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		</div><p>The Norwich-based firm said the exceptional charge to its full-year post-tax profits recognises the &#8220;magnitude of the change in policy and the potential for future revisions to the discount rate to cause unnecessary volatility in Aviva’s results&#8221;.</p>
<p>Lord Chancellor Liz Truss surprised the insurance market on Monday by putting forward changes to the Discount Rate calculation, which is expected to increase payments given to victims of life-changing injuries through medical negligence, car crashes and other incidents.</p>
<p>Ms Truss said that from March 20, the rate would be cut from 2.5% to minus 0.75%, reflecting the changes in gilt yields.</p>
<p>Aviva was one of a number of insurers to see its shares plummet following news of the announcement, alongside Admiral and Direct Line.</p>
<p>On Tuesday Aviva said: &#8220;After careful consideration given the uncertainty of the ultimate outcome, Aviva expects to take an exceptional charge to its 2016 IFRS profit after tax of approximately €450m.&#8221;</p>
<p>Aviva assured the move would not impact its operating profit, although it will knock two percentage points off its Solvency II capital ratio, a key measure of financial stability for insurers.</p>
<p>Rival Direct Line said on Monday the move was expected to reduce its pre-tax profits by between €215 and €269 million after reinsurance recoveries.</p>
<p>Esure also updated the market on Monday and said the discount rate announced was lower than it had allowed for and would see a further net impact of €1m in 2017, while Admiral warned over a total impact of up to €205m.</p>
<p>The Association of British Insurers has described the decision to change the way personal injury claims are calculated as &#8220;crazy&#8221;, warning it would have a huge impact for individuals, businesses and public bodies.</p>
<p>It estimates up to 36 million individual and business motor insurance policies could see premiums hiked as a result of the changes.</p>
<p>It is feared young drivers in particular could struggle to find affordable insurance.</p>
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