International Roadshow Presentation April

Liberty Life Shareholder structure

3 Liberty Holdings Limited Liberty Group Limited Structure Standard Bank (54,65%) (50,17%) Life AssuranceAsset Management Liberty Personal Benefits Liberty Corporate Benefits Liberty Active (Charter) STANLIB (37,4%) Liberty Ermitage Liberty Properties

Liberty Life People the cornerstone of our business

Liberty Life Overview of business

6 Mix of business (2004) Reversionary bonus Market related (linked) Smoothed bonusNon profit 7% 71% 5% 17% 7% 68% 6% 19% Total new indexed premiums *Total in force indexed premiums * *Indexed refers to recurring premiums plus 10% of single

7 Overview of premiums (2004) Individual Group 85% 15% 76% 24% Total new indexed premiums *Total in force indexed premiums * *Indexed refers to recurring premiums plus 10% of single

8 New individual API premiums by channel API new business Broker37%39% Bancassurance32%26% Agency 20%21% Franchise & other11%14% 100%

9 Source: LOA market share statistics for all life offices Year ended 31 December 2000Year ended 31 December Life insurance operations New individual business market share (including Liberty Active) % Single individual Year ended 31 December 2002Year ended 31 December 2003 Nine months ended 30 September Recurring individual

10 Individual average new recurring premiums 3 months Sep months Sep 2003 % Change All offices (R)2,3011,89621% Large offices (R)2,9922,8595% Liberty Personal Benefits (R) 7,3266,48713% LPB as % of all offices 318%342% LPB as % of large offices 245%227% Source: LOA market share statistics for all life offices

11 Market share – corporate benefits Not comparable due to size of funds targeted Number of schemes: Number of members: Typically funds with 10 to 300 employees Scale of business to change significantly

Liberty Life Our key financial value drivers

13 Driving improved performance through higher ROEV’s ROEV = EV earnings/EV EV earnings drivers  new business profits  managing the in-force - costs - mortality/morbidity - persistency  investment performance Capital management  capital management committee  Capital Alliance  debt

14 Seven key financial measures #DescriptionPerformance 1 New business volume growth as measured by indexed premiums NB volume up 10% on API basis 2 Value of new business and new business margin VNB at R815m up 34%, NB margin at 24% up from 20% 3 Net cash flows+R3638m vs +R4497m 4 Headline EPS460.4cps (+ 33%) 5 Management expenses Renewal cost per policy R248 (+3.5%), Group Manex up 5% 6 Embedded value [EV] per shareEV/ps at R67.25 (+17%) 7 Capital adequacy cover [CAR]CAR cover of 2.1x These items drive ROEV

15 Life insurance operations New business premiums Total +15% to R13 440m Individual life +22% to R11 374m Corporate benefits -12% to R2 066m Indexed new business premiums Total +10% to R4 186m Individual life +11% to R3 544m Corporate benefits +3% to R642m Individual life Corporate benefits 2001 Rm Rm % -12% +11% +3%

16 Life insurance operations Total in force business premiums Total +13% to R20 544m Individual life +21% to R16 359m Corporate benefits -8% to R4 195m Indexed in force business premiums Total +17% to R11 343m Individual life +17% to R8 571m Corporate benefits +18% to R2 771m Individual life Corporate benefits +21% -8% +17% +18% Rm

17 New business CAGR of 11,3% in total new business (5yrs) Consistent market share gains Upper income segment – growing disposable income Standard Bank’s client base presents further opportunities Changing model for corporate benefits business Liberty Active (Charter) for the future New product development unit

18 Value of new business and new business margins* Margins exceeded our longer term average of 18-22% Individual margins range 20-24% Corporate margins range from 6-10% New business margin Value of new business Rm % 14% 18% 20% 22% 24% 26% 28% 30% 17.6% 18.5% 20.3% 19.9% 24.4% *Value of new business divided by indexed new business premium

19 Headline earnings Revenue earnings attributable to shareholders’ funds Operating profit from insurance operations

20 Headline earnings Operating profit from insurance operations: Reasons for volatility and decrease since 2000  10% shareholders’ participation in investment returns  once off items capitalised by valuation basis e.g. expense profits (or losses)  stochastic modelling of guarantee reserves  AC133 (to be followed by IFRS4 and IAS compliance) Other earnings contributors: STANLIB, Liberty Ermitage, trading portfolio and Liberty Properties Return on other shareholders’ investments  equities  bonds  cash/preference shares  offshore

