SAVE AS YOU EARN #SAVESMARTER Documents/Aviva/Aviva_SAYE_Irel… · • You cannot change the amount you save. However, you can close your account at any time and have your savings

SAVE AS YOU EARN #SAVESMARTER 2016

Dear Colleague

The Aviva Ireland Save As You Earn (SAYE) scheme is a great way to back Aviva by being an owner of the business in which we work, participate and benefit in our Company’s future, and help create a legacy of which we can all be proud.

It’s a low risk way to save and buy Aviva shares at a fixed price, discounted at the start of the contract, over a period of 3 and/or 5 years. If you choose not to buy your shares your money will be returned to you.

Aviva has made huge strides in the past 3 years. But we have a lot to do before we have unlocked our full potential. We need to demonstrate the full benefits of the composite model for our customers and delivered consistent, reliable growth in profits and dividends. It’s an enticing prospect, but we’re not there yet.

So, I hope you will redouble your efforts as we continue to transform Aviva, and I know you will demonstrate the same dedication, achievement and service as we create that legacy.

I hope you will take this opportunity to join me – and become an Aviva shareholder.

Yours sincerely

Mark Wilson Group Chief Executive Officer

Welcome | Features & Benefits | How it works | Smart savers | Calculator | Our Share price | How to join | Q&As | Key Dates | Contact

Message from Mark Wilson

Features & Benefits

Key Details

• Save a fixed amount between €12 and €500 per month for 3 and/or 5 years

• Savings are deducted from your take home pay; i.e. after Income Tax, USC and PRSI

• At the end of your chosen saving period (Maturity), you can choose to buy Aviva shares at a discounted price, fixed at the start of the plan – the Option Price

Key Benefits

• It’s an easy way to save every month

• You get a 20% discount on the price of Aviva shares (at the time of invitation)

• It’s low-risk: If at the end of your chosen saving period, the Aviva share price is:

> higher than the Option Price – you can buy Aviva shares at the Option Price and then sell or hold them and become an Aviva shareholder

> lower than the Option Price – you can simply take your cash savings back

AV I VA S A V E AS YOU E A R N2016


How it Works

Step 1 - You can choose to save:

€12 - €500 per month for 3 and/or 5 years• These savings are taken directly from your pay, after Income Tax, USC and PRSI

• The first payment will be taken from your October 2016 salary

• You cannot change the amount you save. However, you can close your account at any time and have your savings returned to you. If you do this, you will lose the option to buy shares through the plan

• You can miss up to 6 monthly payments. If you do, the date on which you can choose to buy Aviva shares at the Option Price, will be postponed by 1 month per each missed payment

• Remember, if you are currently contributing into the 2013 3 year, 2011 5 year and/or 2009 7 year, your savings allowance for the 2016 plan will not be affected by your savings contribution amount into any of these plans, as they are approaching Maturity

Step 2 - You choose

At the end of your chosen savings period you can buy Aviva shares at the Option Price• The Option Price is the average of the mid-market closing price of an Aviva ordinary share across the

three days before the plan opens for applications

• A 20% discount is then applied to the average share price and rounded up to the nearest cent

• Whatever happens to the Aviva share price during your chosen savings period, the Option Price will stay the same, regardless of the share price changing

• You can find the Option Price here

More


Step 2 - You chooseDo I have to buy Aviva shares at the end of the 3 or 5 year period?No. You have a choice. You can either:

• Buy Aviva shares at the Option Price OR • Take your savings in cash

What you choose to do is likely to depend on the Aviva share price when your chosen savings period finishes.

How it worksIf at the end of your chosen savings period, the Aviva share price is:

Higher than the Option Price You can use your savings to buy Aviva shares at the Option Price. You can then sell them at the current higher price, or retain the shares and become an Aviva shareholder.

Lower than the Option Price You can simply withdraw your cash savings. You will not have lost a cent. If you did buy shares at the Option Price in this circumstance, you’d be paying more for the shares than their value on the stock market.

How it Works

Don’t panic! You will be sent more information about your options when your savings period is coming to an end.

