Aviva Life Insurance

Aviva Life International

Philip Scott - Group Executive Director, Life International

©Avivaplc Disclaimer

This presentation may contain certain “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. By their nature, all forward- looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond Aviva’s control including among other things, UK domestic and global economic 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, inflation, deflation, the timing impact and other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation and other regulations in the jurisdictions in which Aviva and its affiliates operate. 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. Aviva undertakes no obligation to update the forward-looking statements contained in this presentation or any other forward-looking statements we may make.

• Introduction – Strategy – Brand – Bancassurance • Presentations by CEOs with a focus on life business: – France – Delta Lloyd – Italy – Spain • Themed buffet lunch • Managing guarantee risk • Key markets for longer-term growth: – Presentation by MD, Aviva Asia Financial Services • Wrap up • Drinks reception and close

• Aviva Life International is a major business: – Scale and diversity – Significance in terms of Group profitability • A four-year strategic transformation has been implemented • Bancassurance is a key driver of medium term performance: – Acquisition of underperforming assets – Performance improvement through scale, diversity and expertise • ALI is Aviva’s engine of medium- and long- term growth

Country with Country with other ALI presence Aviva Group presence © Aviva plc Slide 6 ALI in context – Aviva Group 2003 operating profit (includes life on achieved profit basis)

35% 38%

27% Aviva Life International* UK Life Aviva General Insurance International * Includes GI operations in France, Netherlands, Italy, Turkey and Poland

Netherlands: bancassurance JV with ABN AMRO

Entered France: Lithuania life bancassurance from Poland from Q4 2004 China: JV life business Italy: major new from 2003 Spain: created bancassurance leading life agreements business Singapore & HK: bancassurance with DBS India: bancassurance from 2002

• Build customer relationships • Build brand equity • Generate value from bancassurance partnerships • Develop businesses with long-term growth potential • Increase value from Group synergies • Defend and enhance margins

• 5 mass-market brands: – Aviva – Norwich Union – Hibernian – Delta Lloyd – Commercial Union • Some niche brands

(e.g. Morley, Navigator) Aviva branded Other brands • Consistent brand style and personality for Aviva • Strategy for brand is: – Aviva as the ‘default’ brand – But no ideological commitment to either single or multi-branding

• 23% of Group life & pensions sales APE • Margins 39.7%… vs group average of 26.1%

Aviva bancassurance life & pension sales (APE) £m 600 £541m +22% vs 2002

300

0 2000 2001 2002 2003 © Aviva plc Slide 11 Bancassurance strategy

• Our strategy is multi-distribution – bancassurance is a tactic in suitable markets • Our diverse range of partnerships is an advantage: – Credibility as a partner – Economies of scale • Service quality is a key priority • We shall work with partner banks to provide a comprehensive offer through channels of customer choice © Aviva plc Slide 12

ALI financial summary - operating profit

Annual premium equivalent 2003 2002 £m £m Europe (excluding UK) France 241 223 Italy 194 153 Netherlands (including Belgium and Luxembourg) 224 158 Poland 35 48 Spain 246 189 Other 101 93 International 187 175 Total annualised premiums 1,228 1,039

New business contribution 2003 2002 £m £m Europe (excluding UK) France 70 69 Italy 45 38 Netherlands (including Belgium and Luxembourg) 62 21 Poland 3 10 Spain 134 87 Other (3) (5) International 46 39 Total new business contribution before effect of 357 259 solvency margin, gross of tax © Aviva plc Slide 14 Life Achieved Operating Profit

2003 2002 £m £m Europe (excluding UK) France 220 228 Italy 70 52 Netherlands (including Belgium and Luxembourg) 189 200 Poland 104 111 Spain 158 83 Other 9 (2) International 81 78 Total achieved operating profit before tax 831 750

Modified statutory life operating profit

2003 2002 £m £m Europe (excluding UK) France 179 142 Italy 30 24 Netherlands (including Belgium and Luxembourg) 107 111 Poland 103 66 Spain 50 27 Other (4) (19) International 38 9 Total modified statutory life operating profit 503 360 © Aviva plc Slide 15

Aviva France

Bruno Rostain

©Avivaplc • Aviva’s market position and prospects • Antarius (Crédit du Nord) • AFER • Financial results and conclusions • Appendix: Aviva’s unit-linked fund performance

France market premium income in €bn 100 Non bancassurance 75 CAGR = 4.4%

0 1999 2001 2003 (estimation) Bancassurance Agents Sales force Brokers Direct

The French Life market by distribution The French Life & Health market channel (premiums received) by class of business (estimated at end Dec. 2003) Direct & Others 6% Protection 17% Sales force 16% Banks Group Individual Brokers 61% pensions 7% 9% savings & Agents pensions 8% 76%

Source: Fédération Française des Sociétés © Aviva plc d’Assurances (2002) Slide 19 Aviva’s market position and prospects - Strong track record in existing sectors

Aviva France new business

By distribution 2003 premium by type of business

In €m Group Protection 3 000 pensions 2.5% 0.5% 2 500 CAGR = 2 000 7.9% 1 500 compared 1 000 to 4.4% for 500 the market 0 1999 2001 2003

Agents Sales force Captive Brokers Other Brokers Direct Savings 97%

– focus on individual savings and pension business – 3.5% market share, ranking it 7th in terms of reserves and 10th in terms of new business – higher proportion of unit-linked business than the market as a whole – high degree of control over its distribution channels

Existing channels have outperformed market growth © Aviva plc Slide 20 Aviva’s market position and prospects - High degree of control over distribution, with a focus on profitability

Aviva Direct Epargne Actuelle: Direct sales a captive broker dedicated to AFER Médéric Epargne 100% Independent brokers 51% Direct & Brokers Others Other captive brokers Aviva Vie Sales Salaried network Agents 450 staff force Aviva Assurances Banks Tied agents 76% Aviva owns UFF: a network of customer financial advisors interface 800 staff 50% Antarius (Crédit du Nord) Joint venture Bank distribution from Oct. 2004 Capital link with © Aviva plc % of ownership Slide 21 French Life insurance market

€ bn CAC 40 3.5 Unit-linked fund turnover (monthly market average) CAC 40 3.0 7000

2.5

2.0 “DSK” tax 5000 efficient products 1.5 commence

1.0 3000

0.5

0.0 1000 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Q1 04

Unit-linked sales are historically highly geared to market levels

Life and savings turnover on a monthly average © Aviva plc Sources: Euronext and Fédération Française des Sociétés d’Assurances Slide 22 Aviva’s market position and prospects - Aviva is positioned to benefit from market improvement

Unit-linked share of individual savings 100%

80% Aviva France – Total 60% France Market Aviva France - 40% AFER Aviva France - 20% non AFER

0% 1999 2000 2001 2002 2003 1Q04

• Aviva France non-AFER business is mostly unit-linked, more so than the market • Aviva France’s objective is to pursue and increase its sales development in unit- linked products supported by Aviva Gestion d’Actifs award-winning performance © Aviva plc Slide 23 • Aviva’s market position and prospects • Antarius (Crédit du Nord) • AFER • Financial results and conclusions • Appendix: Aviva’s unit-linked fund performance

• Partnership with Crédit du Nord begins 1st October 2004 for a minimum of 12 years • Exclusive distribution for most product types through CdN’s network of over 600 branches with access to a 1.2+ million strong customer base • Collaboration in Life follows successful cooperation in General insurance • Aviva to provide administration management and fund management of euro funds on its own systems • The IT development costs have been taken in the Profit and Loss accounts

Crédit du Nord Aviva France

50% 50%

Commercial Managing entity Antarius Network • Administration • Technical Antarius • Accounting contracts • Legal CdN asset management • Fund management of unit-linked funds Aviva Gestion d’Actifs • Fund management of Euro funds

• 2003 new business: €769m representing around 70% of non AFER new business • Mathematical reserves at 31/12/2003: €3.4bn (of which 40% unit-linked) Cumulative new business growth over two years (base 100 in 2001)

+ 40 % Q

Q Antarius (CdN) (+35%) Crédit du Nord customer Sogecap (+31%) coverage: 17% + 30 % Q

+ 20 % Q UAF / Natio Vie (+16%) ABP / Prédica (+14%) Market (+11%)

+ 10 % Q CNP (+10%) Erisa / CM-CIC (+8%)

What Aviva offers Benefits for Crédit du Nord

• Effective collaborative relationship • Confidence in business partnership already proven in General insurance

• Worldwide bancassurance experience • No learning curve, full range of competitive and local product expertise products today

• Re-usable supporting systems • Efficient platform providing cost efficiencies

• Class leading fund management • Competitive product offering and improved performance growth and profits