21 Net cash inflows from insurance operations Total -19% to R3 640m Individual life +76% to R5 492m Corporate benefits -234% to -R1 852m R5 492m Net cash inflows from individual life business Net cash inflows from corporate benefits business Life insurance operations Rm R1 852m

22 Net cash inflows from insurance operations Useful when read together with new business growth In-force book is being managed better Customer service drive and STANLIB’s investment performance should improve retention Maturities of property backed products in second half of 2004 of R2bn Total inflows of R22.6bn (2003 R18.3bn) including asset management inflows Rm % Change STANLIB net inflows15,30012,10026% Ermitage net inflows3,6811,653123%

23 Expenses Business structure to be restructured into front and back office eliminating duplication Capital Alliance assists with focusing on efficiencies Expect once off restructuring costs, but enduring benefit Targeting expense cost per policy increase at 4.25% Headcount for Liberty Life & Stanlib reduced by >400 since 30 June 2003, but… Growing headcount in Liberty Active

24 Expenses – controlling headcount 251 people taken on in October 2003 as part of IEB acquisition IT outsourcing and HR restructuring - reduction of 95 people Group expenses increased 5% Maintenance cost per policy increased +3.5% in Liberty and -4.9% in Liberty Active Liberty headcount excluding IEB Liberty headcount including IEB Dec 02Mar 03Jun 03Sep 03Dec 03Mar 04Jun 04Sep 04Dec

25 Embedded value Value of in force business Shareholders’ finds Fair value adjustment BEE impairment Rm

26 Capital adequacy Times covered Times covered incl BEE times

27 Capital management Capital management committee Long-term shareholder portfolio established Successful Liblife B.V. bond redemption Application to the FSB to issue debt - conditional approval received BEE transaction successfully implemented Offer made for Capital Alliance Dividend policy introduced

28 Capital management-dividend policy Objectives:  predictable growth  less volatility  leave room for new business growth  strong capital adequacy Yield on EV per share of approximately 4,75% as a base Going forward – aligned to medium term growth of EV  taking into account: - economic conditions; and - CAR cover >1,5  interim dividend at 40% of previous full year

29 Risks and issues Increasing compliance and regulatory requirements Volatile investment markets Risk averse investors Perception of industry AIDS (not as much an issue for Liberty Life)

30 Some positives are emerging Industry has started recognising its shortcomings Emerging middle class - a reality, but net spenders South African economy - a success story Investors becoming more bullish Good local investment returns Cash being accumulated by investors = opportunity

31 A simple business model Liberty’s business is conceptually simple and generic We develop products We sell products We receive money We invest the money according to product specification We administer according to product specification We pay benefits

32 Focus areas for next twelve months Exciting opportunities Operational restructuring opportunities Capital Alliance  new business  efficiency Products Capital structuring Liberty Active and, as always... people... service … costs

33 Why Liberty Life? Pure, focussed South African life insurance company Strong parent Strong equity play Low smoothed bonus business Improved returns through better capital management and efficiencies A history of delivery

34 Why Liberty Life? High dividend yield at current price Future growth opportunities (market segments) Revised top team – good mix of insurance and general management experience Uncomplicated strategy Share price offers value!

Appendix Insurance industry in South Africa

36 Market capitalisation * Old Mutual (listed on the LSE)R60 667m SanlamR33 598m Liberty Life R17 932m Discovery R11 192m Momentum not listed Competitors *As at 31 March 2005

Total new business I = Individual; G = Group Rm

Indexed new business * *Indexed new business as per embedded value statement Rm

39 Net flow of funds from life insurance operations LibertySanlamOld MutualMomentumDiscovery (Life) Rm

40 Embedded value NAV and subs VIF LGLSLMOMLMOMDSY Rm

41 JSE Securities Exchange statistics 12 months Dec months Dec 2003 Share price (Rand) High67,0057,00 Low 48,0045,00 Closing56,6054,00 Codes Share code LGL I-Net Bridge LGL Bloomberg LGL.SJ Reuters LGL.J.J ISN ordinary sharesZAE

42 Shares traded12 months Dec months Dec 2003 Average monthly volume traded (m)9,08,7 Average monthly value traded (Rm)500,3443,8 Shares in issue JSE Securities Exchange statistics

43 Contact details Myles RuckDeon de KlerkStewart Rider Chief ExecutiveChief Financial Officer Group Executive Investor Relations Tel: Tel: Tel:

International Roadshow Presentation April