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#savesmarter

What our smart savers think

“ An easy savings tool. After the first month or so you don’t really notice the deduction from salary, but you do notice the fund on maturity!”

“ I like the scheme because it allows me to invest on attractive terms and having the money deducted straight from my salary makes it easier to save for the future.“

“ I have used the Aviva SAYE every year since I joined Aviva and have sometimes made a handsome profit and other times received my savings back. I have always had plans for the return in the knowledge that I would at least get my contributions back.”

Sarah Faherty

Brian Farley

Rodger Lovel


Savings calculator

Type in the amount you want to save monthly: £

Total 3 year saving: € Total 5 year saving: €

Total share Options Total share Options available after 3 years: available after 5 years:

Select a Maturity price below to see how much your shares could be worth after three or five years!

€5 €6 €7 €8

Share value at Share value at Maturity after 3 years:

€ Maturity after 5 years:

€

Potential gain Potential gainafter 3 years:

€ after 5 years:

€

Savings Calculator

Option Price


€

Our share price


Our Share priceOver the past 3 years, Aviva has made remarkable progress, moving from a turnaround phase to transformation and growth. We have completed the fix phase of the balance sheet. Our Solvency II coverage ratio of 174% (as at HY16) is in the upper part of our working range and we have proven the resilience of our balance sheet and capital position during the recent challenging period in investment markets. We continue to see improvements in our financial performance. At our recent interim 2016 results, we delivered 13% growth in operating profit, 7% growth in value of new business, a 7% increase in general insurance premiums and capital generation on a Solvency II basis was £1.2 billion. We have benefited from the Friends Life acquisition and we are also seeing encouraging progress from our digital and true customer composite initiatives. We have outlined an ambition to increase our dividend pay-out ratio to 50% of operating EPS by the end of 2017. We took a step towards this objective in HY16, increasing our interim dividend per share by 10%. Despite our strong results, we have not been immune from the macro-economic factors that have impacted share price performance for the insurance sector. A subdued outlook for global economic growth, fears about the outlook for corporate insolvencies, record low Government bond yields and heightened uncertainty following the Brexit vote have undermined investor sentiment towards financial firms like banks and insurers. Nonetheless, we retain strong support in the investment community, with a majority of analysts rating Aviva as a “Buy” and the solid HY16 results were important in reinforcing the resilience and quality of our businesses. Aviva is a fantastic company. In my first 6 months here I have seen the passion and focus that people have across the business to make Aviva a success. By focusing on our strategy and sticking to our values, I’m confident that we can continue to deliver excellent results which can in turn deliver returns to shareholders.

Chris EssonGroup Investor Relations Director

How to join SAYE 2016

Online1. Visit our website

2. Enter your Shareholder Reference Number (SRN) (included on your invitation email) and PIN*

3. Follow the simple instructions

If you have never used the Computershare online service you will immediately be asked to change your PIN.

*Your PIN has been sent to you separately by either post or email. If you were eligible to join a previous share plan, a PIN would have been issued to you then. If you cannot remember your PIN, visit the website and click ‘Forgotten PIN?’

Am I eligible to participate in the Aviva SAYE plan?

You are eligible to participate in the plan if you are:

• Employed by a Participating Company • Employed for three consecutive months prior to the invitation date (September 8th) • Remain employed on the date of grant (October 4th)

The Participating Companies for SAYE 2016 are:

• Aviva Group Services Ireland Limited • Aviva Direct Ireland Limited • Aviva Life Services Ireland Limited

I work part-time. Will I be able to participate in the Aviva SAYE plan? Yes. The same limits will apply to you as to full-time employees.

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http://www.computershare.com/aviva

Questions & Answers

Who is the Aviva SAYE plan Administrator?The Aviva SAYE plan Administrator is Computershare Plan Managers (Computershare). You can contact them about the Aviva SAYE plan using the contact details on the contact page.

Where are my savings kept?The monthly contributions deducted from your pay after tax will be transferred by your employing company to an SAYE account opened with Ulster Bank Ireland Limited by Computershare. You can contact Computershare using the contact details at the end of this brochure.

