Part 1 of 4

3 August 2017

AVIVA PLC 2017 INTERIM RESULTS ANNOUNCEMENT

Mark Wilson, Group Chief Executive Officer, said:

1    Represents the shareholder view. This excludes the contribution to Group Solvency Capital Requirement (SCR) and Group Own Funds of fully ring fenced with-profits funds £3.2 billion (FY16: £2.9 billion) and staff pension schemes in surplus £1.2 billion (FY16: £1.1 billion). Includes an estimated adverse impact of a notional reset of the transitional measure on technical provisions (TMTP) to reflect interest rates at 30 June 2017 £0.5 billion decrease to surplus (FY16: £0.4 billion). Also included are the pro forma impacts of the disposal of the Spanish joint ventures and retail life insurance business (£0.1 billion increase to surplus), the disposal of Friends Provident International Limited (£0.1 billion increase to surplus), and the buy-back of the remaining £0.2 billion share capital out of the £0.3 billion announced on 25 May 2017. The 31 December 2016 Solvency II position includes the pro forma impacts of the disposal of Aviva's 50% shareholding in Antarius (£0.2 billion increase to surplus) and an anticipated future change to UK tax rules restricting tax relief (£0.4 billion decrease to surplus).

2    As at end of July 2017. It excludes amounts set aside to meet our £300 million share repurchase programme.

3    In constant currency.

4    The combined operating ratio is now reported on an earned basis. Comparatives have been realigned to reflect this change.

Key financial metrics

Operating profit

Cash remittances and Operating capital generation: Solvency II basis

Expenses

Value of new business: Adjusted SII basis

General insurance combined operating ratio⁵

Profit after tax

Interim dividend

Capital position

1    Other includes other operations, corporate centre costs and group debt and other interest costs.

2    Operating profit is a non-GAAP measure used by management. Refer to the 'Financial supplement' for the reconciliation of Group operating profit to profit after tax and refer to note B7 - Earnings per share for a reconciliation of operating earnings per share to basic earnings per share.

3    FY16 excludes the impact from an outward quota share reinsurance agreement written in 2015 and completed in 2016 in Aviva Insurance Limited (AIL) and the impact of the exceptional Ogden charge.

4    Operating EPS is shown net of tax, non-controlling interests, preference dividends, and coupon payments in respect of the direct capital instrument (DCI) and tier 1 notes (net of tax).

5    The combined operating ratio is now reported on an earned basis. Comparatives have been realigned to reflect this change. See note 5 for details.

6    FY16 includes the impact of the change in the Ogden discount rate, which had an impact of 5.9pp, and excludes the impact from an outward quota share reinsurance agreement written in 2015 and completed in 2016 in Aviva Insurance Limited (AIL).

7    The estimated Solvency II position represents the shareholder view. This excludes the contribution to Group Solvency Capital Requirement (SCR) and Group Own Funds of fully ring fenced with-profits funds £3.2 billion (FY16: £2.9 billion; HY16: £2.7 billion) and staff pension schemes in surplus £1.2 billion (FY16: £1.1 billion; HY16: £0.9 billion) - these exclusions have no impact on Solvency II surplus.

8    The estimated Solvency II position includes an estimated adverse impact of a notional reset of the transitional measure on technical provisions ('TMTP') to reflect interest rates at 30 June 2017, £0.5 billion decrease to surplus (FY16: £0.4 billion; HY16: £nil). Also included are the pro forma impacts of the disposal of the Spanish joint ventures Unicorp Vida and Caja Espana Vida and its retail life insurance business Aviva Vida y Pensiones (£0.1 billion increase to surplus), the disposal of Friends Provident International Limited (£0.1 billion increase to surplus), and the remaining £0.2 billion of the share buy-back announced on 25 May 2017.

9    The 31 December 2016 Solvency II position includes the pro forma impacts of the disposal of Aviva's 50% shareholding in Antarius to Sogecap which completed on 5 April 2017 (£0.2 billion increase to surplus) and an anticipated future change to UK tax rules restricting the tax relief that can be claimed in respect of tax losses (£0.4 billion decrease to surplus). However, under the amended tax rules published on 13 July 2017, this restriction will not be material, and as a result no corresponding pro forma impact is included in the estimated 30 June 2017 Solvency II position.

