Aviva plc

P li i
Preliminary Results
R lt 2010
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. y Accordingly,
g y there are or will be important
p factors that could cause actual results to differ materiallyy 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,
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,
Factors 5 “Operating
Operating and Financial Review and Prospects”
Prospects in Aviva’s
Aviva s Annual Report Form 20-F filed with the SEC on 30 March 2010 2010.
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
Agenda

1. Review of the business Andrew Moss

2 Financial results
2. res lts Patrick Regan

3. Looking ahead Andrew Moss

4. Q&A

3
 Significant growth in all key performance metrics
IFRS Net operating IFRS Return on Equity
operating profit capital generated
£1.7bn 14.8%
£2,550m
,
10.9%
26%
£2,022m 70%
£1.0bn

FY09 FY10 FY09 FY10 FY09 FY10

Funds under management Dividend NAV 621p

£402bn
454p
25.5p
£23bn
£379bn 80p
24p 6% 374p EEV

IFRS
IFRS

FY09 FY10 FY09 FY10 FY09 FY10 FY10

4
 Strong growth in Life & GI
Life operating profit Life sales (PVNBP) Life IRR

£2,318m £33.4bn 12.5%

2.5
4% 10.0% ppt
23% £32.0bn
£1,887m

FY09 FY10 FY09 FY10 FY09 FY10

GI & Health operating profit GI & Health sales (NWP) GI COR

£1,050m £9.7bn 99%

9% £9.2bn 6% 97%
£960m

FY09 FY10 FY09 FY10 FY09 FY10

5
Growing income whilst controlling expenses

£m

8,000 Income

7,000

6,000

5,000

Expenses

4,000
FY09 FY10

6
Growth in sales and profits in UK – Life
L&P sales New business IRR
£10.3bn 15% Increased sales, returns
£8.9bn 16% and profits
14%
Pensions, • Record and sustainable profits
£5.7bn
bonds of £850 million
£5.8bn Improved
7 year
Payback
P b k payback • S
Substantive
b t ti and d permanentt
45% 8 years
operational change implemented
£4.6bn
Protection
£3.1bn
& annuities • Increased earnings from new
FY09 FY10 FY09 FY10
b i
business and
d th
the iin-force
f book
b k

• Continued shift in mix towards

Net operating more profitable credit and
IFRS operating profit
capital generated insurance related earnings
£850m
£0.4bn • New distribution agreements
with Santander and RBS
26%
£672m
x4

£0.1bn

FY09 FY10 FY09 FY10 7

 Growth in sales and profits in UK – GI
GI & health NWP GI COR*
£4.5bn Improved sales, COR and profits
99%
£4 3bn
£4.3bn 6% Fourr consecutive
Fo consec ti e q
quarters
arters of GI
96% sales growth
• Strong retention levels
• Growth in Direct and the
RAC panel

Significant improvement in current

year COR due to:
FY09 FY10 FY09 FY10
• Strong underwriting

Net operating GI & health • Further cost savings

capital generated operating profits • Distribution management
£0.6bn £579m
Improvement in spite of £40 million
£535m 8%
50% exceptional weather-related claims
£0 4bn
£0.4bn

FY09 FY10 FY09 FY10

* COR excludes Aviva Re and run-off business
8
 Resilience and profit growth in Europe – Life
L&P sales New business IRR
£13.5bn £13.5bn Resilience and growth in profits

Pensions, 13% 13% Resilient

R ili t new b
business
i iin a period
i d
WP savings of continued economic volatility
£10.1bn
£10.9bn Second half sales lower due to:
Payback Payback • Legislative changes and
33% 7 years 7 years economic pressures
Unit linked, £3.5bn • Actions taken to redesign
£2.6bn
Protection products and refocus sales
FY09 FY10 FY09 FY10 Resulting in improved second half
margin and increased capital
Net operating efficiency
IFRS operating profits
capital generated
generated* Continued bancassurance
leadership
£893m
£0.3bn £0.3bn
Higher returns from AUM growth in
France, Italy and Spain
17%
£ 61
£761m
Introduction of realistic term
assurance reserving in Ireland
Quantum Leap programme
continues to deliver

