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Part 5 of 5 HY09 Report

6th Aug 2009 07:01

RNS Number : 9695W

Aviva PLC

06 August 2009

Part 5 of 5

Page 128

Long-term savings new business

C1 - Analysis of regular and single premiums

	Regular premiums							Single premiums
	6 months 2009 £m	Local CCY growth	WACF	Present value £m	6 months 2008 £m	WACF	Present value £m	6 months 2009 £m	Restated6 months 2008 £m	Local CCY growth
Individual pensions	212	-	4.8	1,027	218	4.4	970	891	1,068	(17)%
Group pensions	13	(68)%	5.2	68	40	4.2	170	103	202	(49)%
Annuities	-	-	-	-	-	-	-	833	1,286	(35)%
Bonds	-	-	-	-	-	-	-	1,219	1,628	(25)%
Protection	73	(9)%	6.2	452	80	6.8	545	9	61	(85)%
Equity release	-	-	-	-	-	-	-	133	80	(66)%
United Kingdom	298	(12)%	5.2	1,547	338	5.0	1,685	3,188	4,325	(26)%
Euro funds	16	8%	6.9	110	13	6.4	83	1,876	1,291	25%
Unit-linked funds	17	(35)%	5.8	98	23	6.6	152	240	435	(52)%
Protection business	14	(14)%	8.1	113	14	7.1	99	3	2	50%
France	47	(18)%	6.8	321	50	6.7	334	2,119	1,728	6%
Life and savings	14	(37)%	5.4	76	19	5.5	105	84	201	(64)%
Pensions	24	(54)%	4.2	100	46	4.6	210	166	183	(22)%
Ireland	38	(49)%	4.6	176	65	4.8	315	250	384	(44)%
Italy	78	16%	6.7	519	58	6.0	346	1,679	959	51%
Life	24	(38)%	8.4	201	34	8.1	275	168	255	(43)%
Pensions	78	49%	9.9	771	45	9.2	416	640	1,139	(52)%
Netherlands (incl Belgium and Germany)	102	11%	9.5	972	79	8.8	691	808	1,394	(50)%
Life and savings	19	(9)%	7.5	142	23	6.5	149	26	323	(91)%
Pensions	22	(8)%	14.8	325	26	15.3	398	61	81	(17)%
Poland	41	(8)%	11.4	467	49	11.2	547	87	404	(77)%
Life and savings	48	(33)%	6.0	290	61	5.7	350	707	524	16%
Pensions	17	(58)%	5.2	89	36	6.3	227	159	194	(29)%
Spain	65	(42)%	5.8	379	97	5.9	577	866	718	4%
Other Europe	42	(34)%	4.4	185	64	9.3	598	23	69	(67)%
Europe	413	(19)%	7.3	3,019	462	7.4	3,408	5,832	5,656	(11)%
Life	42	7%	8.8	370	30	8.7	261	4	12	(77)%
Annuities	-	-	-	-	-	-	-	2,815	1,579	34%
Funding agreements	-	-	-	-	-	-	-	-	375	(100)%
North America	42	7%	8.8	370	30	8.7	261	2,819	1,966	8%
Asia	92	19%	4.3	399	69	6.3	434	133	250	(58)%
Australia	30	(9)%	4.1	124	32	3.5	111	42	101	(59)%
Asia Pacific	122	10%	4.3	523	101	5.4	545	175	351	(58)%
Total life and pensions	875	(13)%	6.2	5,459	931	6.3	5,899	12,014	12,298	(15)%

Page 129

C2 - Detailed worldwide investment sales

			Regular			Single	PVNBP
	6 months 2009 £m	6 months 2008 £m	Local CCY growth	6 months 2009 £m	6 months 2008 £m	Local CCY growth	Local CCY growth
United Kingdom1	34	44	(23)%	374	732	(49)%	(50)%
Netherlands (incl Belgium and Germany)	-	-	-	357	221	39%	39%
Poland	3	3	-	20	43	(49)%	(46)%
Other Europe	-	-	-	400	259	33%	33%
Europe	3	3	-	777	523	29%	29%
Australia	-	-	-	518	840	(39)%	(39)%
Singapore	-	-	-	232	211	(12)%	(12)%
Asia Pacific	-	-	-	750	1,051	(34)%	(34)%
Total investment sales	37	47	(21)%	1,901	2,306	(24)%	(26)%

1. UK regular premium investment sales include SIPP products. These are similar in nature to pension products and their payment pattern is stable and predictable and accordingly they have been capitalised. Regular premium SIPP sales for the 6 months to 30 June 2009 totalled £2.3 million (2008: £15.7 million) and have been capitalised using a weighted average capitalisation factor of 5.0 (2008: 5.0). As such, regular premium SIPP sales have produced an overall contribution to investment sales of £11.5 million (2008: £78 million) out of the UK investment sales of £418 million (2008: £698 million).

