Agenda. United States: New Avenues for Growth. > IA American today. > Proposed acquisition iti of American-Amicable

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Wesley Foster
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1 United States: New Avenues for Growth M.B.A., FSA, FCIA A partner you can trust. 1 Agenda > IA American today > Proposed acquisition iti of American-Amicable A i > U.S. growth strategy and opportunities 2

2 IA American Today > 1982 Acquired a foothold in the U.S. through IA Pacific > Operated from Vancouver > 2008 Acquired licenses in 49/50 states through the purchase of United Family Life > Rebranded IA American > Relocated to Scottsdale AZ > 2009 Launched new products to target mid-income market > Life and annuity products A U.S. platform for growth 3 Current U.S. Operations > Based in Scottsdale, Arizona > 35 employees: accounting, legal l and actuarial Year ended December 31, 2009 > Distribution through MGAs and independent agents > Geographic concentration in Southwest U.S. Lines of Business Individual Annuities > Sales: US$29.9 M 1 > Premiums: US$58.8 M > AUM: US$300 M Individual Life > Sales: US$1.3 M 1 > Premiums: US$13.0 M 4 1 First-year annualized premiums

Launched new products to target mid-income market > Life and annuity products A U.S.

3 American-Amicable (A-A) > Announced agreement to acquire A-A on April 28/10 > A-A A founded d in 1910; based in Waco, Texas > Licensed to sell life insurance in 49 states and territories > Markets life insurance products to families and seniors > Multi-state distribution > 6,300 independent agents > Concentrated in the Southern portions of the U.S. Fits strategy to expand in the U.S. life insurance family market. 5 Strategic Rationale > In our core life insurance business and family market > Provides immediate scale and presence > Country-wide distribution network > Experienced management team > Prudent risk management and cost efficiency Provides multi-state platform for recruiting new distribution, adding new products and expanding geographically. 6

4 Transaction Overview > Purchase of all outstanding shares of A-A > Cash consideration of ~$145 M (excess capital $45 M) > Financed from available cash > Price/BV of 1.25x and P/E of 11x over 5 years (CGAAP) > Immediately accretive to EPS by $0.05 annually > Impact of 9% on solvency ratio > Pro forma Q1 of 214% vs. 223% at quarter-end > Expected closing in the summer of Behind the Success of A-A > Simplicity of products > Efficient i marketing strategy t > Prudent risk management > Quality control and cost efficiency > Good top and bottom lines A strong track record and distinct culture built over many decades 8

05 annually > Impact of 9% on solvency ratio > Pro forma Q1 of 214% vs.

5 Target Markets Average Target 2009 Face Customer Sales Market Products Amount Age (US$Million) Family Term, UL $50, to Senior Whole Life/Final Expense $10, to Government & Worksite Term, Modified WL $40, to Note: Until 2006, A-A marketed to the U.S. military but exited this market following an investigation into its sales practices. A-A was required to pay $10 M in compensation to policyholders under a multi-state settlement. Distribution System American-Amicable Individual Marketing Organizations 66 Final Expense Marketing Organizations 54 Agents Agents 3,069 2,882 Worksite Marketing Organizations 10 Agents 214 Government Marketing Organizations 6 Agents 194 A robust multi-state network of over 6,300 sales agents 10

A-A was required to pay $10 M in compensation to policyholders under a multi-state settlement.

6 Distribution by Region First-Year Annual Premiums by State Less than $250,000 = $250,000 <$1,000,000 = $1,000,000 <$3,000,000 Puerto Rico > Premiums are well distributed across the U.S. > Concentration in TX, CA and Southeast > Strong presence in the Caribbean, in particular Puerto Rico > Strong opportunity to gain market share in underpenetrated geographic regions > Upper East Coast, Midwest and West Coast 11 New Business by Target Market 1 ($Million) Senior Family Government & Worksite 12 1 Excluding military

> Concentration in TX, CA and Southeast > Strong presence in the Caribbean, in particular Puerto Rico > Strong opportunity to gain market share in underpenetrated

7 A-A Operating Highlights > US$7.1 B of life insurance in force > Average policy face value of US$33.5 K > Average annual sales 1 of US$24 M > 5-year CAGR of 13% in current markets > Total premiums of US$88 M in 2009 As at December 31, 2009 Solid business focused on the small policy life insurance market 13 1 First-year annual premiums A-A Balance Sheet > Total assets of US$687 M at 2009 year-end > Debt-free balance sheet > Portfolio repositioned in anticipation of acquisition > Invested primarily in low-risk, fixed income securities > Capital and surplus: US$76.5 M at 2009 year-end > RBC ratio at approx. 600% on a CAL, or Company Action Level, basis > Financial strength ratings upgraded to A- (Excellent) by A.M. Best in March

life insurance market 13 1 First-year annual premiums A-A Balance Sheet > Total assets of US$687 M at 2009 year-end > Debt-free balance sheet > Portfolio repositioned in anticipation of

8 U.S. Competitive Landscape > Broader array of competitors than in Canada > Approx small to mid-sized i d lifecos in this space > Mostly privately held, small mutuals > IA American focused on lower to mid-income market > Currently under-served > Less competitive environment than many other market segments in the U.S. 15 Competitive Environment Small to Mid-Sized Lifecos (US$Million) Rank Company Assets Book Val. Premiums 1 Mutual of Omaha 16,957 2,099 3,481 2 Americo Life 5, Forethought 3, Kansas City Life 3, Foresters 2, Assurity Life 2, United Home Life 1, IAA/American-Amicable 1, Columbian Mutual Baltimore Life Lincoln Heritage Oxford Life Note: Based on U.S. statutory results as at December 31, 2008

environment than many other market segments in the U.S. 15 Competitive Environment Small to Mid-Sized Lifecos (US$Million) Rank Company Assets Book Val.

9 Combined A-A and IA American December 31, 2009 A-A IA American Combined Employees Lines of business Distribution Individual Insurance 6,300 Individual Insurance Annuity 1,900 Individual Insurance Annuity > 8,200 agents in 44 states and territories Assets (AUM) $687 M $474 M $1.2 B Premiums $86 M $72 M 1 $158 M Policies 211,500 66, ,222 Significantly increases our footprint in the U.S Life insurance and annuities U.S. Expansion Strategy > A-A opens the U.S. playing field > A large market with more opportunity > A strong base on which to build > No change to IA business model > In line with IA risk management profile > Actuarial to be monitored from Canada > Investment portfolio to be managed from Canada > Priority is to grow top line from existing operations 18

2 B Premiums $86 M $72 M 1 $158 M Policies 211,500 66,722 1 278,222 Si

10 Organic Growth Opportunities > Additional upside to life sales and total premiums at A-A > Solid track record: 5-year CAGR of 13% > Former owners required top/bottom line balance > IA brings financial capacity to grow top line > Focus on enhanced distribution and product offering > Solid fixed annuity business at IA American > US$300 M in assets > Steady growth in premiums over the last 4 years 19 Question Period United States 20

to grow top line > Focus on enhanced distribution and product offering > Solid fixed annuity business at IA

11 On Solid Ground for Continued Growth Industrial Alliance Investor Day 2010 A partner you can trust. 21

Old Mutual. Acquisition of Fidelity and Guaranty Life Launch of Americom. 26 April 2001

Old Mutual. Acquisition of Fidelity and Guaranty Life Launch of Americom. 26 April 2001 Old Mutual Acquisition of Fidelity and Guaranty Life Launch of Americom 26 April 2001 Speakers London Mike Levett Old Mutual - Chairman and Chief Executive Jim Sutcliffe Old Mutual Chief Executive, Life