Prudential Financial, Inc. · NYSE:PRU
Prudential Financial — Investor Day (September 2008)
89 slides from Prudential Financial's investor day presentation, Sep 10, 2008
Slide 1: Tokyo Investor Day
Prudential Financial, Inc. Prudential Financial, Inc. Tokyo Investor Day September 11, 2008 Tokyo Investor Day September 11, 2008 Exhibit 99.0
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain of the statements included in this presentation constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. It is possible that actual results may differ materially from any expectations or predictions expr
Slide 3: Non-GAAP Measure
Non–GAAP Measure This presentation includes references to “adjusted operating income” and “return on equity” (“ROE”). ROE is determined by dividing adjusted operating income after-tax, annualized for interim periods, by average attributed equity. Adjusted operating income is a non-GAAP measure of pe
Slide 4: International Insurance and Investments Division reconciliation
International Insurance and Investments Division Reconciliation between adjusted operating income and the comparable GAAP measure International Insurance and Investments Division Reconciliation between adjusted operating income and the comparable GAAP measure (in millions) Revenues (1): Life Planner
Slide 5: International Businesses Overview
International Businesses Overview Edward P. Baird Chief Operating Officer International Businesses
Slide 6: International Division Organizational Structure
Japanese Life Planner Operations Gibraltar Life Insurance Operations Outside Japan International Investments Businesses International Division Organizational Structure Finance Investment Management Operations and Technology Human Resources International Division
Slide 7: Key Elements of Our International Strategy
• Grow organically and through complementary distribution channels and opportunistic acquisitions • Increasing emphasis on meeting retirement needs Key Elements of Our International Strategy • Needs-based selling • Continue building proprietary distribution: recruiting and selection • Historical foc
Slide 8: International Divisional Goals
• Sustainable AOI growth at solid double-digit rates • Sustainable 20% ROE’s • Strong free cash flow • Complementary group of International businesses with short and long-term growth potential International Divisional Goals
Slide 9: International Division Today
International Division Today Italy Poland Brazil Argentina China India Mexico Taiwan Korea Life Planning Insurance Japan International Investments Traditional Insurance
Slide 10: Key Milestones for International Insurance
TRADITIONAL BUSINESS LIFE PLANNER BUSINESSES International Division Key Milestones for International Insurance U.S. DOLLAR LIFE INSURANCE PRODUCT ACQUIRED AOBA LIFE INSURANCE CO., LTD. U.S. DOLLAR RETIREMENT INCOME PRODUCT BANK CHANNEL / U.S. DOLLAR FIXED ANNUITY
Slide 11: Emerging Markets: China
Emerging Markets: China • Established China Rep Office in Beijing in 1998 • Minority Interest in China Pacific Life, China’s third largest life insurance company – Investment through a consortium of investors in 2005 – Shares converted to China Pacific Group in 2007 by the consortium • Everbright Pr
Slide 12: Emerging Markets: India strategic partnerships with DLF
Emerging Markets: India 2 strategic partnerships with DLF, India’s largest real estate development company • DLF Pramerica Life Insurance Company Ltd. (DPLI) – Granted R3 license by the Insurance Regulatory and Development Authority (IRDA) of India, allowing DPLI to start life insurance operations •
Slide 13: International Division Financial Performance
Six months ended June 30, 2008 International Division Financial Performance 1) Based on annualized after-tax adjusted operating income for the six months ended June 30, 2008 Adjusted operating income pre-tax: Life Planner Business Gibraltar Life International Insurance International Investments Inte
Slide 14: Competitive Advantage
Competitive Advantage Life Planning Insurance • Life Planner profile similar to customer profile • Life Planner maintains contact with client, as trusted professional • Identify protection needs before discussing products • Protection life insurance purchased as a solution to identified need • Varia
Slide 15: Prudential
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Slide 16: Life Planner Businesses Pre-Tax AOI
$0 $200 $400 $600 $800 $1,000 $1,200 2Q 07 2Q 08 Life Planner Businesses Pre-Tax AOI ($millions) 1,020 YTD POJ All Other
