AmerUs acquisition completion

Aviva PLC
15 November 2006



News release


15 November 2006



               AVIVA ANNOUNCES COMPLETION OF ACQUISITION OF AMERUS



Aviva plc ('Aviva') announces the completion of its acquisition of AmerUs Group
Co. ('AmerUs') following receipt of the required regulatory approvals in the
United States.



Aviva announced the proposed acquisition of AmerUs on 13 July 2006 in a
transaction recommended by the board of AmerUs for a price of $69 for each
ordinary share, valuing the company at approximately $3.1 billion (£1.7
billion).(1) The acquisition was financed by a £900 million equity placing,
internal resources and external debt.  AmerUs shareholders approved the
transaction on 19 October 2006.



The acquisition of AmerUs transforms Aviva's US business, making it the
fourth-largest long-term savings business in the Aviva group and establishing a
leading position for Aviva in a high-growth segment of the world's largest
savings market.  AmerUs is a leader in the US indexed market, ranking number one
in sales of indexed life insurance and third in sales of indexed annuities.



Aviva anticipates annual pre-tax cost savings of approximately $45 million
before tax by 2008.  Significant revenue benefits will also be realised from the
broader combined distribution platform and the superior financial strength
ratings of Aviva.  It is expected that the transaction will be accretive to
Group IFRS and EEV operating earnings per share by 2007 and 2008 respectively
and to have an annual post-tax return on investment of over 10% by 2009.



Thomas Godlasky, former CEO, AmerUs, becomes CEO of the combined business with
immediate effect.  Philip Easter, currently finance director of Aviva's UK
general insurance business, will become chief financial officer with effect from
1 January 2007, subject to US regulatory approval. Philip Easter will replace
Melinda Urion who will leave the business on 15 December 2006.  The combined
business will be called Aviva.



Philip Scott, executive director, Aviva International, said: 'Our acquisition of
AmerUs gives us a leading position within an important segment of the world's
largest long-term savings market.  In a single step this provides a platform for
significant profitable growth in the US while becoming the fourth-largest life
business in the Aviva group.  Integration planning of our existing US business
into AmerUs is well-advanced and integration will begin immediately.'



(1) Based on a fully diluted share count of 44.9 million as at 15 November 2006.

                                    - ends -



Enquiries:

Media
Hayley Stimpson, director of external affairs               [phone]
Vanessa Booth, group media relations manager                [phone]

Analysts
Charles Barrows, investor relations director               [phone]
Jessie Burrows, head of investor relations                 [phone]





Notes to editors:



•         Aviva is one of the leading providers of life and pensions to Europe
with substantial positions in other markets around the world, making it the
world's fifth largest insurance group based on gross worldwide premiums at 31
December 2005.



•         Aviva's principal business activities are long-term savings, fund
management and general insurance, with worldwide total sales of £36 billion ($65
billion) and assets under management of £322 billion ($552 billion) at 31
December 2005.



•         The Aviva media centre at www.aviva.com/media includes images, company
and product information and a news release archive.




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