Irish Life & Permanent plc. Investor Information. Group Overview

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1 Irish Life & Permanent plc Investor Information 1 September 2007

2 Group Profile Formed in 1999 from merger of Irish Life plc and Irish Permanent plc Irish Life, the largest life company, and Irish Permanent, the largest residential mortgage lender, in Ireland Acquired TSB Bank in 2001 and merged with Irish Permanent to create permanent tsb, the group s retail banking division Strategic focus on Irish personal financial services market Dual primary listings on Dublin and London Stock Exchanges 2

3 Group Strategy Ireland first strategy - focused on personal financial services in Ireland Targeting double digit earnings [organic] & dividend growth Opportunistic approach to acquisitions Distribution reach and product strength underpin business model Strong track record and low risk operating model Strongly capitalised [rated A+/Aa3] with significant financial flexibility 3

4 Group Structure Irish Life & Permanent Group 100% 100% 30% Irish Life permanent tsb Allianz Retail Corporate ILIM (1) PTSB PTSB Finance CHL (2) Allianz-Irish Life Individual life, pensions, investments & savings Group life & pensions via employers and affinity groups Fund management. Active & passive products Mortgages, car finance, savings, current a/c, credit cards Auto & Consumer Finance Niche mortgage lender General insurance (Associate) Notes: (1) Irish Life Investment Managers. (2) Capital Home Loans (UK). 4

5 Group Earnings Mix Mix % Banking 37 Life Assurance 41 Bancassurance* 11 General Insurance 11 [Associate] Operating Profit 2006: 529m * Bancassurance included in reported life earnings 5

6 Ireland 2007 & 2008 Economic Forecasts CBI ESRI Davy NCB Average % % % % % 2007 Consumption Employment GDP Consumption Employment GDP Sources: Central Bank of Ireland, Economic & Social Research Institute, Davy & NCB Sept 07 6

7 Ireland - Growing [Active] Population million Ireland [rhs] million EU-25 [lhs] Source: NCB 7

8 Ireland Housing Demand & Supply 90 Over 25 Completions (rhs) s s Source: NCB 8

9 Personal Services 9 Ireland Pensions Savings Growth Forecast growth is 20% p.a. Income elasticity of demand estimated at Pension Fund Hotels & Expenditure Abroad Domestic Services Mortgage Repayments Private Health Insurance Clothing & Footwear "Other" Insurance Medical Services Alcohol Rent & Other Charges Food Tobacco Fuel & Light 0.0 Source: NCB

10 Irish Life Retail Market position Market leader with share of new business c.25% Business model Multi-channel distribution strategy Market leader in product innovation and performance New technology platform delivering efficiency and service gains Brand Customer focused and leveraging ILIM investment competence 10

11 Retail Life Sales m Pension Investments Protection Savings

12 Retail Life Products H1 07 Total Retail Life Sales 208m, up 54% [H1 06: 135m] Fund performance and SIPPs boost pension sales Cross-selling to SSIA & current account customers Investments Mix % 34 Growth % +54 Pension Protection / Risk Savings H1 07 * APE basis 12

13 Retail Life Distribution All distribution channels performing strongly Increased bancassurance penetration Up-skilling distribution for HNW and mass-affluent Bancassurance permanent tsb Institutions Mix % Growth % % +115 Direct Sales force Brokers / IFAs H1 07 * APE basis 13

14 Retail Life Market Share % 25 24% 25% 23 22% 21 20% 21% 19 19% H

15 Irish Life Corporate Market position Market leader with share of c. 48% Dominates DC pensions and group risk markets Business model Intermediated business - consultants and top end brokers Quality service delivery key competitive lever Broadening distribution Building on success with Cornmarket in public sector Developing direct end customer relationships 15

16 Corporate Life Sales m Defined Contribution Protection / Risk Defined Benefit / Other

17 Corporate Life H1 07 Total Corporate Life Sales 122m, up 24% [H1 06: 98m] Increase in single premiums - annuities, PRBs, AVCs Strong performance in protection / risk business Defined Contribution Mix % 69 Growth % +20 Annuities / Other Protection / Risk H1 07 * APE basis 17