Group Chief Executive Officer's report

1    Represents the shareholder view. This excludes the contribution to Group Solvency Capital Requirement (SCR) and Group Own Funds of fully ring fenced with-profits funds £3.2 billion (FY16: £2.9 billion) and staff pension schemes in surplus £1.2 billion (FY16: £1.1 billion). Includes an estimated adverse impact of a notional reset of the transitional measure on technical provisions ('TMTP') to reflect interest rates at 30 June 2017 £0.5 billion decrease to surplus (FY16: £0.4 billion). Also included are the pro forma impacts of the disposal of the Spanish joint ventures and retail life insurance business (£0.1 billion increase to surplus), the disposal of Friends Provident International Limited (£0.1 billion increase to surplus), and the buy-back of the remaining £0.2 billion share capital out of the £0.3 billion announced 25 May 2017. The 31 December 2016 Solvency II position includes the pro forma impacts of the disposal of Aviva's 50% shareholding in Antarius (£0.2 billion increase to surplus) and an anticipated future change to UK tax rules restricting tax relief (£0.4 billion decrease to surplus).

Group Chief Executive Officer's report continued

Mark Wilson

Group Chief Executive Officer

Chief Financial Officer's report

1    Represents the shareholder view. This excludes the contribution to Group Solvency Capital Requirement (SCR) and Group Own Funds of fully ring fenced with-profits funds £3.2 billion (FY16: £2.9 billion) and staff pension schemes in surplus £1.2 billion (FY16: £1.1 billion). Includes an estimated adverse impact of a notional reset of the transitional measure on technical provisions ('TMTP') to reflect interest rates at 30 June 2017 £0.5 billion decrease to surplus (FY16: £0.4 billion). Also included are the pro forma impacts of the disposal of the Spanish joint ventures and retail life insurance business (£0.1 billion increase to surplus), the disposal of Friends Provident International Limited (£0.1 billion increase to surplus), and the buy-back of the remaining £0.2 billion share capital out of the £0.3 billion announced 25 May 2017. The 31 December 2016 Solvency II position includes the pro forma impacts of the disposal of Aviva's 50% shareholding in Antarius (£0.2 billion increase to surplus) and an anticipated future change to UK tax rules restricting tax relief (£0.4 billion decrease to surplus).

2    HY16 comparatives have been rebased for the reduction in the internal loan.

3    The combined operating ratio is now reported on an earned basis. Comparatives have been realigned to reflect this change.

Chief Financial Officer's report continued

Thomas D. Stoddard

Chief Financial Officer

1    Represents the shareholder view. This excludes the contribution to Group Solvency Capital Requirement (SCR) and Group Own Funds of fully ring fenced with-profits funds £3.2 billion (FY16: £2.9 billion) and staff pension schemes in surplus £1.2 billion (FY16: £1.1 billion). Includes an estimated adverse impact of a notional reset of the transitional measure on technical provisions ('TMTP') to reflect interest rates at 30 June 2017 £0.5 billion decrease to surplus (FY16: £0.4 billion). Also included are the pro forma impacts of the disposal of the Spanish joint ventures and retail life insurance business (£0.1 billion increase to surplus), the disposal of Friends Provident International Limited (£0.1 billion increase to surplus), and the buy-back of the remaining £0.2 billion share capital out of the £0.3 billion announced 25 May 2017. The 31 December 2016 Solvency II position includes the pro forma impacts of the disposal of Aviva's 50% shareholding in Antarius (£0.2 billion increase to surplus) and an anticipated future change to UK tax rules restricting tax relief (£0.4 billion decrease to surplus).

3    The combined operating ratio is now reported on an earned basis. Comparatives have been realigned to reflect this change.

4    As at end of July 2017. It excludes amounts set aside to meet our £300 million share repurchase programme.

Notes to editors

All comparators are for the half year 2016 position unless otherwise stated.

Income and expenses of foreign entities are translated at average exchange rates while their assets and liabilities are translated at the closing rates on 30 June 2017. The average rates employed in this announcement are 1 euro = £0.86 (6 months to 30 June 2016: 1 euro = £0.78) and CAD$1 = £0.59 (6 months to 30 June 2016: CAD$1 = £0.53).

Growth rates in the press release have been provided in sterling terms unless stated otherwise. The following supplement presents this information on both a sterling and constant currency basis.