FY09 FY10 FY09 FY10

* For both life and non-life business
9
Improved sales in Europe – GI
but COR remains high
GI & health NWP GI COR
Improved sales,
£2.0bn COR remains high
£1.9bn 103% 103%
4% • 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
FY09 FY10 FY09 FY10

COR reflects:
GI & health
• Second year of exceptional
operating profits
weather related claims
£132m • Lower reserve margin releases
-17% £109m • Offset by cost savings

FY09 FY10 10
Significant profit improvement in North America
L&P sales New business IRR
£4.7bn 14% Significant increase in
£4.5bn
4% Life profits
Profitable growth and capital
Annuity
£3.7bn self-sufficiency
£3.6bn 7% Improved
4 year • Diversification of business mix
payback with a focus
f on life
f sales
15% Payback
14 years • Strong improvement in IRR
Life £1.0bn reflects product, pricing &
£0.9bn
capital
p actions
FY09 FY10 FY09 FY10
• Re-pricing of the in-force book
• Improved economic environment
Net operating IFRS
capital generated operating profit
Canadian COR of 97%
£0.3bn
Record profits achieved in 2010
54% £222m
• Improved underwriting
x3 • Pricing action across the book
GI
£0.1bn • Favourable weather conditions
£144m x2
£174m
£85m Life

FY09 FY10 FY09 FY10

11
 Value growth in Asia Pacific
L&P sales New business IRR
Increased sales, returns
£1.6bn 11%
and profits

48%
• Scale and mix drives a
6% 500 bps IRR improvement
£1.1bn
Improved • Bancassurance contributes
13 year
payback
51% of sales
sales, a 76% increase
Payback
25 years from 2009
• Resilient and growing in-force
book with a 66% increase in
FY09 FY10 FY09 FY10 IFRS in-force profits

Sales growth absorbs expenses Underlying total IFRS

Continuing progress
operating profits*
profits
• Well positioned to benefit
from the region’s long-term
£4m
FY09 growth potential

FY10 • Pulling back from high capital

48%
low return markets
• Sharpened focus on creating
5% franchise value through
organic
i growth
th
£(31)m
Sales Expenses
All FY09 figures exclude Australia, which was sold in 2009 12
* Underlying operating profit excludes Australia and Singapore reserve release in FY09; FY10 excludes China GAAP adjustment
 Profit growth and further investment in
fund management
Operating profits
Increase in profits
£201m Growth in p
profits driven by
y Delta
Lloyd emerging markets profits
51% Delta
£133m
Lloyd Continuing investment in
Delta Lloyd
Aviva Investors
• Investment in capability and
Aviva Aviva infrastructure development
Investors Investors
• Continuing high performance
against
i tb benchmarks
h k
FY09 FY10
• Growing pipeline of
Aviva Investors external mandates
Funds performing above Positive third party
benchmark** • Increased focus on higher
net flows**
£2.4bn margin assets
78%
73% • Ongoing improvement in client
service standards
FY08 FY09
FY10
£(0.2)bn

FY09 FY10
£(3)bn
* On an equally weighted 1 and 3 year basis where benchmarks exist ** excluding liquidity funds
13
 Delta Lloyd – strong profit growth
Life PVNBP* GI&H NWP
Strong operating performance
£3.3bn
£3 1bn
£3.1bn £1 2bn
£1.2bn £1 2bn
£1.2bn • Life new business IRR
-6%
improvement due to mix and
cost savings
• Three-fold asset management
IRR IRR
IRR* COR COR profit growth to £103 million
6% 7% 97% 95%
• Continuing low investment
impairments
• Dividend increased to €1.0
FY09 FY10 FY09 FY10 (2009 €0.5) per share

Total IFRS operating profit IFRS net assets** Continued structural

improvements
p
£4 3bn
£4.3bn
£536m • German subsidiary closed to
£3.8bn 13% new business
£399m 34%
• Programme on track to deliver
cost savings by 2012
IFRS
IFRS
Longevity reserving increase in line
with the Dutch Central Bureau of
Statistics findings
FY09 FY10 FY09 FY10
* Excluding German life operation, now closed to new business 14
** 100% of IFRS net assets
Patrick Regan

Fi
Financial
i l results
lt

15
Key performance metrics

1. Capital generation and efficiency

2. IFRS operating profits

3 T
3. Total
t l profits
fit

4 The balance sheet

4.