Slide 17: The Beneficial Cycle
Sales Managers Drive Recruiting, Support Prospecting The Beneficial Cycle Proven Execution Track Record Products Satisfy Customer Needs Life-Long Customer Relationships High Life Planner Income High Customer Satisfaction High Quality Referral More Quality Recruits Favorable Growth Prospects Superior
Slide 18: Gibraltar Life: Prudentialized Traditional Model
Gibraltar Life: “Prudentialized” Traditional Model Japanese Life Insurance Company • Variable agent compensation • Life Planner training principles adapted to traditional field force • Needs-based selling of protection and retirement products • Introduce products targeted to customer base • Maintain
Slide 19: Gibraltar Life Pre-Tax AOI
$0 $100 $200 $300 $400 $500 $600 $700 2Q 07 2Q 08 Gibraltar Life Pre-Tax AOI ($millions) YTD
Slide 20: Enhancing Returns Through Proven Strategies
Enhancing Returns Through Proven Strategies Investment Portfolio • U.S. dollar investments • Extending duration • Asset class diversification Access to Prudential Resources • Product and distribution channel skills • Experience in the U.S. Retirement business Opportunities for Expense Synergies • Sh
Slide 21: Prudential Positioning: Market Development
Prudential Positioning Market Development Positioned for International Market Developments Lifetime client relationships Well-established in Retirement Market through Associations Innovative, successful U.S. dollar retirement products Growing Demand for Retirement Accumulation Products
Slide 22: Japan's Demographic Change
Current Population: 127 Million People % of 65+ Age Group: 22% in 2008 30% in (1) 36% in (1) Japan’s Demographic Change 14% 14% 11% 11% 11% 11% 64% 64% 59% 59% 53% 53% 22% 22% 30% 30% 36% 36% 0% 25% 50% 75% 100% Age 0-14 Age 15-64 Age 65+ 1) Source: Population Projections from Japan’s National Insti
Slide 23: Needs-Based Selling Over a Lifetime
Premature Death Retirement Accumulation Term Insurance Whole Life U.S. Dollar Retirement Income Innovative Annuity Products Retirement Income Needs-Based Selling Over a Lifetime 60+ Client Age Prudential Solutions Premature Death Retirement Accumulation Financial Risk Protection Needs Young Househol
Slide 24: Life Planners Serving Client Needs Through a Lifetime
$0 $50 $100 $150 $200 $250 Life Planners Serving Client Needs Through a Lifetime Prudential of Japan Second Sales to Existing Customers (1) 1) Translated based on constant exchange rate of 106 Japanese yen per U.S. dollar for all periods presented New Annualized Premiums ($millions)
Slide 25: Prudential Positioning: Market Development
Prudential Positioning Market Development Positioned for International Market Developments Greater Regulatory Standards Govern Product Distribution Full-time, college-educated Life Planner force Proven training for all channels Superior agent retention Growing Demand for Retirement Accumulation Prod
Slide 26: Prudential Positioning: Market Development
Prudential Positioning Market Development Positioned for International Market Developments Expanding Distribution Channels Established bank distribution relationships Gibraltar distributors “seconded” to Bank Channel Greater Regulatory Standards Govern Product Distribution Full-time, college-educate
Slide 27: Gibraltar Life Beyond the Life Advisor Channel
Gibraltar Life Beyond the Life Advisor Channel • Strengthening bank channel distribution by transferring Life Planners to bank branch based sales • Banks now commencing sales of life insurance in addition to annuity products • Well-established relationship with Teachers Association positions Gibralt
Slide 28: Where We Are Today
Where We Are Today • Leadership positions in life planning • Gibraltar generates high ROE’s and cash flows • Growing asset management platforms • Profitability dominated by Japan and Korea • Acquisitions potentially additive • Expect to achieve our financial goals • Expanding retirement businesses •
Slide 29: Japanese Insurance Operations
Japanese Insurance Operations Kazuo Maeda Co-President Prudential International Insurance
Slide 30: Life Insurance Market in Japan
Life Insurance Market in Japan • • Total population of Japan is 127 Total population of Japan is 127 million million (#10 in the world) (#10 in the world) (1) • • Total GDP is $4.3 trillion (#2) Total GDP is $4.3 trillion (#2) (2) • • Total life insurance premium is Total life insurance premium is $
Slide 31: Life Insurance Industry in Japan
