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Aviva USA Field Update

MDL 1712 August 25, 2009

Aviva USA Settles Class Action Annuity Cases Aviva USA recently settled with annuity class plaintiffs in a litigation proceeding called MultiDistrict Litigation (MDL) 1712. Under no circumstances does Aviva USA consider this settlement an admission of liability or wrongdoing. Aviva strongly disputes the plaintiffs' claims, and believes in its legal position and the propriety of how Aviva and its distributors conduct business. In fact, the overwhelming majority of our customers remain extremely satisfied with our products and the producers who sell them. "This settlement is a sound business decision for Aviva because it eliminates the costs of a potentially long legal battle," said Mark Heitz, president of sales and distribution for Aviva USA. "Litigation is full of uncertainties and it distracts from the important business of our company. With this behind us, we can more fully focus on delivering the high quality service and products producers require to meet their customers' needs." Lawsuit details In the MDL 1712 proceeding, plaintiffs alleged that American Investors and AmerUs Life Insurance Co. (now Aviva Life and Annuity Company), and certain producers and marketing organizations, sold annuities that were unsuitable for their purchasers and failed to disclose material characteristics of the company's deferred annuity products, including surrender charges and/or deferral periods. The settlement includes all people who purchased or owned deferred annuity products that were issued by American Investors or AmerUs Life Insurance Company from 1998 through July 28, 2009--the date the court issued its preliminary approval of the settlement. Deferred annuities are and will continue to be a valuable product Recent market performance and economic events have shown that these products are sound and valuable. Aviva USA works hard to ensure consumer confidence across the country and is an industry leader in appropriate sales and marketing practices for annuity products. While many Americans experienced a significant decline in their retirement savings during the recent market downturn, none of Aviva's deferred annuity customers have lost any principal or credited interest due to the recent market turmoil. This is due to the fact that deferred annuities protect customers from risk of market loss. 1

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Next steps In late August 2009, a class notice will be sent to all policyholder and former policyholders affected by the class settlement. In addition, shortly before the class notice is sent, all active agents will receive notice of the settlement, along with instructions regarding what they should do if clients contact them about the settlement. It should be noted that producers are prohibited from providing any advice to customers related to this case or settlement. At this stage of the settlement process, if contacted, you should inform customers that they will be contacted via mail if they are part of the settlement class. They will also be able to find detailed information about the settlement online at www.MDL 1712settlement.com. In the meantime, you should refer any questions from your customers about the case, the settlement or the settlement class directly to the settlement administrator call center at 1-877506-4027 (1-866-494-8402 for the hearing-impaired). Thanks to our valued distributors Aviva USA's IMOs and producers play a critical role in meeting our customers' financial needs. We will continue to closely work with you to maintain sales and marketing practices that are the best in the industry. Less than one percent of Aviva USA's customers have complained to the company about its products, which we believe underscores the effectiveness of our suitability programs. We remain committed to delivering on our promise to help our customers and distributors achieve prosperity and peace of mind.

Thank you for your ongoing efforts on behalf of Aviva USA.

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