Regional overviews: North America

Our strategic priorities are:

Double scale

• Grow in new and existing markets and geographies
• Optimise our new regional business model
• Engage our people and customers

How will we achieve this?

• Meet the retirement needs of the “baby boomer” generation
• Deliver competitive advantage through product innovation
• Build upon the recent re-rating of our US life business to widen distribution
• Leverage group expertise to expand asset management capabilities in the region
• Streamline back-office processes, enhance risk selection and pricing sophistication
• Build brand awareness across the region, including employee brand
• Instill customer centricity

Progress in 2007:

Delivered on target integration benefits

• Our life operations located in Boston were successfully combined with those of the former AmerUs companies
• Exceeded our target of £23 million in cost savings within our cost target of £25 million

Implementing specific local initiatives to improve service to attract and retain customers

• Our Canadian business is the only insurer in the world to have achieved accreditation by the Commission on Accreditation of Rehabilitation Facilities, an independent, non-profit accreditor of service providers in many areas of healthcare, community programme and medical rehabilitation

Capture opportunities presented by retirement of the “baby boomer” generation

• Launched innovative market-leading products such as Wellness for Life
• Achieved ratings upgrade from AM Best which will help us be more competitive

Continuing to strengthen our relationship with key brokers and other partners

• Achieved exceptional satisfaction scores from our brokers in Canada, with 88% responding that they would recommend Aviva to their customers

Exploiting and sharing our knowledge and skills in multi-channel distribution, product development and service delivery

• Joined forces with colleagues in Asia Pacific on product design and industry trends
• Led discussions on the potential for equity indexed annuity products in other Aviva businesses

Looking forward:

Our medium-term targets are to:

• Double the volume of US life new business sales within three years of the acquisition of AmerUs, while maintaining margins
• Realise the benefits of our strategic investments in our general insurance business to accelerate growth and improve profitability
• Further expand distribution and continue to deliver innovative products
• Continue to meet or beat a 98% combined operating ratio