INDUSTRY Business in-force down 19% in five-year period (1) Number of in-force policies up 80% in five-year period (1) Annuity account balances up 29% in five year period (1) Life Insurance Industry in Japan Death Protection “Third- Sector” Medical Coverage Retirement and Savings 1) Based on Japanes
Slide 32: Japanese Life Insurance Industry Developments
Japanese Life Insurance Industry Developments • Growing demand for retirement and savings products • Current regulatory environment requires higher standards for distributing insurance products • Recent regulations allow growth of bancassurance
Slide 33: Prudential Positioning Development
Prudential Positioning Development Japanese Life Insurance Industry Developments • • U.S. dollar fixed annuities offer U.S. dollar fixed annuities offer attractive value proposition for attractive value proposition for customers and favorable returns customers and favorable returns for Prudential fo
Slide 34: Prudential Positioning Development
Prudential Positioning Development Japanese Life Insurance Industry Developments • • Professional fulltime Life Planners Professional fulltime Life Planners • • Life Planner training principles adapted Life Planner training principles adapted to Life Advisors to Life Advisors • • Needs-based selling
Slide 35: Protection: Prudential Positioning Development
“ Protection ” Prudential Positioning Development Japanese Life Insurance Industry Developments • • Successful bank relationships Successful bank relationships established based on U.S. dollar established based on U.S. dollar fixed annuity products fixed annuity products • • Specially-trained Life A
Slide 36: Overall Position – New Business (Face Amount)
Billion Yen Ranking Billion Yen Ranking Ranking by New Business Amount (2) 4,197 4,197 4,861 4,861 6. Prudential 6. Prudential 124,121 66,727 Industry Total (3) 100,686 52,274 Subtotal 3,709 2,334 10. Fukoku 2,038 2,615 9. Tokyo Marine Holdings 3,537 3,803 8. Sony Life 16,086 4,483 7. Meiji-Yasuda 2
Slide 37: Maintain Two Distinct Brands
Maintain Two Distinct Brands • • Expand bank distribution Expand bank distribution from successful U.S. dollar from successful U.S. dollar fixed annuity base to fixed annuity base to protection products protection products • • Platform for further Platform for further expansion of products expansion
Slide 38: Management Efficiency Synergy Initiatives
Management Efficiency Financial Performance Synergy Initiatives Gibraltar Life Prudential of Japan • Systems integration • Common platform for: • Insurance administration • Financial reporting • Risk management • Compliance & Internal controls • Human Resources • Business strategy – two distinct bra
Slide 39: Growth in Japan Operations
Growth in Japan Operations Adjusted Operating Income ($ millions) Number of Number of LPs & LAs LPs & LAs POJ and Gibraltar Combined 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 1,000 1,200 1,400 1,600 # of LA # of LP Adjusted Operating Income
Slide 40: Distribution Strength in Selected Markets
Distribution Strength in Selected Markets Prudential of Japan Life Planners Gibraltar Life Advisors First half 2008 : $528 million new business annualized premiums (1) 1) Translated based on constant exchange rate of 106 Japanese yen per U.S. dollar 41% 54% 5% Bank Distribution
Slide 41: Japanese Insurance Operations Overview
Japanese Insurance Operations Overview 1) In millions 2) At end of period 3) Translated based on constant exchange rate of 106 Japanese yen per U.S. dollar for all periods presented $528 $459 $890 $892 Annualized new business premiums (1)(3) 8,978 8,827 9,332 8,900 Number of Life Planners/ Life Advi
Slide 42: Prudential of Japan
Prudential of Japan • • Face amount in force, $244 billion Face amount in force, $244 billion (1) (2) • • $24.8 billion in assets $24.8 billion in assets (1) (2) • • 84 agency offices 84 agency offices (1) • • Ratings: Standard & Poor’s, AA Ratings: Standard & Poor’s, AA • • Ranked #1 in Japan for n
Slide 43: Business Model: Life Planner – Needs-Based Selling
Business Model Life Planner – Needs-Based Selling • Life Planner – a selective, high quality sales force • Only about 3 out of 100 candidates are hired • Well trained and professional • Customer focused • Disciplined, and demonstrates “ missionary zeal ” • Profile of a typical POJ new Life Planner –
Slide 44: Prudential of Japan Emphasis on Protection Products
