Investor presentation

June 2011

Disclaimer

Cautionary statements:

This should be read in conjunction with the documents filed by Aviva plc (the “Company” or “Aviva”) with the United States Securities and Exchange

Commission (“SEC”). This announcement contains, and we may make verbal statements containing, “forward-looking statements” with respect to certain

of Aviva’s plans and current goals and expectations relating to future financial condition, performance, results, strategic initiatives and objectives.

Statements containing the words “believes”, “intends”, “expects”, “plans”, “will,” “seeks”, “aims”, “may”, “could”, “outlook”, “estimates” and “anticipates”,

and words of similar meaning, are forward-looking. By their nature, all forward-looking statements involve risk and uncertainty. Accordingly, there are or

will be important factors that could cause actual results to differ materially from those indicated in these statements. Aviva believes factors that could

cause actual results to differ materially from those indicated in forward-looking statements in the presentation include, but are not limited to: the impact of

difficult conditions in the global capital markets and the economy generally; the impact of new government initiatives related to the financial crisis; defaults

and impairments in our bond, mortgage and structured credit portfolios; changes in general economic conditions, including foreign currency exchange

rates, interest rates and other factors that could affect our profitability; the impact of volatility in the equity, capital and credit markets on our profitability

and ability to access capital and credit; risks associated with arrangements with third parties, including joint ventures; inability of reinsurers to meet

obligations or unavailability of reinsurance coverage; a decline in our ratings with Standard & Poor’s, Moody’s, Fitch and A.M. Best; increased competition

in the U.K. and in other countries where we have significant operations; changes to our brands and reputation; changes in assumptions in pricing and

reserving for insurance business (particularly with regard to mortality and morbidity trends, lapse rates and policy renewal rates), longevity and

endowments; a cyclical downturn of the insurance industry; changes in local political, regulatory and economic conditions, business risks and challenges

which may impact demand for our products, our investment portfolio and credit quality of counterparties; the impact of actual experience differing from

estimates on amortisation of deferred acquisition costs and acquired value of in-force business; the impact of recognising an impairment of our goodwill or

intangibles with indefinite lives; changes in valuation methodologies, estimates and assumptions used in the valuation of investment securities; the effect

of various legal proceedings and regulatory investigations; the impact of operational risks; the loss of key personnel; the impact of catastrophic events on

our results; changes in government regulations or tax laws in jurisdictions where we conduct business; funding risks associated with our pension

schemes; the effect of undisclosed liabilities, integration issues and other risks associated with our acquisitions; and the timing impact and other

uncertainties relating to acquisitions and disposals and relating to other future acquisitions, combinations or disposals within relevant industries. For a

more detailed description of these risks, uncertainties and other factors, please see Item 3, “Risk Factors”, and Item 5, “Operating and Financial Review

and Prospects” in Aviva’s Annual Report Form 20-F as filed with the SEC on 24 March 2011. Aviva undertakes no obligation to update the forward

looking statements in this announcement or any other forward-looking statements we may make. Forward-looking statements in this presentation are

current only as of the date on which such statements are made.

2

Overview

Delivering against the targets

• At least £1.5 billion operational capital in 2011

• Life IRR of at least 12% with payback of 10 years or less

• 2011 general insurance COR of 97% or better

• Additional cost savings of £200 million and £200 million efficiency gains by 2012

A clear strategy

• Increase focus and depth in 12 countries

• Excelling in Life & GI, driving out composite value

1. A strong customer base, with a growing franchise

2. Tight cost control

3. A strong balance sheet

Valuation upside*

• Dividend yield of over 5.5%

• Valued at only 8.5x IFRS earnings

• Trading on only 70% of EEV NAV

3

* All measures are based on share price of 435 pence

Dividend yield = total dividend for 2010 over share price

IFRS earnings = IFRS profit after tax, non-controlling interests, preference dividend and coupon payments on direct capital instrumentsOverview &

