Aviva Plc · LSE:AV.

Aviva — Investor Presentation (September 2004)

22 slides from Aviva's investor presentation, Sep 30, 2004

1. Slide 1: Impact of International Financial Reporting Standards (IFRS)

   Impact of International Financial Reporting Standards (“IFRS”) Andrew Moss Group Finance Director

2. Slide 2: Disclaimer

   Disclaimer This presentation may contain certain “forward-looking statements” with respect to certain of Aviva’s plans and its current goals and expectations relating to its future financial condition, performance and results. By their nature, all forward-looking statements involve risk and uncertai

3. Slide 3: Introduction of IFRS

   Introduction of IFRS International Other external accounting developments standards Pe ll r • IFRS 4 – Insurance era t ma form • European Contracts v O ac nag anc em e Embedded Value imp ent • IAS 32/39 – Financial Instruments • ASB review of UK GAAP insurance accounting – • IFRS 1 – First- Time Ado

4. Slide 4: Aviva's response

   Aviva’s response • IFRS conversion project is progressing well across all business units. • There remain areas of uncertainty. However overall: - Phase I principally an accounting technical change to MSSB reporting; - Sustainable IFRS reporting disciplines established; - Do not expect significant im

5. Slide 5: Agenda

   Agenda • IFRS technical requirements • Summary of key accounting policy changes • External developments • Aviva’s future communication plans • Wrap up 5 © Aviva plc

6. Slide 6: IFRS technical requirements

   IFRS technical requirements 6 © Aviva plc

7. Slide 7: Overview of IFRS requirements

   Overview of IFRS requirements IFRS will replace the Group’s current modified statutory basis of reporting in the Aviva plc consolidated financial statements. The accounting standards that have the greatest impact are: IFRS 4 “Insurance Accounting” Classification of products, accounting policies to b

8. Slide 8: Implementing IFRS 4 - Insurance accounting

   Implementing IFRS 4 - Insurance accounting General Insurance Accounting - Expect virtually all GI products to be classified as insurance contracts – equalisation provision derecognised. Life Insurance Accounting - Classification of insurance products by life policy reserves on an MSSB basis at 31 De

9. Slide 9: Implementing IFRS 4 – Life Insurance accounting (continued)

   Implementing IFRS 4 – Life Insurance accounting (continued) Classification of insurance products by life policy reserves on an MSSB basis at 31 December 2003: UK Life e.g. Unitised with-profit France Life pensions e.g. Term & whole life assurance 1% e.g. Unit-linked pensions & Multi-supports with bo

10. Slide 10: Implementing IFRS 4 – Life Insurance Accounting (continued)

    Implementing IFRS 4 – Life Insurance Accounting (continued) Illustrative investment product profit profile Product features: Achieved Profits • 10 year single premium bond • Lapse rate 5% • Initial charge 4% • Unit growth 5% • Total initial expenses 7% • Investment return 6% IFRS UK GAAP MSSB 0 1 2

11. Slide 11: Summary of key accounting policy changes

    Summary of key accounting policy changes 11 © Aviva plc

12. Slide 12: Summary of key accounting policy changes - Assets

    Summary of key accounting policy changes - Assets Anticipated key changes (unaudited) Consolidated Group balance sheet At 31 December 2003 (UK GAAP) • No annual amortisation (in 2003 amortisation charged was £103 million). Assets UK GAAP • Review impairment upon adoption. As published £bn • Most inv

13. Slide 13: Summary of key accounting policy changes - Liabilities

    Summary of key accounting policy changes - Liabilities Consolidated Group balance sheet Anticipated key changes (unaudited) At 31 December 2003 (UK GAAP) • No material valuation change. Liabilities UK GAAP As published • Equalisation provision will be derecognised £bn (£364 million at 31/12/03). Cap

14. Slide 14: Key changes to MSSB opening balance sheet shareholders' funds at 31 December 2003

    Key changes to MSSB opening balance sheet shareholders’ funds at 31 December 2003 Illustrative impact of key accounting changes on shareholders’ funds at 31 December 2003 Change in valuation of debt securities from amortised Estimated increase of approximately £200 million cost to fair value (IAS 39

15. Slide 15: Summary of impact of IFRS on other financial measures

    Summary of impact of IFRS on other financial measures Income statement • Continue to report for our life business a return on embedded value, which is unchanged by the introduction of IFRS. • Continue to report for our non-life business an operating profit incorporating a longer- term investment ret

16. Slide 16: External developments

    External developments 16 © Aviva plc

17. Slide 17: IFRS still changing

    IFRS still changing • There remain areas of uncertainty due to continued activity by standard setters, these include: - Endorsement of final standards - IAS 39 Fair value exposure draft - Investment funds/OEICs/SICAVs - Reporting investment performance through operating profit - Pensions exposure dr

18. Slide 18: Aviva's future communication plans

    Aviva’s future communication plans 18 © Aviva plc

19. Slide 19: Future communication plans

    Future communication plans IFRS conversion well advanced but uncertainties remain until work complete. We intend to: " Reconcile shareholders’ funds at 1 January 2004 under UK GAAP Year to those under IFRS within our 2004 Annual Report and Accounts End and preliminary announcement. 2004 " Present fu

20. Slide 20: Wrap up

    Wrap up 20 © Aviva plc

21. Slide 21: Wrap up

    Wrap up • There remain areas of uncertainty. However overall: - Phase I principally an accounting technical change to MSSB reporting; - Sustainable IFRS reporting disciplines established; - Do not expect impact on MSSB shareholders’ funds to be significant; - Do not expect IFRS to impact our dividen

22. Slide 22: Aviva

Aviva — Investor Presentation (September 2004) on 6ix