Page 130

Long-term savings new business continued

C3 - Trend analysis of PVNBP - Cumulative

	Present value of new business premiums
	RestatedQ108 YTD	RestatedQ208 YTD	RestatedQ308 YTD	RestatedQ408 YTD	Q109 YTD	Q209 YTD
Life and pensions business
Individual pensions	945	2,038	2,946	3,722	900	1,918
Group pensions	171	372	552	1,031	89	171
Annuities	518	1,286	1,920	2,433	475	833
Bonds	849	1,628	2,399	3,296	713	1,219
Protection	323	606	872	1,126	245	461
Equity release	44	80	156	250	83	133
United Kingdom	2,850	6,010	8,845	11,858	2,505	4,735
Euro funds	682	1,374	1,987	2,689	1,027	1,986
Unit-linked funds	322	587	777	1,013	179	338
Protection business	57	101	131	178	64	116
France	1,061	2,062	2,895	3,880	1,270	2,440
Life and savings	152	306	427	512	61	160
Pensions	178	393	551	787	126	266
Ireland	330	699	978	1,299	187	426
Italy	678	1,305	1,811	2,331	1,136	2,198
Life	331	530	808	899	191	369
Pensions	543	1,555	2,382	3,198	751	1,411
Netherlands (including Belgium and Germany)	874	2,085	3,190	4,097	942	1,780
Life and savings	254	472	703	779	79	168
Pensions	315	479	801	1,063	272	386
Poland	569	951	1,504	1,842	351	554
Life and savings	454	874	1,221	1,712	594	997
Pensions	174	421	562	777	143	248
Spain	628	1,295	1,783	2,489	737	1,245
Other Europe	130	667	859	1,014	112	208
Europe	4,270	9,064	13,020	16,952	4,735	8,851
Life	132	273	453	623	177	374
Annuities	694	1,579	2,736	4,244	1,752	2,815
Funding agreements	222	375	621	848	-	-
North America	1,048	2,227	3,810	5,715	1,929	3,189
Asia	338	684	1,053	1,351	325	532
Australia	99	212	286	369	75	166
Asia Pacific	437	896	1,339	1,720	400	698
Total life and pensions	8,605	18,197	27,014	36,245	9,569	17,473

Page 131

C4 - Trend analysis of PVNBP - Discrete

	Present value of new business premiums
	RestatedQ108	RestatedQ208	RestatedQ308	RestatedQ408	Q109	Q209
Life and pensions business
Individual pensions	945	1,093	908	776	900	1,018
Group pensions	171	201	180	479	89	82
Annuities	518	768	634	513	475	358
Bonds	849	779	771	897	713	506
Protection	323	283	266	254	245	216
Equity release	44	36	76	94	83	50
United Kingdom	2,850	3,160	2,835	3,013	2,505	2,230
Euro funds	682	692	613	702	1,027	959
Unit-linked funds	322	265	190	236	179	159
Protection business	57	44	30	47	64	52
France	1,061	1,001	833	985	1,270	1,170
Life and savings	152	154	121	85	61	99
Pensions	178	215	158	236	126	140
Ireland	330	369	279	321	187	239
Italy	678	627	506	520	1,136	1,062
Life	331	199	278	91	191	178
Pensions	543	1,012	827	816	751	660
Netherlands (including Belgium and Germany)	874	1,211	1,105	907	942	838
Life and savings	254	218	231	76	79	89
Pensions	315	164	322	262	272	114
Poland	569	382	553	338	351	203
Life and savings	454	420	347	491	594	403
Pensions	174	247	141	215	143	105
Spain	628	667	488	706	737	508
Other Europe	130	537	192	155	112	96
Europe	4,270	4,794	3,956	3,932	4,735	4,116
Life	132	141	180	170	177	197
Annuities	694	885	1,157	1,508	1,752	1,063
Funding agreements	222	153	246	227	-	-
North America	1,048	1,179	1,583	1,905	1,929	1,260
Asia	338	346	369	298	325	207
Australia	99	113	74	83	75	91
Asia Pacific	437	459	443	381	400	298
Total life and pensions	8,605	9,592	8,817	9,231	9,569	7,904