strategy

2.22.3

2.0

2.55

0

1

2

2007 2008 2009 2010

A diversified portfolio

4

£2.55bn

2010 IFRS operating profit

£bn

– with resilient profits

Sustainable

IFRS operating profit

0%

20%

40%

60%

80%

100%

by region by business

GI &

Non-life

Life

UK

Europe

N.Am

Asia Pac

Overview &

strategy

5

Significant growth in all key performance metrics

IFRS

operating profit

Net operating

capital generated

FY10

£1.0bn

£1.7bn

FY09FY10FY09

£2,550m

£2,022m

NAV

IFRS

EEV*374p

621p

FY10FY09

IFRS

454p

FY10

Dividend

25.5p

FY10FY09

6%24p

IFRS Return on Equity

FY10

10.9%

14.8%

FY09

26%70%

80p

Funds under management

£402bn

FY10FY09

£23bn£379bn

* EEV-equivalent embedded value basis

Overview &

strategy

6

Strong growth in Life & GI

Life IRR

10.0%

12.5%

2.5

ppt

FY10FY09

Life sales (PVNBP)

£33.4bn

£32.0bn4%

FY10FY09

Life operating profit

£1,887m

£2,318m

23%

FY10FY09

GI & Health sales (NWP)

£9.2bn

£9.7bn

GI COR

99%

97%6%

FY10FY09 FY10FY09

£960m

GI & Health operating profit

£1,050m

FY10FY09

9%

Overview &

strategy

Growing return on equity

7

8.5%

12.0%

10.9%10.2%

15.8%

14.8%

0%

4%

8%

12%

16%

Life GI Group

FY09 FY10

Group IFRS return on equity stated after tax, minority interest, preference dividend and DCI over opening shareholders’ fundsOverview &

strategy

Strong progress continues with a good start to 2011

8

General insurance:

• Strong premium growth and improved

profitability

• UK GI sales up for the 5th consecutive

quarter

• Brand strategy working: 580,000

additional motor customers since start of

2010

• Appointed preferred strategic partner to

HSBC across Europe

Life insurance:

• increasing returns from a change in

business mix

• Management actions to improve

profitability and capital efficiency drive

lower sales volumes in Italy and the US

Good strategic progress

• Continued focus on priority markets

where we have strength and scale

• Reduced shareholding in Delta Lloyd

from 58% to 43% generating proceeds of

£381 million

• On track to meet the Group’s near term

targets

Overview &

strategy

Life IRR 1Q11 1Q10

UK 16% 14%

Europe ex DL 13% 11%

North America 14% 13%

Asia Pacific 13% 12%

Total IRR excluding Delta Lloyd 13.7% 12.3%

Delta Lloyd 9% 5%

Total IRR 13.1% 11.3%

GI COR 1Q11 1Q10

Total GI COR of which: 97% 102%

UK 98% 104%

Europe ex DL 95% 111%

North America 98% 99%

Worldwide sales 1Q11 4Q10 1Q10

Change

on 4Q10

Change

on 1Q10

Long-term savings 8,764 8,767 10,174 - (14)%

GI & health NWP 2,690 2,363 2,465 14% 9 %

Worldwide sales 11,454 11,130 12,639 3% (9)%

Driving profit and dividend growth

9

Excelling in both

Life & General Insurance

Increasing focus and depth in 12 countries

Building on our core capabilities

Driving out composite value from the

businesses

Demonstrating financial discipline through a range of short term targets

Overview &

strategy

Countries in which Aviva operates

10

Aviva is currently in 30 countries…

Belgium

Czech Republic

France

Germany

Hungary

Ireland

Italy

Lithuania

Netherlands

Poland

Romania

Russia

Slovakia

Spain

Turkey

UAE

UK

Luxembourg*

Europe and Middle East

* Aviva Investors only

Canada

USA

North America

China

Hong Kong

India

Indonesia

Malaysia

Singapore

South Korea

Sri Lanka

Taiwan

Australia*

Asia Pacific

Overview &

strategy

…we will focus on 12

11

Italy

France

Spain

Ireland

UK

Poland

Turkey

Russia

Canada

US

China

India

80% of our Life & GI profit already comes from these 12 countries

Europe North America / Asia

Countries must provide

either:

• $100 million contribution

to IFRS profits and 12%

ROCE

or

• $1 billion of franchise

value

Overview &

strategy

12

2009 Assets

2009–14 Expected Increase in Assets

European L&P assets expected to grow by

$1.7 trillion between 2009-2014

Source: Oliver Wyman

Europe has highest potential growth in L&P assets in

the near term

8.1

1.7

Europe

(inc UK)

