Delivering value in the new

business environment

2 November 2010

1
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 30 March 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

9.30 Q3 & Strategic update Andrew Moss

Q&A

10.45 Coffee

11.15 Winning in the UK Mark Hodges

Q&A

12.30 Lunch

3
Q3 update

4
 Continuing strong results in Q3 2010

Long term savings sales New business IRR Capital generation on target
£28.6bn £1.5bn
12%
£27.1bn 6% 50%
2% £1.0bn
10% points

3Q09 3Q10 FY09 3Q10 FY09 Expected FY10

HY IFRS
GI & Health NWP GI COR
operating profit*
98%
£7.3bn £1,270m

4% 97%
£7.1bn 21%
£1,049m

3Q09 3Q10 3Q09 3Q10 HY09 HY10

* Includes £80m UK special distribution receivable in 1H only
5
 Growing Life sales and profitability

Life sales YTD IRR YTD Long Term Savings

• Continued focus on profitable new business
3Q09 3Q10 Growth FY09 3Q10
£m £m % % % • UK sales up 15% at strong IRR of 15%,
• sales growth across the product range
UK 6,664 7,631 15 14 15
• continued move in mix away from
bonds
Europe 9,770 10,640 9 13 12
• Europe sales up 9%
North America 3,742 3,668 (2) 7 14
• rebalanced sales mix
Asia Pacific 788 1,153 46 6 10 • focus on capital efficient products
• North America sales on track, IRR
Delta Lloyd 2,835 2,462 (13) 6 6 improved to 14%
Australia 261 - n/a 11 -
• change in mix of sales towards more
capital efficient life products
Life & pensions 24,060 25,554 6 10 12 • significant improvement in IRR
• Asia Pacific sales up 46% with improving
Investment sales 3,042 3,039 -
IRR
Long term
business sales
27,102 28,593 6 • Delta Lloyd sales down 13%, largely due to
closure of loss-making German operation to
new business

6
 GI returning to growth: 97% COR (96% in the UK)

General Insurance net written General insurance

premiums YTD
• GI businesses returning to growth and COR
3Q09 3Q10 Growth COR improved to 97% (3Q09: 98%)
£m £m % %
• 4% underlying current year COR
UK 3,319 3,412 3 96 improvement

Europe 1,435 1,468 2 103 • UK sales up 3%

• third consecutive quarter of growth
North America 1,351 1,480 10 98 • building momentum following exit from
unprofitable business in 2008/9
Delta Lloyd & Other 962 976 1 97
• marketing campaigns proving effective
Total 7,067 7,336 4 97 • RAC panel showing strong growth
• Europe sales up 2%
9,600 Rolling 12 month net written premiums
• growth in Italy, Poland and Turkey
9,500 offset by France and Ireland
• COR reflects adverse weather in
9,400 1H10

9,300 • North America sales up 10%

£m

• reflects action taken in 2009 to exit

9,200 poorly performing business
• Benefitting from higher average
9,100
premiums
9,000 • Delta Lloyd sales steady with COR of 97%
8,900
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
7
Q3 2010: improving NAV

IFRS NAV
424p

394p

NAV
• Increase principally due to earnings
HY10 Proforma in Q3
3Q10
• Proforma Q3 includes 10p additional
MCEV NAV benefit from agreed closure of pension
497p scheme
461p

HY10 Proforma
3Q10 8
Aviva today

9
Significant transformation under One Aviva
twice the value

Uniting the Group under one brand

Structural & portfolio changes Operational transformation

• Reallocation of capital • UK Life transformation
• £450 million raised from sale of
Australia, with annual profits of
• UK GI book cleansed
c. £40 million
• £470 million allocated to the
reattribution with annual profits • Europe Quantum Leap well
of £120 million under way

• £1 billion raised from Delta Lloyd IPO

• £500 million cost saves target achieved a
year early
• c. £275 million to NAV and at least
£50 million cost savings pa from the
closure of the UK final salary pension
schemes
• Proactive management of the balance
sheet through the financial crisis
• North America profitability
turnaround
• Asia Pacific value accelerating
• Global integration and growth
of Aviva Investors
10
 Significant ongoing cost savings…

£m
6,000 13% reduction in costs in 2009
5,750 267
121 387
5,500
133 388 5,144
209
5,000 119

4,500

4,000
UK
Inflation

Other (inc. Group)

