Technology: Delivering Efficiency and Productivity

George NapolesSenior Vice President

Information Technology

IT Mission

▲ Increase productivity and work quality of our associates through the cost-effective implementation of technology

▲ Enable JNL to fulfill business objectives not impeded by:– The high cost, or– Prolonged implementation of technology

Build Core Competencies

▲ Recruit Staff▲ Infrastructure: Networks, PCs, etc.▲ In-source data center▲ Implement application software

Superior Technology

▲ Intuitive screens reduce training and errors while increasing productivity

▲ Not encumbered by “legacy” systems▲ Single application system environment▲ Virtually all information available at

Service Representative’s desktop

IT Highly Productive

▲ Technology– Never in critical path for new products – Most often a competitive advantage.

▲ Leaders in implementing enabling technology – Allows JNL to achieve leadership position

• Equity linked annuities• Unbundled variable annuities• Granite and electronic order entry• Registered Investment Advisors initiative• Many other new product initiatives

IT Highly Productive: ProductsAdditional Variable Annuity Funds Bonus on Perspective for JNLNY ELITE 90 - 12 Year ELITE 90 - 7 Year ELITE 90 with Cap Enhanced Guaranteed Income Benefit on EIAs Equity Indexed CD for Non-IRAs Owner Driven Target Select Private Label Annuities for Banks Reduced Level Term Premiums Revised Fixed Annuities Shorter Withdrawal Charge VA with Multiple Options Unbundled Variable Annuity with Multiple Options ELITE 500

IT Highly Productive: ProductsELITE 90Equity-Linked CD Equity-Linked Fund on VAsEquity-Linked Indexed AnnuitiesLast Survivor Universal LifeNew York NIKE Defined Strategies VAPerspective Advantage VAPerspective Advisors VAPerspective Variable AnnuityRepackaged Term InsuranceRepriced Term InsuranceTarget SelectUniversal Life Update UL Product Line

IT Highly Efficient

Source: LIITES Benchmarking Study

▲ Independent study by TCi▲ Comprehensive questionnaire to ensure

uniformity of results▲ 14 Companies participated ▲ Study year was 2000

IT Highly Efficient

Expense Type JNL Rank AveLife Per Policy Expense 23.59 2 44.86Life NB IT Expense 29.23 2 124.44Life Policy Owner Expense 5.45 2 20.84Annuity Per Policy Expense 23.66 2 45.70Annuity New Business Expense 16.33 2 36.59Annuity Contract Administration Expense 5.46 2 22.02

▲ Independent study by TCi▲ Comprehensive questionnaire to ensure

uniformity of results▲ 14 Companies participated ▲ Study year was 2000

Source: LIITES Benchmarking Study

IT Highly Efficient

Industry JNL Description Average AverageE-Mail Administrators per FTE 1 to 2,000 1 to 3,132Network Administrators per FTE 1 to 200 1 to 433NT Administrators per NT Machine 1 to 6 1 to 80Help Desk Associates per FTE 1 to 140 1 to 246Unix Administrators per Unix Machine 1 to 10 1 to 10

Source: Gartner

IT Success Factors1. Quality – not quantity – of associates

– Rigorous recruiting standards• Test for programming aptitude• Technical skills review• Team interviews• Less than 10% of applicants offered position

– In-house training• Test for aptitude• Demonstrated achievements• Dedicated 7 months technical training• Don’t recruit Computer Science graduates

IT Success Factors

2. Emphasis on business – not technology– Pragmatic approach to application of

technology– Don’t want best technology, but the best

business applications with lowest long-term cost of ownership

– All IT professional staff must learn insurance business to be eligible for promotion

IT Success Factors

3. All professionals are technical – Efficient and creative solutions require highly

technical and skilled professionals– Technical experience is required to manage

technical people effectively

IT Success Factors4. Strict Enforcement of Standards

–Client Workstation• System policies ensure that only approved software is installed

• All desktop applications certified prior to installation–Developers

• New applications written using only approved development tools and languages

• Tools are reviewed periodically, not continuously• Extensive training for new tools

IT Success Factors5. Adherence to System Development

Methodology– All projects approved by Steering Committee based on

cost/benefit basis– Detailed Project Plans with milestones and project cost– Developers log all hours worked for each Service

Request– Status and Monitoring Reports provided to ensure

punctual completion with budget– Proposed benefits monitored using detailed Benefit

Realization Plan to ensure achievement

IT Positions JNL to Win

▲ Top tier personnel▲ Superior technology▲ Rapid implementation▲ Cost efficient solutions