1. Liberty Life Presentation to Investment Analysts’ Society of Southern Africa 2 March 2005 www.liberty.co.za

2. Agenda What we said What we’ve done Operating climate Operations Financial results Focus areas for next twelve months Questions

3. What we said … more of the same People Customer service Business structure and efficiency Capital management Product development Financial Sector Charter implementation Domestic operations/other market segments and Africa Distribution channels Implement BEE transaction

4. What we’ve done … people Executive management committee Roy Andersen Hylton Appelbaum Mark Bloom Deon de Klerk Leanne Dewey Themba Gamedze Mike Garbutt Lee Izikowitz Craig Lawrence Andrew Lonmon-Davis Ian Maron Mike Jackson Jim McLean Ron Mitchell David Nohr Dan Pienaar Martin Smale Alan Woolfson

5. What we’ve done … people Executive management committee Roy Andersen Hylton Appelbaum Mark Bloom Deon de Klerk Leanne Dewey Themba Gamedze Mike Garbutt Lee Izikowitz Craig Lawrence Andrew Lonmon-Davis Ian Maron Mike Jackson Jim McLean Ron Mitchell David Nohr Dan Pienaar Martin Smale Alan Woolfson Bruce Hemphill Bobby Malabie Mark Alexander Rex Tomlinson Replaced by Myles Ruck Replaced by Deon de Klerk Not replaced Replaced by Audrey Mothupi Employed Joined ExcoEmployed Replaced by Peter Laburn Replaced by Roger Corlett Replaced by Ian Cadby Replaced by Andrew Lonmon-Davis Not replaced

6. What we’ve done … people Executive management PreviousNew Roy AndersenMyles Ruck Mark BloomDeon de Klerk Dave NohrAndrew Lonmon-Davis Ron MitchellIan Cadby Jim McLeanRoger Corlett Craig LawrenceAudrey Mothupi Peter LaburnNot replaced Mike JacksonNot replaced Themba GamedzeNot replaced Dan PienaarNot replaced Rex Tomlinson Bruce Hemphill Bobby Malabie Mohale Ralebitso

7. What we’ve done … people More new names John SturgeonDivisional director: Corporate finance Christo LandmanDivisional director: Tax Caswell RampheriDivisional director: Properties Jeff HubbardDivisional director: Financial accounting Craig PilgrimDivisional director: Internal audit Stewart RiderGroup executive: Investor relations and strategic analysis David JewellDivisional director: Group actuarial

8. What we’ve done … people 251 people taken on in October 2003 as part of IEB acquisition IT outsourcing - reduction of 70 people HR restructuring - reduction of 25 people 16 Graduates employed under new scheme 3600 3500 3400 3300 3200 3100 3000 2900 2800 3353 Liberty excluding IEB Liberty including IEB Dec 02Mar 03Jun 03Sep 03Dec 03Mar 04Jun 04Sep 04Dec 04 3221 3472 3320 3069

9. What we’ve done … customer service Customer service campaign Internal ombudsman and MD of customer service Internal campaign to staff Noticeable improvement, but a long way to go

10. What we’ve done … business structure and efficiency Implemented during 2004 - benefits not yet fully realised: Group HR IT Group Finance Central Group product development unit formed Central Group customer service unit formed Implemented in 2003 - benefits evident in 2004: Liberty Healthcare rationalised into LPB STANLIB restructure

11. What we’ve done … 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

12. What we’ve done … Financial Sector Charter implementation Board transformation sub-committee established Favourable progress against scorecard Need more black senior managers Black managers’ ownership scheme should help SizweNtsaluba VSP appointed - FSC auditors - STANLIB entities – more to follow

13. What we’ve done … domestic operations, other market segments and Africa Repositioning of Charter Life (now Liberty Active) Bobby Malabie and team developed project Khula during 2004 A build strategy (as opposed to buy) has been developed Expected R50m to R100m investment in the next 18 to 24 months We have some time to get the model right

14. What we’ve done … domestic operations, other market segments and Africa Namibian operation small, but profitable Investigating opportunities in Uganda and Kenya Liberty Life offshore model discontinued Capital Alliance closed book offshore model will be considered in due course

15. What we’ve done … distribution channels Continued focus on broker relationships We’re working on it campaign Regional head office in Cape Town being established Individual life bancassurance model continues to deliver Restructured corporate benefits bancassurance model implemented Focused on productivity of agency and franchise in 2004 - will recruit and develop in 2005 Well established, stable agency force

16. What we’ve done … BEE transaction Implemented on 8 November 2004 Community/educational trust to be finalised in 2005 Black management allocations done General staff scheme in place Timing was good – R1 251m now R1 677m Capital repayments could commence in 18 months

17. Operating climate Increasingly we’ve been dealing with: More compliance and regulatory requirements Low interest rate/low inflation environment Strengthening of the Rand Volatile investment markets Risk averse investors Poor perception of industry (media and consumers)

18. Operating climate (continued) 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

19. Deon de Klerk

20. Rm20042003% Total new business13 44011 667+15 Indexed new business4 1863 808+10 Indexed new business excl contractual increases3 3403 060+9 Value of new business815609+34 New business margin24%20% Net cash inflows from insurance operations *3 6404 497-19 Operational features – 2004/2003 *Maturity of R2 090m in respect of one large client. Excludes STANLIB and Ermitage net cash inflows.