1.6

1.5

Asia

(ex Japan)

($ trillion)

3.9

1.3

North

America

12Overview &

strategy

Continued growth in third party assets

Focus on growing franchise value

Focus on growing profits organically

Further 15% sold down leaving a

minority holding

Invest and deepen presence in

priority markets

Invest and deepen presence

Delta

Lloyd

North

America

Asia

Pacific

Aviva

Investors

Europe

UK

Gross capital

generationIFRS operating

profit contribution

0.91.4

0.80.9

0.4*0.5

0.60.4

--

-0.1

Strategic direction

13

FY 2010 (£bn)

Driving profit and dividend growth

* Excluding Delta Lloyd longevity reserving of £0.2 billion post tax & MI

Overview &

strategy

Capital

Cash

Cost &

efficiency

Customer, brand

& distribution

Structural

advantage

Differentiation

Scale &

efficiency

Diversification brings wide-ranging benefits

• 30 – 40% less capital required to write GI new

business

• Solvency II will bring more clarity to this benefit

• Complementary cash flow characteristics

• Half of cash flow generated from GI businesses

• Cost & operational efficiencies

• Sharing of key skills and capabilities

• Over 53 million customers and growing

• Integrated brand advantages

• Global leadership in bancassurance

14Overview &

strategy

70% increase in net capital generation provides strong dividend cover

15

£bn

2.0

1.0

FY10

£2.7bn

FY10

£1.0bn

FY10

£1.7bn*

Operating

capital generated

New

business

investment

Underlying

capital generated

2010 vs 2009

FY09

£1.0bn

FY09

£1.5bn

FY09

£2.5bn

70%

£0.7 billion uplift from 2009 driven by:

• £0.2 billion higher gross capital generated

• £0.2 billion lower US new business strain

• £0.2 billion lower GI capital requirements

• £0.1 billion benefit of UK inherited estate

2010

£bn

Operating capital

Generated Usage Net

UK 0.9 0.1 1.0

Europe 0.8 (0.5) 0.3

North America 0.6 (0.3) 0.3

Asia Pacific - (0.1) (0.1)

Delta Lloyd* 0.4 (0.2) 0.2

Total 2.7 (1.0) 1.7

* Excluding Delta Lloyd longevity reserving of £0.2 billion post tax & MICapital

generation

Effective use of capital to grow shareholder value

16

2010

£bn Sales

Capital

usage

IRR

%

Payback

period

years

UK Life 10.3 (0.1) 15 7

Europe Life 13.5 (0.5) 13 7

North America

Life4.7 (0.4) 14 4

Asia Pacific Life 1.6 (0.1) 11 13

Delta Lloyd Life 3.2 (0.1) 7* 16

Non-life** 13.7 0.2 n/a n/a

Total 47.1 (1.0) 12.5 8

* Life capital efficiency (life capital usage over life sales) excluding Delta Lloyd & Australia

