SOURCE: Aviva PLC

August 08, 2013 10:05 ET

Aviva plc Interim Results Statement

LONDON--(Marketwired - Aug 8, 2013) -




Start part 1 of 5


News Release
Aviva plc

Aviva plc Interim Results Statement
6 months 30 June 2013
8 August 2013



                          Aviva plc
         Interim Results Announcement 2013

Mark Wilson, Group Chief Executive Officer, said:
"In the first half we have taken a number of steps to deliver our
investment thesis of cash flow and growth. These results show
satisfactory progress in Aviva's turnaround.
"We have achieved profit after tax of GBP776 million, in contrast to
the GBP624 million loss last year. Cash flows to the Group have
increased by 30% to GBP573 million. Our key measure of sales - value of
new business - has increased 17%, driven by the UK, France, Poland,
Turkey and Asia."Although these results continue the positive trends of the
first
quarter, tackling our legacy issues will take time.
"I am committed to achieving for investors what we set out to do:
turning around the company to unlock the considerable value in Aviva."

Cash flow    - Cash remittances to Group up 30% at GBP573 million(1)
               (HY12: GBP441 million)
             - Operating capital generation GBP936 million(1)
               (HY12: GBP906 million)
             - The interim dividend is 5.6 pence per share (HY12: 10.0
               pence per share), consistent with guidance given at the
               full year 2012

Profit       - Operating profit 5% higher at GBP1,008 million(1)
               (HY12: GBP959 million)
             - IFRS profit after tax of GBP776 million
               (HY12: loss after tax of GBP624 million)

Expenses     - Operating expenses 9% lower at GBP1,528 million(2)
               (HY12: GBP1,675 million)
             - Restructuring costs 10% lower at GBP164 million(1)
               (HY12: GBP182 million)

Value of new - Value of new business up 17% to GBP401 million
               (HY12: GBP343 business million)
             - Increase driven by UK Life, France, Poland, Turkey and
               Asia

Combined     - Combined operating ratio 96.2% (HY12: 95.5%)
operating
ratio

Balance      - Intercompany loan reduced by GBP700 million to GBP5.1
sheet          billion
             - IFRS net asset value per share 281p (FY12: 278p)
             - MCEV net asset value per share 441p (FY12: 422p)
             - Pro forma(3) economic capital surplus(4) within our
               target range at GBP7.6 billion, 175%
               (FY12: GBP7.1 billion, 172%)
             - Sale of remaining shareholding in Delta Lloyd, disposal
               of businesses in Russia and Malaysia, and transfer of
               Aseval completed


(1) On a continuing basis, excluding US Life and Delta Lloyd.
(2) Operating expenses excludes integration and restructuring costs, US
    Life and Delta Lloyd.
(3) The pro forma economic capital surplus at HY13 includes the impact
    of the US Life transaction and an increase in pension scheme risk
    allowance from five to ten years of stressed contributions (FY12:
    includes the benefit of completing the US Life, Aseval, Delta Lloyd
    and Malaysia transactions).
(4) The economic capital surplus represents an estimated position. The
    capital requirement is based on Aviva's own internal assessment and
    capital management policies. The term 'economic capital' does not
    imply capital as required by regulators or other third parties.


Key financial metrics



Cash

                                                   Operating capital
                    Cash remitted to Group         generation
Continuing              6      6                  6  Restated1
operations,         months months            months  6 months
excluding Delta       2013   2012  Sterling%   2013      2012  Sterling%
Lloyd                 GBPm   GBPm     change   GBPm      GBPm   change

United Kingdom &
Ireland life           300    150       100%    261       370    (29)%

United Kingdom &
Ireland general
insurance & health      -      115         -    216       198       9%

Europe                209      160       31%    321       271      18%

Canada                 63        -         -    108       114      (5)%

Asia and Other          1       16     (94)%     30      (47)      164%

Total                 573      441       30%    936       906        3%


Operating profit before tax: IFRS basis

                                               Restated1
                                      6 months  6 months
Continuing operations, excluding          2013      2012   Sterling%
Delta Lloyd                               GBPm      GBPm      change

Life business                              910       897          1%

General insurance and health               428       462        (7)%

Fund management                             42        18        133%

Other*                                   (372)     (418)         11%

Total                                    1,008       959          5%


* Includes other operations, Corporate Centre costs and Group debt and
other interest costs.