21. 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 2002 2003 2004 12000 10000 8000 6000 4000 2000 0 2001 Rm 2002 2003 2004 12000 10000 8000 6000 4000 2000 0 +22% -12% +11% +3%

22. Life insurance operations Embedded value of new business Total +34% to R815m Individual life +43% to R819m Corporate benefits -110% to -R4m New business EV margins Total = 24% Individual life = 28% Corporate benefits = -1% 2001 Rm 2002 2003 2004 Individual life Corporate benefits 2001 Rm 2002 2003 2004 900 700 500 300 100 -100 R819m -R4m 800 600 400 200 0 -5% 0% 5% 10% 15% 20% 25% 30% +28% -1%

23. Net cash inflows from insurance operations Total -19% to R3 640m Individual life +76% to R5 492m Corporate benefits -234% to -R1 852m 6000 5000 4000 3000 2000 1000 0 -1000 -2000 R5 492m Net cash inflows from individual life business Net cash inflows from corporate benefits business Life insurance operations Rm 20032001 20042002 -R1 852m

24. Source: LOA market share statistics for all life offices Year ended 31 December 2000Year ended 31 December 2001 35 30 25 20 15 10 5 0 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 2004 20 23 24 25 26 15 17 20 25 27 Recurring individual

25. Other operations STANLIB: assets under management and funds under administration Rbn20042003% Life funds 7259+22 Segregated funds 6655+20 Unit trusts 5140+28 Structured products and other 3424+42 Total AUM and FUA 223178+25 Money market as % of total 16%14% Net cash inflows of R15,3 billion Normalised earnings after tax of R192m up 62%

26. Other operations STANLIB: net cash inflows %20042003 Money market and flexi-cash6272 Fixed interest funds818 Equity2916 Other1 -6 Total100

27. Other operations Ermitage: assets under management US$m20042003% Hedge funds 1 5001 131+33 Long-only funds 1 3821 060+30 Money funds 762600+27 Total AUM 3 6442 791+31 Third party funds as % of total funds 41%39% Net cash inflows of US$572m +160% (R3 681m) Headline earnings of £4m +11% (R46m)

28. Financial results – 2004/2003 Rm20042003% Headline earnings per share (cents) 460,4346,4+33 Embedded value per share (Rand) * 67,2557,58+17 Capital adequacy requirement (times covered) 2,12,6 Final dividend per share (cents) 153116+32 Total dividend per share (cents) 315278+13 *BEE normalised embedded value per share = R65,69 up 14%

29. Headline earnings Rm20042003% Operating profit from insurance operations net of tax 929720+29 Operating profit from shareholders’ funds 323230+40 Headline earnings 1 252950+32 Headline eps (cents) 460,4346,4+33

30. Operating profit from life insurance operations – major influencing factors Shareholders’ 10% participation and higher asset base Investment guarantee reserve Expenses - Costs per policy - Non-recurring expenses Liberty Corporate Benefits

31. Gross investment returns 25 20 15 10 5 0 -5 -10 -15 Year-to-date return 2003Year-to-date return 2004Actuarial assumption 2004 JanFebMarAprMayJunJulAugSepOctNovDec 12,5% 22,7%

32. Main factors affecting the guarantee reserves RmChange in reserve Economic basis change 313 Better than expected overall investment performance in 2004 (44) 269 Volatility basis change (set up as a second-tier margin) = R148m

33. Expenses Rm20042003% Total group expenses per AFS 2 0361 860+9 IEB expenses incurred since October 2003 (93)(32) BEE transaction expenses (before tax) (15) Total group expenses 1 9281 828+5 Including non-recurring expenses

34. Non-recurring expenses Non-recurring expenses of R137m in 2004 (2003 : R111m) - Rm20042003 Retrenchment costs 3511 Pension contribution shortfall 230 Non-capitalised renovation costs 1310 Systems impairments 3715 BEE transaction 15- Discontinued salaries (50%) 14 15 Various other 2130 137111 Policyholders’ non-recurring: R116m (2003: R84m) Shareholders’ non-recurring: R21m (2003: R27m)

35. Expenses Costs per policy 20042003%Assumption Individual maintenance costs per policy Liberty Life R 248R 240+3,5+5,5 Liberty Active R 154R 162-4,9+5,5 R74m after tax release to profit

36. Operating profit from shareholders’ funds Rm20042003% Financial services operations265200+33 Listed investments8133+145 Other(23)(3)>100 323230+40

37. Embedded value Rm20042003% Shareholders’ funds8 4948 782-3 Net value of life business in-force7 6076 494+17 Fair value adjustment766541+42 Total16 86715 817+7 Embedded value per share (Rand)67,2557,58+17 BEE normalised embedded value per share = R65,69 up 14%

38. Rm20042003 Liberty Group Properties240216 Liberty Ermitage Jersey290140 STANLIB345307 Carrying value of in-force business acquired from IEB (109)(122) 766541 Financial services subsidiaries fair value adjustment

39. 20042003 Capital adequacy requirement (Rm)3 9543 403 Times covered2,12,6 Times covered without BEE impairment2,5 Capital adequacy cover

40. Dividend policy Objectives: Predictable growth Less volatility Leave room for new business growth Strong capital adequacy

41. Dividend policy Policy: Yield on EV per share of approximately 4,75% 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

42. Cents per share20042003% Interim162 - Final153116+32 315278+13 Dividend

43. Conclusion

44. 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

45. Focus areas for next twelve months 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

46. 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

47. Questions Panel Myles RuckChief Executive Andrew Lonmon-DavisStatutory Actuary Deon de KlerkChief Financial Officer

48. Liberty Life Presentation to Investment Analysts’ Society of Southern Africa 2 March 2005 www.liberty.co.za