® Registered trademark of The Empire Life Insurance Company. Policies are issued by The Empire Life Insurance Company. Empire Life Class Plus ® Kevin Hendrickson, Account Executive Investments.

2 2 2 Empire Life Founded in 1923 Family controlled: EL Financial – the Jackman family. 45 years experience managing segregated funds Value-oriented, disciplined investment style Emphasis on providing downside protection to build wealth

3 3 MCCSR – 215% as at September 30, 2011— well above minimum requirements A (Excellent) credit rating from A.M. Best as at June 22, 2011 DBRS ratings as at May 2011 Issuer Rating of A Subordinated Debt Rating of A (low) Claims Paying Rating of IC-2 How Empire Life Measures Up. 3

Prolonged low interest rates Volatile capital markets Canadians living longer Backdrop: The Current Environment for Insurers

5 5 5 Empire Life Class Plus Sustainable, predictable, guaranteed income for life. Peace of mind knowing the exact amount of retirement income, every year, for life. Retirement savings are sheltered from market downturns.

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7 7 7 Why Empire Life Class Plus? Sustainable, predictable, guaranteed income for life Client purchases a policy: insurance and an investment $10,000 to OPEN. Open/Registered/Locked-in AND TFSA $$ accepted. 13 funds to choose from LOW MER’s: 2 – 3% Lowest GMWB fees in industry. Income can begin age 65 3 year RESETS. 5% Nominal Bonus. Retirement savings sheltered from market downturns

8 8 75/100 with 10 year maturity Registered/Open/Locked-in/TFSA 23 investment selections Purchase fee options: FRONT END:0 – 5% DSC:5% LOW LOAD:2%

9 9 9 Who can Benefit From Class Plus? Pre-retirees Ages 45 – 65 Want to participate in the markets, but are concerned about market volatility Seek: predictability and certainty in the final stages of wealth accumulation guaranteed, potentially increasing income for life at retirement benefit guarantees to provide shelter from market downturns

10 Who is THE target market for Class Plus? Retirees Ages 65 and older Want to participate in the markets, but are concerned about the volatility Seek: guaranteed, potentially increasing, income for life benefit guarantees to provide shelter from market downturns

11 Taking income later - scenario Sarah plans to retire in 15 years but needs her portfolio to grow before she can retire. You advise her to invest $250,000 in Class Plus. She can increase her future income through the 5% Income Base Bonus in all markets.** When the markets are strong, she can take advantage of investment growth through Triennial Income Base Resets. At 65, she can start receiving guaranteed retirement income for as long as she lives* no matter how the markets perform. *Provided no withdrawals are made from the Contract. **The Income Base Bonus is notional and has no cash value.

12 Taking Income later - scenario Market performance is based on hypothetical rates of return, assuming an annual average rate of return of 0.8%. The chart values are based on year end values of the Income Base after deducting the annual fund fee rate. For illustration purposes, fees are assumed to be 0.75%. Refer to the Empire Class Segregated Funds Information Folder for complete details.

13 Taking Income later - scenario The chart values are based on year end values of the Income Base after deducting withdrawals and annual fund fee rate. For illustration purposes, fees are assumed to be 0.75%, and the market value is based on an historical rate of return using a blend of 80% S&P/TSX and 20% DEX Universe Bond Index, as at December 31, 1989 to December 31, The average annual rate of return corresponding to the chart’s illustrated durations is 9.0%. Refer to the Empire Class Segregated Funds Information Folder for complete details.

14 Help in Down Markets Protection from market declines Retirement During the period immediately preceding or following retirement, if there’s a market downturn, your clients can still receive the annual 5% Income Base Bonus if no withdrawals are made during that calendar year. The guaranteed retirement income for life is not affected by market downturns.

15 How to sell Class Plus Guaranteed RIF for life In years when your clients’ RRIF minimum is higher than the LWA, they have the flexibility to withdraw the RRIF minimum without affecting their future guaranteed retirement income.

16 Guaranteed RIF for life - scenario John is 65 years old and retired. You advise him to invest $300,000 in his RRIF in Class Plus. In the first year, John doesn’t take any income and receives a full 5% Income Base Bonus. The following year he starts withdrawing his guaranteed retirement income for life. In years when his RRIF minimum is higher than his LWA, he has the flexibility to withdraw the RRIF minimum without affecting his future guaranteed income. When the markets are strong, he can take advantage of investment growth through Triennial Income Base Resets *. *Provided no excess withdrawals are made from the Contract.

17 Guaranteed RIF for life - scenario *Provided no excess withdrawals are made from the Contract. The chart values are based on year end values of the Income Base after deducting withdrawals and annual fund fee rate. For illustration purposes, fees are assumed to be 0.75%, and the market value is based on an historical rate of return using a blend of 80% equities and 20% fixed income. The average annual rate of return corresponding to the chart’s illustrated durations is 8.99%. Refer to the Empire Class Segregated Funds Information Folder for complete details.

18 Segregated Funds 75/100 and 100/100 75/100 with 10 year maturity 100/100 with 15 year maturity Registered/Open/Locked-in/TFSA 23 investment selections Purchase fee options: FRONT END 0 – 5% DSC 5% LOW LOAD 2%

19 Empire for Life Loyalty Program Overview *Elite and Elite XL are not currently associated with the program. **The client must hold the assets on the rebate date to remain eligible. 19 WHAT: Investors who own Empire Life Mutual Funds and Empire Life Class Segregated Funds continuously for 10 years, starting January 2012, are eligible to receive a distribution equal to 5% of their annual management fee, starting in 2022.* HOW: Invest in any Empire Life Mutual Funds or Empire Life Class Segregated Funds and remain invested. Begin receiving a management fee distribution equal to 5% on December 31 st of the year in which the investor reaches the 10-year anniversary and every year thereafter.** Help clients reach their goals faster with Empire for Life TM

20 1. Invest the required minimum in Empire Life mutual funds or Class segregated funds, AND 2. Stay invested for a continuous period of 10 years. Empire for Life Loyalty Program Conditions for eligibility: Starting January 9, Class segregated fund contracts are issued by The Empire Life Insurance Company.

® Registered trademark of The Empire Life Insurance Company. Policies are issued by The Empire Life Insurance Company. Thank you for your attention. Questions?