UK Life, Driving value through excellence

Investor and Analyst Event, Wednesday 6th May 2009

Andrew Moss NUL18.11.08

 Disclaimer

This presentation may include oral and written “forward-looking statements” with respect to certain
of Aviva’s plans and its current goals and expectations relating to its future financial condition,
performance and results. These forward-looking statements sometimes use words such as
‘anticipate’, ‘target’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’ or other words of similar
meaning. By their nature, all forward-looking statements involve risk and uncertainty because they
relate to future events and circumstances which may be beyond Aviva’s control, including, among
other things, UK domestic and global economic and business conditions, market-related risks such
as fluctuations in interest rates and exchange rates, the policies and actions of regulatory
authorities, the impact of competition, the possible effects of inflation or deflation, the timing impact
and other uncertainties relating to acquisitions by the Aviva Group and relating to other future
acquisitions or combinations within relevant industries, the impact of tax and other legislation and
regulations in the jurisdictions in which Aviva and its affiliates operate, as well as the other risks
and uncertainties set forth in our 2008 Annual Report to Shareholders. As a result, Aviva’s actual
future financial condition, performance and results may differ materially from the plans, goals and
expectations set forth in Aviva’s forward-looking statements, and persons receiving this
presentation should not place undue reliance on forward-looking statements.

Aviva undertakes no obligation to update the forward-looking statements made in this presentation
or any other forward-looking statements we may make. Forward-looking statements made in this
presentation are current only as of the date on which such statements are made.

Andrew Moss NUL18.11.08

Agenda

• UK Life in excellent shape Mark Hodges, Chief Executive Officer

• Driving up profitability & generating capital John Lister, Finance Director

• Delivering operational excellence Toby Strauss, Chief Operating Officer

• Break and innovation demonstrations UK Life Management Team

• Strategic outlook Mark Hodges, Chief Executive Officer

• Strategic focus David Barral, Marketing Director

Questions & answers

Lunch

3
UK Life: an evolving distinctive position

2001 – product positioning

Pension 100%

Savings 0%
Risk 0%

NU

Savings 100% Pension 0% Risk 100%

Consistent strategy & ruthless execution has delivered a distinctive position

4
UK Life: an evolving distinctive position

2008 – product positioning

Pension 100%

Savings 0%
Risk 0%

NU

Savings 100% Pension 0% Risk 100%

Consistent strategy & ruthless execution has delivered a distinctive position

5
 Context for strategy: factors shaping the mid term

Industry past Forces for change Threats & opportunities

Recession
• Growth funded by • Capital conservation
capital
• Margin squeeze
• Single premium driving RDR & TCF
• Smaller IFA shop
volume
window
• IFA channel pre- Distributor
• IFA channel orphans
dominant consolidation
• Growing role of
• A Day boom in
DB / DC workplace in retirement
personal pensions
NPSS • Acceleration in at-
• Steady growth in
retirement provision
retirement needs
Demographics

The next 3 - 5 years presents a mixture of opportunity and challenge

6
Our strategy will drive consistent outcomes

Successful outcomes
• Driving in-force value
Choices on future
• Improved capital efficiency
direction and focus
• Cash generation
• Profitable growth

We are now in a position to make choices for the next 3 – 5 years

7
Five key strengths

Scale of Aviva customer

A large and distinctive customer base
base opportunity

Unrivalled data and

Risk capability
capability

All-round proposition
Momentum in Corporate
strength

Distribution reach and

Distribution strength and depth
flexibility

Brand Global re-brand

These advantages will form the basis of our strategic priorities

8
Agenda

• UK Life in excellent shape Mark Hodges, Chief Executive Officer

• Driving up profitability & generating capital John Lister, Finance Director

• Delivering operational excellence Toby Strauss, Chief Operating Officer

• Break and innovation demonstrations UK Life Management Team

• Strategic outlook Mark Hodges, Chief Executive Officer

• Strategic focus David Barral, Marketing Director

Questions & answers

Lunch

9
 UK Life, Driving Value Through Excellence

UK Life • A distinctive customer heartland

Market leadership • 5 areas of strategic focus & action
• Summary of strategic direction
Drive up profitability
Purpose
Prosperity &
peace of mind
Generate capital
Vision
One Aviva,
Operational excellence
twice the

