Aviva plc: Adoption of Aviva Market Consistent Embedded Value (MCEV) methodology and impact on results
G – Shareholders' equity
The reported value of shareholders' funds has reduced under the MCEV basis, as a result of changes described in Section H.
The value of shareholders' funds attributable to non-life businesses are unaffected by the new MCEV methodology, but have reduced due to restatement changes and changes to the IFRS accounting for latent claims described in Section D.
| MCEV Restated 6 months 2008 £m |
EEV Reported 6 months 2008 £m |
MCEV Restated Full year 2007 £m |
EEV Reported Full year 2007 £m |
|
|---|---|---|---|---|
| Reviewed | Reviewed | Audited | Audited | |
| Embedded Value (including minority interests) | 18,579 | 19,867 | 20,096 | 20,319 |
| Goodwill and intangible assets allocated to long-term business | 2,495 | 2,335 | 2,359 | 2,253 |
| Notional allocation of IAS 19 pension fund deficit to long-term business | (140) | (140) | (58) | (58) |
| Minority interest in property investment vehicles | – | 838 | – | 758 |
| Long-term business net assets | 20,934 | 22,900 | 22,397 | 23,272 |
| General insurance and other net assets | 282 | 347 | 1,292 | 1,302 |
| Total equity | 21,216 | 23,247 | 23,689 | 24,574 |
| Preference share capital and direct capital instruments | (1,190) | (1,190) | (1,190) | (1,190) |
| Minority interests | (2,637) | (3,385) | (2,501) | (3,131) |
| Equity attributable to ordinary shareholders of Aviva plc | 17,389 | 18,672 | 19,998 | 20,253 |
| Net asset value per share | 654p | 702p | 763p | 772p |
