Life New Business Q4 2007

Aviva PLC 06 February 2008 6 February 2008 Aviva plc Worldwide long-term savings new business 12 months to 31 December 2007 • Total worldwide sales* up 25%** to £38,583 million • Worldwide life and pensions sales up 22% to £31,600 million • UK; total sales up by 6% to £14,406 million • Europe; total sales growth of 19% to £16,486 million • North America; excellent performance with pro forma*** 39% increase in total sales to £3,602 million • Asia Pacific; ahead of growth targets with total sales up 60% to £4,089 million • Investment sales continue to deliver robust growth - up 41% to £6,983 million • Update on UK adverse weather and group COR: estimated cost increased by £75 million to £475 million and COR of 100%, 95% before the impact of the exceptional adverse weather Andrew Moss, group chief executive, commented: 'In line with our priority of focusing on growing our existing businesses, I'm very pleased to report that Aviva has achieved total sales growth of 25% in 2007. In Europe, we've delivered impressive growth across our portfolio, and in the US we're on track to double our sales within three years of our acquisition of AmerUs. Asia Pacific has shown exceptionally strong growth and the region now accounts for around 11% of the group's sales. UK growth is in line with the market and our priority there remains to focus on profitability. 'Following the exceptional weather conditions in the UK in June and July last year, our general insurance business has helped 45,000 households and 6,000 businesses get back on their feet after the floods. The costs of these events will be higher than we first estimated and, as expected, the floods have had an impact on the group's full year COR. I'm pleased to say that without these exceptional claims we would have achieved a COR of 95%,some 3% better than our 'meet or beat' target. 'Aviva has a broad portfolio of products across the world. While our markets will be affected by the current economic uncertainty, I believe we will continue to grow both new business sales and profit in 2008 in line with our stated targets. We will do this by maintaining a strong focus on increasing our customer reach and delivering our 'One Aviva, twice the value' vision.' Financial highlights 12 months to 12 months to Local 31 December 31 December currency 2007 2006 growth** Aviva UK Life and pensions new business sales £11,655m £11,146m 5% Investment sales £2,751m £2,455m 12% -------------------------------------------------- Total long-term savings new business sales £14,406m £13,601m 6% -------------------------------------------------- Aviva Europe Life and pensions new business sales £14,914m £12,840m 15% Investment sales £1,572m £891m 74% ------------------------------------------------- Total long-term savings new business sales £16,486m £13,731m 19% ------------------------------------------------- Aviva North America Life and pensions new business sales £3,602m £884m 343% Investment sales - - - ------------------------------------------------ Total long-term savings new business sales £3,602m £884m 343% ------------------------------------------------ Aviva Asia Pacific Life and pensions new business sales £1,429m £982m 49% Investment sales £2,660m £1,564m 67% ------------------------------------------------- Total long-term savings new business sales £4,089m £2,546m 60% ------------------------------------------------- Aviva Group Life and pensions new business sales £31,600m £25,852m 22% Investment sales £6,983m £4,910m 41% ------------------------------------------------- Total long-term savings new business sales £38,583m £30,762m 25% ------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- Page 2 Footnotes to the worldwide long-term savings new business highlights: * All references to sales in this announcement refer to the present value of new business premiums (PVNBP) unless otherwise stated. PVNBP is the present value of new regular premiums plus 100% of single premiums, calculated using assumptions consistent with those used to determine new business contribution. ** All growth rates are quoted in local currency. *** Pro forma increases are based upon the combined sales for the former Aviva business based in Boston and the former AmerUs Group for the 2006 year and are stated on a local currency basis. Enquiries: Analysts/Investors: Andrew Moss, group chief executive, Aviva +44 (0)20 7662 2888 Philip Scott, group finance director, Aviva +44 (0)20 7662 2264 Charles Barrows, investor relations director, Aviva +44 (0)20 7662 8115 Jessie Burrows, head of investor relations, Aviva +44 (0)20 7662 2111 Media: Hayley Stimpson, director of external affairs +44 (0)20 7662 7544 Sue Winston, head of group media relations +44 (0)20 7662 8221 Vanessa Rhodes, group media relations manager +44 (0)20 7662 2482 James Murgatroyd/Ed Simpkins, Finsbury +44 (0)20 7251 3801 There will be a conference call today for wire services at 7.45am (GMT) on +44(0)20 7162 0125 (quoting 'Aviva, Andrew Moss'). This conference call will be hosted by Andrew Moss, group chief executive, and attended by Philip Scott, group finance director, and Mark Hodges, chief executive, UK Life. There will be a conference call today for analysts and investors at 09:30am(GMT) on +44 (0)20 7162 0126 (quoting 'Aviva, Andrew Moss'). This conference call will be hosted by Andrew Moss, group chief executive, and attended by Philip Scott, group finance director, and Mark Hodges, chief executive, UK Life. Replay will be available until 22 February 2008. The dial in number for replays is +44 (0)20 7031 4064 and the pass code is 655729. Photographs are available on the Aviva media centre at www.aviva.com. ------------------------------------------------------------------------------------------------------------------------ Page 3 Present value of new business premiums* ---------------------------------------- Local 12 months 12 months currency 2007 2006 growth** £m £m Life and pensions business United Kingdom 11,655 11,146 5% France 3,662 3,552 2% Ireland 1,730 1,273 35% Italy 2,924 2,768 5% Netherlands (including Germany and Belgium) 2,944 2,346 25% Poland 844 534 53% Spain 2,392 2,059 15% Other Europe*** 418 308 40% Europe 14,914 12,840 15% North America 3,602 884 343% Asia 990 685 51% Australia 439 297 44% Asia Pacific 1,429 982 49% --------------------------------------------------------------------------------------------------------------------- Total life and pensions 31,600 25,852 22% ===================================================================================================================== Investment