Asia Pacific | (9) | – | (3) |
| Regional costs | (26) | – | (16) |
| United Kingdom | (33) | (23) | (8) |
| Europe | (10) | (22) | (38) |
| North America | 1 | – | (2) |
| Asia Pacific | 2 | (4) | (10) |
| Other operations | (40) | (49) | (58) |
| Total | (66) | (49) | (74) |
United Kingdom
The £33 million loss for the period (six months to 30 June 2007: £23 million loss) mainly comprises a £23 million loss arising from the Lifetime wrap platform and a £12 million increase in the provision for interest on disputed tax liabilities, £5 million of which is exchange rate related. This is partly offset by a £5 million profit from the Norwich Union Insurance non-insurance operations. Following a strategic review of the Lifetime platform, a decision has been made to enter into a strategic partnership with Scottish Friendly to run the Lifetime back office administration and migrate the wrap onto their existing platform. This has given rise to impairment losses and restructuring costs.
Europe
The loss of £22 million for the period (six months to 30 June 2007: £22 million loss) principally reflects the inclusion of Aviva Europe regional office costs of £12 million, following regionalisation in July 2007. Head office costs in our French business have increased due to higher staff and finance strategy costs while in the Netherlands, lower staff incentive plan costs were partly offset by lower profit in the Dutch banking division.
North America
The loss of £4 million (six months to 30 June 2007: £nil) reflects the inclusion of regional costs and other non-insurance businesses.
Asia Pacific
The increased loss of £7 million (six months to 30 June 2007: £4 million loss) reflects the new regional costs.