Improved life capital efficiency*

4.8%

3.8%

FY10FY09

£33bn

£36bn

FY10FY09

Increased future cash flows

*Delta Lloyd IRR excludes German operations closed to new business

**Non-life sales include investment sales and GI & health net written premiums

Capital

generation

Balance sheet assets remain high quality

Government Bonds

• 96% investment grade

• Limited exposure to higher risk sovereigns

• Minimal losses

17

Corporate Bonds

• 90% investment grade or NAIC rated

• Minimal losses

• Limited exposure to financial institutions in higher risk countries

Mortgages and Loans – minimal losses

£13bn Healthcare and UK commercial property with

1.3x rental cover

£7bn Dutch residential mortgages with minimal losses

£8bn Securitised mortgages with minimal residual risk

£7bn Other loans with low LTVs and/or guarantees

Equities

• Significant hedging remains in place

• £4.2bn held by Delta Lloyd continues to outperform

FY09

£bn

FY10

£bn

Government bonds 17.0 19.1

Corporate bonds 33.7 38.7

Asset backed securities 8.3 6.8

Other 1.0 1.3

Debt securities 60.0 65.9

Mortgages and loans 32.6 34.7

Cash 6.6 8.5

Equities 5.1 5.3

Properties 2.2 2.0

Other investments 2.8 3.3

Total investments 109.3 119.7

Other assets 28.7 28.2

Total shareholder

assets138.0 147.9

Balance

sheet

A strong credit track record

18

A demonstrable track record of credit outperformance

across a range of funds

Exceptionally high quality mortgage portfolios

Reduced holding with significant downside protection

Debt securities,

mortgages, loans & cash

91% of shareholder

investments

Equities

4% of shareholder

investments

Minimal impairments over many years

£1.3 billion provisions in place

Balance

sheet

Continuing low levels of losses

19

UK Corporate bonds

2009 2010

10bps< 5bps

2008

60bps

Aviva USA

Delta Lloyd mortgage portfolioUK mortgage portfolio

1bp 1bp 1bp 2bps

2007 2008 2009 2010

2009 2010

40bps

2008

116bps

2009 2010

Nil

36bps*

2008

38bps

* 36bps = £57 million loss

31bps

Balance

sheet

The mortgage portfolio

Dec

2010

Dec

2009

Dec

2008

Annual interest income £623m £641m £643m

Annual rental income £828m £842m £853m

Rental/interest cover 1.3x 1.3x 1.3x

Long term fixed interest mortgage

portfolio

• c. 50% of the book is backed by

investment grade tenants including the

UK Government

• First charge over properties with their

tenants

• £0.7 billion provision remains in place

20

Very low losses£34.7bn

Other loans

£4.6bn

Securitised

mortgages

£8.3bn

Other non-

securitised

mortgages

£1.9bn

DL residential

£6.9bn

UK

Commercial

Property

£10.2bn

FY10 Mortgages & loans

UK Healthcare & PFI

£2.8bn

038bps

036bps

1995 - 2007 2008 2009 2010

Balance

sheet

* 36bps = £57 million loss

£4.2bn

Small direct shareholder equity exposure

2010

£3.4bn sold

in 2007

when FTSE

was at 6400

Equity holding

£3.4bn

£1.1bn

Delta Lloyd

holding

Aviva holding

£m IGD impact (net of tax and MI)

Hedged

Unhedged

Significant hedging remains in place

21

Delta Lloyd outperformed

benchmark by 6% in HY10

-1,500

-1,000

-500

0.0

500

1,000

40% 30% 20% 10% 0% 10% 20%

Balance

sheet

0

0.5

1

1.5

2

2.5

Aviva’s pension schemes

22

Actions Result (£bn)

1.7

Zero

Pe

nsio

n s

ch

em

e a

ccou

ntin

g b

asis

deficit (

£bn

)

0.3 0.6

0.3

0.4

0.2

0.5

• Aviva and RAC schemes closed reducing

liabilities

• Aviva scheme

– Long-term funding agreement in place

– £378 million deficit funding payment

in 2010

• Updated mortality assumptions favourable

in the UK with offset in DL

• Ongoing further ALM improvements and

volatility mitigation strategies underway-

covering longevity, equity, interest rate,

inflation and credit exposure

Balance

sheet

A conservative and disciplined approach to ALM

Clear benefits of asset and liability duration matching at point of sale

A highly

predictable

earnings

stream

Active portfolio management

• Ongoing hedging programme

• Liquidity ratios and lapse rates monitored and durations adjusted as required

• Effective governance allowing quick and efficient response to changes in market conditions

23

Limited impact

on in-force

book from

interest rate

movements

Limited

re-investment

risk

Limited

liquidity issues

Limited

requirement to

“force sell”

assets

ALM

0

2

4

6

8

10

12

UK Annuities UK Protection US Life & Annuity Europe

Assets Liabilities

£21.0bn

Asset and liability durations across the Group are well matched

Durations of assets and liability by region

Duration in years (HY 2010)

24

• Assets and liabilities are duration

matched at point of sale

• Regional in-force portfolios are

reviewed regularly to ensure

continued matching over time

• Benchmarking metrics

aligned to ALM and not to pure

out-performance

• Diversity across products and

regions helps to manage the

overall ALM risk profile

Shareholder

funds

Portfolio

value£31bn £15.8bn£0.8bn

ALM

Limited guarantee risk

US Savings business European Savings business*

Insurance liabilities by guarantee (FY09, $bn) Insurance liabilities by guarantee (FY09, €bn)

