Enterprise Scorecard Workshop Results 12/17/98 Review Document

Enterprise Scorecard Objectives: Win through people, Grow profitably, Create value Financial Perspective Learning & Growth Customer Perspective Internal Process Perspective Growth in target market segments vs. plan Alignment - Included in plan Technology ROI Expense measures (e.g.Ttl general expenses as % of Ttl prem.; Investment expense ratio) Employee survey results PDP’s completed for all leadership & % employees Bench strength ROI (employee) Incentive alignment Earnings growth Unleveraged GAAP ROE RBC Capital plan ALM Product & distribution mix Policies under administration Sales (Premium) vs. plan ROI (static & dynamic), Product GAAP ROE Retention (Policyholders, Agents, “Partners”) Customer Satisfaction Index Rating within peer group To be an innovative, growing, high performance, public financial services enterprise that makes the future better for all our stakeholders.

Enterprise Scorecard - Next Steps Objectives: Win through people, Grow profitably, Create value To be an innovative, growing, high performance, public financial services enterprise that makes the future better for all our stakeholders.

Financial Perspective Enhanced Economic Value Quality Earnings Consistent with Plan Quality ROE Consistent with Plan Capital & Risk Management Balanced Portfolio of Business Earnings growth Unleveraged GAAP ROE RBC Capital plan ALM Product mix, distribution mix (vs. industry) Critical Success FactorsProposed Measures

Customer Perspective Expand Customer Base & Penetration of Existing Customers Develop Products that Deliver True Value to the Customer and Enterprise Provide Quality Service Meeting Customer Needs Maintain Minimum Rating Policies under administration Sales (Premium) vs. plan ROI (Static & Dynamic) Product GAAP ROE Retention (Policyowners, Agents, Partners) Customer Satisfaction Index Rating within peer group Critical Success FactorsProposed Measures

Process Perspective Alignment of Products, Services and Delivery to Target Market Segments Optimize Technology and Infrastructure Efficient and Effective Business Fundamentals Critical Success FactorsProposed Measures Growth in target market segments vs. plan Alignment - Included in plan Technology ROI Expense measures (e.g. Total general expenses as % of total premiums, Investment expense ratio, Total expenses as % of assets)

Learning & Growth Perspective Employee Satisfaction Plan for Developing Current Leadership & Leadership of the Future Education and Training Recruiting & Retention Well-Aligned Incentives Critical Success Factors Proposed Measures Employee survey results PDP’s completed for all leadership Bench strength ROI (Employees) % PDP’s completed for all employees Incentive alignment

Recommendations for “Beta” Version  Measures and CSFs –Reduce # of measures for Capital & Risk Management CSF to 1 –Consider moving Balanced Portfolio CSF to Financial Perspective –Consider moving Expand Customer Base & Penetration of Existing Customers to Financial –Narrow measures of Develop Products that Deliver True Value to the Customer and Enterprise to 1  Assign Owners –Ask for current results where applicable –Begin target setting (short term and long term) –Determine length of targets (1/4, 1 year, 2 years?)

Changes to “Alpha” Version  Expense/Capital Management changed to Capital & Risk Management, Moved to Financial Perspective, 3 measures proposed  Additional Learning & Growth Measures provided

Measurement Dictionary

Measurement Dictionary Template (1 of 2) Measure: ________________________________________Owner: _____________________________ Perspective: ______________________________________Availability: Yes No Critical Success Factor: _____________________________ Data Source: _________________________ Definition: ________________________________________ ________________________________________ Formula: ______________________________ ______________________________ Frequency: DailyQuarterly WeeklyAnnually MonthlyOther:___________ Graphical Depiction Current Results: ________________________ Target Results: Short Term: ___________________ Long Term: ___________________ Alternative Measure(s): __________________ __________________ Comments: ________________________________________ ________________________________________ ________________________________________ Benchmark Internal External Source: _______________________________

Measurement Dictionary (2 of 2) Measure: ________________________________________Owner: _____________________________ Other Characteristics: