1. Service: High Customer Satisfaction at Low Cost Scott Stolz Senior Vice President Administration

2. The 3 Keys Behind Superior Customer Service ▲ Ownership

3. But What Does “Ownership” Really Mean? The ability to say, “Yes, I can do that for you.”

4. The Tragic Phrases of Customer Service ▲ Rather than, “yes, I can”, we usually hear…: – “You can’t…” – “You must…” – “You have to…” – “We can’t…”

5. Most companies ask… “Why should we do it?” at JNL, we ask… “Why shouldn’t we do it?”…. The differences are slight, but the consequences of these differences are huge

6. What Facilitates Ownership? ▲ An environment where it is OK to make mistakes ▲ An environment that encourages people to ask: – “Why do we do it this way?” – “Why can’t we just…?” ▲ A service structure that supports the environment you want to create – We have found that cross-functional teams facilitate the ownership we seek to promote

7. Old Structure: 1995 - Spring 2000 ▲ Client must work with multiple departments and people ▲ Service reps only see their small piece of the big picture ▲ Structure does not facilitate “ownership” of a problem - too easy to: – Pass the problem on and/or… – Point fingers at the other functional areas Life New Business/ Underwriting Life Applications and Reissue TSC Phone Calls On Everything Except Commissions, Illustrations, PACS Customer Service Center Annuity Issue, Withdrawals Broker Management Commissions & Licensing Operations Support PACS, Illustrations, UL 403B Support, Correspondence Customer

8. Today’s Structure ▲ Client can meet all their needs within each product line ▲ Structure facilitates ownership - it’s hard to blame or point fingers at the person sitting next to you Life Division - Phones - Policy Issue - Inforce Service Fixed Division - Phones - Policy Issue - Inforce Service Indexed Division - Phones - Policy Issue - Inforce Service Variable Division - Phones - Policy Issue - Inforce Service Client Support Functions Call Center Support QA & Training Technology Support Licensing & Commissions This structure is small enough to be responsive to customers, but big enough to provide all the resources needed to add significant amounts of business at virtually no additional cost

9. Since We Restructured To Enable Individual ‘Ownership’… 0 1000 2000 3000 4000 5000 6000 Apr-00 Jun-00 Aug-00 Oct-00 Dec-00 Feb-01 Apr-01 Jun-01 Aug-01 Oct-01 Dec-01 Feb-02 Apr-02 Jun-02 Aug-02 Average daily phone volume has been reduced 33% due to fewer transfers and higher first call resolution

10. Company Complaints Cut In Half 0 50 100 150 200 250 Jan-00 Mar-00 May-00 Jul-00 Sep-00 Nov-00 Jan-01 Mar-01 May-01 Jul-01 Sep-01 Nov-01 Jan-02 Mar-02 May-02 Jul-02

11. Telephone Service Levels Stabilized GOALOverallFixed AnnuityLifeInforce LifePending LifeIndexed Annuity SIP & Conversion to Lucent Phone System (08/26/00) CTI Policy # Routing & RMO Reorganization (11/12/01) Inforce & Pending Life Single Skilled (01/01/02) Telephone service levels (% of calls answered within 30 seconds) has stabilized and exceeded our 80% goal in 26 of the last 28 months

12. Tenure Nearly Doubled 95 88 104 98 104 96 98 94 93 109 114 106 105 110 109 114 109 107 109 106 103 101 99 94 89 86 87 95 103 110 106 103 101 104 97 96 94 88 86 121 Jan-99 Mar-99 May-99 Jul-99 Sep-99 Nov-99 Jan-00 Mar-00 May-00 Jul-00 Sep-00 Nov-00 Jan-01 Mar-01 May-01 Jul-01 Sep-01 Nov-01 Jan-02 Mar-02 May-02 Jul-02 Average TenureNumber of Customer Service Associates Turnover in the phone center has decreased. The required number of phone reps has decreased. Average tenure of telephone reps has nearly doubled.

13. History of Annual Service Expenses $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 199719981999200020012002 Forecast 0 10000 20000 30000 40000 50000 60000 JNL Assets $ ThousandsJNL Assets

14. Service Rated Better Than Competition 29% 31% 46% 21% 29% 67% 0% 25% 50% 75% 100% LifeFixedIndex Percent Much BetterSlightly Better Service Comparison by Product (Percent Rating JNL Better Than Competitors) 60% 75% 88% JNL agent survey – Spring, 2002

15. Technology is a tool… …For providing superior service. It is not in itself the answer. ▲ RACE (Rapid Annuity Entry) - Expert system: – Checks data against good order requirements – Integrates electronic images and workflow – Provides a platform for electronic order delivery ▲ NICE – Digitally records voice, data and keystrokes – Enables us to monitor calls for coaching and QA purposes

16. Technology is a tool… ▲ Internet: focused on features our clients will really use – Policy account values – Contacting us – Pending policy and commission information – Product performance – Investment rellocations – Address changes

17. Our Service Philosophy has Enabled Us to… ▲ Attract and retain better people ▲ Reduce staff ▲ Reduce hiring and training costs ▲ Reduce phone calls, errors and customer complaints All of which has given us a platform to issue more policies and support more assets with no increases in expenses

18. The Real Secret to Superior Customer Service It’s not a secret at all. It’s just hard work.