Aviva plc: Adoption of Aviva Market Consistent Embedded Value (MCEV) methodology and impact on results
Reconciliation of segmental analysis of value of new business – EEV basis to MCEV basis
| Value of new business Reviewed 6 months 2008 | EEV basis as reported1 £m |
Operational assumption changes £m |
Economic changes £m |
Changes to required capital £m |
Cost of nonhedgeable risk £m |
Other impact £m |
MCEV basis1 £m |
Less tax and minority interest £m |
MCEV basis2 £m |
|---|---|---|---|---|---|---|---|---|---|
| United Kingdom3 | 154 | (1) | (77) | (1) | (15) | 13 | 73 | (20) | 53 |
| France | 52 | - | 25 | 1 | (10) | 1 | 69 | (31) | 38 |
| Ireland | 2 | - | 8 | - | (2) | - | 8 | (2) | 6 |
| Italy | 29 | - | 8 | (1) | - | (1) | 35 | (23) | 12 |
| Netherlands (including Belgium and Germany) | 15 | 4 | (33) | (6) | (9) | (8) | (37) | 6 | (31) |
| Poland | 18 | 6 | 11 | - | (3) | (1) | 31 | (9) | 22 |
| Spain | 124 | (7) | 24 | - | (10) | (1) | 130 | (87) | 43 |
| Other Europe | 5 | - | 15 | - | (1) | - | 19 | (3) | 16 |
| Europe | 245 | 3 | 58 | (6) | (35) | (10) | 255 | (149) | 106 |
| North America | 68 | - | (71) | (4) | (5) | 4 | (8) | 3 | (5) |
| Asia | 15 | - | 20 | - | (1) | (8) | 26 | (5) | 21 |
| Australia | 6 | - | 3 | - | (3) | - | 6 | (2) | 4 |
| Asia Pacific | 21 | - | 23 | - | (4) | (8) | 32 | (7) | 25 |
| Total | 488 | 2 | (67) | (11) | (59) | (1) | 352 | (173) | 179 |
- Gross of tax and minority interests
- Net of tax and minority interests
| Value of new business Audited 31 December 2007 | EEV basis as reported1 £m |
Operational assumption changes £m |
Economic changes £m |
Changes to required capital £m |
Cost of nonhedgeable risk £m |
Other impact £m |
MCEV basis1 £m |
Less tax and minority interest £m |
MCEV basis2 £m |
|---|---|---|---|---|---|---|---|---|---|
| United Kingdom3 | 305 | (27) | 7 | (3) | (26) | 22 | 278 | (83) | 195 |
| France | 117 | - | 54 | 1 | (19) | (8) | 145 | (64) | 81 |
| Ireland | 25 | - | 15 | - | (3) | - | 37 | (11) | 26 |
| Italy | 61 | - | 19 | - | (3) | - | 77 | (57) | 20 |
| Netherlands (including Belgium and Germany) | 53 | (1) | (22) | (6) | (9) | (7) | 8 | (5) | 3 |
| Poland | 32 | 6 | 15 | - | (5) | - | 48 | (14) | 34 |
| Spain | 173 | (13) | 37 | - | (12) | (4) | 181 | (124) | 57 |
| Other Europe | (5) | - | 15 | - | - | (4) | 6 | (2) | 4 |
| Europe | 456 | (8) | 133 | (5) | (51) | (23) | 502 | (277) | 225 |
| North America | 108 | - | (38) | (8) | (6) | (4) | 52 | (18) | 34 |
| Asia | 27 | - | 32 | - | (4) | (6) | 49 | (10) | 39 |
| Australia | 16 | - | 4 | - | (4) | - | 16 | (5) | 11 |
| Asia Pacific | 43 | - | 36 | - | (8) | (6) | 65 | (15) | 50 |
| Total | 912 | (35) | 138 | (16) | (91) | (11) | 897 | (393) | 504 |
- Gross of tax and minority interests
- Net of tax and minority interests