FY08

FY09
Europe ex DL
Exceptionals FY08

Exceptionals FY09
Delta Lloyd
FX, M&A +

£500 million cost savings achieved and more to come

11
 …flowing through to results in 2010

£m Life General Insurance

NWP Expenses
3,000 £m £m
5,500 900
2,500

2,000
5,000
1,500
850

1,000 4,500

500

0 4,000 800
HY09 HY10 HY09 HY10

INCOME EXPENSES NWP EXPENSES

Notes:
• Life income includes underwriting margins, investment return and new business margin
• GI net written premiums includes both GI and health
• Expenses: Life expenses include acquisition and administration expenses. GI expenses include commission and
other operating expenses 12
Strategy in a changing world

13
 Strategy in a changing world

Pre crisis Looking forward

A more fragmented world with

Decade of strong growth divergent economies, low interest rates for longer

Uncertainty and lower disposable income drives

Higher customer risk appetite
increasing preference for security

Capital more scarce leading to more local,

Capital rich companies with global ambitions
focused ambitions

Solvency I and „light touch‟ regulation Solvency II and greater regulatory scrutiny

GI cycle peaked GI past low point and into slow upturn

14
Strategy in a changing world

Objective: driving profits and dividend growth

Where should we operate?

Should we be a composite?

What do we need to be better at?

15
Where should we operate?

Countries must provide either:

• $100 million contribution to IFRS profits
Geographic and 12% ROCE
focus
or
• $1 billion of franchise value

16
 Aviva is currently in 30 countries

North America Asia Pacific

Canada China
USA Hong Kong
India
Indonesia
Malaysia
Singapore
South Korea
Sri Lanka
Europe and Middle East Taiwan
Australia*
Belgium Poland
Czech Republic Romania
France Russia
Germany Slovakia
Hungary Spain
Countries in which Aviva operates Ireland Turkey
* Aviva Investors only
Italy UAE
Lithuania UK
Netherlands Luxembourg*

17
 Geographic focus in UK & Europe

Conditions met

Mkt share Population Today Future

UK No 1 61m  
Countries must provide France Top 10 Life 62m  
either:
• $100 million Ireland Top 3 4m  
contribution to IFRS
profits and 12% Italy Top 10 Life 59m  
ROCE No 1 Pension
Poland No 2 Life
38m  
or
• $1 billion of franchise Spain Top 5 Life 45m  
value
Russia Top 5 Life 139m  
No 1 Pension
Turkey
No 4 Life
77m  

Invest and deepen our presence in these chosen markets

18
Europe has highest potential growth in L&P assets in
the near term...

European L&P assets expected to grow by

1.7
$1.7 trillion between 2009-2014

2009–14 Expected Increase in Assets

2009 Assets
1.3
8.1

1.5
3.9

1.6

Europe North Asia

(inc UK) America (ex Japan)

($ trillion)

Source: Oliver Wyman 19

 ...and there is a large additional savings need

€bn In Europe, people retiring in the next 40 years need to save an

3,000 additional €2.4 trillion each year to fill the pensions gap

930 2,400

2,000

400

380
1,000
240

170
100
90
70
20
0
Ireland Poland Turkey Italy Spain France UK Russia Other EU Total
countries

Source: “Mind the gap – quantifying Europe’s pensions gap,” Aviva & Deloitte, September 2010 20
 We have significant competitive strengths in the UK
and Europe

Sales

Competitive scale advantage

• Benefits of scale
Savings Risk/GI • Broad product range UK
48% 52%
UK • Wide customer base update
today
• Multi-channel delivery
• Diversity of risk and earnings
• Single brand

Competitive distribution advantage

Risk/GI • Market leading bancassurance franchise
Europe 29% Update
planned
(inc DL) Savings • Well established positions in chosen markets
71% for 2011

• Pan-European approach under Quantum leap

Aviva has 5.5% of Life and 2.5% of GI market share in our European markets
21
 We have significant competitive strengths in the UK
and Europe

Profit

Competitive scale advantage

Savings • Benefits of scale
23% • Broad product range UK
UK • Wide customer base update
Risk/GI today
• Multi-channel delivery
77%
• Diversity of risk and earnings
• Single brand

Competitive distribution advantage

Savings • Market leading bancassurance franchise
Europe 28% Update
planned
(inc DL) • Well established positions in chosen markets
Risk/GI for 2011
72%
• Pan-European approach under Quantum leap

Aviva has 5.5% of Life and 2.5% of GI market share in our European markets
22
 Maximising the value of Delta Lloyd

