HY Results 2008 Part 4 of 4

RNS Number : 1660A

Aviva PLC

30 July 2008

 



Part 4 of 4 

Page 89 

Appendices

Contents

Appendix A - Group Capital Structure                                                  90

A1 - Capital employed by segment                                                      90

A2 - Deployment of equity shareholders' funds                                 91

A3 - Sensitivity Analysis                                                                          92

A4 - Shareholders' funds, including minority interest                       93

A5 - Analysis of return on capital employed                                        94

Appendix B - Cost Savings                                                                     96

Appendix C - Analysis of Assets                                                            97

C1 - Key highlights                                                                                   97

C2 - Introduction                                                                                       97

C3 - Total assets - Shareholder Policyholder exposure to risk      98

C4 - Total assets - Valuation bases/fair value hierarchy                 99

C5 - Loans                                                                                              101

C6 - Debt securities                                                                              103

C7 - Pension fund assets                                                                    107

C8 - Available funds                                                                              107

Page 90

Appendix A - Group Capital Structure

The Group maintains an efficient capital structure financed by a combination of equity shareholders' funds, preference capital, subordinated debt and borrowings, consistent with the Group's risk profile and the regulatory and market requirements of its business. The Group's capital structure, analysed on an EEV basis, is set out below.

A1 - Capital employed by segment

	30 June  2008 £m	31 December  2007 £m
Long-term savings	22,900	23,272
General insurance and health	5,212	5,487
Other business including fund management	684	1,056
Corporate1	(32)	(31)
Total capital employed	28,764	29,784
Financed by
Equity shareholders' funds	18,672	20,253
Minority interests	3,385	3,131
Direct capital instrument	990	990
Preference shares	200	200
Subordinated debt	3,911	3,054
External debt	721	1,257
Net internal debt	885	899
	28,764	29,784

1.    The 'Corporate' net liabilities represent the element of the pension scheme deficit held centrally.

At 30 June 2008 the Group had £28.8 billion (31 December 2007: £29.8 billion) of total capital employed in its trading operations, measured on an EEV basis. 

Total capital employed is financed by a combination of equity shareholders' funds, preference capital, subordinated debt and borrowings. In addition to our external funding sources, we have certain internal borrowing arrangements in place which allow some of the assets that support technical liabilities to be invested in a pool of central assets for use across the Group. These internal debt balances allow for the capital allocated to business operations to exceed the externally sourced capital resources of the Group. Although intra-group in nature, they are included as part of the capital base for the purpose of capital management. These arrangements arise in relation to the following:

Certain subsidiaries, subject to continuing to satisfy standalone capital and liquidity requirements, loan funds to corporate and holding entities, these loans satisfy arms length criteria and all interest payments are made when due. 

Aviva International Insurance (AII) Ltd acts as both a UK general insurer and as the primary holding company for the Group's foreign subsidiaries. Internal capital management mechanisms in place allocate a portion of the total capital of the company to the UK general insurance operations. These mechanisms also allow for some of the assets backing technical liabilities to be made available for use across the Group. Balances in respect of these arrangements are also treated as internal debt for capital management purposes.

Net internal debt represents the balance of the above amounts due from corporate and holding entities, less the tangible net assets held by these entities. 

On 13 May 2008 the Group issued £0.8bn equivalent of Lower Tier 2 hybrid in a dual-tranche transaction (£400m and €500m). £0.6bn of the proceeds was used to repay short-term Commercial Paper borrowings. This transaction had a positive impact on Group IGD Solvency and Economic capital measures.

Financial leverage, the ratio of the Group's external senior and subordinated debt to EEV capital and reserves was 20% (31 December 2007: 17%). Fixed charge cover, which measures the extent to which external interest costs, including subordinated debt interest and preference dividends, are covered by EEV operating profit was 11.8 times (31 December 2007: 9.8 times).

At 30 June 2008 the market value of the group's external debt, subordinate debt, preference shares, including both the Aviva plc preference shares and the General Accident plc preference shares of £250 million, within minority interest, and direct capital instrument was £5,753 million (31 December 2007: £5,774 million), with a weighted average cost of 4.7% (31 December 2007: 4.2%). The group WACC is 7.5% and has been calculated by reference to the cost of equity and the cost of debt at the relevant date. The cost of equity at 30 June 2008 was 8.6% based on a risk free rate of 5.1%, an equity risk premium of 3% and a market beta of 1.2. 

Page 91 

A2 - Deployment of equity shareholders' funds

In order to better reflect the risk to shareholder funds the following table 'looks through' unitised investments which are classified as 'other' within the IFRS balance sheet and makes adjustments for minority holdings that are fully consolidated on the balance sheet. In addition, we have explicitly shown the market risks within the staff pension schemes.

	30 June  2008						Restated 31 December 2007
	Equities  £m	Property  £m	Cash, Loans & Debt securities  £m	Other Invest-ments  £m	Other net  assets  £m	Total  £m	Total  £m
Total assets included in the statutory  IFRS balance sheet	48,517	15,664	180,346	38,476	44,787	327,790	320,841
Goodwill1					(3,265)	(3,265)	(3,299)
Acquired value of in-force business and intangible assets					(3,170)	(3,170)	(3,197)
Liabilities of the long-term, general &  other businesses	(42,377)	(12,391)	(172,062)	(33,997)	(51,546)	(312,373)	(304,249)
Pension fund deficit					515	515	178
Debt					5,517	5,517	5,210
Liabilities of the long-term, General & other businesses excluding pension fund deficit  and debt	(42,377)	(12,391)	(172,062)	(33,997)	(45,514)	(306,341)	(298,861)
Minorities and other investments reclassification2	(30)	102	(680)	(3,050)	3,658	-	-
Shareholder funds	6,110	3,375	7,604	1,429	(3,504)	15,014	15,484
Pension fund	4,407	583	3,592	994	(10,091)	(515)	(178)
Adjusted shareholder funds	10,517	3,958	11,196	2,423	(13,595)	14,499	15,306
Goodwill1						3,265	3,299
Additional and acquired value of in-force  long-term business and intangible assets						11,000	11,179
Assets backing total capital employed  in continuing operations						28,764	29,784
External debt						(721)	(1,257)
Net internal debt3						(885)	(899)
Subordinated debt						(3,911)	(3,054)
						23,247	24,574
Minority interests						(3,385)	(3,131)
Direct capital instrument						(990)	(990)
Performance capital						(200)	(200)
Equity shareholders' funds						18,672	20,253

Notes:

1.    Includes goodwill relating to the joint venture with the Royal Bank of Scotland Group.

2.    Minority and other investments reclassification represent the reallocation of unit trusts to their constituent parts net of net asset value attributable to unitholders.

3.    Net internal debt represents the upstream of internal loans from business operations to corporate and holding entities net of tangible assets held by those entities.

Page 92

A3 - Sensitivity Analysis

The sensitivity of the Group's shareholders' funds on an EEV basis at 30 June 2008 to a 10% fall in global equity markets or a rise of 1% in global interest rates is as follows:

31 December  2007 £bn		30 June  2008 £bn	Equities down 10%		Interest rates up 1% £bn
			Direct £bn	Indirect £bn
23.3	Long-term savings1	22.9	(0.4)	(0.5)	(0.9)
6.5	General insurance and other	5.8	(0.4)	-	(0.3)
(5.2)	Borrowings	(5.5)	-	-	-
24.6	Shareholders' funds	23.2	(0.8)	(0.5)	(1.2)

These sensitivities assume a full tax charge/credit on market value assumptions.

