Aviva enters S Korea market

Aviva PLC
31 January 2008



31 January 2008


News release



                AVIVA ENTERS SOUTH KOREA LIFE INSURANCE MARKET



Aviva plc ('Aviva') announces that it is to enter the South Korea life insurance
market by forming a consortium with Woori Finance Holdings Company Ltd. ('Woori
').  The consortium has entered into a definitive agreement with LIG Insurance
Co. Ltd and seven individual shareholders to acquire a 91.65% stake in LIG Life
Insurance Co. Ltd ('LIG Life'), a South Korean life insurance company, for a
consideration of KRW 137.17 billion (£73.0 million*) in cash.  After completion
Aviva will hold 40.65% of LIG Life.



LIG Life distributes life insurance products through multiple distribution
channels and focuses on the Busan metropolitan area located in the south-eastern
region of South Korea.  It reported life insurance premium income of KRW 328
billion# (£183.4 million^) and total assets of KRW 1,300 billion# (£702.4
million^) for the year ended 31 March 2007.



Aviva and Woori plan to develop LIG Life's business distribution predominantly
through bancassurance via Woori's banking network and independent financial
advisors (IFAs), a rapidly growing distribution channel.



Simon Machell, chief executive of Aviva Asia Pacific, commented: 'South Korea is
the second largest life insurance market in Asia in terms of premium income and,
with Aviva aiming to significantly increase its presence in Asia, a foothold in
this market is a logical step.



'Our strategy is to grow our global customer reach and deliver average annual
growth of 20% in the Asia Pacific region.  Already 8% of Aviva's total sales
come from our rapidly growing businesses in Asia.  LIG Life will enable Aviva to
roll out its global bancassurance expertise in South Korea in conjunction with
Woori, one of the country's largest financial institutions.'



The closing of the transaction, which is subject to regulatory approval, is
expected to take place in the first half of 2008.

                                     -ends-

Enquiries:


Media

Hayley Stimpson, director of group media relations          [phone]
Sue Winston, head of group media relations                  [phone]
Danielle Anthony, group senior media relations manager      [phone]



Analysts
Charles Barrows, investor relations director                [phone]
Susie Yeoh, investor relations manager                      [phone]



*At an exchange rate of 1,878.91 GBP/KRW

# Audited Korean GAAP figures from the financial statements of LIG Life
Insurance Co. Ltd. for the fiscal year ended 31st March 2007

^ At exchange rates for 1st April 2006 to 31st March 2007: average rate of
1,790.05 GBP/KRW and closing rate of 1,850.91 GBP/KRW



Notes to Editors



•                South Korea is the second largest life insurance market in Asia
in terms of premium income.

•                Premium income for the entire industry stood at KRW 66,455
billion (£35.8 billion*) for the fiscal year ended 31st March 2007.

•                The market has grown at a compounded annual growth rate of
9.66% over the last three years in terms of premium income.

•                Aviva is the leading provider of life and pensions products in
Europe with substantial positions in other markets around the world, making it
the world's fifth largest insurance group based on gross worldwide premiums for
the 12 months to 31 December 2006.

•                Aviva's principal business activities are long-term savings,
fund management and general insurance, with total worldwide sales of £41.5
billion and assets under management of £364 billion at 31 December 2006.

•                In Asia Pacific Aviva operates in Australia, China, India, Sri
Lanka, Singapore, Hong Kong, Malaysia, Taiwan and the Middle East.

•                The Aviva media centre at www.aviva.com/media includes images,
company and product information and a news release archive.

•                Woori Finance Holdings Company Ltd. was founded in April 2001,
listed on the KRX (Korea Exchange) as South Korea's first financial holding
company (FHC) and listed on the NYSE in September 2003. WFHC is among South
Korea's largest companies, it operates securities and asset management
businesses in addition to the banking business. Woori Bank, its largest
subsidiary, is the second largest bank by asset size. Woori Bank had over 15m
customers as of 30th September 2007.

•                LIG Insurance Co., Ltd. was established in Seoul, South Korea
in 1959 as the Pan Korea Insurance Co., Ltd. The company's name was changed to
LIG Insurance in April 2006. LIG Insurance offers a variety of non-life
insurance products for individual and institutional customers. It is listed on
the KRX (Korea Exchange) and had a market capitalisation of KRW 1,047 billion
(£557.02 million*) at the close of market on 29th January 2008.



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