Aviva plc

Interim results 2021

12 August 2021

1
Disclaimer and reminders
Cautionary statements
This document 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 uncertain conditions in the global financial markets and the local and international political and economic situation generally; market developments
and government actions (including those arising from the evolving relationship between the UK and the EU); 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 or yield of our investment portfolio and impact our asset and
liability matching; the unpredictable consequences of reforms to reference rates, including LIBOR; 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 (including the impact of Covid-19) on our business activities and results of operations; the transitional, litigation and physical risks associated with climate change; our reliance on information and technology and third-
party service providers for our operations and systems; the impact of the Group’s risk mitigation strategies proving less effective than anticipated, including the inability of reinsurers to meet obligations or unavailability of reinsurance coverage; poor
investment performance of the Group’s asset management business; the withdrawal by customer’s at short notice of assets under the Group’s management; failure to manage risks in operating securities lending of Group and third-party client assets;
increased competition in the UK and in other countries where we have significant operations; regulatory approval of changes to extension of use of the Group’s internal model for calculation of regulatory capital under the UK’s version of 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 and malicious acts (including cyber attack and theft, loss or misuse of customer data); 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 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 tax laws and interpretation of existing tax laws in jurisdictions where we
conduct business; changes to International Financial Reporting Standards relevant to insurance companies and their interpretation; the inability to protect our intellectual property; the effect of undisclosed liabilities, execution and separation issues and
other risks associated with our business disposals; and the timing/regulatory approval impact and other uncertainties, such as diversion of management attention and other resources, relating to announced and future 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, Canada or elsewhere, including the implementation of key legislation and regulation.
For a more detailed description of these risks, uncertainties and other factors, please see the ‘Risk and risk management’ section 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 report are current only as of the date on which such statements are
made.

This report has been prepared for, and only for, the members of the Company, as a body, and no other persons. The Company, its directors, employees, agents or advisers do not accept or assume responsibility to any other person to who this document is
shown or into whose hands it may come, and any such responsibility or liability is expressly disclaimed.

As a reminder
Throughout this presentation we use a range of financial metrics to measure our performance and financial strength. These metrics include Alternative Performance Measures (APMs), which are non-GAAP measures that are not bound by the requirements
of IFRS and Solvency II. A complete list and further guidance in respect of the APMs used by the Group can be found in the 'Other information' section of the Half Year Report 2021. All references to 'Operating profit' represent 'Group adjusted operating
profit’.

2
Strategic progress update
Amanda Blanc

Interim results 2021

Jason Windsor

Q&A

3
Significant strategic delivery and
strong growth in key areas

4
 Delivering on our commitments

Focus the portfolio Financial

Focus theStrength
portfolio
Substantially complete with 8 businesses Interim dividend up 5% to 7.35p
sold for £7.5bn
Debt reduction of £1.9bn in H1 and
Completed disposals of Aviva Vita in Italy c.£1bn additional debt reduction
and AvivaSA in Turkey in H1
At least £4bn of capital to be returned to
Remaining completions expected by end shareholders by HY 2022
of 2021 (subject to regulatory and shareholder
approvals, completion of disposals and
market conditions)
Retained strategic investments in China,
India and Singapore
Including up to £750m share buyback to
commence immediately1

Shareholder return of at least £4bn including up to £750m share buyback to commence immediately1
All footnotes on pages 48-49

5
 Focus is on transforming performance

Our strategic transformation Progress made in H1 2021

To be the UK’s leading insurer by establishing Aviva as • Cash remittances1 up significantly to £1.1bn
the go-to customer brand for all insurance, protection,
savings and retirement needs for all of our customers • Strong growth in target areas of General Insurance and Savings &
Retirement with record half year sales1,2, negating subdued BPA
1 2 3 4 markets

Digitisation, Engaging
Targeted Innovation • Controllable costs3 down 2% and on target to deliver £300m cost
automation & customer
growth reduction in 2022
simplification experience

• Operating profit1 up 17% to £725m

#1 trusted UK insurance brand
• Strong and experienced leadership team now in place

UK financial services leader on sustainability • On track to meet our financial targets and commitments

