Aviva plc: Adoption of Aviva Market Consistent Embedded Value (MCEV) methodology and impact on results

Reconciliation between shareholders’ equity on an IFRS basis and an MCEV basis

	Reviewed 30 June 2008
	IFRS £m	Adjustment £m	MCEV £m
Ordinary share capital	664	–	664
Capital reserves	4,516	–	4,516
Other reserves	1,211	390	1,601
Shares held by employee trusts	(10)	–	(10)
Retained earnings	5,244	–	5,244
Additional retained earnings on an MCEV basis	–	5,374	5,374
Equity attributable to ordinary shareholders of Aviva plc	11,625	5,764	17,389
Preference share capital	200	–	200
Direct capital instruments	990	–	990
Minority interests	1,859	778	2,637
Total equity	14,674	6,542	21,216

	Audited 31 December 2007
	IFRS £m	Adjustment £m	MCEV £m
Ordinary share capital	655	–	655
Capital reserves	4,494	–	4,494
Other reserves	1,469	(290)	1,179
Shares held by employee trusts	(10)	–	(10)
Retained earnings	6,338	–	6,338
Additional retained earnings on an MCEV basis	–	7,342	7,342
Equity attributable to ordinary shareholders of Aviva plc	12,946	7,052	19,998
Preference share capital	200	–	200
Direct capital instruments	990	–	990
Minority interests	1,795	706	2,501
Total equity	15,931	7,758	23,689

	Audited 31 December 2006
	IFRS £m	Adjustment £m	MCEV £m
Ordinary share capital	641	–	641
Capital reserves	4,460	–	4,460
Other reserves	992	(462)	530
Retained earnings	5,195	–	5,195
Additional retained earnings on an MCEV basis	–	6,610	6,610
Equity attributable to ordinary shareholders of Aviva plc	11,288	6,148	17,436
Preference share capital	200	–	200
Direct capital instruments	990	–	990
Minority interests	1,267	550	1,817
Total equity	13,745	6,698	20,443