sales# United Kingdom 2,751 2,455 12% Netherlands 811 285 183% Poland 268 131 97% Other Europe 493 475 3% Europe 1,572 891 74% Australia 1,961 1,303 47% Singapore 699 261 175% Asia Pacific 2,660 1,564 67% --------------------------------------------------------------------------------------------------------------------- Total investment sales 6,983 4,910 41% --------------------------------------------------------------------------------------------------------------------- Total long-term savings 38,583 30,762 25% ===================================================================================================================== Navigator sales 2,465 1,371 77% (included above) * All references to sales in this announcement refer to the present value of new business premiums (PVNBP) unless otherwise stated. PVNBP is the present value of new regular premiums plus 100% of single premiums, calculated using assumptions consistent with those used to determine new business contribution. ** All growth rates are quoted in local currency. *** 'Other Europe' is made up of the Czech Republic, Hungary, Romania, Russia and Turkey # Investment sales are calculated as new single premium plus the annualised value of new regular premiums. ------------------------------------------------------------------------------------------------------------------------ Page 4 Overview Aviva continued to deliver strong growth in the 12 months to 31 December 2007, with total long-term savings new business sales up 25% to £38,583 million (2006: £30,762 million), which on a pro forma basis (adjusting for the impact of the AmerUs acquisition), represents growth in total new business sales of 18%. This increase reflects 22% growth in life and pension sales to £31,600 million (2006: £25,852 million), and strong investment sales, up 41% to £6,983 million (2006: £4,910 million). Aviva UK delivered record sales with total sales increasing by 6% to £14,406 million (2006: £13,601 million) supported by significant increases in bond, annuity and collective investment sales. Within the total, life and pension new business sales grew by 5% to £11,655 million (2006: £11,146 million). Aviva Europe's total long-term savings new business sales increased by 19% to £16,486 million (2006: £13,731 million) reflecting strong growth from many of our businesses across the region. This overall increase includes 15% growth in life and pension sales to £14,914 million (2006: £12,840 million), and impressive growth in investment sales of 74% to £1,572 million (2006:£891 million). Our North America business delivered full year sales of £3,602 million (2006: £884 million) up 39%* on a pro forma basis (pro forma 2006: £2,821 million). This is an excellent result and represents a record full year sales performance. Aviva Asia Pacific continues to achieve a strong rate of growth in new business sales with total sales 60% higher at £4,089 million (2006: £2,546 million), driven primarily by strong Navigator sales across the region. Aviva UK Norwich Union generated record sales in 2007 despite tougher market conditions in the second half of the year. Total sales, including investments, were up by 6% to £14,406 million (2006: £13,601 million) benefiting from strong growth in bonds, annuities and collective investments. We successfully maintained our market share at 11.0% in the first nine months of 2007 (full year 2006: 10.9%)**, in line with our stated aim of growing at least in line with the market. Total pensions sales were £4,376 million (2006: £4,707 million) with individual pensions sales decreasing 10% to £3,305 million (2006: £3,682 million) as the A-Day effect tapered away. We believe that the individual pension market should offer a more differentiated service and we have enhanced our product range to provide three options: full-service SIPP***, 'SIPP-lite'#, which suits the needs of the majority of consumers at a more economical price, and stakeholder## products. For the full-service SIPP marketplace, we continue to invest in our Lifetime proposition, sales of which increased 199% to £518 million (2006: £173 million)###. To enhance our proposition in the 'SIPP-lite' market, we recently announced that from April our individual personal pension product will include an income drawdown capability and an increased fund choice. Existing customers will be offered a wider fund range and improved e-commerce facilities free of charge and will be upgraded automatically without the need to re-broke any policies. Our 'SIPP-lite' proposition meets consumer demand for features they need without having to pay for additional functionality they are unlikely to use. In the stakeholder market, we have re-aligned our pricing to reflect the more price competitive proposition that this segment requires. As a result of these actions, we now have a more balanced and competitive pensions range, tailored to meet the requirements of consumer needs in all market segments. Corporate pension sales increased by 4% to £1,071 million (2006: £1,025 million) as the trustee-based corporate pensions market remained active. We refreshed our defined benefit proposition at the end of the year and we therefore anticipate sales growth to continue into 2008. Bond sales were up 17% to £4,192 million (2006: £3,588 million). In the second half of the year, as more cautious investors sought both secured and low risk funds at a time of market uncertainty, we were able to capitalise on this opportunity through our broad fund offering. As a result, with-profit sales increased by 38% to £1,208 million (2006: £878 million), unit-linked sales were up 4% at £2,468 million (2006: 2,368 million) and sales of unit-linked offshore bonds more than doubled, up 107%, to £280 million (2006: £135 million). We expect the bond market to slow as potential changes to capital gains tax (CGT) legislation create uncertainty around unit-linked bond sales, with 2008 sales growth dependent on the result of this review. Collective investment sales increased by 12% to £2,751 million (2006: £2,455 million). Sales growth slowed in the second half of the year due to a decline in demand for UK commercial property funds. In response, we extended and diversified our fund offering and focused on improving the performance of our UK equity funds. * Pro forma increases are based upon the combined sales for the former Aviva business based in Boston and the former AmerUs Group for the 2006 year and are stated on a local currency basis. ** Total ABI market and latest available market share based on ABI total market data (including