Presentation to investors and analysts on Aviva s UK general insurance business

Article date: 20 May 2003

Aviva plc is holding a presentation today on its UK generalinsurance business, branded Norwich Union Insurance(“NUI”). Slides from the presentation are available onthe Group’s website and a delayed webcast willbe available from around mid-afternoon.

NUI is the leading UK general insurer with a market share of 16%and has a focus on personal and small commercial lines. Net writtenpremiums were £4.7 billion in 2002 with a combined operating ratioof 101%, against a group target of 102%, and statutory operatingprofits of £611 million. NUI makes a significant contribution tocash flows within the Group and achieved a return on capitalemployed of 16% in 2002.


Analysts / Investors
Steve Riley, Investor RelationsDirector+44 (0) 20 7662 8115
James Matthews, Head of InvestorRelations+44 (0) 20 7662 2137
Sue Winston, Head of Group MediaRelations+44 (0) 20 7662 8221
Alex Child-Villiers, FinancialDynamics+44 (0) 20 7269 7107

Main points from the presentation:

Consistent financial performance and a good start to2003:

Application of scale advantages, a market leading claims processand rating increases together with continuing to re-shape theportfolio delivered a combined operating ratio of 102% and 101% in2001 and 2002 respectively. We have seen a strong start to 2003,with double-digit rate increases in commercial property andliability business, and better than expected weather claims. Rateincreases in personal lines have been relatively low.

Continuing to drive efficiency and improvereturns

NUI maintains a market leading expense ratio at 10.4%, whichincludes expensing process improvements and new initiatives. We areoff-shoring part of our customer services operation to India, tofurther improve our underlying cost base. These operations will beon-line from July 2003.

In 2002, claims costs savings of £100 million were achieved inareas such as improved terms for motor repairs and white goods, andthe development of our own network of building contractors.

Developing new competitiveadvantages

NUI has developed a unique understanding of flood risks in theUK through digital mapping. This will improve risk selection andthe accuracy of pricing for household insurance.

NUI is pioneering Pay As You Drive (PAYD™) technology inthe UK motor insurance market, with exclusivity to the technologyin the UK.

Developing new earnings streams

Whilst maintaining insurance at our core, NUI is developing arange of broader customer offerings, taking the opportunity toextend the trusted Norwich Union brand and create new profitstreams. These initiatives include: NU Rescue and carprovision.

View a webcast of the slide presentation.

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