Strategic
priorities
value

Targets Competitive advantage

• Manage composite • 98% meet or beat COR
portfolio • £500m cost savings by
• Build global Asset 2010
Management • Double IFRS EPS by
• Allocate capital 2012 at the latest
rigorously • 1.5 – 2 x dividend cover
• Increase customer on IFRS post tax
reach operating earnings
• Boost productivity

Aviva Investors
• Globally integrated business • Transform the investment model • Increase third party business

UK Europe N. America Asia Pacific

Market leadership Scale, growth, capital • Optimise business mix, Scale, growth
• Address legacy • Seize unique growth growth & margin • Prioritised portfolio
• Transform business opportunities • Generate net capital • Regional operating
model • Leverage scale returns model
• Exploit UK synergies • Generate capital • Contribute to doubling • Investment required
• Generate capital IFRS EPS by 2012

Driving differentiation
10
We have a distinctive customer heartland

Customers Main needs Competitors Basis of competition

High net worth Wealth managers
Performance
£500k + Complex wealth Banks, insurers
Advice
management Distributors
Planning
Mass affluent Fund managers
£100 – £500k

Middle market Packaged solutions Scale

£30k – £100k Building wealth Insurers Reach
Protection Retail banks Product range
Retirement income Brand

Mass market
£0 – £30k
Loans
Retail banks Reach
Short term savings

Aviva UK Life customer heartland

Targeting the mid market – plays to our strengths and less competitively crowded
11
 Positioning based on deep insight

Wealth
e
bl y
lth rs ch
By r ta a Ri
fo e e r
w
Lo ers ng m W iev pe
or tti Co ch Su
Po rn Ge A
Ea

Retired ƒ Overweight for UK

ƒ Strong growth predicted
Life Stage

Pre-retired
ƒ 8.6m unserved

Family
ƒ Higher average value

Non-Family

Our heartland is not only distinctive but also more profitable

12
 Opportunity from our existing customer base

Existing UK Life Customers

UK Life customers (Millions)
by source, m

Direct, 1.3

ƒ 40% have no active adviser

ƒ Scaling back direct acquisition
Have IFA, 3.5
ƒ Re-directing advisory resource
No current
ƒ Generating leads from existing
advisor, 1.4 customers
ƒ Industrialise to match
opportunity

Partner
customers, 0.7

Capitalise on untapped value from our existing customers

13
Opportunity from our existing customer base

Aviva Life ~7m Customers

9% UK GI
Customers
Protection Investment
9m
33.2% 29.1%
1.9% • Cross product holdings low
• Realistic cross holding
Healthcare
1.6% <0.1% 0.4% <1% Customers opportunities
2.5m
• Via on-sell and up-sell
Pension 1.1% Annuity • Aviva UK-wide opportunity
23.1% 7.9%
RAC
4% Customers
9m

Capitalise on untapped revenue from our existing customers

14
 Opportunity from our unique Risk capability

Strong positions in key product sectors

Market share 2008
Underlying market growth
Annuities ƒ Annuity
ƒ WP annuity

WP Annuities ƒ Life cover - underprovided UK

Unrivalled capability
ƒ Mortality and morbidity
Protection
ƒ Asset / liability expertise
ƒ Cutting edge risk science
PMI
ƒ Combined understanding from
0% 5% 10% 15% 20%
Life, GI and healthcare
Protection Annuities

We will drive significant growth in our high margin Risk lines of business
Source: ABI. 15
 Opportunity from our momentum in Corporate sector