Expenses

                                      6 months   6 months
                                          2013       2012  Sterling%
Continuing operations                     GBPm       GBPm     change

Operating expenses                       1,528      1,675        (9)%

Integration and restructuring              164        182       (10)%
costs
Expense base                             1,692      1,857        (9)%

Value of new business

                                     6 months    6 months
                                         2013        2012  Sterling%
Continuing operations                    GBPm        GBPm     change

United Kingdom                            211         182        16%

Ireland                                     1         (6)       117%

France                                     86          62        39%

Poland                                     21          18        17%

Italy                                       6          14      (57)%

Spain                                      13          21      (38)%

Turkey & Other Europe                      21          15        40%

Asia - excluding Malaysia and Sri Lanka    41          29        41%

Value of new business - pro forma basis   400         335        19%

Effect of disposals (Malaysia and Sri
Lanka)                                      1           8

Value of new business                     401         343         17%


General insurance combined operating ratio

                                    6 months     6 months
Continuing operations                   2013         2012      Change
United Kingdom & Ireland               96.9%        98.0%     (1.1)pp
Europe                                 97.0%        97.9%     (0.9)pp

Canada                                 92.4%        89.8%       2.6pp

General insurance combined operating
ratio                                  96.2%        95.5%       0.7pp


IFRS Profit after tax

                                                Restated1
                                    6 months     6 months
                                        2013         2012  Sterling%
                                        GBPm         GBPm     change

IFRS profit/(loss) after tax             776        (624)       n/a

Interim dividend
                                                 6 months  6 months
                                                     2013      2012
Interim dividend per share                           5.6p     10.0p


Capital position
                       Pro forma3     Pro forma3
                          30 June    31 December  30 June   31 December
                             2013           2012     2013          2012
                            GBPbn          GBPbn    GBPbn         GBPbn

Estimated economic
capital surplus2              7.6            7.1      7.1           5.3

Estimated IGD solvency
surplus                       3.7            3.9      4.2           3.8

IFRS net asset value per
share                                                281p          278p

MCEV4 net asset value per
share                                                441p          422p

1 The Group adopted the amendments to IAS19 and IFRS10 during the
  period and the requirements of the revised standards have been
  applied retrospectively.

2 The economic capital surplus represents an estimated position. The
  capital requirement is based on Aviva's own internal assessment and
  capital management policies. The term 'economic capital' does not
  imply capital as required by regulators or other third parties.

3 The pro forma economic capital and IGD surpluses at HY13 include the
  impact of the US Life transaction and, for economic capital only, an
  increase in pension scheme risk allowance from five to ten years of
  stressed contributions (pro forma FY12: includes the benefit of
  completing the US Life, Aseval, Delta Lloyd and Malaysia transactions
  and, for economic capital only, an increase in pension scheme risk
  allowance from five to ten years of stressed contributions).

4 In preparing the MCEV information, the directors have done so in
  accordance with the European Insurance CFO Forum MCEV Principles with
  the exception of stating held for sale operations at their expected
  fair value, as represented by expected sale proceeds, less cost to
  sell.

Group Chief Executive Officer's Report

Overview        Progress in the first six months of 2013 has been
                satisfactory. There have been some areas of solid
                performance and several areas of underperformance which
                are being addressed.

                Since becoming Group Chief Executive Officer at the
                start of the year I have had the opportunity to visit
                most of our businesses and to speak to many of our
                people and our customers. We have leading positions in
                several countries; customer service is strong and our
                expertise in underwriting, data and predictive
                analytics are core differentiating skills. It is
                essential that these skills are shared and developed
                across the Group for the benefit of all of our
                stakeholders.

                In March I set out our investment thesis of "cash flow
                plus growth'' and this is starting to transform the way
                we do business. We are focusing on five key metrics:
                cash flow, IFRS operating profit, value of new
                business, operating expenses and combined operating
                ratio. In the first half of the year the trends have
                been satisfactory across these metrics and are broadly
                consistent with the improvements in the first quarter.

                Solid progress has been made in reducing the size of
                the internal loan by GBP700 million (of which GBP300
                million is in cash) ahead of our commitment to reduce
                it by GBP600 million over three years. In addition we
                have increased our provision for default on the
                commercial mortgage portfolio by GBP300 million to
                GBP1.5 billion.

Cash flow       We are managing our businesses in established markets
                to maximise cash flows to the Group. Cash flows are
                dividends paid by our business units to Group. In the
                first half of 2013, GBP573 million of cash was remitted
- Cash          to Group (HY12: GBP441 million).
remitted
to Group of     Operating capital generation (OCG) was GBP936 million1
GBP573 million  (HY12: GBP906 million) with improvements in life new
                business strain, fund management and central costs,
- OCG stable    offset by fewer one-off positive variances in life and
at              the impact of floods on our general insurance business
GBP0.9 billion  in Canada. Our priority is to improve the remittance
                ratios from OCG to dividends, which in previous years
- Interim       have been significantly lower than our peers.
dividend 5.6
pence per share In line with our guidance at the full year results in
                March 2013, the interim dividend is 5.6 pence per
                share, consistent with the percentage reduction in the
                2012 final dividend. We also announced at the full year
                results that we would eliminate the scrip to stop
                further shareholder dilution and improve earnings per
                share growth.

IFRS operating  In the first six months IFRS operating profit was
profit          GBP1,008 million1 (HY12: GBP959 million). IFRS
                operating profit levels were 5% higher primarily due to
                lower expenses. The diversified nature of our business
                ensured that our profits were resilient despite the
- Operating     economic backdrop and the low interest rate
profit:         environment.
GBP1,008
million
                While operating profit is satisfactory at a Group
                level, it is far from satisfactory in several of our
                businesses. In Spain and Italy, although underlying
                profits have increased, there is considerable scope to
                improve performance. In Ireland and Aviva Investors it
                is essential that we see a significant improvement in
                operating performance over time. Although some progress
                has been made reshaping these turnaround businesses and
                cutting expenses, there is some way to go before
                product mix and efficiency levels are adequate. We have
                recently appointed new leaders in Aviva Investors and
                Ireland which will help the pace of transformation.

Expenses        We have made adequate progress reducing our operating
                expenses, which are 9% lower at GBP1,528 million1
                (HY12: GBP1,675 million).

- Operating     There is potential for additional cost savings within
expenses 9%     the Group which are likely to be allocated towards
lower at        strategic initiatives including digital and automation,
GBP1,528        to improve the efficiency of our business going
million         forward.

-Restructuring  Restructuring cost reductions are in addition to the
costs of GBP164 GBP400 million expense savings target. In the first
million (HY12:  half of 2013, restructuring costs were 10% lower at
GBP182 million) GBP164 million (HY12: GBP182 million). Although
                restructuring costs in 2013 will still be significant,
                I expect them to be lower than the 2012 level of GBP461
                million1, with material reductions in 2014.


1 On a continuing basis, excluding US Life and Delta Lloyd.



Value of   We determine growth not by the top line - we already have
new        scale in many markets - but by the value
business   of new business (VNB), which is the source of future cash
           flow. VNB increased 17% to GBP401 million (HY12: GBP343
           million) driven by improved profitability and product mix in
           UK Life and France, which increased by 16% and 39%
           respectively. In
- VNB      the growth markets of Poland, Turkey and Asia (excluding
up 17%     Malaysia and Sri Lanka) VNB improved by 17%, 54% and 41%
to         respectively. We expect the overall growth rate in VNB to
GBP401     moderate during the second half of 2013.
million

Combined   In general insurance, the combined operating ratio (COR) in
operating  the first half was satisfactory at 96.2% (HY12: 95.5%). The
ratio      general insurance performance includes an impact of GBP70
           million as a result of the floods in Alberta, Canada, offset
           by better than expected weather in the UK. In the UK and
           Canada, our major general insurance businesses, the combined
           operating ratios were 96.3% and 92.4% respectively (HY12:
- COR at   97.2% and 89.8%).
96.2%
           We continue to invest in predictive analytics across our
           personal and commercial lines of business. Our strong
           personal lines results, particularly in Canada, demonstrate
           the benefits of the development of centres of excellence in
Predictive this area. We are focussed on improving our performance
analytics  across the Group by exporting this capability throughout the
key focus  business.

           A key strength of Aviva is our diversification across
           geography and lines of business. By way of example, in the
           UK we are starting to experience rate hardening across our
           commercial lines business at a time of softening rates
           across personal lines. In Canada, we expect hardening rates
           in property and softening of rates in motor.

Geographic I see Aviva as a portfolio of businesses grouped into three
strategy   areas: cash flow generators, future cash flow generators and
           turnaround businesses. Within each of these groups there are
           areas of underperformance which are being addressed.

           Our cash flow generators are UK, France and Canada and our
           objective in these markets is to improve cash flow and
           profitability.

           The turnaround businesses are Italy, Spain, Ireland and
           Aviva Investors. In Spain and Italy we are focused on
           managing their back books to release free capital and
           improve cash remittances to group. Aviva Investors has
           underperformed from a shareholder perspective and we expect
           it to play a more prominent role in the group going forward.
           We have recently appointed Euan Munro who will play a
           pivotal role helping Aviva Investors, a core part of the
           Group, improve its profitability and contribution to Aviva.

           Future cash generators are Poland, Turkey, South East Asia
           and China. These are attractive markets which offer growth
           potential. In Poland, we are the second largest life and
           pensions provider. Turkey has demographic and economic
           characteristics similar to high growth Asian markets and is
           a key focus for VNB growth. In Asia we are making progress
           with a more focused approach, concentrating on China and
           South East Asia.

People     In the first half of 2013 I have strengthened the management
           team. This is essential to the transformation of Aviva. New
           people have been brought in, and others have been promoted
           from within the business. Khor Hock Seng, David McMillan,
           Jason Windsor, Nick Amin, Christine Deputy and Euan Munro
           have been recruited, promoted or added to the Group
           Executive Committee. We have also made key senior
           appointments in Ireland, Poland and Investor Relations.

           In my first six months I have been struck by the
           professionalism and dedication of Aviva's people. Their
           focus, commitment and hard work are driving Aviva's
           transformation.

Outlook    In summary, our performance over the first half of the year
           has been satisfactory. There are a number of areas that must
           be addressed, in particular leverage, expenses, and
           underperformance in some of our markets. These issues are
           largely within our gift to resolve. Completion of the sale
           of the US business is important to the Group and we confirm
           our previous guidance that we expect it to complete by the
           end of the year.

           As a business it is important that we deliver for investors
           what we set out to do. There remains considerable value to
           unlock in Aviva.


Mark Wilson,
Group Chief Executive Officer




Group Chief Financial Officer's Report



Overview    Results in the six months to 30 June 2013 have been
            satisfactory, with operating profit from continuing
            operations 5% higher, driven primarily by expense
            reductions.

            We continue to focus on improving the capital efficiency of
            our business through lower new business strain, more
            efficient back-book cash generation and improved
            remittances. Operating capital generation for the period
            was GBP936 million (HY12: GBP906 million), and remittances
            of GBP573 million were received in this half of the year
            (HY12: GBP441 million). The bulk of our capital generation
            comes from our large back-book of life insurance business
            already written. On average c.GBP1.1 billion of free
            surplus from our existing customers will be released over
            each of the next five years as this book runs off, in
            addition to contributions from general insurance and asset
            management, plus management actions including cost saves.
            This creates a stable and sustainable outlook for our
            capital generation.

            In the period, we have taken further steps to strengthen
            our balance sheet and improve the predictability of future
            cash flows. We have reduced our internal leverage by GBP700
            million through a combination of GBP300 million cash
            repayment and GBP400 million non-cash methods. Our
            pro forma IGD surplus and pro forma economic capital ratios
            are GBP3.7 billion and 175% respectively, the latter at the
            top-end of our 160-175% target range. We have increased the
            credit default provision in our UK commercial mortgage
            portfolio by GBP300 million, so this now stands at GBP1.5
billion.

Business    In UK life, operating profit of GBP438 million was GBP31
Unit        million lower than the prior year period. Expense
Performance reductions of GBP50 million were more than offset by the
            non-repeat of a GBP74 million provision release in HY12.
            Value of new business was 16% higher year-on-year, mostly
            driven by re-pricing our annuities book. This, along with a
            greater focus on risk products, resulted in new business
            margin improving significantly to 34% of annual premium
            equivalent (HY12: 25%).

            Overall, performance in UK GI was solid, with operating
            profit of GBP239 million, up 5%, despite a GBP45 million
            reduction in investment return following the intercompany
            loan reorganisation. The COR of 96.3% (HY12: 97.2%)
            benefitted from disciplined underwriting and relatively
            benign weather.

            In Canada, the COR of 92.4% (HY12: 89.8%) was impacted by
            the Alberta floods and operating profit reduced to GBP147
            million as a result (HY12: GBP174 million). Canada's strong
            underwriting ability was demonstrated even in a period of
            unusually large losses. France had a 15% improvement in
            operating profit, mostly as a result of a shift to higher
            margin protection products in life. France is a stable cash
            generator, with a GBP103 million remittance to group in the
            first half of 2013.

            Our growth markets had strong VNB progression over the
            period, with Turkey and Asia (excluding Malaysia and Sri
            Lanka) up 54% and 41% respectively, and more modest growth
            of 17% in Poland. The higher VNB across these markets was
            mainly a result of increased sales of higher margin
            protection products.

Capital and Our capital ratios have remained broadly constant over the
liquidity   six months to 30 June 2013, largely due to the actions
            taken in 2012 to de-risk the balance sheet along with
            fairly benign market conditions. Our pro forma economic
            capital surplus was GBP7.6 billion at HY13 (FY12: GBP7.1
            billion), representing a capital adequacy ratio of 175% and
            our pro forma regulatory surplus (IGD) was GBP3.7 billion
            (FY12: GBP3.9 billion). At present, a 50bps downward shift
            in the yield curve would reduce our economic capital
            surplus ratio to 170%, still within our targeted range of
            160%-175%. We would remain within our targeted capital
            range should a 20% fall in equity markets or a 100bps
            widening of credit spreads occur.

            We have recently been included on the list of nine Global
            Systemically Important Insurers and will work closely with
            the regulators to understand the implications of this. This
            will not have any immediate implications on the level of
            capital we will be required to hold. The Solvency II
            capital framework continues to evolve and we participate
            actively in these discussions.

            Group centre liquidity currently stands at GBP1.1 billion.
            Disposal proceeds along with cash remittances from business
            units were received during the first half of the year. From
            this, GBP300 million of internal loan repayment was made
            along with the 2012 final dividend.


Intercompany Following the restructure of Aviva Insurance Limited (AIL)
loan         announced earlier in the year, a GBP5.8 billion formal
             loan was established between AIL and Aviva Group Holdings
            (AGH), the parent company of many of our international
             subsidiaries. Since then, we have repaid GBP300 million of
             the internal loan in cash. Following the removal of AIL's
             guarantee of the Group's commercial paper and consequent
             increase in economic capital in AIL, a further GBP400
             million of the loan was retired, bringing the balance down
             to GBP5.1 billion.

             As previously announced, we intend to reduce the internal
             loan by a further GBP300 million of cash by the end of
             2015. We plan on taking additional steps to reduce the
             loan balance by non-cash methods.

External     External leverage remains broadly unchanged over the six
leverage     months of 2013, with a debt to tangible equity ratio of
             50% (FY12: 50%). In July 2013, we raised EUR650 million of
             hybrid debt ahead of the GBP0.8 billion of debt up for
             call in the next eight months. We remain focused on
             reducing our external leverage ratio to below 40% in the
             medium term. We anticipate using some of the proceeds from
             the US life disposal towards reducing our external
             leverage.

