21st Services Customer Advisory Board Investor Subcommittee Meeting Vince Granieri, FSA, MAAA, EA Chief Actuary, 21st Services September 9, 2008

Introduction and Welcome – Jack Kettler Agenda – Jeanne Bailey Historical perspective – Steve Walker –2005 changes –2006 changes 21st Services’ process – Vince Granieri 2008 VBT – Vince Granieri –2008 VBT and their impact –21st Services proprietary changes to 2008 VBT Agenda

21st Service’s emerging experience – Vince Granieri Getting ahead of the curve – Vince Granieri –Mortality improvement Examples of LEs using the 21st Services 2008 Mortality Tables Implementation and logistics – Steve Walker Current research: CDRG – Jack Kettler, Paul Kirkman –Actuarial perspective on CDRG – Vince Granieri 21st’s Data Subscription Service – Vince Granieri Agenda (continued)

21st Services’ Process Macro focus was indicated based on available data Changing the mortality tables, not the underwriting system, or our underwriting objectivity All unique LEs before 12/31/07 2 independent actuarial firms were consulted

2008 VBT More senior data than the 2001 VBT –LIFE INSURANCE COMPANY valuation table –Conservative for them is not conservative for you Grades to general population mortality at older ages 21st Services’ proprietary changes to 2008 VBT –Eliminate small face, paramedical u/w –Add back high face policies

21st Services’ Emerging Experience Volatile results More data, but not enough Changing market Key question: Trend or outlier?

Getting Ahead of the Curve Mortality improvement Eroding debits for all Explicit mortality improvement factors for non-smokers

Examples of LEs using the new 21st Services 2008 Mortality Tables

Mortality Table Development Spreadsheet Example: Male, NS, 150% Multiplier, Age 70 Current LE: New LE: Increase: 29% 15.1% due to 2008 VBT 5.5% due to 21 st Services modifications to 2008 VBT 2.9% due to 21 st Services early duration experience 5.5% due to explicit future mortality improvement assumptions 29%

21st Services Mortality Study Subscription Service An exclusive service for our best clients Lease our proprietary mortality tables – Includes any changes 2 updates from the CDRG study 1 or 2 21st Services’ A/E studies 2 white papers Custom study opportunity LE price lock in at current market rates

Contact Information: Vince Granieri