1. - 1 - Liberty Life Interim Results Presentation 11 August 2005 www.liberty.co.za

2. - 2 - Agenda What we said What we’ve done Operating climate Financial and operating results Focus areas for remainder of the year Questions

3. - 3 - What we said… Operational restructuring opportunities Capital Alliance (CAHL) - new business - efficiency Products Capital structuring Liberty Active and, as always... people... service … costs

4. - 4 - What we’ve done … operational restructuring The past Insurance operationsOther operations Liberty Group LimitedLiberty ActiveCAHL Liberty Properties LCBIndividual Life Liberty Ermitage LPBBancassuranceGroup Life Liberty Healthcare ConsultancyProject KhulaDistribution Support Services

5. - 5 - What we’ve done … operational restructuring Shortcomings of the old structure Processes evolved differently leading to inefficiency Many different products and services Slow customer response times Duplication of structures leading to additional costs Varying and different customer contact points Potentially higher operational risk environment

6. - 6 - What we’ve done … operational restructuring The present Asset management Marketing and distribution Operations Group support services

7. - 7 - What we’ve done … Capital Alliance 200520062007 … people … service … costs … Implement acquisition Implement new structure Plan phase I Integration and methodology – phase I – start with Liberty Active Plan phase II Integration phase II

8. - 8 - What we’ve done … products and distribution channels Continued focus on broker relationships Regional head office in Cape Town being established Individual life bancassurance model continues to deliver Recruitment in agency and franchise progressing well

9. - 9 - What we’ve done … products and distribution channels Productivity of sales force remains a focus Launch of AddLib loyalty program Introduction of new risk product options Continue advertising campaign - ‘let’s keep working on it’

10. - 10 - What we’ve done … capital management Approval by FSB to issue bond of up to R2bn - Took cautious approach post PFA rulings - Still committed to issuing debt, but at the right time Bought CAHL, with statutory CAR cover now at 1,78x (our range 1,5-1,7x) Sold significant portion of SAB Liquidated trading portfolio

11. - 11 - What we’ve done … Liberty Active Early days Sales management 61 with 245 tied agents 22 branches have been opened-mainly new areas 7 broker networks in the Eastern Cape “Active Series” of six products has been launched Sales of 12 335 Active Series policies (API R24m)

12. - 12 - What we’ve done … Liberty Active Keeping a watchful eye Premium collection is difficult in this market as expected Management of persistency is critical Steering committee meets monthly ensuring tight management Reiterate that we would rather focus on build, not buy strategy This ‘investment’ should not be more than R50–R100m

13. - 13 - Operating climate It’s getting even tougher PFA rulings have negatively impacted sentiment Compliance and regulatory requirements continue IFRS Low interest rate/low inflation environment Investors remain risk averse Poor perception of industry (media and consumers)

14. - 14 - Operating climate (continued) PFA rulings have cast the industry in a very poor light Liberty’s Lifestyle Retirement Annuity Fund has had 4 rulings against it Total rulings to date <R0,3m We are taking it very seriously The industry is introducing new flexible products We need to resolve both the past and the future There is still uncertainty Working with the industry to resolve the issues

15. - 15 - Operating climate (continued) But… South African economy - the success story continues Strong local investment returns Weakness in the rand has helped, but offshore product demand still poor Cash still being accumulated by investors = opportunity We welcome the move to greater transparency

16. - 16 - Deon De Klerk

17. - 17 - Rm June 2005 1 June 2004 % Total new business7 7446 342+22 Indexed new business2 2571 968+15 Indexed new business excl contractual increases1 8411 576+17 Value of new business370330+12 New business margin20%21%-4 Net cash inflows from insurance operations 2 2 6692 382+12 Operational features – 2005/2004 with no CAHL comparatives 1 Includes CAHL numbers for 3 months since acquisition with no comparatives in 2004 2 Excludes STANLIB and Ermitage net cash inflows

18. - 18 - Individual life Corporate benefits Life insurance operations New business premiums (6 months to June) Total +22% to R7 744m Individual life +22% to R6 564m Corporate benefits +20% to R1 180m Rm 20042002 20052003 0 1000 2000 3000 4000 5000 6000 7000 8000 +22% +20% +21% (ex CAHL) +16% (ex CAHL)