18 Corporate Life Distribution Sales 122m [H1 06: 98m] Mix Growth % % Consultants Cornmarket / Direct Brokers H1 07 * APE basis 18

19 Corporate Life Market Share % 50 48% % % 36.5% % 34.4% H

20 Irish Life Investment Managers Market position No.2 with over 25% market share FUM of 35bn split 52% active and 48% passive Business model Asset manager for life businesses (48%) Direct institutional business (52%) Offers own funds and open architecture for specialist products Performance Top quartile performing active pension fund manager over 3 and 5 years Flagship Consensus Pension Fund [passive] largest unit-linked fund in Ireland 20

21 Investment Management Consistent growth in Funds under Management* Growing market share Active and passive fund management out-performance bn Institutional Life Company H1 07 * Excludes ILI 21

22 permanent tsb Market position Focused on personal customers: not in business banking Leader in residential mortgages with over 20% market share Rapidly acquiring new customers via aggressive current account strategy Business model Multi-channel distribution Fully integrated bancassurance operation Brand Competitive, innovative and customer friendly 22

23 Bank Loan Book bn ROI Mortgages UK Mortgages Consumer Finance Commercial H

24 Bank Funding Diversified funding strategy in place Balanced mix of long / short term funding Untapped 4bn mortgage pro-note facility with ECB, to increase to 6bn Securitisation 8% Retail Deposits 18% Long Term Debt 30% Commercial Deposits 17% ECP 12% USCP 5% Fr CD 5% IB/Repo 4% 42bn Funding - mix at 30 June

25 Bank Credit Quality - LTVs H New Mortgage Lending % % % % Home Loans First Time Buyers Second Time Buyers Average BTL / RIPs Average Equity Release Average Total New Lending* * Weighted average 25

26 Bank Credit Quality - Arrears Residential Mortgages (Ireland) 000 s 000 s No. of Mortgages (RHS) No. in Arrears * LHS H * > 1 month 26

27 Mortgage Market Share 25 % 21.8% 20% 20.8% % 18.7% 18.6% H

28 Bancassurance Highly productive and rapidly growing Accounts for almost 30% of Retail Life sales Successfully exporting model to other institutions Mix % Investments 51 Savings 27 Protection 9 Pensions 13 H

Customer Acquisition Total Current Account Numbers 000 s 450 400 350 300 250 200 42,000 Current Accounts in H1 07 35,000 new current accounts 7,000

29 Customer Acquisition Total Current Account Numbers 000 s ,000 Current Accounts in H ,000 new current accounts 7,000 upgrades Account balances up 17% yoy Cross-selling Credit card sales up 16% yoy Bancassurance to 22% of SSIA holders H107 29

30 Capital Home Loans Market position Only group business outside Ireland Niche player in UK buy-to-let market, loan book of Stg 5.4bn. Business model Distributes exclusively through intermediaries Competes on service quality and not price or credit Loans securitised months after origination Performance Very profitable business with excellent credit quality 30

31 Allianz-Irish Life IL&P [30%] joint venture with Allianz [65%] 2 nd / 3 rd largest P&C insurer in Ireland Business lines: Personal 49%, Commercial 36%, Religious 15% Mix % Property 37 Motor 36 Liability 21 Other 6 31

32 Financial Strength Bank risk asset ratio of 11.2%, all Tier 1 [June 2007] No hybrid equity or prefs Significant Tier 2 capacity to fund growth Life solvency capital requirement covered 1.7 times [June 2007] 200m perpetual debt raised in Life company in Q Ratings : Aa3 (Moodys) and A+ (S&P) Flexible capital position to fund rapid growth 32

33 Financial Performance c EPS NAV ps DPS Operating Earnings (LHS) Net Asset Value (RHS) Dividend (LHS) * IFRS basis (from 2004) for banking & Embedded Value basis for life business 33

34 Summary Strong Irish economy with highly attractive demographics Total focus on retail financial services in Ireland Leading market positions and franchises to maximise opportunities Low risk business model Targeting double digit growth over cycle 34

35 Contact Information Please contact our Investor Relations Department for any further information or visit our group website at Contact details: Barry Walsh Orla Brannigan orla.brannigan@irishlife.ie Marie Gilsenan marie.gilsenan@irishlife.ie

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