Page 132

Capital Management

D1 - Group capital structure

Shareholders' funds, including minority interest

	30 June 2009 Closing shareholders' funds			Restated 31 December 2008 Closing shareholders' funds
	IFRS net asset £m	Internally generated AVIF £m	Total Equity £m	IFRS net asset £m	Internally generated AVIF £m	Total Equity £m
Life assurance
United Kingdom	3,402	1,436	4,838	3,649	1,420	5,069
France	1,525	1,106	2,631	1,854	1,018	2,872
Ireland	1,068	189	1,257	1,212	280	1,492
Italy	1,269	298	1,567	1,407	264	1,671
Netherlands (including Belgium and Germany)	3,656	(814)	2,842	2,979	(313)	2,666
Poland	302	689	991	310	1,105	1,415
Spain	1,237	661	1,898	1,373	816	2,189
Other Europe	316	(8)	308	369	(34)	335
Europe	9,373	2,121	11,494	9,504	3,136	12,640
North America	2,653	(1,197)	1,456	2,693	(1,599)	1,094
Asia Pacific	815	209	1,024	735	246	981
	16,243	2,569	18,812	16,581	3,203	19,784
General insurance and health
United Kingdom	1,828	-	1,828	2,592	-	2,592
France	322	-	322	400	-	400
Ireland	516	-	516	545	-	545
Netherlands	484	-	484	705	-	705
Other Europe	331	-	331	377	-	377
Europe	1,653	-	1,653	2,027	-	2,027
North America	899	-	899	878	-	878
Asia Pacific	24	-	24	19	-	19
	4,404	-	4,404	5,516	-	5,516
Fund management	261	-	261	340	-	340
Other business	5	-	5	(326)	-	(326)
Corporate	(33)	-	(33)	(30)	-	(30)
Subordinated debt	(4,541)	-	(4,541)	(4,606)	-	(4,606)
External debt	(1,283)	-	(1,283)	(919)	-	(919)
Internal debt	(2,317)	-	(2,317)	(2,110)	-	(2,110)
	(7,908)	-	(7,908)	(7,651)	-	(7,651)
Shareholders' funds, including minority interests	12,739	2,569	15,308	14,446	3,203	17,649
Less:
Minority interests			(2,719)			(3,080)
Direct capital instruments			(990)			(990)
Preference capital			(200)			(200)
Equity shareholders' funds			11,399			13,379
Less: goodwill and intangibles1			(4,513)			(4,944)
Equity shareholders funds' excluding goodwill and intangibles			6,886			8,435

1. Goodwill and intangibles comprise £3,361 million (31 December 2008:£3,583 million) of goodwill in subsidiaries, £1,279 million (31 December 2008: £1,557 million) of intangibles in subsidiaries, £148 million (31 December 2008: £163 million) of goodwill and intangibles in joint ventures and £329 million (31 December 2008: £335 million) of goodwill in associates, net of associated deferred tax liabilities of £372 million (31 December 2008: £423 million) and the minority share of intangibles of £229 million (31 December 2008: £271 million)