All footnotes on pages 48-49

6
 Transform performance: Delivering targeted growth
Growth priorities Fundamental trends Delivery

Individual Savings & Ageing population & income in

Individual savings net flows up 48% to £2.8 billion
Retirement retirement gap

Individual responsibility for #1 workplace platform1: AUM up 10% to £89 billion

Workplace Savings retirement and auto enrolment Workplace pension net flows up 8% to £2.7bn

Bulk Purchase Shift from DB to DC and corporate Good performance despite subdued H1 market
Annuities de-risking Confident outlook with £3.7bn written July YTD

Heightened focus on health and

Health & Protection wellness and protection gap Operating profit up 32%

Economic recovery and changing Highest half year GWP in a decade

General Insurance GI landscape UK commercial lines growth of 16%
All footnotes on pages 48-49

7
 Transform performance: Sharp focus on efficiency
Controllable costs down 2% 1
UK General Insurance motor claims

• 65% of motor claims2 processed digitally

Controllable costs excluding cost reduction HY21 • Driving lower costs and indemnity savings vs manual handling
implementation and IFRS 17 costs1

10% • Further savings as digitally processed claims volumes increase

(2)% or
reduction in UK GI
£30m
products Claims FTE Reduction in Aviva repair
Claims TNPS4
requirement cost per claim3 network usage
£1,408m 7ppts to
£1,378m 49 13% £106 +60pts
91%
IT applications
reduced (-7%)

HY20 HY21 UK property footprint reduction

• Achieved 30% reduction in office space by H1

• On track to deliver > £225m cost reduction by end of 2021 against
our 2018 baseline with full £300m in 2022 • Opportunities identified to further reduce space by end 2021

• Focus on delivering top quartile efficiency across all businesses, Office space Expense
through further cost reductions and top line growth reduction saving

491 kft2 £20m p.a.

All footnotes on pages 48-49

8
 Transform performance: Delivering for our customers

Customer Growth and Increased Digital

No.1 UK insurance brand
Satisfaction Engagement

• Extended leadership • 100k (3%) additional

position in the UK Workplace customers to MyAviva mobile
50%
16% ahead of nearest 3.9m app log-ins YoY
competitor
• 300k (9%) additional
• Aviva brand consideration Retail2 GI customers to MyAviva Business
18%
17% higher following April 3.5m log-ins YoY
relaunch1
• UKGI commercial lines
• 87% of retail GI customers MyPension app
rated as the #1 standout 58%
via PCW give marketing usage YoY
insurer by brokers
permissions

The only UK insurer able to serve all customer needs

All footnotes on pages 48-49

9
Transform performance: Delivering for society

Leading UK Financial Services on ESG Infrastructure and real estate investment

First insurer globally to commit to Net Zero by • One of the largest UK real asset managers with £43bn AuM
2040 • £10bn investment committed to UK infrastructure and real
estate by 2023
• Strong early progress delivering £1.4bn in first half of 2021,
Climate-focused partnership for a Net Zero future
including:

Women in Finance Climate Action Group

launched by Aviva

Up 61 places to 16th of 291 insurers globally in

£276m sustainable Debt financing for a ESG-linked credit
Sustainalytics Morningstar ESG risk rating
loan provided to portfolio of offshore swap provided
Bruntwood to deliver wind projects across to Associated
sustainable office the UK British Ports
ESG fund net flows in H1 2021 £324m up 295% spaces
vs. H1 20

10
 Financial strength: Delivering against our capital
framework

• £1.9bn reduction in external debt in H1, SII debt leverage ratio down to
Debt reduction 26%; c.£1bn additional debt reduction expected over time
to <30%
• £0.7bn reduction in internal loan following sales of France and Poland

Shareholder • At least £4bnby HY 20221

returns • Including up to £750m share buyback to commence immediately2

• Maximising our market growth opportunities

Invest for
• Digitisation, automation and simplification
growth
• Strategic bolt-ons

Total divestment proceeds £7.5bn – expected returns and debt repayments announced to date >£7.5bn
All footnotes on pages 48-49

