Group at a glance

What we do

Aviva is the world’s sixth-largest* insurance group and the largest insurance services provider in the UK.

We are one of the leading providers of life and pension products in Europe and are actively growing our long-term savings businesses in Asia Pacific and the USA.

Our main activities are long-term savings, fund management and general insurance⁴.

We have premium income and investment sales of £45.1 billion^≠ and £379 billion^≠ of funds under management. We have 46,000 employees serving over 53 million customers in 28 countries around the world.

Our purpose is to bring prosperity and peace of mind. We will do this by realising our vision: “One Aviva, twice the value”.

By working together across our businesses, we will optimise our performance in the global marketplace and maximise the value we can generate for all our stakeholders.

The “One Aviva” triangle has been developed to explain the purpose, vision, strategy and regional performance of the group in a single and straightforward way.

Main business operations

• UK (Life, General Insurance and Health)
• Europe
• Asia Pacific
• North America
• Aviva Investors

Achievements in 2009

Manage composite portfolio

We are fully committed to maintaining the composite nature of the group. We firmly believe in the benefits of life insurance, general insurance and asset management as complementary parts of an overall business model that balances cashflow, returns and long-term value creation, and delivers prosperity and peace of mind to customers.

Active management of our composite model provided us with strength in a challenging environment, specifically:

• Focused on profitability above sales volume by exercising price discipline and leadership in general insurance and by increasing margins and driving long-term value creation in life and pensions
• Robust performance in Europe benefiting from our strong bancassurance relationships despite the challenging environment with excellent sales performance in Italy (55%) and France (26%)
• Strengthened our position in Asia through strong growth in China (15%) and South Korea (93%). Withdrew capital intensive products in Hong Kong and Taiwan
• Brought UK life and general insurance businesses together under a single management team
• Grew Aviva Investors worldwide (see below)

Build global asset management

Launched in September 2008, Aviva Investors is a clear example of the "One Aviva, twice the value" strategy in action. Integrating our global asset management businesses under one umbrella, Aviva Investors is now a leading asset manager, with offices in 15 countries and £250 billion of funds under management. We plan to continue to grow Aviva Investors and significantly increase its contribution to group profits.

• Achieved robust investment performance across all key markets around the globe
• Experienced positive net flows of £2.4 billion from third party clients in difficult market conditions
• Enhanced our global distribution and manufacturing capability
• Made significant progress in building a truly global business development capability and achieved a strong sales pipeline across a range of asset classes and markets
• Achieved top quartile ranking in the most recent UK Greenwich Quality Index measuring client service and investment performance

Allocate capital rigorously

Capital management will continue to be a key focus. Capital is treated as a scarce resource, and is allocated to provide the highest sustainable returns for shareholders. We continuously seek improvements in capital structure and efficiency.

Strengthened our capital position through a combination of successful strategic initiatives and disciplined capital and balance sheet management including:

• Robust underlying earnings rebuilding our capital base
• IPO of Delta Lloyd in the Netherlands
• Sale of Australian business
• Reattribution of inherited estate in UK

Multi-channel customer reach

We sell our products in 28 countries in ways that our customers choose to buy them. We will get closer to our customers through better understanding of their needs and by providing products and services that customers want. We will continue looking for the right distribution in the right markets.

• Implemented initiatives to improve the customer experience and support the Aviva brand overall (such as introducing the Aviva Customer Cup to promote customer focused projects)
• Expanded our distribution reach through renewal of DBS bancassurance agreement which now extends to markets such as China and India
• Successfully carried out our major re-brand campaign in the UK creating a significant increase in spontaneous awareness among consumers
• Invested in our e-commerce capability in the UK with the launch of Aviva for Advisers website and made our online pension tracker proposition available to over 1 million customers
• Created further value from our leading and unique bancassurance franchise in Aviva Europe with sales growth of 14% in 2009
• 50% of all business units participating in our annual benchmarked relationship survey were ranked upper quartile by customers when compared to local market averages

Boost productivity

We constantly look for ways to boost our productivity, to support sustainable growth, increase our competitiveness, improve our services, and deliver higher value to our customers. Working together as "One Aviva", we deliver operational excellence through shared services, shared knowledge, rationalised systems and effective outsourcing.

• Achieved £510 million of cost savings against £500 million target including reducing total headcount from 54,000 in 2008 to 46,000 in 2009
• Developed a leaner 'One Aviva' operating model through:
  • Increased use of regional shared services in all regions
  • Implementation of centres of excellence in technology
  • Outsourced part of the UK Life book to Swiss Re, outsourced IT data centres in UK and Canada and transferred UK Life Lifetime and Collectives administration to Scottish Friendly and IFDS, respectively.

Contribution to group total sales

Sales

IFRS operating profit

Facts and figures

• Aviva is the world’s sixth-largest* insurance group.
• The largest insurance services provider in the UK.
• One of the leading providers of life and pensions products in Europe.
• £45.1 billion^≠ worldwide sales.
• £379 billion^≠ funds under management.
• 46,000 employees worldwide, including over 20,000 in the UK.
• Over 53 million customers worldwide.
• Aviva operates in 28 countries.
• Aviva’s business mix based on group total sales:
  • 32% UK
  • 48% Europe
  • 14% North America
  • 6% Asia Pacific
• Aviva has about 606,624 ordinary shareholders, of whom approximately:
  • 97.34% are individuals, holding 9.13% of shares
  • 2.05% are banks and nominee companies, holding 88.62% of shares
  • under 1% are pension fund managers, insurance companies and other corporate bodies, holding 2.25% of shares.
• The group has been known as Aviva since July 2002. It was created by the merger of CGU and Norwich Union in May 2000. CGU came from the merger of Commercial Union and General Accident in 1998. Through its founder companies, Aviva can trace its history back for more than 300 years.

Main listing

• London Stock Exchange Premium listing
• EPIC/Ordinary share symbol: AV
• New York Stock Exchange (Secondary listing)
• American Depositary Hare symbol: AV

All ISINs

• GB0002124963
• GB0002162385

Main indices

• FTSE 100
• FTSE Eurotop 300 Life Assurance.
• FTSE4GOOD Global 100
• MSCI Pan European

Number of ordinary shares

• 2,766,611,374 at 31 December 2009

Board of directors

Executive:

• Andrew Moss (chief executive)
• Patrick Regan (chief financial officer)
• Mark Hodges (chief executive, Aviva UK)
• Andrea Moneta (chief executive, Aviva Europe, Middle East and Africa)

Non-executive:

• Lord Sharman of Redlynch (chairman)
• Mary Francis
• Richard Karl Goeltz
• Euleen Goh
• Carole Piwnica
• Russell Walls
• Leslie Van de Walle
• Scott Wheway
• Michael Hawker

Senior management:

• John Ainley
• Alain Dromer
• Simon Machell
• Amanda Mackenzie
• Igal Mayer
• Robin Spencer

Aviva plc
Registered in England
Registered number: 2468686
Registered office: St Helens, 1 Undershaft, London EC3P 3DQ

Footnotes

* Based on gross worldwide premiums for the year ended 31 December 2009.
** From continuing operations including share of associates' premiums.
*** On a MCEV basis from 2007. Prior years presented on an EEV basis.
**** Before tax attributable to shareholders.
^≠ For the year ended 31 December 2009.
⁴ Typically includes motor, household, creditor, health, commercial motor, commercial property and commercial liability insurance.