Page 133

D2 - Analysis of return on capital employed

	30 June 2009
	Operating return1		RestatedOpening shareholders' funds including minority interests £m	Annualised return on capital %
	Before tax £m	After tax £m		Annualised return on capital %
Life assurance
United Kingdom	345	249	5,069	9.8%
France	377	246	2,872	17.1%
Ireland	18	16	1,492	2.1%
Italy	120	81	1,671	9.7%
Netherlands (including Belgium and Germany)	329	244	2,666	18.3%
Poland	92	74	1,415	10.5%
Spain	154	108	2,189	9.9%
Other Europe	15	13	335	7.8%
Europe	1,105	782	12,640	12.4%
North America	120	120	1,094	21.9%
Asia Pacific	37	21	981	4.3%
	1,607	1,172	19,784	11.8%
General insurance and health
United Kingdom	264	189	2,592	14.6%
France	36	23	400	11.5%
Ireland	48	42	545	15.4%
Netherlands	59	43	705	12.2%
Other Europe	24	17	377	9.0%
Europe	167	125	2,027	12.3%
North America	87	57	878	13.0%
Asia Pacific	7	5	19	52.6%
	525	376	5,516	13.6%
Fund management	(4)	(3)	340	(1.8)%
Other business	(99)	(69)	(326)	42.3%
Corporate	(78)	(17)	(30)	113.3%
Subordinated debt	(139)	(99)	(4,606)	4.3%
External debt	(26)	(19)	(919)	4.1%
Net internal debt2	(101)	(72)	(2,110)	6.8%
	1,685	1,269	17,649	14.4%
Less: Minority interests		(153)	(3,080)	9.9%
Direct capital instrument		-	(990)	-
Preference capital		(9)	(200)	8.6%
Return on equity shareholders' funds		1,107	13,379	16.5%

1. The operating return is based upon group MCEV operating profit, which is stated before impairment of goodwill, amortisation of intangibles, exceptional items and investment variance.

2. The net internal debt return loss before tax of £101 million comprises investment return of £20 million offset by group internal debt costs and other interest of £121 million.

Page 134

Capital management continued

D2 - Analysis of return on capital employed continued

	Restated 31 December 2008
	Operating return1		Opening shareholders' funds including goodwill and intangibles £m	Return on capital %
	Before tax £m	After tax £m		Return on capital %
Life assurance
United Kingdom	883	635	7,154	8.9%
France	692	455	2,783	16.3%
Ireland	78	67	1,229	5.5%
Italy	131	88	1,258	7.0%
Netherlands (including Belgium and Germany)	196	141	4,054	3.5%
Poland	241	196	1,202	16.3%
Spain	286	199	1,782	11.2%
Other Europe	23	17	278	6.1%
Europe	1,647	1,163	12,586	9.2%
North America	201	132	1,975	6.7%
Asia Pacific	79	57	841	6.8%
	2,810	1,987	22,556	8.8%
General insurance and health
United Kingdom	557	398	3,049	13.1%
France	107	70	301	23.3%
Ireland	68	59	435	13.6%
Netherlands	177	129	756	17.1%
Other Europe	45	31	295	10.5%
Europe	397	289	1,787	16.2%
North America	145	94	732	12.8%
Asia Pacific	-	-	26	-
	1,099	781	5,594	14.0%
Fund management	42	29	355	8.2%
Other business	(163)	(114)	831	(13.7)%
Corporate	(37)	118	(31)	(380.6)%
Subordinated debt	(229)	(164)	(3,054)	5.4%
External debt	(57)	(41)	(1,257)	3.3%
Net internal debt2	(98)	(70)	(1,146)	6.1%
	3,367	2,526	23,848	10.6%
Less: Minority interests		(257)	(2,519)	10.2%
Direct capital instrument		(40)	(990)	4.0%
Preference capital		(17)	(200)	8.5%
Return on equity shareholders' funds		2,212	20,139	11.0%

1. The operating return is based upon group MCEV operating profit, which is stated before impairment of goodwill, amortisation of intangibles, exceptional items and investment variance.

2. The net internal debt return loss before tax of £98 million comprises investment return of £99 million offset by group internal debt costs and other interest of £197 million.

Page 135

D3 - Sensitivity analysis

The group uses a number of sensitivity test-based risk management tools to understand the volatility of earnings, the volatility of its capital requirements, and to manage its capital more efficiently. Primarily MCEV, Financial Condition Reporting (a medium-term projection of the financial health of the business under a variety of economic and operating scenarios), and increasingly Individual Capital Assessment (ICA) are used. Sensitivities to economic and operating experience are regularly produced on all of our financial performance measurements as part of our decision-making and planning process, and as part of the framework for identifying and quantifying the risks that each of its business units, and the group as a whole are exposed to.

For long-term business in particular, sensitivities of MCEV performance indicators to changes in both economic and non-economic experience are continually used to manage the business and to inform the decision-making process. More information on MCEV sensitivities can be found in the presentation of results in the MCEV section of this announcement.

