Aviva plc: Adoption of Aviva Market Consistent Embedded Value (MCEV) methodology and impact on results
Reconciliation of segmental analysis of embedded value – EEV basis to MCEV basis
| Embedded value Reviewed 30 June 2008 |
EEV basis as reported1 £m |
Operational assumption changes £m |
Economic
changes £m |
Changes to required capital £m |
Cost of non hedgeable risk £m |
Other impact £m |
MCEV basis1 £m |
Less minority interest £m |
MCEV basis £m |
|---|---|---|---|---|---|---|---|---|---|
| United Kingdom | 6,547 | (134) | (407) | (8) | (155) | (67) | 5,776 | - | 5,776 |
| France | 2,602 | - | 178 | 9 | (145) | (64) | 2,580 | (243) | 2,337 |
| Ireland | 1,036 | (2) | 121 | - | (23) | 10 | 1,142 | (279) | 863 |
| Italy | 1,171 | - | 88 | (10) | (15) | (13) | 1,221 | (620) | 601 |
| Netherlands (including Belgium and Germany) | 3,759 | (6) | (133) | (45) | (81) | 2 | 3,496 | (159) | 3,337 |
| Poland | 1,014 | 165 | 223 | - | (80) | (17) | 1,305 | (169) | 1,136 |
| Spain | 1,182 | (36) | 58 | - | (48) | (2) | 1,154 | (520) | 634 |
| Other Europe | 185 | - | 29 | - | (4) | 1 | 211 | - | 211 |
| Europe | 10,949 | 121 | 564 | (46) | (396) | (83) | 11,109 | (1,990) | 9,119 |
| North America | 1,714 | (70) | (622) | (32) | (28) | 12 | 974 | - | 974 |
| Asia | 358 | (10) | 77 | - | (7) | (2) | 416 | (12) | 404 |
| Australia | 299 | - | 23 | - | (18) | - | 304 | - | 304 |
| Asia Pacific | 657 | (10) | 100 | - | (25) | (2) | 720 | (12) | 708 |
| Total | 19,867 | (93) | (365) | (86) | (604) | (140) | 18,579 | (2,002) | 16,577 |
| Embedded value Audited 31 December 2007 | EEV basis as reported1 £m |
Operational assumption changes £m |
Economic
changes £m |
Changes to required capital £m |
Cost of non hedgeable risk £m |
Other impact £m |
MCEV basis1 £m |
Less minority interest £m |
MCEV basis £m |
|---|---|---|---|---|---|---|---|---|---|
| United Kingdom | 7,106 | (142) | 183 | (10) | (153) | (73) | 6,911 | - | 6,911 |
| France | 2,660 | - | 208 | 12 | (137) | 28 | 2,771 | (235) | 2,536 |
| Ireland | 999 | (2) | 114 | - | (21) | 1 | 1,091 | (266) | 825 |
| Italy | 1,007 | - | 66 | (9) | (22) | (2) | 1,040 | (551) | 489 |
| Netherlands (including Belgium and Germany) | 4,176 | (21) | (122) | (35) | (73) | 49 | 3,974 | (158) | 3,816 |
| Poland | 942 | 143 | 191 | - | (70) | (9) | 1,197 | (154) | 1,043 |
| Spain | 1,048 | (33) | 72 | - | (41) | (4) | 1,042 | (472) | 570 |
| Other Europe | 156 | - | 23 | - | (2) | 1 | 178 | - | 178 |
| Europe | 10,988 | 87 | 552 | (32) | (366) | 64 | 11,293 | (1,836) | 9,457 |
| North America | 1,588 | (69) | (308) | (27) | (27) | 49 | 1,206 | - | 1,206 |
| Asia | 337 | (10) | 71 | - | (6) | (13) | 379 | (12) | 367 |
| Australia | 300 | - | 23 | - | (16) | - | 307 | - | 307 |
| Asia Pacific | 637 | (10) | 94 | - | (22) | (13) | 686 | (12) | 674 |
| Total | 20,319 | (134) | 521 | (69) | (568) | 27 | 20,096 | (1,848) | 18,248 |
| Embedded value Audited 31 December 2006 | EEV basis as reported1 £m |
Operational assumption changes £m |
Economic
changes £m |
Changes to required capital £m |
Cost of non hedgeable risk £m |
Other impact £m |
MCEV basis1 £m |
Less minority interest £m |
MCEV basis £m |
|---|---|---|---|---|---|---|---|---|---|
| United Kingdom | 6,636 | (201) | 278 | 37 | (145) | (70) | 6,535 | - | 6,535 |
| France | 2,291 | - | 168 | 10 | (125) | 11 | 2,355 | (180) | 2,175 |
| Ireland | 892 | (2) | 100 | - | (19) | 5 | 976 | (237) | 739 |
| Italy | 792 | - | 63 | - | (12) | (3) | 840 | (441) | 399 |
| Netherlands (including Belgium and Germany) | 3,867 | - | (304) | (25) | (67) | 75 | 3,546 | (125) | 3,421 |
| Poland | 719 | 143 | 141 | - | (52) | (4) | 947 | (122) | 825 |
| Spain | 857 | (30) | 100 | - | (34) | 1 | 894 | (383) | 511 |
| Other Europe | 106 | - | 28 | - | (2) | - | 132 | - | 132 |
| Europe | 9,524 | 111 | 296 | (15) | (311) | 85 | 9,690 | (1,488) | 8,202 |
| North America | 1,478 | (62) | (6) | (28) | (20) | (94) | 1,268 | - | 1,268 |
| Asia | 209 | (3) | 34 | - | (3) | 13 | 250 | (10) | 240 |
| Australia | 251 | - | 22 | - | (12) | - | 261 | - | 261 |
| Asia Pacific | 460 | (3) | 56 | - | (15) | 13 | 511 | (10) | 501 |
| Total | 18,098 | (155) | 624 | (6) | (491) | (66) | 18,004 | (1,498) | 16,506 |
- Gross of minority interests
