DETAILS OF AVIVA'S EXPOSURE T

RNS Number : 5785D

Aviva PLC

16 September 2008

 

16 September 2008

AVIVA PROVIDES DETAILS OF ITS EXPOSURE TO LEHMAN BROTHERS 

As at close of business on 15 September 2008, the Aviva plc group ('Aviva') has minimal equity exposure to Lehman Brothers ('Lehmans') and has a total debt exposure of £270million (at face value). Most of Aviva's debt exposure is senior debt, but it also includes money market exposure and a small amount of credit default swaps exposure. Aviva expects the total loss from its holding in Lehmans debt to be substantially lower than its total face value exposure as a result of a number of factors including taxes and recoveries.

Aviva also has counterparty exposure to Lehmans through derivative contracts and securities lending transactions, and this exposure is collateralised. Aviva is in the process of unwinding the contracts and does not expect to incur any material writedown as a result of unwinding them.

Aviva continues to monitor developments in the market, and Aviva's risk management procedures and credit controls continue to ensure the group has a strong balance sheet and capital position.  

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Enquiries:

Media

Sue Winston, head of group media relations                              [phone]

Danielle Anthony, senior group media relations manager          [phone]

Vanessa Rhodes, 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 is the leading provider of life and pension products 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 2007. 

• Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of £49.2 billion at 31 December 2007 and funds under management of £359 billion at 30 June 2008. 

• The exposure to Lehmans set out in this announcement relates to Aviva shareholder funds. 

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

• For broadcast-standard video, please visit www.thenewsmarket.com/aviva.  

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