11
 On track to meet our financial targets and commitments

Financial targets

Cash remittances 1
Operating efficiency SII debt leverage ratio
of >£5bn £1.8bn £300m Top quartile <30%
cumulative 2023 On track to deliver net Pursuing efficiency
2021-’23 savings from continuing across all
operations in 2022 businesses1

HY 21: £1.1bn HY 21: controllable costs down 2% 2

HY 21: 26%

Driven by diversified portfolio with clear strategic purpose

Savings &
General Aviva Bulk Purchase
Retirement, Heritage
Insurance Investors Annuities
Protection & Health

Customer acquisition Customer acquisition Enabler of the Group’s Growing long term cash Contributes to
and growth and growth customer and generation current dividends
engine engine sustainability
agenda

All footnotes on pages 48-49

12
 Interim results 2021

Aviva: Confidential
 Growth in cash and profit with strategic delivery

Cash remittances Operating profit

From continuing operations From continuing operations
• Cash remittances of £1.1bn (HY20: £0.1bn)
1

£1,063m
• Strong growth in key areas and operating profit up
1
£725m
17% to £725m £621m

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• Strong Solvency II position, and liquidity of £2.8bn £108m

• Decisive progress on focusing the portfolio HY20 HY21 HY20 HY21

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SII debt leverage ratio SII shareholder cover ratio

debt leverage ratio down to 26%
31% 202% 203%
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All footnotes on pages 48-49

14
 Strong cash remittances and growing dividend

On track to achieve cash remittance target Cash remittances and dividend up

21-23 Target >£5bn

• Cash remittances of £1.1bn (H1 20: £150m)
1

£1.8bn
• Growing towards our £1.8bn ambition for 2023
£1.4bn
• Interim dividend up 5% to 7.35p in line with our
dividend policy of low to mid single digit DPS
growth over time
H1 21
£1.1bn

FY20 FY21 FY22 FY23

Ambitious cash target built on better performance supporting dividend growth

All footnotes on pages 48-49

15
HY21 financial results highlights

Group (including discontinued operations) Continuing operations

HY21 HY20 Change HY21 HY20 Change
£m £m % £m £m %
Cash remittances 1,296 150 764% Cash remittances 1,063 108 884%
SII operating own funds generation 710 632 12% SII operating own funds generation 393 263 49%

Operating profit 1,132 1,225 (8)% Operating profit 725 621 17%
from continuing operations 725 621 17% UK & Ireland Life 545 822 (34)%
from discontinued operations 407 604 (33)% UK & Ireland GI 191 (50) 482%
IFRS (loss)/profit after tax (198) 874 - Canada 229 129 78%
Aviva Investors 19 9 111%
Strategic investments 55 17 224%
Debt, centre & other (314) (306) (3)%

Controllable costs 1,447 1,443 -%

Cost reduction implementation and IFRS 17 69 35 97%
Controllable costs excl.
1,378 1,408 (2)%
implementation / IFRS 17

Strong growth in cash and operating own funds generation underpins confident outlook

16
 UK & Ireland Life

HY21 HY20 Change

£m £m %
Operating profit 545 822 (34)% • Pleased with momentum in Protection & Health and Savings &
Retirement with strong start to H2 for BPAs
- Less: management actions & other 1 (38) 69 -
Excl. management actions & other 583 753 (23)% • Management actions & other1 includes impact of increase in the
- Annuities & Equity Release 265 365 (27)% provision for legacy customer remediation
- Savings & Retirement 73 73 -% • Heritage operating profit of £138m with similar level of profits
- Protection & Health 107 81 32% expected in H2 – profits for the year in line with our c.10% expected
- Heritage 138 226 (39)%
long-term run off (comparative weighted toward H1 with total for 2020
of £321m)
- Ireland Life - 8 (100)%

SII operating own funds generation 217 331 (34)%

Confidence in long term growth opportunity

All footnotes on pages 48-49

17
 Annuities & Equity Release stronger in H2

Annuity & Equity Release sales 1

Operating profit

£7.5bn
H2 5.3% 4.4%
IFRS new business margin
H1
H2: £3.7bn £365m New business
£4.7bn
Existing business
£265m
July: £2.2bn £205m
BPA
£109m £2466m
YTD BPA £3.7bn
H1: £3.8bn
H1 21 BPA: £1.6bn £3838m
H1: £2.5bn £160m £156m