5. Return on equity, NAV and IGD

16
Capital generation and efficiency

17
 70% increase in net capital generation provides
strong dividend cover

2010 vs 2009 Operating capital

2010
£bn Generated g
Usage Net
£bn
UK 0.9 0.1 1.0
FY10
£2.7bn Europe 0.8 (0.5) 0.3
FY10
£1.0bn North America 0.6 (0.3) 0.3
FY09
2.0 £2.5bn FY10 Asia Pacific - (0.1) (0.1)
£1 7bn*
£1.7bn

Delta Lloyd* 0.4 (0.2) 0.2

FY09
£1.5bn
Total 2.7 (1.0) 1.7
70%

1.0
£0.7 billion uplift from 2009 driven by:

FY09 • £0.2 billion higher

g g
gross capital
p g
generated
£1.0bn • £0.2 billion lower US new business strain
• £0.2 billion lower GI capital requirements

Operating New Underlying

• £0.1 billion benefit of UK inherited estate
capital generated business capital generated
investment
Capital Total Balance ROE &
IFRS 18
* Excluding Delta Lloyd longevity reserving of £0.2 billion post tax & MI efficiency profits sheet NAV
 Effective use of capital to grow shareholder value

Improved life capital efficiency* Payback

2010 Capital IRR period
4.8% £bn Sales usage % years

3.8% UK Life 10.3 (0.1) 15 7

Europe Life 13 5
13.5 (0 5)
(0.5) 13 7

North America
4.7 (0.4) 14 4
Life

Asia Pacific Life 1.6 (0.1) 11 13

FY09 FY10

Delta Lloyd Life 3.2 (0.1) 7* 16

Increased future cash flows

£36bn Non-life** 13.7 0.2 n/a n/a

£33bn
Total 47.1 (1.0) 12.5 8

*Delta Lloyd IRR excludes German operations closed to new business

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

FY09 FY10
* Life capital efficiency (life capital usage over life sales) Capital Total Balance ROE &
IFRS 19
excluding Delta Lloyd & Australia efficiency profits sheet NAV
IFRS operating profits

20
 Improved performance flowing through to profit

IFRS operating profits FY09 FY10

Life GI Life GI

£m UK 672 535 850 579

3,000 Aviva Europe 761 132 893 109

+23% +9% +51%
Delta Lloyd 277 143 330 146

68 (61) North America 85 144 174 222

2,600 90 2,550
431 Asia Pacific 92 6 71 (6)

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

2,200
Fund Management 133 201
2,022
Other, non-insurance (214) (220)

1,800 Corporate costs (108) (143)

Group
p debt costs ((562)) ((569))

1,400 Pension costs (74) (87)

FY09 Life GI Fund Group & FY10 Operating profit 2,022 2,550
Mgt Other

Capital Total Balance ROE &

IFRS 21
efficiency profits sheet NAV
 Summary IFRS life profit drivers

£m FY09 FY10
Key:
UK 672 850
Driver
A i E
Aviva Europe 761 893
FY09 FY10 Variance
Delta Lloyd 277 330
Pre-tax
North America 85 174 operating profit
Asia Pacific 92 71
Operating profit 1,887 2,318
1,887 2,318 23%

Income DAC/AVIF Expenses and

amortisation and other commissions
4,461 5,128 15% (221) (366) (66)% (2,353) (2,444) (4)%

Acquisition expenses Admin expenses and

New business income Investment return and commissions renewal commissions
813 1,021 26% 2,865 3,226 13% (945) (1,084) (15)% (1,408) (1,360) 3%

Underwriting margin

783 881 13%

Capital Total Balance ROE &
IFRS 22
efficiency profits sheet NAV
 Life new business income

Key:
Driver
Total
New business income
FY09 FY10 Variance
813 1,021 26%

• Growth in annuities
annuities,
UK protection and group personal
New business income APE 1,143 1,310 15%
pension sales
402 499 24% Margin 35% 38% 3ppt • Benefit of business mix
on margin

Aviva Europe APE 1,554 1,544 (1)%

New business income • Focus on profit over volume
reflected by increase in margin
310 382 23% Margin 20% 25% 5ppt