Can I participate while I am on temporary leave (e.g. maternity leave, or sick leave)?You can still join the Aviva SAYE plan, if you are on maternity or long term sick leave. Your payments will be suspended as soon as you start your period of leave.

You can contact Computershare using the details here.If you miss more than 6 monthly payments during your savings period, you will lose your option to buy Aviva shares at the Option Price.

Do I have to join each Aviva SAYE plan each year?You do not have to join every year. However, if you wish to join any savings contracts in the future, you will not be able to save more than the maximum monthly savings limit of €500 in total for all Aviva SAYE contracts.

Can I change the amount I contribute each month?You can miss up to a maximum of 6 monthly payments during the savings contract. If you do,the date on which your contract matures, i.e. the date you can choose to buy Aviva shares at the contract Option Price, will be postponed by one month per each missed payment. You cannot increase the amount of subsequent payments to make up for missed payments.

If you miss more than 6 monthly payments during your savings period, you will lose your option to buy Aviva shares at the Option Price.

What happens if I do not exercise my option within 6 months of the contract Maturity Date?Your option to buy Aviva shares at the Option Price will lapse.

How do I know how much I can contribute if I’m already paying into an existing plan(s)?You can view how much you are currently contributing by logging into the Aviva Share Schemes website.

When applying to join the 2016 plan, you will only be able to enter the amount you have the capacity to contribute.

Any plans maturing in 2016 (including the 2013 3 year plan, 2011 5 year plan or any plans from 2009) will not count towards your savings limit.

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Questions & Answers

What is the tax treatment of my participation in the SAYE?There are a number of personal tax considerations to be addressed.

• Under current legislation, all interest and bonus earned on your savings in your SAYE account(s) are free from Irish income tax, there is no liability on the grant of the option at the beginning of the savings contract, however should you wish to exercise your shares, you will be liable to PRSI and USC on the gain made between the option price set out at the beginning of the scheme and the market value of the shares on exercise date.

• Any dividend income received is taxable (however, you will not be entitled to receive dividends until you have exercised your Option and acquired the shares), and

• Any profit/gain made on the disposal of shares may be liable to Capital Gains Tax. These issues are addressed further below. You should be aware that tax regulations may change in the future and that the value of any tax relief depends on your personal circumstances. If you are in any doubt at all as to what your liability to income and Capital Gains Tax may be, you should seek professional advice.

What if I want to stop making payments and have my savings returned?You may cancel your Aviva SAYE plan contract and have your savings returned to you at any time. For a cancellation form please contact Computershare Plan Managers at [email protected]. Please note, your right to purchase shares at the Option Price will lapse on cancellation.

Do I need to advise payroll of the cancellation?No. Computershare will advise payroll of your cancellation. Your deductions will stop in the month after your cancellation instruction is received, i.e. if you submit your cancellation instruction during August, your last deduction will be taken from your August salary and no deduction will be taken from your September salary. Any overpayment will be returned to you either through payroll or directly to you by Electronic Fund Transfer.

How much interest will I receive when my savings are returned?The amount you receive back will depend on how long you have been saving under your SAYE contract:

• Log in to find the appropriate interest and bonus rate under Plan Documentation.

• No interest is paid on contracts closed within 12 months of the contract start date.

• No bonus is paid on any contracts closed before the contract Maturity Date.

Will any dividends be paid on the Aviva shares I buy through the Aviva SAYE plan?You will not become a shareholder until the end of the contract, and only then if you choose to buy Aviva shares (rather than have your savings returned). No dividends will accrue or be payable until you havebought shares at the end of the contract. Once you become an Aviva shareholder, you will have the same rights as every other Aviva shareholder. You will be entitled to receive any dividends due on your Aviva shares, attend and vote at shareholder meetings.

