Western Financial Group 2006 Conference Call

Forward-Looking Statements This 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 Measures Throughout 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 Financial Update Strategic Events

Operational Progress in 2006

WFG Agency Network Same store customer count 4.5%+ Industry pricing flat - Alberta Auto Reduction 3% = < 0.05% of WFG Products per customer account growing to 2.29 in 2006 from 1.77 in 2005 Acquisitions – Growing target environment Good same store customer count – healthy indicator. We already have leading market share in most communities so we are doing well to be growing that market share Industry pricing flat. Premiums charged to customer only up about 1%. Pricing pause. Some mandated by governments. Watching industry pricing closely over the next year. PPCA is growing. Launched new products into network thru WLA. Augmented accuracy of PPCA measurements. Completed acquisitions from ING’s CBL in Edmonton region. Completed partnership with Northcountry in northern BC. Added 10 communities to our map. Lana Wood , CEO of WFGAN augmented mgmt team by adding f/t VP for Northern AB. Should support growth to next level over over 100 agencies.

Western Life Assurance Sales and production Certificate count and growth Bolt-on product for network delayed moving out of test mode Traditional channels (Fed P&C) WLA has seen significant growth from those channels. Seen significant growth from products offered to our network as well. Certificate growth in double digit increase.

Bank West Sales and production Loan portfolio growth record in 2006 $57.9 million Loan portfolio growth – loan pipeline at record high Seeing growth in loan portfolio grow quickly. Growing at 2x the rate at this time in 2005. Product mix continues to be oriented to consumers, mortgages, RV, marine. Broad. 86% of loans taken are in WFG communities. Believe BW making good penetration in our markets.

Financial Update

Total Revenue CAGR 27.0%

Earnings Per Share CAGR 39.3%

Overall 2006 2005 Revenue ($) 82,643 66,641 Income from Equity Investments ($) 2,323 1,357 Net Income ($) 7,988 4,849 Earnings per share ($) 0.22 0.17 Investment business – Jennings strong; on the way to another good quarter for us Operational income – what happened; where did it go ROE same quarter over quarter. Debt to equity down Watching Network closely. Need to change strategy to remain on plan.

The Network 2006 2005 Commission & other customer revenue ($) 46,674 41,515 Operating expenses ($) 32,366 27,139 Operating income ($) 14,308 14,376

Bank West 2006 2005 Interest & investment income ($) 8,214 4,284 Net interest & investment income ($) 2,236 959 Operating expenses ($) 2,018 1,565 Operating income/loss ($) 218 (894)

Bank West – Cash Basis 2006 2005 2004 Operating income/loss ($) 218 (953) (1,124) Amortization of startup ($) - 289 292 General provisions ($) 439 347 189 657 (317) (643)

Western Life Assurance 2006 2005(1) Premium & Investment Income ($) 25,686 18,741 Policyholder benefits ($) 13,595 9,564 Operating expenses ($) 9,510 6,805 Operating income ($) 2,581 2,372 (1) WLA acquired February 28, 2005. Reflects 10 months of operation.

Corporate & All Other 2006 2005 2,069 2,101 7,526 8,250 (5,457) Other revenues ($) 2,069 2,101 Operating expenses ($) 7,526 8,250 Operating loss ($) (5,457) (6,149)

Other Income 2006 2005 Income from equity investments ($) 2,323 1,357 Gain on sale of portion of reporting unit ($) 566 633

Western Financial Group Historical Consolidated ROE CAGR 28.1%

Western Financial Group Debt to Equity Ratio

Western Financial Group Net Income: Equity + Debt

Strategic Events in 2006

Strategic Events in 2006 Completed 5 acquisitions Financings Negotiated acquisition of large BC firm Investment in HED

Priorities 2007 Move toward 2010 – 20 to 25 acquisitions Strengthen Internal Human Resource and Communication Launch Company Wide Reporting Control Systems Take WFG Brand to Next Level Identify & Address Critical 5 year Horizon Issues Preparing for branch expansion program Planning to increase cross sales activity in 2007 Flat pricing environ at Network – causing heavier priority on growth through acquisition. It’s a good time b/c targets will also be experiencing flat growth. Increased focus on sales to current customers. Moving the PPCA number. Always a priority. Incr the # of products exposed to customers in back half of the year. Early call of conv deb. Puts strength in balance sheet. Low level on company well below peer group. Additional incentive to get out and make acquisitions. CFGs – learned re-affirmed openness to cross-selling. Challenged us to bring more value added products. Bring something new and different. Similar to what we are current launching with WFG Owners Endors. Critical illness. Not something competition is offering. CFGs showed this is exactly what customer wants from us. Don’t want blanket offerings. Want something specific that is of value to them. These priorities will continue our focus to stay on plan.

