Delta Lloyd Health Merger

Aviva PLC
03 November 2006




News release

3 November 2006


AVIVA'S DUTCH SUBSIDIARY, DELTA LLOYD CONFIRMS MERGER OF HEALTH INSURANCE
OPERATIONS



Delta Lloyd, the Dutch subsidiary of Aviva plc ('Aviva') has today announced
that Agis Health Insurance, Menzis Health and Income and the health insurers of
Delta Lloyd Group - Delta Lloyd and OHRA Health, have reached an agreement on
their proposed merger. The agreement is subject to consultation and agreement
with the relevant regulators, shareholders, member councils and consultative
bodies.



The new health combination will operate under the name 'DAM Health Insurance
Group'. Customers of DAM Health Insurance Group will remain insured through the
existing brands of Menzis (including Confior, Anderzorg, Ardyn en Prove), Agis
(including Prolife), OHRA and Delta Lloyd.



Delta Lloyd has acquired a 31% stake in DAM Health Insurance Group, in exchange
for its healthcare businesses, which had net assets of £180 million as at 30
June 2006.  The stakes of each party have been determined by reference to the
intrinsic value of each business, on a consistent basis of calculation between
the three merger partners and at no premium.  In addition, Delta Lloyd will gain
the exclusive rights to cross sell life and general insurance to the customers
of DAM Health Insurance Group, and provide asset management services.



Comprising all activities in the field of health insurance, additional health
insurance and exceptional health costs insurance (AWBZ), the combination will
give rise to one of the leading health insurers in the Netherlands with 4
million customers and a 25% market share.



Market outlook

The main considerations underlying the decision to merge these health insurance
operations are:

•         To jointly create a socially committed, competitive, innovative,
financially solid and healthy company that is strongly placed in terms of both
market position and size;

•         To improve the management of claims and realise cost savings,
specifically on the purchasing side, and to achieve a more streamlined internal
organisation;

•         To establish a health insurer on a national scale by combining the
parties' complementary geographical strengths;

•         To reinforce the distribution network by using direct, intermediary
and bancassurance networks.



The new health insurer believes there will be competitive advantages in
providing access to high quality healthcare and good service at a competitive
cost. The group will consequently invest in innovation and product development
and aims to play a leading role in the debate on healthcare.



DAM Health Insurance Group and Delta Lloyd Group have made exclusive
arrangements on cross-selling and distribution. Delta Lloyd Group will
exclusively sell the health insurance services of the new combination via its
distribution channels and will also be given the opportunity to offer general
and life insurance services to the customers of DAM Health Insurance Group.
Furthermore, Delta Lloyd Group will provide the asset management services for
the new combination.



Future organisation

The three health insurers will present proposals for the implementation of the
merger to their works councils and member councils or shareholders. The NMA (the
Netherlands Competition Authority) already announced on 10 October that it had
no objection to the proposed merger.



The new joint venture is expected to be in place on 2 January 2007 and control
of the joint venture will transfer to the new executive board shortly
afterwards.



                                    - 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 both 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 and
assets under management of £322 billion at 31 December 2005.






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