What if you leave Aviva?


mailto:employee.queries%40computershare.ie?subject=


Leaving Aviva

What if I leave Aviva before my Aviva SAYE plan contract matures?If you leave Aviva before the end of your SAYE contract, you will not lose any of your savings. Normally your option to buy shares at the Option Price will lapse and you can choose to:

1. Have your savings returned to you; or

2. Continue saving until the end of the contract.

If you leave due to:

• retirement • redundancy • injury or disability • the company or business unit in which you are employed

ceases to be part of the Aviva group • any other reason (except misconduct) three years after

the date of grant as shown on your Option Certificate, or for any other leaver reason listed in the plan rules, as well as the choices above, you can choose to:

3. Exercise your option to buy Aviva shares at the contract Option Price within six months of leaving, using the money you have saved to date; or

4. If you have not already made all your payments, continue to save, making payments direct to Computershare, during the 6 month exercise period, in order to increase the number of Aviva shares you can buy as in choice 3.

If you do not exercise your option to buy Aviva shares at the Option Price within 6 months of your leaving date your options will lapse.

If you leave the company you will receive a letter with full details of what options are available to you. You should receive your letter within 6 weeks of leaving. If you do not receive your letter within this time, please email Computershare at [email protected].

What do I do if I join the Aviva SAYE plan but leave after the date of grant (4 October 2016)?As long as your leaving date is after the date of grant, in some circumstances you may still benefit from joining the Aviva SAYE plan.

Where you leave Aviva due to redundancy, retirement, or other leaver reason listed in the rules, your option to buy Aviva shares will not lapse immediately, and you may choose to continue making your chosen Aviva SAYE contribution for up to 6 months from your leaving date. You can then choose to use the savings you have made to buy Aviva shares at the Option Price.

Example: You apply for a 2016 SAYE contract and agree to contribute €500 per month. You are made redundant on 30 November 2016 but choose to continue savings for a further six months and then exercise the option to buy Aviva shares.

If we assume that the market value of an Aviva share on the invitation date is €5, and that the option price is €4 - on the exercise date you sell the shares at a price of €5 per share.

• 6 monthly contributions of €500 = €3,000

• Shares purchased at the option price €3,000/€4) = 750

• Total sale value (750 x €5.00) = €3,750

• Total profit made is €750 (subject to any dealing charges)

Further details of the rules of leaving will be made available in the invitation booklet.

However, the above information is to highlight that even employees about to leave Aviva may find it beneficial to join the Aviva SAYE.

If you are employed by a participating company for 3 consecutive months before the invitation date, 8 September 2016, and remain employed on the date of grant, 4 October 2016, you are eligible to join the Aviva SAYE plan. If you are due to leave the company, as long as your leaving date is after the date of grant, in some circumstances you may still benefit from joining the Aviva SAYE plan. Please read on for further details.


Dates for your diary

Aviva SAYE 2016 Invitation date application period starts

You make the first payment directly from your salary

Closing date – Computershare must receive your application by 5pm on this date

Your first payment is added to your SAYE account

8September

28September

1November


October

Any Questions?

Contact Us

If you have any questions, please get in touch with our specialist team at Computershare.

* Lines are open from 08.30 - 17.30 Monday - Friday (excluding public holidays).

Please note that this communication and its content is for information only. It does not constitute personal, financial or tax advice. Remember that the value of Aviva shares, like any asset, can increase or decrease and you may not get back the amount that was invested. If you are in any doubt as to whether or not this plan is right for you, please seek independent professional advice. In the event of any inconsistency between this brochure and the rules of the Aviva Ireland Save As You Earn Scheme (the Plan) or the relevant legislation, the rules of the plan and relevant legislation will prevail. Any references to taxation are for guidance only. Please note that your participation in the Aviva SAYE plan does not form part of your contract of employment and is governed by and subject to the Aviva SAYE rules. The rules contain specific provisions relating to your rights under the Aviva SAYE plan. There is no guarantee that the Aviva SAYE plan will be operated in future years, or if it is operated, that you will be eligible for participation in it. Copies of the Aviva SAYE rules and prospectus are available on the Aviva Share Plans website at www.computershare.com/aviva.

www.computershare.com/aviva

[email protected]

01 2475413

About Computershare Plan Managers

The Aviva SAYE is administered by Computershare Plan Managers.

You can find out more about Computershare at www.computershare.com or by contacting them using any of the details on this page.



http://www.computershare.com