25

• Average guarantee rate on US savings

business is 1.8%

• Average portfolio yield of 6.1%

• Actions have been taken to manage

guarantee risk in the current low interest

rate environment

• Average guarantee rate on European

savings business is 1.5%

• Investment income provides a 2.1% buffer

above guaranteed rates (net of fees)

• In addition we hold dedicated reserves

equivalent to 1.4% of liabilities that

provides a further buffer

0

5

10

15

20

25

30

0% (0-1%) (1-2%) (2-3%) (3-4%) (4-5%) (>5%)

0

2

4

6

8

10

12

14

0% (0-1%) (1-2%) (2-3%) (3-4%) (4-5%) (>5%)

* European savings business covers 92% of European business (exc. Delta Lloyd). It includes AIME but excludes AFER ALM

Limited interest rate sensitivity

26

30%

20%

10%

0%

-10%

-20%

-30%

-40%

Co. 1 Co. 2 Co. 3 Co. 4 Co. 5 Co. 6 Co. 7 Co. 8 Co. 9 Co. 10 Co. 11 Aviva Co. 12

MCEV sensitivity to 100bps change in reference rates

FY09

1% increase in reference rates

1% decrease in reference rates

ALM

£12.8bn

Aviva’s capital position

Aviva’s capital structure

Borrowing

IFRS equity

shareholders

funds

2010 £23.8bn

£4.6 billion tier 2 hybrid capital

Treated as equity for solvency and rating

purposes

£1 billion direct capital instrument

Transferable into Tier 1/2 or preference shares

£0.9 billion debenture loans

Senior debt

£0.6 billion commercial paper

Short term borrowing at low interest rates

£3.7bn

£6.1bn

£1.2bn

Capital

£17.7bn

Preference

shares & DCI

Minority

interests*

* includes £250m of general accident preference shares 27Capital

structure

Debt leverage in line with market median

External debt and preference shares / Tangible total capital

28

64%

39%

48%

37%35%

42%

37%35%

39% 39%

0%

10%

20%

30%

40%

50%

60%

70%

Europe 1 Europe 2 Europe 3 Europe 4 Europe 5 Aviva UK 1 UK 2 UK 3 UK 4

Median

39%

UK peer groupEuropean peer group

HY10

Capital

structure

Planning to renew 50% or less of the hybrid debt

that is called over the next 3 years, reducing

external debt by at least £700 million

1,400

1,800

2,200

2,600

3,000

FY09 Life GI Fund Mgt

Group & Other

FY10

Improved performance flowing through to profit

29

FY09 FY10

Life GI Life GI

UK 672 535 850 579

Aviva Europe 761 132 893 109

Delta Lloyd 277 143 330 146

North America 85 144 174 222

Asia Pacific 92 6 71 (6)

Total Life / GI 1,887 960 2,318 1,050

Fund Management 133 201

Other, non-insurance (214) (220)

Corporate costs (108) (143)

Group debt costs (562) (569)

Pension costs (74) (87)

Operating profit 2,022 2,550

IFRS operating profits

£m

2,550

+23% +9% +51%

2,022

431

9068 (61)

IFRS profit

drivers

Summary IFRS life profit drivers

New business income

813 1,021 26%

Underwriting margin

783 881 13%

Pre-tax operating profit

1,887 2,318 23%

Investment return

2,865 3,226 13%

Income

4,461 5,128 15%

Driver

FY09 FY10 Variance

Key:£m FY09 FY10

UK 672 850

Aviva Europe 761 893

Delta Lloyd 277 330

North America 85 174

Asia Pacific 92 71

Operating profit 1,887 2,318

DAC/AVIF amortisation and other

(221) (366) (66)%

Expenses and commissions

(2,353) (2,444) (4)%

Acquisition expenses and commissions

(945) (1,084) (15)%

Admin expenses and renewal commissions

(1,408) (1,360) 3%

30IFRS profit

drivers

Life new business income

UKNew business income

402 499 24%

APE 1,143 1,310 15%

Margin 35% 38% 3ppt

Aviva EuropeNew business income

310 382 23%

APE 1,554 1,544 (1)%

Margin 20% 25% 5ppt

ROW*New business income

101 140 39%

APE 1,049 1,089 4%

Margin 10% 13% 3ppt

TotalNew business income

813 1,021 26%

31

Key:

