1. 1 Welcome

2. 2 Meeting Overview Who is Fidelity & Guaranty Life Who is Old Mutual Insurance Industry Trends Why Fidelity & Guaranty Life

3. 3 F&G Life Founded in 1959 Premier provider of Life and Annuity products Offers diverse product portfolio in 49 States and DC One of the first members of IMSA

4. 4 F&G Life (cont.) Strong financial strength ratings  A.M. BestA  Standard & Poor’sA  FitchA  Moody’sA2

5. 5 F&G Life (cont.) Proven track record in producing positive sales and earnings growth Between 1993 and 2000, sales increased 448% and have grown to more than $1 Billion a year Surpassed $2 Billion in new premium in June 2002

6. 6 F&G Life (cont.) Based on LIMRA results  4th largest brokerage term writer in annualized premium (1st Quarter 2002)  8th largest brokerage life writer in annualized premium (1st Quarter 2002)  Top 5 fixed annuity writer (2002)

7. 7 Old Mutual In September 2001, joined forces with Old Mutual family of companies  Founded 156 years ago  London based insurance & asset management company  Fortune Global 500 Company  Manages $234 Billion in funds (June 2001)

8. 8 Old Mutual (cont.)  Has 3.8 Million policyholders  Has 2.4 Million banking customers  Dedicated to the U.S. life insurance market

9. 9 What has Old Mutual brought to F&G Life? Capital to grow our business  By the end of 2002, Old Mutual will have invested over $1 Billion in F&G Life  $816 Million through March 2002 which includes the initial purchase of $635 Million in September 2001  An additional $200 Million by December 2002  F&G Life has Old Mutual’s support to continue to grow and support the new business we provide in today’s economic environment and the future

10. 10 What has Old Mutual brought to F&G Life? World class expertise in Administrative Services  Old Mutual provides the purchasing and negotiating power - and the weight - to competently move from a single supplier of administrative services to an actively managed portfolio of suppliers  F&G Life gains additional competency from suppliers with specialized skills  Skills are now available to make changes without jeopardizing existing business and relationships  A Win-Win situation is realized through lowering operating expenses and gaining quality of services provided

11. 11 What has F&G Life brought to Old Mutual? F&G Life has proven to be an excellent entry into the U.S. life insurance market by providing:  An established distribution channel and partners  An experienced management team  Knowledge in innovative product design  An established and well run organization  Outstanding sales growth  A great platform for future growth  A Great Success Story!!!

12. 12 What won’t Old Mutual bring to F&G Life? Failure to support our distribution channels and partners Rejection of the ideas and needs of agents Neglect to our distribution partners in terms of service and product design Second class solutions to problems and opportunities

13. 13 Insurance Industry Trends New Insurance Sales  Overall trends downward in life insurance sales  Despite industry trends, traditional life products are showing excellent growth  Key issues impacting new sales performance of equity market events of September 11th new institutional sales estate tax reform uncertainty

14. 14 U.S. Business Environment Interest rates at historic low levels and holding Volatility of stock market  declines started in March 2000  overall worst market performance in 23 years Investor confidence rattled  ENRON  WorldCom

15. 15 U.S. Business Environment (cont.) Favorable demographic trends  The aging of America in 1970, 9% of Americans were over 65 in 2002, the figure is 12.5% in 2030, it will be 19%  The youngest of Baby-Boomers are now eyeing 40  We are in the midst of the greatest transfer of wealth in history

16. 16 U.S. Business Environment (cont.) We are in the most positive sales environment we have ever seen Our products have what consumers want and need today

17. 17 U.S. Business Environment (cont.) Our products have:  Safety  Tax Advantages  Competitive Yields/Rates  Liquidity  Estate Planning Advantages  Protection for Families

18. 18 Why Fidelity & Guaranty Life We have 5 core values that form the foundation to provide the best life and annuity products in the marketplace  Integrity - customer satisfaction is our #1 priority and is the cornerstone for all of our business activities  Professionalism - we strive to exceed the expectations of our policyholders and distribution  Innovation - by listening to and understanding what the market needs, we constantly look for unmet needs and continue to develop innovative products to meet those needs