Yen-based protection products (2) Yen-based savings and retirement income products (5) U.S. Dollar-based products (3) In-force Annualized Premium Mix as of June 30, (1) New Business Annualized Premium Mix months ended June 30, (1) Third Sector (4) 19% 50% 16% 15% 32% 38% 14% 16% 1) Includes single p
Slide 45: Prudential
@® Prudential
Slide 46: Prudential of Japan: History of Growth
Prudential of Japan History of Growth Growth of Business and LPs Number of life insurance Number of life insurance policies in force policies in force (thousands) (thousands) Number of LPs Number of LPs 1,000 1,500 2,000 2,500 3,000 3,500 1,000 1,200 1,400 1,600 1,800 2,000 2,200 Number of LPs Numbe
Slide 47: Prudential of Japan Key Drivers
Prudential of Japan Key Drivers (1) 6.7 Productivity (2) 71.3% 24 – month 82.7% 12 – month Life Planner Retention 90.5% 25 – month 95.0% 13 – month Policy Persistency (Face-amount) 1) Measured as of or for the year ended December 31, 2007 2) Policies sold per Life Planner, per month; includes medica
Slide 48: Prudential of Japan Outlook
Prudential of Japan Outlook • Continued demand for death protection insurance • Customers increasingly selective of insurers • Evolving strategies • “ Business insurance ” continues to be sales growth opportunity for mass affluent and affluent markets Medical insurance, nursing care, and Medical ins
Slide 49: Gibraltar Life
Gibraltar Life • • Strong affinity group relationships • Growing bancassurance business • Face amount in force, $184 billion (1) (2) • • $35 billion in assets (1) (2) • 499 sub-branch offices (1) • Ratings: Standard & Poor’s, AA Moody’s, Aa3 1) As of June 30, 2008 2) Translated based on exchange rat
Slide 50: Business Model: Life Advisor – Affinity Group Relationship
Business Model Life Advisor – Strong Affinity Group Relationship • Acquired by Prudential Financial in 2001 • Expanded Life Advisor distribution • Leveraging Life Planner model to improve key drivers • Wider geographic coverage than POJ to meet market needs and affinity group reach • Teachers Associ
Slide 51: Life Advisor Distribution
Selective Recruiting Standards Training: Adapted From Life Planner System Assignment to Affinity Groups Life Advisor Distribution • Selection criteria designed for sales in affinity group market • Candidates often introduced by successful Life Advisors • Basic training adapted from Prudential of Jap
Slide 52: Affinity Group Relationships
Affinity Group Relationships Teachers Association • Relationship since 1952 • Approximately 500,000 members and retirees • Access to over 1 million teachers and 37,000 schools Other associations, including: • Shoko (Small Business Owners Association) • Food Hygiene Association • Japanese Social Welf
Slide 53: Business Model: Third Party Distribution – Bank Channel
Business Model Third Party Distribution – Expansion of Bank Channel • Commenced bank distribution in 2005 • Disciplined entry and expansion in the bancassurance market • U.S. dollar fixed annuities: a bank channel success story • Regulatory changes provide upside business opportunities for other ret
Slide 54: Gibraltar Life: U.S. Dollar Fixed Annuities Complement Product Line
First Half 2007 First Half 2008 New Business Annualized Premiums (1 ) Bank Distribution 1) Translated based on constant exchange rate for all periods presented of 106 Japanese yen per U.S. dollar; single premium business included at 10% credit 2) Term, recurring premium whole life, riders 3) U.S. do
Slide 55: Gibraltar Life Prudentialized Key Drivers
Gibraltar POJ Gibraltar Life “Prudentialized” Key Drivers (1) Gibraltar POJ 31.1% 71.3% 24 – month 52.7% 82.7% 12 – month Life Advisor Retention 87.9% 90.5% 25 – month 91.7% 95.0% 13 – month Policy Persistency (Face-amount) 3.5 6.7 Productivity (2) 1) Measured as of or for the year ended December 31
Slide 56: Bank Business Overview
Bank Business Overview • Competitive U.S. dollar fixed annuity product formed foundation for relationships • Developing channel access for full deregulation opportunities – Leveraging Prudential’s third-party channel expertise to complement annuities with death protection products – Over 100 POJ Lif
Slide 57: Summary
Summary • Life Planner model offers sustainable competitive advantages • Needs-based selling, emphasis on protection products • Capture additional sales by emphasizing retirement needs of existing and new customers • Superior policy persistency contributes to returns • Gibraltar Life leverages Life
Slide 58: International Insurance Finance