ROW* • A
Asian
i growthth offset
ff t by
b lower
l
New business income APE 1,049 1,089 4% sales in Delta Lloyd
• Margin reflects pricing action
101 140 39% Margin 10% 13% 3ppt
in US and Asia

Capital Total Balance ROE &

IFRS 23
* 2009 excludes Australia which was sold in October 2009 efficiency profits sheet NAV
IFRS life underwriting margin

Key:
Driver

Total FY09 FY10 Variance

Underwriting margin

783 881 13%

Higher expense margins in Delta Lloyd

and growth of the in-force book
Expenses 356 438 23%

Mortality & Lower profits in Europe and the US

377 353 (6)% offset by higher profits in UK
longevity

Persistency 50 90 80% Release of reattribution guarantees

and improved lapses in the rest of
the world

Capital Total Balance ROE &

IFRS 24
efficiency profits sheet NAV
 Total IFRS life investment return

Key:
Driver
Investment return
FY09 FY10 Variance
2,865 3,226 13%

Unit linked margin Participating business Spread margin Expected return on

shareholder assets
938 999 7% 660 682 3% 676 890 32% 591 655 11%

AMC Bonus Spread (0.1)

111 108 (3) 59 60 1 94 114 20 Equity 7.3% 7.2%
(bps) (bps) (bps) ppt
Average Average Average (0.1)
reserves 111.0 114.2 3% Property 5.8% 5.7%
reserves 84.5 92.7 10% reserves 72.2 77.7 8% ppt
(£bn) (£bn) (£bn)
(0.2)
Bonds 4 9% 4.7%
4.9% 4 7%
Improved market Growth in French AFER Pricing actions in the US ppt
conditions across all bonuses offset by lower business
businesses UK with profit bonuses

Capital Total Balance ROE &

IFRS 25
efficiency profits sheet NAV
Life expenses

Key:
Driver

FY09 FY10 Variance

Acquisition expenses Admin expenses and

and commissions renewal commissions

(945) (1,084) (15)% (1,408) (1,360) 3%

Acquisition Existing expense

expense 25% 27% (2)ppt 53 48 5
ratio (bps)
ratio
Average reserves
APE (£m) 3,746 3,943 5% 267.7 284.6 6%
(£bn)

Growth
G th in
i sales
l andd hi
higher
h Growing
G i iin-force
f book
b k andd costt
initial commissions in Italy savings in UK and Delta Lloyd

Capital Total Balance ROE &

IFRS 26
efficiency profits sheet NAV
 GI & Health profit drivers

Key:
Pre-tax operating profit Driver

960 1,050 9% FY09 FY10 Variance

GI Underwriting result Health underwriting Expected investment

result return
74 232 214% 30 31 3% 875 846 (3)%

Net written
8,492 8,920 5% Average
e age rate
ate 4.6%
6% 4.6%
6% -
premiums
Claims Average
66.7% 64.5% 2.2ppt 19.1 18.5 (3)%
ratio assets £bn
Commission
19.8% 19.9% (0.1)ppt
ratio
ti

Expense ratio 12.6% 12.4% 0.2ppt

COR 99% 97% 2.3ppt

Note: Operating profit includes £(59)m resulting from unwind of Capital Total Balance ROE &
IFRS 27
efficiency profits sheet NAV
discount and pension scheme finance costs (FY09: £(19)m)
General Insurance performance

Group COR
99.1% (3.3)%

1.3% 96.8%
(0.3)%

FY09 Underlying Weather Prior year FY10

current year reserves
improvement

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%

Capital Total Balance ROE &

IFRS 28
efficiency profits sheet NAV
Fund management

Key:
£m FY09 FY10 Driver
Aviva Investors 115 97
FY09 FY10 Variance
Delta Lloyd 28 103

Other (10) 1 Pre-tax operating profit

Fund Management 133 201 133 201 51%

Total income Operating expenses

731 803 10% (598) (602) (1)%

Average
fees 17.4 18.6 1.4
(bps)
Average
assets 289 315 9%
£bn

Capital Total Balance ROE &

IFRS 29
efficiency profits sheet NAV
MCEV performance
PVNBP New business margin
£33.4bn
£32.0bn
4%
2.4%
1.9%

