1. 08 © UFS
William J. Mullaney
President
Institutional Business

2. 2008 Institutional Highlights
• Excellent top-line growth
• Solid core earnings
• Aggressively managed expenses
• Completed DHMO acquisition
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3. Institutional: 2008 Results and 2009 Plan
($ Millions)
2007 2008E 2009P
Premiums, Fees & Other 13,920 16,485 - 16,730 17,285 - 17,685
Operating Earnings 1,967 1,655 - 1,675 1,600 - 1,660
Operating ROE 20.6% 16.5% - 16.7% 15.1% - 15.7%
2009 Drivers
Tempering top-line growth in certain product lines
Lower variable net investment income
Aggressively manage expenses
See Appendix for non-GAAP financial information definitions and/or reconciliations.
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4. Institutional Business – Top-Line Growth
($ Millions)
Premiums, Fees & Other 1
5.3%
wth: +
G ro
08-09
1
9.0%
$20,000
GR: + $17,285 - $17,685
08 CA
05- $16,485 - $16,730
$16,000
$13,920
$13,327
$12,812
$12,000
$8,000
$4,000
$0
2005 2006 2007 2008E 2009P
Group Life Non-Medical Health Retirement & Savings
1Calculated using 2008E/2009P mid-point.
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5. External Forces Impacting Benefits
Recession leading to Financial
reduction in payrolls strength and
expertise is
Cost pressure impacting
more important
benefit spending
than ever to our
customers
Equity market volatility
affecting pension plan
funding
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6. Minimizing the Recession Impact: Disability
Long Term Disability Case Load
• Slowed growth through
disciplined new business -22.2%
underwriting
• Factored in an increase in
incidence in renewal pricing
• Expected loss ratio
consistent with prior years
• Focused resources on
business fundamentals
2006 2007 2008E
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7. Managing Institutional for Long-term Growth
• Unmatched customer relationships
• Careful risk selection
• Disciplined pricing
• Sophisticated asset-liability management
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8. Group Life – Differentiation and Discipline
• Comprehensive set of products and services
• Consultative approach
• Continuous innovation and investment
• Sound pricing and underwriting
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9. Group Life – Differentiation and Discipline
Growing faster than the market; strong ROE
Operating Earnings
Premiums, Fees & Other
($ Millions) ($ Millions)
1
R
C AG
1
$8,000 R
C AG %
$7,555-
10.2 $525-$545
5.5% $550
$7,585
$463
$7,100 $426
$450
$400
$7,000
$6,754
$350
$6,444
$250
$6,000
$150
$50
$5,000
2005 2006 2007 2008E
2005 2006 2007 2008E
1Calculated
using 2008E mid-point.
See Appendix for non-GAAP financial information definitions and/or reconciliations.
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10. Growth in the Dental Business
• Double digit top-line growth
• High ROE
• Broader product portfolio
– Preferred Provider Organization (PPO)
– Dental Health Maintenance Organization (DHMO)
– Voluntary
– Retiree
• Significant opportunities for continued growth
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11. Leveraging Opportunities for Growth
CA/FL/TX Dental Sales
• Purchase of DHMO ($ Millions)
PPO DHMO
capabilities in CA, FL $300
and TX
$202
$200
• Integrated product $149
$122
offering
$100
• Expanded distribution
$0
2007 2008E 2009P
See Appendix for non-GAAP financial information definitions and/or reconciliations.
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12. Pension Closeouts
Closeout Sales (U.S./U.K.)
• Heightened plan sponsor
($ Millions)
awareness of risks in $1,425 - $1,585
$1,400
managing pensions
$1,200
• Greater appreciation $1,000
for guarantees $800
$600
• Expertise even more $400
$208
$147
important $200
$0
2006 2007 2008E
See Appendix for non-GAAP financial information definitions and/or reconciliations.
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13. Institutional Operational Excellence Initiatives
• Market segmentation
Distribution
enhancements • Broker penetration strategy
• Process automation
Small market strategy
• Sourcing of work
• Process re-engineering
Operational
re-engineering • Deployment of workflow capabilities
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14. Institutional Business: Focus for 2009
• Maintain strong business fundamentals
• Invest in long-term growth opportunities
• Aggressively manage expenses
• Continue to tell our story in the market
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