International Insurance Finance John Hanrahan Chief Financial Officer International Businesses
Slide 59: Drivers of Sustainable Financial Performance
Favorable mortality margins drive strong returns High ROE products generate substantial excess capital Capital management opportunities enhance overall returns Duration lengthening supported by long-term nature of liabilities contributes to returns U.S. dollar investing: Natural hedge for Prudential
Slide 60: Prudential of Japan Number of Individual Policies In-force
2,258 2,144 1,914 1,774 1,820 1,956 2,074 2,194 1,348 1,690 1,838 1,180 1,037 1,538 YTD Prudential of Japan Number of Individual Policies In-force In thousands 1) Individual Life and Annuities (1) 1,500 2,500 2Q 07 2Q 08 1,500 2,500 Total POJ POJ excluding Aoba business
Slide 61: International Insurance Pre-Tax AOI
$ millions International Insurance Pre-Tax AOI 1,598 1,428 1,321 $0 $500 $1,000 $1,500 $2,000 Life Planner Business Gibraltar Life $0 $500 $1,000 $1,500 $2,000 2Q 07 2Q 08 YTD
Slide 62: Life Planner Business Emphasis on Protection Products
Yen-based protection products Yen-based savings and retirement income products U.S. Dollar-based products In-force Annualized Premium Mix as of June 30, (1) New Business Annualized Premium Mix months ended June 30, (1) Third Sector 19% 50% 16% 15% 32% 38% 14% 16% 1) Includes single premium business
Slide 63: Gibraltar Life Emphasis on Protection Products
Yen-based protection products Yen-based savings and retirement income products U.S. Dollar-based insurance products In-force Annualized Premium Mix as of June 30, (1) New Business Annualized Premium Mix months ended June 30, (1) U.S. Dollar fixed annuities 3% 74% 9% 14% 22% 39% 32% 7% 1) Includes si
Slide 64: Investment Portfolio Opportunities
Investment Portfolio Opportunities Access to Prudential skill sets – commercial mortgages, corporate credit Equities support portion of long-dated risks Asset Class Diversification Extending asset duration reduces risk profile relative to long-dated liabilities while increasing yield Duration Length
Slide 65: U.S. Dollar Product and Investment Strategies
U.S. Dollar Product and Investment Strategies U.S. Dollar Investments U.S. Dollar Denominated Products Enhanced portfolio yield Natural hedge for Prudential Financial, Inc . Favorable value proposition Favorable expected returns
Slide 66: Improving Investment Portfolio Returns
Improving Investment Portfolio Returns (1) 1) Excludes U.S. dollar reinsurance activity, Prudential’s Tokyo office building, and one-time activities 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $(40) $(30) $(20) $(10) - $10 $20 $30 $40 Normalized Investment Spread Amount ($ millions) Yield
Slide 67: Japanese Portfolio Duration – AOI Enhancement Opportunities
Japan Government Bond Yields Japanese Portfolio Duration – AOI Enhancement Opportunities • Gibraltar and POJ have increased their yen portfolio duration to reduce interest rate risk relative to the liabilities. • Due to the upward sloping yield curve, increasing duration improves investment yield. •
Slide 68: Prudential International Insurance Japan Portfolios
Prudential International Insurance Japan Portfolios (1) Yen Portfolio Duration: 8 years Yen Portfolio Duration: 11 years U.S. Treasury Bonds Government/Government related (primarily Japanese Government Bonds) Investment Grade Corporate Bonds (Aaa, Aa, A) Investment Grade Corporate Bonds (Baa or BBB)
Slide 69: Foreign Currency Income Hedges
Foreign Currency Income Hedges • Yen income hedging plan on 12 quarter rolling basis • A strengthening yen helps earnings over the long term • Yen forward rates imply future strengthening of the yen versus the dollar • Hedging smoothes the impact on earnings, but does not eliminate it • 2008 yen inc
Slide 70: Foreign Currency Hedging Program
Foreign Currency Hedging Program 1) Japanese yen for U.S. dollar 2) Through June 30, 2008 "Rolling Hedge" Program (1) Average Spot FX (2) N/A Average N/A N/A ? Hedge Rate
Slide 71: U.S. Dollar Retirement Products
U.S. Dollar Retirement Products Attractive Value Proposition in a Growing Market 45% 24% Rates offered reflect yields on U.S. dollar investments; compare favorably to Japanese yen-based products U.S.$ Fixed Annuity U.S.$ Denominated Retirement Income Prudential of Japan U.S.$ Denominated Retirement
Slide 72: Retirement Accumulation Products Contribute to High ROE
