Britannic Group

Interim results presentation

Half year ended 30 June 2004

7 September 2004

Agenda

Introduction Harold Cottam

Overview Paul Thompson

Financials Graham Singleton

Questions and answers

2

Overview

Paul Thompson

Group Chief Executive

3

Overview

Good results

Consolidation of refocused business

BAM management changed. Business repositioned as multi-specialist

Closed funds integrated into one division

Active review of closed fund opportunities

4

Financial highlights £41m operating achieved profit before tax

(HY03: £38m*)

£36m operating MSB profit before tax

(HY03: £17m restated)

£1,029m shareholders’ funds, 523p per share

(FY03: 517p)

Interim dividend 5.45p per share

(HY03: nil)

Free asset ratio 11.3%, ICA ratio 232%

(FY03: 10.8%, 213%)

5

* Adjusted to exclude a net one-off of £6m, primarily the benefit of a reduction in the risk discount margin from 1% to 0.5%

Britannic Assurance

£3m new business profit

Good progress towards service company structure

Process re-engineering

Costs to date under budget

6

Britannic Retirement Solutions

Relocation completed

Performing in line with expectations

7

Alba Life

Continued proactive risk management and mitigation

Reassurance of £350m deferred annuities

Improving free asset ratio

8

Closed funds review

9

Due diligence completed confirms: operational model reasonableness of target return validity of strategy

Transactions occurring in the sector

Optimistic on prospects

Britannic Asset Management

Repositioned as multi-specialist

Retail sales £102m

Institutional sales £84m

Solid half year performance

New products scheduled for launch second half

10

Financials

Graham Singleton

Group Finance Director

11

Summary Group achieved profits£m HY04 HY03 FY03 Britannic Assurance 40 44* 82 Britannic Retirement Solutions 2 4 13 Britannic Asset Management 5 4 9 Britannic Money - (1) (1) Group income and charges (2) (3) (4) Interest on loan finance (4) (4) (8) Operating profit before exceptional items

41 44 91

Exceptional items - (4) (20) Total operating profit before tax 41 40 71 * includes a net one-off of £6m, primarily the benefit of a reduction in the risk discount margin from 1% to 0.5%

12

Summary Group achieved profits

£m HY04 HY03 FY03

Total operating profit before tax 41 40 71

Loss on disposal of Britannic Money - (25) (25) Fluctuations in investment return (4) 11 34 Investment variance on in-force (8) (7) 4 Other assumption changes 5 (21) (22)

Pre tax profit/(loss) 34 (2) 62 Tax (10) 3 (13) Profit after tax 24 1 49 Dividends (11) - (20)

Retained profit 13 1 29

13

Britannic Assurance achieved profits

£m HY04 HY03 FY03 New business profit 3 6 12 In-force profit 18 23 34 Cost of closure to new business - (4) (4) Longer term return on: - SRC 15 14 29 - other shareholder investments 4 5 10 General insurance 1 1 3 Other income and charges (1) (1) (2) Total operating profit 40 44 82

14

Britannic Retirement Solutionsachieved profits

£m HY04 HY03 FY03 Sales n/a 174 302

New business profit after expense overrun

- 2 7

In-force profit 2 1 5

Longer term return on shareholder investments

- 1 1

Operating profit 2 4 13

Closure costs - - (16)

15

Britannic Asset Management

£m HY04 HY03 FY03 Income 19 18 37 Expenses (15) (14) (29) Interest receivable 1 - 1 Operating profit before tax 5 4 9 Cost/income ratio 79% 78% 78% Funds under management

£13.6bn

£14.3bn

£14.3bn

16

Summary Group MSB profits

£m HY04 HY03* FY03

Britannic Assurance

- With profit 7 7 15

- Non profit and unit linked 7 - 8

- Cost of closure to new business - (3) (3)

- Longer term return on SRC 15 14 29

- Other 4 5 11

33 23 60

Britannic Retirement Solutions 4 (2) 8

Britannic Asset Management 5 4 9

Britannic Money - (1) (1)

Group income and charges (2) (3) (4)

Interest on loan finance (4) (4) (8) Total operating profit before exceptional items 36 17 64

Exceptional items - (4) (13)

Total operating profit before tax 36 13 51

Loss on disposal of Britannic Money - (25) (25)

Fluctuations in investment return (4) 11 34

Pre tax profit/(loss) 32 (1) 60 * restated

17

SRC - achieved profits basis

£m (net of tax) 3rd party assets

BRS Total

Opening position 459 62 521

Longer term return

11 11

Investment variance (2) (2)

Results for the period 9 3 12

Non profit movement 7 - 7

Closing position 475 65 540

18

Group balance sheet - achieved profits basis

£m

Tangible capital

Present value of in-force

Goodwill

Total

Britannic Assurance - assurance business 164 233 - 397 - SRC 507 33 - 540 BAM 35 - 168 203 Group 24 - - 24 Group borrowings (135) - - (135) 595 266 168 1,029

Amount per share 303p 135p 85p 523p

19

Capital positionRealistic

Statutory

Free asset ratio: 11.3% excluding implicit items

Shareholders’ funds£140m

Shareholders’ retained capital – 3rd party assets

£475m

Realistic with profit estate£197m

Excess capital£374m

Internal capitalassessment

£350m

Required capitalmargin £235m

Prudent 25% margin £88m

ICA ratio of 232%

20

Questions and answers

21

Britannic Group

Interim results presentation

Half year ended 30 June 2004

7 September 2004

22