1.    Assumes EEV assumptions adjusted to reflect revised bond yields.

2.    Comprising internal, external and subordinated debt, net of corporate tangible net assets.

The table above incorporates the effect on the value of the pension scheme assets of a 10% decrease in equity and a 1% increase in fixed income bond yields. The latter sensitivity also assumes an equivalent movement in both inflation and discount rate (i.e. no change to real interest rates) and therefore, incorporates the offsetting effects of these items on the pension scheme liabilities. A 1% increase in the real interest rate only has the effect of reducing the pension scheme liability by £1.5 billion thereby enhancing shareholders' funds by £1.2 billion (after deducting tax).

Group IGD 

The sensitivity of the Group's IGD surplus reflects the impact of the hedges we have put in place as part of our long-term strategy to protect the group from extreme market movements. At 30 June 2008 the sensitivity to a 10% fall in global equity markets or a rise of 1% in global interest rates is as follows:

	30 June  2008  £bn	Equities down 10%  £bn	Interest rates up 1%  £bn
IGD Group surplus	1.8	(0.4)	(0.6)

Since the period end we have put in place further protection. The sensitivity of the group's IGD surplus to further falls in the global equity market is as follow:

		£bn
Equities down 10%		(0.4)
Equities down 20%		(0.7)
Equities down 30%		(1.0)
Equities down 40%		(1.3)

Risk management - Equity hedges

Our risk management processes ensure close and on-going monitoring of all our capital measures. The following table shows the material equity derivatives within the Group's shareholder funds at 30 June 2008 that are used as part of a long-term strategy to manage equity risk. It excludes derivatives used for portfolio management purposes:

Derivative	Notional   £bn1	Market fall below  protection  level2,4	Market fall    required    before    protection    starts3,4	Outstanding Duration
(a)	0.6	8%	-	3 months
(b)	1.4	-	28%	9-13 months
(c)	0.4	1%	-	9-21 months

Notes:

1.    The notional amount represents the market value as at 30 June 2008 of the equities covered by the hedge.

2.    The 'Market fall below protection level' shows the percentage the market has fallen below the protection level as at 30 June 2008. Both derivative (a) and (c) are therefore in the money at this date.

3.    The 'Market fall required before protection starts' shows the percentage the market would have to fall from the 30 June 2008 positions before the derivative moves into the money.

4.    The strike prices used in these calculations exclude the effect of dividends.

Page 93 

A4 - Shareholders' funds, including minority interest

	Note	30 June 2008  Closing shareholders funds			31 December 2007  Closing shareholders funds
		IFRS net assets  £m	Internally generated AVIF  £m	Total  equity  £m	IFRS net  assets  £m	Internally generated AVIF  £m	Total  equity  £m
Life assurance	1,2
United Kingdom		4,402	3,158	7,560	4,428	3,680	8,108
France		1,504	1,098	2,602	1,447	1,214	2,661
Ireland		988	195	1,183	943	195	1,138
Italy		1,171	229	1,400	1,020	204	1,224
Netherlands (including Belgium  and Germany)		2,464	1,252	3,716	2,994	1,152	4,146
Poland		253	767	1,020	276	671	947
Spain		1,168	764	1,932	1,122	630	1,752
Other Europe		494	(200)	294	346	(90)	256
Europe		8,042	4,105	12,147	8,148	3,976	12,124
North America		2,112	376	2,488	2,202	154	2,356
Asia Pacific		514	191	705	512	172	684
		15,070	7,830	22,900	15,290	7,982	23,272
General insurance and health	1,2
United Kingdom		2,664	-	2,664	2,960	-	2,960
France		274	-	274	301	-	301
Ireland		461	-	461	423	-	423
Netherlands		723	-	723	756	-	756
Other Europe		308	-	308	295	-	295
Europe		1,766	-	1,766	1,775	-	1,775
North America		765	-	765	726	-	726
Asia Pacific		17	-	17	26	-	26
		5,212	-	5,212	5,487	-	5,487
Other business	1,2	684	-	684	1,056	-	1,056
Corporate		(32)	-	(32)	(31)	-	(31)
External debt		(721)	-	(721)	(1,257)	-	(1,257)
Internal debt		(885)	-	(885)	(899)	-	(899)
Subordinated debt		(3,911)	-	(3,911)	(3,054)	-	(3,054)
		(4,865)	-	(4,865)	(4,185)	-	(4,185)
Shareholders' funds, including minority interests		15,417	7,830	23,247	16,592	7,982	24,574
Comprising:
Equities		10,517	-	10,517	11,741	-	11,741
Property		3,958	-	3,958	4,644	-	4,644
Cash, loans and debt securities		11,196	-	11,196	11,986	-	11,986
Other investments		2,423	-	2,423	1,865	-	1,865
Other net assets and pension liability		(13,595)	-	(13,595)	(14,930)	-	(14,930)
Intangible assets	3	6,435	7,830	14,265	6,496	7,982	14,478
Borrowings		(5,517)	-	(5,517)	(5,210)	-	(5,210)
Shareholders' funds, including minority interests		15,417	7,830	23,247	16,592	7,982	24,574

Notes

IFRS net assets shown above include the allocation of tax assets and liabilities and hence differ from segmental net assets disclosed on pages 76 and 78.

1.    Goodwill of £3,265 million (31 December 2007: £3,299 million) has been allocated as follows: life assurance £1,702 million (31 December 2007: £1,631 million); general insurance and health £448 million (31 December 2007: £418 million); other businesses £1,115 million (31 December 2007: £1,250 million).

2.    Intangibles of £1,077 million (31 December 2007: £1,191 million) have been allocated as follows: life assurance £633 million (31 December 2007: £622 million); general insurance and health £370 million (31 December 2007: £424 million); other businesses £74 million (31 December 2007: £145 million).

3.    Total intangible assets of £14,265 million (31 December 2007: £14,478 million) comprise goodwill of £3,265 million (31 December 2007: £3,299 million); acquired value of in-force long-term business and intangibles of £3,170 million (31 December 2007: £3,197 million) and additional value of in-force long-term business of £7,830 million (31 December 2007: £7,982 million). The associated deferred tax liability on the intangibles of £871 million (31 December 2007: £811 million) is included within other net assets.

4.    The post-tax pension fund deficit of £498 million (31 December 2007: £157 million) has been allocated as follows: life operations £122 million (31 December 2007: £58 million), general insurance and health: £220 million (31 December 2007: £66 million), other business £124 million (31 December 2007: £2 million) and corporate of £32 million (31 December 2007: £31 million).

