Western Financial Group2009 Year End Financial Results

Conference Call

March 17, 2010

Forward-Looking StatementsThis presentation contains certain forward-looking statements. Forward-looking statements include, without limitation, statements regarding the future financial position, business strategy, budgets, litigation, projected costs, capital expenditures, financial results, taxes and plans and objectives of or involving Western Financial Group Inc. (the “Company”) or its subsidiaries. Many of these statements can be identified by looking for words such as ‘‘believe’’, ‘‘expects’’, ‘‘expected’’, ‘‘will’’, ‘‘intends’’, ‘‘projects’’, ‘‘anticipates’’, ‘‘estimates’’, ‘‘continues’’ or similar words. The Company believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties only some of which are described herein. Many factors could cause the Company’s actual results, performance or achievements to, or future events or developments to, differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the risk factors, which are discussed in greater detail in the ‘‘Risk Factors’’ section of the prospectus. Any forward-looking statements are made as of the date hereof and the Company does not assume any obligation to publicly update or revise such statements to reflect new information, subsequent events or otherwise.Non-GAAP MeasuresThroughout this presentation, the Company may use the term ‘‘operating income’’ to refer to earnings, including investment income, before interest expense, taxes, depreciation and amortization of intangible and capital assets, excluding gain (loss) from the sale of assets and income (loss) from equity investments. The Company uses ‘‘operating income’’ to assist it in measuring corporate performance before the costs of capital and amortization of capital and intangible assets. Operating income is not a measure recognized by GAAP and does not have a standardized meaning prescribed by GAAP. Therefore, this measure may not be comparable to similar measures presented by other issuers and investors are cautioned that it should not be used as an alternative to ‘‘net income’’ or other measures of financial performance calculated in accordance with GAAP.

Today’s Remarks• Operational progress in 2009

• Top achievements and disappointments in 2009

• 2009 financial review

• Priorities for 2010

Operational Progress in 2009

The Network

• Same store customer count +1.1%• Same store sales +4.2%• Improving loss ratios at insurance companies

in 2nd half cause positive adjustment of $1.0 million to 2009 profit share commission estimates

• Financial Services – Life sales up 20% and accelerating

Acquisitions:• Bakes-Jarvie• H.E.D. – Association/Group Insurance Solutions

The Network

Western Life Assurance• Sales and production increases – all lines except

Creditor• Certificate count growth 6.0% in 2009• Bolt-on product for network is at 6,900+ policies.

Target of 7,500 for Y/E 2009• Western & Affiliates account for $10.6 million (20%

+) of 2009 premium revenue• Signed significant creditor life program – effective

2010

Bank West

• Loan book at $360.5 MM

• AgriFinancial added in 2009

• Non-performing loans – 2.0% at year end

• Specific provisions at 75 bps

• Four core areas emerging

Business Lines @ Dec. 31/09

Point of Sale/Finance-RV Loans-Boat Loans-Power Sport Loans

Specialty Agricultural-Agrifinance-AgriCard

Syndication/Securitizations-Prospera Pools/Syndications-Travellers Acceptance-RIFCO-Waterpoint/SNAP

Relationship/Community Lending-Network Premium Finance-Commercial Loans/Leases-Residential/Commercial/Farm Mortgages-Personal Loans

$105 MM

$85 MM

$45 MM

$125 MM

Top Achievements in 2009

• Network margin

• HED/SecuriCan acquisition

• Western Life growth/profit

• Sunset brand project

• Consumer credit quality

Top Disappointments in 2009

• Bank West loss

• Equity sale – Western Life January 2009

• Agrifinancial flat sales

• Saskatchewan growth

2009 Financial Review

Total Revenue

Overall

2009 2008

Revenue ($)

Income from Equity Investments ($)

Net Income ($)

Earnings per share ($) – Basic

– Diluted

166,076

2,859

15,961

0.22

0.22

124,855

2,172

6,548

0.05

0.05

The Network2009 2008

Commission & other customer revenue ($)

89,144 75,424

Operating expenses ($) 63,261 54,710

Operating income ($) 25,883 20,714

Bank West

2009 2008

Interest & investment income ($) 25,514 18,596

Net interest & investment income ($) 10,349 6,041

Operating & provision expenses ($) 10,894 4,804

Operating income/loss ($) (545) 1,237

Western Life Assurance

2009 2008

Premium income ($) 37,491 31,309

Investment income ($) 3,200 1,614

Policyholder benefits ($) 20,123 14,789

Operating expenses ($) 15,565 13,907

Operating income ($) 5,003 4,227

SecuriCan

2009 2008

Premium income ($) 8,975 -

Investment income ($) 102 -

Policyholder benefits ($) 3,951 -

Operating expenses ($) 3,052 -

Operating income ($) 2,074 -

Impairment on AFS Investments 0 -

Corporate & All Other2009 2008

Other revenues ($) 1,650 1,959

Operating expenses ($) 9,692 9,223

Operating loss ($) (8,042) (7,264)

Impairment on AFS Investments 0 (1,542)

Western Financial GroupHistorical Consolidated ROE

Earnings Per Share

Priorities for 2010

2010 Priorities

• Winnipeg Teamworks

• Sustainable profit / market niche Bank West

• Metro market strategy – P & C insurance

• Network / Partnership expansion

• “Next Step” on EPS growth ladder

Questions