• Growth in annuities,

protection and group personal

pension sales

• Benefit of business mix

on margin

• Focus on profit over volume

reflected by increase in margin

• Asian growth offset by lower

sales in Delta Lloyd

• Margin reflects pricing action

in US and Asia

Driver

FY09 FY10 Variance

* 2009 excludes Australia which was sold in October 2009

IFRS profit

drivers

IFRS life underwriting margin

Expenses 356 438 23%

Mortality &

longevity377 353 (6)%

Persistency 50 90 80%

TotalUnderwriting margin

783 881 13%

32

Driver

FY09 FY10 Variance

Key:

Release of reattribution guarantees

and improved lapses in the rest of

the world

Higher expense margins in Delta Lloyd

and growth of the in-force book

Lower profits in Europe and the US

offset by higher profits in UK

IFRS profit

drivers

Total IFRS life investment return

Unit linked margin

938 999 7%

Participating business

660 682 3%

Spread margin

676 890 32%

Expected return on shareholder assets

591 655 11%

Investment return

2,865 3,226 13%

AMC

(bps)111 108 (3)

Average

reserves

(£bn)

84.5 92.7 10%

Bonus

(bps)59 60 1

Average

reserves

(£bn)

111.0 114.2 3%

Spread

(bps)94 114 20

Average

reserves

(£bn)

72.2 77.7 8%

Equity 7.3% 7.2%(0.1)

ppt

Property 5.8% 5.7%(0.1)

ppt

Bonds 4.9% 4.7%(0.2)

pptImproved market

conditions across all

businesses

Growth in French AFER

bonuses offset by lower

UK with profit bonuses

Pricing actions in the US

business

33

Driver

FY09 FY10 Variance

Key:

IFRS profit

drivers

Life expenses

Acquisition expenses and commissions

(945) (1,084) (15)%

Acquisition

expense

ratio

25% 27% (2)ppt

APE (£m) 3,746 3,943 5%

Admin expenses and renewal commissions

(1,408) (1,360) 3%

Existing expense

ratio (bps)53 48 5

Average reserves

(£bn)267.7 284.6 6%

Growth in sales and higher

initial commissions in Italy

Growing in-force book and cost

savings in UK and Delta Lloyd

34

Driver

FY09 FY10 Variance

Key:

IFRS profit

drivers

GI & Health profit drivers

GI Underwriting result

74 232 214%

Expected investment return

875 846 (3)%

Pre-tax operating profit

960 1,050 9%

Health underwriting result

30 31 3%

Average rate 4.6% 4.6% -

Average

assets £bn19.1 18.5 (3)%

Net written

premiums8,492 8,920 5%

Claims

ratio66.7% 64.5% 2.2ppt

Commission

ratio19.8% 19.9% (0.1)ppt

Expense ratio 12.6% 12.4% 0.2ppt

COR 99% 97% 2.3ppt

35

Driver

FY09 FY10 Variance

Key:

Note: Operating profit includes £(59)m resulting from unwind of discount and pension scheme finance costs (FY09: £(19)m) IFRS profit

drivers

General Insurance performance

36

Group COR

FY09 Underlying

current year

improvement

Prior year

reserves

FY10

99.1% (3.3)%

1.3% 96.8%

GI & Health NWP £m GI COR

FY09 FY10 FY09 FY10

UK 4.3 4.5 99% 96%

Aviva Europe 1.9 2.0 103% 103%

North America 1.8 2.0 100% 97%

Delta Lloyd & others 1.2 1.2 97% 95%

Total 9.2 9.7 99% 97%

Weather

(0.3)%

IFRS profit

drivers

Fund management

Pre-tax operating profit

133 201 51%

Total income

731 803 10%

Operating expenses

(598) (602) (1)%

£m FY09 FY10

Aviva Investors 115 97

Delta Lloyd 28 103

Other (10) 1

Fund Management 133 201

37

Driver

FY09 FY10 Variance

Key:

