The future of bancassurance: Rebuilding confidence David Angulo, Aviva Europe Bancassurance Director Monday 7th June 2010 page 1

Bancassurance today BANKS MACROECONOMICS REGULATION CUSTOMER Monday 7th June 2010 page 2

The environment Macroeconomics: Public accounts turmoil Unemployement Volatility of financial markets Banking industry: Capital / P&L constrains Restructuring underway Potential liquidity issues BANCASSURANCE Customer: Demand for protection Savings propensity Looking for guarantees Regulation: Solvency II Basel II & III Capital requirements Monday 7th June 2010 page 3

Aviva 2009 performance Monday 7th June 2010 page 4

The European market Monday 7th June 2010 page 5

Aviva clear strategic delivery Monday 7th June 2010 page 6

Aviva Q1 2010 highlights Q1 2010 16% growth of life business compared to previous quarter Aviva Europe Bancassurance grew 48% from the previous quarter up to £2.611m with different performance through out the European markets and 20% growth from Q1 2009 Group margin in line with full year 2009 IGD solvency surplus at £4.400m after deducting final dividend (FY:£4.500m) Strong growth of volumes in life business in Q1 2010 and maintained focus on capital resources Monday 7th June 2010 page 7

Macroeconomics & political situation UNCERTAINTY Unpopular reforms and political actions are being triggered by the current economic situation and governments should take the lead to promote private savings Monday 7th June 2010 page 8

The final outcome of consolidation process is still unknown The banking industry UNCERTAINTY Banks need additional sources of profit including general insurance business while margins are under pressure and lending activity is at very low level. The final outcome of consolidation process is still unknown Monday 7th June 2010 page 9

The customer Given the current economic situation customers with increased savings propensity show a demand for protection a savings business providing guarantees UNCERTAINTY Monday 7th June 2010 page 10

Regulation Uncertainty generated by regulation evolution in banking and insurance industries with potential increased capital requirements foreseen in the near future UNCERTAINTY Monday 7th June 2010 page 11

Foundations for bancassurance remain the same EFICIENCY & EXCELENCE SIMPLICITY INTEGRATION PROFITABILITY BACK TO BASICS Monday 7th June 2010 page 12

The future of bancassurance Protection General insurance Specific savings Joint venture vs. Distribution agreement Demand: Protection Guarantees Monday 7th June 2010 page 13

Summary of bancassurance Bancassurance can cover some of the shortfall in banking P&L Back to basics and focus on capital and results remain in current situation Long term savings picking up compared to previous year Potential to develop General insurance Retention of current portfolios important in a difficult new business market Market consolidation will change banking landscape in Europe Regulatory changes may affect the participations of banks in insurance business Uncertainty is driving customer demands Governments should promote long term savings and pensions in current environment Bancassurance landscape to change in the medium term driven by consolidation and regulation but will remain as a relevant channel with additional potential to develop GI Monday 7th June 2010 page 14

Andre Malraux (French historian, novelist and statesman 1901-1976) “Often the difference between a successful person and a failure is not one has better abilities or ideas, but the courage that one has to bet on one's ideas, to take a calculated risk - and to act.” Andre Malraux (French historian, novelist and statesman 1901-1976) Monday 7th June 2010 page 15

Monday 7th June 2010 page 16 © Aviva plc