Aviva plc · LSE:AV.

Aviva — Goldman Sachs European Financials Conference 2005

15 slides from Aviva's conference presentation, Jun 8, 2005

1. Slide 1: Aviva in Spain – also-ran to market-leader in four years

   Goldman Sachs European Financials Conference “Navigating the Sea of Change" 8 June 2005 Aviva in Spain – also-ran to market-leader in four years Philip Scott, Group Executive Director, Life International Avi va in Spain Slide 1 © Avi va plc

2. Slide 2: Transforming Aviva's Position in the Spanish Market

   Transforming Aviva’s Position in the Spanish Market 2000 Long Term Savings Gross Written Premium 1800 1600 1400 First £m bancassurance 1200 deal 1000 800 600 400 200 0 1999 2000 2001 2002 2003 2004 Avi va in Spain Slide 2 © Avi va plc Source: Aviva

3. Slide 3: Aviva in Spain, 1999-2000

   Aviva in Spain, 1999-2000 • Long-standing but sub-scale composite business • Aviva’s market view: - No prospect of market leadership or exceptional returns in GI - Profitable growth in Life and Savings, but… - … bank distribution required in regional markets • Implications of market view and Group s

4. Slide 4: Aviva's bancassurance strategy

   Aviva’s bancassurance strategy Partnerships Multiple small / Key strategic Partnership with savings mid-sized elements structure banks partnerships Perceived risks • Strength of • No single trans- • Cannibalisation business model formational deal Benefits • Strong regional • Economies of • Interests

5. Slide 5: Development of Aviva's Spanish business

   Development of Aviva’s Spanish business Plus Ultra acquisition of JV with British Life Development and Start of Unicaja consolidation of mutual funds product in the industry Start JV with of pension Caja networks externalisation España JV with Caja Granada 1997 1999 2000 2001 2002 2003 2004 Sale of

6. Slide 6: Making the transactions work

   Making the transactions work • Deal Criteria - Strong franchise - Cultural fit - Willingness to adopt Aviva model • Managing the Integration - Relationship management - Migration to Aseval platform - Adoption of Aseval products, processes and procedures Avi va in Spain Slide 6 © Avi va plc

7. Slide 7: Realising the upside: increasing penetration

   Realising the upside: increasing penetration Total Insurance Clients/Total Potential Clients 25.00% Aseval 20.00% Unicorp Vida 15.00% Bia Galicia 10.00% Caja España Vida 5.00% General Vida 0.00% 2000 2001 2002 2003 2004 Further Potential For Growth Avi va in Spain Slide 7 © Avi va plc

8. Slide 8: Aviva in Spain – business model

   Aviva in Spain – business model Aviva Spain Key features • Management control 100% 50%(1) TPA 50%(1) Aviva Vida y Unicorp Vida • Exclusive and perpetual Aseval Pensiones Bia Galicia distribution agreements C. España Vida • One “factory” 91 people 50% Ag. C. Granada(2) • Innovative 50% non-bancassura

9. Slide 9: Continued low costs underpin attractive margins

   Continued low costs underpin attractive margins Acquisition and administration costs (% of premium, 2004) 6 6.93% 5 4 % 3 2.75% 2 2.56% 1 2.19% 0 Aseval Aviva Other large Total Spanish life bancassurance bancassurers market cons. Increased competitive advantage against the market Avi va in Spain Sli

10. Slide 10: Strong Margins Supported by Pricing – Low Expenses and Scale Advantages

    Strong Margins Supported by Pricing – Low Expenses and Scale Advantages 10 0 . 0 % Bancassurance Gross Margins 80. 0% EV basis 60. 0% EEV basis 40. 0% 20. 0% 0. 0% Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 2000 2001 2001 2002 2002 2003 2003 2004 2004 Margins driven by changes in product mix Source: Annual reports

11. Slide 11: Aviva Spain: growing embedded value

    Aviva Spain: growing embedded value • £505m (of which £448m goodwill¹) invested in Spanish bancassurance • Aviva’s 2004 share: NBC post CoC, post tax £37m Bancassurance EV evolution (Aviva share) 250 240(3) 200 176(3) EV value 150 generation 134(2) 106(2) ( £m ) 100 57(2) 50 Total acquired 47 79 79

12. Slide 12: Aviva Vida y Pensiones

    Aviva Vida y Pensiones • Relaunched in 2002 • Traditional distribution channels - financial advisors - brokers - agents • Championing the Aviva brand in Spain Avi va in Spain Slide 12 © Avi va plc

13. Slide 13: Key strengths of Aviva's model

    Key strengths of Aviva’s model Bancassurance Agent distribution • Partnership • Unique Specialisation • Distribution • Quality of advice • Efficiency • Brand • Management • Penetration upside Avi va in Spain Slide 13 © Avi va plc

14. Slide 14: Key Success Factors

    Key Success Factors • Patience • Focus • People • Core Technical Expertise Avi va in Spain Slide 14 © Avi va plc

15. Slide 15: Avi va in Spain Slide 15 © Avi va plc

    Avi va in Spain Slide 15 © Avi va plc

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