Page 94 

A5 - Analysis of return on capital employed

For the six months ended 30 June 2008

	Operating return1		Opening shareholders' funds including minority interests £m	Annualised return on capital %
	Before tax  £m	After tax  £m
Life assurance
United Kingdom	471	339	8,108	8.4%
France	297	195	2,661	14.7%
Ireland	30	26	1,138	4.6%
Italy	89	60	1,224	9.8%
Netherlands (including Belgium and Germany)	139	103	4,146	5.0%
Poland	103	84	947	17.7%
Spain	157	110	1,752	12.6%
Other Europe	8	6	256	4.7%
Europe	823	584	12,124	9.6%
North America	139	90	2,356	7.6%
Asia Pacific	47	35	684	10.2%
	1,480	1,048	23,272	9.0%
General insurance and health
United Kingdom	282	198	2,960	13.4%
France	30	19	301	12.6%
Ireland	41	36	423	17.0%
Netherlands	44	32	756	8.5%
Other Europe	22	15	295	10.2%
Europe	137	102	1,775	11.5%
North America	76	49	726	13.5%
Asia Pacific	(1)	(1)	26	(7.7)%
	494	348	5,487	12.7%
Fund management	30	21	355	11.8%
Other business	(57)	(40)	701	(11.4)%
Corporate	(49)	(54)	(31)	348.4%
External debt	(34)	(24)	(1,257)	3.8%
Net internal debt2	(51)	(36)	(899)	8.0%
Subordinated debt	(94)	(67)	(3,054)	4.4%
	1,719	1,196	24,574	9.7%
Less:
Minority interests		(149)	(3,131)	9.6%
Direct capital instrument		-	(990)	-
Preference capital		(9)	(200)	8.6%
Return on equity shareholders' funds		1,038	20,253	10.3%

Notes

1.    The operating return is based upon Group EEV operating profit, which is stated before impairment of goodwill, amortisation of intangibles, exceptional items, investment variances and tax including policyholder tax.

2.    The net internal debt return loss before tax of £51 million comprises investment return of £44 million offset by Group internal debt costs and other interest of £95 million.

Page 95 

A5 - Analysis of return on capital employed continued

For the year ended 31 December 2007

	Operating return1		Opening shareholders' funds including minority interests £m	Return on capital %
	Before tax  £m	After tax   £m
Life assurance
United Kingdom	864	605	7,160	8.4%
France	537	351	2,291	15.3%
Ireland	77	67	1,019	6.6%
Italy	137	85	803	10.6%
Netherlands (including Belgium and Germany)	352	261	3,837	6.8%
Poland	206	167	719	23.2%
Spain	239	167	1,375	12.1%
Other Europe	(5)	-	106	-
Europe	1,543	1,098	10,150	10.8%
North America	255	165	2,288	7.2%
Asia Pacific	91	68	496	13.7%
	2,753	1,936	20,094	9.6%
General insurance and health
United Kingdom	306	214	2,887	7.4%
France	70	45	333	13.5%
Ireland	162	142	423	33.6%
Netherlands	169	123	684	18.0%
Other Europe	41	29	161	18.0%
Europe	442	339	1,601	21.2%
North America	154	100	666	15.0%
Asia Pacific	4	3	22	13.6%
	906	656	5,176	12.7%
Fund management	90	63	305	20.7%
Other business	(70)	(49)	754	(6.5)%
Corporate	(82)	(95)	(19)	500.0%
External debt	(79)	(55)	(1,258)	4.4%
Net internal debt2	(53)	(37)	(1,257)	2.9%
Subordinated debt	(179)	(125)	(2,937)	4.3%
	3,286	2,294	20,858	11.0%
Less:
Minority interests		(259)	(2,137)	12.1%
Direct capital instrument		(37)	(990)	3.7%
Preference capital		(17)	(200)	8.5%
Return on equity shareholders' funds		1,981	17,531	11.3%

Notes

1.    The operating return is based upon Group EEV operating profit, which is stated before impairment of goodwill, amortisation of intangibles, exceptional items, investment variances and tax including policyholder tax.

2.    The net internal debt return loss before tax of £53 million comprises investment return of £127 million and Group internal debt costs and other interest of £180 million.

Page 96

Appendix B - Cost Savings

Cost savings commitments for targets announced since October 2007

This note provides details of the group's published commitments to deliver cost savings, and represents an interim update on the information provided at full year 2007. As part of the full year 2008 results, the table will be further updated, and accompanied by the movement analysis of the operating cost base as disclosed at full year 2007.

Movement in Cost Savings target (recurring, annualised savings)	Cost Savings targets b/fwd £m	New targets announced in year £m	Less: Cost savings achieved £m	Savings now to be delivered in future years £m	Savings over/ (under) delivered £m	Impact of economic changes on targets c/fwd £m	Cost Savings targets c/fwd £m
Savings expected to be  achieved in:
Six months ended 30 June 2008	211	-	(211)	-	-	-	-
Six months ended 31 December 2008	79	11	-	(10)	-	-	80
Year ended 31 December 2009	60	78	-	10	-	-	148
Year ended 31 December 2010	-	61	-	-	-	-	61
	350	150	(211)	-	-	-	289
Savings achieved in prior years:	-
Total	350

Targets bought forward include £200 million for Norwich Union Insurance, £100 million for Norwich Union Life and £50 million for Europe. The new target announced in the current year reflects £150 million for Norwich Union Insurance.

Movement in initial costs to deliver Cost Savings targets  (total expenses incurred)	Costs to deliver b/fwd £m	Cost of delivery of new targets in year £m	Less: Costs incurred in year £m	Costs now to be incurred in future years £m	Increase/ (decrease) in costs of delivery £m	Impact of economic changes on targets c/fwd £m	Costs to deliver c/fwd £m
Costs expected to be incurred in:
Six months ended 30 June 2008	38	83	(121)	-	-	-	-
Six months ended 31 December 2008	140	112	-	(12)	-	-	240
Year ended 31 December 2009	70	85	-	4	-	-	159
Year ended 31 December 2010	-	10	-	8	-	-	18
	248	290	(121)	-	-	-	417
Costs incurred in prior years:	82
Total	330

All £121 million of costs incurred in the year were classified as restructuring costs in the Income Statement.

1.     Cost savings initiatives included in this note are supported by detailed operational implementation plans, which identify the activities, timeframe and expected costs of delivering the planned initiatives.

2.     Cost savings targets brought forward represent commitments made in prior years that are due to be delivered in 2008 or future years. In this interim update, all Cost savings targets are measured at the value of the relevant recurring costs in the year ended 31 December 2007. 

3.    Cost savings 'achieved' are the annualised, recurring costs eliminated for the six months ended 30 June 2008, measured at the value of the relevant costs for the year ended 31 December 2007. 

4.    Cost savings 'recognised' are the actual cost savings recognised in the Income Statement for the year and, for EEV reporting, excludes the benefit of any reduction in related unit cost assumptions. The timing of the recognition of savings in the Income Statement may be later than when the annualised saving is reported as achieved.

5.    Initial costs to deliver Cost Savings targets' are the total one-off, initial costs that will be required to complete and deliver announced cost savings programmes. They are measured at the real value of the initial costs expected to be incurred.