Partial IPO raised

£1 billion and reduced Aviva‟s
Delta Lloyd must provide either: Delta Lloyd shareholding to 58%
• $100 million contribution to IFRS Today Future
profits and 12% ROCE Profit  
or ROCE   • Profit growth
• $1 billion of franchise value Franchise n/a n/a • Net capital contributor
• Hold for value

23
 Managing for profit in North America

Canada • No 2 in the General

Today Future Insurance market
Profit   • Profit growth by capitalising
Countries must provide either:
on scale
• $100 million contribution to IFRS
ROCE  
• Consistent capital contributor
profits and 12% ROCE Franchise n/a n/a

or
• $1 billion of franchise value USA • No 2 in the EIA market
Today Future • Net capital contributor
Profit   • Organic growth with
emphasis on life
ROCE  
• No acquisitions, no plans to
Franchise n/a n/a enter variable annuity market

24
 Growing value in Asia Pacific

China
Today Future
Profit  ?
ROCE  ?
Franchise  
Countries must provide either:
India
• $100 million contribution to IFRS Today Future • Continued franchise growth
profits and 12% ROCE • Long term increased focus
Profit  ?
or on key markets
ROCE  ? • Exit Taiwan
• $1 billion of franchise value Franchise  

Asian countries

• Franchise value
maximised through a
pan-Asian business

Value estimate of 3 x the £700 million invested to date?

25
 Growing the franchise of Aviva Investors

Aviva Investors must provide Aviva Investors

either:
Today Future
• Continued growth in third
• $100 million contribution to IFRS Profit   party assets to drive
profits and 12% ROCE franchise value
ROCE  
or
Franchise  
• $1 billion of franchise value

26
Increasing focus and depth

Europe North America / Asia

UK Canada

France US

Ireland China

Italy India

Poland

Spain

Russia

Turkey

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

27
Should we be a composite?

Excel in Life

Excel in GI
Composite
Insurer
insurer

Drive out
additional
composite
value

28
 Resilient and balanced earnings

HY £m
600 Savings
Risk

500
• Asset & liability
duration matching
400 provides a predictable
net income stream

300 • Investment yields

above guarantee
levels with hedges in
200
place where required

100 • Strong cost control to

maintain profits in low
interest environment
0
General New Underwriting Unit Participating Spread Expected
insurance business margin linked business margin return
income margin

Over 75% of income derived from risk earnings

29
 Diversification brings wide-ranging benefits

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

Structural business
Capital
advantage
• Solvency II will bring more clarity to this benefit

Cost & • Cost & operational efficiencies

efficiency • Sharing of key skills and capabilities
Scale &
efficiency
• Complementary cash flow characteristics
Cash
• Half of cash flow generated from GI businesses

• 53 million customers and growing

Customer, brand
Differentiation • Integrated brand advantages
& distribution
• Global leadership in bancassurance

30
 What do we need to be better at?

Marketing and • Multi channel access to customers

distribution • Bancassurance leadership
expertise • Brand strength

• Pricing and product development

Technical
• Underwriting
excellence
• Claims management

• Customer value management :

Operational retention, cross selling
effectiveness • Straight through processing to drive
quality and efficiency

• Clear framework for capital

Financial allocation
discipline • Managing investment risk & gearing
• Selective portfolio changes / M&A

31
 What do we need to be better at?

Marketing and • Multi channel access to customers • Pan European distribution model
distribution • Bancassurance leadership • UK Bancassurance gains
expertise • Brand strength • Material increase in brand awareness

• Pricing sophistication – e.g. daily pricing

• Pricing and product development
Technical of UK annuities
• Underwriting
excellence • Bancassurance pricing action in Italy
• Claims management
• Early identification & action on BI claims

• Customer value management : • Company of the year & improving

Operational retention, cross selling customer net promoter scores
effectiveness • Straight through processing to drive • Improving retention levels
quality and efficiency • Track record of significant cost savings

• Clear framework for capital • 20 January analyst event to focus on

Financial allocation the balance sheet
discipline • Managing investment risk & gearing • Clear capital allocation framework
• Selective portfolio changes / M&A • Short term financial deliverables

32
Short term financial deliverables

Deliver at least £1.5 billion operational capital in 2011

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

2011 general insurance COR to be 97% or better

Additional cost savings of £200 million and a further

£200 million efficiency gains by end 2012

33
Summary

34
Driving profit and dividend growth

Increasing focus and depth in 12 countries

Excelling in both Driving out composite value from the

Life & General Insurance businesses

Building on our core capabilities

Demonstrating financial discipline through a range of short term targets

35
Delivering value in the new
business environment

Q&A

36