Aviva plc: Adoption of Aviva Market Consistent Embedded Value (MCEV) methodology and impact on results
Summarised consolidated income statement – MCEV basis
| Reviewed 6 months 2008 £m |
Audited Full year 2007 £m |
|
|---|---|---|
| Operating profit before tax attributable to shareholders’ profits | ||
| Life MCEV operating earnings | 1,280 | 2,544 |
| Fund management1 | 30 | 90 |
| General insurance and health | 528 | 1,021 |
| Other: | ||
| Other operations and regional costs2 | (57) | (70) |
| Corporate centre | (71) | (157) |
| Group debt costs and other interest | (201) | (363) |
| Operating profit before tax attributable to shareholders’ profits | 1,509 | 3,065 |
| Adjusted for the following: | ||
| Economic variances on long-term business | (4,086) | (19) |
| Short-term fluctuation in return of investments backing general insurance and health business | (314) | (184) |
| Economic assumption changes on general insurance and health business | 6 | 2 |
| Impairment of goodwill | (42) | (10) |
| Amortisation and impairment of intangibles | (44) | (89) |
| Profit on the disposal of subsidiaries and associates | 9 | 20 |
| Integration and restructuring costs | (132) | (153) |
| Exceptional items | (155) | – |
| (Loss)/profit before tax | (3,249) | 2,632 |
| Tax on operating earnings | (453) | (924) |
| Tax on other activities | 1,341 | 238 |
| (Loss)/profit for the period | (2,361) | 1,946 |
| Attributable to: | ||
| Equity shareholders of Aviva plc | (2,401) | 1,704 |
| Minority interests | 40 | 242 |
| (2,361) | 1,946 |
All profit is from continuing operations.
- Excludes the proportion of the results of Aviva Investors fund management businesses and other fund management operations within the Group that arises from the provision of fund management services to our Life businesses. These results are included within the Life MCEV operating earnings consistent with Aviva’s MCEV methodology.
- Excludes the proportion of the results of subsidiaries providing services to the Life business. These results are included within the life MCEV operating earnings.