FY20 YTD 21 HY20 HY21

Achieved good market share2 despite lower sales1, reflecting Steady contribution from existing business
subdued BPA market in H1. Increased momentum in H2 with
£3.7bn of BPA new business written year to date. HY new business profit impacted by volumes and low spreads and
weighting of illiquid asset origination toward H2.
Equity release sales1 up 43% to £356m as we adapted to operate
more effectively in a lockdown
All footnotes on pages 48-49

18
 Strong growth in S&R net flows driven by workplace and
adviser platform
AUM and flows Savings & Retirement AUM and profit

£73m £73m
£141bn

£7.8bn £141bn
£5.2bn
£113bn £39bn Operating profit
£128bn £30bn
Platforms
£89bn Workplace
£71bn
IPP

£12bn £13bn
FY20 H1 21 net flows Market HY21 HY20 HY21
movements
and other

Largest workplace1 provider with 3.9m customers, up 100k in Operating profit of £73m flat period-on-period. From HY21
H1 21 operating profit includes revenue on an actual rather than expected
basis; on a like for like basis operating profit increased by an
Adviser platform continuing to perform strongly with net flows estimated 30% relative to H1 20.
of £2.7bn or annualised 17% of opening assets. AUMup 29% to
£37bn (HY20: £28bn)
All footnotes on pages 48-49

19
 Significantly improved profitability in Protection & Health

Sales and new business margin

1
Operating profit

6.6% 7.6%

£107m
£1,292m £1,255m
£81m
New business margin

Sales

HY20 HY21 HY20 HY21

VNB up 12% with margins helped by improved mix in Health Operating profit up 32% benefiting from lower costsand positive
(towards retail) and growth in direct Individual Protection with experience
launch of proposition on PCWs
Renewed 5 year single-tie distribution agreement with Connells
Early success in launch of Expert Select proposition supporting
Health customers up 2.5% since FY20
All footnotes on pages 48-49

20
 General Insurance – UK, Ireland and Canada

Improvement in underlying operating performance Strong growth in GWP and lower COR

HY21 HY20 Change

£m £m % 101.4%
97.2%
Operating profit 420 79 432%
91.6%
Underwriting result 320 (53) -
LTIR and other 100 132 (24)%
£4,366m
GWP 4,366 4,107 6%
COR (%) 91.6% 101.4% (9.8)pp
PYD and weather* (0.5)% (0.6)% 0.1pp
COR excl. PYD and weather (%) 91.1% 100.8% (9.7)pp £4,092m £4,107m

Controllable costs excl. implementation and IFRS 17 546 572 (5)%

Expect COR to be below 94% for the full year as economic activity
continues to return to normal and weather losses in July (in UK and
Canada) offset the benign weather in H1 HY19 HY20 HY21

Growth and strong improvement in underwriting result offsetting lower LTIR

*(unfavourable)/favourable

21
 UK GI – continued profitable growth in commercial

UK GI commercial UK GI personal

HY21 HY20 Change HY21 HY20 Change

GWP (£m) 1,280 1,104 16% GWP (£m) 1,213 1,211 -%
Underwriting (£m) 63 (151) 142% Underwriting (£m) 65 19 242%
COR 93.6% 116.8% (23.2)pp COR 94.2% 98.2% (4.0)pp
PYD and weather* (1.7)% (4.4)% 2.7pp PYD and weather* (0.2)% (0.3)% 0.1pp
COR excl. PYD and weather 91.9% 112.4% (20.5)pp COR excl. PYD and weather 94.0% 97.9% (3.9)pp

GWP growth of 16% driven by strong new business growth, rate GWP maintained with successful launch of Aviva brand on PCWs
increases and high retention levels offset by continued disruption of lockdown on intermediated
distribution partners and a soft rating environment in motor
Strong improvement in COR driven by ongoing rate hardening,
improved underlying performance and offset by significant COR improved owing to frequency benefits in motor and an
adverse impacts of COVID-19 in H1 20 improved underlying performance

