IFRS condensed financial statements
A21 - Cost savings commitments for targets announced since October 2007
This note provides details of the group's published commitments to deliver cost savings, and represents an update on the information provided at full year 2008.
|
Movement in cost savings target (recurring, annualised savings) |
Cost savings targets b/fwd £m |
New targets announced in year £m |
Less: Cost savings achieved £m |
Changes to the phasing of saving £m |
Savings over/ (under) delivered £m |
Impact of economic changes on targets c/fwd £m |
Cost savings targets c/fwd £m |
|---|---|---|---|---|---|---|---|
| Savings expected to be achieved in: | |||||||
| Six months ended 30 June 2009 | 90 | - | (89) | - | (2) | 1 | - |
| Six months ended 31 December 2009 | 62 | - | - | - | 3 | 1 | 66 |
| Year ended 31 December 2010 | 55 | - | - | - | 1 | 1 | 57 |
| Savings to be achieved | 207 | - | (89) | - | 2 | 3 | 123 |
| Savings achieved in prior years: | 340 | 429 | |||||
| Total savings | 547 | 552 | |||||
Targets brought forward include £123 million for Aviva UK General Insurance, £65 million for Aviva UK Life and £19 million for Europe.
|
Movement in initial costs to deliver Cost savings targets (total expenses incurred) |
Costs to deliver b/fwd £m |
Cost of delivery of new targets in year £m |
Less: Costs incurred in year £m |
Changes to the phasing of costs £m |
Change in costs of delivery £m |
Impact of economic changes on targets c/fwd £m |
Costs to deliver c/fwd £m |
|---|---|---|---|---|---|---|---|
| Costs expected to be incurred in: | |||||||
| Six months ended 30 June 2009 | 111 | - | (76) | (26) | (10) | 1 | - |
| Six months ended 31 December 2009 | 108 | - | - | 17 | 3 | - | 128 |
| Year ended 31 December 2010 | 33 | - | - | 9 | (13) | 2 | 31 |
| Costs to be incurred | 252 | - | (76) | - | (20) | 3 | 159 |
| Costs incurred in prior years: | 369 | 445 | |||||
| Total costs | 621 | 604 | |||||
All £76 million of costs incurred in the year were classified as restructuring costs in the income statement.
1 Cost savings initiatives included in this note are supported by detailed operational implementation plans, which identify the activities, timeframe and expected costs of delivering the planned initiatives.
2 Cost savings targets brought forward represent commitments made in prior years that are due to be delivered in 2009 or future periods. Cost savings targets brought forward were measured at the value of the relevant recurring costs in the period ended 30 June 2009. All cost saving targets carried forward have been restated to the value of the relevant recurring costs in the period ended 30 June 2009. For half year 2009, this reflects the effect of exchange rates on European targets.
3 Cost savings "achieved" are the annualised, recurring costs delivered in the period ended 30 June 2009.
4 Initial costs to deliver cost savings targets are the total one-off costs that will be required to complete and deliver announced cost savings programmes. They are measured at the real value of the initial costs expected to be incurred.
