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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
2929
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