Rudy Maharajh, FSA, FCIA 2008 General Meeting Assemblée générale 2008 Toronto, Ontario Rudy Maharajh, FSA, FCIA 2008 General Meeting Assemblée générale 2008 Toronto, Ontario Canadian Institute of Actuaries Canadian Institute of Actuaries L’Institut canadien des actuaires L’Institut canadien des actuaires

2008 General Meeting Assemblée générale General Meeting Assemblée générale 2008 Group Living Benefits Marketplace Characteristics of Our Company Product Considerations Product Experience to date

2008 General Meeting Assemblée générale General Meeting Assemblée générale 2008 Group Living Benefits Marketplace Prior to 2007: –Brokers, TPAs, consultants, reinsurers –Focus on cost containment –No significant CI sales trends 2007 and thereafter: –Market Pressure – brokers, TPAs, consultants –Increasing trends in illnesses –Focus still on cost containment –Signs of increasing CI sales

2008 General Meeting Assemblée générale General Meeting Assemblée générale 2008 Group Living Benefits Characteristics of Our Company Coverage offered Target market Size of company Size of block of business Resources

2008 General Meeting Assemblée générale General Meeting Assemblée générale 2008 Group Living Benefits Product Considerations: Differentiation Expedite sale with limited work Apply only to employee Cover the top 10 illnesses representing more than 90% of all claims today –Implication is that we cover at least heart attacks, stroke and cancer Pre-existing condition –Minimize anti-selection. Protect the group. Include usual exclusions

2008 General Meeting Assemblée générale General Meeting Assemblée générale 2008 Group Living Benefits Product Main Features: Attach to LTD –The most volatile coverage –Make a compulsory part of the LTD –Offer an amount with no charge Illnesses covered are: Life threatening cancer, heart attack, stroke, multiple sclerosis, blindness, kidney failure, coronary artery bypass surgery, major organ transplant, Alzheimer’s disease, Parkinson’s disease

2008 General Meeting Assemblée générale General Meeting Assemblée générale 2008 Waiver of CI premiums –Waiver of CI premiums (for sum insured greater than $5,000) if LTD premiums are waived – again, keep it simple. No conversion privileges Taxability will follow the LTD –Most of our group is non-taxable – keep it simple When is amount payable? –Full amount payable after a waiting period (survivorship period) of 30 days following the date of diagnosis or at the end of the waiting period, if any, as defined for the condition, whichever is longer. Group Living Benefits

2008 General Meeting Assemblée générale General Meeting Assemblée générale 2008 Group Living Benefits Experience Still too early to tell – launch date was April 1st, 2008 Positive feedback from the market Requests coming in for larger amounts of insurance Spousal/Dependent CI also being requested