Supplemental balance sheet information – MCEV basis
|
2008 £m |
Restated 2007 £m |
|
|---|---|---|
| Equity attributable to ordinary shareholders of Aviva plc – IFRS basis | 11,052 | 12,946 |
| Adjustment to other reserves | 1,429 | (290) |
| Additional retained profit on an MCEV basis | 431 | 7,342 |
| Equity attributable to ordinary shareholders of Aviva plc – MCEV basis | 12,912 | 19,998 |
| Preference share capital and direct capital instrument | 1,190 | 1,190 |
| Minority interests | 3,013 | 2,501 |
| Total equity – MCEV basis | 17,115 | 23,689 |
Approved by the Board on 4 March 2009
Philip Scott
Chief Financial Officer
As announced in February 2009, the Group has adopted a market consistent embedded value methodology (MCEV) for supplementary life reporting. This replaces the European Embedded Value basis (EEV) we have previously used. We have restated the 2007 balance sheet and results accordingly. There is no change to the underlying fundamentals or economics of our business as a result of adopting MCEV; it merely provides a further perspective on the business, particularly for internal capital allocation purposes. Aviva’s Market Consistent Embedded Value methology is in accordance with the MCEV Principles published by the CFO Forum in June 2008 with the exception of the use of an adjusted risk-free yield due to current market conditions for immediate annuities in the UK and the Netherlands and all US contracts. Full details of our methodology can be found in the Annual Report and Accounts on the company website.