Page 97 

Appendix C - Analysis of Assets

C1 - Key highlights

• The quality of Aviva's balance sheet asset base continues to be strong, despite challenging economic and market conditions.
• Balance sheet assets have been appropriately valued with 82% of assets (including 100% of financial investments) measured at fair value.
• Except for tax asset and interests  in joint ventures and associates (which are equity accounted) the remaining assets are recognised at cost/amortised cost and tested for impairment.
• The principle asset classes are Debt Securities (£124 billion), Equities (£49 billion), Other Financial Investments (£38 billion) and Loans (£37 billion).
• The majority (94%) of debt securities are investment grade (with 1% below investment grade and 5% not rated).
• The Group has very limited exposure to Sub-prime RMBS/ABS, Alt A, Wrapped Credit, CDO's and CLO's; with these investments representing less than 0.5% of total balance sheet assets.
• Of the group's total asset base of £325 billion analysed in this disclosure, shareholders are only directly exposed to market and credit risk on £122 billion. 
• Of this, £44 billion (36%) are debt securities, 90% of which are investment grade.
• Only 7% of shareholder assets are held in equities and other financial investments - equities and other financial investments are principally held to back Policyholder liabilities (in unit linked and participating funds) and as such reflect policyholder investment mandates.
• £28 billion of shareholder assets are loans. 
• £7.8 billion of these loans are secured through non-recourse borrowings in our UK Life and Dutch business whereby the risk is passed to the note holders.
• 78% of non-securitised mortgages are commercial loans rather than residential mortgages; which are typically held to back annuity liabilities.
• All our USA loan portfolio is commercial loans.
• The Group's Loan portfolio continues to perform well with 99% of the portfolio neither past due nor impaired. However, the fall in property values has led to a deterioration in loan to value (LTV) ratios so that now £890 million loans have an LTV greater than 100% with an 'at risk' element of £47 million.

C2 - Introduction

With the continued volatility and uncertainty in the credit and equity markets, we are again presenting extensive and transparent disclosure of the quality of the assets recognised on the Group's balance sheet.

This disclosure evidences the quality of the Aviva Group's balance sheet assets by providing:

an analysis of assets to reflect whether the shareholder or policyholder ultimately bears the underlying credit and market risk;

details of the valuation bases used, specifically showing the portion of balance sheet assets carried at fair value thereby reflecting the full impact of changes in market conditions;

a breakdown of debt securities held by product type and credit ratings to demonstrate the risk exposure associated with these investments; and,

details of the exposure to mortgage loans with loan to value and arrears information.

  Page 98

C3 - Total assets - Shareholder/Policyholder exposure to risk

Within this disclosure, the Group's total assets have been segmented based on where the market and credit risks are held, according to the following guidelines.

Policyholder Assets

The Group writes unit-linked business in a number of long-term business operations. In unit-linked business, the policyholder bears the investment risk on the assets in the unit-linked funds, as the policy benefits are directly linked to the value of the assets in the funds. These assets are managed according to the investment mandates of the funds which are consistent with the expectations of the policyholders. By definition, there is a precise match between the investment assets and the policyholder liabilities, and so the market risk and credit risk lie with policyholders. The shareholders' exposure on this business is limited to the extent that income arising from asset management charges is based on the value of assets in the funds.

Participating Fund Assets

Some insurance and investment contracts in our long-term businesses contain a discretionary participating feature, which is a contractual right to receive additional benefits as a supplement to guaranteed benefits. These are referred to as participating contracts. The market risk and credit risk in relation to assets held within Participating Funds (including 'with-profit' funds) are shared between policyholders and shareholders in differing proportions. In general, the risks and rewards of participating funds rest primarily with the policyholders.

The assets within Participating Funds cover liabilities for participating insurance contracts and participating investment contracts in addition to other liabilities within the participating funds.

Shareholder Assets

Assets held within long-term businesses that are not backing unit-linked liabilities or participating funds, directly expose the Shareholders of Aviva plc to market and credit risks. Likewise, assets held within General Insurance & Health, Fund Management and non-insurance businesses also expose our shareholders to market and credit risks. The Group has established comprehensive risk management policies to monitor and mitigate these risks.

	Policyholder assets  £m	Participating fund assets  £m	Shareholder assets  £m	Total assets analysed  £m	Less assets of operations classified as held for sale  £m	Swiss Life Belgium operations £m	Balance sheet total  £m
Assets
Goodwill and Acquired value of in-force business and intangible assets	-	-	6,423	6,423	(260)	55	6,218
Interests in joint ventures and associates	557	1,865	1,377	3,799	-	-	3,799
Property and equipment	47	95	864	1,006	(15)	5	996
Investment property	4,985	6,768	2,915	14,668	-	-	14,668
Loans	106	8,957	28,324	37,387	-	-	37,387
Financial investments
Debt securities	16,951	64,169	44,240	125,360	(3,405)	2,221	124,176
Equity securities	25,591	18,896	5,418	49,905	(1,518)	130	48,517
Other investments	23,932	12,106	2,551	38,589	(134)	21	38,476
Reinsurance assets	1,876	709	5,752	8,337	(17)	7	8,327
Deferred tax assets	-	-	249	249	-	-	249
Current tax assets	-	-	543	543	(9)	-	534
Receivables and other financial assets	828	2,711	7,752	11,291	(570)	39	10,760
Deferred acquisition costs and other assets	130	293	4,607	5,030	(57)	101	5,074
Prepayments and accrued income	181	1,434	1,770	3,385	(247)	45	3,183
Cash and cash equivalents	4,978	5,325	8,914	19,217	(411)	(23)	18,783
Assets of operations classified as held for sale	-	-	-	-	6,643	-	6,643
Total assets	80,162	123,328	121,699	325,189	-	2,601	327,790
	24.7%	37.9%	37.4%

As can be seen from the table above, 37% of assets can be directly attributed to shareholder assets where the apportionment of assets is predominantly weighted towards debt securities and loans. In comparison equities, investment property and other investments (e.g. unit trusts) are weighted more towards policyholder and participating assets, reflecting the underlying policyholder investment mandates.

Note, the remainder of this disclosure is prepared based on gross assets prior to the adjustment for assets of operations classified as held for sale and excludes the assets consolidated following the acquisition of Swiss Life Belgium on 30 June 2008.

  Page 99

C4 - Total assets - Valuation bases/fair value hierarchy

Valuation Bases

The valuation of the Group's assets can be categorised into four major categories:

(i)    Fair Value - Fair value is the amount for which an asset can be exchanged between knowledgeable, willing parties in an arm's length transaction;

(ii)    Cost/Amortised Cost - The amortised cost of a financial asset is the amount at which the financial asset is measured at initial recognition less principal repayments, plus or minus the cumulative amortisation (using the effective interest method) of any difference between the initial amount and the maturity amount, and less any reduction for impairment or uncollectibility. The cost/amortised cost of a non-financial asset is the amount at which the asset is initially recognised less any cumulative amortisation/depreciation (if applicable), and less any reduction for impairment.

(iii)    Equity Accounted - Investments in associates and joint ventures are accounted for using the equity method of accounting. Under this method, the cost of the investment in a given associate or joint venture, together with the Group's share of that entity's post-acquisition changes to shareholders' funds, is included as an asset in the consolidated balance sheet. The Group's share of their post-acquisition profits or losses is recognised in the income statement and its share of post-acquisition movements in reserves is recognised in reserves. Distributions received from the investee reduce the Group's carrying amount of the investment; and

(iv)    Tax Assets - Within the Group's balance sheet, assets are recognised for deferred tax and current tax. The valuation basis of these assets does not directly fall within any of the categories outlined above. As such, these assets have been reported separately within the analysis of the Group's assets in the table below.

