Summarised consolidated income statement - IFRS basis

We're well positioned to generate further growth

For the six months ended 30 June 2006

6 months 2006 €m		6 months 2006 £m	6 months 2005 £m	Full year 2005 £m
	Income
20,157	Premiums written net of reinsurance	13,707	12,672	24,982
19,831	Net premiums earned	13,485	12,357	24,859
1,331	Fee and commission income	905	849	1,851
4,197	Net investment income	2,854	10,097	23,722
328	Share of profit after tax of joint ventures and associates	223	16	340
216	Other income	147	145	153
25,903		17,614	23,464	50,925
	Expenses
(16,231)	Claims and benefits paid, net of recoveries from reinsurers	(11,037)	(9,360)	(19,706)
144	Change in insurance liabilities, net of reinsurance	98	(5,478)	(10,376)
(2,685)	Change in investment contract provisions	(1,826)	(3,002)	(7,814)
916	Change in unallocated divisible surplus	623	(355)	(1,474)
(3,218)	Fee and commission expense	(2,188)	(2,013)	(4,330)
(2,265)	Other expenses	(1,540)	(1,538)	(3,166)
(564)	Finance costs	(384)	(306)	(609)
2,000	Profit before tax	1,360	1,412	3,450
(165)	Tax attributable to policyholders’ returns	(112)	(288)	(922)
1,835	Profit before tax attributable to shareholders’ profits	1,248	1,124	2,528
	Tax expense
(396)	United Kingdom tax	(269)	(443)	(1,150)
(238)	Overseas tax	(162)	(152)	(402)
(634)		(431)	(595)	(1,552)
165	Less: tax attributable to policyholders’ returns	112	288	922
(469)	Tax attributable to shareholders’ profits	(319)	(307)	(630)
1,366	Profit for the period	929	817	1,898

	Attributable to:
1,259	Equity shareholders of Aviva plc	856	756	1,767
107	Minority interests	73	61	131
1,366		929	817	1,898

All profit is from continuing operations.

6 months 2006		6 months 2006	6 months 2005	Full year 2005
	Earnings per share – IFRS basis
51.9c	Basic (pence per share)	35.3p	32.5p	73.5p
51.5c	Diluted (pence per share)	35.0p	32.1p	72.9p

Subsequent to 30 June 2006, the directors proposed an interim dividend for 2006 of 10.82 pence (interim 2005: 9.83 pence) per ordinary share, amounting to £275 million (interim 2005: £233 million) in total. The dividend will be paid on 17 November 2006 and will be accounted for as an appropriation of retained earnings in the year ending 31 December 2006.

During the six months to 30 June 2006 the directors declared a final dividend for 2005 of 17.44 pence per ordinary share (final dividend for 2004: 16.00 pence) totalling £418 million (six months to 30 June 2005: £364 million).

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Aviva plc Interim report 2006