Aviva plc: Worldwide long-term savings new business – 12 months to 31 December 2006

index | previous | next

Notes to Editors

1. Aviva is one of the leading providers of life and pensions to Europe with substantial positions in other markets around the world, making it the world’s fifth-largest insurance group based on gross worldwide premiums at 31 December 2005.

   Aviva’s principal business activities are long-term savings, fund management and general insurance, with worldwide total sales* of £36 billion and assets under management of £322 billion at 31 December 2005.
   * Based on life and pensions PVNBP, total investment sales and general insurance and health net written premiums including share of associates’ premiums.

   The Aviva media centre at www.aviva.com/media includes images, company and product information and a news release archive.

2. All figures have been translated at average exchange rates applying for the period. The average rates employed in this announcement are €1 = £0.68 (12 months to 31 December 2005: €1 = £0.68) and $1 = £0.54 (12 months to 31 December 2005: $1 = £0.55)

3. All growth rates are quoted in local currency.

4. Definition: Present value of new business premiums (PVNBP) is the present value of new regular premiums plus 100% of single premiums, calculated using assumptions consistent with those used to determine new business contribution.

5. Cautionary statements:

   This preliminary announcement may contain “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. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond Aviva’s control, including amongst other things, UK domestic and global economic business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing impact and other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation and other regulations in the jurisdictions in which Aviva and its affiliates operate. 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.

   Aviva undertakes no obligation to update the forward-looking statements contained in this presentation or any other forward-looking statements we may make.

6. Additional notes on AmerUs sales
   Aviva acquired AmerUs on 15 November 2006, and six weeks’ sales are included in this announcement. For additional information, the full year AmerUs sales by quarter on a PVNBP basis for 2006 and comparable 2005 numbers are shown below.

Funding agreements are large single premium insurance contracts with an obligation to repay the deposit plus a contractual return for the duration of the contract. Sales of funding agreements are opportunistic by nature and can vary significantly quarter on quarter.

• 7. Additional notes on the effect of lapse assumption changes in the UK
  UK life sales figures are stated before the effect of changing from opening to closing operating assumptions. (i.e. using assumptions consistent with those used in reporting 2006 new business sales in the year to date). After including the effect of changes to lapse assumptions, to be consistent with the assumptions used in calculating closing embedded value, Aviva UK’s PVNBP, and consequently that of the group, is reduced by £361 million. The table below sets out the impact on total long-term sales by discrete quarter.

Aviva plc is a company registered in England No. 2468686.
Registered office St Helen's 1 Undershaft London EC3P 3DQ

index | previous | next