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News Release 27 May 2021 AVIVA PLC Q1 2021 TRADING UPDATE * AVIVA fin ▸ Strategic delivery and continuing momentum as we look forward with growing confidence Record quarterly Savings & Retirement net flows and highest Q1 sales¹ in General Insurance for a decade • • Core Life PVNBP of £ 8.3bn ( Q120 : £ 8.3bn ) with growth in Savings & Retirement and lower volumes of Annuities & Equity Release in a subdued market compared to a strong start in 2020 Core General Insurance gross written premiums ( GWP ) up 4 % to £ 2.0bn ( Q120 : £ 1.9bn ) and COR 90.6 % ( Q120 : 118.7 % ) Workplace Adviser Platform Annuities & ER GI Commercial Lines GI Personal Lines £ 1.5bn £ 1.4bn Net flows + 26 % Net flows + 29 % Q120 : £ 1.2bn Q120 : £ 1.1bn £ 1.0bn PVNBP ( 52 ) % Q120 : £ 2.2bn £ 868m GWP + 11 % £ 1,123m GWP ( 1 ) % Q120 : £ 784m Q120 : £ 1,136m Strategic delivery with 8 businesses sold for £ 7.5bn with proceeds expected by end of 2021 • Now completed disposals of Aviva Vita and Turkey and signed the Sale & Purchase Agreement in France following conclusion of the consultation processes • Substantial return of capital to shareholders following completion of the announced transactions Significant financial strength • • Solvency II shareholder cover ratio of 209 % ( FY20 : 202 % ) and centre liquidity ( Apr 21 ) of £ 2.9bn ( Feb 21 : £ 4.1bn ) Solvency II debt leverage ratio of 28 % ( FY20 : 31 % ) reflecting successful £ 1bn tender in Q121 with a further reduction of 2 % reflecting £ 0.9bn of upcoming maturities expected in the second quarter Greater focus on improving the performance of the business . • Core controllable costs² ( excluding cost reduction implementation and IFRS 17 costs ) of £ 720m ( Q120 : £ 725m ) on track to achieve savings of £ 300m relative to our 2018 baseline in 2022 Investment in organic growth and simplifying the business where we see clear benefits for shareholders Amanda Blanc , Group Chief Executive Officer , said : " We made very good progress in the first quarter . We concluded the refocus of our portfolio , selling eight non - core businesses which will generate total cash proceeds of £ 7.5 billion once completed . We have made excellent headway in reducing leverage with debt reduction of £ 1.9 billion in the first half of 2021 and we expect the leverage ratio to be around 26 % at the half year . We are now focused on improving the growth and profitability of our businesses in the UK , Ireland , Canada and Aviva Investors . We are pleased with the growing momentum in key areas as we capitalise on our leading market positions . Net flows in Savings & Retirement increased by 31 % and Aviva Investors is seeing improving flows and investment performance . Demand for bulk purchase annuities was subdued in the first quarter but we have seen a good start to the second quarter . Sales in commercial insurance continue to grow strongly , up 13 % in the UK and 6 % in Canada , while in UK personal lines we maintained premiums while growing market share . We have continued to support our customers dealing with COVID , including extending cover and deferring monthly payments for those experiencing financial difficulty . Our positive trading performance in the first quarter of 2021 reinforces our confidence in the targets we announced earlier in the year . Nevertheless , we remain sharply focused on further improving performance , recognising we still have much more to do , to deliver stronger returns for our shareholders . " 1 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 , which are APMs and further information can be found in the ' Other information ' section of the Preliminary Announcement 2020. Reference to record Q1 sales refers to core Gl markets in the UK , Ireland and Canada . 2 Core controllable costs include core markets ( including Aviva Investors discontinued operations in France and Poland ) , corporate centre and other Group operations . * This announcement contains inside information . The person responsible for making this announcement on behalf of the Group is Kirstine Cooper ( Group Company Secretary ) . Aviva plc Q1 2021 TRADING UPDATE 1