Issue of Tier1 repay debt

Aviva PLC
10 November 2004

                                                                10 November 2004



AVIVA TO ISSUE HYBRID TIER 1 DEBT AND REPAY SENIOR DEBT



Aviva plc ('Aviva') today announced its intention to issue Innovative Tier 1
hybrid debt of around £750 million which will be used to repay existing senior
debt, leaving overall debt levels unchanged.


The joint bookrunners are ABN AMRO, Barclays Capital, Goldman Sachs
International and Lehman Brothers (structuring adviser).


Andrew Moss, Aviva's group finance director, said:

'Given current favourable market conditions we are taking the opportunity to
replace senior debt with high quality, low cost long-term hybrid debt. In
addition, this will further enhance the group's strong regulatory capital
position, whilst leaving the financial leverage of the group unchanged.'



Aviva's EU Insurance Groups Directive surplus was £2.2 billion at 30 June 2004.



There will be no effect on the group's credit ratings.



The transaction will be targeted at investors in the Sterling and Euro markets
and will be launched, subject to market conditions, following a roadshow in the
UK and Continental Europe.





Enquiries:


Analysts/Investors:
James Matthews, Head of Investor Relations            [phone]


Media :
Hayley Stimpson, Director of External Affairs         [phone]
Robert Bailhache, Financial Dynamics                  [phone]



Notes to editors:



The recent introduction of PS04/16 and PS04/20 by the FSA has clarified the
rules for the types of hybrid debt that can be issued by insurers. Innovative
Tier 1 hybrid debt is a security that is treated as capital for regulatory
purposes but can be structured in a tax deductible form.






                      This information is provided by RNS
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