Aviva International - strong, balanced and profitable growth

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1 Aviva International - strong, balanced and profitable growth Tidjane Thiam Managing Director, Aviva International

2 We aim for sustainable and profitable growth The right markets The right capabilities - Provider of choice for customers - Partner of choice for distributors The right people

3 We start from a good place: good spread of positions across markets Top 5 positions Within top 10 Market presence Netherlands (LTS & GI) Spain (LTS) Ireland (LTS & GI) Canada (GI) Poland (LTS) Singapore (LTS) China* (LTS) Turkey (LTS) Lithuania (LTS) Sri Lanka (LTS &GI) * Among foreign players France (LTS) Italy (LTS) Australia (LTS) India (LTS) Hungary (LTS) Romania (LTS) LTS Long Term Savings GI General Insurance USA (LTS) France (GI) Italy (GI) Turkey (GI) Poland (GI) Hong Kong (LTS) Czech Republic (LTS) Russia (LTS)

4 Managed asset classes are a significant opportunity Global Personal Financial Assets % = $102tn Home Equity 32% 21% Cash & Deposits Life and Pensions 12% 11% Occupational Pensions 8% 16% Mutual Funds Direct Investments Managed asset classes

5 across the three major economic zones Growth In Life and Pensions assets by region Life & Pensions Assets CAGR ( ) ROW Latin America Asia excl. Japan Area of bubble = Projected increase in Life & Pensions assets to 2015 Japan North America Aviva s presence Strong Growing None Europe Life & Pensions Assets 2004 ($bn) Source: Mercer Oliver Wyman

6 We will continue to invest in growing our GI presence Strong positions to start from and many opportunities Leading positions in the UK, Ireland, Canada and the Netherlands Leverage strengths in key capabilities to gain market share and increase profitability Add new distribution channels (e.g. banks, direct distribution) Well-established businesses supporting our LTS strategy in France, Italy, Poland and Turkey Acquire selectively to build scale

7 We aim for sustainable and profitable growth The right markets The right capabilities - Provider of choice for customers - Partner of choice for distributors The right people

8 Creating value through customer satisfaction Aviva France Satisfied customers are the ones that create lasting value They bring in new customers by referring your company to their families and friends 100% They are prepared to buy other products from you as they trust you 50% 0% Moderately satisfied * Very satisfied ** Recommending Aviva Wish to buy again * Client satisfaction rating equal to 5/10 ** Client satisfaction equal to 8/10

9 Creating value through customer insights Aviva India Product development using continuous research into customer needs

10 You only improve what you measure Measured by 50% of our businesses Customer Advocacy (customers are ready to recommend to others) Measured by 100% of our businesses Measured by 87% of our businesses Customer Satisfaction (customers are pleased about how company suits their needs) Measured by 100% of our businesses We aim at being the provider of choice for our customers

11 We aim for sustainable and profitable growth The right markets The right capabilities - Provider of choice for customers - Partner of choice for distributors The right people

12 To win, we need to excel at reaching customers through their preferred distribution channels IFAs / Brokers IFAs / Brokers Bancassurance including JVs IFAs / Brokers Tied Agents Tied Agents Bancassurance including JVs Bancassurance including JVs Tied Agents Tied Agents Others Others Others Others Emerging Developing Mature Type A Mature Type B xamples: India Poland China France Spain, Italy Netherlands Australia, USA

13 What we have achieved diversified distribution AI Life & Pensions distribution by channel 2000 AI Life & Pensions distribution by channel % 26% 34% 55% 38% 40% Independent Agents/Brokers Tied Agents/Direct Bancassurance Basis 2000 APE Basis 2005 PVNBP Broad access to customers Net of minorities

14 Building proprietary distribution Aviva operates the Direct Sales Force model in markets with differing degrees of maturity Life Premiums as a % of GDP 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% China, India C&EE France Netherlands ,000 1,500 2,000 2,500 3,000 3,500 Life Premiums per Capita ($) UK Source: Sigma

15 Bancassurance: a strategy for the long term Bancassurance 2000 Bancassurance 2005 PVNBP 373m PVNBP 2,602m UniCredit BdM BPI BPU Crédit du Nord ABN AMRO DBS Singapore DBS Hong Kong Caixa Galicia Unicaja Caja Espana Caja de Granada Bancaja Net of minorities, 2000 PVNBP calculated using 2003 capitalisation factor. Excludes distribution agreements, other than DBS

16 Bancassurance growth from customer base penetration Insurance penetration of Spanish partner customer bases 25% Bancaja 20% 15% 10% 5% Unicaja Caixa Galicia Caja Espana Caja Granada 0% Basis: Different customers in each Business Unit divided by the number of active customers in each Savings Bank.

17 Bancassurance growth from extended distribution reach Partners network has grown fourfold in five years 4,500 4,000 No. of branches 3,500 3,000 2,500 2,000 1,500 1, Caja España Caja Granada Unicaja Caixa Galicia Bancaja

18 Working with independent agents Aviva actively supporting the development of the independent financial planning channel Strong experience dealing with independent agents: - Aviva Singapore ranked 1st in the IFA sector - Aviva Australia positioned as the home of the independents - Aviva USA growing strongly through independent agent distribution

19 We aim for sustainable and profitable growth The right markets The right capabilities - Provider of choice for customers - Partner of choice for distributors The right people

20 The right people: the importance of our teams Aviva s decentralised model empowers local management teams Employee engagement is critical to delivering Aviva s values Senior management bonuses partly linked to Business Unit scores for leadership and employee engagement

21 We aim for sustainable and profitable growth The right markets The right capabilities - Provider of choice for customers - Partner of choice for distributors The right people

22 This strategy has produced excellent results: among the fastest growing of our peers in Europe Growth in Life premiums - Aviva vs. Peers in Europe excluding UK (CAGR , in %) Aviva Allianz Axa Generali ING Source: Annual Reports; Total Life and Pensions GWP

23 High growth can be achieved in large developed markets Aviva Businesses performance relative to national markets (CAGR ) Aviva Italy Aviva France Delta Lloyd Aviva Spain market CAGR +13.1% +5.9% +1.3% 1-3.0% Note: Total PVNBP Growth net of minorities, constant currency (Source Aviva) - Life & Pensions Market Premium Growth (Source: Axco, Aviva) market premiums based on Delta Lloyd estimate of 1% growth

24 and we are adept at successfully entering new markets China India Aviva PVNBP Aviva PVNBP +197% p.a % p.a Market position Generali AIA Prudential Aviva bancassurance deals giving access to more than 41m customers Extending presence into Sri Lanka Basis foreign JVs