Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711)MLIC-LD Overview Mexico India Australia U.K. Study Methodology Overview Study of International Employee Benefits Trends Australia

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711)MLIC-LD Australia – Profile India U.K. Study Methodology Overview MARKET PROFILE  16 th largest global economy 37  GDP of $681 billion 38  Annual national income per capita: $35,  Developed economy, capitalist system  Dominated by services sector (70% of GDP) 40  Working age population (ages 15-64) expected to grow from 13.7 million in 2005 to 15.5 million in  Median age 36.7 years 42  Life expectancy at birth: 80.6 years 43

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711)MLIC-LD Australia – Profile BENEFITS AT A GLANCE  Superannuation is a government-regulated, mandatory retirement savings program for all Australian workers; 9% of employee salary is contributed annually by employers; additional contributions are voluntary. 44  All superannuation funds have an investment component; many also have, on either a voluntary or mandatory basis, an insurance component: term life, disability and income protection. 45  Employees may purchase additional insurance benefits if offered, and costs are deducted from their investment account. 46  Government covers all Australians, but private health insurance is common. 47

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711)MLIC-LD Australia – Employer Perspective In 2007, 61% of Australian employers surveyed experienced difficulty in finding the right people to fill jobs, up from 32% in 2006 and significantly above the global average of 41% 53 TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES RETAINING EMPLOYEES AUSTRALIA: MOST IMPORTANT BENEFITS OBJECTIVES OF ALL EMPLOYERS INCREASING EMPLOYEE PRODUCTIVITY INCREASING EMPLOYEE JOB SATISFACTION ADDRESSING DIVERSE NEEDS OF EMPLOYEES HELPING EMPLOYEES MAKE BETTER BENEFITS DECISIONS ATTRACTING EMPLOYEES HELPING EMPLOYEES MAKE BETTER FINANCIAL DECISIONS REDUCING HUMAN RESOURCES ADMINISTRATIVE COSTS 89% 87% 82% 71% 68% 64% 66% 65% Percentages have been rounded to nearest whole number. Australian employers are feeling pressure to attract and retain talented workers.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711)MLIC-LD Australia – Employee Perspective Percentages have been rounded to nearest whole number. TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES OUTLIVING RETIREMENT MONEY AUSTRALIA: EMPLOYEES’ TOP CONCERNS ABOUT RETIREMENT BEING ABLE TO AFFORD HEALTH CARE IN RETIREMENT YEARS HAVING TO WORK FULL-TIME OR PART-TIME TO LIVE COMFORTABLY IN RETIREMENT YEARS PROVIDING FOR YOUR SPOUSE/PARTNER’S LONG- TERM CARE NEEDS PROVIDING FOR YOUR OWN LONG-TERM CARE NEEDS 49% 44% 43% 39% 38% HAVING ENOUGH MONEY TO TAKE CARE OF ELDERLY PARENTS OR IN-LAWS 29% 43% understand retirement needs 42% planned for retirement 42% determined life insurance needs 35% determined income protection needs 41% of Australian employees surveyed hope to retire in their 50s – 45% in their 60s, given their ambitions plans for retirement and long life expectancy, most Australians are worried about having enough money to afford it.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711)MLIC-LD Australia - Conclusions Study Methodology Benefits Strategies for Tomorrow, Today Australia’s superannuation funds have succeeded in providing workers with fundamental coverage for retirement and family protection in case of disablement, but this success appears to have bred a degree of complacency among workers when it comes to savings and insurance. However, the need for additional financial advice and education about their value opens a door for growth in employer- provided benefits. As employees become aware that economic and demographic realities could threaten their visions of financial security and retirement lifestyle, they will increasing look to augment their current superannuation coverage. This will provide an opportunity for employers looking to improve employee retention rates, as well as for super funds looking for ways to grow their asset base:  In creating benefits plans, employers should first focus on educating employees about financial risks and appropriate coverage.  Financial planning services will likely prove appealing to the large share of Australian employees that are worried about paying for retirement but have done little to prepare.  Employers may find good results in constructing benefits packages that provide a high degree of personalization, with offerings that span insurance, investments and work/life options.