(1)
Aviva UK Life PVNBP £m
2,500
Momentum
2,000
• Proposition innovation
• Case and tender sizes up
1,500 • 82 schemes Q1
• BPA foothold
1,000
• Global brand
• Full wind down solutions
500
• Unrivalled combined
capability pensions, BPA
0
2005 2006 2007 2008 and healthcare
Corporate pensions BPA

Drive profitable growth in the Corporate sector

(1) Aviva UK Life PVNBP on an EEV basis 16

 Opportunity from our distribution reach post RDR

Advisers Today Advisers 2013 UK Life Strategy

High net worth
£500k + Independents Commercial focus
c. 10,000
Mass affluent IFA
£100k – £500k c. 21,000
Provision gap Grow in-house channel
Middle market
£30k – £100k
General Advisors
Tied / multi tied Leverage ‘One-to-many’
10,000
9,000 channels
Corporate
Bulk acquisition (eg BPA)
Mass market RBS JV
£0 – £30k Banks, direct Banks, direct Banks / building socs
15,000 19,000 Post Office
Other partners

We will shape our distribution portfolio for value and low cost of acquisition
17
 Opportunity for synergy from Aviva’s re-brand

What Does Norwich Union Do?

Insurance (home or motor insurance) 73%

Banking/ financial services 28%

Life insurance 10%

Mortgages 9%

Pensions 8%

Savings/ investments 6%

Equity release / Lifetime mortgage 2%

Transport/ travel 1%

Other 11%

Jan Mar Jul

We will seize re-brand opportunity to become the UK’s most recommended insurer
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 A strategy that delivers on economic realities

3 year outcome Metric

Back book value creation VIF per customer

Customer base value

MCEV margin
Margin and profitability
IFRS profit
Risk businesses
Brand

Growth above market % PVNBP growth

Corporate leadership
Own customers
Distribution control
added
Distribution portfolio
Capital efficiency Strain / PVNBP

2010 strategy will drive the same value outcomes as our 2006 focus

19
 Our strategic focus

Scale of customer
1. Capitalise on untapped value from existing customers
base opportunity

Unrivalled data and

2. Drive significant profitable growth in our Risk business
capability
Focussing
on our All round
distinctive 3. Drive significant profitable growth in Corporate sector proposition strength
customer
heartland
Distribution reach
4. Shape distribution portfolio for value & low cost acquisition
and flexibility

5. Seize opportunity to become most recommended insurer Global re-brand

We have clear strategic focus for 2010 - 2012

20
 Delivery, positioning and a clear way forward

Delivering our 2006 strategic promises

• Rationalise costs 9 • Develop the business 9
• Simplify the legacy 9 • Strong balance sheet 9
• Value out of service 9 • Capital efficiency 9
• Manage retention 9

Trading through the

Commercial mortgages
recession

Re-attribution of the
Brand re-launch
inherited estate

Scale of customer
1. Capitalise on untapped value from existing customers
base opportunity

Unrivalled data and

2. Drive significant profitable growth in our Risk business
capability
Focussing
on our All round
distinctive 3. Drive significant profitable growth in Corporate sector proposition strength
customer
heartland
Distribution reach
4. Shape distribution portfolio for value & low cost acquisition
and flexibility

5. Seize opportunity to become most recommended insurer Global re-brand

UK Life is in excellent shape – for now and the future

21
Agenda

• UK Life in excellent shape Mark Hodges, Chief Executive Officer

• Driving up profitability & generating capital John Lister, Finance Director

• Delivering operational excellence Toby Strauss, Chief Operating Officer

• Break and innovation demonstrations UK Life Management Team

• Strategic outlook Mark Hodges, Chief Executive Officer

• Strategic focus David Barral, Marketing Director

Questions & answers

Lunch

22
Questions & answers

Andrew Moss NUL18.11.08

Thank you and lunch

Andrew Moss NUL18.11.08

UK Life, Driving value through excellence
Investor and Analyst Event, Wednesday 6th May 2009

Andrew Moss NUL18.11.08