Changing Face of FinancialServices Selling in Ireland

Willie HolmesWednesday 9th February 2011

2

3 Reasons for Hope

1. Strong Demand1. Strong Demand

3. Distribution Strength3. Distribution Strength

2. Need for Advice2. Need for Advice

3

Pensions

► Complex Business

► From Wealth Management to Retirement Planning

► Ageing Population

4

Pensions

And as this graph shows 26% of the population will be over 65 by 2041

0

5

10

15

20

25

30

1926

1936

1946

1951

1961

1966

1971

1976

1981

1986

1991

1996

2006

2011

2016

2021

2026

2031

2036

2041

65+

co

ho

rt a

s %

of

tota

l p

op

.

11%

26%Population is getting older - Significant increase in 65+ cohort from 2016 on -

5

Savings & Investments

Lump Sums

Regular Savings

6

The Lost Decade for Equities

Annualised 10 Year Return in Local Currencyto 30th Sept 2010

-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

World Europe USA Japan

Source: Factset

• “Returns in the 10 years after a ‘lost decade’, defined as any 10-year period in which US equity returns were below the rate of inflation, average out at a healthy 11 per cent per annum in real terms,” according to Fidelity”

Past Performance is not a reliable indicator of future performance

7

Savings & Investments

Lump Sums

Regular Savings

8

Life Assurance

€1,000,000,000 in Claims* paid in last 3 years€1,000,000,000 in Claims *

…paid in last 5 years

*Irish Life Stats 2006 - 2010

9

Life Assurance

Monthly cost of €500,000 Life Cover for 20 years

Age* 1981€

2011€

%

30 84.77 28.51 -66%

40 225.10 66.86 -70%

*Next birthday; non smoker; Irish Life rates

10

Technology

From ratebook to iphone!

From ratebook to iphone!

11

Distribution

Increased Regulation

Brokers have largest Share

Fee vs. Commission2009 2010

(H1)

Brokers 67% 63%

Banks 17% 20%

Direct 16% 17%

12

Characteristics for Success

Integrity Pride

Confidence Leadership

Love for the Customer

ResiliencePlanningEnergy

Communication