collective investments) on an APE basis. *** Full-service SIPP products are typically suited for the 'high net worth' market and offer an extensive range of funds (including property and exotic funds), flexible e-commerce for consumer and advisers, and income drawdown features. # 'SIPP-lite' products are typically suited for the 'mass-affluent' market and offer a reasonable fund range, e-commerce and drawdown facilities to fit with the needs of this segment where the sophistication of the full SIPP is not needed. ## Stakeholder products are typically suited for the 'lower end' market and offer a restricted fund range without e-enablement and income drawdown capability. ### Included in collective investments sales. ----------------------------------------------------------------------------------------------------------------------- Page 5 Annuity sales grew significantly by 30% to £1,965 million (2006: £1,511 million). We offer excellent service, remain competitively priced, and in November we refreshed our enhanced pension annuity proposition to meet the retirement needs of a wider range of customers. Enhanced annuity sales have exceeded expectations and the discrete fourth quarter sales were equivalent to those achieved in the whole of 2006. As part of our ambitions for the wider employee benefits market, we continue to secure more bulk purchase annuity (BPA) schemes and, in 2007, wrote 32 schemes at a value of £118 million, £64 million of which was written in the fourth quarter. The market has been and will remain extremely competitive and significant business volumes are transacted on terms which we regard as being uneconomic. We price selectively and will only write BPA business where the returns meet our profitability targets and where we can secure wider corporate benefits sales. Protection sales were 14% lower at £879 million (2006: £1,024 million) due to slowdowns in both the payment protection insurance and housing markets. As a result of our partnership with the Post Office and the launch of an over 50s life cover product, whole-of-life* sales increased 69% against the third quarter of 2007. We continue to develop new and simpler customer propositions for the Post Office and launched a simplified life protection product in November. We anticipate the challenging protection market conditions experienced in 2007 to continue into 2008. Equity Release sales were down 23% to £243 million (2006: £316 million). In 2007, we have created a smaller, more efficient sales force and expanded our distribution opportunities, including a partnership agreement in October 2007 with the Premier Mortgage club, one of the largest mortgage clubs in the UK with over 10,000 members. With these developments, we expect our sales to improve in 2008. Our bancassurance partnership with RBSG continued to deliver record sales, especially through the successful bond and collective investments propositions, with our share of total sales up by 36% to £1,587 million (2006: £1,169 million). This strong performance benefited from the release of two tranches of our enhanced structured bond between May and October and the launch of the Capital Protected Investment product in October, both of which proved popular in unsettled market conditions. Achieving the target of 1,000 sales advisers by the end of 2007 (2006: 760) contributed to the success of the joint venture this year. With its wide product range and increasingly productive and established sales force, we expect the joint venture to deliver further strong sales growth in 2008. In 2006, we gave a medium term growth outlook for the UK long-term savings market of 5-10% on an annual premium equivalent (APE) basis. In 2007 we achieved sales growth of 6%, in line with this forecast. We remain positive in our outlook for the UK and believe that we will continue to grow at least in line with the market in 2008, given our strong distribution footprint and broad product offering, and strengthened by our enhanced pension product range. However, given the uncertainty over the performance of the UK economy, market growth in 2008 may be slightly lower than in 2007. UK Floods At the interim announcement in August, the impact of the UK floods during June and July was estimated at £340m, bringing the total expected adverse weather costs in 2007 to £400 million. Our UK general insurance business has now reviewed the weather experience in the second half of the year and the estimate has risen by £75 million to £475 million. As expected the adverse weather conditions have had an impact on Aviva's COR and we expect the group COR for the full year 2007 to be around 100%. Had the exceptional weather not occurred, then the group COR would have been 95%, 3% better than the 'meet or beat' target of 98%. Aviva Europe Aviva Europe's sales of long-term savings products, including investment sales, grew by 19% to £16,486 million (2006: £13,731 million), good progress against the medium-term target we set in October of growing long-term savings new business sales by an average of at least 10% a year to 2010. Life and pension sales grew by 15% to £14,914 million (2006: £12,840 million), reflecting strong growth across the region. Investment sales grew by 74% to £1,572 million (2006: £891 million), driven by strong inflows in the Netherlands and Poland. Our businesses in Northern Europe achieved impressive growth with total sales up 22% to £9,147 million (2006: £7,456 million). This growth reflects sales of group pensions in the Netherlands, the continued success of our business in Ireland and a resilient performance in France. In the Netherlands, Delta Lloyd's life and pension sales have grown by 25% to £2,944 million (2006: £2,346 million), driven by group pension scheme sales, including £540 million from a single corporate client. Investment sales were 183% higher at £811 million (2006: £285 million), as a result of strong inflows into Delta Lloyd's highly performing equity fund, and into the recently launched Delta Lloyd Europees Deelnemingen** and Ohra New Energy Funds. In Ireland overall life and pension sales grew by 35% to £1,730 million (2006:£1,273 million). The bancassurance channel continued to develop rapidly with sales up 46% to £864 million (2006: £589 million). The broker channel increased 26% to £866 million (2006: £684 million), reflecting higher sales to corporate pension clients. The growth in both channels has been supported by several new product developments and expansion of the fund range, including the launch of the Secure Capital Fund. In Aviva France, sales grew by 2% to £3,662 million (2006: £3,552 million) in a market which declined overall in 2007*** due to political and fiscal uncertainty in the first half of the year and equity market turbulence in the second. Against this background, growth was achieved in the second half of the year through product innovation, including the modernisation of the AFER product, and successful marketing campaigns. * The whole-of-life market represents 6% of the total protection market (based on latest available ABI statistics) on an APE basis ** Delta Lloyd Europees Deelnemingen is a European equity fund *** In GWP terms, the FFSA states that the French market for life individual products has declined 4% in 2007 compared to the 12 months of 2006 ------------------------------------------------------------------------------------------------------------------------ Page 6 Sales in our businesses in Southern Europe grew by 9% to £5,316 million (2006:£4,827 million) in challenging market conditions in both Italy and Spain. In Aviva Italy, total sales grew by 5% to £2,924 million (2006: £2,768 million), contrasting with the Italian market which declined by more than 5% during 2007*. This favourable performance was generate by marketing campaigns, concentrated in the first three quarters of the year, and the continued development of our relationships with our bank partners. Aviva Spain's life sales continued to show strong growth, up 15% to £2,392 million (2006: £2,059 million) despite sales of risk products affected by the slow down in the Spanish mortgage market. Sales of savings products were further boosted by the highly successful launch of the tax efficient PIAS** product, in which we are the market leader and pension sales were boosted by the efficient transfer of a portfolio of pension policies into the new joint venture with Cajamurcia. Sales in our businesses in Central and Eastern Europe have continued to grow stongly. Total sales grew by 55% to £1,530 million (2006: £973 million). The life and pensions business in Poland has grown by 53% to £844 million (2006: £534 million). Pension sales increased by 86% reflecting higher sales to individuals entering the market for the first time and also our success in the secondary pension transfer market. Increased life sales of 29% were primarily been driven by development of the bancassurance channel and the growth of our direct sales force. Investment sales increased by 97% to £268 million (2006: £131 million), reflecting the strong equity market performance and the launch of umbrella funds at the end of 2006. Life and pension sales in our other Central and Eastern European businesses, in the Czech Republic, Hungary, Romania, Russia and Turkey, increased by 39% to £418 million (2006: £308 million), which included strong sales of savings products in Hungary and Turkey. In November the merger of Aviva Turkey's life and pensions business with AK Emeklilik was completed, which will create a strong foundation for future growth. Aviva North America Our North America business delivered record full year sales up 39%*** on a proforma basis to £3,602 million (2006: £884 million, pro forma 2006: £2,821 million). This is an excellent result representing growth across all product lines. We continue to be optimistic in our outlook for growth in 2008 and remain on track to double the size of our business within three years of acquisition of the former AmerUS Group completed in late 2006. Aviva USA is number one in indexed life sales and number two in indexed annuity sales. Sales of annuities reached £2,600 million (2006: £744 million), a pro forma increase of 47%*** over the prior period (pro forma 2006: £1,921 million), which is a terrific result. During the quarter we launched three new products which, along with the recent AM Best rating upgrade to A+, support our confidence on growth prospects not withstanding recent volatility in equity markets and lower interest rates. Life sales were £573 million (2006: £140 million) representing a pro forma 9%*** increase (pro forma 2006: £570 million). Funding agreement sales for the year were strong at £429 million (2006: nil, pro forma 2006: £330 million), an increase of 42%*** on a pro forma basis. Funding agreement sales, which are a core part of our product portfolio, are large corporate transactions and consequently vary quarter on quarter. Aviva Asia Pacific Aviva Asia Pacific continued to achieve a high rate of growth, with total sales 60% higher at £4,089 million (2006: £2,546 million), driven primarily by strong Navigator (wrap administration platform) sales across the region. This puts us well on the way to achieving our medium-term target of growing long-term savings new business sales by an average of at least 20% a year to 2010. Australia: Total sales for the year increased by 46% to £2,400 million (2006: £1,600 million), driven primarily by significantly higher investment sales through Navigator. Life and pension sales increased by 44% to £439 million (2006: £297 million) as a result of a £64 million one-off transfer of group pension business, growth in protection business and a strongly performing retail investment sector. Investment sales grew by 47% to £1,961 million (2006: £1,303 million). Within this, sales through Navigator increased by 55% to £1,766 million (2006: £1,110 million), due largely to strategic investment in key independent financial adviser (IFA) groups and favourable changes to superannuation legislation. The one-off impact of legislation changes on sales in the first half of the year at £227 million for Navigator and £21 million for life and pension sales. Other investment sales were £195 million (2006: £193 million). * ANIA quotes market decline of 5.5%, based on new business single premium plus regular premiums, at the end of November 2007 compared to the first 11 months of 2006. ** PIAS are newly introduced savings contracts with tax benefits if they are in force for ten years and if an annuity is purchased at maturity. ** Pro forma increases are based upon the combined sales for the former Aviva business based in Boston and the former AmerUs Group for the 2006 year and are stated on a local currency rate basis. ----------------------------------------------------------------------------------------------------------------------- Page 7 Singapore: Total sales increased by 73% to £980 million (2006: £580 million). Life and pension sales of £281 million (2006: £319 million), reflected customers' preference to invest directly in unit trusts rather than bancassurance investment-linked products during the favourable investment market conditions that prevailed for most of the year. Sales through Navigator, increased 175% to £699 million (2006: £261 million) due to strong distribution relationships with key brokers, a comprehensive range of funds offered and a strong equity market encouraging direct investment by customers. We remain the market leader in the developing broker market as well as the employee benefits and healthcare segments. Hong Kong: Sales increased 83% to £363 million (2006: £216 million), primarily driven by IFA sales, which now account for 69% (2006: 55%) of total sales, and the continued good performance of the partnership with DBS Hong Kong. China: Sales through the joint venture life business, Aviva-COFCO, increased by 213% to £304 million (2006: £100 million) of which our 50% share was £152 million (2006: £50 million). We have increased our presence in the country to eight provinces, with a total of 25 city branches. Malaysia: In July 2007, we acquired a 49% stake in two of CIMB Group's subsidiaries and entered into exclusive bancassurance agreements with CIMB Bank. This bank has the largest branch network in Malaysia, with over 4 million customers and 383 branches. Total sales for the six-month period, of £114 million, benefited from the launch of a single premium unit-linked tranche product in the last quarter, with our share being £56 million. India: Total sales increased by 45% to £473 million (2006: £323 million) and our 26% share of new business was £123 million (2006: £84 million). Sales have increased through bancassurance partnerships, ongoing expansion of the direct sales force and the addition of new branches in the year. Sri Lanka: In Sri Lanka, Eagle is the third largest life insurer and has become the leader in the life bancassurance market. Total life sales were £15 million (eleven months in 2006: £16 million). On the whole, Sri Lanka, in local currency terms, has performed marginally better than 2006. ------------------------------------------------------------------------------------------------------------------------ Page 8 Notes to Editors 1. Aviva is the largest insurance services provider in the UK, one of the leading providers of life and pensions products in Europe, and has substantial positions in other markets around the world. This positions Aviva as the world's fifth largest insurance group based on gross worldwide premiums at 31 December 2006. Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales* of £41.5 billion and assets under management of £364 billion at 31 December 2006. * Based on life and pensions PVNBP, total investment sales and general insurance and health net written premiums including share of associates'premiums. The Aviva media centre at www.aviva.com/media includes images, company and product information and a news release archive. 2. All figures have been translated at average exchange rates applying for the period. The average rates employed in this announcement are 1 euro = £0.68(12 months to 31 December 2006: 1 euro = £0.68) and £1 = US$2.00 (12 months to 31 December 2006: £1 = US$1.84). 3. All growth rates are quoted in local currency. 4. Definition: Present value of new business premiums (PVNBP) is the present value of new regular premiums plus 100% of single premiums, calculated using assumptions consistent with those used to determine new business contribution. 5. Cautionary statements: This announcement may include oral and written 'forward-looking statements' with respect to certain of Aviva's plans and its current goals and expectations relating to its future financial condition, performance and results. These forward-looking statements sometimes use words such as'anticipate', 'target', 'expect', 'estimate', 'intend', 'plan', 'goal','believe' or other words of similar meaning. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which may be beyond Aviva's control, including, among other things, UK domestic and global economic and business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, the possible effects of inflation or deflation, the timing impact and other uncertainties relating to acquisitions by the Aviva Group and relating to other future acquisitions or combinations within relevant industries, the impact of tax and other legislation and regulations in the jurisdictions in which Aviva and its affiliates operate,as well as the other risks and uncertainties set forth in our 2006 Annual Report to Shareholders. As a result, Aviva's actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in Aviva's forward-looking statements, and persons receiving this announcement should not place undue reliance on forward-looking statements. Aviva undertakes no obligation to update the forward-looking statements made in this announcement or any other forward-looking statements we may make. Forward-looking statements made in this announcement are current only as of the date on which such statements are made. Aviva plc is a company registered in England No. 2468686. Registered office St Helen's, 1 Undershaft, London, EC3P 3DQ ------------------------------------------------------------------------------------------------------------------------ Statistical Supplement CONTENTS Analyses 1. Present value of life new business premiums 2. Analysis of sales via principal bancassurance channels 3. Detailed worldwide life and pension new business analysis 4. Detailed worldwide investment sales analysis 5. Analysis of UK long-term savings by distribution channel and analysis of France long-term savings by fund 6. Present value of new business premiums before and after minority interest 7. Principal economic assumptions ----------------------------------------------------------------------------------------------------------------------- Page 10 Supplement 1 Present value of life new business premiums The present value of new business premiums (PVNBP) is derived from the single and regular premiums of the products sold during the financial period and is expressed at the point of sale. The PVNBP calculation is equal to total single premium sales received in the year plus the discounted value of regular premiums expected to be received over the term of the new contracts. The projection assumptions used to calculate PVNBP for each product are the same as those used to calculate new business contribution. The discounted value of regular premiums is also expressed as annualised regular premiums multiplied by a Weighted Average Capitalisation Factor (WACF). The WACF will vary over time depending on the mix of new products sold, the average outstanding term of the new contracts and the projection assumptions. The table below sets out the factors required to derive PVNBP by business units. 12 months 12 months 2007 2006 ------------------------------------------------------------------------------ --------- Present value Regular of regular Single premiums WACF premiums premiums PVNBP PVNBP £m £m £m £m £m United Kingdom Individual pensions 389 4.1 1,588 1,717 3,305 3,682 Group pensions 83 5.5 456 615 1,071 1,025 Annuities - - - 1,965 1,965 1,511 Bonds - - - 4,192 4,192 3,588 Protection 131 5.1 666 213 879 1,024 Equity release - - - 243 243 316 --------------------------------------------------------------------------------------------------------------------- UNITED KINGDOM 603 4.5 2,710 8,945 11,655 11,146 France Euro funds* 17 5.9 101 1,930 2,031 1,854 Unit-linked funds 53 5.2 278 1,225 1,503 1,556 Protection business 20 6.3 125 3 128 142 --------------------------------------------------------------------------------------------------------------------- Total life and pensions 90 5.6 504 3,158 3,662 3,552 Ireland Life and savings 40 4.8 190 627 817 626 Pensions 99 3.8 375 538 913 647 --------------------------------------------------------------------------------------------------------------------- Total life and pensions 139 4.1 565 1,165 1,730 1,273 Italy Total life and pensions 107 5.2 557 2,367 2,924 2,768 Netherlands (including Belgium and Germany) Life 68 6.3 428 434 862 895 Pensions 92 8.3 761 1,321 2,082 1,451 --------------------------------------------------------------------------------------------------------------------- Total life and pensions 160 7.4 1,189 1,755 2,944 2,346 Poland Life and savings 28 5.1 144 264 408 307 Pensions 35 8.2 287 149 436 227 --------------------------------------------------------------------------------------------------------------------- Total life and pensions 63 6.8 431 413 844 534 Spain Life and savings 80 5.5 436 1,192 1,628 1,466 Pensions 34 5.7 195 569 764 593 --------------------------------------------------------------------------------------------------------------------- Total life and pensions 114 5.5 631 1,761 2,392 2,059 --------------------------------------------------------------------------------------------------------------------- Other Europe** 73 3.8 283 135 418 308 --------------------------------------------------------------------------------------------------------------------- EUROPE 746 5.6 4,160 10,754 14,914 12,840 North America Life 70 7.6 531 42 573 140 Annuities 1 4.0 4 2,596 2,600 744 Funding agreements - - - 429 429 - --------------------------------------------------------------------------------------------------------------------- NORTH AMERICA 71 7.5 535 3,067 3,602 884 Asia 114 4.7 532 458 990 685 Australia 54 3.3 176 263 439 297 --------------------------------------------------------------------------------------------------------------------- ASIA PACIFIC 168 4.2 708 721 1,429 982 --------------------------------------------------------------------------------------------------------------------- Total life and pensions 1,588 5.1 8,113 23,487 31,600 25,852 ===================================================================================================================== * Euro funds are savings that receive an annual bonus declaration, based on the investment performance of the underlying funds. ** 'Other Europe' is made up of the Czech Republic, Hungary, Romania, Russia and Turkey. --------------------------------------------------------------------------------------------------------------------- Page 11 Supplement 2 Analysis of sales via principal bancassurance channels Present value of new business premiums** ---------------------------------------------- 12 months 12 months Local 2007 2006 currency £m £m growth* Life and pensions United Kingdom The Royal Bank of Scotland Group 1,145 991 16% ----------------------------------------------------------------------------------------------------------------------- 1,145 991 16% France Credit du Nord 778 838 (8)% ----------------------------------------------------------------------------------------------------------------------- 778 838 (8)% Ireland Ark 864 589 46% ----------------------------------------------------------------------------------------------------------------------- 864 589 46% Italy UniCredit Group 1,597 1,381 15% Banco Popolare 305 554 (45)% Banca delle Marche 65 78 (17)% Unione di Banche Italiane 787 682 15% ----------------------------------------------------------------------------------------------------------------------- 2,754 2,695 2% Netherlands ABN AMRO 359 425 (16)% ----------------------------------------------------------------------------------------------------------------------- 359 425 (16)% Spain Bancaja 757 794 (5)% Caixa Galicia 409 389 4% Unicaja 512 335 52% Caja Espana 203 181 11% Caja de Granada 112 133 (16)% Caja Murcia 178 - - ----------------------------------------------------------------------------------------------------------------------- 2,171 1,832 18% Asia DBS (Hong Kong and Singapore) 210 367 (40)% ----------------------------------------------------------------------------------------------------------------------- 210 367 (40)% ----------------------------------------------------------------------------------------------------------------------- Total life and pensions 8,281 7,737 7% Investment sales*** United Kingdom The Royal Bank of Scotland Group 442 178 148% ----------------------------------------------------------------------------------------------------------------------- 442 178 148% ----------------------------------------------------------------------------------------------------------------------- Total bancassurance sales 8,723 7,915 10% ======================================================================================================================= * All growth rates are quoted in local currency. ** Present value of new business premiums (PVNBP) is the present value of new regular premiums plus 100% of single premiums, calculated using assumptions consistent with those used to determine new business contribution. *** Investment sales are calculated as new single premium plus annualised value of new regular premiums. ----------------------------------------------------------------------------------------------------------------------- Page 12 Supplement 3 Detailed worldwide life and pension new business analysis Single Regular PVNBP -------------------------------- ----------------------------- ----------- 12 months 12 months Local 12 months 12 months Local Local 2007 2006 