*(unfavourable)/favourable

22
 Canada – an excellent H1 performance

Canada GI personal Canada GI commercial

HY21 HY20 Change HY21 HY20 Change

GWP (£m) 1,047 1,029 2% GWP (£m) 614 551 11%
Underwriting (£m) 126 140 (10)% Underwriting (£m) 48 (72) -
COR 87.9% 86.4% 1.5pp COR 90.6% 115.0% (24.4)pp
PYD and weather* 0.8% 3.9% (3.1)pp PYD and weather* (3.6)% (11.7)% 8.1pp
COR excl. PYD and weather 88.7% 90.3% (1.6)pp COR excl. PYD and weather 87.0% 103.3% (16.3)pp

GWP growth of 2% reflects modest increase in policy count with GWP 11% higher driven by new business performance, rate
retention over 90% increases and policy retention

COR remained strong with an underlying improvement to COR improvement reflecting high COVID-19 claims in 2020 and
88.7% but lower positive net contribution from PYD and weather lower catastrophe events

*(unfavourable)/favourable

23
 Aviva Investors – improving profitability and flows

Continuing operations (excl. France and Poland) HY21 HY20 Change

£m £m % Asset Supporting growth in S&R and Annuities
Operating profit 19 9 111% manager
Enhancing Aviva’s ESG offering and credentials
1
for Aviva
Revenue 192 180 7%
Controllable costs excl. implementation costs 168 171 (2)%
Cost income ratio 87% 95% (8)pp
Improving
client
74% AUM > 65%
1 year benchmark 3 years
outcomes (HY20: 47%) (HY20: 57%)
Net flows excluding liquidity funds and cash (£bn) 0.8 (0.6) -
of which External (£bn) 1.1 1.3 (15)%
AUM (£bn) 260 249 4% ESG Climate Transition launches in Global Credit and Real Assets
leadership Top 5 for responsible investment globally

Operating profit growth driven by 7% increase in revenue1 Refocusing the business:

reflecting higher average AUM and asset origination fees • Simpler and more efficient with opportunities for growth
Net flows up to £0.8bn (HY20: net outflows of £0.6bn) with • Key strengths in real assets, sustainable equity, credit and
continued growth in real assets and strong and diverse pipeline multi-asset solutions underpinned by ESG

All footnotes on pages 30-31

48-49

24
 Utilising all of the divestment cash proceeds

Divestment cash proceeds of £7.5bn Capital return and lower leverage

Announced disposals £bn Internal loan Shareholders

£0.7bn in H2 2021 At least £4bn by HY
Singapore 1.1 20221 including up to
France 2.8 £750m share buyback

Italy 1.1 >£7.5bn

Poland 2.2

Other 0.3 External debt

c.£3bn, including £2bn
Total 7.5
repayment completed in
Of which received by HY21 1.9 H1 2021

All footnotes on pages 48-49

25
 Completion of disposals enables return of capital and
further debt reduction

31 December 20 30 June 21 Remaining Illustrative return Pro forma

£bn unless otherwise stated disposals £4bn equity estimated
c.£1bn ext. debt
£0.7bn int. debt

Own funds1 25.8 23.6 (0.5) (5.0) 18.1

SCR1 (12.8) (11.6) 2.3 - (9.3)
Surplus1 13.0 12.0 1.8 (5.0) 8.8
SII shareholder cover ratio 202% 203% 46% (54)% 195%

Centre liquidity2 £4.1bn £2.8bn £5.6bn £(5.7)bn £2.7bn

Solvency II debt leverage ratio 31% 26% 28%

Pro forma Group is financially strong with valuable diversification benefits of c.£2bn
All footnotes on pages 48-49

26
 Implementing the capital return

Substantial return of capital to shareholders Significantly lower leverage and interest

• At least £4bn capital return by HY 2022 1

• £1.9bn debt reduction achieved in H1 2021
• Including up to £750m via share buyback to • Additional debt reduction required to maintain
commence immediately 1
SII debt leverage ratio below 30%, expected to be
c.£1bn over time
• Further details including method of remaining
return to be confirmed at 2021 full year results • Annualised cash interest saving of around
£170m vs 2020
• Preference for reduction in share count
• Internal loan reduction of £0.7bn following sales
• Subject to regulatory and shareholder approvals,
of France and Poland
completion of disposals and market conditions

