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This presentation may include oral and written “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. These forward-looking statements sometimes use words such as
‘anticipate’, ‘target’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’ or other words of similar
meaning. By their nature, all forward-looking statements involve risk and uncertainty because they
relate to future events and circumstances which may be beyond Aviva’s control, including, among
other things, UK domestic and global economic and business conditions, market-related risks such
as fluctuations in interest rates and exchange g rates,, the p policies and actions of regulatory
g y
authorities, the impact of competition, the possible effects of inflation or deflation, the timing impact
and other uncertainties relating to acquisitions by the Aviva Group and relating to other future
acquisitions or combinations within relevant industries, the impact of tax and other legislation and
regulations in the jurisdictions in which Aviva and its affiliates operate, as well as the other risks
and uncertainties set forth in our 2007 Annual Report to Shareholders. 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, and persons receiving this
presentation should not place undue reliance on forward-looking statements.
Aviva undertakes no obligation to update the forward-looking statements made in this presentation
or any other forward-looking statements we may make. Forward-looking statements made in this
presentation are current only as of the date on which such statements are made.
European Financials Conference:
Climbing a wall of uncertainty
An increasingly global company
34%
FY 2000 FY 2007
(1) 2007 total long-term savings new business sales and G.I. and health net written premiums
One Aviva, twice the value
Purpose
Prosperity &
peace of mind
Purpose
Vision
One Aviva,
twice the value
Vision
Strategic Targets
priorities
Aviva Investors
Asset Management • Increase third party business
• Globally integrated business • Transform the investment model
Our purpose
• The leading UK P&C insurer
Purpose
Vision
• Capital generator for the group
Strategic
Targets
Our priorities
O i iti
UK priorities
● Transform business
- Building core insurance capability
model
- Flattening the impact of claims
● Exploit UK synergies
inflation
● Generate capital
- Winning customers & brokers
3,000
brokers
#1 in the SME
market
Powerful brands … over 100 others
Insurer of the year
2003 to 2007
Insurer
Retailer
Insurance excellence
Sales
and
d O
Operations
ti
Marketing
Underwriting,
Pricing and
Product
Support Functions
Simplified structure
Insurance Excellence
Expense management - the promise of scale
1
UK best of breed expense ratio applied to NUI
channel / product mix
Inflation and
one-off
(38)
• Programme 1: Prioritisation and focus e.g.
Costs11
(125+)
Expense
• £52m less change activity
ratio
13.9%
• Total £200m savings already in train for 2008
Expense
• Expense ratio reduced from 13.9% to 12.4%
ratio
12.4%
3
Starting RAC 2 2006 C&E Prog. 1 2008
point integration savings
(1) e.g. Investment in brand and technology, VAT on offshoring and pre-contracted property and IT costs
(2) Over and above c£60m in 2006 (NB: £54m additional benefits outside overhead cost base)
(3) Additional benefits exist outside overhead cost base
(200)
• 114 less senior managers than last
year – simplifying our business
Expense
ratio
13.9% • IT project spend halved
3
Starting RAC 2 2006 C&E Prog. 1 2008
point integration savings
(1) e.g. Investment in brand and technology, VAT on offshoring and pre-contracted property and IT costs
(2) Over and above c£60m in 2006 (NB: £54m additional benefits outside overhead cost base)
(3) Additional benefits exist outside overhead cost base
Expense
ratio
12.4%
3
Starting RAC 2 2006 C&E Prog. 1 2008
point integration savings
(1) e.g. Investment in brand and technology, VAT on offshoring and pre-contracted property and IT costs
(2) Over and above c£60m in 2006 (NB: £54m additional benefits outside overhead cost base)
(3) Additional benefits exist outside overhead cost base
Personal
Personal
Mixed
Mixed
Commercial Commercial
Dundee Noida
Glasgow Perth Perth Noida
Bishopbriggs
Bishopbriggs
Leeds
Bradford
Belfast Sheffield Pune Pune
Liverpool Manchester
Manchester
Manchester
Cheadle Stretford Cheadle Stretford
Leicester Leicester
Norwich Norwich
Birmingham
Birmingham
Ipswich
Bristol Bangalore Chennai Southend Bangalore
Basildon
Basildon Southend
Southampton
Worthing
Exeter
1
UK best of breed expense ratio applied to NUI
channel / product mix
Aim to be UK
RAC Rescue
low cost
27.5% 27.5%
producer
NU
Commercial Lines
Motor 13.8% 8.2% Brit
Property 16.3% 15.2% Axa
Liability 11.6% 11.6% NU
0
• 2008 pplans in train to deliver £100m+
Personal Motor Household Commercial Motor Commercial Property Commercial Liability
%
Underlying Inflation Inflation after Benefits of sustainable benefits across:
Customers
Brokers
Sales
and Operations
Marketing
Retailer Underwriting,
Pricing and
Product
Insurer
Support Functions
6.0%
Personal
Primary Customer Access Channels (As Is / To
Mixed
Contact Channel Sales
Be) - Illustrative
Servicing Claims Reporting Claims Tracking
4.0%
Web Self service 50% / 60% 0% / 39% 0% / 5% 0% / 30%
Commercial Direc
t Telephony 50% / 40% 100% / 61% 100% / 95% 100%/ 70%
2.0%
SS EDI 80% / 85% 0% / 5% 0% / 30%
Perth Noida
Bishopbriggs Telephony 20% / 15% 100% / 95% 100% / 70% 0.0%
Brok
er SS eBroking 4% / 40% 0% / 5% 0% / 30%
Pune
CP
Telephony 95% / 76% 100% / 82% 100% / 95% 100% / 70%
-4.0%
Manchester
Manchester
Cheadle Stretford -6.0%
Leicester
Norwich
-8.0%
Southend Bangalore
Sales
and Operations
Marketing
Retailer Underwriting,
Pricing and
Product
Insurer
Support Functions
6.0%
Personal
Primary Customer Access Channels (As Is / To
Mixed
Contact Channel Sales
Be) - Illustrative
Servicing Claims Reporting Claims Tracking
4.0%
Web Self service 50% / 60% 0% / 39% 0% / 5% 0% / 30%
Commercial Direc
t Telephony 50% / 40% 100% / 61% 100% / 95% 100%/ 70%
2.0%
SS EDI 80% / 85% 0% / 5% 0% / 30%
Perth Noida
Bishopbriggs Telephony 20% / 15% 100% / 95% 100% / 70% 0.0%
Brok
er SS eBroking 4% / 40% 0% / 5% 0% / 30%
Pune
CP
Telephony 95% / 76% 100% / 82% 100% / 95% 100% / 70%
-4.0%
Manchester
Manchester
Cheadle Stretford -6.0%
Leicester
Norwich
-8.0%
Southend Bangalore
• Progress to date
• Rates
Motor / home = >inflation
Commercial = positive territory
Insurance Excellence
Insurance Excellence in UK P&C
Igal Mayer, Chief Executive, Norwich Union Insurance
Goldman Sachs Insurance Conference Berlin 2008