Questions Peter deAuer Q: Return to flat insurance pricing. A few quarters ago ST said flat pricing wouldn’t affect us. Please re-address. Rising customers and same-store sales should have shown increase. Obviously not seeing in first quarter. A: This time last yr not anticipating flat pricing in our market, particularly because we are so insulated. Still continued effects of mandated price decreases that were imposed by Auto reform. Some insurers took voluntary price decr in 2005. Haven’t seen much growth in BC and SK. Traditionally have had some growth. Flat both on govt side, private auto in AB and areas where we anticipated modest growth like home, auto and farm. Auto rate board dealing with price increases next month. This will impact us in subsequent quarters. Today prices up 1%. Where we finish will depend on how big AB auto increases are. SK has put thru an increase in compensation to brokers so we will see that some time. It is retroactive. We are watching to determine this trend. Shouldn’t last more than a couple of quarters. On margin side sss has incr on compensation to employees. In this market not going to see significant widening of margins. Running ahead with expenses at management level and we have seen depressed margins until we complete more acquisitions. Q: How fast will extra salespeople be generating more revenue to cover there additional expense boost. A: New salespeople not contributing to total burden would be in financial services. Fastest growing area of business. Incr in cross-sales in back half of the year. That portion should help sales. In core part of network we are adding mgmt, straight burden to expenses. Q: Does Bank need more staff to process more business than they’ve got? A: No. This will not take materially more people than we’ve got right now. Q: Capital for Bank. As it grows you indicated it would be a voracious user of capital. If you have excess capacity at holding company level can you put in the bank as equity capital? A: We have done that in the past. When founded bank, borrowed the money to put into the bank. We are flexible at the holding company level. As we go forward the bank is growing at a rate that will require us to augment our cash flow possibilities externally. Q: Pace of acquisitions. Added capital now to do that. Pace looking forward? A: We’ve begun to crank up efforts for acquisitions. Letter writing campaign to large target group going out in next couple of weeks. Attending all relevant insurance company conventions. Making personal calls for potential acquisitions. We think it’s a good time. Pause in pricing and people of a mind to sell when time is right. This is a good to sell if you’re going to sell. Reasonable expectations from vendors as well during this market. We’re going to get in there and create opportunities for ourselves and not just rely on premium inflation. Q: Do you foresee anymore transferring agencies from wholly-owned to partially-owned entities? A: We’re settled for now with that. Disposition in RD was right thing to do. We had 2 locations with different priorities so we picked one that mirrored priorities of Network and let the other go that had a very strong mgmt team and goals. We’re done doing that. Over next few years we hope to see investments turn to wholly-owneds. This would have a positive impact on our numbers. James McCreath: Q: Can BW sustain it’s profitability or was Q1 a one-time thing? A: Not budgeted for. Expected in second or third quarter. A bit ahead of themselves. Part of that b/c of good loan growth, lower than expected losses. Next couple of quarters with increased loan funding will make it difficult for them to stay profitable but we are close. They only contributed $6000 to net income. I wouldn’t be surprised to see them fall below the line in Q2 and Q3 but not by much. They are ahead of plan and WLA ahead. Network behind plan. Investments contributing. Graeme Weaver: Q: Dividend when BW is profitable? A: On our agenda for next board meeting in Sept to talk about it. Look at what other companies our size and sector are doing. We expect after Sept meeting or by end of year to have firm direction out to market about our intentions. Longterm no doubt that f/s companies need to produce dividends consistent. Our question is when and how much? Don’t want to rush into anything we can’t sustain. We are turning our minds in that direction. Brian Pow: Q: Declared acquisition strategy. Approach to ones done and go forward basis? A: Won’t depart from established valuation and protocol. Colleagues tend to look at valuations as multiple of revenue. Typically 1.5 to 2x annual revenue. Our history has been closer to 2 b/c we try to buy number 1 or 2 firm in the community. Long history, well established, good staff, etc. Our analysis uses multiple of revenue, but due diligence based on mulitple of EBITDA trailing 12 months. Normalized and actual. Try for 5 to 6.5 x EBITDA. Q: Once acquired how to make more acretive besides top line growth? A: Mature businesses – once they join us after 1 year, they typically grow market share. We have more products than they’ve ever had before. Incr the amount of new business from price shoppers b/c we have more options of companies. Other area of growth is bring agency from 1.4 PPCA up. Typical agency 1.4. We’re up to 2.1. This gives rev growth. Q: Given that this is right environment for acquiring, are competitors also seeing this opportunity? A: More competitive environ than 5 years ago. We’re the clearest alternative in small communities. Credit unions also bidding. Insurance Companies also bidding. Certainly will put best foot forward. Not yet seeing are any changes to acquisition economics. Law of gravity still applying. Seller still choosing for themselves. Our only concern is SK particularly if credit unions pay prices that don’t bare out economically. Not yet seeing that. Q: Because we’re bigger do we need to look for bigger acq to justify the effort? A: We’ve got the capability to take on mulitple acq in multiple communities. We’ll do a number of million dollar transactions rather than a few $5M transactions. Q: BW – as try to be more successful in commercial market, what product are we looking at? A: Any move in comm area will be in asset back lending, equp or building acqu. Generational change or purchase of more land. Shift in holdings from smaller to much larger operators. Focusing efforts through network for good comm customers that may want to finance new or re-finance existing holdings. Terrific success working with RV, Marine dealers to provide customers with financing to buy goods. Establish direct relationships with those and the bank. Q: BW – personal portfolio, typlical client, typical mortgage? A: typical boat and rv customer, RV loan $100K range. Average range around $100K. Boat loans around avg $30K. Customers have good beacon scores. Good customer quality. Auto side avg credit quality taking loans. Growing A mortgage bus slowly. Margins slim. Are growing non-standard mortgage book, taking page from Home Cap doing B mortgages. Customer can’t prove income or new credit history with large down payment. Seeing most growth personal side there. RV/marine strongest growth at BW. Q: Credit quality, kept consistent, provisioning consistent? A: Very little in specific provisions we’ve had to take. The loan book is very very healthy. Portfolio right now, deliquent categories (5) less than 1%. Loan portfolio in great shape. BW goal not to come down on credit quality. Compete with service and price. Reford MacDougall Q: Offering guidance for the year? A: stated between 19-21 cent EPS. Watching network closely off plan. Recd help from BW, WLA and investments. Plans to redouble acq and incr PPCA we still believe we are in that range.

…because we live here.