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Aviva International – a track record of delivery

Mark DearsleyFinance Director, Aviva International

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Aviva International transformation

1 Includes non-participating investment contracts2 Includes US, Australia & New Zealand, Belgium, Germany, Asia, Spain and CGU Courtage (France)

2000

2005

Health £724m

Health £483m

Life NWP£6,300m

GI NWP £2,512m

Discontinued GI2£4,562m

Life NWP1

£11,920mGI NWP £3,460m

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What we set out to do

• Build strong Life and Pensions businesses

• Diversify distribution

• Prioritise major European markets- Large markets- Attractive growth rates- Limited ‘window’ to seize opportunities

• Build capability in other selected growth markets

• Focus on profitable General Insurance businesses in personal lines / SME

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What we did

• Europe- Transformed Spain from subscale composite to a Life market leader- Extended and diversified distribution in Italy - Added important bank partnerships in Netherlands, France & Ireland- Maintained strong positions in Poland and Turkey - Further potential in Czech Rep, Hungary, Romania, Lithuania, Russia

• Asia-Pacific and USA- Launched exciting Life businesses in China, India, Singapore, HK- Growth initiatives in US and Australia

• Exited from US P&C and other subscale / non-core General Insurance units

Built pre-eminent European Life platform

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Disciplined approach in turbulent markets

• Strong financial disciplines (including expense reduction)

• Excellence in operational and M&A execution

• Investment in infrastructure: finance and risk management

• Focus on business as usual

Whilst:

• Navigating substantial uncertainty and difficult markets post 9/11

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What we have achieved – top line Life sales growth

CAGR 10%

PVNBP increased by over 60%Note: CAGR calculated using constant currency, net of minorities and excludes exceptional Polish pension sales in 2000

PVNBP Growth 2000-2005

0

2000

4000

6000

8000

10000

12000

2000 2001 2002 2003 2004 2005

£m

AsiaUS & AustraliaOther EuropeWestern Europe

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What we have achieved – diversified distribution

AI Life & Pensions distribution by channel 2000

AI Life & Pensions distribution by channel 2005

Broad access to customersNet of minorities

Basis 2000 APE Basis 2005 PVNBP

38%

7%

55%

34%26%

40%

Independent Agents/BrokersTied Agents/DirectBancassurance

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What we have achieved – bottom line out-performance

NBC Net/Net/Net

Profits (Life and pensions only)CAGR 10%

NB Margin

• 250% increase in new business contribution from £54m to £192m

• 117% improvement in new business margin from 0.9% to 1.9%

• Profit growth of 81% from £386m to £697m

LifeOperating

Profit*£m

NBC £m

CAGR1 28%

Growth in challenging market conditions

1. NBC CAGR excludes exceptional Polish pension sales in 20002. Post tax, post-minorities, 2000-02 AP basis, 2003-05 EEV basis

0100200300400500600700800

2000 2001 2002 2003 2004 2005

0

50

100

150

200

250

0

0.5

1

1.5

2

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What we have achieved – a significant bancassurance presence…

…and growth at a reasonable price

Goodwill* 2000-2005

£715m

2005 NBCNet/Net/Net

£83m

P/E

8.6x

*Relates to Aviva International businesses only and includes unpaid earn outs.

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0

10

20

30

40

50

60

70

80

What we have achieved – real progress with partners

0

20

40

60

80

100

120

0102030

405060

708090

2000 2001 2002 2003 2004 2005

Crédit du Nord Embedded Value Build Up

£m

£m

0

20

40

60

80

100

120

140

160

ABN Amro Embedded Value Build Up

Aseval Embedded Value Build Up

£m

£m

Singapore Embedded Value Build Up

Note: Figures are net of minorities. 2000-02 AP basis, 2003-05 EEV basis.

2000 2001 2002 2003 2004 2005

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What we have achieved – focused GI

2005 GI NWP by country£3,460m

Excludes health

2000 GI NWP by country£7,074m

• Over 30 country operations• Exposure to heavy commercial lines• AI COR of 111% excl. US

• 4 major GI businesses• Other businesses support LTS offer• Focus on personal lines and SME• AI COR of 94%

16%

14%

21%

39%

10%8%5%

5%

11%

35%

36% FranceIrelandNetherlandsCanadaUSRest of world

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Total General Insurance – growing profitably in competitive markets

Acquired operations

Discontinued operations*

Continuing operations

* Discontinued operations include businesses sold with the exception of the US

AI NWP 2000-2005

0500

10001500200025003000350040004500

2000 2001 2002 2003 2004 2005

£m

AI Operating Profit/COR 2000-2005

-100

0

100

200

300

400

500

600

£m

85

90

95

100

105

110

115

COR %

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Aviva International has generated growth in sales and profits…

…whilst generating operational capital

486

72

(497)

562

161

(121)

538Retained to fund growth

96Capital injections

(273)Dividends paid to Centre

911

460

626

(175)

£m2003

522

228

493

(199)

£m2005

715Operational Capital Generation

352Operating return – Non Life

546Life In-Force profits

(183)New business strain

£m2004

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Aviva International: a strong track record of profitable growth