	Fair value  £m	Amortised  cost  £m	Equity accounted/ tax assets  £m	Total  £m
Assets - Total
Goodwill and Acquired value of in-force business and intangible assets	-	6,423	-	6,423
Interests in joint ventures and associates	-	-	3,799	3,799
Property and equipment	531	475	-	1,006
Investment property	14,668	-	-	14,668
Loans	18,785	18,602	-	37,387
Financial investments
Debt securities	125,360	-	-	125,360
Equity securities	49,905	-	-	49,905
Other investments	38,589	-	-	38,589
Reinsurance assets	-	8,337	-	8,337
Deferred tax assets	-	-	249	249
Current tax assets	-	-	543	543
Receivables and other financial assets	-	11,291	-	11,291
Deferred acquisition costs and other assets	-	5,030	-	5,030
Prepayments and accrued income	-	3,385	-	3,385
Cash and cash equivalents	19,217	-	-	19,217
Total assets	267,055	53,543	4,591	325,189
	82.1%	16.5%	1.4%

As shown in the above table, 82% for the Group's total assets are carried at fair value (inclusive of cash and cash equivalents).

With such a significant portion of the Group's total assets carried at fair value, the impact of market risks and credit risks of these assets has been fully reflected within the Group's reported 30 June 2008 financial position. Furthermore, all other assets have been tested for impairment and, in the case of financial assets carried at amortised cost, this has included a specific analysis of the recoverability of the assets by reference to the credit risk of the counterparty.

The carrying values of assets on the different valuation bases are analysed in the tables below between Policyholder, Participating Fund and Shareholder Assets respectively.

Page 100

C4 - Total assets - Valuation bases/fair value hierarchy continued

	Fair value  £m	Amortised  cost  £m	Equity accounted/ tax assets  £m	Total  £m
Assets - Policyholder assets
Goodwill and Acquired value of in-force business and intangible assets	-	-	-	-
Interests in joint ventures and associates	-	-	557	557
Property and equipment	-	47	-	47
Investment property	4,985	-	-	4,985
Loans	106	-	-	106
Financial investments
Debt securities	16,951	-	-	16,951
Equity securities	25,591	-	-	25,591
Other investments	23,932	-	-	23,932
Reinsurance assets	-	1,876	-	1,876
Deferred tax assets	-	-	-	-
Current tax assets	-	-	-	-
Receivables and other financial assets	-	828	-	828
Deferred acquisition costs and other assets	-	130	-	130
Prepayments and accrued income	-	181	-	181
Cash and cash equivalents	4,978	-	-	4,978
Assets - Policyholder assets	76,543	3,062	557	80,162
	95.5%	3.8%	0.7%

	Fair value  £m	Amortised  cost  £m	Equity accounted/ tax assets  £m	Total  £m
Assets - Participating fund assets
Goodwill and Acquired value of in-force business and intangible assets	-	-	-	-
Interests in joint ventures and associates	-	-	1,865	1,865
Property and equipment	60	35	-	95
Investment property	6,768	-	-	6,768
Loans	797	8,160	-	8,957
Financial investments
Debt securities	64,169	-	-	64,169
Equity securities	18,896	-	-	18,896
Other investments	12,106	-	-	12,106
Reinsurance assets	-	709	-	709
Deferred tax assets	-	-	-	-
Current tax assets	-	-	-	-
Receivables and other financial assets	-	2,711	-	2,711
Deferred acquisition costs and other assets	-	293	-	293
Prepayments and accrued income	-	1,434	-	1,434
Cash and cash equivalents	5,325	-	-	5,325
Assets - Participating fund assets	108,121	13,342	1,865	123,328
	87.7%	10.8%	1.5%

  Page 101

C4 - Total assets - Valuation bases/fair value hierarchy continued

	Fair value  £m	Amortised  cost  £m	Equity accounted/ tax assets  £m	Total  £m
Assets - Shareholder assets
Goodwill and Acquired value of in-force business and intangible assets	-	6,423	-	6,423
Interests in joint ventures and associates	-	-	1,377	1,377
Property and equipment	471	393	-	864
Investment property	2,915	-	-	2,915
Loans	17,882	10,442	-	28,324
Financial investments
Debt securities	44,240	-	-	44,240
Equity securities	5,418	-	-	5,418
Other investments	2,551	-	-	2,551
Reinsurance assets	-	5,752	-	5,752
Deferred tax assets	-	-	249	249
Current tax assets	-	-	543	543
Receivables and other financial assets	-	7,752	-	7,752
Deferred acquisition costs and other assets	-	4,607	-	4,607
Prepayments and accrued income	-	1,770	-	1,770
Cash and cash equivalents	8,914	-	-	8,914
Assets - Shareholder assets	82,391	37,139	2,169	121,699
	67.7%	30.5%	1.8%

68% of shareholder assets are measured at fair value (inclusive of cash and cash equivalents). The remaining assets include goodwill, loans, reinsurance assets and receivables; all carried at amortised cost and are subject to regular impairment reviews.

C5 - Loans

The Group loan portfolio is principally made up of:

• Policy loans which are generally collateralised by a lien or charge over the underlying policy;
• Loans and advances to banks which primarily relate to loans of cash collateral received in stock lending transactions. These loans amount to £8 billion, are made to highly rated backing counterparties and are fully collateralised by other securities;
• Residential mortgage loans (securitised and non-securitised). Securitised mortgages are secured by non-recourse borrowings;
• Non securitised commercial loans which are primarily held to back annuity liabilities; and,
• Other loans which typically represent loans and advances to customers of our banking business

Shareholder exposure to non-securitised mortgage loans is predominantly to commercial, rather than residential, mortgages. These are typically held to back annuity liabilities. Historical data has shown the portfolio to be of very high quality, with minimal bad debts incurred on the large UK portfolio in the last 15 years. 

Securitised mortgage loans of £7.8 billion are secured through non-recourse borrowings in our UK Life and Dutch businesses.

Arrears

	Financial assets that are due but not impaired					Financial assets that have been impaired  £m	Total £m
	Neither past due nor impaired  £m	0-3 months £m	3-6 months  £m	6 months -  1 year  £m	Greater than  1 year  £m
Total loans	37,200	155	13	2	1	16	37,387
	99.6%	0.4%	0.0%	0.0%	0.0%	0.0%
Policyholder assets	105	-	-	-	-	1	106
Participating fund assets	8,957	-	-	-	-	-	8,957
Shareholder assets	28,138	155	13	2	1	15	28,324
Total loans	37,200	155	13	2	1	16	37,387

Over 99% of the loan portfolio is neither past due nor impaired, the level of arrears is negligible in relation to the size of the portfolio (which includes the various types of loans outlined above).

  Page 102

C5 - Loans continued

Loan to Value

The following section provides an analysis of the loan to value of the securitised and non-securitised mortgage loans.

	LTV >100%  £m	LTV 95-100%  £m	LTV 90-95%  £m	LTV 80-90%  £m	LTV 70-80%  £m	LTV <70%  £m	Total  £m
Mortgage loans -  Loan to value (LTV)
Securitised mortgage loans - residential	-	135	2,086	3,070	251	2,262	7,804
Securitised mortgage loans - commercial	-	-	-	-	-	-	-
Total Securitised mortgage loans	-	135	2,086	3,070	251	2,262	7,804
Non-securitised mortgage loans - residential	7	76	1,158	1,623	74	987	3,925
Non-securitised mortgage loans - commercial	883	1,612	1,583	3,742	2,765	3,654	14,239
Total Non-securitised mortgage loans	890	1,688	2,741	5,365	2,839	4,641	18,164
Total	890	1,823	4,827	8,435	3,090	6,903	25,968
	3.4%	7.0%	18.6%	32.5%	11.9%	26.6%

The loan to value data is based on an estimated current property valuation.

