Aviva to enter Irish Health

Aviva PLC
07 April 2008









News release




7 April 2008



                  AVIVA TO ENTER IRISH HEALTH INSURANCE MARKET





•         Aviva to enter growing Irish health insurance market through
          acquisition of VIVAS Health

•         Added strength and breadth to its multi-line insurance group in
          Ireland

•         Strong growth potential through multi-channel distribution



Aviva plc ('Aviva') today announces that its insurance business in Ireland,
Hibernian Group ('Hibernian'), has agreed to acquire 70% of Irish health
insurance business VIVAS Group Ltd ('VIVAS Health').  Allied Irish Banks plc ('
AIB')* will continue to hold the remaining 30% equity, further strengthening AIB
and Hibernian's existing relationship.  The value of VIVAS Health's gross assets
at 31 December 2007 was €88.9 million** (£65.4 million#).



Following the completion of this deal Hibernian's operations will span general
insurance, life and pensions and health insurance.  The health insurance
products will be distributed through Hibernian and AIB's distribution channels,
and VIVAS Health's direct and non-direct channels.



VIVAS Health was established in 2004 and has approximately a 5%*** share of the
Irish private medical insurance market.  It has built a strong reputation as a
dynamic and innovative health insurance provider in the Irish market.



Stuart Purdy, CEO of Hibernian Group, comments: 'This acquisition brings us
significant growth potential by combining our distribution reach and brand
strength with the innovative and competitive VIVAS Health product range.  It
will position us as a provider of the full range of life, non-life and
healthcare products, strengthening our role as Ireland's leading multi-line
insurance group.'



Hibernian is the number one provider of general insurance in Ireland and is a
top three provider in the life and pensions market.  With approximately 1.2
million customers, Hibernian has been providing insurance products in Ireland
for 100 years.



AIB operates out of over 276 outlets in Ireland.  Hibernian currently
distributes life and pensions and motor business through AIB; and health
insurance distribution will further enhance the relationship.



The closing of the transaction, which is subject to regulatory approval, is
expected to take place in the first half of 2008.

                                     -ends-



* Allied Irish Banks Plc will continue to hold its 30% equity in VIVAS Health
through its subsidiary Allied Irish Banks (Holdings and Investments) Limited

** Unaudited Irish GAAP figures per the draft statutory financial statements as
at 31 December 2007

# At a 2007 closing exchange rate of 1.36 Euro/GBP

*** VIVAS Health is a growing business and this figure relates to the end of
2007



                               -          ends -



Enquiries:

Media

Danielle Anthony, senior group media relations manager      [phone]

James Murgatroyd/Ed Simpkins, Finsbury                      [phone]



Analysts

Charles Barrows, investor relations director                [phone]

Jessie Burrows, head of investor relations                  [phone]

Susie Yeoh, investor relations manager                      [phone]





Notes to editors:



•         Aviva, through Hibernian, will acquire 70% of VIVAS Health from
International Investment and Underwriting (IIU) and VIVA Health's management and
staff.

•         Hibernian is one of Ireland's largest and most successful financial
organisations with activities spanning general insurance, risk management,
pensions, life assurance and personal financial services.

•         Hibernian's full year results for the year ended 31 December 2007
produced an operating profit of €352.9m (2006: €188.9m).

•         Aviva is the leading provider 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
2006.

•         Aviva's principal business activities are long-term savings, fund
management and general insurance, with worldwide total sales of £49.2 billion
and funds under management of £364 billion at 31 December 2007.

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


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