Cautionary statements:

This should be read in conjunction with the documents distributed by Aviva plc (the "Company" or "Aviva") through the Regulatory News Service (RNS). This announcement contains, and we may make other verbal or written "forward-looking statements" with respect to certain of Aviva's plans and current goals and expectations relating to future financial condition, performance, results, strategic initiatives and objectives. Statements containing the words "believes", "intends", "expects", "projects", "plans", "will," "seeks", "aims", "may", "could", "outlook", "likely", "target", "goal", "guidance", "trends", "future", "estimates", "potential" and "anticipates", and words of similar meaning, are forward-looking. By their nature, all forward-looking statements involve risk and uncertainty. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in these statements. Aviva believes factors that could cause actual results to differ materially from those indicated in forward-looking statements in the announcement include, but are not limited to: the impact of ongoing difficult conditions in the global financial markets and the economy generally; the impact of simplifying our operating structure and activities; the impact of various local and international political, regulatory and economic conditions; market developments and government actions (including those arising from the referendum on UK membership of the European Union); the effect of credit spread volatility on the net unrealised value of the investment portfolio; the effect of losses due to defaults by counterparties, including potential sovereign debt defaults or restructurings, on the value of our investments; changes in interest rates that may cause policyholders to surrender their contracts, reduce the value of our portfolio and impact our asset and liability matching; the impact of changes in short or long-term inflation; the impact of changes in equity or property prices on our investment portfolio; fluctuations in currency exchange rates; the effect of market fluctuations on the value of options and guarantees embedded in some of our life insurance products and the value of the assets backing their reserves; the amount of allowances and impairments taken on our investments; the effect of adverse capital and credit market conditions on our ability to meet liquidity needs and our access to capital; changes in, or restrictions on, our ability to initiate capital management initiatives; changes in or inaccuracy of assumptions in pricing and reserving for insurance business (particularly with regard to mortality and morbidity trends, lapse rates and policy renewal rates), longevity and endowments; a cyclical downturn of the insurance industry; the impact of natural and man-made catastrophic events on our business activities and results of operations; our reliance on information and technology and third-party service providers for our operations and systems; the inability of reinsurers to meet obligations or unavailability of reinsurance coverage; increased competition in the UK and in other countries where we have significant operations; regulatory approval of extension of use of the Group's internal model for calculation of regulatory capital under the European Union's Solvency II rules; the impact of actual experience differing from estimates used in valuing and amortising deferred acquisition costs ("DAC") and acquired value of in-force business ("AVIF"); the impact of recognising an impairment of our goodwill or intangibles with indefinite lives; changes in valuation methodologies, estimates and assumptions used in the valuation of investment securities; the effect of legal proceedings and regulatory investigations; the impact of operational risks, including inadequate or failed internal and external processes, systems and human error or from external events (including cyber attack); risks associated with arrangements with third parties, including joint ventures; our reliance on third-party distribution channels to deliver our products; funding risks associated with our participation in defined benefit staff pension schemes; the failure to attract or retain the necessary key personnel; the effect of systems errors or regulatory changes on the calculation of unit prices or deduction of charges for our unit-linked products that may require retrospective compensation to our customers; the effect of fluctuations in share price as a result of general market conditions or otherwise; the effect of simplifying our operating structure and activities; the effect of a decline in any of our ratings by rating agencies on our standing among customers, broker-dealers, agents, wholesalers and other distributors of our products and services; changes to our brand and reputation; changes in government regulations or tax laws in jurisdictions where we conduct business, including decreased demand for annuities in the UK due to changes in UK law; the inability to protect our intellectual property; the effect of undisclosed liabilities, integration issues and other risks associated with our acquisitions; and the timing/regulatory approval impact, integration risk and other uncertainties, such as non-realisation of expected benefits or diversion of management attention and other resources, relating to announced acquisitions and pending disposals and relating to future acquisitions, combinations or disposals within relevant industries; the policies, decisions and actions of government or regulatory authorities in the UK, the EU, the US or elsewhere, including the implementation of key legislation and regulation. For a more detailed description of these risks, uncertainties and other factors, please see 'Other information - Shareholder Information - Risks relating to our business' in Aviva's most recent Annual Report. Aviva undertakes no obligation to update the forward looking statements in this announcement or any other forward-looking statements we may make. Forward-looking statements in this presentation are current only as of the date on which such statements are made.

Aviva plc is a company registered in England No. 2468686.

Registered office

St Helen's

1 Undershaft

London

EC3P 3DQ

Contacts