Italy JV with Banco Popolare

Aviva PLC
21 June 2007




News release


21 June 2007


AVIVA ANNOUNCES BANCASSURANCE JV WITH BANCO POPOLARE

•  New exclusive long-term bancassurance partnership in protection and
   non-life insurance between Aviva and Banco Popolare

•  Gives Aviva access to more than 5 million potential customers through
   the third largest branch network in Italy with circa 2,200 branches

•  Further strengthens Aviva's bancassurance presence in Italy and
   creates new opportunity in the fast-growing protection sector

•  New agreement builds upon Aviva's excellent relationship with Banco
   Popolare

•  Aviva to pay €250 million (£169 million(1)) for the long-term
   bancassurance agreement with Banco Popolare and 50% of Novara Assicura


Aviva plc ('Aviva') announces that it is to form a joint venture with Banco
Popolare, the new Italian banking group to be created by the merger between
Banco Popolare di Verona e Novara and Banca Popolare Italiana ('BPI').


Under the terms of the long-term bancassurance agreement signed today, Aviva
will pay €250 million (£169 million) in cash for the long-term bancassurance
agreement with Banco Popolare and 50% of the share capital of Novara Assicura,
which will become Banco Popolare's non-life insurance subsidiary.


Aviva will offer protection and non-life insurance products, including loan and
credit protection, to more than 5 million Banco Popolare customers.


Banco Popolare will give Aviva exclusive access to its network of around 2,200
branches, which are mainly located in the affluent regions of northern Italy (eg
Lombardy, Veneto, Piedmont and Tuscany) where Banco Popolare has a market share
of approximately 10%.  The agreement also includes the Ducato network, a leading
consumer finance platform wholly owned by Banco Popolare.


This new partnership forms an excellent geographic fit with Aviva's existing
bancassurance agreements, bringing Aviva's total bank distribution to
approximately 4,500 branches across Italy.


Aviva's agreement with Banco Popolare will have a minimum term of 10 years and
thereafter it will be renewable by mutual agreement for five year periods.  The
agreement will also enable Aviva to streamline its other arrangements with BPI.


Aviva and Banco Popolare anticipate strong growth in sales of protection
products through the Banco Popolare network because it is a strategic priority
for Banco Popolare to increase its share of the protection market.


Commenting on the new joint venture, Tidjane Thiam, group executive director of
Aviva, said:  'This will enable us to establish Aviva as a significant provider
in the protection sector, leveraging the power of Banco Popolare's network and
giving our Italian portfolio greater breadth and depth. We're really very proud
to have been chosen by Banco Popolare as their exclusive provider.'


The transaction is subject to EU and Italian regulatory approvals and is
expected to complete by the fourth quarter.


                                    - ends -



Enquiries:

Media
Sue Winston, head of group media relations                [phone]
Vanessa Rhodes, group media relations manager             [phone]
James Murgatroyd or Matthew Newton, 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
   2005.


•  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.



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(1) At an exchange rate of 1.482 Euro/GBP


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