Aviva plc: Adoption of Aviva Market Consistent Embedded Value (MCEV) methodology and impact on results
Reconciliation of segmental analysis of Group operating earnings – EEV basis to MCEV basis
| Group operating earnings Reviewed 6 months 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 tax and minority interest £m |
MCEV basis2 £m |
|---|---|---|---|---|---|---|---|---|---|
| United Kingdom3 | 471 | 18 | (80) | 2 | (16) | 22 | 417 | (117) | 300 |
| France | 297 | - | (70) | - | - | 14 | 241 | (97) | 144 |
| Ireland | 30 | - | 13 | - | - | (3) | 40 | (15) | 25 |
| Italy | 89 | - | 3 | - | 11 | (2) | 101 | (67) | 34 |
| Netherlands (including Belgium and Germany) | 139 | 42 | (162) | (3) | (1) | 20 | 35 | (20) | 15 |
| Poland | 103 | 5 | 15 | - | (3) | (6) | 114 | (33) | 81 |
| Spain | 157 | 1 | 22 | - | (5) | (2) | 173 | (113) | 60 |
| Other Europe | 8 | - | 12 | - | - | 4 | 24 | (4) | 20 |
| Europe | 823 | 48 | (167) | (3) | 2 | 25 | 728 | (349) | 379 |
| North America | 139 | (10) | (56) | (7) | 2 | 6 | 74 | (26) | 48 |
| Asia | 23 | (12) | 29 | - | - | (6) | 34 | (6) | 28 |
| Australia | 24 | - | 6 | - | (2) | (1) | 27 | (8) | 19 |
| Asia Pacific | 47 | (12) | 35 | - | (2) | (7) | 61 | (14) | 47 |
| Total | 1,480 | 44 | (268) | (8) | (14) | 46 | 1,280 | (506) | 774 |
- Gross of tax and minority interests
- Net of tax and minority interests
| Group operating earnings Audited Full year 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 tax and minority interest £m |
MCEV basis2 £m |
|---|---|---|---|---|---|---|---|---|---|
| United Kingdom | 864 | 81 | (26) | (67) | (9) | (21) | 822 | (247) | 575 |
| France | 537 | - | 2 | 1 | - | 28 | 568 | (227) | 341 |
| Ireland | 77 | - | 10 | - | (2) | - | 85 | (30) | 55 |
| Italy | 137 | - | 5 | (7) | (11) | 13 | 137 | (99) | 38 |
| Netherlands (including Belgium and Germany) | 352 | - | (20) | (3) | (2) | (11) | 316 | (99) | 217 |
| Poland | 206 | - | (25) | - | - | - | 181 | (52) | 129 |
| Spain | 239 | (7) | 8 | 1 | (7) | (1) | 233 | (158) | 75 |
| Other Europe | (5) | (16) | 8 | (2) | (1) | (1) | (17) | 5 | (12) |
| Europe | 1,543 | (23) | (12) | (10) | (23) | 28 | 1,503 | (660) | 843 |
| North America | 255 | - | (103) | (11) | (12) | (5) | 124 | (44) | 80 |
| Asia | 43 | (12) | 3 | 1 | (2) | 12 | 45 | (11) | 34 |
| Australia | 48 | - | 5 | 1 | (3) | (1) | 50 | (15) | 35 |
| Asia Pacific | 91 | (12) | 8 | 2 | (5) | 11 | 95 | (26) | 69 |
| Total | 2,753 | 46 | (133) | (86) | (49) | 13 | 2,544 | (977) | 1,567 |
- Gross of tax and minority interests
- Net of tax and minority interests