All footnotes on pages 48-49

27
 Outlook

• Growing annual cash remittances from £1.4bn in 2020 towards our £1.8bn ambition for 2023
Cash
• On track to achieve cash target of over £5bn 2021-23

• Expect reduction in controllable costs of > £225m in 2021 vs 2018 baseline

1

Efficiency
• On track to meet £300m target in 2022 and continue to focus on top quartile efficiency beyond

• Continued strong growth in GI premiums, with full year COR expected to be <94%
Growth • Continued growth in Savings & Retirement and Aviva Investors
• Momentum in BPAs with sales of £3.7bn year to date and margins set to improve

Performance transformation at the heart of Aviva’s strategy

All footnotes on pages 48-49

28
29
Strong progress in transforming performance and
clear focus on where Aviva can win

Leading positions in growing markets across UK, Ireland and Canada

#1 insurance brand in the UK and the insurer able to serve all customer needs

Breadth of offering providing financial, operating and c.£2bn diversification benefits

Aviva Investors with leading capability in ESG and only major insurer to commit to net zero by 2040

Creating value for shareholders, customers and our people

Delivering substantial returns to shareholders

30
Q&A session

Amanda Blanc,
Chief Executive Officer

Jason Windsor,
Chief Financial Officer

31
Investor relations

Coming up … Contact us

13 August Post half year results virtual roadshow Investor relations [email protected]
31 August Jakub Rosochowski +44 (0)7385 382 206
Virtual roadshow
- 1 September
Tegan Gill +44 (0)7800 691 138
21 September Bank of America CEO Conference
Michael O’Hara +44 (0)7387 234 388
11 November Q3 Trading Update
12 January Citi's European Insurance Conference (TBC)

3 March Full year results 2021

Media
Andrew Reid +44 (0)7800 694 276
Sarah Swailes +44 (0)7800 694 859

Aviva In Focus – next sessions in Q421 including UK GI Commercial and Protection & Health
32
Appendix

33
Balance sheet

34
 Solvency II position

Cover ratio 1
202% +3pp +13pp (5)pp (13)pp +3pp 203%

OCG £578m

Surplus 1

£m

Debt & Non-operating Dividends3 Debt issuance /

£m 31 December 2020 BU generation Other 2 Disposals 30 Jun 2021
Centre costs generation (ordinary + preference) repayment

Own funds1 25,770 908 (230) 32 (744) (568) (1,506) (67) 23,595

SCR1 (12,770) (30) (19) (83) 1,092 — — 209 (11,601)

All footnotes on pages 48-49

35
Solvency II return on capital/equity

SII RoE ROE excl. management actions

HY21 HY20 Change
Management actions & Other1 £m £m %
Life new business 262 361 (27) %
0.4% Existing business 242 239 1 %

0.6% Non-life capital generation 404 217 86 %

Debt & centre costs (incl. pref/DCI costs) (249) (284) (12) %
7.6%
Management actions & other1 32 53 (40) %
6.5%
Operating own funds generated (UT1) 691 586 18 %
Opening own funds (UT1) 17,358 16,578 5 %
SII RoE (%) 8.0% 7.1% 0.9 pp