Life insurance and investment contracts

The nature of long-term business is such that a number of assumptions are made in compiling the financial statements. Assumptions are made about investment returns, expenses, mortality rates, and persistency in connection with the in-force policies for each business unit. Assumptions are best estimates based on historic and expected experience of the business.

General insurance and health business

General insurance and health claim liabilities are estimated by using standard actuarial claims projection techniques. These methods extrapolate the claims development for each accident year based on the observed development of earlier years. In most cases, no explicit assumptions are made as projections are based on assumptions implicit in the historic claims development on which the projections are based. As such, in the analysis below, the sensitivity of general insurance claim liabilities is primarily based on the financial impact of changes to the reported loss ratio.

Some results of sensitivity testing for long-term business and general insurance and health business are set out below. For each sensitivity test the impact of a change in a single factor is shown, with other assumptions left unchanged.

Sensitivity factor	Description of sensitivity factor applied
Interest rate and investment return	The impact of a change in market interest rates by a 1% increase or decrease. The test allows consistently for similar changes to investment returns and movements in the market value of backing fixed interest securities.
Equity/property market values	The impact of a change in equity/property market values by ± 10%.
Expenses	The impact of an increase in maintenance expenses by 10%.
Assurance mortality/morbidity (life insurance only)	The impact of an increase in mortality/morbidity rates for assurance contracts by 5%.
Annuitant mortality (life insurance only)	The impact of a reduction in mortality rates for annuity contracts by 5%.
Gross loss ratios (non-life insurance only)	The impact of an increase in gross loss ratios for general insurance and health business by 5%.

Page 136

Capital management continued

D3 - Sensitivity analysis continued

Long-term businesses

	30 June 2009
Impact on profit before tax £m	Interest rates+1%	Interest rates-1%	Equity/ property+10%	Equity/ property-10%	Expenses+10%	Assurance mortality+5%	Annuitant mortality+5%
Insurance participating	(115)	(55)	65	(60)	(15)	(10)	10
Insurance non-participating	(450)	445	(20)	45	(20)	(45)	(270)
Investment participating	(125)	50	45	(25)	-	-	-
Investment non-participating	20	(25)	20	(20)	(5)	-	-
Assets backing life shareholders' funds	(10)	10	160	(155)	-	-	-
Total	(680)	425	270	(215)	(40)	(55)	(260)

	30 June 2009
Impact on shareholders' equity before tax £m	Interest rates+1%	Interest rates-1%	Equity/ property+10%	Equity/ property-10%	Expenses+10%	Assurance mortality+5%	Annuitant mortality+5%
Insurance participating	(130)	(35)	65	(60)	(15)	(10)	10
Insurance non-participating	(570)	735	245	(230)	(20)	(45)	(270)
Investment participating	(125)	50	45	(25)	-	-	-
Investment non-participating	(110)	125	20	(20)	(5)	-	-
Assets backing life shareholders' funds	(55)	60	170	(175)	-	-	-
Total	(990)	935	545	(510)	(40)	(55)	(260)

	31 December 2008
Impact on profit before tax £m	Interest rates+1%	Interest rates-1%	Equity/ property+10%	Equity/ property-10%	Expenses+10%	Assurance mortality+5%	Annuitant mortality+5%
Insurance participating	(10)	(165)	85	(90)	(20)	(5)	(10)
Insurance non-participating	(25)	135	90	(90)	(20)	(25)	(310)
Investment participating	(35)	(55)	25	(20)	-	-	-
Investment non-participating	(10)	10	20	(20)	(5)	-	-
Assets backing life shareholders' funds	(20)	30	180	(180)	-	-	-
Total	(100)	(45)	400	(400)	(45)	(30)	(320)

	31 December 2008
Impact on shareholders' equity before tax £m	Interest rates+1%	Interest rates-1%	Equity/ property+10%	Equity/ property-10%	Expenses+10%	Assurance mortality+5%	Annuitant mortality+5%
Insurance participating	(30)	(135)	85	(90)	(20)	(5)	(10)
Insurance non-participating	(185)	270	110	(105)	(20)	(25)	(310)
Investment participating	(50)	(40)	30	(25)	-	-	-
Investment non-participating	(210)	230	20	(20)	(5)	-	-
Assets backing life shareholders' funds	(80)	95	190	(190)	-	-	-
Total	(555)	420	435	(430)	(45)	(30)	(320)

The increased sensitivity to interest rates at 30 June 2009 relates mainly to changes in market rates, derivatives and hedging policy in the Netherlands.

The impact on the group's results from sensitivity to these assumptions can also be found in the MCEV sensitivities included in the alternative method of reporting long-term business profits section.

Page 137

D3 - Sensitivity analysis continued

General insurance and health businesses

	30 June 2009
Impact on profit before tax £m	Interest rates+1%	Interest rates-1%	Equity/ property+10%	Equity/ property-10%	Expenses+10%	Gross loss ratios+5%
Net of reinsurance	(340)	340	95	(150)	(95)	(155)

	30 June 2009
Impact on shareholders' equity before tax £m	Interest rates+1%	Interest rates-1%	Equity/ property+10%	Equity/ property-10%	Expenses+10%	Gross loss ratios+5%
Net of reinsurance	(340)	340	95	(150)	(35)	(155)

	31 December 2008
Impact on profit before tax £m	Interest rates+1%	Interest rates-1%	Equity/ property+10%	Equity/ property-10%	Expenses+10%	Gross loss ratios+5%
Net of reinsurance	(360)	360	90	(90)	(170)	(425)

	31 December 2008
Impact on shareholders' equity before tax £m	Interest rates+1%	Interest rates-1%	Equity/ property+10%	Equity/ property-10%	Expenses+10%	Gross loss ratios+5%
Net of reinsurance	(360)	360	90	(90)	(40)	(425)

For general insurance, the impact of the expense sensitivity on profit also includes the increase in ongoing administration expenses, in addition to the increase in the claims handling expense provision.

Fund management and non-insurance businesses

	30 June 2009
Impact on profit before tax £m	Interest rates+1%	Interest rates-1%	Equity/ property+10%	Equity/ property-10%
Total	10	(20)	55	(5)

	30 June 2009
Impact on shareholders' equity before tax £m	Interest rates+1%	Interest rates-1%	Equity/ property+10%	Equity/ property-10%
Total	(5)	(5)	110	(60)

	31 December 2008
Impact on profit before tax £m	Interest rates+1%	Interest rates-1%	Equity/ property+10%	Equity/ property-10%
Total	15	(20)	50	(50)

	31 December 2008
Impact on shareholders' equity before tax £m	Interest rates+1%	Interest rates-1%	Equity/ property+10%	Equity/ property-10%
Total	-	(10)	130	(130)

Page 138

Capital management continued

D3 - Sensitivity analysis continued

Limitations of sensitivity analysis

The above tables demonstrate the effect of a change in a key assumption while other assumptions remain unchanged. In reality, there is correlation between the assumptions and other factors. It should also be noted that these sensitivities are non-linear, and larger or smaller impacts should not be interpolated or extrapolated from these results.

The sensitivity analyses do not take into consideration that the group's assets and liabilities are actively managed. Additionally, the financial position of the group may vary at the time that any actual market movement occurs. For example, our financial risk management strategy aims to manage the exposure to market fluctuations. As investment markets move past various trigger levels, management actions could include selling investments, changing investment portfolio allocation, adjusting bonuses credited to policyholders, and taking other protective action.

A number of the business units use passive assumptions to calculate their long-term business liabilities. Consequently, the actual impact of a change in the assumptions may not have any impact on the liabilities, whereas assets are held at market value on the statement of financial position. In these circumstances, the different measurement bases for liabilities and assets may lead to volatility in shareholder equity. Similarly, for general insurance liabilities, the interest rate sensitivities only affect profit and equity where explicit assumptions are made regarding interest (discount) rates or future inflation.

Other limitations in the above sensitivity analyses include the use of hypothetical market movements to demonstrate potential risk that only represent the group's view of possible near-term market changes that cannot be predicted with any certainty; and the assumption that all interest rates move in an identical fashion.

Page 139

Shareholder Services

Managing your shareholding

Our Registrar, Equiniti, maintains the Company's Register of Members and if you have any queries in respect of your shareholding, please contact them directly using the contact details provided on page 140. In addition to assisting with general queries, Equiniti can also help with the following:

Amalgamating your shareholding

If you receive more than one copy of our communications, it could be because you have more than one record on the share register. To avoid duplicate mailings, Equiniti can arrange for your accounts to be amalgamated.

Dividend payments direct to your bank account

Instead of having your dividends paid by cheque, you can, if you wish, have them credited directly into your bank or building society account on the dividend payment date. This reduces the risk of cheques getting lost in the post and is also quicker and more convenient as payment is credited automatically on the payment date. Your tax voucher will be sent to your registered address as usual. If you would like to set up a dividend mandate, you can do so via our website www.aviva.com/dividendmandate or by contacting Equiniti to request a mandate form.

Consolidated tax vouchers

If you are a private shareholder who is currently receiving dividends paid directly into your bank or building society account, you will receive one consolidated tax voucher each year instead of a voucher with each dividend payment, unless you request otherwise.

If you live overseas, an Overseas Payment Service is available for certain countries, which may allow you to receive your dividends directly in your bank account in your local currency.*

* Please note that a payment charge will be deducted from each dividend payment before conversion into your chosen currency.

Scrip Dividend Scheme

The Aviva Scrip Dividend Scheme gives you the opportunity to increase your shareholding in the Company by choosing to receive your dividends in the form of new ordinary shares instead of cash. If you have not yet joined the Scrip Dividend Scheme but would like to do so, please contact Equiniti and request a mandate form. You should ensure that your completed mandate form is received by Equiniti no later than 20 October 2009 in order to be effective for the 2009 interim dividend. Further details of the Aviva Scrip Dividend Scheme are included on the Company's website www.aviva.com/dividend

ID fraud/unsolicited mail

Share-related fraud and identity theft still affects many shareholders and we urge you to continue to be vigilant. If you receive any unsolicited mail offering advice, you should inform Equiniti immediately. More information on this can be found on our website at www.aviva.com/shareholderupdates

Corporate nominee

We offer a corporate nominee service, the Aviva Share Account, for shareholders who prefer not to appear on the share register. If you choose to join the nominee account, your personal details will not be entered on our share register but you will have the same rights as registered shareholders and will receive the same shareholder communications. To join the Aviva Share Account or to find out about the terms and conditions, please contact Equiniti

Our website - www.aviva.com

Visit www.aviva.com/shareholders for up-to-date investor information including our latest financial results and key dates. An electronic copy of current and past Annual and Interim Reports can be downloaded from the website. You can also find our current and historic share prices, sharedealing information, news, updates and when available, presentations from the Group Chief Executive. You can also register to receive future shareholder communications electronically.

A range of frequently asked shareholder questions including practical help on transferring shares and updating personal details is available online at www.aviva.com/shareholderguide

Electronic communications

We have embraced the changes brought about by the Companies Act 2006 which recognises the growing importance of electronic communications. We therefore provide documentation and communications to you via our website unless you have specifically elected to receive a hard copy.

Using electronic communications enables fast receipt of documents, reduces our printing, paper and postage costs and has a positive impact on the environment.

ShareGift

The Orr Mackintosh Foundation operates a purely voluntary charity share donation scheme for shareholders who wish to dispose of small numbers of shares when the dealing costs or minimum fee makes it uneconomical to sell them. Details of the scheme are available from ShareGift at www.sharegift.org or can be obtained from Equiniti.

Page 140

Shareholder services continued

Share dealing

We have arranged the following services that can be used to buy or sell Aviva shares which you may find useful.

	Available to shareholders in	If you hold a share certificate	If your shares are held in the Aviva Share Account


Equiniti Financial Services Limited*	UK only	www.shareview.co.uk/dealing Telephone: 08456 037 037	www.shareview.co.uk/dealing Telephone: 08456 037 037


NatWest Stockbrokers Limited**	UK only	Freephone: 0808 208 4411	Freephone: 0808 208 4422


Barclays Stockbrokers Limited†	UK and overseas	UK shareholders: Telephone: 0870 549 3002† For postal applications: 0870 514 3263† Overseas shareholders: Telephone: +44 (0)141 352 3959‡	UK shareholders: Telephone: 0870 549 3001† Overseas shareholders: Telephone: +44 (0)141 352 3959‡


WH Ireland Limited#	UK and overseas	UK shareholders: Telephone: 0845 603 1470 Email: [email protected] Overseas shareholders: Telephone: +44 113 244 2710 Email: [email protected]	Not available

Alternatively, if you hold a share certificate, you can also use any bank, building society or stockbroker offering share dealing facilities to buy or sell shares. If you are in any doubt about buying or selling shares, you should seek professional financial advice.