Average

fees

(bps)

17.4 18.6 1.4

Average

assets

£bn

289 315 9%

IFRS profit

drivers

Financial risk management at Aviva

Continual development and improvement of risk managementRisk

management

Efficient, underpinning returns to shareholdersBalance sheet

Measured risk with a track record of limited losses

Shareholder

assets &

liabilities

Low risk with limited interest rate and guarantee riskAsset/Liability

management

Calibrated to AA, benefiting from diversification

Economic

Capital

Management

38Economic

capital

Overview of economic capital (FY09)

£17.6bn

Available

Economic

Capital

Capital

Required*

Required

£12.8bn

Surplus

£4.8bn

Capital surplus within the range of a

AA calibrated risk appetite

Aviva’s risk profile

39

Other risks

Credit & Insurance related risks

Credit

25%

Interest

rate

10%

Life

15%

GI

18%

Equity

12%

Operational

12%

Other

market

8%

Aviva’s capital model

* Capital required is based on internal assessment and capital management policies. The term ‘required’ does not imply required by

regulators or other third parties

Economic

capital

Growth in sales and profits in UK – Life

L&P sales

£8.9bn

£10.3bn

£5.7bn

£4.6bn

£3.1bn

£5.8bn

Pensions,

bonds

Protection

& annuities

FY09 FY10

16%

40

45%

Payback

8 years

Improved

7 year

payback

14%

15%

New business IRR

FY09 FY10

IFRS operating profit

£672m

£850m

FY09 FY10

26%

Net operating

capital generated

£0.1bn

£0.4bn

FY09 FY10

Increased sales, returns

and profits

• Record and sustainable profits

of £850 million

• Substantive and permanent

operational change implemented

• Increased earnings from new

business and the in-force book

• Continued shift in mix towards

more profitable credit and

insurance related earnings

• New distribution agreements

with Santander and RBS

x4

Regional

results

FY09

Growth in sales and profits in UK – GI

Net written premiums

£4.5bn

FY10

£4.3bn

41

GI COR*

FY09 FY10

96%

99%

£535m

£579m

FY09 FY10

GI & health

operating profits

8%

6%

£0.6bn

£0.4bn

FY09 FY10

50%

Improved sales, COR and profits

Four consecutive quarters of GI

sales growth

• Strong retention levels

• Growth in Direct and the

RAC panel

Significant improvement in current

year COR due to:

• Strong underwriting

• Further cost savings

• Distribution management

Improvement in spite of £40 million

exceptional weather-related claims

* COR excludes Aviva Re and run-off business

Net operating

capital generated

Regional

results

Resilience and profit growth in Europe – Life

FY09 FY10

42

£761m

£893m

FY09 FY10

Payback

7 years

Payback

7 years

13% 13%

FY09 FY10

L&P sales

IFRS operating profits

New business IRR

£0.3bn £0.3bn

FY09 FY10

Net operating

capital generated*

Resilience and growth in profits

Resilient new business in a period

of continued economic volatility

Second half sales lower due to:

• Legislative changes and

economic pressures

• Actions taken to redesign

products and refocus sales

Resulting in improved second half

margin and increased capital

efficiency

Continued bancassurance

leadership

Higher returns from AUM growth in

France, Italy and Spain

Introduction of realistic term

assurance reserving in Ireland

Quantum Leap programme

continues to deliver

£3.5bn

£10.1bn£10.9bn

£2.6bnUnit linked,

Protection

Pensions,

WP savings

£13.5bn £13.5bn

17%

33%

* For both life and non-life business

Regional

results

FY09

Improved sales in Europe – GI

but COR remains high

£2.0bn

FY10

£1.9bn

43

FY09 FY10

103%103%

£132m

£109m

FY09 FY10

4%

GI & health

operating profits

-17%

Improved sales,

COR remains high

• GI sales growth across the

portfolio offset by a tougher

environment in Ireland

• Health franchise continues

to grow

• Profit reflects a fall in

investment returns

COR reflects:

• Second year of exceptional

weather related claims

• Lower reserve margin releases

• Offset by cost savings

Net written premiums GI COR

Regional

results

£85m

£174m

Significant profit improvement in North America

£4.5bn £4.7bn

£3.7bn

£1.0bn£0.9bn

£3.6bn

Annuity

Life

FY09 FY10

4%

44

£0.1bn

£0.3bn

FY09 FY10

15%

x3

Payback

14 years

Improved

4 year

payback

7%

14%

FY09 FY10

L&P sales

Net operating

capital generated

New business IRR

Significant increase in

Life profits

Profitable growth and capital

self-sufficiency

• Diversification of business mix

with a focus on life sales

• Strong improvement in IRR

reflects product, pricing &

capital actions

• Re-pricing of the in-force book

• Improved economic environment

Canadian COR of 97%

Record profits achieved in 2010

• Improved underwriting

• Pricing action across the book

• Favourable weather conditions

FY09 FY10

IFRS

operating profit

54%

£144m

£222m

Life

GI

x2

Regional

results

Value growth in Asia Pacific

£1.1bn

£1.6bn

FY09 FY10

48%

45

Payback

25 years

Improved

13 year

payback

6%

11%

FY09 FY10

Increased sales, returns

and profits

• Scale and mix drives a

500 bps IRR improvement

• Bancassurance contributes

51% of sales, a 76% increase

from 2009

• Resilient and growing in-force

book with a 66% increase in

IFRS in-force profits

Continuing progress

• Well positioned to benefit

from the region’s long-term

growth potential

• Pulling back from high capital

low return markets

• Sharpened focus on creating

franchise value through

organic growth

All FY09 figures exclude Australia, which was sold in 2009

* Underlying operating profit excludes Australia and Singapore reserve release in FY09; FY10 excludes China GAAP adjustment

£4m

£(31)m

FY09

FY10

Underlying total IFRS

operating profits*

48%

5%

ExpensesSales

Sales growth absorbs expenses

L&P sales New business IRR

Regional

results

Profit growth and further investment in

fund management

46

Operating profits

FY09 FY10

£201m

£133m

Aviva Investors

Delta Lloyd

Delta

Lloyd

Funds performing above

benchmark*Positive third party

net flows**

78%73%

FY09 FY10

£2.4bn

£(0.2)bn

FY09

FY10

51%

Aviva

Investors

Aviva

Investors

£(3)bn

FY08

* On an equally weighted 1 and 3 year basis where benchmarks exist ** excluding liquidity funds

Increase in profits

Growth in profits driven by Delta

Lloyd emerging markets profits

Continuing investment in

Aviva Investors

• Investment in capability and

infrastructure development

• Continuing high performance

against benchmarks

• Growing pipeline of

external mandates

• Increased focus on higher

margin assets

• Ongoing improvement in client

service standards

Regional

results

Delta Lloyd – strong profit growth

47

Total IFRS operating profit

Life PVNBP*

IRR

6%

IRR*

7%

£3.3bn£3.1bn

FY10FY09

FY10FY09

£536m

£399m

GI&H NWP

COR

97%

COR

95%

£1.2bn £1.2bn

FY10FY09

IFRS net assets**

IFRS

IFRS

£4.3bn

FY10FY09

£3.8bn

Continued structural

improvements

• German subsidiary closed to

new business

• Programme on track to deliver

cost savings by 2012

Strong operating performance

• Life new business IRR

improvement due to mix and

cost savings

• Three-fold asset management

profit growth to £103 million

• Continuing low investment

impairments

• Dividend increased to €1.0

(2009 €0.5) per share

Longevity reserving increase in line

with the Dutch Central Bureau of

Statistics findings

* Excluding German life operation, now closed to new business

** 100% of IFRS net assets

13%34%

-6%

Regional

results

Contacts

48

Aviva Investor Relationswww.aviva.com/investor-relations

Aviva Media Relationswww.aviva.com/media

Charles Barrows

Investor Relations DirectorCharles.barrows@aviva.com

Nigel Prideaux

Group Communications DirectorNigel.prideaux@aviva.com

Jonathan Price

Head of Investor RelationsJonathan.price@aviva.com

Sue Winston

Head of Media RelationsSue.winston@aviva.com

Jane Gillis

Head of Investor RelationsJane.gillis@aviva.com

Andrew Reid

Head of Media RelationsAndrew.reid@aviva.com