FY09 FY10 FY09 FY10

Total MCEV MCEV NAV

operating profit
542p
£3 760
£3,760m
473p 69p

£3,592m 5%

FY09 FY10 FY09 FY10

Capital Total Balance ROE &
MCEV 30
efficiency profits sheet NAV
Total profits

31
 IFRS profit after tax

FY09 FY10 Integration and

£m £m restructuringg costs
Operating profit 2,022 2,550 • Regional restructuring and
Integration & restructuring costs (286) (243) Solvency II

Other exceptional
p items 45 ((273))
P fit on disposals
Profit di l
Investment variances & assumption changes 77 487 • RBS bancassurance joint venture
Profit on disposals 153 159 profit of £128 million
• Non
Non-core
core disposals in France
Goodwill and intangibles amortisation (206) (240)
and UK
Profit before tax 1,805 2,440
Tax (490) (548)
Minority interest & DCI (291) (488)
Total return 1,024 1,404
Earnings per share 37.8p 50.4p

Total dividend per share increase by 6% to 25.5p (2009: 24p)

* Earnings per share - stated after tax, minority interest, Capital Total Balance ROE &
IFRS 32
preference dividend and DCI efficiency profits sheet NAV
 IFRS profit after tax

FY09 FY10
£m £m
FY10 Aviva
Other exceptional items
Operating profit 2,022 2,550 £m share

Integration & restructuring costs (286) (243) Net gain on UK pension

286
schemes closure
Other exceptional
p items 45 ((273)) Delta Lloyd

Longevity reserve increase (483)

Investment variances & assumption changes 77 487
Reorganisation of Germany
Profit on disposals 153 159 (66)
and compensation payments

Goodwill and intangibles amortisation (206) (240)

(549) (318)
Profit before tax 1,805 2,440 Other (10)

Tax (490) (548) (273)

Minority interest & DCI (291) (488)

Total return 1,024 1,404
Earnings per share 37.8p 50.4p

Total dividend per share increase by 6% to 25.5p (2009: 24p)

* Earnings per share - stated after tax, minority interest, Capital Total Balance ROE &
IFRS 33
preference dividend and DCI efficiency profits sheet NAV
 IFRS profit after tax

FY09 FY10
£m £m
Investment variances and FY10 Aviva
Operating profit 2,022 2,550 assumption changes £m share

Integration & restructuring costs (286) (243) Asset and liability

800
curve movements
Other exceptional
p items 45 ((273))
Other investment variances 210
Investment variances & assumption changes 77 487
Delta Lloyd life investment
1,010 586
Profit on disposals 153 159 variances

Other life investment variances

Goodwill and intangibles amortisation (206) (240) (219)
and assumption changes

Profit before tax 1,805 2,440 GI short-term fluctuations and

(304)
economic variances
Tax (490) (548)
487
Minority interest & DCI (291) (488)
Total return 1,024 1,404
Earnings per share 37.8p 50.4p

Total dividend per share increase by 6% to 25.5p (2009: 24p)

* Earnings per share - stated after tax, minority interest, Capital Total Balance ROE &
IFRS 34
preference dividend and DCI efficiency profits sheet NAV
The balance sheet

35
Balance sheet assets remain high quality

FY09 FY10 Government Bonds

£bn £bn
• 96% investment grade
Government bonds 17.0 19.1 • Limited exposure to higher risk sovereigns
Corporate bonds 33.7 38.7 • Minimal losses

Asset backed securities 83

8.3 68
6.8 Corporate Bonds
Other 1.0 1.3 • 90% investment grade or NAIC rated
• Minimal losses
Debt securities 60.0 65.9
• Limited exposure to financial institutions in higher risk countries
Mortgages and loans 32.6 34.7

Cash 6.6 8.5 Mortgages and Loans – minimal losses

£13bn Healthcare and UK commercial property with
Equities 5.1 5.3 1 3x rental cover
1.3x
Properties 2.2 2.0 £7bn Dutch residential mortgages with minimal losses
£8bn Securitised mortgages with minimal residual risk
Other investments 2.8 3.3
£7bn Other loans with low LTVs and/or g
guarantees
Total investments 109.3 119.7

Other assets 28.7 28.2 Equities

• Significant hedging remains in place
Total shareholder
138.0 147.9
t
assets • £4.2bn
£4 2b held
h ld by
b Delta
D lt Lloyd
Ll d continues
ti tto outperform
t f