currency 2007 2006 currency currency £m £m growth* £m £m growth* growth* United Kingdom Individual pensions 1,717 2,086 (17)% 389 372 5% (10)% Group pensions 615 554 11% 83 85 (2)% 4% Annuities 1,965 1,511 30% - - - 30% Bonds 4,192 3,588 17% - - - 17% Protection 213 257 (17)% 131 151 (13)% (14)% Equity release 243 316 (23)% - - - (23)% ----------------------------------------------------------------------------------------------------------------------- UNITED KINGDOM 8,945 8,312 8% 603 608 (1)% 5% France Euro funds** 1,930 1,804 6% 17 10 70% 9% Unit-linked funds 1,225 1,283 (5)% 53 52 2% (4)% Protection business 3 3 - 20 20 (5)% (10)% ----------------------------------------------------------------------------------------------------------------------- 3,158 3,090 2% 90 82 8% 2% Ireland Life and savings 627 469 33% 40 32 25% 30% Pensions 538 340 57% 99 77 25% 40% ---------------------------------------------------------------------------------------------------------------------- 1,165 809 43% 139 109 25% 35% Italy Life and savings 2,367 2,216 6% 107 101 5% 5% ----------------------------------------------------------------------------------------------------------------------- 2,367 2,216 6% 107 101 5% 5% Netherlands (including Belgium and Germany) Life 434 403 7% 68 75 (11)% (4)% Pensions 1,321 821 60% 92 73 24% 43% ----------------------------------------------------------------------------------------------------------------------- 1,755 1,224 42% 160 148 7% 25% Poland Life and savings 264 155 66% 28 28 (3)% 29% Pensions 149 83 73% 35 20 67% 86% ----------------------------------------------------------------------------------------------------------------------- 413 238 69% 63 48 26% 53% Spain Life and savings 1,192 1,044 13% 80 70 14% 10% Pensions 569 366 54% 34 37 (8)% 28% ----------------------------------------------------------------------------------------------------------------------- 1,761 1,410 24% 114 107 7% 15% Other Europe*** 135 83 61% 73 55 38% 39% ----------------------------------------------------------------------------------------------------------------------- EUROPE 10,754 9,070 18% 746 650 14% 15% North America Life 42 44 5% 70 15 438% 344% Annuity 2,596 723 290% 1 5 (80)% 280% Funding agreements 429 - - - - - - ----------------------------------------------------------------------------------------------------------------------- NORTH AMERICA 3,067 767 334% 71 20 294% 343% Asia 458 333 44% 114 74 61% 51% Australia 263 157 63% 54 42 26% 44% ----------------------------------------------------------------------------------------------------------------------- ASIA PACIFIC 721 490 50% 168 116 47% 49% ----------------------------------------------------------------------------------------------------------------------- Total life and pensions 23,487 18,639 26% 1,588 1,394 14% 22% ======================================================================================================================= * All growth rates are quoted in local currency. ** Euro funds are savings that receive an annual bonus declaration, based on the investment performance of the underlying funds. *** 'Other Europe' is made up of the Czech Republic, Hungary, Romania, Russia and Turkey. ----------------------------------------------------------------------------------------------------------------------- Page 13 Supplement 4 Detailed worldwide investment sales analysis Single Regular PVNBP -------------------------------- ----------------------------- ----------- 12 months 12 months Local 12 months 12 months Local Local 2007 2006 currency 2007 2006 currency currency £m £m growth* £m £m growth* growth* United Kingdom Peps/Isas/UTs/Oeics/SIPPs 2,531 2,411 5% 81 44 84% 12% ---------------------------------------------------------------------------------------------------------------------- UNITED KINGDOM 2,531 2,411 5% 81 44 84% 12% Netherlands(including Belgium and Germany) Unit trusts 811 285 183% - - - 183% Poland Mutual funds 264 127 100% 4 4 - 97% Other Europe UCITS 491 475 3% - - - 3% Romania 2 - - - - - - --------------------------------------------------------------------------------------------------------------------- EUROPE 1,568 887 75% 4 4 - 74% Asia Pacific Unit trusts 195 193 (2)% - - - (2)% Navigator 2,465 1,371 77% - - - 77% --------------------------------------------------------------------------------------------------------------------- ASIA PACIFIC 2,660 1,564 67% - - - 67% --------------------------------------------------------------------------------------------------------------------- Total investment sales 6,759 4,862 38% 85 48 77% 41% ====================================================================================================================== * All growth rates are quoted in local currency. ---------------------------------------------------------------------------------------------------------------------- Page 14 Supplement 5 Analysis of UK long-term savings by distribution channel Annual premium Single Regular equivalent** -------------------------------- ----------------------------- --------------------- 12 months 12 months Local 12 months 12 months Local 12 months Local 2007 2006 currency 2007 2006 currency 2007 currency £m £m growth* £m £m growth* £m growth* IFA - life & pension products 6,337 6,155 3% 518 489 6% 1,152 4% - investment products 1,238 1,610 (23)% 9 2 350% 133 (18)% ---------------------------------------------------------------------------------------------------------------------- 7,575 7,765 (2)% 527 491 7% 1,285 1% Bancassurance partnership with RBSG - life & pension products 922 695 33% 48 59 (19)% 140 9% - investment products 242 137 77% 72 41 76% 96 76% --------------------------------------------------------------------------------------------------------------------- 1,164 832 40% 120 100 20% 236 29% Other partnerships and Direct - life & pension products 1,686 1,462 15% 37 61 (39)% 206 (1)% - investment products 1,051 664 58% - - - 105 58% --------------------------------------------------------------------------------------------------------------------- 2,737 2,126 29% 37 61 (39)% 311 14% --------------------------------------------------------------------------------------------------------------------- Total UK long-term savings 11,476 10,723 7% 684 652 5% 1,832 6% ===================================================================================================================== * All growth rates are quoted in local currency. ** Annual premium equivalent (APE) is the UK industry's standard measure of new regular premiums plus 10% of single