CU Poland group financial results in 2005

• Assets managed by the CU group rose by 28%, to over 35 billion Polish zloty (£6.2 billion).
• CU Life increased gross premiums by 7.9% and assets by 16%. Since it began operating, the company has made over 100,000 claim payouts.
• Greater involvement by CU group in bancassurance – cooperation with BZ WBK, Polish subsidiary of Allied Irish Bank.
• CU Pension: introduction of corporate governance standards in investment activities; good investment results from CU Pension Fund and financial results from CU Pension Fund management company.
• Awards for three-year results from unit trusts (mutual funds); CU Unit Trusts among the most efficiently operating companies in industry.
• Steep improvement in technical result for CU General Insurance.

Commercial Union Poland Life Insurance Company "

Item	2005 [million Polish zloty]	2004* [million Polish zloty]	Change [%]
Gross premium written	1 897.0	1 758.7	7.86
Claims and surrenders	850.3	788.5	7.84
Acquisition costs	174.1	167.3	4.06
Administration costs	123.7	127.4	-2.9
Technical result	347.6	318.4	9.17
Gross financial result	430.6	442.7	-2.73
Net financial result	366.9	377.5	-2.81
Equity capital	1 060.8	991.5	6.99
Technical insurance reserves, gross	9 093.7	7 718.7	17.81
Investments	10 227.5	8 788.1	16.38

* Financial data for 2004 were converted in line with the accountancy principles that were in force in 2005.

Commercial Union Lithuania Life Insurance Company

Item	2005 [million Lithuanian litas*]	2004 [million Lithuanian litas]	Change [%]
Gross premium written	32.7	22.2	47
Claims and surrenders	2.1	0.7	200
Acquisition costs	7.2	6.7	7
Operating costs	10.8	10.2	6
Net financial result	-1.9	-2.9	34

* 1 Lithuanian lita = £0.2

Commercial Union Pension Fund Company

Item	2005 [million Polish zloty]	2004 [million Polish zloty]	Change [%]
Sales revenues (a+b+c), inc. from:	272.8	246.6	11
a) fees on premiums paid in	154.1	141.3	9
b) fund management fee	106.5	78.6	35
c) reserve account settlements	-	17.9	-
Costs linked to fund management (a+b+c), inc.:	128.9	115.7	11
a) compulsory charges *	665	540	23
including reserve account related costs / addit. Guarantee Fund	17.0	14.1	-
b) transfer agent costs	23.7	23.7	0
c) other costs	38.7	38.0	2
Result from operating activities	139.5	1310	6
Result from investments	22.7	17.0	34
Net result	131.3	120.3	9

Commercial Union Poland Unit Trusts Company
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Item	2005 [million of Polish zloty]	2004 [million of Polish zloty]	Change [%]
Sales revenues	32.0	32.8	-2
Operating costs	23.6	25.9	-9
Gross financial result	9.9	7.9	25
Net financial result	8.0	6.4	25

Commercial Union Poland General Insurance Company
In 2005 the company introduced three improved types of home insurance of the Locum series. "In the light of both the broad extent of the cover and the efficient liquidation of claims, I can say that we are right at the top of the market as regards the quality of the home insurance we offer," stresses Anna Katarzyna Wojciechowska, general manager of CU GI.

The company is reaching out to individual clients, while also developing, in conjunction with CU Life, cooperation with its minority shareholder, Bank Zachodni WBK. CU GI insures two out of four risks in a package for cash credit, and offers Locum BZ WBK home insurance, and insurance for BZ WBK credit card holders (under the Your security trading name).

In the commercial lines business CU GI has achieved favourable results thanks to good risk selection and the high quality of the claims liquidation process. Liquidation of the two largest claims in CU GI history was successfully carried out, in which the claims amounted to 13.9 and 36.9 million Polish zloty (£2.5 million and £6.5 million, respectively). "I am particularly pleased with the steep improvement in the technical result, as that proves that even under severe competitive pressure it is possible to make money through solid performance of the profession of insurance, that is the selection and underwriting of risks and the liquidation of claims. Our combined operating ratio, which shows what percentage of the premium are paid in claims and operating costs, might be the envy of many well-known insurers in most developed countries," adds Anna Katarzyna Wojciechowska.

"Looking into the future, and particularly the near future, we are concerned about the erosion of rates in commercial lines business, in particular for big corporate risks. Last year we stood up to this challenge without harm to profit levels, but with a loss of part of premium. Some insurers, going with the trend, have already felt this fall in last year’s results. It will certainly make life difficult for the rest this year and next. There must be a limit somewhere to the fall in rates, because the whole commercial lines business is ceasing to become viable for all insurance companies," adds Anna Katarzyna Wojciechowska.

Item	2005 [million Polish zloty]	2004 [million Polish zloty]	Change [%]
Gross premium written	78.4	80.8	-3
Net premium written	51.4	51.7	-0.6
Claims	15.0	24.4	-38.5
Acquisition costs	19.3	18.3	5.5
Administration costs	15.7	15.5	1.3
Technical result	10.4	1.4	642.9
Net income from investments	6.5	5.5	18.2
Gross financial result	17.4	6.8	155.9
Combined operating ratio (COR)	79.7%	99.0%	-19.3 p.p.

-ends-

Information:
Bohdan Bialorucki
Tel + 48 22 557 43 41
E-mail: bohdan_bialorucki@cu.com.pl
For further information, see www.cu.com.pl

Notes to editors:
Commercial Union Poland group is part of the international Aviva group, the world’s sixth largest insurance, savings and investments group, and the largest in the United Kingdom by revenues. Aviva group operates in over 25 countries. It occupies a strong position in the European Union, including United Kingdom, Ireland, France, the Netherlands, Spain, Italy and Poland. Worldwide, Aviva group services over 30 million customers and manages assets valued at over £290 billion. For additional information, see the website http://www.aviva.com.