Impact of July UK weather

Aviva PLC
02 August 2007





News release



2 August 2007



                  IMPACT OF THE JULY UK WEATHER EVENT ON AVIVA



Following the July floods in Gloucestershire and the surrounding areas, Aviva
plc ('Aviva') estimates the cost of this event, and reinsurance to limit the
costs of future similar events in the UK, to be in the region of £165 million.
These costs will impact the group's general insurance results in the second half
of the year.



The priority for Aviva's UK general insurance business, Norwich Union Insurance,
continues to be helping those impacted by these devastating events through an
exceptionally difficult time.  A network of loss adjusters, contractors and
claims teams is  on site at all flood areas to assess the full extent of the
damage. Call centre staff numbers have been doubled to deal with the extra
calls. A fully equipped mobile advice centre has been sent to Gloucestershire,
manned by claims and repair specialists, to provide practical help and advice on
dealing with the aftermath of homes and businesses being flooded. Work also
continues in the north of England following the floods in June.



Igal Mayer, chief executive of Norwich Union Insurance said: 'Having visited
Gloucestershire myself, I've witnessed at first hand the traumatic and emotional
impact the floods have had on our customers. We're bringing in additional
contractors and specialist equipment to ensure repairs are carried out as
quickly as possible, and we're in discussions with local authorities to find the
best solution to providing temporary accommodation for those who have had to
leave their homes. We will continue to do everything we can to help our
customers affected by these devastating events return to normal as soon as
possible. '



The initial cost estimate of £175m for the June floods remains unchanged. Whilst
Aviva remains fully committed to a group COR target of 98% due to the
exceptional nature of the recent bad weather claims in the UK in 2007 there is a
degree of uncertainty concerning Aviva's ability to meet the group target in
2007. Aviva has exercised its reinsurance option to limit the maximum cost of
future similar events in the UK this year to £110m, the cost of which is
included in the estimate of £165 million above.



                                    - ends -





Enquiries:



Media

Hayley Stimpson, director of external affairs            [phone]

Sue Winston, head of group media relations               [phone]

James Murgatroyd/Ed Simpkins, Finsbury                   [phone]



Analysts

Charles Barrows, investor relations director               [phone]

Amanda Wilbraham, senior manager, investor relations       [phone]





Notes to editors:



•         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 £41.5 billion
and assets under management of £364 billion at 31 December 2006.



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




                      This information is provided by RNS
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