France: Half-year results at 30 June 2007 - Profitability increasing and position as a specialist in unit-linked products confirmed

Financial results

• Net turnover from reinsurance: €3.3 billion, a drop of 9% (2006: €3.6 billion).
• Operating profit based on the EEV/IFRS embedded value¹ up 15 %, to €380 million (2006: €329 million).
• Operating profit before tax based on the IFRS accounting standards up 15 %, to €262 million (2006: €227 million).

Life insurance

• New life, savings and pension business^2,3 is down 8% to €2.711 billion (2006: €2.961 billion).  This amount comprises AFER sales worth €1.303 billion (2006: €1.356 billion) and Antarius sales worth €617 million (2006: €735 million). After a start of year that was marked by an unfavourable context due to financial market volatility and uncertainties linked to the French elections, Aviva France's growth has picked up since the end of Q2.
• Sales of unit-linked products stand at €1.155 billion (2006: €1.386 billion). Aviva confirms its position as a specialist in unit-linked insurance, which now accounts for 44% of its savings and retirement sales.
• Aviva continues with the conversion of euro-denominated contracts into unit-linked contracts (Fourgous amendment), a process that was commenced in December 2005 within the framework of its "Good Advice" approach, which provides clients with tailored support. At the end of June 2007, cumulative conversions worth €6.9 billion had been carried out, with 30% being reinvested in unit-linked products.
• The gross margin on new business remains stable at 4.4% (2006: 4.3%).
• Turnover from life insurance, based on the EEV embedded value, has risen by 17% to €333 million (2006: €285 million).

Asset management

• Aviva Gestion d'Actifs has confirmed the consistency and quality of its management in the long term. The asset manager has been awarded 5 trophies by the French financial magazine Le Revenu, including the 2007 Grand Prix for sustainable performance.
• Aviva Gestion d'Actifs had assets under management worth €74.4 billion at 30 June 2007 (31 December 2006: €72.9 billion).

Non-life insurance

• Maintains the technical result, with a COR¹ of 98.2% (98.4% in first half of 2006). Excluding health, the COR stood at 97.4% (2006: 97.5%).
• Net turnover from reinsurance: €623 million (2006: €635 billion), down 2%.
• Successful launch in the first half year of the new multi-risk home insurance, Domifacil, which is being marketed through the agent network.

Outlook for 2007
Aviva will pursue its strategy of profitable growth by building on its solid foundations and the close relationships established with its partners. Moreover, in Q2 2007, the company launched a corporate communication campaign, designed to raise brand awareness and publicise its areas of expertise. This campaign, which has been well received so far, will continue over the coming months. Finally, Aviva will keep an eye out for opportunities that will allow it to speed up its growth, taking advantage of the effectiveness of its production platforms and its partnership management experience.

-ends-

¹ Unaudited life insurance figures, based on the EEV (European Embedded Value); other figures under IFRS standards.

² Based on the PVNBP (Present Value of New Business Premiums).

³ Production figures for Aviva France do not include Fourgous conversions.

Press contact:
Estelle Joubert 
Telephone: +33 (0)1 7662 5786 
E-mail: estelle_joubert@aviva.fr

Notes to editors:

About Aviva
Aviva is Europe's leading provider of life insurance and long-term savings products with strong positions in other markets around the world, particularly the US. Aviva operates in three main areas: life insurance and long-term savings, asset management and non-life insurance. At 31 December 2006, Aviva recorded turnover of €61.9 billion and had €543 billion of assets under management, making the company the world's fifth-largest insurance group in terms of gross premiums.

With more than 150 years' experience in France, Aviva is one of the top 10 players in the insurance market. Aviva France sets itself apart with a sound and profitable balanced multi-distribution model: 875 general agents, 1,800 branch staff, 400 life insurance advisers, 1,000+ brokers, as well as several partners (Union Financière de France and Médéric). Aviva France also has major partners such as AFER, the largest savings association in France, and the Crédit du Nord Group. Specialising in unit-linked products, Aviva is recognised for the excellent performance of its long-term funds and solid commitment to its customers through its Good Advice approach. Aviva employs more than 3,200 staff. At 31 December 2006, Aviva France recorded consolidated sales of €6.4 billion, a consolidated operating profit of €689 million (based on the embedded value - EEV/IFRS standards) and managed assets worth €72.9 billion.