Aviva plc: Adoption of Aviva Market Consistent Embedded Value (MCEV) methodology and impact on results
Independent auditors' report to the directors of Aviva plc on the consolidated Market Consistent Embedded Value financial statements for the six months ended 30 June 2008
We have been engaged by the Company to review the half-yearly consolidated Aviva MCEV financial statements for the six months ended 30 June 2008 which comprises the Summarised Consolidated Income Statement, the Consolidated Statement of Recognised Income and Expense, and the Group MCEV Analysis of Earnings for the six months ended 30 June 2008; the Reconciliation of Movements in Consolidated Shareholders’ Equity, the Summarised Consolidated Balance Sheet, the Reconciliation between Shareholders’ equity on an IFRS basis and an MCEV basis and the Segmentation of summarised consolidated balance sheet as at 30 June 2008 together with the related notes; and the sections on adoption of adoption of Aviva market consistent embedded value methodology and impact on results and the statistical supplement. The half-yearly consolidated Aviva MCEV financial statements have been prepared in accordance with the basis of preparation.
We have reported separately on the condensed financial statements of Aviva plc for the six months ended 30 June 2008. The information contained in the consolidated Aviva MCEV financial statements should be read in conjunction with the financial statements prepared on an IFRS basis. This information is described within the half-yearly consolidated Aviva MCEV financial statements as having being reviewed.
This report is made solely to the Company in accordance with guidance contained in ISRE 2410 (UK and Ireland) “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Auditing Practice Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our work, for this report, or for the conclusions we have formed.
Directors' Responsibilities
The half-yearly consolidated Aviva MCEV financial statements are the responsibility of, and have been approved by, the directors. The Directors are responsible for preparing the half-yearly consolidated Aviva MCEV financial statements in accordance with the basis of preparation.
Our Responsibility
Our responsibilities, as independent auditors, in relation to the half-yearly consolidated Aviva MCEV financial statements are set out in our engagement letter with you dated 23 January 2008. We report to you our opinion as to whether the half-yearly consolidated Aviva MCEV financial statements have been properly prepared, in all material respects, in accordance with the basis of preparation.
We read other information contained in the Aviva MCEV announcement and consider whether it is consistent with the consolidated Aviva MCEV financial statements.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review consists of making enquiries, primarily with Group management and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the half-yearly consolidated Aviva MCEV financial statements for the six months ended 30 June 2008 are not prepared, in all material respects, in accordance with the basis of preparation.
Ernst & Young LLP
London
Date: 3 February 2009