Asset        Aviva has a large balance sheet with exposure to
portfolio    approximately GBP265 billion of financial investments and
             loans. Most of these assets are held on behalf of
             policyholders, with no risk of investment loss to
             shareholders, or in participating funds where most of any
             potential loss is borne by policyholders. Of the c.GBP87
             billion financial assets to which shareholders are
             directly exposed, the vast majority is in fixed interest
             bonds and loans.

             De-risking of our asset portfolio has continued over the
             six months, albeit at a more moderate pace. We have made
             gross disposals of GBP1 billion1 of Italian sovereign
             bonds, offset by market movements including FX and
             disposed of GBP35 million of Co-Operative Bank bonds prior
             to the announced bail-in.

             In the UK, the asset portfolio backing the UK annuity
             business includes GBP14.4 billion of corporate debt
             securities and GBP12.2 billion of commercial mortgages.
             Excluding GBP4.1 billion of healthcare and Private Finance
             Initiative (PFI) mortgages, which have lower risk
             characteristics, there exists GBP8.1 billion of commercial
             mortgages to which shareholders are exposed. During the
             first half of the year, impairments on the mortgage
             portfolio increased above our long term trend and we
             subsequently carried out an extensive review of the
             portfolio. Consequently, we have increased the
             direct provisions against default in the mortgage
             portfolio by GBP300 million. The allowance in the
             liability valuation for mortgages is now GBP1.5 billion.

Net Asset    IFRS operating profits of 26p per share over the first six
Value        months more than covered the payment of the 2012 final
             dividend of 9p per share. This was also partly offset by
             the adverse movement of the pension scheme of 8p, which
             was mainly as a result of an increase in CPI, and the
             additional commercial mortgage provision which reduced our
             book value per share by 8p.

             Net asset value 2

                                                             IFRS MCEV
             Opening NAV per share at 31 December 2012       278p 422p

             Operating profit                                 26p  27p
             Dividends                                       (9)p (9)p
             Investment variances                              3p   9p
             Commercial mortgages                            (8)p (2)p
             Pension fund                                    (8)p (8)p
             Integration and restructuring costs, goodwill   (6)p (5)p
             impairment and other items
             Foreign exchange                                  5p   7p
             Closing NAV per share at 30 June 2013           281p 441p


Pat Regan
Group Chief Financial Officer


1 Gross of non-controlling interests, purchases and redemptions.

2 Net of tax and non-controlling interests.


Notes to editors

All comparators are for 6 months to 30 June 2013 unless otherwise
stated.

Income and expenses of foreign entities are translated at average
exchange rates while their assets and liabilities are translated at the
closing rates on 30 June 2013, 30 June 2012 and 31 December 2012
respectively. The average rates employed in this announcement are 1
euro = GBP0.85 (6 months to 30 June 2012: 1 euro = GBP0.82, 12 months
to 31 December 2012: 1 euro = GBP0.81) and US$1 = GBP0.65 (6 months to
30 June 2012: 1 US$ = GBP0.63, 12 months to 31 December 2012: 1 US$ =
GBP0.63).

Growth rates in the press release have been provided in sterling terms
unless stated otherwise. The following supplement presents this
information on both a sterling and local currency basis.

Cautionary statements:

This should be read in conjunction with the documents filed by Aviva
plc (the "Company" or "Aviva") with the United States Securities and
Exchange Commission ("SEC"). This announcement contains, and we may
make verbal statements containing, "forward-looking statements" with
respect to certain of Aviva's plans and current goals and expectations
relating to future financial condition, performance, results, strategic
initiatives and objectives. Statements containing the words "believes",
"intends", "expects", "plans", "will,""seeks", "aims", "may", "could",
"outlook", "estimates" and "anticipates", and words of similar meaning,
are forward-looking. By their nature, all forward-looking statements
involve risk and uncertainty. Accordingly, there are or will be
important factors that could cause actual results to differ materially
from those indicated in these statements. Aviva believes factors that
could cause actual results to differ materially from those indicated in
forward-looking statements in the presentation include, but are not
limited to: the impact of ongoing difficult conditions in the global
financial markets and the economy generally; the impact of various
local political, regulatory and economic conditions; market
developments and government actions regarding the sovereign debt crisis
in Europe; the effect of credit spread volatility on the net unrealised
value of the investment portfolio; the effect of losses due to defaults
by counterparties, including potential sovereign debt defaults or
restructurings, on the value of our investments; changes in interest
rates that may cause policyholders to surrender their contracts, reduce
the value of our portfolio and impact our asset and liability matching;
the impact of changes in equity or property prices on our investment
portfolio; fluctuations in currency exchange rates; the effect of
market fluctuations on the value of options and guarantees embedded in
some of our life insurance products and the value of the assets backing
their reserves; the amount of allowances and impairments taken on our
investments; the effect of adverse capital and credit market conditions
on our ability to meet liquidity needs and our access to capital; a
cyclical downturn of the insurance industry; changes in or inaccuracy
of assumptions in pricing and reserving for insurance business
(particularly with regard to mortality and morbidity trends, lapse
rates and policy renewal rates), longevity and endowments; the impact
of catastrophic events on our business activities and results of
operations; the inability of reinsurers to meet obligations or
unavailability of reinsurance coverage; increased competition in the UK
and in other countries where we have significant operations; the effect
of the European Union's "Solvency II" rules on our regulatory capital
requirements; the impact of actual experience differing from estimates
used in valuing and amortising deferred acquisition costs ("DAC") and
acquired value of in-force business ("AVIF"); the impact of recognising
an impairment of our goodwill or intangibles with indefinite lives;
changes in valuation methodologies, estimates and assumptions used in
the valuation of investment securities; the effect of legal proceedings
and regulatory investigations; the impact of operational risks,
including inadequate or failed internal and external processes, systems
and human error or from external events; risks associated with
arrangements with third parties, including joint ventures; funding
risks associated with our participation in defined benefit staff
pension schemes; the failure to attract or retain the necessary key
personnel; the effect of systems errors or regulatory changes on the
calculation of unit prices or deduction of charges for our unit-linked
products that may require retrospective compensation to our customers;
the effect of a decline in any of our ratings by rating agencies on our
standing among customers, broker-dealers, agents, wholesalers and other
distributors of our products and services; changes to our brand and
reputation; changes in government regulations or tax laws in
jurisdictions where we conduct business; the inability to protect our
intellectual property; the effect of undisclosed liabilities,
integration issues and other risks associated with our acquisitions;
and the timing impact and other uncertainties relating to acquisitions
and disposals and relating to other future acquisitions, combinations
or disposals within relevant industries. For a more detailed
description of these risks, uncertainties and other factors, please see
Item 3d, "Risk Factors", and Item 5, "Operating and Financial Review
and Prospects" in Aviva's Annual Report Form 20-F as filed with the SEC
on 25 March 2013. Aviva undertakes no obligation to update the forward
looking statements in this announcement or any other forward-looking
statements we may make. Forward-looking statements in this presentation
are current only as of the date on which such statements are made.

Aviva plc is a company registered in England No. 2468686.
Registered office
St Helen's
1 Undershaft
London
EC3P 3DQ

Contacts
Investor contacts     Media contacts       Timings

Colin Simpson         Nigel Prideaux       Real time media conference
+44 (0)20 7662 8115   +44 (0)20 7662 0215  call 07:15 hrs BST
David Elliot          Andrew Reid          Analyst presentation
+44 (0)20 7662 8048   +44 (0)20 7662 3131  08:15 hrs BST
                      Sarah Swailes        Presentation slides
                      +44 (0)20 7662 6700   www.aviva.com 
                                           06.30hrs BST

                                   Live webcast
                                    www.avivawebcast.com/interims2013/ 
                                   08:15 hrs BST






End of part 1 of 5
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