premiums. Analysis of France long-term savings by fund Single Regular PVNBP -------------------------------- ----------------------------- ----------- 12 months 12 months Local 12 months 12 months Local Local 2007 2006 currency 2007 2006 currency currency £m £m growth* £m £m growth* growth* AFER - Euro funds** 1,286 1,170 9% 9 - - 14% - Unit-linked funds 431 482 (11)% 3 - - (7)% ---------------------------------------------------------------------------------------------------------------------- 1,717 1,652 3% 12 - - 8% Bancassurance partnership with Credit du Nord - Euro funds 450 412 8% 3 4 (25)% 8% - Unit-linked funds 216 285 (25)% 15 18 (17)% (24)% - Protection 1 1 - 1 1 - (38)% ---------------------------------------------------------------------------------------------------------------------- 667 698 (5)% 19 23 (17)% (8)% Other - Euro funds 194 222 (13)% 5 6 (17)% (15)% - Unit-linked funds 578 516 11% 35 34 - 9% - Protection 2 2 - 19 19 - (7)% ---------------------------------------------------------------------------------------------------------------------- 774 740 4% 59 59 - 1% ---------------------------------------------------------------------------------------------------------------------- Total France long-term savings 3,158 3,090 2% 90 82 8% 2% ====================================================================================================================== * All growth rates are quoted in local currency. ** Euro funds are savings that receive an annual bonus declaration, based on the investment performance of the underlying funds. ------------------------------------------------------------------------------------------------------------------------ Page 15 Supplement 6 Present value of life and pensions new business premiums before and after minority interests Present value of new business Present value of new business premiums before minority interests premiums before minority interests 12 months 12 months 12 months 12 months 2007 2006 2007 2006 £m £m £m £m Analysed between: - Principal bancassurance channels 8,281 7,737 4,810 4,465 - Other distribution channels 23,319 18,115 22,674 17,607 ---------------------------------------------------------------------------------------------------------------------- Available to equity shareholders 31,600 25,852 27,484 22,072 ====================================================================================================================== ----------------------------------------------------------------------------------------------------------------------- Page 16 Supplement 7 Principal economic assumptions - deterministic calculations Economic assumptions are derived actively, based on market yields on risk-free fixed interest assets at the end of each reporting period. The same margins are applied on a consistent basis across the Group to gross risk-free yields to obtain investment return assumptions for ordinary shares and property and to produce risk discount rates. Expense inflation is derived as a fixed margin above a local measure of long-term price inflation. Risk-free rates and price inflation have been harmonised across territories within the Euro currency zone, except for expense inflation in Ireland where significant differences remain. Required capital is shown as a multiple of the EU statutory minimum solvency margin. Investment return assumptions are generally derived by major product class, based on hypothecating the assets at the valuation date. Assumptions about future investment mix are consistent with long-term plans. In most cases, the investment mix is assumed to continue unchanged throughout the projection period. The changes in assumptions between reporting dates reflect the actual movements in risk-free yields in the United Kingdom, the Eurozone and other territories. The principal economic assumptions used are as follows: United Kingdom France ------------------- ---------------- 2006 2005 2006 2005 Risk discount rate 7.3% 6.8% 6.7% 6.0% Pre-tax investment returns: Base government fixed interest 4.6% 4.1% 4.0% 3.3% Ordinary shares 7.6% 7.1% 7.0% 6.3% Property 6.6% 6.1% 6.0% 5.3% Future expense inflation 3.4% 3.2% 2.5% 2.5% Tax rate 30.0% 30.0% 34.4% 34.4% Required capital (% EU minimum) 150% / 100% 150% / 100% 115% 115% Ireland Italy ------------------- ---------------- 2006 2005 2006 2005 Risk discount rate 6.7% 6.0% 6.7% 6.0% Pre-tax investment returns: Base government fixed interest 4.0% 3.3% 4.0% 3.3% Ordinary shares 7.0% 6.3% 7.0% 6.3% Property 6.0% 5.3% 6.0% 5.3% Future expense inflation 4.0% 4.0% 2.5% 2.5% Tax rate 12.5% 12.5% 38.3% 38.3% Required capital (% EU minimum) 150% 150% 115% 115% Netherlands Poland ---------------- --------------- 2006 2005 2006 2005 Risk discount rate 6.7% 6.0% 8.7% 8.6% Pre-tax investment returns: Base government fixed interest 4.0% 3.3% 5.0% 4.9% Ordinary shares 7.0% 6.3% 8.0% 7.9% Property 6.0% 5.3% n/a n/a Future expense inflation 2.5% 2.5% 3.4% 3.3% Tax rate 25.5% 29.1% 19.0% 19.0% Required capital (% EU minimum) 150% 150% 150% 150% Spain USA ----------------- --------------- 2006 2005 2006 2005 Risk discount rate 6.7% 6.0% 7.4% 7.2% Pre-tax investment returns: Base government fixed interest 4.0% 3.3% 4.7% 4.5% Ordinary shares 7.0% 6.3% n/a n/a Property 6.0% 5.3% n/a n/a Future expense inflation 2.5% 2.5% 3.0% 3.0% Tax rate 30.0% 35.0% 35.0% 35.0% Required capital (% EU minimum or equivalent) 125% /110% 125% /110% 250% 200% For service companies, expense inflation relates to the underlying expenses rather than the fees charged to the life company. Future returns on corporate fixed interest investments are calculated from prospective yields less an adjustment for credit risk. Following the change made to the required capital in Norwich Union Annuity Limited (NUA) in the third quarter of 2007, required capital in the United Kingdom is now 100% EU minimum for all life companies, the 150% shown in the table above refers to the start of year assumption for NUA. Required capital in Spain is 125% EU minimum for Aviva Vida y Pensiones and 110% for bancassurance companies. The level of required capital for the US business is 250% of the risk based capital, at the company action level, set by the National Association of Insurance Commissioners. Aviva plc is a company registered in England No. 2468686. Registered office St Helen's 1 Undershaft London EC3P 3DQ End of announcement A pdf version of this announcement can be found on www.aviva.com This information is provided by RNS The company news service from the London Stock Exchange

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