Worldwide long-term savings new business – nine months to 30 September 2006

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Aviva International

Rest of the World - Australia

Total sales increased by 21% to £1,243 million (2005: £1,040 million), driven primarily by significantly higher investment sales through Navigator, the master trust fund administration business.

Life and pension sales were £213 million (2005: £253 million) with strong growth from protection products continuing following product enhancements. However, changes in legislation in July 2005¹ have resulted in a shift of corporate pension sales for Aviva towards Navigator retirement funds and this trend is expected to continue. Recently announced changes to pension laws and changes in tax legislation are expected to have a beneficial impact on the long-term savings industry.

Sales through Navigator increased by 43% to £860 million (2005: £611 million) as a result of ongoing improvements in product offerings, an increase in retirement fund business, sustained strong customer service levels and Aviva Australia’s strategic investments in key distributors. Recent budget changes and cuts in personal income tax should encourage consumer investment in retirement funds. Other investment sales were £170 million (2005: £176 million).

New business contribution from life and pension sales was £10 million (2005: £11 million). The new business margin increased to 4.7 % (2005: 4.3%), reflecting increased contribution from higher margin protection business.

1. From 1 July 2005, for the first time, individuals were entitled to choose where superannuation contributions made on their behalf by their employer were directed. Previously the employer would choose the plan.

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