Projected • Funding uses existing IRR (p.a.) over 12 years resources in France with 17% low initial capital payment 16% Cost = EV + Cardif exit 15% costs + systems 14% development costs 13% • Modest statutory profit 12% anticipated from Antarius 11% 10% • This acquisition will not 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% impact our capacity to CAGR of new business 2004-2016 deliver regular dividends to (assumes 25% unit-linked) the Group

Existing business Antarius Situation post Change excluding AFER Antarius and Protection business (Aviva Direct)

Operational expenses for portfolio administration: €78m +Antarius - savings = €78m + 0% Policies in-force: 620 000 + 208 000 = 828 000 + 33% Technical reserves: €12.3bn + €3.4bn = €15.7bn + 28%

Aviva’s objective is to handle Antarius volumes within existing cost-base

• Successful association for over 25 years: – Representing funds of €30bn and over 588 000 customers – With a single product concept, sold in two versions: a euro product first and now a multi-support • Strong customer loyalty built on low charges and strong financial performance year after year: – 76% of new business comes from existing customers – Around 35% of new members are introduced through existing customers – Low lapse rate: 2.7% – The AFER bonus rate has always been a reference on the French market • Efficient distribution through: – Epargne Actuelle, a captive broker, which has some 80 staff, operates in 35 agencies, with around 200 000 customers, representing 34% of AFER premium income – Aviva Assurances tied agents • Low loadings and low administration cost (0.475% and 0.10% respectively; see appendix 1) © Aviva plc Slide 32 AFER prospects

• We are optimistic as to the % Growth prospects for this important distribution channel following the 40% agreement, signed in October 30% 20% 2003. It should unleash AFER’s 10% potential. 0% FY 2001 FY 2002 FY 2003 Q1 2004 Aviva France - AFER euros French Market - euros

• The target for 2004 is to increase the proportion of unit-linked sales AFER New Business (average monthly volumes) In €m 244 250 222 20% 18,0% 194 195 200 16,0% 152 145 143 15,2% 15% 150 9,9% 11,4% 10% 100 7,2% 5% 50 5,4%

0 0% 2001 2002 YTD Nov. Disc Dec. Disc Jan Disc Feb Disc March 03 03 04 04 04

AFER U.L. AFER euros % UL/Total © Aviva plc Slide 33 AFER unit-linked margin benefit

AFER Technical Provisions Euro/Unit-linked Margin benefit (in € bn) % Unit-linked Uplift on 45 LNB Total Net/Net from 2004 AFER Margin 35 6% (1) 1.3% 25 15% 3.2% 20% 4.3% 25% 5.3% 15 1997 98 99 2000 01 02 03 04 05 06 07 08 09 10 (1) Actual FY 2003 % of LNB Euros Unit-linked

Assumptions: • Total AFER growth of 7% • UL: 15% of new business

Opening Embedded value (in €bn) Pre-tax Life achieved operating profit (in €m) 2.2 2.0 400 1.8 350 1.6 300 1.4 250 200 1.2 150 1.0 100 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003

APE (in €m) & New business margin Pre-tax Life MSSB operating profit (in €m) (gross of tax & cost of SSM in %) 300

400 35% 250 300 200 200 30% 150 100

0 25% 100 1999 2000 2001 2002 2003 1Q 1999 2000 2001 2002 2003 2004 APE 1Q APE 2Q to 4Q NBC margin G/G Ytd © Aviva plc Slide 36 Pensions reform in France

• Precise conditions were finalised in April 2004 • First PERP products launched in Q2 2004 • Anticipated business of around €1bn in 2004, as consumers adapt to longer-term saving commitments, thanks mostly to transfers from existing savings • Savings rate in France is already high • Aviva France viewpoint: – Several PERP products will be launched: – PERP AFER: decision to be taken – PERP non AFER: June 2004 launch – PERP Crédit du Nord: May 2004 launch – The PERP is an opportunity for our networks – It is an additional product through which we can satisfy our clients’ need for pension provision and develop regular premium business – Marketing approach to be based on informing the customers and stressing our specialist pensions know-how, so as to differentiate our offer from the mass campaigns run by the banks © Aviva plc Slide 37 Conclusions

• Significant potential to increase higher margin unit-linked sales supported by current trends: – strong performances of Aviva Gestion d’Actifs – high degree of control over distribution networks – market recovery • Antarius provides not only a strong return on investment, but also an opportunity to lock-in unit cost reductions on existing business • AFER performances are strong, with scale advantage and upside unit-linked potential • We see new PERP market as a medium / long-term growth opportunity, creating additional marketing opportunities for existing products

Lipper Fund Awards Prix La Tribune/Standard & Poor's Best fund: international convertible bonds - Gold award: best provider of extended fund range Victoire Convertibles over 5, 3 and 1 year 2003 Prix L’Agéfi Prix Investir Magazine 2nd prize over 3 years: diversified euro fund category - Golden laureate for SICAV range over 5 years Victoire Profil Equilibre

Prix Le Revenu Prix Mieux Vivre Votre Argent Gold award: international bond fund over 10 years - Gold award: fund management over 5 years – all sectors Victoire Oblig International Silver award: fund management over 1 year – all sectors Bronze award over 10 years - Victoire Sécurité Europe

Prix La Tribune / Standard & Poor’s Prix Le Revenu Gold award: best Euro zone equities fund over 3 years - Insurance sector awards: Victoire Actions Euro Bronze award: overall performance over 3 years Gold award: Euro zone shares over 3 years Silver award: international shares over 3 years Gold award: international bonds over 3 years Lipper Fund Awards Silver award: diversified funds over 3 years Best fund: international convertible bonds - Victoire Convertibles Prix La Tribune / Standard & Poor’s Best fund: Defensive profile Europe - Gold award: best provider of extended fund range Victoire Sérénité over 3 years Best fund: Euro zone equities - Gold award: best provider of extended fund range Victoire Actions Euro over 1 year Appendix 1 AFER distribution costs and charges

Loadings

3% of 2.66% Acquisition new business commissions Paid to distribution channels

Resource for the insurer to 0.34% cover sales/advertising costs...

0.10% Administration costs 0.475% on 0.06% Other net costs Administration mathematical reserves 0.315% Margin before cost of capital and tax

The consistently strong performance of AGA is a powerful sales support for our Life operation.

• Focus on a limited number of UCITs (around 35), mainly based on Euro zone and bonds • Extremely low cost base as a percentage of funds under management (expenses of 2.7 bp at end 2003) • €49bn funds under management (vs €44bn end 2002) • 72 staff - of whom 12 are specialist fund managers Quartile ranking of AGA funds at end December 2003 1 year to 3 years to 5 years to 31/12/03 31/12/03 31/12/03

Number of funds 35 35 29 Top quartile 43% 77% 69% 1st and 2nd quartiles 89% 94% 90% 1st, 2nd and 3rd quartiles 100% 100% 97% 1st, 2nd, 3rd & 4th quartiles 100% © Aviva plc Slide 41

Delta Lloyd

Niek Hoek

©Avivaplc 1. Dutch life market & Delta Lloyd`s position 2. ABN AMRO joint venture 3. Operating efficiency 4. Guarantee management 5. Financial results

The market GWP life market shares

• 4.5% of total European life ING 22.2% premium income Aegon 13.3% • $1,345 per capita spending Fortis 12.1% • 5.7% of Dutch GDP DL Groep Including ABN AMRO 10.6% • CAGR 9.6% over 1980 - 2001 • GWP life Euro 24 bn = 60% of Rabobank 7.4% total GWP Achmea 7.4%

• 55% regular premium / 45% SNS Reaal 5.9% single premium AXA 2.5% • 33% group life / 67% individual Allianz 1.7% • Average solvency margin 229%

APE basis The market Delta Lloyd - 2003

5% 5% 5% 9%

16% 16% 18% 26%

22% 24% 30%

57% 55% 47% 65%

1998 2002 2008 Intermediary Direct Bancassurance Others Intermediaries will remain the main distribution channel for financial service products © Aviva plc Source: Delta Lloyd own research Slide 46 Multi Label - Multi Channel: A variety of choice for the customer

• Distribution channel linked to Labels / Channels Products / Sectors exclusive label Life HealthGI Bank • Channel / label relation concerning product development, 9 999 pricing and marketing Intermediary • Full range of competitive and profitable products 9 999 • No captive agents in the Direct intermediary channel, but franchise formula

• Cross-selling potential between 9 99(9) the sectors Bank • Access to a huge private, SME and corporate customer base

Challenges Opportunities • Regulator taking a more • Profitability is highly geared sophisticated approach on to investment returns capital adequacy • Demographic trends remain • Enhanced consumer favourable to insurers protection • Government withdrawing • Tax reliefs on products from social security / under pressure healthcare • Historically low long-term • Increasing value bond yields management

... but offers a wide range of opportunities for

well-positioned professional players! © Aviva plc Slide 48 1. Dutch life market & Delta Lloyd‘s position 2. ABN AMRO joint venture 3. Operating efficiency 4. Guarantee management 5. Financial results

• Expands distribution capabilities with minimal channel conflict • Expands client base • Creates leading market positions in new business • Economies of scale / synergies through SSC strategy • Conversion opportunities from ‘third party’ products to JV products • Opportunity to market full product range to ABN AMRO clients • Asset management opportunities

The right venture at the right moment with the right partner!

• Exclusive distribution agreement with a 30 years duration • Usage of ABN AMRO brand in The Netherlands • Agreement covers existing Life and GI in-force business of ABN AMRO • Delta Lloyd management control (51%/49%) • Fund management (own risk) provided by Delta Lloyd • Exclusive access to >500 ABN AMRO Bank shops and 78 regional offices • Access to ABN AMRO customer base with: 4.5 million private customers/325,000 SME’s/80,000 private banking clients • ABN AMRO achieved a stand alone top 10 position in Dutch market/ together with Delta Lloyd top 4

Target: To double penetration ratio from current levels © Aviva plc Slide 51 Achievements 12 months after start

Products & Sales • Brokered GI converted to own risk in 1Q2004 (>60% of own risk NWP in 2003) • Reduced intermediary function for other suppliers • Stopped writing loss-making direct annuities (was 50% of book) • Full range of new pension products to cover SME demand • Successful integration of Employee Benefit Consultants (EBC) • New Flexible Pension Plan launched in 2004 (FPP product) Organisation & Synergies • Restructured organisation • Back-office integration started • Administration of new products on Delta Lloyd systems • ABN AMRO staff on DL Group payroll • Significant reduction of operational expenses - €8m achieved to date © Aviva plc Slide 52 ABN AMRO results 2003

KPIs Euro m / FY 2003 After tax and minorities • Life APE 72 m • Life new business contribution 23 m • LAOP 42 m • GI operating profit 22 m = Operating profit before tax and minorities 64 m 21 m • GI COR 97%

• Acquisition earnings enhancing in year 1 after goodwill amortisation of €9m • IRR for acquisition of 12% • Implied multiple for earnings of approximately 10x • Integration savings on track

+ Outsourcing Desired Profile Core 9 Customer focussed issues Facilities 9 Asset management ICT Infrastructure Front Office Non - core Mortgages Unit-linked 9 Standard services

GI Private 9 Broad availability of services 9 Focus: operational excellence Securities Asset Management

Sourcing priorities

Group GI • Mortgages Market exposure Life Traditional • Shared-Service Centre General Insurance Group Life Banking • ICT infrastructure Health • Facilities Change needed Insourcing • Unit-linked administration + Core competence & focus

Initiative Implementation cost Benefit Lowest cost level in the SSCs Currently being scoped market with fixed quality standards • Restructured organisation Euro 20m to be borne by ABN AMRO integration • New SLAs with AA Bank the JV • Link to SCCs

• Euro 14 m per year IT outsourcing Euro 20 m • 7 years contract

• Euro 2.9 m per year Facilities outsourcing Euro 2.2 m • 6 years contract

General contract • Euro 1.5 m per year none temporary staff • 2 years contract

Initiative 2003 achievement Future target

Permanent staff numbers 5% reduction in FTE 3% reduction per year

€50m target reduction in Cost reduction underlying cost base Further reduction achieved

FY2003 margin to 27.7% Margin improvement mainly through change in Expand margins further product mix

Product typeYield guarantee Interest profit to Interest profit to policyholder shareholder

Return exceeding Risk products none none technical interest

Saving products Fixed interest Return exceeding none single premium ( Capital market + 50 bp ) fixed interest

Saving products Spread 50-75 bp Technical interest Interest surplus regular premium + yield surplus

Investment return

Technical interest 50 - 75 bp Interest profit Yield surplus = 3 or 4 % shareholder policyholder shareholder

Yield government bonds

Technical interest on new business 3% since 1999, others 4% © Aviva plc Slide 59 Guarantee management traditional group business

Product type Description

z No guarantees Separate accounts z Almost all investment return for policyholders “kapitaal contract” z Only small margin for shareholder

z Benefit + tariff guarantee but no yield guarantee

Separate accounts z Negative interest surplus will be balanced with future “garantie contract” interest surplus

z Special interest profit agreements

z Same structure as traditional savings products against Default contracts regular premium (see example previous slide)

Minimal interest rate risk on separate accounts of group business

• Guaranteed maturity benefit (DL Mix Fund only) • Asset allocation currently circa 60% fixed interest / 40% equities • Based on 4-2 % interest guarantee (2% since Oct 2003) • Minimum premium payment duration 10 years • Lapse before maturity means also loss of guarantee • AMC of 130-150 bp covers expenses, cost of guarantee and margin • DL holds a separate reserve for guarantee obligations

Guarantees are being scaled-down and are priced into product

30% 25% 20%

15% 10% 5% 0% -5% Total investment

-10% return NPV (interest profit) % of NPV (premium) % of NPV -15%

-20% 3% 4% 5% 6% 7% 8%

Traditional SP(5% guarantee) Unit-linked Traditional RP

Large potential from higher investment returns © Aviva plc Slide 62 Allocation of investment profits

Total Delta Lloyd Life reserve Euro 14.3 bn

Policyholder account Shareholder account

• Group segregated funds 26% • Group non-linked 36% • Individual non-linked • Unit-linked 11% – Savings 26% – Risk 1%

Σ Σ

37% 63%

Considerable upside potential from investment returns for shareholder © Aviva plc Slide 63 Delta Lloyd has a sophisticated risk management tool box in operation

• Tool box examples – ALM models in operation for life, general & health insurance, pension funds – Tools for scenario risk analysis – Clear asset allocation – Regular risk reports covering the whole risk map – Hedging model & strategy • Hedging strategy – Focus on a healthy solvency margin > 150% – Specific hedging of “5% holdings” – Residual hedging through indicies (AEX, S&P 500) – Buying Put protections (90%/60%) – Selling Call protections (120%/140%) ALM models in place focus on risk reduction techniques

Credit risk at year end 2003 Performance equity portfolio 140%

120%

100% AA 19.31% 80%

60% AAA A 10.99% 56.18% 40%

20%

BBB 0% 11.48% 1999 2000 2001 2002 2003

DL equity portfolio NR B Benchmark 1.23% 0.81% AEX relative

Average rating = AA - Better than peer indicies driven by 5% holdings

Benchmark: 2000 - 2002: 45% CBS locals, 45% AMX, 10% AEX, 2003: 65% MSCI Netherlands, 35% MSCI World © Aviva plc Slide 65 Sensitivity analysis solvency ratio

• Actuals FY 2003 Delta Lloyd Dutch life business* – Available assets Euro 1,778 m – Required assets Euro 753 m – Solvency ratio 236 %

• Test A – Equities - 35 % – Property - 20 % – Solvency ratio 136 %

• Test B – Equities - 35 % – Property - 0 % – Solvency ratio 165 %

* Excluding Belgium and Germany © Aviva plc Slide 66 1. Dutch life market & Delta Lloyd`s position 2. ABN AMRO joint venture 3. Operating efficiency 4. Guarantee management 5. Financial results

Opening Embedded value Pre - tax LAOP Pre - tax MSSB operating profit

221 214 2,086 200 189 1,806 1,866 1,806 179 162

111 107

2000 2001 2002 2003 2000 2001 2002 2003 2000 2001 2002 2003

£ m / UK GAAP

Results affected by poor financial market conditions

Volumes APE Contribution - gross Margin

224 62 27.7% 28.8% 170 158 22.3% 131 38

13.3% 21 63 18 6.9% 9

2000 2001 2002 2003 1Q04 2000 2001 2002 2003 1Q04 2000 2001 2002 2003 1Q04

£ m / UK GAAP ABN AMRO, expense control and other management actions all having a beneficial effect on margins

• Strong brands give DL scope to become market leader in life sales • ABN AMRO venture delivering strong IRR of 12% • Specific projects underway to increase operational efficiency • Cost efficiencies/margin improvements achieved and targeted • Appropriate response to policyholder demand for guarantees • ALM risks under strict control • Increasing new business margins due to actions taken

Delta Lloyd - well positioned in a challenging but improving market!

