Announcement

Aviva Newsroom - 18 November 2011

Aviva plc interim management statement for the nine months to 30 September 2011
03 November, 2011

Strong operating performance

Nine months 2011

Good momentum in general insurance	General insurance and health net written premiums of £7.0 billion, up 9%. Group combined operating ratio improved to 96%. UK general insurance sales up 12%: 318,000 new personal motor customers this year, now more than two million in total
Strong profitability in life insurance	New business internal rate of return increased to 14%. Long term savings sales of £23.6 billion, 8% lower, driven mainly by actions to write less capital-intensive business, but also due to current market conditions UK life and pension sales up 6% to £8.1 billion.
Focused on balance sheet in a tough economic environment	IFRS net asset value per share increased by 23 pence to 448 pence (HY2011: 425p). IGD solvency surplus £2.7 billion and central liquidity £2.3 billion at 30 September 2011. On track to meet net operational capital generation target of between £1.5 billion and £1.8 billion. Minimal impairment on our high-quality long-term asset portfolio. Strengthened equity and euro currency hedging providing additional downside protection.
Further delivery of our strategy in the third quarter	On course to meet our financial targets in 2011. Market share gains in key UK markets - in individual annuities, protection and personal motor*. Completed sale of RAC for £1.0 billion. Sale of Aviva Investors business in Australia. Sale of Delta Lloyd's loss-making German business.

*UK market share data is latest available information based on HY11.

All figures in this statement exclude Delta Lloyd except for net asset value, IGD solvency surplus and net operational capital generation. All comparatives are for the first nine months 2010 unless otherwise stated.

Andrew Moss, group chief executive, commented:
“Markets have been exceptionally volatile but we have delivered a strong operating performance in the first nine months and we remain on track to meet our financial targets this year. Focusing on capital generation and our capital and liquidity position will continue to be priorities.”

“Aviva is fitter and leaner today. Whilst the market environment is likely to remain challenging in the near term, we continue to make good strategic progress and are strengthening customer franchises in key markets, notably the UK.”

For full content of the media release, please visit: http://www.aviva.com/media/news/14215/

About Aviva plc
Aviva plc is the world's sixth-largest¹ insurance group, serving more than 44.5 million² customers across Europe, North America and Asia Pacific.

Our main business activities are long-term savings, fund management and general insurance, with worldwide total sales of £47.1 billion and funds under management of £402 billion at 31 December 2010.³

We are the largest insurance services provider in the UK and one of the leading providers of life and general insurance products in Europe.³

¹Based on gross worldwide premiums at 31 December 2010
²Source: www.aviva.com (as at October 2011)
³Source: Aviva plc Annual Report and Accounts 2010

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