* Equiniti Financial Services Limited is authorised and regulated by the Financial Services Authority of 25 The North Colonnade, Canary Wharf, London E14 5HS (FSA reference 468631).

Registered in England and Wales, number 6208699.

** Natwest Stockbrokers Limited (NWS) is a member of the London Stock Exchange and PLUS. NWS is authorised and regulated by the Financial Services Authority registered number 124395. Registered Office: Waterhouse Square, 138-142 Holborn, London EC1N 2TH. Registered in England and Wales, registered number 1959479. NWS is operated by a joint venture between The Royal Bank of Scotland Group plc and The Toronto-Dominion Bank.

† Barclays Stockbrokers is the group name for the businesses of: Barclays Stockbrokers Limited, a member of the London Stock Exchange and PLUS. Registered No. 1986161; Barclays Sharedealing, Registered No. 2092410 and Barclays Bank Trust Company Limited, Registered No. 920880. All companies are registered in England and the registered address is: 1 Churchill Place, London E14 5HP. All companies are authorised and regulated by the Financial Services Authority.

Calls made to 0870 numbers will cost no more than 8p per minute, plus 6p call set-up fee for BT residential customers. The price on non-BT phone lines may be different. You can only use these numbers if you are calling from within the UK. Calls may be recorded to monitor the quality of service, to check instructions and for security purposes.

‡ If you are not UK resident, you will need to provide various documents to Barclays Stockbrokers Limited in order to use this service and details will be provided on registration. Please note that regulations prevent this service from being offered to US, Canadian and Australian residents. Settlement proceeds will be sent to either a UK sterling bank account or by sterling cheque.

# WH Ireland Limited is a member of the London Stock Exchange and is authorised and regulated by the Financial Services Authority, registered in England No. 02002044.

Share price

You can access the current price of Aviva plc ordinary shares at www.aviva.com/investors

or by calling FT Cityline on 09058 171 690. Calls are currently charged at 75 pence per minute from a BT landline. Other telephone provider costs may vary. The average time to access the share price is approximately one minute.

If you would like to find out the price of Aviva preference shares, please follow the link on the Aviva website to the London Stock Exchange

2009 Annual General Meeting - voting results

The voting results, including proxy votes and votes withheld, from Aviva's Annual General Meeting held on 29 April 2009 can be viewed on the Company's website at www.aviva.com/shareholders

In addition, you will also find the Chairman's and Chief Executive's 2009 presentation and a webcast of the formal business of the meeting. Information relating to previous Annual General Meetings since 2002 is also included.

Page 141 Group financial calendar for 2009
Announcement of unaudited six months' interim results	6 August
Announcement of third quarter interim management statement	4 November


Ordinary shares - 2009 Interim Dividend


Ex-dividend date	23 September
Record date	25 September
Last date for Scrip forms to be received in order to be effective for 2009 interim dividend	20 October
Dividend payment date	17 November


Preference shares


First dividend payment for 83⁄8% cumulative irredeemable preference shares	31 March
First dividend payment for 83⁄4% cumulative irredeemable preference shares	30 June
Second dividend payment for 83⁄8% cumulative irredeemable preference shares	30 September
Second dividend payment for 83⁄4% cumulative irredeemable preference shares	31 December

Useful contact details

Detailed below are the contact details that shareholders may find useful. Please quote Aviva plc as well as the name and address in which the shares are held in all correspondence. Please quote your shareholder reference number as well, which you will find on your latest dividend stationery.

General shareholding, administration and Aviva Share Account queriesEquinitiAspect House Spencer Road, Lancing, West Sussex BN99 6DA

e-mail: [email protected] | Telephone 0871 384 2953*

*Calls to this number are charged at 8p per minute from a BT landline. Other telephony provider costs may vary

Aviva plc details

Registered in England Number: 2468686

Registered Office: St Helen's, 1 Undershaft, London EC3P 3DQ

Telephone +44 (0)20 7283 2000

www.aviva.com

Internet sites

Aviva owns various internet sites, most of which interlink with each other:

Aviva Groupwww.aviva.com

UK Long-term savings and general insurancewww.aviva.co.uk

Asset managementwww.avivainvestors.com

Aviva worldwide internet siteswww.aviva.com/websites