AEX 1999 - 2004 Interest NL 10 yr 1999 - 2003 671 5.5%

338 339 4.3% 4.1% 218 3.6%

Dec 1999 Mar 2003 Dec 2003 Mar 2004 Dec 1999 Mar 2003 Dec 2003 Mar 2004

Gross Domestic Product NL Unemployment ratio

3.5% 6.5% 5.3% 4.1% 1.2% 1.3% 3.8% 3.4% 0.2% -0.1%

2000 2001 2002 2003 2004e 2000 2001 2002 2003 2004e

Euro m Actual Actual Variance Dutch GAAP (2003 including ABN AMRO) 2003 2002 %

• Gross revenues 7,369 5,486 34% • Gross written premium 4,982 4,341 15% • Investment income 2,210 1,022 116% • Total new business (Life: APE basis) 562 354 59%

• Inflow new money (net ) 669 502 33% • Operational expenses (2002 includes ABN AMRO) 753 838 -10% • Ordinary result before tax 311 158 97% • Result after tax 247 138 79%

• Shareholder funds 2,244 1,713 31% • Assets under management 41,044 36,338 13%

Multi-Channel Group pensions distribution product Rabo- z Rabobank bank z Interpolis 22 z Robeco

z Nationale Nederlanden ING z ING Bank / Postbank 99 99 z RVS / Movir

z AMEV / Stad Rotterdam Fortis z Woudsend / Amersfoortse 9 99 z Fortis Bank

z Aegon Aegon z Spaarbeleg / Accent 9 99 z Aegon Bank

Delta z Delta Lloyd z 99 Lloyd OHRA 99 z ABN AMRO

Product Description

z Complete range; tailor-made to Delta Lloyd Life insurance z Competitive pricing to increace market share

z 50%/50% regular/ single premium Life Insurance z Strong mortgage product z Direct annuities priced on positive Embedded value

z Strong new Motor product Non-life Private z Over 1 million policies sold to customers

z 2 product packages for SME’s: standard + tailor-made Non-life commerical z Over 200,000 policies sold

z Presently mainly “Vreemd Produkt” (AAV acts as IFA) Health z Plan to convert “VP’s” to own product

Aviva Italy Italy’s pre-eminent bancassurer Cesare Brugola

©Avivaplc Agenda

• Growth market and Aviva’s positioning • Bancassurance partnerships • Products • Shareholder value • Future opportunities

High Growth of almost 20% Per Annum Over Last 6 Years – twice as fast as any other European market

Premium Income 1998 - 2004 * 80000 * 70000* 70000 62780 60000 55298 50000 46328 €m 39784 40000 35597 30000 26483 20000 10000 0 1998 1999 2000 2001 2002 2003 2004

Generali Group 13,916,720

Allianz Group 8,945,350

San Paolo - 7,181,340 Fideuram Group

Unipol Group 5,061,150 Aviva top five by end 2005 ? Poste Vita 4,489,480

Cattolica Group 2,819,920

Aviva Group 2,469,878

Monte Dei Paschi Di 2,389,900 Siena Group

2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000

© Aviva plc Slide 80 Broadening and Building Partnerships New bancassurance partnership 2000 2001 with Banca Popolare Commercio e 2004 BPU agreement New bancassurance partnership Industria (now Banche Popolari extended to include with Banca delle Marche Unite) BPB branches New New Extended distribution bancassurance bancassurance through former ING partnership with 2000 partnership with 2002 2004 Bank distributors UniCredito Banca Popolare di 300 Lodi

250 279.5m

Annual Growth 243.5m 200 Rate: 43% 202.9m 150

100 95.1m A.P.E. EURO Millions 50

2000 2001 2002 2003 © Aviva plc Source: Aviva plc Slide 81 A Network of Networks…

AVIVA Italia Holding SpA 100%

Commercial Union Commercial Union Commercial Union Commercial Union FINOA Srl Commercial Union Assicurazioni SpA Life SpA Insurance SpA Vita SpA 50% Italia SpA 50% 50% 100% 50% (Bipielle Investimenti SpA 100% (Banca delle Marche 50%) (Banca delle Marche 50%) (UniCredit Banca 49%) 50%)

AVIVA Vita Spa Commercial Union Eurovita Spa Commercial Union 50% Previdenza SpA 80.96% Vita SpA (BPU S.c.r.l. 50%) 100% (other Banks 19.04%) 1%

UNICREDITO Valle d’Aosta UniCredit Banca Retail UNICREDITO Piemonte UniCredit Private Bank CU Vita UNICREDITO Liguria UniCredit Banca d’Impresa

BPL GROUP Banca Popolare di Lodi Bipielle Adriatico CU Previdenza Banco di Chiavari Cassa di Risparmio di Trento Banca Popolare di Mantova

Cassa di Risparmio di Asti Cassa di Risparmio di Bolzano Banca del Fucino Banco di Romagna Banca Popolare di Puglia e Basilicata Cassa di Risparmio di Carpi Eurovita Cassa di Risparmio di Cento Cassa di Risparmio di Cesena Cassa di Risparmio di Rimini Tercas Banca di Ciociaria

BPU GROUP Banca Popolare Commercio e Industria Aviva Vita Banca Popolare di Bergamo CARIME

Banca Delle Marche GROUP Banca Delle Marche CU Life CARILO © Aviva plc Slide 83 … and also Distribution Agreements

Banca Popolare del Cassinate CU Vita

Credito Valtellinese CU Vita

BCC di Bene Vagienna – CN CU Vita BCC di Pianfei e Rocca De Baldi – CN BCC del Chianti Fiorentino – FI Banca del Mugello Fiorenzuola – FI BCC di Casalgrasso e Sant’Albano Stura – CN BCC di Caraglio e della Riviera dei Fiori – CN Cassa Rurale di Folgaria –TN BCC dell’Alto Garda – TN BCC di Manzano – UD BCC di Civitanova Marche –MC Banca della Ciociaria – FR BCC di San Marzano di San Giuseppe – TA BCC Don Rizzo Alcamo – TP Cassa Rurale di Tenno - Val di Non – Cles – TN

* BCC = Banca di Credito Cooperativo

11% BDM 253

BPCI 241 7% BPU CARIME 326 BPB 380 N/A BCC (*) 167

12% Other 336

100% TOTAL 3,420 2,467

(*) former Nad.Ned. distributors Further opportunities with less

developed bank networks... © Aviva plc Slide 85 Opportunity to Increase Customer Penetration

30%

CU VITA UNICREDITO 23% *EUR 2.25M

20% PENETRATION CU PREVIDENZA EUROVITA BPL CU LIFE 4,4% AVIVA VITA B.D. MARCHE *EUR 0.3m BPCI/CARIME 2% 2% ** EUR 0.3m *EUR 0.4m

BANK RETAIL CUSTOMERS 2003 500,000 1,000,000 1,500,000 2,000,000 NB* PREMIUM PER BRANCH

2.5

1.5

0.5 € m. – New Business

0 SanPaolo IMI Unicredit MPS Banca Intesa CRF Market Aviva CU Vita Lombarda Average Companies

40% Insurance Reserves vs Total Assets Under Management

35%

1,836 30% MPS

438 25% CR Firenze 3,359 3,168 Unicredit SanPaolo IMI 20% 770 Banca Lombarda

15% 3,087 Intesa

10%

Number 5% of branches % Insurance Reserves / Total AUM %

0% 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 € m. Insurance Reserves per branch Source : Estimates based on bank annual reports 2003 © Aviva plc Slide 88 Aviva Italy Bancassurance Model Investment X% Bank Group

Dividends

n t v D

e n s i 100% 50% tm e v i

d e m n t e

t s

Bank Branches Return on Dividends capital Life employed Subsidiary for Italy Life in 2003: 12% (post tax)

• Aviva usually takes an equity stake in the partner bank, in return for access to distribution • The total shareholder’s strategic investment in partner banks is €694m as at 31 March 2004 The amount in listed securities is €352m • Future agreed shareholder investments in partner banks but not yet arranged amount to €179m • Investments purchased at market value (independent review of value for non-listed investments) • For non-listed strategic investments, we include a protection clause in the partnership agreement relating to the realisation value of our investment in the bank

What Aviva offers Benefits for our partners

Reputation for local bancassurance No learning curve, high sales productivity expertise; coupled with Aviva’s world- potential wide experience

Developed administration platform, web Proven, efficient platform, no enabled for fast, cost effective processing implementation risks, low expense base at bank branch

Short time to market for new products; Highly responsive to market opportunities. reputation for innovation Full range of competitive products offered

Strong, stable management team with an Experienced team with high motivation to entrepreneurial approach ensure success

Strategic investment in Bank and share of Long term shareholder in bank and JV company growing share of profits in JV company Proven corporate governance model

Higher proportion of Unit Linked and Index Linked products, without in-house guarantees and lower capital (solvency margin) requirement.

The Market in 2003 Aviva in 2003

Traditional Traditional Unit-Index 38% 47% Linked 53% Unit-Index Linked 62%

Source: ANIA -Individual Life total sales 2003 © Aviva plc AVIVA - New Business in 2003 Slide 93 Overview of Aviva product mix/characteristics

Unit Linked Minimum underlying returns on SP policies purchased 50% from Investment Banks, with counterparties rated Aa3/AA- or above. No guarantees on RP policies. (Aviva market leader with UCI)

Index Linked Structures purchased from counterparties rated Aa3/AA- or above, exactly matching product benefits 12%

Capitalisation Minimum returns between 0% and 2.5% (2.5% on single premium policies only). Normally a fixed profit margin to 27% Aviva, rather than a percentage of investment return which is variable

Traditional, including Term Assurance Similar to capitalisation policies but with a higher level of 11% death benefit. Growing term assurance portfolio of annual premium policies covering mortgages and bank loans

First insurer to launch Unit Linked products on the Product Innovation: market

Experienced development team, with acknowledged product leadership in market place. Close working with Anticipation of market needs partner throughout development process ensures and resistant design: success

Automated systems and processes – able to deliver product from specification to launch in 2 weeks. In Short speed to market: 2003, a total of 25 new products were introduced through the various distribution channels

Products supplied by innovative workflow and service Operational Excellence: delivery

Worldwide product experience: World class expertise available from Aviva Group

New Business Premium - APE New Business Contribution (1)

250 50 45m 200 194m 40 38m 153m 150 30 28m £m 126m £m 100 20 12m 49m 50 10

0 0 2001 2002 2003 2004 – 1st 2001 2002 2003 2004 – 1st quarter quarter

(1) Pre tax, pre cost of capital

24.9 24.3 22.2 23.2

2001 2002 2003 2004 1st quarter

• Diversification of bank partners • Economies of scale (e.g. one system platform) • Low expense base • Product pricing disciplines • Management of product mix • Mutual benefit through the JV Life Company

Modified Statutory Profit (1) Life Achieved Operating Profit(2)

70m 35 70 30m 30 60 55m 26m 52m 25 24m 50 21m £m 20 £m 40 29m 15 30 10 20 5 10 0 0 2000 2001 2002 2003 2000 2001 2002 2003

(1) UK GAAP Basis, Gross of Tax (2) Gross of Tax

Total Premium per Employee 2002 Expense Ratios (Life) (Life & Non Life)

2.16% € 5.2 m

Expense as Proportion of 0.97% premium € 2.3 m income

Consolidated Aviva Life Top 15 Life Companies Aviva Companies Premium per Italian Market Companies Staff

Source: ANIA © Aviva plc Slide 100 • Italian market and Aviva’s positioning • Bancassurance partnerships • Products • Shareholder value • Future opportunities

Traditional State pension Privately funded retirement Ageing costs as a % of pension assets promise as a % ratio/pensions GDP as % of GDP of final salary

100% 100 <65 14 75% >65 80 67% 60 50% 12 40 25% 10 20 2,8 9 0 0% % of GDP 2004 2021 2050 8 Italy France UK Europe Over 65s will 15.4% in 2002 the Total reserves in 2003 67.3% one of the increase from 22% highest in Europe (EU € 37.4 bn of which highest in Europe today to 31% in 2021 average 12.2%) € 1.3 bn Individual policies and 49% in 2050 2.1m PF members and By 2050, overall 0.5m individual policies population reduced at end 2003 from 58 m to 51 m

Replacement ratio (% final salary) (Employee, age 60, 35 years contribution) Forecasted importance 2000 2010 2020 2030 2040 2050 of private pension

State pension 67.3 67.1 56.0 49.6 48.5 48.1

Private pension 0.0 4.7 9.4 14.5 16.7 16.7

TOTAL 67.3 71.8 65.4 64.1 65.2 64.8

• Gradual postponement of retirement age towards 40 years working service • Reduce the possibility of early retirement on a full pension and introduce incentives in order to convince employees to postpone retirement • TFR: new rules allowing transfer to the Private sector • Reduction in pension contributions for new employees • Enhanced fiscal incentives (reduction of capital gain tax during the accumulation period) • Increase in contribution ceiling for tax relief

Opportunities • € 13 bn contribution from employers each year to TFR • TFR re-evaluation rate: 3.4% actual performance in 2003 versus 5.7% average for Pension Funds Our plans • Insurers of “open” pension funds • Providers of annuities to members retiring from service with pension fund benefits • Insurers of risk benefits • And naturally distribution of own individual products (PIP) through bank branches • Distribution of own individual product (PIP) through financial advisors

Aviva is Strongly Positioned for Pension Developments

• Italy’s pre-eminent bancassurer • Expanding its distribution network • With a cost competitive advantage • Innovative • With a fast & proven development capability • In one of the most exciting growth markets

1 HSBC 143.1 16 Dexia 17.6 31 BCP 6.6 2RBS 76.7 17 Intesa 17.5 32 MPS 6.3 3UBS 70.0 18 Nordea Bank 16.6 33 BPVN 5.2 4 Barclays 48.1 19 Std. Chartered 16.5 34 Capitalia 5.2 5 BNP Paribas 45.8 20 S. Paolo IMI 14.9 35 Northern Rock 4.9 6 BSCH 44.1 21 Danske Bank 13.6 36 BNL 4.6 7HBOS 42.5 22 Banco Popular 11.0 37 BPU 4.6 8DB 41.1 23 AIB 10.4 38 BES 4.3 9 BBVA 37.6 24 Bank of Ireland 10.3 39 Banca Lombarda 3.4 10 LTSB 37.4 25 Abbey National 10.3 40 Bankinter 2.5 11 Credit Suisse 34.6 26 Svenska 9.8 41 BPM 2.0 12 SocGen 31.0 27 Commerzbank 9.3 13 ABN AMRO 39.9 28 HVB 9.2 BPL 2.2 14 CA-CL 29.8 29 SEB 8.1 BPL Investimenti 1.6 15 UCI 26.6 30 Banesto 7.0 Reti Bancarie 1.4

% of Single Premium

Year 1 Years 2 - 6

Initial Charge (after commission to bank) : 2.0% Nil

Annual Charge (after commission to bank) : 0.5% 0.5%

Life Company Expenses : 0.9% 0.3%

Life Company Profit : 1.6% 0.2%

Margin (Discounted Profit Flow over 6 years) = 2.5% of single premium 25% of APE

©Avivaplc • Aviva market leader

• Business development

• Shareholder value

• 5 acquisitions from Aseval (June 2000) to Growth in Market Share Since Acquisition 10.0% Caja Granada (September 2002) 7.5%

m • Total Aviva investment of

h £505m

S 5.0%

m • Combined market share r

P purchased 3.4% 2.5% • Profitable growth of JVs,

to market share of Aviva 0.0% Aseval Bia Galicia Unicorp Vida Caja España Total Aviva bancassurance of 9.2% Bancassurance of the total life market at end 2003

New business sales (APE) in Aviva Spain Managing a Profitable Product Mix

2002 Full Year € 301m 2003 Full Year € 356m

Pension Pension 27% 36%

Life Risk 9% Life Risk 14% Life & Savings 64% Life & Savings 50%

Source: Aviva © Aviva plc (1) APE for 2003 £ 246 m Slide 113 Aviva No 1 in Life Business

Premium Income

RANKING POSITION MARKET SHARE EVOLUTION 1º 12% 10.0% 10% 7.4% 8% 6.9% 6% 3.5% 4% 4º 5º 2% 6º 0% 2000 2001 2002 2003 2000 2001 2002 2003

Source: ICEA

Market Leader in Spain in 3 years(1)

• Trusted partners with strong franchises • Partners incentivised for value growth • One-factory business model • Proven and successful bancassurance process • Management expertise to develop the business • Aviva brings ownership, controls and insurance expertise

• Business development

• Shareholder value

• 11.1m customers • 12.6% of clients have policies • Less than 1.5 policies per client

Client Penetration

• Ageing Population • 3,713 Branches • Low Insurance Penetration • 20% growth next 5 years • Strong growth forecast • Growing in new regions Market Branch Growth Network

Plan to Exceed Market Growth © Aviva plc Slide 117 Penetration Increase of over 30% in 2 years