Mortality Expense Investment Retirement Accumulation Products Contribute to High Product Portfolio ROE Potential Targeted 20+% ROE Portfolio USD Whole Life Term USD Annuity USD Retirement Income
Slide 73: Well Capitalized Companies
Well Capitalized Companies Moody’s (1) Standard & Poor’s (1) AA AA Aa3 Gibraltar Life NR Prudential of Japan • High ROE business generates significant excess capital • “Net level premium reserves” achieved at POJ in 2005; first dividend paid in 2006 • Gibraltar Life: full amortization of “statutory
Slide 74: Capital Redeployment
Prudential International Insurance Capital Redeployment 1,021 1,142 1,104 $0 $500 $1,000 $1,500 After-Tax Adjusted Operating Income Capital Redeployment 5,438 3,098 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Cumulative 2002 - 06/30/08 $ millions
Slide 75: Capital Management Opportunities
Prudential International Insurance Capital Management Opportunities • Cross entity investments • Acquisition and expansion funding • Gibraltar subordinated debt repayment • Reinsurance • Dividends
Slide 76: Life Planners: Lifetime Relationships Built on Skill and Trust
Life Planners: Lifetime Relationships Built on Skill and Trust Nick Miyazaki Chief Marketing Officer
Slide 77: Business Model Founded on Values and Beliefs
Values Worthy of trust, customer-focused, helping society, “winning” for company Vision Most trusted and admired life insurance company Mission Help customers achieve financial security and peace of mind Strategy Fulfill protection needs in customer focused distribution and service based model Busin
Slide 78: Life Planner Values and Beliefs
Life Planner Values and Beliefs • Life insurance protection serves society’s greater good • Financial security and peace of mind are of great value • Customer needs come first; products serve those needs • Continuing, caring service is part of the customer relationship • • The Life Planner is a trus
Slide 79: Critical Success Factors
Critical Success Factors • Character and Integrity • IQ – Mental alertness • Achievement drive • High level of energy • Money motivation • Staying power
Slide 80: Life Planner Selection Process
3% 3% 7% 11% 16% 29% 100% Percentage of Initial Group Life Planner Selection Process Only the Strong Survive 3% HIRE HIRE 3% Targeted Selection Interview 2 Targeted Selection Interview 2 7% Targeted Selection Interview 1 Targeted Selection Interview 1 11% Career Info Program 3 Career Info Program 3
Slide 81: Comprehensive Training
Comprehensive Training Supports Needs-Based Selling STRUCTURED TRAINING PROGRAM Weeks 1 - Weeks 5 - Weeks 51 - Basic Training Program Continuing Continuing On the On the Job Job Training Training
Slide 82: Role of the Sales Manager
Role of the Sales Manager Life Planner’s Personal Trainer and Coach • Performance planning and review • “Training by objective” • Joint sales activity and monitoring • Role-play skill building The Life Planner’s Success The Life Planner’s Success is is The Sales Manager’s Success The Sales Manager’s
Slide 83: KASH Formula
“KASH” Formula • Knowledge • Attitude • Skills • Habits
Slide 84: Prospecting
Prospecting Sales Cycle Prospecting Review Review Preparation Preparation Sales Interviews Sales Interviews Telephoning Telephoning
Slide 85: Performance Review
Performance Review Training Cycle Performance Review Role Play Role Play Review Review Sit Plan Sit Plan Role Play Role Play Review Review Joint Work Joint Work (Monitoring) (Monitoring)
Slide 86: Compensation System
Compensation System C = C C = C Compensation = Contribution
Slide 87: Life Planner Compensation
Life Planner Compensation Rewards Productivity and Persistency 32% 22% 46% Percentage of Overall Life Planner Compensation (1) Compensation = Contribution 1) Based on year ended December 31, 2007 for Life Planners beyond initial training allowance period First Year Commission Renewal Commissions Pro
Slide 88: Standing Behind The Client For a Lifetime
Standing Behind The Client For a Lifetime Model Pattern of Lifecycle Income and Expenses Model Pattern of Lifecycle Income and Expenses College Employed; Married Primary Secondary School School Life Cycle of Pre- second child School College Employed; Married Primary Secondary School School Life Cycl
Slide 89: The Life Planner Career
The Life Planner Career • Strong values and beliefs: protection life insurance serves society • A career that’s “right” for 3 out of 100 candidates • Comprehensive, ongoing training • Customer needs drive sales • Compensation rewards productivity, persistency • Entrepreneurial success while “making