19. 19 Why Fidelity & Guaranty Life (cont.)  Service - we recognize that service is the name of the game and are striving to ensure that are distribution is given the level of service they need and deserve  Teamwork - we place a strong emphasis on teamwork and customer feedback by encouraging open communication from our key stakeholders which enables us to achieve higher levels of innovation, success and dedication

20. 20 Why Fidelity & Guaranty Life (cont.) With Fidelity & Guaranty Life, you have a solid partner for your financial future With Fidelity & Guaranty Life, you have a company built upon the promise that Life Keeps Getting Better!!!

21. 21 Fidelity & Guaranty Life Portfolio HomeCertain - level term insurance targeted for those who have secured a mortgage loan in the last 13 months Saver’s Select Term - level term insurance with 15, 20 and 30 year term periods

22. 22 Fidelity & Guaranty Life Portfolio SecureMaster - simplified issue universal life product that can be purchased without a medical exam WealthMaster Classic - our newest flagship universal Life product that offers choice, flexibility and guarantees

23. 23 Why WealthMaster Classic There is a market for a competitive universal life product  Volatility in the stock market creates shift to fixed products  Fixed UL had the highest growth in market share in 2001  Flexibility in design still a popular choice  New generation of UL’s have long-term guarantee features  Still a large number of under-performing policies

24. 24 WealthMaster Classic Outstanding Product Features  No Lapse Premium Guarantee to Age 100  Two Years of First Year Commission  Extended Maturity Option  Surrender Charge Waiver  Competitive Current Interest Rates  Liberal Underwriting Requirements

25. 25 Issue ages: 0 - 85 (age last birthday) Minimum Face Amount: $100,000 Maximum Face Amount: None Four Premium Classes: Preferred NonTobacco, NonTobacco; Preferred Tobacco and Tobacco WealthMaster Classic: Leading Edge Policy Design

26. 26 WealthMaster Classic: Leading Edge Policy Design Three cost of insurance bands:  $ 100,000 - $499,999  $ 500,000 - $999,999  $1,000,000 - over Short form application Same liberal preferred underwriting as Saver’s Select

27. 27 Guaranteed interest rate: 3.5% Current credited interest rate: 6.5% Stable interest rate history on universal life Guaranteed interest rate bonuses .5% years 11-20  1% years 21+ Surrender charge period: 15 Years WealthMaster Classic: Leading Edge Policy Design

28. 28 WealthMaster Classic: Leading Edge Policy Design Withdrawals and partial surrenders permitted after first policy year ($500 minimum with a $25 charge for each partial surrender) “No Cost” policy loans available after 10th policy year

29. 29 Target premium GUARANTEES the death benefit to age 100 at all issue ages Targets: MaleFemale  Age 35 $5.90 $4.73  Age 45$10.11 $8.08  Age 55$15.66$12.89 WealthMaster Classic: Leading Edge Policy Design

30. 30 Minimum premium guarantees the death benefit for 15 years Sample Minimum Premiums: Male Female Age 35$2.95$2.40 Age 45$5.06$4.08 Age 55$9.60$7.68 WealthMaster Classic: Leading Edge Policy Design

31. 31 Two years to collect first year target and get paid first year commission! WealthMaster Classic: Leading Edge Policy Design

32. 32 Example: Male age 35 Preferred N/S $150,000 face amount Target premium is $885 Client pays $442.50 per year for 15 years of guaranteed death benefit and 30 years of coverage on a current interest basis. Agent receives commission as follows: First year rate X $442.50 year one First year rate X $442.50 year two Total commission is two times the first year premium WealthMaster Classic: Leading Edge Policy Design

33. 33 All premium in excess of target in the first year flows directly to the guaranteed cash surrender value less a 5% premium load. Example:  Target premium is $3,000 with a 1035 cash value of $15,000. The guaranteed surrender value the first year is $14,250.00 WealthMaster Classic: Leading Edge Policy Design

