1. Irish Life Retail Denis Casey, CEO

2. Irish Life Retail zMarket Overview zRetail Business Profile zHorizon Transformation Programme

3. Market Overview Retail Life and Pension sales have grown strongly over the last 4 years C.A.G.R. 20% 27% 1998 m 408 1,647 1999 m 462 2,587 2000 m 552 3,550 2001 m 707 3,418 Regular Single 23%5637219071,049 APE

4. Market Overview zFavourable demographics zSound economy zPublic policy support for private pensions zShift in savings pattern Medium term outlook remains favourable

5. Market Overview Company Irish Life Ark Life Lifetime* Hibernian (CGNU) Canada Life New Ireland* Standard Life Eagle Star Friends First Scottish Provident Royal Liver 2001 Market Share 17.5% 17.1% 12.7% 12.3% 9.2% 6.9% 6.6% 5.2% 5.1% 2.0% Distribution Method Bancassurance IFA DSF Bancassurance IFA IFA DSF IFA IFA Tied Agents IFA First Active IFA DSF IFA * part of the Bank of Ireland Group

6. zThe rise and rise of bancassurance now 40% of the market zConsolidation Big 4 now control 66% of market zMargin Pressure Competition Consumer / Media attention Government : Price capped pensions (PRSA) Market Overview - Trends

7. Irish life Retail Outperforming a Buoyant Market * 2001 sales exclude Government SSIA contribution C.A.G.R. 31% 25% 1998 m 56 303 1999 m 67 460 2000 m 85 747 2001 m * 125 593 Regular Single 29%86115160184 APE

8. Irish life Retail Multi-Channel : Significant shift in Distribution Mix 2001 2000 1999 Bancassurance IFADSFPartnerships 2002(est.) 35% 9% 16% 9% 33% 31% 42%16% 26% 29% 25% 29% 18%45%

9. DSF : Problem Child to Poster Child Distribution Poor productivity, low morale Weak management (processes & people) Concerns about quality New business unprofitable 16 week industrial relations dispute Fundamental overhaul of salesforce - Poor Die Rigorous and relentless management processes operate Productivity trebled over 4 years Targets exceeded for each of last 4 years New business profitable Home Service disposal February 2002 2002: 1997: Intervention:

10. Brokerage : A time of Upheaval zBroker business restructured following 1999 Progressive Life merger zNew faces - renewed focus and enthusiasm zPlugged Product gaps investment manager choice (e.g. Fidelity) With Profit bond (Winterthur-Credit Suisse) zSome rationalisation of broker numbers inevitable as changing regulations impact zWill remain the gateway to High Net Worth customers z Franchise offering launched in 2001

11. Bancassurance : The Rising Star zFastest growing and most profitable distribution channel zSuccess Factors Fully integrated with bank structure Core bank activity MIS and reward systems share and acknowledge success Leveraging resource base - 800 counter staff licensed for simple product sales - Consultants focus on high ticket sales Deployed lifeco sales management practices/know-how Attractive, simple products Prescriptive sales and advice processes to overcome branch staff confidence issues

12. Branch Savings & Investment Planner

13. Advantages of Multi Channel Approach Reach- access to all customer/product segments Flexibility- to grasp opportunities Choice- for our customers Synergy- sharing knowledge & expertise across channels Scale- through aggregation

14. The next Phase in the Journey Irish Life Retail

15. Product Development & Underwriting Enablers : HR, Finance, IT Sales Process Transaction Processing Customer Relationship Mgt Distribution Channel Mgt A radical programme to transform Retail into a world class life assurer

16. Sales Process zA strength often over-played by life companies zOver emphasise the sale - poor ongoing relationship mgt zHistory of inappropriate product sales zAll art, no science - huge seller failure rate ã Prescriptive technology based sales/advice process (Siebel) Selling :

24. Sales Process zA strength often over-played by life companies zOver emphasise the sale - poor ongoing relationship mgt zHistory of inappropriate product sales zAll art, no science - huge seller failure rate ã Prescriptive technology based sales/advice process (Siebel) ã Predictable outcome, consistent experience ã Engaging and value adding for customers ã Value creating for Irish Life - size, quality of sale ã Targeting seller productivity of 250,000 per capita ã 100% usage by controlled channels by year end Selling :

25. Transaction Processing zCreates cost and friction - adds no value zWeakness in most life companies zIrish Life no exception ã Acquired the expertise / know how ã Standardisation & Simplification - the new religion ã Joined up technology Plan ã Replacement of back office systems ã New business underwritten and accepted at Point of Sale ã State of the Art web-enabled technology

32. Transaction Processing zCreates cost and friction - adds no value zWeakness in most life companies zIrish Life no exception ã Acquired the expertise / know how ã Standardisation & Simplification - the new religion ã Joined up technology Plan ã Replacement of back office systems ã New business underwritten and accepted at Point of Sale ã Reduce new business processing costs by 66% ã Reduce inforce processing costs by 50% ã Stripping out layers of follow on costs

33. Customer Relationship Mgt zTraditionally the customer has no voice in a distribution dominated industry zLittle real attention paid to customer satisfaction and customer retention ã Horizon delivers a radical improvement in our customer experience: - advice process - new business acceptance - ongoing relationship management ã New remote call centre established for inbound and outbound calls - centre of excellence ã Siebel platform supports annual customer contact & review ã Pay linked to customer experience/satisfaction

34. Distribution Management zTraditional life company model - hero worship zFocus on outputs - no measurement of inputs zOver reliance on a single management lever - ã Huge emphasis on process - sales and activity management ã Tacograph management enabled by Siebel technology platform ã Targeting 250,000 per capita salesforce productivity ã Re-alignment of remuneration and rewards ã Broker segmentation exercise completed ã New distribution initiatives : Franchise = : Worksite =

35. WORLD CLASS BUSINESS UNDER CONSTRUCTION