The Group's loan portfolio includes £18.1 billion of non-securitised and £7.8 billion of securitised mortgages. 
The securitised mortgages are secured through non-recourse borrowings in our UK Life and Dutch business whereby the risk is passed to the note holders. As such, the comments on LTVs here are focused on the Group's non-securitised mortgage portfolio.

The majority of non-securitised mortgages are commercial mortgages with 78% of the Group's portfolio being commercial and 22% being residential. 

Our entire US mortgage portfolio is commercial. The LTVs of our US portfolio are strong with 94% of the US loan portfolio having a LTV of less than 70%.

The commercial mortgages shown above with the LTV's of greater than 100% are from our UK businesses. 
The un-collateralised portion of these loans is £47 million.

The LTV of a loan is only one measure of evaluating the recoverability of the loan. The Group also focuses on the credit quality of the counterparty, the quality and level of rental income (where appropriate) and the level of loan service cover when issuing and monitoring the loan book.

Commercial loans are principally held by our UK Life Business to back annuity liabilities. The portfolio is well diversified in terms of property type, location and tenants as well as the spread of loans written over time. The UK portfolio has had an excellent track record with minimal losses in the last 15 years. A high proportion of borrowers are long term property investors and long standing customers of Aviva with a strong track record.

The Dawnay Day Group companies have been borrowers from Norwich Union since the mid-1980s and have built up their portfolio with us since that time. 

There are total loans of £642m with three companies, Starlight Investment, Insureprofit and Dawnay Day Properties Limited, which are now in administrative receivership. 

In addition, there are loans of £141m with other related Dawnay Day companies (including joint venture companies) and £116m of other loans are held in a trust company. The average loan to value (LTV) ratio of these loans is 86%, average loan service cover is 1.1 times and none of these is currently in default.

The £642m loans with Starlight Investment, Insureprofit and Dawnay Day Properties are secured by a fixed charge over properties (where the average LTV is 91%) and a floating charge over the remaining assets of the businesses. The loans are supported by a well-diversified tenant base (by geographic region and by business sector) and there is currently sufficient rental income to meet loan service payments.

As a result, no provision for impairment of these loans is considered necessary but we will keep these under close and continuous review.

  Page 103

C6 - Debt securities

The tables below provide further details of the products included within debt securities and their ratings.

	Ratings					Not-rated  £m	Total  £m
	AAA  £m	AA  £m	A  £m	BBB  £m	Less than BBB  £m
Debt Securities - Total
UK government	16,923	22	-	-	-	25	16,970
Non-UK government	15,265	7,161	5,364	155	4	1,319	29,268
Corporate - Listed - UK	838	2,812	3,066	2,038	120	136	9,010
Corporate - Listed - Non-UK	13,528	14,491	14,150	7,036	1,169	1,917	52,291
Corporate - Unlisted - UK	5	205	448	669	14	124	1,465
Corporate - Unlisted - Non-UK	328	725	1,171	641	85	586	3,536
Certificates of deposits	23	1,251	85	6	-	20	1,385
Sub-prime RMBS	84	1	2	3	1	-	91
Sub-prime CDO	-	-	-	-	-	-	-
Sub-prime ABS	30	3	-	1	-	1	35
Alt-A	185	4	-	-	-	-	189
CDO	120	50	94	34	-	155	453
CLO	57	-	-	2	-	13	72
RMBS	2,832	144	21	116	-	108	3,221
ABS	762	83	53	30	-	86	1,014
CMBS	1,300	292	84	44	-	-	1,720
ABCP - conduit	58	534	23	-	-	-	615
ABCP - SIV	-	33	34	-	-	-	67
ABFRN	53	13	1	2	-	4	73
Wrapped credit	299	291	65	14	-	-	669
Other debt securities	262	446	1,411	(1)	-	1,153	3,271
Less: Above assets not recognised  as Debt Securities
Assets recognised as other assets	(29)	(7)	(14)	-	-	(5)	(55)
Total Debt Securities	52,923	28,554	26,058	10,790	1,393	5,642	125,360
	42.2%	22.8%	20.8%	8.6%	1.1%	4.5%

The overall quality of the portfolio is very good. 94% of Debt securities are investment grade, with 1% below investment grade and 5% non-rated. 37% of total holdings are in government bonds. A further 49% of holdings are listed corporate bonds with an average rating between AA and A. 

Where shareholder risk is skewed toward the lower rating categories in the tables below, this is typically to back specific product lines and the risk is commensurate with the investment objectives. 

The Group has extremely limited exposure to 'Sub-prime' debt securities and also limited exposure to CDOs and CLOs. 

'Wrapped credit' is credit exposure that has been insured with monoline insurers to achieve a better credit rating. Aviva is a long-term holder of this debt and will not be a forced seller in the event that the monolines are downgraded. The exposure is diversified across several monolines and the underlying bonds are diversified across many different counterparties. Consequently, this is believed to represent a small level of risk in relation to the size of the Group. 

The majority of the Residential Mortgage-Backed Securities (RMBS) are US investments with 92% being rated AAA or AA. The bulk of these RMBS's are backed by one of the US Government Sponsored Entities such as Fannie Mae and Freddie Mac.

Approximately half of the unlisted corporate bonds, relate to private placements with public and private companies by our US business. While these private placements are not all rated by the major rating agencies they all are rated by the national Securities Valuation Office (SVO) of the National Association of Insurance Commissioners (NAIC), a national regulating agency. The SVO rates 96% of our US private placement holdings as investment grade with a weighted average equivalent rating of the portfolio being A-, however as this rating is not assigned by the main rating agencies, these investments are disclosed above as non-rated. 

Non-rated other debt securities primarily relate to our French businesses holding of bond UCITS (Undertakings for Collective Investments in Transferable Securities) rather than direct holding in debt securities. Due to the nature of these UCITS as collective investments they do not have a rating. The underlying ratings of these bonds within these investments are typically investment grade. 

£2.5 billion of the non-rated debt securities are from our Dutch life business which report ratings based exclusively on S&P ratings. As such, the non-rated amount includes £1.4 billion that has been rated by Moody's as investment grade of which £1.3 billion are rated the equivalent to AAA.

Page 104

C6 - Debt securities continued

	Ratings					Not-rated  £m	Total  £m
	AAA  £m	AA  £m	A  £m	BBB  £m	Less than BBB  £m
Debt Securities -  Policyholder assets
UK government	4,842	3	-	-	-	-	4,845
Non-UK government	1,127	281	838	38	-	60	2,344
Corporate - Listed - UK	184	300	322	130	17	47	1,000
Corporate - Listed - Non-UK	1,041	2,228	1,396	352	49	437	5,503
Corporate - Unlisted - UK	-	9	-	-	-	-	9
Corporate - Unlisted - Non-UK	18	135	184	20	-	107	464
Certificates of deposits	-	-	7	2	-	20	29
Sub-prime RMBS	25	1	-	-	-	-	26
Sub-prime CDO	-	-	-	-	-	-	-
Sub-prime ABS	7	-	-	-	-	-	7
Alt-A	-	-	-	-	-	-	-
CDO	6	4	-	-	-	2	12
CLO	36	-	-	-	-	-	36
RMBS	319	4	-	-	-	9	332
ABS	33	-	-	-	-	3	36
CMBS	22	36	6	-	-	-	64
ABCP - conduit	-	378	-	-	-	-	378
ABCP - SIV	-	-	17	-	-	-	17
ABFRN	35	4	1	-	-	-	40
Wrapped credit	36	-	-	-	-	-	36
Other debt securities	1	121	1,134	(1)	-	518	1,773
Less: Above assets not recognised  as Debt Securities
Assets recognised as other assets	-	-	-	-	-	-	-
Debt Securities -  Policyholder assets	7,732	3,504	3,905	541	66	1,203	16,951
	45.6%	20.7%	23.0%	3.2%	0.4%	7.1%