19. - 19 - Individual life Corporate benefits Life insurance operations Indexed new business premiums (6 months to June) Total +15% to R2 257m Individual life +11% to R1 860m Corporate benefits +35% to R397m 20042002 20052003 0 Rm 500 1000 1500 2000 +11% +35% +9% (ex CAHL) +22% (ex CAHL)

20. - 20 - Individual life Group benefitsCAHL Life insurance operations Embedded value of new business (6 months to June) Total +12% to R370m Individual life ex CAHL +8% to R344m Corporate benefits ex CAHL = R3m 20042002 20052003 0 Rm 100 200 300 400 +12% +26%

21. - 21 - -5% 0% 5% 10% 15% 20% 25% 30% 35% Individual life Group benefits Life insurance operations New business EV margins Total = 20% (June 2004: 21%) Individual life ex CAHL = 22% (June 2004: 23%) Corporate benefits ex CAHL = 1% (June 2004: 6%) Jun 2004 6 months Jun 2003 6 months Dec 2004 12 months Dec 2003 12 months Jun 2005 6 months

22. - 22 - Individual life Group benefits Life insurance operations Net cash flows from insurance operations (6 months to June) Total +12% to R2 669m Individual life +21% to R2 828 Corporate benefits -R159m vs +R51m 20042002 20052003 -1000 Rm 0 1000 2000 3000 R2828m -R159m

23. - 23 - Source: LOA market share statistics for all life offices Year ended 31 December 2000Year ended 31 December 2001 Year ended 31 December 2002Year ended 31 December 2003 Three months ended 31 March 2005Year ended 31 December 2004 Life insurance operations New business market share 0% 5% 10% 15% 20% 25% 30% 35% Recurring Individual Single Individual 19.6% 22.8% 23.6% 25.3% 26.0% 25.3% 15.5% 16.5% 20.3% 24.5% 27.2% 32.0%

24. - 24 - Other operations STANLIB: assets under management and funds under administration Rbn June 2005 Dec 2004 % Life funds 7672+6 Segregated funds 6966+5 Unit trusts 5251+2 Structured products and other 4034+18 Total AUM and FUA 237223+6 Money market as % of total 16% Net cash inflows of R6,4 billion (R5,8bn in June 2004) Earnings before tax of R197 million up 65%

25. - 25 - Other operations Ermitage: assets under management US$m June 2005 Dec 2004 % Hedge funds 1 5171 500+1 Long-only funds 1 3881 3820 Money funds 749762-2 Total AUM 3 6543 6440 Third party funds as % of total funds 41% Net cash inflows of US$120m vs US$379m Headline earnings of £2,8m +64% (R33m)

26. - 26 - Financial results – 2005/2004 Rm June 2005 June 2004 % BEE normalised headline earnings per share before IFRS (cents) 257,5167,2+54 Headline earnings per share (cents) 303,4157,3+93 BEE normalised embedded value per share (Rand) 66,50*63,72+4 Embedded value per share (Rand) 68,34*65,07+5 Statutory capital adequacy requirement (times covered) 1,78*2,46 Interim dividend per share - new policy (cents) 126 Interim dividend per share - previous (cents) 162 *Refers to adjusted Dec 2004

27. - 27 - Headline earnings Rm 1 st half 2005 1 st half 2004 % 2 nd half 2004 % Operating profit from insurance operations 591335+76594 Operating profit from shareholders’ investments 79100-21172-54 Income on assets utilised to fund BEE transaction -25-10026-100 Headline earnings before IFRS 670460+46792-15 Net income on BEE prefs accounted for in equity 44--3141 BEE normalised headline earnings before IFRS 714460+55823-13 BEE normalised headline earnings per share before IFRS (cents) 257,5167,2+54298,5-14

28. - 28 - Headline earnings (continued) Rm 1 st half 2005 1 st half 2004 % 2 nd half 2004 % Headline earnings before IFRS 670460+46792-15 IFRS adjustments -37-27+3730- Net realised and unrealised gains on shareholders’ funds 1 130---- Headline earnings 763433+76822-7 Headline earnings per share (cents) 303,4157,3+93302,30 BEE normalised headline earnings per share (cents) 291,0157,3+85309,0-6 1 Now included in headline earnings with no restatement of the comparative

29. - 29 - Operating profit from life insurance operations – major influencing factors Inclusion of CAHL for 3 months Shareholders’ 10% participation and higher asset base Investment guarantee reserve Expenses - Costs per policy - Non-recurring expenses

30. - 30 - Inclusion of CAHL for 3 months Rm June 2005 June 2004 % Revenue earnings on assets utilised to fund CAHL acquisition 31 1 55 2 -44 CAHL revenue earnings 42-- ‘CAHL effect’ on revenue earnings 7355+33 1 Revenue earnings on R3,1 billion for the period up to implementation date – 26 April 2005 2 Revenue earnings on R3,1 billion for the six months ended 30 June 2004

31. - 31 - Gross investment returns Year-to-date return 2005Year-to-date return 2004Actuarial assumption 2005 Release from guarantee reserves of R91 million after tax mainly due to better than expected investment performance (2004: increase in reserves of R29 million after tax) 0% 5% 10% 15% 20% 25% 30% JanFebMarAprMayJunJulAugSepOctNovDec 0.2% 11.5% 22.7% 9.7%

32. - 32 - Expenses Rm June 2005 June 2004 % Total Liberty Group expenses 1 281972+32 IFRS 2 adjustments – share based payments (20)(5)>100 Business restructuring, integration and other non- recurring costs (135)(50)>100 Project Khula costs (14)(1)>100 CAHL costs for 3 months with no comparative (176)-- Normalised group expenses 936916+2

33. - 33 - Restructuring, integration and other non-recurring expenses - Rm June 2005 June 2004 Retrenchment costs 476 Consultants, systems and process costs 37- Non-capitalised relocation and renovation costs 346 Systems impairments -20 Various other 1718 13550 Policyholders’ non-recurring: R106 million (2004: R39 million) Shareholders’ non-recurring: R29 million (2004: R11 million)

34. - 34 - Maintenance costs per policy June 2005 Dec 2004 % Individual annual maintenance costs per policy Liberty Life R 259R 248+4 Liberty Active R 153R 154 CAHL Complex R 220R 217 1 +1 CAHL Simple R 81R 80 1 +1 1 For the year ended 31 March 2005

35. - 35 - Operating profit from shareholders’ funds Rm June 2005 June 2004 % Financial services operations13191+44 Listed investments2526- Other investments59142-58 Preference dividend in subsidiary(65)(41)+59 Shareholders’ management expenses(67)(51)+31 Shareholders’ tax(24)(47)-49 Investment gains net of CGT138-N/a Operating profit post IFRS adjustments197120+64

36. - 36 - Embedded value Rm June 2005 Restated Dec 2004 % Published Dec 2004 Net worth 8 1378 2008 494 Fair value adjustments 21766>100766 Fair Value of share options (144)(191)-25- Net value of in-force business 9 2197 544+227 607 Embedded value 17 23316 319+616 867 Embedded value per share (Rand) 68,3465,07+567,25 BEE normalised embedded value per share (Rand) 66,5063,72+465,69

37. - 37 - June 2005 Dec 2004 Statutory capital adequacy requirement (Rm) 3 1143 013 Times covered1,782,46 Times covered without BEE impairment2,182,88 Capital adequacy cover

38. - 38 - Cents per share June 2005 June 2004 Interim - new dividend policy126 Interim - previous162 Dividend At 2004 year end new dividend policy established Interim dividend set at 40% of previous year’s full annual dividend

39. - 39 - Conclusion

40. - 40 - Focus areas for remainder of the year and beyond, much the same Capital management continues Compliance, IFRS … Address PFA issues... people... service … costs

41. - 41 - Focus areas for remainder of the year and beyond, much the same Operational restructuring and CAHL integration continues Marketing and distribution restructuring - Products - Channels - Project Khula continues Group support service restructuring and integration … Hug our customers!

42. - 42 - Questions Panel Myles RuckChief Executive Andrew Lonmon-DavisStatutory Actuary Deon de KlerkChief Financial Officer

43. - 43 - Appendices

44. - 44 - Rm June 2005 1 June 2004 1 % Total new business7 7446 444+20 Indexed new business2 2572 016+12 Net cash inflows from insurance operations 2 2 6692 206+21 Operational features – 2005/2004 with CAHL comparatives 1 Includes CAHL numbers for 3 months, both in 2005 and 2004 2 Excludes STANLIB and Ermitage net cash inflows

