France: Half year results of Aviva France on 30 June 2011

Total net consolidated turnover at €3.5 billion on 30 June 2011 (30/06/10: €3.8 billion).

Significant progression of the operational IFRS result at €246 million on 30 June 2011 (30/06/10: €152 million), reflecting the robustness of the economic model of Aviva France after three years of severe volatility of the financial markets and the absence of climatic accidents in damages.

Life insurance and long-term savings

• The new life, savings and retirement business, in gross premiums issued, went down by 16% to €2.4 billion on 30 June 2011 (30/06/10: €2.9 billion), within a market falling by 12%. This overall decrease is explained by the marked decrease of collection of Afer which settled at €1 billion in the first semester of 2011, while it had experienced an important typical growth (+31%) in the first semester of 2010.
  On the other hand, Antarius (Aviva / Crédit du Nord joint venture) recorded an increase of 21% to €821 million on 30 June 2011. The first semester of 2011 saw less attractiveness of the funds in euros due to the fall in rates served at the end of 2010, and uncertainties which adversely affected the taxation of life insurance. Within this difficult environment, the model of multi-distribution, which characterises Aviva, again demonstrated its pertinence through the dynamism of the activity of Antarius in the first semester of 2011.
• New life, savings and retirement business in PVNBP¹ were down 17% to €2.7 billion on 30 June 2011 (30/06/2010: €3.2 billion).
• Aviva France also records a significant increase on the part of the units of account in its collection, at 19% on 30 June 2011 (30/06/10: 14%).

Damages and health insurance: combined ratio maintained at a solid level of performance:

• Net turnover up 3.5% to €671 million on 30 June December 2011 (30/06/10: €649 million).
• Combined ratio at 93.1%² on 30 June 2011, showing a clear improvement thanks to the maintenance of strong discipline of subscription and the absence of climatic accidents during the course of the first semester of 2011.

Assets management:

• Confirmation of the regularity and quality of management of Aviva Investors France over time. Over 10 years, 97% of the funds of Aviva Investors France appear in the first half of the funds of their category (over three years, 90%).
• Aviva Investors France has been awarded 8 prizes since the start of the year.
• Amount of managed liabilities of €81 billion on 30 June 2011.

-ends-

Press contacts:
Estelle Joubert     
Telephone: 01 76 62 57 86 
E-mail: estelle_joubert@aviva.fr

Karim Mokrane 
Telephone: 01 76 62 76 85 
E-mail: karim_mokrane@aviva.fr  

Notes to editors:

About Aviva

Aviva is the sixth largest insurer in the world* with more than 53 million clients spread over Europe, North America and the Asia-Pacific zone. The major sectors of the Aviva group are life insurance and long-term savings, assets management and damage insurance, with a total turnover of €55.4 billion and €468 billion of assets under management on 31 December 2010. Aviva is the most important insurer in the United Kingdom and one of the major life and retirement savings insurers in Europe.

The press space www.aviva.com/media comprises images, press releases and product information of the Aviva group.

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With more than 180 years of experience in France, Aviva is positioned among the top 10 insurance market players. Aviva France offers a complete range of products to three million clients, individuals, and small and medium businesses. The company is distinguished by the solid and profitable model of multi-distribution (875 general agents, 1,800 agency collaborators, 1,000 brokers, 400 life consultants, and 800 consultants in UFF management). Aviva France also has partners such as the AFER, the largest savers’ association in France, the Crédit du Nord Group, and vehicle manufacturers. Aviva directly employs more than 4,700 collaborators.

On 31 December 2010, it recorded a consolidated turnover of €7 billion and a net profit in IFRS accounting base of €424 million. The company had €80 billion of assets under management on 31 December 2010.

For further information on Aviva France, consult http://www.aviva.fr/assurances/assureur-aviva/aviva-presse.

* on the basis of gross world premiums issued on 31 December 2010.

¹ PVNBP (Present Value of New Business Premiums): value updated on a yearly basis for new business according to the principles of the MCEV (Market Consistent Embedded Value) applied by the CFO Forum.

² Cost ratio of accidents on premiums acquired + commissions and costs on premiums issued.