Market SII RoC

UK & Ireland General
UK & Ireland Life Canada Aviva Investors
Insurance

HY20 HY21

All footnotes on pages 48-49 36

 Solvency II sensitivities (Group shareholder view)
Impact on surplus Impact on cover ratio Impact on surplus Impact on cover ratio
Sensitivity HY21 HY21 FY20 FY20
£bn pp £bn pp
Changes in economic assumptions 25 bps increase in interest rate 0.1 3 pp 0.3 5pp
50 bps increase in interest rate 0.2 6 pp 0.6 9pp
100 bps increase in interest rate 0.4 11 pp 0.8 15pp
25 bps decrease in interest rate (0.2) (4)pp (0.3) (5)pp
50 bps decrease in interest rate (0.4) (8)pp (0.8) (11)pp
50 bps increase in corporate bond spread1 0.0 2 pp 0.0 2pp
100 bps increase in corporate bond spread1 0.0 3 pp (0.1) 3pp
50 bps decrease in corporate bond spread1 (0.3) (5)pp (0.1) (3)pp
Credit downgrade on annuity portfolio2 (0.5) (6)pp (0.5) (6)pp
10% increase in market value of equity 0.2 0 pp 0.2 1pp
25% increase in market value of equity 0.6 2 pp 0.5 3pp
10% decrease in market value of equity (0.2) (1)pp (0.2) (1)pp
25% decrease in market value of equity (0.7) (3)pp (0.6) (5)pp
20% increase in value of commercial property 0.7 8 pp 0.8 8pp
20% decrease in value of commercial property (1.0) (11)pp (1.1) (11)pp
20% increase in value of residential property 0.5 5 pp 0.6 6pp
20% decrease in value of residential property (0.6) (7)pp (0.7) (7)pp
Changes in non-economic assumptions 10% increase in maintenance and investment expenses (0.9) (10)pp (1.0) (9)pp
10% increase in lapse rates (0.3) (3)pp (0.3) (2)pp
5% increase in mortality/morbidity rates – life assurance (0.2) (1)pp (0.2) (2)pp
5% decrease in mortality rates – annuity business (1.4) (16)pp (1.6) (16)pp
5% increase in gross loss ratios (0.3) (3)pp (0.3) (3)pp

All footnotes on pages 48-49

37
 Solvency II regulatory own funds tiering and debt leverage

% of own % of own
HY 2021 HY 2020 % of SCR % of SCR HY21 FY20
Regulatory view funds funds Regulatory view
£m £m HY21 HY20 £m £m
HY21 HY20
Unrestricted Tier 1 20,556 20,096 76 % 71 % 137 % 125 % Solvency II regulatory debt2 6,457 8,316
Restricted Tier 1 980 1,335 4% 5% 7% 8% Senior notes 665 1,112
Tier 2 5,477 6,569 20 % 23 % 37 % 41 % Commercial paper 52 108
Tier 31 116 376 —% 1% 1% 2% Total debt 7,174 9,536

Est. regulatory own Est. regulatory own funds, senior

27,129 28,376 100 % 100 % 181 % 177 % 27,846 30,482
funds notes and commercial paper

Solvency II debt leverage ratio 26% 31%

[Regulatory SCR]
(14,975) (16,039)

All footnotes on pages 48-49

38
Debt profile

Restricted Tier 1
Tier 2
Senior

£502m
6.125%

£400m
5.125%

£258m
6.125% 3.375%
6.125%
£500m 3.875%
4.00% 6.875%
8.25%
£263m
1.875% 4.375%
£270m 4.00%
0.625%

All debt instruments have been presented at optional first call dates at nominal values converted to GBP using 30 June 2021 rates.

39
Earnings per share

40
Operating earnings per share

HY21 HY20
Continuing operations
Adjusted operating profit before tax attributable to shareholders’ profits 725 621
Less
- Tax attributable to shareholders’ profit (168) (105)
- Amount attributable to non-controlling interests (10) (10)
- Coupon payments in respect of DCI (net of tax) — (27)
- Cumulative preference dividends for the year (9) (9)
Operating profit attributable to ordinary shareholders from continuing operations 538 470
Operating profit attributable to ordinary shareholders from discontinued operations 287 447
Operating profit attributable to ordinary shareholders 825 917
Weighted average number of shares 3,927 3,923
Operating earnings per share 21.0p 23.4p

41
Basic earnings per share
HY21 HY20
Continuing operations
Adjusted operating profit attributable to ordinary shareholders 538 470
Adjusting items
- Reclassification of unallocated interest 25 26
- Investment variances, short term fluctuations and economic assumption changes (241) 422
- Impairment of goodwill, joint ventures, associates and other amounts expensed — (14)
- Amortisation and impairment of intangibles acquired in business combinations (25) (26)
- Amortisation and impairment of acquired value of in-force business (153) (86)
- Other (47) 6
Profit attributable to shareholders from continuing operations 97 798
Weighted average number of shares 3,927 3,923
Continuing operations - Basic earnings per share 2.5p 20.3p
Discontinued operations
Adjusted operating profit attributable to ordinary shareholders 287 447
Adjusting items (626) (460)
Profit attributable to ordinary shareholders (242) 785
Weighted average number of shares 3,927 3,923
Basic earnings per share (6.2)p 20.0p