45. - 45 - June 2005 Rm June 2005 ROEV Build up (%) Annualised Investment return on shareholders funds3284.1 Expected return on life business4365.4 Investment experience3864.8 Other experience-149-1.8 Changes in economic assumptions90.1 Changes in non-economic assumptions-251-3.1 Change in company tax rate1181.5 Change in modeling-16-0.2 New business3704.6 Allowance for fair value of options470.6 EV Profit1 27816.3 Less Abnormal Change in company tax rate-118-1.4 Write off of CAHL goodwill3123.9 EV Profit1 47218.9 Embedded value (EV) reconciliation and ROEV build up

46. - 46 - Rm June 2005 June 2004 % Change Net fee income350278+26 Investment and other income3923+70 Total income389301+29 Operating expenses192182+5 Income before tax197119+66 Normal tax5640+40 STC114+175 Income after tax13075+73 Preference dividends3033-9 Earnings10042138 Cost to income ratio55,0%65,5% Stanlib Detailed Earnings Analysis

47. - 47 - Financial services and subsidiaries Rm June 2005 December 2004 Fair Value Adjustment Tangible NAV Goodwill net of amortis- ation Fair Value Uplift Total Carrying value in EV excl VIF % Change Tangible NAV Goodwill net of amortis- ation Fair Value Uplift Total Carrying value in EV excl VIF Liberty Group Properties1702302471%40240244 Liberty Ermitage Jersey4508130083113%37569290734 Stanlib401054594629%3870345732 Carrying value of VIF business acquired from IEB 1020-1020*n/a1090-1090* Carrying value of VIF business acquired from CAHL 9520-9520*n/a---- 1 92281212 02418%875697661 710 *The value of the IEB & CAHL business is included in the group's estimates of the VIF

48. - 48 - New business excluding contractual increases ex CAHL Recurring PremiumsSingle PremiumsTotal Premiums % Change Rm June 2005 June 2004 June 2005 June 2004 June 2005 June 2004 Individual1 0259925 1654 0966 1905 088+22 Corporate137988687641 005862+17 Total new business1 1621 0906 0334 8607 1955 950+21 % Change+7+24 Indexed new business1 7661 576 +12 Indexed Individual new business1 5421 401 +10 Indexed Individual new business224175 +28

49. - 49 - New business EV Analysis-ex CAHL Rm June 2005 June 2004 % Change Indexed Individual new business1 5421 401+10 Indexed Group new business224175+28 Indexed new business1 7661 576+12 Individual NB EV344320+8 Group NB EV310-73 Total NB EV347330+5 NB Individual Margin22.3%22.8% NB Group Margin1.3%5.9% Total Margin19.7% 20.9% Indexed new business of CAHL for EV purposes R75m (Recurring R69m, single R64m) NB embedded value of R23m CAHL NB embedded value and volumes for 3 months only

50. - 50 - Effect of the BEE transaction on headline earnings 1.As a consequence of utilising Liberty Life’s own cash flows (in the form of ordinary dividends paid) to service the empowerment transaction financing structure (in the form of dividends on preference shares), the dividends received on the empowerment preference shares will be accounted for directly in reserves, thereby offsetting the dividends so received against the ordinary dividends paid by the company 2.Due to the fact that the Black Economic Empowerment transaction is effectively accounted for as a share buy back (until such time that all funding is repaid), the weighted average number of shares in issue for 2004 has been reduced by 25.8m shares. The transaction was implemented on 8 November 2004 Rm June 2005 June 2004 % Change Earnings before before IFRS670460+46 Preference shares accrued 1 44 Headline earnings including preference dividends before IFRS714460+55 Weighted average number of shares in issue (millions)251.5275.3 Reinstatement of weighted average number of shares reduced for BEE transaction (millions) 2 25.8 Weighted average number of shares after reinstatement of the transaction shares (millions)277.3275.3 BEE normalised headline earnings per share (R)257.5167.2+54

51. - 51 - Rm June 2005 Dec 2004 4 % Change EV per EV statement17 23316 3196% Costs of transaction included in headline earnings net of tax & debited against reserves 1 -40 Reinstatement of impaired empowerment preference shares1 251 Preference dividends accrued 2 -13 Embedded value before impairment18 48417 1915% Total number of shares in issue (millions)252,2250,8 Reinstatement of number of shares reduced for BEE transaction (millions) 3 25,8 Total number of shares after reinstatement of the transaction shares (millions)277,9276,6 BEE normalised EV per share (R)66,5063,724% Effect of the BEE transaction on EV per share 1.Preference dividends for the period to June 2005 2.Preference dividends received in six months to June 2005 of R38 million have been credited directly to equity 3.Due to the fact that the Black Economic Empowerment transaction is effectively accounted for as a share buy back (until such time that all funding is repaid), the total number of shares in issue has been reduced by 25 796 143 shares at 30 June 2005 and 31 December 2004 4.Restated

