1. A.M. Best Company's Insurance Market Briefing Canada Stephen Irwin, Vice President Richard McMillan, Managing Senior Financial Analyst September 8, 2010

2. Company NameAMB #FSR RatingICR Rating Assumption Mutual Life Insurance Company8074A-a- Assurant Life of Canada66882A-a- Aurigen Reinsurance Company66889A- ga- Blue Cross Life Insurance Company of Canada68557A-a- BMO Life Assurance Company66835Aa Canada Life Assurance Company6183A+ gaa Canadian Premier Life Insurance Company66801A-a Canassurance Hospital Service Association66881A- ga Canassurance Insurance Company66878A- ga Co-operators Life Insurance Company6290Aa Empire Life Insurance Company6329Aa First Canadian Insurance Corporation66893A-a- Great-West Life Assurance Company6493A+ gaa Independent Order of Foresters60132Aa+ Industrial Alliance Insurance and Financial Services Inc.6554A ga+ Industrial Alliance Pacific Insurance and Financial Services Inc.6838A ga+ London Life Insurance Company6667A+ gaa Manufacturers Life Insurance Company6688A+ g*aa* Optimum Reassurance Inc.66827A-a- Primerica Life Insurance Company of Canada60156A+ gaa- RBC Life Insurance Company66806Aa RGA Life Reinsurance Company of Canada66817A+ gaa- Sun Life Assurance Company of Canada7101A+ gAa Transamerica Life Canada66805B++bbb+ Unity Life of Canada66847A-a- Wawanesa Life Insurance Company60079Aa Western Life Assurance Company66802B++bbb+ Current Ratings * Rating under review

3. Look Back-Review What we said last year: Low interest rates Stock market volatility Global recovery in question- unemployment still high Canadian currency improving, depending on the day

4. Source: Trading Economics

5. Stock Market Volatility

6. Source: Trading Economics

7. Currency Risk

8. What has transpired? Capital has rebounded Capital markets receptive Debt & other capital raising Lower investment losses Net income-better in 2009 Focus on expense control continues Deployment of liquidity yields better returns Surrender activity still within assumptions Product de-risking

9. Outlook Revised to Stable Outlook is stable, but remains cautious Rating outlook reflects likelihood of negative rating actions easing Does not preclude negative rating actions

10. Areas of Concern Economic weakness returns/Global recovery Interest rate/equity markets Product risk Regulatory/accounting risk International operations

11. Market Perspective Still the Big Three 2010 sales up for the most part Expect capital targets to be higher

12. IFRS It’s almost here! January 1, 2011opening balance sheet Phase I-more limited impact Phase II-more to come New valuation methodology Reaction and options

13. Regulatory Capital OSFI continue to refine capital model Living benefit guarantees Guideline A-4

14. Product Viewpoint Individual products Capital requirements Group products Competition remains aggressive Wealth Management and Retirement products De-risking

15. Life Reinsurance Three major players But, looking for counterparty diversification Individual life re demand robust