Goldman Sachs European Financials Conference...

Goldman Sachs European Financials Conference

Growth Opportunity in Ireland

David Went, Chief ExecutiveIrish Life & Permanent plc

Barcelona June 2006

Agenda

2 Goldman Sachs European Financials Conference

Drivers of Growth

Target markets

Irish Life – Strategy & Delivery

Growth Today

Growth Tomorrow

•j

•j

•j

•j

•j

Wealth Creation


20,000

40,000

60,000

80,000

100,000

120,000

1997 1998 1999 2000 2001 2002 2003 2004 2005

Fig

ures

in 0

00s

Source: ESRI

Average GDP Growth 7.4% p.a.

Employment Growth


1,000

1,200

1,400

1,600

1,800

2,000

1997 1998 1999 2000 2001 2002 2003 2004 2005

Fig

ures

in 0

00s

Source: ESRI

35% Increase in Employment

Baby Boomers Come of Age


0 50,000 100,000 150,000 200,000 250,000 300,000 350,000

0-4

10-14

20-24

30-34

40-44

50-54

60-64

70-74

80-84

90-94

Ag

e

Source: ESRI

900,000 in 20-34 year

cohort

Inward Migration


0

10

20

30

40

50

60

70

80

1987 1989 1991 1993 1995 1997 1999 2001 2003 2005

Fig

ures

in 0

00s

Source: NCB

Inflow

Outflow

Public Policy Support


•j

•j

•j

Policy support for long and short term savings

Extensive tax incentives for pensions

Low taxation on investments

Sensible regulatory environment

•j

Market Opportunities

8

Drivers Financial Needs Demand

Baby Boom/ Migration + Mortgages = Life Protection / Savings

Employment Growth + Rising incomes / bonuses = Investments / Pensions

SME success + Wealth management = Pensions

Asset appreciation + Inherited wealth = Investments


Irish Life

•j

•j

Products Distribution Market

Packaged Investment Products • Savings • Brokers • Individuals• Pensions• Bonds • Sales Force • Co.Directors

Protection Products • Mortgage • Bancassurance • Self-employed• Family

• Employees


Irish Life Market Share

10

Retail Market Share 22.6% in 2005

Irish Life +6.5%

Bank of Ireland +4.4%

Ark Life -7.4%

Hibernian -4.4%

Share winners/losers over last 5 years

•j


Why?

11

Distribution

Reach

Depth

Technology

Point of Sale

After sales service

Brand

Customer Proposition

Investment story


Distribution Reach & Depth

12

Productivity Segmentation Buy in Selling Direct Selling ptsb& Process from Bank Sales process process

Direct Sales Brokers Bancassurance Onesource Institutions


Technology Investment

13

• Electronic Sales Process• Engaging customer experience• Every activity measured• Fully integrated with Call Centre

• Online application and underwriting• High quality service experience• Trebling new business processing productivity

• Integrated customer centric Back Office system• Enable launch of self service facilities• Doubling existing business productivity

CR

MeP

OS

Bac

kO

ffic

e


Brand -Treating Customers Fairly

14

Product Transparency

• Only financial company in Ireland or UK to have

“Plain Englished” full product range.

Needs-based advice

• Award winning Siebal point of sale advice process

• 94% of customers say they would recommend

Customer Satisfaction

• Focus on doing best what matters most to customers

• Customer Satisfaction Index increased +2.6% to 79.1% in 2005

• Staff profit share payout linked to improvements in customer satisfaction


Brand - Investment Competence

15

•j

•j

•j

ILIM - Moneymate Awards

Fidelity

Bloxham

Property

•j


Brand - Promoting Consensus


Strategy

17

Market Share Gains

+

Growth in Value of New Business

Distribution

+Technology

+Brand


Growth Today

18

2005

Sales +33%

Market Share +1.4%

Life VNB +72%


Growth Tomorrow


200,000

220,000

240,000

260,000

280,000

300,000

320,000

2005 2010 2015 2020 2025 2030

Fig

uer

s in

000

s

2,000

2,400

2,800

3,200

3,600

4,000

Source: ESRI

Ireland (rhs)

EU-25

Active Population: Ireland v EU

“Economy has potential to grow at between 4–5% a year until 2010.”

Growth Tomorrow

20

External Retail Results

Mortgages

New Distribution

Pensions

SSIAs

•j

•j

•j

•j

Irish Life Best Placed


Demographics drive mortgages

0

20

40

60

80

100

1971 1976 1981 1986 1991 1996 2001 2006 2011 20160

20

40

60

80

100

Housing Supply & Demand

Over 25 Completions (rhs)

Source: NCB


Adding Retail Distribution


Newinstitutionalpartner with

102 branches / agencies

New Wealth boosts pensions

23

0

50

100

150

200

250

300

350

400

450

1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th

Pension Fund

Domestic Services

Hotels & Expenditure Abroad

Private Health Insurance

Meals Away from Home

Clothing & Footwear

Entertainment

Mortgage Repayments & Home Insurance

Personal Services

Food

Rent & Other Charges

Fuel & Light

Tobacco

Spending by Income Decile

Source: NCB


SSIA opportunity


Please contact our Investor Relations Department for any further

information or visit our group website at www.irishlifepermanent.ie

Contact details:

Barry Walsh [email protected] +353 1 704 2678

Orla Brannigan [email protected] +353 1 704 1345

Contact Information


Goldman Sachs European Financials Conference...

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