Financial Services: New Propositions and Imperatives Jessica Bibliowicz Chairman and CEO, National Financial Partners

Overview About NFP About NFP VisionVision Business HighlightsBusiness Highlights NFP NetworkNFP Network Management Lessons Management Lessons OpportunitiesOpportunities What Makes It WorkWhat Makes It Work Fostering Growth/Protecting ShareholdersFostering Growth/Protecting Shareholders Questions/Discussion Questions/Discussion

NFP’s Vision Be the preeminent distributor of financial services to the high net worth and growing corporate markets Be the preeminent distributor of financial services to the high net worth and growing corporate markets Create opportunities from inefficienciesCreate opportunities from inefficiencies Enable network of financial specialists to maintain entrepreneurialism while leveraging scale Enable network of financial specialists to maintain entrepreneurialism while leveraging scale Align interests of shareholders, NFP firm principals, employees and clients Align interests of shareholders, NFP firm principals, employees and clients

NFP Highlights Leading pure-play high-end financial services distribution company Leading pure-play high-end financial services distribution company Growth from a zero base of revenue in 1999 to more than $500 million during last 12 months Growth from a zero base of revenue in 1999 to more than $500 million during last 12 months Strong performance since 9/03 IPO allowed NFP to complete a secondary offering less than seven months later Strong performance since 9/03 IPO allowed NFP to complete a secondary offering less than seven months later

The NFP Network Scale and reach of 136 owned and more than 180 affiliated firms Scale and reach of 136 owned and more than 180 affiliated firms Acquired and affiliated firms in more than 40 states and Puerto Rico Acquired and affiliated firms in more than 40 states and Puerto Rico NFP firms provide products and services in three primary areas: NFP firms provide products and services in three primary areas: Life insurance and wealth transferLife insurance and wealth transfer Corporate and executive benefitsCorporate and executive benefits Fee-based planning and investment advisory servicesFee-based planning and investment advisory services

Keys to Expanding Distribution Demographics Demographics Growing marketsGrowing markets FragmentedFragmented Acquisition program Acquisition program Selection and due diligence processSelection and due diligence process Economic alignmentEconomic alignment PermanencePermanence Ongoing strategic partner fostering growth Ongoing strategic partner fostering growth Provide access and benefits of scaleProvide access and benefits of scale Ability to diversifyAbility to diversify Best practicesBest practices

The NFP Bridge Benefits to Product Providers Increased access to attractive marketsIncreased access to attractive markets Enhanced distribution efficiencyEnhanced distribution efficiency Access to specialists and market expertiseAccess to specialists and market expertise Opportunity for co- development of productsOpportunity for co- development of products Expanded lineup of productsExpanded lineup of products Superior marketing and technical supportSuperior marketing and technical support Branding and marketingBranding and marketing Benefits of scaleBenefits of scale Synergies across firmsSynergies across firms Benefits to NFP Firms NFP Platform Creates Value for Manufacturers and Distributors Product Providers Distributors (NFP Firms)

Management Opportunities Focusing on growth while remaining disciplined with corporate overhead Focusing on growth while remaining disciplined with corporate overhead AcquisitionsAcquisitions “Same store” revenue growth“Same store” revenue growth Leveraging corporate resources across growing revenue baseLeveraging corporate resources across growing revenue base Educating investment community about NFP Educating investment community about NFP Unique storyUnique story No clear comparable companiesNo clear comparable companies

What Makes It Work Building the right organization Building the right organization No regional management layersNo regional management layers Team approach to coverageTeam approach to coverage Good alignmentGood alignment Limited conflictsLimited conflicts Good transition from financial transaction to strategic benefit of becoming an NFP firm Good transition from financial transaction to strategic benefit of becoming an NFP firm Early wins Early wins

What Makes It Work NFP is a strategic partner not a “holding company” NFP is a strategic partner not a “holding company” Unique acquisition structure Unique acquisition structure Motivates producers with long-term incentives that create shareholder valueMotivates producers with long-term incentives that create shareholder value Allows firms to retain product independenceAllows firms to retain product independence Aligns interests of owners and producersAligns interests of owners and producers Succession opportunitiesSuccession opportunities

Unique Acquisition Model Current Operating Company Becomes Subsidiary of NFP Management Contract Provides for: Earns Management Fees Acquires 100% Principal(s) Are Independent Contractor(s) Principals’ ability to manage business of NFP’s operating company Share financially in growth of business Access to Best Practices and resources of the NFP system Non-Compete / Non-Solicit Covenants Transferable Asset with Value

Fostering Growth… Protecting Shareholders GROWTH:  Compelling financial incentives  Access to strategic advantages Enhanced economics derived through scale Product enhancements Joint business opportunities PROTECTION:  Revenue diversification  Firm diversification  Cumulative preferred earnings structure  Economic alignment  Non-compete / non- solicit agreements

Questions/Discussion How do you help people understand a new business model? How do you help people understand a new business model? How do you develop the right management team? How do you develop the right management team? How do you encourage relationships among a network of highly independent group of entrepreneurs? How do you encourage relationships among a network of highly independent group of entrepreneurs? What’s the key to maintaining an entrepreneurial atmosphere while managing growth? What’s the key to maintaining an entrepreneurial atmosphere while managing growth?