Total Life Policies/Total Bank Clients 40.00%

30.00% Aseval

20.00% Caja Espana Unicorp Vida 10.00% Bia Galicia Caja Granada 0.00% 2000 2001 2002 2003

Further Potential For Growth

Targets based on Best Practice Performance by Aviva Partners

16 Pensions Business 14 12 Actual 10 Potential 8 6

APE Per Bank Client € Client Bank APE Per 4 2 0 ABCDE Protection Business Bank 50 Savings Business 4.5 45 4 40 3.5 35 3 30 2.5 25 € 2 20 1.5 15 1 10 APE Per Bank Client Client Bank Per APE APE Per Bank Client € Client Bank APE Per 0.5 5 0 0 ABCDE ABCDE Bank Bank © Aviva plc Slide 119 Business Development in Action

• Aligning strategy and plans between partners • Tailored training programs at partners and branch level • Integration with bank product range • Leveraging best practice across the Aviva network • Expanded Product Offering - Addressing the clients’ needs

Target – A bigger share of a bigger market

• Business development

• Shareholder value

Bancassurance: new business contribution pre-tax and cost of capital (100% Level) • High margin products • Average Gross NB Margin 160 59% for 2003 140 • NB IRR post tax and cost of 120 SM(1) 30% for 2003 100 • NBC post tax post cost of SM

£m 80 £78m 60 • After allowing for goodwill and 40 expected earn-out payments 20 deal IRRs become circa 12% 0 (1) Solvency Margin 2000 2001 2002 2003

Customer

Benefits Premiums

50% Profits 50% Profits Bank Partners Commissions JV Companies

Aviva Spain Fees Services

50% Profits 50% Profits TPA (1) Bancaja

© Aviva plc (1)Aseval provides third party administration (TPA) services for other JVs Slide 123 Spanish bancassurance protection is inherently more profitable than traditional protection business... 100% Traditional UK protection product cashflow

50% •

Pricing: less competitive E

P 0%

pressure f 12345678910

o years -50%

• Loyal client base % -100% • Low expenses in Spanish bancassurance -150% -200% • Revenue based commission in Spanish bancassurance protection product Spain 50% cashflow 40%

...which leads to lower strain E P 30%

and significantly higher margins f

o 20%

% 10%

0% 12345678910 years

0.5%

m 1.0%

u 0.4%

0.5% m

f 0.3%

f 0.0%

% 12345678910 0.2%

% -0.5% 0.1% -1.0% 0.0% -1.5% 12345678910

• Tax efficient product • Competition with bank deposit accounts • Level loading meeting customer needs • Tax advantages if held for 5 years • Max industry charge 2% pa, typical JV • Higher lapses as also used for shorter charge 1.5% term savings • Long duration and high retention • Level commissions and low costs • High margin, breakeven year 3 • Lower margin but high IRR © Aviva plc Slide 125 Shareholder income and expenses: unit-linked pension contract Illustration Year 1 Year 2+ Annual Annual - Expenses = Profit - Expenses = Profit 2.00% Charge Charge

1.00%

0.00% % of Fund of %

-1.00% i

-2.00% Expenses Admin Expenses Bank Commissions - Yr1 only Initial Expenses - Yr1 Only

Acquisition and administration costs (% of premium, 2003)

6 6.45% 5

% 3 3.04% 2 2.20% 1 1.55% 0 Aseval Aviva Other large Total Spanish life bancassurance bancassurers market cons.

Increased competitive advantage against the market

100.0% Increased weighting Bancassurance Gross of protection Margins 80.0% High volumes of savings

60.0% Average margin 55%(1) 40.0%

Q1 ’04 margin 20.0% 60%

0.0% Q4 Q2 Q4 Q2 Q4 Q2 Q4 2000 2001 2001 2002 2002 2003 2003

No indication of margin pressures

Source: Annual reports © Aviva plc (1) Average 30% Post COC & tax Slide 128 Growing Shareholder Value

• Active management of product mix • Focus on growing the value of NBC • Commission agreements reduce need for capital support • Growing economies of scale from single admin. platform • Cash generating model with low capital requirements

Blueprint for continued success

• Spain’s leading life business in 3 years – Strong growth prospects – Attractive product pricing – Expense advantage – Strong margins • Shareholder value visible at early stages of business development

Ranking Position Company Premiums 2003 2002 Million € GRUPO AVIVA 1.767 1 4 MAPFRE/CAJA MADRID 1.712 2 3 CAIFOR 1.596 3 1 BBVA SEGUROS 1.237 4 5 GENERALI 1.184 5 7 BANSABADELL VIDA 740 6 8 IBERCAJA 718 7 11 ASCAT VIDA 704 8 12 ALLIANZ 611 9 14 CASER 529 10 10

Source: ICEA © Aviva plc Slide 131 Aviva’s bancassurance network has Appendix 2 leading market shares in territories that account or c.70% of Spanish GDP

• Strong multi-regional Caixa Galicia presence in fastest Caja España 2% growing regions in 5% 6% 2% Spain 1% 6% 19% • Growing presence in 3% attractive areas outside home regions 17% 2% (Madrid, Catalunya) 10% 2% 4% • 11.1 million 2% Key: %s show customers, proportion of GDP 13% 3,713 branches Bancaja • 3rd largest bank network Caja 4% Unicaja Granada

Business Aviva’s EV Current commenced consideration(1) acquired customers Region

Bancaja Aug 2000 £217m £47m 2.5 m Valencia

Unicaja Oct 2001 £95m £14m 3.4 m Andalusia

Caixa Galicia Oct 2001 £93m £6m 2.0 m Galicia

Caja España Jan 2002 £88m £12m 1.5 m Castilla y Leon

Caja de Granada May 2003 £12m 0 1.7 m Andalusia

£505m £79m

(1) Future consideration subject to performance © Aviva plc Source: Aviva Slide 133 Appendix 4 Transforming Aviva’s Position in the Spanish Market New business sales (APE) 300 Average compound growth 163% p.a. 2000 (£ 57m) – 2003 (£ 246m)

250 First

£m 200 bancassurance APE deal

150

100

0 1997 1998 1999 2000 2001 2002 2003 © Aviva plc Source: Aviva Slide 134 Appendix 5 Positive “Cash-Flow” From Early Stages of Growth Business

Bancassurance pre-tax MSSB evolution 55 50 50 45 40 35 FY £m 30 29 25 20 FY 16 15 10 FY HY 7 5 HY FY HY 0 00 01 02 03 © Aviva plc Source: Aviva Slide 135

Managing Guarantee Risk

Peter O’Donnell – Finance Director Aviva Life International

• Managing guarantees in Aviva • Guarantees in major business –France –Spain – Italy • Valuing guarantees

• An important differentiator for the industry • Highly valued by customers… • Must be properly priced, valued and managed • Increasingly sophisticated approaches applied to legacy book • New products subject to strict control processes

Only offer contracts that add value to policyholders and shareholders

Product Design Product • Pricing controls Product Design Design • Capital efficiency • Risk management Aviva Control & Monitoring • Risk appetite • Group policy framework Control • Internal capital assessment & • Reporting and valuation Monitoring • Risk management reporting • Global monitoring of credit ALM • Group risk concentrations Asset Liability Management • Clear control framework • Duration and credit benchmarks • Investment in stochastic models • More sophisticated hedging strategies

Continuing focus on risk reduction through monitoring, management and transparent reporting Managing Guarantee Risk

• Managing guarantees in Aviva • Guarantees in major business –France –Spain – Italy • Valuing guarantees

Fenetre Other –incl. trad euro Products product (7%) Protection (10%) (3%) Traditional euro Unit linked – product no guarantees (17%) (9%)

Unit linked AFER AFER with guar’td death (63%) Protection (48%) benefits (8%) (15%)

Unit linked – no guarantees (3%) Unit linked with guar’td death benefits (17%) New business – In-force – Total policyholder Total APE 2003 €349m liabilities of €43,781m at 31.12.03

AFER Bonus Rate against Government Bond Index (%pa) • One fund - one 10 guarantee 9 • Current guarantee is 8 higher of: 7 – 60% of market rates; 6 – 65% of average 5 bonus rate for last 2 4 years 3 • Guarantee provides 2 safety net to 1991 1993 1995 1997 1999 2001 2003 policyholders AFER bonus rate Gov. bond rate (TME index) Guarantee

• Mutualisation limits shareholder exposure • Exposure limits • Improves returns to • Active management Credit Risk policyholders • Portfolio controls • Book value accounting smoothes returns

• Sound contract design • Asset allocation • Stochastic analysis • Duration management Interest Rate Risk confirms low inherent risk • Agreed benchmarks • Controlled duration risk to • Active use of enhance returns derivatives