34. 34 Extended Maturity Provision $1 or more of cash value at age 100 maintains the death benefit beyond age 100. Example  Face amount is $1,000,000 at issue and has not been reduced for the life of the contract. There is $100,000 of cash at time of “maturity”. The $1,000,000 of face will remain in-force at the time it is needed most. WealthMaster Classic: Leading Edge Policy Design

35. 35 Short simple application for quicker turnaround time No Blood through age 40 & 500K, age 50 & 250K  Easier for your client Four underwriting bands – Tobacco, Nontobacco, Preferred Tobacco and Preferred Nontobacco  No need to resell case at delivery with higher rate Your Client: Male 45, 6’0 248, BP 150/90 Cholesterol 260, HDL 7.0, one parent die before age 60 due to heart or cancer… gets our best rate! WealthMaster Classic: Simple Underwriting

36. 36 Liberal Height & Weight Liberal blood pressure readings  150/90 age 50 and younger  160/95 ages 51 + (blood pressure treatment allowed if controlled over last 2 years) Cholesterol  260 age 50 and younger  280 ages 51 to 65  300 over age 65, Cholesterol/HDL ratio cannot exceed 7.0 (Cholesterol treatment allowed if controlled over last 2 years) WealthMaster Classic: Simple Underwriting

37. 37 Additional Riders: Accelerated Death Benefit Rider Accidental Death Benefit Rider Child’s Level Term Insurance Rider Disability Income Rider Level Term Insurance Rider Waiver Of Monthly Deduction Rider WealthMaster Classic: Leading Edge Policy Design

38. 38 If client is diagnosed with a terminal illness, they can receive up to 50% of the policy death benefit, up to a maximum of $250,000 Must be elected at policy issue. No Premium charge. One time administrative fee of $350 at time of claim. Accelerated Benefit Rider

39. 39 Issue ages 0-60 (age last birthday) May be added at any time with evidence of insurability Maximum benefit is the face amount of the policy up to $250,000 Accidental Death Benefit Rider

40. 40 One premium is charged for all covered children Issue ages: 15 days through 18 years of age; age last birthday Minimum/ maximum: $5,000/ $10,000; available in increments of $1,000 If primary insured dies while this rider is in effect; each child will receive a paid- up term life policy to age 25. Convertible to age 25. Children’s Level Term Life Rider

41. 41 Maximum monthly benefit is the lesser of:  $3,000 monthly or  66 2/3% of monthly pay Total disability is defined as inability to substantially perform in the usual and customary way the essential duties of “any occupation” for which the insured may qualify by reason of education, training or experience Must be added at issue only Three month waiting period and 2 year benefit or Six month waiting period and 5 year benefit Disability Income Rider

42. 42 Provides one-year’s level term insurance renewable through insured’s age 99 or the expiration of coverage, whichever is first Ideal for business - allows policyowner to add or drop insured’s as needed Face amounts may vary by individual but cannot exceed the primary insured’s face amount Level Term Insurance Rider

43. 43 Waives the monthly deductions (cost of insurance and expense charges) Keeps coverage in force in the event of total disability lasting longer than 6 months. Prevents cancellation of coverage and keeps the cash value from being exhausted. Waiver of Monthly Deduction

44. 44 WealthMaster Classic Sample Illustrations: Male 50 - $500,000 - PNT  Target Premium  Minimum Premium  Minimum Premium to Carry  Minimum Premium to Endow  Minimum Premium for 15 Years/Dump-In/Target  25 Pay Equal to Target  1035 Exchange Plus Target  1035 Exchange Plus Premium Equal to Target

45. 45 Questions and Answers

46. 46 Summary and Recap The business environment is the best we have seen Industry sales of fixed life insurance products continue to be excellent The outlook for the remainder of 2002 and the first half of 2003 is bright Fidelity & Guaranty Life’s products are extremely competitive and well positioned We will continue to be a major competitive product provider for you - investing in future growth and product innovation