Aviva signs MOU in Turkey

Aviva PLC
21 March 2007




News release



21 March 2007



              AVIVA SIGNS MEMORANDUM OF UNDERSTANDING IN TURKEY

Aviva, Aksigorta and Akbank sign memorandum of understanding to form a leading
Turkish life and pensions business and establish a bancassurance agreement with
Akbank.



Aviva plc ('Aviva') is pleased to announce that it has signed a Memorandum of
Understanding ('MOU') with Aksigorta A.S. ('Aksigorta') and Akbank T.A.S. ('
Akbank') to form a new, leading Turkish life and pensions business.  In the
proposed transaction Aviva's Turkish life and pensions business, Aviva Hayat ve
Emeklilik A.S. ('Aviva HE'), would be merged with Aksigorta's life and pensions
business, Ak Emeklilik A.S. ('Ak E').



Aviva and Aksigorta would hold equal shareholdings in, and would jointly manage,
the new company, which would benefit from a long-term and exclusive agreement to
offer life insurance and pension products to Akbank's 5.9 million retail
customers through its 687 branches.



This transaction would bring together Aviva HE's leading direct sales force
business, and Ak E's leading position in bancassurance.  The new company would
be a leader in Turkey, with the number one position in pensions and the number
two position in life insurance.



Aviva has high expectations for the further development of the Turkish life and
pensions market.  The combination of Turkey's current low insurance penetration
rates and the potential for strong economic growth are expected to create
attractive opportunities for profitable growth.



Tidjane Thiam, chief executive, Aviva Europe, said: 'I am delighted we have
reached this agreement with Aksigorta and Akbank - Aviva is committed to
developing its business in Turkey and this merger will bring attractive growth
opportunities.  By coming together, Aviva, Aksigorta and Akbank would create a
clear leader with unique multi-channel capabilities in one of the most
attractive life and pensions markets.  Aviva will be able to leverage its
international bancassurance capabilities to assist in the successful development
of the business.'



Akin Kozanoglu, chairman of Aksigorta and president of Sabanci Holding Financial
Services Group, said: 'We are very glad that our search for a strategic
partnership has concluded with the selection of Aviva, a globally distinguished
company.  The combination of our and Aviva's operations in Turkey will create a
leading life and pensions company in Turkey.  I believe that this partnership,
where 2+2=5, exemplifies Sabanci Holding's value creation philosophy.  The new
company which will be established after the merger will fully utilise Aviva's
global know-how and Sabanci Group's local expertise.'



Aviva, Aksigorta and Akbank have entered into exclusive discussions with a view
to announcing the signing of definitive documentation later this year.
Completion of the transaction would be subject to regulatory and other
approvals.



                                     -ends-





Enquiries:


Media
Hayley Stimpson, director of external affairs [phone]
Sue Winston, head of group media relations [phone]
Vanessa Rhodes, group media relations manager [phone]



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



Notes to editors:



Aviva

•                         Aviva is one of the leading providers of life and
pensions in 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
£41.5 billion and assets under management of £364 billion at 31 December 2006

•                         Aviva's Turkish life and pensions business, Aviva HE,
had pension assets under management of £106 million at 31 December 2006 and life
gross written premiums of £49 million in 2006



Aksigorta

•                         Aksigorta is Turkey's 4th largest non-life insurer by
market share based on premiums of £241 million in 2006

•                         Haci Omer Sabanci Holding A.S., one of Turkey's
leading financial and industrial conglomerates, owns approximately 62% of
Aksigorta

•                         Aksigorta's life insurance and pensions subsidiary, Ak
Emeklilik, had pension assets under management of £145 million at 31 December
2006 and life gross written premiums of £23 million in  2006



Akbank

•                         Akbank is Turkey's largest company by market
capitalisation and its most profitable private bank.  Akbank offers a wide range
of retail, commercial, corporate and private banking services.  Akbank has an
extensive distribution network including 687 branches and alternative delivery
channels.

•                         Haci Omer Sabanci Holding A.S. and its subsidiaries
own approximately 39% of Akbank. In January 2007, Citigroup acquired a 20% stake
in Akbank for $3.1 billion



Other

•                         This agreement does not include Aviva Sigorta A.S.,
Aviva's non-life business in Turkey or Aksigorta's non-life operations.

•                         Market positions for the new company were based on
31.12.06 data provided by:

o       The Pensions Monitoring Centre (Turkey) for pensions (assets under
management)

o       The Association of Insurance and Reinsurance Companies of Turkey for
life business (gross written premiums)


                      This information is provided by RNS
            The company news service from the London Stock Exchange