• Principal risk is large increase in interest rates • Regular monitoring Surrender Risk plus a large rise in • Active duration surrenders management • Loss of tax benefits keeps • Management of capital retention rates high – 96% gains in 2003

Equity / Property Floating

AA (27.4%)

Market Value of Assets Value of Corporate Bonds €28,600m at 31.12.03 €8,947m

* Government bonds: Includes debt issued by state and semi-state bodies

Assumptions Distribution of in-force valuations 1000 stochastic interest rate scenarios 100 Illustrative scenarios

14%

12% 600

10%

400

6% 200

4% Model - 2% 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 system 0% 0123456789101112131415161718192021222324252627282930 -200

-2% Σ Impact x probability

-400 -4% = + Additional cost of guarantee Policyholder behaviour assumptions Management discretion assumptions

Low risk of adverse scenario x low impact = low cost of guarantees

• Substantial AFER portfolio has guaranteed surrender values and low minimum returns • Risks to shareholder are low and carefully managed • Regulator can remove surrender guarantee ‘in extremis’ • Guarantee formulae can be adjusted with agreement of association

• Managing guarantees in Aviva • Guarantees in major business –France –Spain – Italy • Valuing guarantees

Risk Risk (1%) (14%) UL UL Pensions Pensions (35%) (30%) Traditional Savings (38%) Traditional Savings (31%) Other / Other / Externalisation Externalisation (7%) (3%) Financial Financial Unit Linked Unit Linked Annuities Annuities (11%) (6%) (11%) (13%)

In-force – Total policyholder New Business – Total APE 2003 €354m liabilities of €6,999m at 31.12.03

Aseval Externalisation Business 35

20 €m 15

10 Annual Income/outgo Income/outgo Annual 5

0 2004 2007 2010 2013 2016 2019 2022 2025 2028 2031 2034 2037 2040 2043

Asset Income Liability Outgo

• Cashflow matching achieved with FI securities and structured bonds/SPVs from leading banks • Exposed to risk of sub 2% yields from 2040 © Aviva plc Slide 15 Savings Reserves by Guarantee

High quality fixed interest assets with very significant unrealised gains to cover the guarantees 900 791 779 800 713 700 600 €m 500 400 300 211 200 154 100 0 Guarantee Guarantee Guarantee Guarantee Guarantee 1%pa 3%pa 4%pa 5%pa 6%pa or DGS rate if lower

Total Technical Savings Provisions of € 2,648 m

Equity Govt BBB Cash & repo (6%) debt (8.0%) (1%) (12%) Other public debt AAA (5%) (19.9%)

A (46.3%)

Corporate AA Bonds (25.8%) (76%)

Market Value of Assets Value of rated securities €2,087m at 31.12.03 €1,964m

• New product range has only small manageable guarantees; e.g. 1% on Aseval savings contract • Rapid growth of Spanish business dilutes exposure to historical guarantees • Strict credit controls • Cash flow matching for guaranteed products • Controlled use of derivative instruments to improve matching; e.g. structured bonds on annuity contracts

Limited legacy guarantees in Aviva Spain

• Managing guarantees in Aviva • Guarantees in major business –France –Spain – Italy • Valuing guarantees

Other Other Unit Unit Linked Linked (2%) (1%)

Traditional Savings Unit/Indexed Unit/Indexed (39%) Linked Bonds Linked Bonds (56%) (55%) Traditional Savings (43%)

Pension Protection Contract (1%) (2%) Protection (1%)

Total 2003 new APE of €281m Total liabilities of €9951m

No new business with guarantees above 2.5%pa

2500 2,211

2000

€m 1500 1,018 1000 735

500 196 89 0 Guarantee Guarantee Guarantee Guarantee Guarantee 0%pa 2%pa 2.5%pa 3%pa 4%pa

Total Technical Savings Provisions at 31.12.03 €4,248m

BBB (0.1%) Other incl. Mutual

Variable Fixed Rate Bonds rate bonds (64.0%) & cash (30.6%)

AA (82.2%)

Total non-linked assets Average Rating = AA €4,251m

• Conservative asset strategy: 93%+ in investment grade bonds

• Duration management approach followed – floating rate holdings to cover early termination

• Prudent local reserving approach – Initial estimates suggest reserves for guaranteed products greater than fair value cost

• Managing guarantees in Aviva • Guarantees in major business –France –Spain – Italy • Valuing guarantees

• EV methods following global trend towards economic reporting • New industry standard for embedded value reporting aligned to Aviva internal developments • Facilitates internal Aviva developments of: – Improved ALM approaches – Consistent reserving and pricing – More transparent reporting – Aggregation and management of risk at Group level

CFO Forum development is a big step forward for the industry

• Initial, high-level impact analysis complete • Key changes for Aviva: – Explicit valuation of options and guarantees – Alignment of risk margins – Look-through to service and investment subsidiaries – Improved disclosures including economic sensitivities • Aviva implementation project underway – Present CFO Forum disclosures at 2004 year-end

• Low level of risk on new products • Well managed legacy portfolio • Continuing to invest in new techniques • Product guarantees included in pricing • Improved reporting systems will increase transparency

Multi-channel & multi-product portfolio with offsetting risks

Aviva Life International

Philip Scott - Group Executive Director, Life International

• ALI’s other markets • Presentation by MD of Aviva Asia Financial Services • Wrap-up • Drinks reception and close

90 • US expected to be the major source of worldwide savings growth in 80

medium and long-term 70 • Aviva a strong niche player 60 • Low interest rates hit sales in 2003 – Aviva’s response: £m 50

– Product withdrawal and redesign 40 – Reduction of commissions 30 – Staff redeployment to: – Improve service levels 20 – Bring forward new product launches 10 • We are confident of strong medium- term growth 0 2001 2002 2003 New business (APE) Achieved operating profit © Aviva plc Slide 31 Turkey Life 30

• A major growth opportunity: – 70 million population 20 – Life insurance penetration <0.5% of GDP • Aviva is market leader for new

business £m 10 • Key to the future is pensions – Aviva has clear advantages: – High-quality sales force (mainly graduates) 0 – Market-leading productivity 2001 2002 2003 – Culture of compliance and customer service – Rapidly emerging brand -10 New business (APE) Achieved operating profit © Aviva plc Slide 32 Poland and other Central and Eastern Europe 120

• Includes Poland, Lithuania, 100 Czech Republic, Romania

and Hungary 80 • Regional trends dominated by severe recession in Poland £m 60 • Scale of Polish in-force portfolio keeps profitability 40 high • EU accession and economic 20 recovery promise substantial

growth in the medium term 0 2001 2002 2003 New business (APE) Achieved operating profit © Aviva plc Slide 33 Australia Australia Life 70

40 • Niche life business £m 30

growing well 20

• Navigator impacted by: 0 2001 2002 2003

– Bear market New business (APE) Achieved operating profit – Software problems in service delivery Australia Navigator – Cost of correcting these 1,000 7 6 800 problems 5 Now recovering 600 4 400 3 Sales (£m) Sales 2 200 Operating profit (£m) 1

0 0 2001 2002 2003

Asian Financial Services Analyst Presentation

Charles Anderson - Managing Director - Financial Services - Asia

China Start Date: January 2003

India Hong Kong Start Date: June 2002 Purchase Date: July 2002

Singapore Purchase Date: July 2001

Our Winning Proposition for Asia Financial Services: Aggressive development in our chosen markets of multi-distribution focusing on effective bancassurance relationships and the disciplined growth of agency salesforce. © Aviva plc Slide 37 Asia Life Insurance market essentials

Indicators based on Year 2002 Singapore Hong Kong India China

Population size (in millions) 4.1 6.8 1,051.5 1,284.5

GDP (in billions of US$) 87 162 475 1,237

GDP growth rate (in %) 2.2% 2.3% 5.5% 8.0%

Life insurance premium volume (in mio of US$) 3,026 8,400 12,274 25,054

World market share - life premium (in %) 0.20% 0.55% 0.80% 1.63%

Life insurance premium per capita (in US$) 730.1 1,237.9 11.7 19.5

Life insurance premiums as % of GDP 3.48% 5.20% 2.59% 2.03%

• Solid start

• Focus on profitability, ROCE

• Valuable infrastructure created

• Positioned for future growth

• Asia Springboard established

• Purchased 100% of ICS from DBS Group in July 2001 • Concluded 10 year bancassurance deal with DBS at the same time • Total amount invested in life business of S$290m • Sold Direct Sales Force in 2002 • Launched profitable bancassurance product offerings in April 2002 • Achieved market leader position in the Financial Advisors (IFA) channel in 2003 • Signed NKF distribution agreement in Q1 2004 • Improved service significantly