52. - 52 - Claims & policyholder benefits-Liberty ex CAHL Group Rm June 2005 June 2004 % Change Individual6 0535 424+12 Death & disability9569530 Policy maturity claims1 7571 899-7 Policy surrender claims2 5741 866+38 Annuity payments766706+8 Group2 5531 917+33 Death & disability2492500 Scheme terminations135124+8 Scheme member withdrawals851731+16 Annuity payments2021-4 Investment only terminations and withdrawals1 298791+64 Total claims & policyholder benefits8 6067 341+17 Surrenders appear significantly higher due to the higher level of assets since 30 June 2004 Actual surrender policy count up 2.6%

53. - 53 - Claims & policyholder benefits-CAHL only (3 months) Group Rm June 2005 June 2004 % Change Individual731689+6 Death & disability117108+8 Policy maturity claims265230+15 Policy surrender claims196160+23 Annuity payments153191-20 Group24861+313 Death & disability22846+407 Scheme terminations48-50 Scheme member withdrawals167+129 Total claims & policyholder benefits979750+31

54. - 54 - New business detailed analysis New BusinessRecurring PremiumsSingle PremiumsTotal PremiumsTotal % Change Rm June 2005 June 2004 June 2005 June 2004 June 2005 June 2004 June 2005 June 2005 Incl CAHL Excl CAHL Individual1 3371 2655 2274 0966 5645 36122,420,7 Corporate3102178707641 18098120,316,0 Total1 6471 4826 0974 8607 7446 34222,120,0 % Change11,125,522,1 % Change Ex CAHL6,424,120,0 Indexed new business2 2571 96814,710,8

55. - 55 - Net cash flows detailed analysis Net Cash FlowsRecurring PremiumsSingle PremiumsTotal PremiumsTotal % Change Rm June 2005 June 2004 June 2005 June 2004 June 2005 June 2004 June 2005 June 2005 Incl CAHL Excl CAHL Net Premiums9 6127 7552 6421 96812 2549 72326,017,1 Net claims and benefits6 7845 4242 8011 9179 5857 34130,617,2 Net cash flows from assurance ops 2 8282 331-159512 6692 38212,016,7 % Change21,3N/a % Change Ex CAHL31,3N/a

56. - 56 - New business by distribution channel-Ex CAHL Recurring PremiumsSingle PremiumsTotal Premiums Rm June 2005 June 2004 June 2005 June 2004 June 2005 June 2004 Individual1 3081 2645 1644 0966 4725 361 Broker4594402 1991 6232 6582 063 Bancassurance4654291 6531 2542 1181 683 Agency2262549028391 1281 093 Franchise & other158141410380568521 Corporate 2702188687641 138981 Broker13995259186398281 Bancassurance11550165 Agency9277129144221 Franchise & other2841475434503475 Total new business1 5781 4826 0324 8607 6106 342

57. - 57 - 0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Since Dec 2004 CAR cover shown as statutory CAR cover CAR Cover-historical analysis Times covered Times covered incl BEE Jun 2004Dec 2002 Dec 2004Dec 2003 Dec 2001 Jun 2005

58. - 58 - 53% of the group’s EV is represented by value of in force compared to December 2004 where it was 46% EV-Historical analysis (Rand per share) 0 10 20 30 40 50 60 70 80 NAV per share VIF per share Jun 2004Jun 2003 Dec 2004Dec 2003 Dec 2002 Jun 2005 R68,34 R65,07

59. - 59 - CAHL administration staff of 636 included at 30 June 2005 61 administration staff at project Khula at 30 June 2005 2800 3000 3200 3400 3600 3800 4000 Liberty headcount analysis Liberty excluding new initiatives Liberty total Dec 03Mar 04Jun 04Sep 04Dec 04Mar 05Jun 05 3320 3370 3308 3920 3223

60. - 60 - Liberty Life Interim Results Presentation 11 August 2005 www.liberty.co.za