Re Joint Venture

Aviva PLC
26 September 2002

                                                               26 September 2002

    AVIVA EXTENDS DISTRIBUTION IN SPAIN WITH FIFTH BANCASSURANCE PARTNERSHIP

Aviva plc ('Aviva') announces that it has entered into a bancassurance
partnership with Spanish savings bank, Caja de Granada. This new partnership
will enhance Aviva's strong position in the Spanish long-term savings market
where it is ranked fifth in life assurance and leverages Aviva's extensive
bancassurance expertise.


Bancassurance accounts for over 80% of new business sales in the Spanish market.
Aviva has four existing bancassurance partnerships with leading Spanish savings
banks Bancaja, Unicaja, Caixa Galicia and Caja Espana, and has created the
fourth-largest bancassurance network in Spain.


Caja de Granada's network of 429 branches is focused on Granada, in the region
of Andalusia. This network complements the strong position of Unicaja, Aviva's
existing distribution partner in Andalusia, which is focused on Malaga. Caja de
Granada and Unicaja have a combined market share in Andalusia of 23% of
deposits.


The expanded network in Spain will have some 3,500 branches and access to
approximately 9 million customers.


Under the transaction, Unicorp Vida, the life and pensions business owned 50:50
by Aviva and Unicaja and of which Aviva has management control, will acquire 50%
of the share capital and management control of Caja de Granada's life and
pensions agency.


Caja de Granada's life and pensions agency, under its own brand, will sell
exclusively Unicorp Vida life and pensions products to Caja de Granada's 900,000
customers. Product manufacture and administration will utilise Aviva's
manufacturing base, Aseval, one of Spain's most efficient bancassurance
platforms, to secure further economies of scale for Aviva and its partners.


Aviva's share of the initial consideration payable by Unicorp Vida is €18
million. Further amounts are payable subject to agreed value enhancing
performance targets being met. The price paid reflects the potential of the Caja
de Granada network, as the life and pensions business is in its early stages of
development.


The transaction is expected to complete by the end of October 2002.


Tony Wyand, Group Executive Director, with responsibility for Aviva's
continental European operations, said:


'We are delighted to join with Caja de Granada in a partnership which
strengthens both Aviva's position in Spanish bancassurance and our relationship
with Unicaja. Aviva's expertise in long-term savings, both internationally and
in Spain, combined with Caja de Granada's distribution capabilities affords an
excellent opportunity to realise value for all the stakeholders.'




Braulio Medel, President of Unicaja said:

'This agreement between Unicorp Vida and Caja de Granada is a sound financial
investment for Unicaja. It also strengthens the strategic relationship between
Unicaja and Aviva, and allows Unicaja to participate in the development of the
insurance franchise of Caja de Granada. It is an important step in furthering
co-operation amongst Andalusian cajas.'

Antonio-Claret Garcia, President of Caja de Granada said:

'Caja de Granada is very pleased to reach this agreement with Aviva, one of the
leading insurers in Europe, and through this join Bancaja, Unicaja, Caixa
Galicia and Caja Espana, four of the most important Spanish savings banks. This
agreement also furthers the collaboration in Andalusia between Unicaja and Caja
de Granada in the area of bancassurance, an important area of focus for the
future.'




Enquiries:


Analysts / Investors:

James Matthews, Head of Investor Relations          [phone]


Media:

Ian Frater, Head of Group Media Relations          [phone]

Alex Child-Villiers, Financial Dynamics            [phone]


Notes to editors:


  • Aviva is the largest provider of life and pensions to Europe, the UK's
    largest insurance group and has substantial positions in other markets
    around the world. Aviva is the world's seventh-largest insurer based on
    worldwide gross written premiums.


  • Aviva's principal business activities are long-term savings, fund
    management and general insurance, with worldwide premium income and retail
    investment sales from ongoing business of more than £28 billion, and over
    £200 billion of assets under management at 31 December 2001.


Aviva in Spain


Bancassurance relationships

                        Date signed   Aviva's consideration*     Number of        Number of    Region
                                                                branches**        customers

Bancaja                      May 2000         €324m                1104             2.4m       Valencia

Unicaja                     June 2001         €145m                 742             2.0m       Andalusia
                                                                                               (Malaga)

Caixa Galicia               July 2001         €141m                 681             2.3m       Galicia

Caja de Espana               Dec 2001         €139m                 538             1.3m       Castilla y Leon

Caja de Granada             Sept 2002          €18m                 429             0.9m       Andalusia
                                                                                               (Granada)


£1 : €1.58

* additional amounts are payable subject to performance criteria

** 31 December 2001


In all its relationships, except Caja de Granada, Aviva has taken a 50%
controlling interest in the respective bank's life and pensions business. In the
case of Caja de Granada, Aviva's interest is through Unicorp Vida, its joint
venture with Unicaja in which Aviva has a 50% controlling interest. Unicorp Vida
has a 50% controlling interest in Caja de Granada's life and pensions agency.


Aseval, Aviva's joint venture with Bancaja, provides product manufacture and
administration services to all of Aviva's joint venture operations in Spain.


Other activities


Aviva also operates in the Spanish life market through its 100% owned
subsidiary, Plus Ultra. Plus Ultra has nationwide coverage through a direct
sales force of 2,000 employees, agents and brokers as well as a number of
affinity groups.


Aviva sold its Plus Ultra general insurance business and the Plus Ultra brand to
Groupama in July 2002. Aviva's Spanish operations will cease to operate under
the Plus Ultra brand and begin operating under the Aviva brand in the fourth
quarter 2002.


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