42
Assets

43
Total managed assets

Assets by type of liabilities covered Participating assets by type

£m £m

Euro-style
Shareholder funds UK With-profits style
Policyholder funds
Participating funds

Shareholder assets by type

£m

GI, Health & other

Annuity & non-profit

44
Shareholder assets

Shareholder assets by type Corporate debt by rating

Total: £26,326m
£m

Government debt by rating

Total: £26,145m

1%

45
Shareholder assets – corporate bonds and loans

Corporate bonds by industry Loans by type

Total: £32,996m

46
Shareholder assets – Mortgage loans

Mortgage loans Commercial real estate portfolio

HY21 mortgage loans total: £21,684m HY21 commercial mortgage total: £7,251m

LTV (%)

Balance
in arrears (£m)

Loan
interest cover (x)

47
Footnotes (1)
Slide Reference Footnote

5 1. Commencing 13 August 2021

1. From continuing operations

6 2. References to sales represent present value of new business premiums (PVNBP) for our life business and gross written premiums (GWP) for our general insurance business

3. From continuing operations and excluding cost reduction implementation and IFRS 17 costs

7 1. Largest provider of bundled workplace pensions

1. From continuing operations and excluding cost reduction implementation and IFRS 17 costs

2. Personal lines motor claims

8
3. Claim handling and indemnity cost reduction

4. Claims personal lines motor end to end, inc. suppliers

1. Brand consideration higher for the audience exposed to our campaign compared to consideration in those who have not
9
2. Direct and price comparison websites

1. Subject to regulatory and shareholder approval, completion of disposals and market conditions
11
2. Commencing 13 August 2021

1. From continuing operations

12
2. From continuing operations and excluding cost reduction implementation and IFRS 17 costs

1. From continuing operations

14 2. Subject to regulatory and shareholder approval, completion of disposals and market conditions

3. Commencing 13 August 2021

15 1. From continuing operations

17 1. Other includes the impact of capital actions, non-economic assumption changes and other non-operating items

1. References to sales represent present value of new business premiums (PVNBP)

18
2. Aviva analysis including ABI market share data to Q1 2021

19 1. Largest provider of bundled workplace pensions

20 1. References to sales represent present value of new business premiums (PVNBP)

48
Footnotes (2)
Slide Reference Footnote

24 1. Represents Aviva Investors revenue. Further guidance in respect of the APMs used by the Group can be found in the 'Other information' section of the Half Year Report 2021.

25 1. Subject to regulatory and shareholder approval, completion of disposals and market conditions

1. The estimated Solvency II position represents the shareholder view only

26
2. Centre liquidity as at end Feb 21, reported at FY20 results, and Jul 21, reported at HY21 results.

27 1. Commencing 13 August 2021

28 1. From continuing operations and excluding cost reduction implementation and IFRS 17 costs

1. The estimated Solvency II position represents the shareholder view only

35 2. Other includes the impact of capital actions, non-economic assumption changes and other non-recurring items

3. Dividends includes £9 million of Aviva plc preference dividends and £10 million of General Accident plc preference dividends, and £549 million for the final dividend in respect of the 2020 financial year

36 1. Management actions and other represents changes in assumptions and modelling, non-recurring items and non-product specific overheads

The corporate bond spread sensitivity is applied such that even though movements vary by rating and duration consistent with the approach in the solvency capital requirement, the weighted average spread movement equals the headline sensitivity.
1.
Fundamental spreads remain unchanged
37
2. An immediate full letter downgrade on 20% of the annuity portfolio credit assets (e.g. from AAA to AA, from AA to A)

1. Tier 3 regulatory own funds at 30 June 2021 consist of £116 million net deferred tax assets (HY20: £107 million). There is no subordinated debt included in Tier 3 regulatory own funds (HY20: £269 million)
38
2. Solvency II regulatory debt consists of Restricted Tier 1 and Tier 2 regulatory own funds, and Tier 3 subordinated debt

49