Capital Total Balance ROE &

IFRS 36
efficiency profits sheet NAV
Continuing low levels of losses

UK Corporate bonds Aviva USA

116bps

60bps 40bps 31bps

10bps
< 5bps

2008 2009 2010 2008 2009 2010

UK mortgage portfolio Delta Lloyd mortgage portfolio

38bps
p 36bps*
36bps

1bp 1bp 1bp 2bps

Nil
2008 2009 2010 2007 2008 2009 2010

* 36bps = £57 million loss Capital Total Balance ROE &

IFRS 37
efficiency profits sheet NAV
 Aviva’s pension schemes

Actions Result (£bn)

nting basis defiicit (£bn)

2.5
• Aviva and RAC schemes closed
reducing
g liabilities 03
0.3 06
0.6
• Aviva scheme: 2
1.7
– Long-term funding agreement in place
1.5 0.3
– £378 million deficit funding
gppayment
y

cheme accoun
in 2010 0.4

• Updated mortality assumptions favourable 1

in the UK with offset in DL 0.2
0.5
0 5

Pension sc
• O
Ongoingi ffurther
th ALM iimprovements t andd 0.5
volatility mitigation strategies underway-
covering longevity, equity, interest rate, Zero
0
inflation and credit exposure

Capital Total Balance ROE &

IFRS 38
efficiency profits sheet NAV
IGD, ROE & NAV

39
 Significant improvement in NAV
454p

80p
374p

Pence per share IFRS MCEV IFRS

NAV at year end 2009 374p 473p IFRS
P fit and
Profit d iinvestment
t t variances
i 68
68p 62
62p
Dividends (net of scrip) and new
(26)p (26)p FY09 FY10 621p
shares issued
Pension scheme revaluation 37p 37p
Foreign exchange and other 542p
1p (4)p
movements
NAV at year end 2010 454p 542p 473p 69p EEV

MCEV
IGD Solvency £3
£3.8bn
8bn (HY10: £3.8bn)
£3 8bn) MCEV

FY09 FY10 FY10

Capital Total Balance ROE &

IFRS 40
efficiency profits sheet NAV
 Growing return on equity

15.8%
16%
14.8%

12.0%
12%
10 9%
10.9%
10.2%

8.5%
8%

4%

0%
Life GI Group

FY09 FY10

Group IFRS return on equity stated after tax, minority interest, Capital Total Balance ROE &
IFRS 41
preference dividend and DCI over opening shareholders’ funds efficiency profits sheet NAV
Andrew Moss

L ki ahead
Looking h d

42
 Looking ahead: a clear direction

Strategic Increasing focus

portfolio
p and depth in 12 • Progress
g on portfolio changes
g in 2011
changes countries

• UK: Continued market leadership with profitable

Excelling in Life,
sales growth
General Insurance
& • Europe: Rigorous focus on delivery & execution
Operational Asset Management
excellence
ll • North
N th America:
A i Profit
P fit growth
th & capital
it l self
lf sufficiency
ffi i
Driving out
composite value • Asia Pacific: Strong value growth
from the business
• Aviva Investors: Increasing
g external AUM

• At least £1.5 billion operational capital generation in 2011

Demonstrating
Short term financial discipline • Life IRR of at least 12% with payback of 10 years or less
goals through a range of • 2011 general insurance COR to be 97% or better
short term targets
• £400 million cost savings & efficiency gains by end 2012

43
Strong results pave the way for further growth

Strong performance
• IFRS operating profit up 26% to £2,550 million
• Increased net operational capital generation by 70% to £1.7 billion
• IFRS NAV per share up by 21% to 454p

Profitable growth in both life and general insurance

• 23% increase in life operating profit to £2,318 million with new business IRR of 12.5%
• 9% increase in GI operating profit to £1,050 million with a COR of 96.8%

P iti outlook,
Positive tl k an excellent
ll t platform
l tf for
f continued
ti d growth
th
• Focussed on markets where we have strength and scale
• A stronger and larger balance sheet
• £23 billion increase in funds under management to £402 billion
• Pension deficit reduced to zero
• Sh h ld equity
Shareholder it exceeding
di pre crisis
i i llevell

44
Q&A

45