APE basis 2000 2001 2002 2003 - Individual & Group DBS DBS/Aviva Aviva Aviva

Market Share 4.0% 5.2% 6.1% 9.0% APE (in mil GBP) 16.2 26.8 23.5 29.8

Key Performance Indicators 2002 2003 (in million of GBP) Actual Actual Variance

APE 23.5 29.8 27.0% Expenses 9.9 8.8 -10.6% LAOP (gross) 12.3 14.2 15.2% ROCE in % 10.5% 12.4% 1.9%

• Ratio of Goodwill to NBC: Decreased from 14.5 in 2002 to 7.8 in 2003 • 2004 performance to date – New Business up 15% compared to 2003 on an APE basis – Strong margins maintained

2001 2002 2003 APE basis Actual Actual Actual % Regular Premium (RP) 21.7% 47.6% 81.5% % Unit Linked 4.3% 25.7% 43.9% RP Average Case Size (in S$) 1,068 1,104 1,877

• Profit Margins – Second highest within Aviva Group (40.2% in 2003*) – Unit linked products more profitable than with profits – Tight expense control contributes positively

• Realise full potential of DBS relationship – Out-of-branch sales – using full financial needs analysis – Increasing focus on risk products • Further development of IFA/Broker market – Pro-actively support growth of this segment (Less than 5% in 2003) – Maintain number 1 position and improve profitability further • International Financial Solutions – Targeting HNW and Expatriates – Business now launched • Affinity Deals – National Kidney Foundation (1 million supporters) deal signed – Others in the pipeline

• Volumes starting to flow • Efficient operating model • Differentiated market position • Further opportunities for growth

• HK is 6th largest life insurance market in Asia and 21st worldwide • Our approach is substantially different to other players • Our foundation is a 10 year agreement with DBS

Distribution Channels Market Now Aviva Now Aviva in 2006 Direct Salesforce 70% 0% 0% Bancassurance 20% 100% 70% IFA/Others 10% 0% 30% Product Category by APE Traditional 75% 70% 50% Unit-Linked 25% 30% 50%

* Aviva estimates

• Formed in July 2002 following the acquisition of Dao Heng Assurance and Kwong On Insurance from DBS Group for £31 million

Singapore Hong Kong

Backoffice Support Aviva Life HK DBS Bank • Finance • Sales Support • Top 5 in HK • Products • Call Centre • 60 branches • Admin • 21 Employees • 300 • IT Relationship Managers • 1 million customers © Aviva plc Slide 46 Hong Kong: Financial Performance

Key Performance Indicators 2002 2003 (in million of GBP) Actual Actual

APE 0.3 3.1 Expenses 1.3 2.4 LAOP (gross) (0.6) 1.0 ROCE in % -1.9% 3.2%

• 2004 ahead of plan year to date for new business and NBC – APE significantly increased from Q1 2003 • Margins expected to be comparable to those in Singapore in 2004

• Build on brand positioning as a quality long-term savings provider – Use of the bank’s brand helps to manage channel conflict • Achieve the full potential from the DBS franchise – Extend scope of activity to other customer segments e.g. “emerging affluent” – Conduct direct marketing activity on credit card database – over 1 million customers • Enter the IFA market in 2004 – Few global brands active in this channel – Replicate our business model to achieve significant economies and offer local service capability – IFA represents around 10% of total HK market

• Huge potential

• Substantial capabilities developed

• Leadership in bancassurance

• Supportive local partner in Dabur

• Looking to increase stake from 26% to 49%

• Rapidly growing middle-class of 150 million • Life market is expected to continue to grow at over 20% pa • Dominance of LIC still leaves plenty of room for growth

Large Untapped Population Insurable Potential: Now: Currently Population: 216 million 1.05 billion 300 million Insured: 84 million

Source: Market estimates Apr – Dec 2003 (9 months)

Market Share by Premium Private Market Share by Policies Players Private Players 6% 12%

• Aviva was the last of 12 entrants - now ranked 9th • Our share of Private (non-LIC) market is over 3%

• DSF headcount at 1,900 2004 (24 Sales Centers) 2003 (17 Sales Centers) • 21 branches in 18 cities 2002 (9 Sales Centers) • Bancassurance partners: ABN Amro, Amex, Canara Bank, Ludhiana Delhi Lakshmi Vilas Bank, BBK Jaipur Gurgaon • As of Feb 2004, Lucknow Guwahati Bancassurance contributed Vadodra Kanpur Patna Ahmedabad Indore Asansol 66% of new business whereas Kolkata DSF contributed 34% Mumbai ABN (on APE basis) Pune Vizag Amex Hyderabad LVB • Chennai Canara Bangalore• BBK Coimbatore Cochin

250,000 customers 400,000 customers 9 branches 5 branches

27 million customers 2 million customers 2,450 branches 220 branches

HNI focus – 25,000 customers + 2 branches

• Financial terms reflect our leadership position – No upfront payments or capital payments – No creation of goodwill in our accounts • Exclusivity secured – ABN-Amro deal for a period of 10 years – Amex deal for a period of 5 years – Canara & Lakshmi Vilas deal for a period of 6 years • Our role in sales process is paramount – Our people embedded in bank sales network – Product mix moving in favourable directions – Product margins appear good

• Current plans built around – APE in excess of GBP 70m within 5 years – Elimination of expense overruns within 7 years – Investment in the business total GBP 50m – Return of capital of 18% on IRR basis • Currently considering how we can expand faster organically

• Huge potential

• COFCO a strong partner

• Solid start in Guangzhou

• Beijing and Chengdu next

Huge potential market Slow & Opaque Regulation with 20% to 30% of Insurance Markets growth rate

Existing players Market getting crowded Struggling to Total Life players: 29 modernize 11 Local; 18 Foreign WTO accession Helps to open up market Local players dominate earlier With overwhelming European Share of market bancassurance Existing bancassurance models yet to be deployed models unprofitable successfully for insurers

We have a strong & Reforms still have a influential JV partner long way to go

• 50:50 Joint Venture • Profile of our JV partner - COFCO – Listed in Fortune Global 500 enterprises for 9 consecutive years – 5th largest state-owned enterprise – China’s largest grains and oil import & export enterprise – Has good relationships with government – Has GI insurance broking JV with AON • Started operation in Guangzhou in January 2003 – Capitalized as a National Business (approx. GBP 40m) – Guangzhou: – Population 7.2 million – Life premium volume at US$991 million – No. of life players: 6 locals & 7 foreign branch/JVs – Current staff headcount at 120 and DSF headcount at 1,000 – Centralised National Processing Center for country-wide underwriting, claims and policy admin will be located in Guangzhou

Beijing • Beijing – Population 14.6 million – Life premium volume at US$2,782 million Chengdu – No. of life players: 8 locals & 5 foreign branch/JVs – Our future China HQ Guangzhou – Expect to launch in 2004 • Chengdu – Population 10.4 million; Life premium volume at US$522 million – No. of life players: 6 locals only; We want to be first foreign JV player – Preparation in final stage. Hope to launch in 2004 • Future Expansion targeted to reach 10 cities by 2010 – Based on economics and demographics – Seek to obtain first-mover advantage wherever we can – Aim to achieve 10% market share in each – 10 By 10 By 10

• Current plans built around – APE in excess of GBP 100m within 5 years – Elimination of expense overrun within 7 years – Investment in the business total GBP 130m – Return of capital of more than 20% on IRR basis • Currently considering further strategic options for development – Particularly in bancassurance and broker distribution

• Our first priority is to realise the full potential of our existing businesses • However, we are also alert to the additional opportunities which will emerge in Asia: – We will only enter new geographic markets with meaningful potential – Potential to leverage our robust regional operating platform (Life and Navigator) for further business with banks, IFAs etc – Sustained emphasis on competitive differentiation, based on Aviva’s proven strengths

• Controlled but fast expansion from a low (in fact, nil) base • We are bringing our expertise and a quality approach to Asian markets • Focus on profitability • Corporate governance in place • Differentiated position – Not a just “me-too” approach – Bancassurance leadership in key markets • Achieving good financial and operational results from acquisitions

Aviva Life International

Philip Scott - Group Executive Director, Life International

• France: – Growth in net unit-linked margin – Crédit du Nord – attractive growth and shareholder economics • Netherlands: – Turnaround from ABN Amro – Pricing and cost improvements • Italy – continued growth at stable margins • Spain – strong growth prospects from penetration of bank clientele/ market • Asia: – Built platform – Increased resource and focus • Guarantees – well managed