  Page 105 

C6 - Debt securities continued

	Ratings					Not-rated  £m	Total  £m
	AAA  £m	AA  £m	A  £m	BBB  £m	Less than BBB  £m
Debt Securities -  Participating Fund assets
UK government	10,862	1	-	-	-	-	10,863
Non-UK government	8,741	5,380	2,825	24	-	279	17,249
Corporate - Listed - UK	273	1,351	1,417	1,005	83	33	4,162
Corporate - Listed - Non-UK	8,780	9,089	7,082	3,183	225	139	28,498
Corporate - Unlisted - UK	-	26	80	340	9	10	465
Corporate - Unlisted - Non-UK	60	159	176	116	16	87	614
Certificates of deposits	-	44	2	-	-	-	46
Sub-prime RMBS	9	-	-	-	-	-	9
Sub-prime CDO	-	-	-	-	-	-	-
Sub-prime ABS	4	1	-	-	-	-	5
Alt-A	4	-	-	-	-	-	4
CDO	8	-	-	-	-	-	8
CLO	3	-	-	-	-	-	3
RMBS	419	7	7	1	-	-	434
ABS	151	1	13	13	-	-	178
CMBS	148	86	24	-	-	-	258
ABCP - conduit	-	60	-	-	-	-	60
ABCP - SIV	-	-	5	-	-	-	5
ABFRN	9	1	-	1	-	-	11
Wrapped credit	35	96	6	4	-	-	141
Other debt securities	153	313	277	-	-	413	1,156
Less: Above assets not recognised  as Debt Securities
Assets recognised as other assets	-	-	-	-	-	-	-
Debt Securities -  Participating Fund assets	29,659	16,615	11,914	4,687	333	961	64,169
	46.2%	25.9%	18.6%	7.3%	0.5%	1.5%

Page 106 

C6 - Debt securities continued

	Ratings					Not-rated  £m	Total  £m
	AAA  £m	AA  £m	A  £m	BBB  £m	Less than BBB  £m
Debt Securities -  Shareholder assets
UK government	1,219	18	-	-	-	25	1,262
Non-UK government	5,397	1,500	1,701	93	4	980	9,675
Corporate - Listed - UK	381	1,050	1,327	903	20	56	3,848
Corporate - Listed - Non-UK	3,707	3,174	5,672	3,501	895	1,341	18,290
Corporate - Unlisted - UK	5	170	368	329	5	114	991
Corporate - Unlisted - Non-UK	250	431	811	505	69	392	2,458
Certificates of deposits	23	1,207	76	4	-	-	1,310
Sub-prime RMBS	50	-	2	3	1	-	56
Sub-prime CDO	-	-	-	-	-	-	-
Sub-prime ABS	19	2	-	1	-	1	23
Alt-A	181	4	-	-	-	-	185
CDO	106	46	94	34	-	153	433
CLO	18	-	-	2	-	13	33
RMBS	2,094	133	14	115	-	99	2,455
ABS	578	82	40	17	-	83	800
CMBS	1,130	170	54	44	-	-	1,398
ABCP - conduit	58	96	23	-	-	-	177
ABCP - SIV	-	33	12	-	-	-	45
ABFRN	9	8	-	1	-	4	22
Wrapped credit	228	195	59	10	-	-	492
Other debt securities	108	12	-	-	-	222	342
Less: Above assets not recognised  as Debt Securities
Assets recognised as other assets	(29)	(7)	(14)	-	-	(5)	(55)
Debt Securities -  Shareholder assets	15,532	8,435	10,239	5,562	994	3,478	44,240
	35.1%	19.1%	23.1%	12.6%	2.2%	7.9%

Page 107 

C7 - Pension fund assets

In addition to the assets recognised directly on the Group's balance sheet outlined in the disclosures above, the Group is also exposed to the 'Plan Assets' that are shown net of the present value of scheme liabilities within the IAS19 net pension deficit. The net pension deficit is recognised within Provisions on the Group's balance sheet. 

Plan Assets include investments in Group-managed funds in the consolidated balance sheet of £123 million in the UK scheme, and insurance policies of £142 million and £1,109 million in the UK and Dutch schemes respectively. Where the investment and insurance policies are in segregated funds with specific asset allocations, they are included in the appropriate lines in the table below, otherwise they appear in 'Other'. The Dutch insurance policies are considered non-transferable under the terms of IAS19 and so have been excluded as assets of the relevant scheme in this table.

The total strict IAS19 assets (i.e. excluding the non-transferable insurance policies) of the schemes are analysed as follows:

	30 June 2008
	United Kingdom  £m	Netherlands  £m	Canada  £m	Ireland  £m	Total  £m
Equities	3,702	-	130	238	4,070
Bonds	2,678	-	75	179	2,932
Property	490	-	-	40	530
Other	928	3	3	1	935
Total fair value of assets	7,798	3	208	458	8,467

C8 - Available funds

To ensure access to liquidity as and when needed, the Group maintains over £2 billion of undrawn committed central borrowing facilities with various highly rated banks. £1 billion of this is allocated to support the credit rating of Aviva plc's £2 billion commercial paper programme. The expiry profile of the undrawn committed central borrowing facilities is as follows: 

	30 June  2008  £m
Expiring within one year	400
Expiring beyond one year	1,700
Total	2,100

Page 108

Shareholder services

Managing your shareholding

Shareholders who have any queries in respect of their shareholding should contact the Company's Registrar, Equiniti. Contact details can be found on page 109 

In addition to assisting with general queries, the Registrar can also help with the following:

Amalgamating your shareholding

If shareholders received more than one copy of the Company's communications, it could be because there is more than one record for the shareholder on the share register. To avoid duplicate mailings the Registrar can arrange for accounts to be amalgamated.

Dividend payments directly to your bank or building society account

As an alternative to having dividends paid by cheque, shareholders can, if they wish, have them credited directly into their bank or building society account on the dividend payment date. Having the dividend paid directly into their bank account offers shareholders the benefit of avoiding the risk of cheques being lost in the post and is more convenient as payment is credited automatically on the payment date. An annual tax voucher is sent to the shareholder's registered address at the time of the Company's annual report mailing to shareholders, usually in March. Shareholders wishing to set up a dividend mandate can do so via the Company's website www.aviva.com/dividendmandate or by contacting the Company's Registrar, Equiniti on 0871 384 2953*. For overseas shareholders, an overseas payment service is available, which allows shareholders in over 30 countries worldwide to have dividends credited directly into their bank accounts in local currencies, normally costing less than paying in a sterling cheque. Dividend mandate forms for overseas shareholders can be obtained on the Company's website at www.aviva.com/dividendmandate or by contacting Equiniti on [phone].

Dividend Tax Vouchers

Private shareholders who currently have dividends paid directly into their bank or building society account receive one consolidated tax voucher each year instead of a voucher with each dividend payment, unless they request otherwise. Those shareholders who have a dividend mandate and have also elected for e mail communications, will instead receive an electronic tax voucher, viewable through their shareview portfolio from each dividend payment date. An e mail will be sent to each eligible shareholder to notify them of its availability.

