Aviva sells Spanish general insurance business

Aviva plc (Aviva) announces the sale of 100% of the share capital of its Spanish general insurance business, Plus Ultra Compaρνa Anσnima de Seguros y Reaseguros (“Plus Ultra General”), to Groupama for €246 million in cash.

The net asset value of the business at 31 December 2001 was €86 million and gross written premiums in 2001 were €356 million.

The transaction is subject to regulatory approvals and is expected to complete in the third quarter of 2002.

In addition to its substantial bancassurance operations, Aviva will continue to build its Spanish life insurance business through Plus Ultra Vida, encompassing a strong direct life sales force, brokers, life agents, a pension unit and distribution agreements with affinity groups. As part of the sale, Plus Ultra Vida will cease to write new life business through Plus Ultra General’s tied agent network, which generated total new business sales of €14 million in 2001.

94% of Aviva’s total Spanish new business sales of €1.5 billion in 2001 was derived from its bancassurance partnerships. These are unaffected by the sale of Plus Ultra General.

Enquiries:

Analysts/Investors:
James Matthews, Head of Investor Relations
+44 (0)20 7662 2137

Media:
Ian Frater, Head of Group Media Relations
+44 (0)20 7662 8221
Alex Child-Villiers, Financial Dynamics
+44 (0)20 7269 7107

Notes to editors:

• On 1 July 2002, CGNU plc changed its name to Aviva plc.
• Aviva is the UK’s largest insurance group, one of the top- five life insurers in Europe and has substantial positions in other markets around the world. Aviva is the world’s seventh- largest insurer based on worldwide gross written premiums.
• Aviva’s principal business activities are long-term savings, fund management and general insurance, with worldwide premium income and retail investment sales from ongoing business of more than £28 billion, and over £200 billion of assets under management at 31 December 2001.