Goldman SachsEuropean Financials

Conference

Presentation by

David Went, Group Chief ExecutiveIrish Life & Permanent

Puerto Banus, Spain 8 June 2005

� Ireland’s growth prospects

� Life & pensions market

� Distribution channels

� Bancassurance model

� Current developments

2

3,000

3,200

3,400

3,600

3,800

4,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

‘000 Population growth of 13%

Source: CSO3

1,000

1,200

1,400

1,600

1,800

2,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

‘000 Employment growth of 62%

Source: CSO4

0

20,000

40,000

60,000

80,000

100,000

120,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

€m

* Source: CSO/NCBConstant 1995 Prices GDP

GDP growth of over 125%

5

0

20,000

40,000

60,000

80,000

100,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

€ Household debt/GDP now 60%

Source: NCB6

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

€ Life annual premium growth of 240%

Source: IIF7

3,000

3,500

4,000

4,500

5,000

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

‘000

Source: CSO

22% increase by 2020

8

1,800

2,000

2,200

2,400

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

‘000

Source: NCB

21% increase by 2020

9

10

Company

Irish LifeBoI LifeAIB - Ark LifeAvivaZurichCanada LifeFriends FirstStandard LifeRoyal LiverAnglo IrishOthers

Retail

20.8%25.0%11.3%10.2% 7.8% 6.8% 5.0% 4.9% 3.8% 2.5% 1.9%

Distribution

Bancassurance IFA DSFBancassurance IFA DSFBancassuranceIFAIFAIFA DSFIFA First ActiveIFAIFA DSFBancassurance

* 2004

Retail &Corporate

24.6%23.5% 8.6%10.6% 8.0% 6.3% 6.7% 5.0% 2.8% 2.8% 1.1%

11

CHANNEL

Size

Market

Products

DIRECT BUSINESS

250 Advisers130 Franchises

Broad middle market

ProtectionPRSAInvestments

BANCASSURANCE

100 ptsb branches70 Consultants400 Branch Staff

ptsb customers

ProtectionInvestmentsPRSA

PARTNERSHIPS

Credit Institutions

Broad middlemarket

Protection

IFAs / BROKERS

1,000 brokers -multi agents &authorised advisers

Mass affluent

InvestmentsPensions

12

2000

1998

Bancassurance IFAsDirect Partnerships

2002

18%

10%

9%45%

48%

26%

42%

35% 9%31%25%

2004 31% 9%32%28%

1313

15.7

17.6 17.6

18.6

19.7

20.8

0

100

200

300

1999 2000 2001 2002 2003 200415

16

17

18

19

20

21

22

%€m

Retail sales Retail market share14

� Loss of market share to bancassurers in 1990s� Merger with Irish Permanent in 1999

� Direct access to own branch network� Ended First Active tied agency

� Acquisition of TSB Bank in 2001� Full service retail bank� Expanded customer base

Acquisition of own network

15

Sales 2004

No. of branches

Sales per branch

€55.1m €100.2m €126.6m

100 280 290

€551k €358k €437k

16

� Provider of “white label” products to other creditinstitutions

� Displaced other providers� Principally protection products tied to mortgages� Lower product penetration than own branches

Access to other networks

17

� Total integration into banking activities� CRM technology support� Sales processes / lead generation� Activity management� Strength of product offerings

18

� Total alignment of objectives / targets� no room for ambiguity

� consultant / branch manager / staff

� Incentives based on targeted branch product mix

� Huge investment in staff training� 400 licensed counter staff

� 70 financial consultants

19

� Single system for sales, prospecting, diary etcintegrated with bank systems

� Single customer view

� Electronic factfind / needs analysis / financial review atpoint of sale

� Marketing database populated from customer bankrecords, financial reviews, life policies

� Centralised campaign management, lead generationand diary management

20

Mass Affluent

HighNet

Worth

Mass Market

SegmentsSegments PropositionProposition WhoWho

Portfolio / Expertise and Service

Full Financial Review

Simple Product Based

Private Client

Financial Consultant

Branch Staff

21

� Modular� Simple� Single needs based� Focus

�Regular Savings� Investments (<€25k)�Mortgage Protection

� Lead generation

� Full financial review� Complex� Total Customer/Needs based� Focus

� Pensions� Protection� Higher end Investments

� Limited prospecting

Branch StaffBranch Staff Financial ConsultantFinancial Consultant

22

� 1,200 approx. leads generated per week for branch

network� Central contact centre - 40%� Branch staff - 40%� Consultants - 20%

� Best quality leads direct from branch sales ‘triggers’

� Rigorous activity management to track conversion

ratios

23

� Comprehensive review� Full written report to

customer within 2 days� Compliance automated� 95% Customer satisfaction

rating� 92% say they would

recommend to their friends

The Ultimate Customer Experience

24

� Simple and jargon free - “Crystal Mark”

� Transparent charging

� Appropriate products for risk profile of customers

� Recognised leading brand to support products

� Strong product innovation

� Multi-manager - sole distributor for Fidelity in Ireland

25

2001

Investment PensionProtection Savings

2002

63%

59%

51%

5%

5%

13%

6%33%10%

8%

19%

28%

2003

50% 13%17%20%2004

26

2005 (F) 37% 22%20%21%

26

� Centralising branch administration& automating transactions

� Transforming network intodedicated sales outlets

� Checking account key platform forcustomer acquisition

� 1,000 new customers per weeksince launch

� Expanded opportunity for cross-selling

27

� Ireland - a great place to be in business

� Continuing demographic dividend

� Distribution reach key to success in market

� Bancassurance - well executed - a proven model

� IL&P determined to be a winner

28

A copy of this presentation, the 2004 annual report and other financialinformation are available on our group website www.irishlifepermanent.ie

For further information, please contact:Barry Walsh

Head of Investor RelationsTel: +353 1 704 2678

Email: investor.relations@irishlife.ie

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