Dividend Reinvestment Plan

The Aviva Dividend Reinvestment Plan (the 'Plan') provides shareholders with the opportunity to use their cash dividend to purchase additional Aviva ordinary shares on the dividend payment date. Shareholders who have not joined the Plan but wish to do so should contact Equiniti to request a personalised application form. The completed application form will need to be received by Equiniti no later than 20 October 2008 in order to be effective for the 2008 interim dividend. Further details are included on the Company's website www.aviva.com/dividend

Online Shareholder Centre

A useful shareholder guide covering a range of shareholder frequently asked questions including practical help on transferring shares and updating personal details is available online at www.aviva.com/shareholders. The Company's Online Shareholder Centre also contains useful information on shareholder communications, electronic voting and other matters of interest to the private shareholder. Also included is advice on keeping shareholder information safe. The Company is continuing to work with Equiniti to review its procedures and where possible to restrict the opportunities for fraud. All shareholders must remain vigilant and if any unsolicited mail or advice is received, should contact Equiniti on 0871 384 2953* immediately. 

Corporate Nominee

Shareholders can hold their shares through the Company's nominee service, the Aviva Share Account, administered by Equiniti. Shareholders' personal details will not appear on the public register but they will continue to have a right to receive shareholder communications and attend general meetings. For further details contact the Registrar or visit www.aviva.com/shareholders to view the account terms and conditions which can be found in the Guide section.

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Share dealing

The Company has arranged the following services that can be used to buy or sell Aviva shares. Alternatively, if shareholders hold a share certificate they can also use any bank, building society or stockbroker offering share dealing facilities to sell their shares. Shareholders in any doubt about buying or selling their shares should seek professional financial advice.

Share dealing facilities for UK shareholders/Share Account members - 

- Buy and sell shares online at www.shareview.co.uk/dealing, by telephone on 08456 037 037 between 8.00am and 4.30pm, Monday to Friday or by calling 0871 384 2953* and having a postal form sent to you. For real time price information, useful guides, articles and tools visit www.shareview.co.uk/dealing. These services are provided by Equiniti Financial Services Limited, which is authorised and regulated by the Financial Services Authority, registered number 6208699.

- To buy or sell shares over the telephone, shareholders can contact Barclays Stockbrokers on 0870 549 3002 (for shareholders with a share certificate) or 0870 549 3001 (for shareholders with an Aviva Share Account statement). To check instructions and maintain high quality service standards, Barclays Stockbrokers may record and monitor calls. New Business Development hours are between 8.00am and 6.00pm Monday to Friday, excluding Bank Holidays. Barclays Stockbrokers also offer a postal share dealing service. For further information and a postal share dealing form telephone [phone]. Barclays Stockbrokers is authorised and regulated by the Financial Services Authority, registered number 124247.

- NatWest Stockbrokers provide a share dealing service either over the telephone or at certain NatWest branches for Aviva Share Account holders only. For more information contact NatWest Stockbrokers on 0845 122 0689. NatWest Stockbrokers Limited ('NWS') is a member of the London Stock Exchange and PLUS. NWS is authorised and regulated by the Financial Services Authority, and entered on its register (www.fsa.gov.uk/register/), with number 124395. Registered Office: Waterhouse Square, 138-142 Holborn, London EC1N 2TH. Registered in England and Wales, registered number 1959479. NWS is operated by a joint venture between The Royal Bank of Scotland Group plc and The Toronto-Dominion Bank.

Share dealing for overseas shareholders

To buy or sell Aviva shares over the telephone, shareholders can contact Barclays Stockbrokers on [phone]. Non UK residents will need to provide various documents in order to use this service and details will be provided on registration. Please note that regulations prevent this service from being offered to US, Canadian and Australian residents. Settlement proceeds will be sent to either a UK sterling bank account or by sterling cheque.

Shareholder information

2008 Annual General Meeting - voting results

The voting results, including proxy votes and votes withheld, from Aviva's Annual General Meeting ('AGM') held on 1 May 2008 can be viewed on the Company's website at www.aviva.com/shareholders. In addition you will also find the Chairman's and Chief Executive's 2008 AGM presentation and a webcast of the formal business of the meeting. Information relating to previous Annual General Meetings since 2002 is also included.

Group financial calendar for 2008
Announcement of Interim Management Statement Q3 2008	22 October
Ordinary shares - 2008 interim dividend
Ex-dividend date	24 September
Record date	26 September
Last date for DRIP forms to be received in order to be effective for 2008 interim dividend	20 October
Dividend payment date	17 November
Preference shares
83⁄8% cumulative irredeemable preference shares
Ex-dividend date	13 August
Record date	15 August
Second payment date	30 September
83⁄4% cumulative irredeemable preference shares
Ex-dividend date	12 November
Record date	14 November
Second payment date	31 December

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Share price

Share price - Shareholders can access the current share price of Aviva plc ordinary shares at www.aviva.com or alternatively can call 09058 171690. Calls are currently charged at 75 pence per minute at all times from a BT landline. Charges from other telephone providers may vary. The average time to access the share price is approximately one minute.

Useful contact details
Detailed below are the contact details that shareholders may find useful if they have a query in respect of their shareholding. Please quote Aviva plc, as well as the name and address in which the shares are held, in all correspondence. If you have a shareholder reference number, please have this available as well.
General shareholding, administration and  Aviva Share Account queries Equiniti Aspect House, Spencer Road Lancing, West Sussex BN99 6DA www.shareview.co.uk email: [e-mail] 0871 384 2953* ([phone]  for overseas shareholders)	Corporate and single  company Peps Barclays Stockbrokers Limited Tay House, 300 Bath Street Glasgow G2 4LH 0870 514 3263 www.stockbrokers.barclays.co.uk	Individual Savings Accounts  ('ISAs') Equiniti (ISA) Manager Aspect House, Spencer Road Lancing, West Sussex BN99 6DA 0871 384 2244*
	*    Calls to 0871 numbers are charged at 8 pence per minute from a BT landline.  Charges from other telephone providers may vary.

Internet sites

Aviva owns various internet sites, most of which interlink with each other Aviva Group www.aviva.com UK long-term savings and general insurance www.norwichunion.com Fund management www.morleyfm.com Aviva worldwide internet sites www.aviva.com/websites

ShareGift

ShareGift - The Orr Mackintosh Foundation operates a purely voluntary charity share donation scheme for shareholders who wish to dispose of small numbers of shares when the dealing costs or minimum fee makes  it uneconomical to sell them. Details of the scheme are available from ShareGift at www.sharegift.org or can be obtained from the Company's Registrar.

Aviva plc

Registered in England Number: 2468686 Registered Office:  St Helen's, 1 Undershaft, London EC3P 3DQ Telephone: [phone] www.aviva.com

Alternative format

If you would like to request a copy of our Annual Report and Accounts or Annual Review in an alternative format, for example, large print, braille or audio cassette, please contact the Registrar using the details above.

End of part 4 of 4. 

A PDF version of this announcement can be found at www.aviva.com 

or

Click on, or paste the following link into your web browser, to view the associated PDF document.

http://www.rns-pdf.londonstockexchange.com/rns/1660A_-2008-7-29.pdf

END OF ANNOUNCEMENT

 

END

 

 

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