At the time of publishing its 2003 preliminary results on 25 February 2004, Aviva plc will report its statutory consolidated balance sheet based on MSSB (modified statutory solvency basis) net assets.
At the time of publishing its 2003 preliminary results on 25 February 2004, Aviva plc will report its statutory consolidated balance sheet based on MSSB (modified statutory solvency basis) net assets. In addition, Aviva will continue to report a consolidated balance sheet on the achieved profits basis, which includes MSSB net assets and AVIF (the additional value of in-force business from long-term savings) because this provides a more realistic measure of the economic value of the group.
The presentation of the statutory balance sheet on a MSSB basis reflects the requirements of the recently issued ABI SORP (statement of recommended practice) on accounting for insurance businesses and is in line with other major UK insurers reporting on both bases.
The reporting change has no impact on the capital adequacy, the credit ratings or the profitability of the group.
Total shareholders’ funds under both bases for prior periods are as follows:
| Achieved profits shareholders’ funds (Łm) | MSSB shareholders’ funds (Łm) | ||
| 30 June 2003 | 10,419 | 6,477 | |
| 31 Dec 2002 | 9,669 | 5,837 | |
| 31 Dec 2001 | 11,752 | 6,484 |
Note
| 1. | The difference between achieved profits shareholders’ funds and the MSSB shareholders’ funds is the value of internally generated AVIF from the long-term savings business, net of minority interests of Ł101m at 30 June 2003, Ł85m at 31 December 2002 and Ł81m at 31 December 2001. |
| 2. | MSSB shareholders’ funds has previously been reported as a note to the audited financial statements. |
Enquiries:
Analysts
Nic Nicandrou, Group Financial Reporting Director, +44 (0)20 7662 2118
Media
Hayley Stimpson, Director of External Affairs, +44 (0)20 7662 7544
Alex Child-Villiers, Financial Dynamics, +44 (0)20 7269 7107