Eagle Star Ireland Products

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Eagle Star Ireland Products

• Three Categories
• Protection
• Savings Investment
• Pensions Personal Retirement Savings Accounts
  (PRSAs)

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Protection Products

• Life Serious IIlness - Guaranteed Term
  Protection
• This is a level cover product
• Guaranteed Mortgage Protection
• This is a decreasing cover product

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Protection ProductsProduct Structure

• Premiums are guaranteed for the term
• Term is 5 years 40 years
• No encashment value available

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Protection ProductsBenefits Available

• Main Benefits
• Life Cover
• Serious Illness Cover
• Pays a lump sum on diagnosis of one of a set of
  39 specified serious illnesses.

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Protection ProductsBenefits Available

• Optional Benefits
• Personal Accident
• Hospital Cash
• Surgical Cash
• Own Occupation Permanent Total Disablement

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Protection ProductsPolicy Size

• Average Premium
• 40 - 50 per month
• Average Sum Insured
• 200,000 for Life Cover
• 90,000 for Serious Illness
• Average Term
• 20-25 years

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Protection ProductsPolicy Size

• 30 of policies have serious illness cover
• Serious Illness is 40 of premium income

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Protection ProductsCommission Rates

• Initial Commission of 10 times term (maximum of
  90)
• Renewal Commission of 3

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Savings and InvestmentSingle Premium

• Matrix Investment Bond
• Unitised With Profit Bond
• Protected Dynamic Investment Bond

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Savings InvestmentsMatrix Investment Bond

• Unit Linked single premium product
• Allows access to a range of 25 Matrix funds
• 17 funds managed by Eagle Star
• 8 from external managers
• Clients can pick funds based on their attitude to
  risk

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Savings InvestmentsMatrix Investment Bond

• Typical policy size 50,000
• Typical commission rates
• Initial Commission of up to 3.5
• Fund based commission of up to 0.5 per annum

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Savings InvestmentsUnitised Profit Bond

• Client invests in a Unitised With Profit Fund
  which provides a smooth distribution of
  investment earnings through regular dividends
• 10 year capital guarantee

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Savings InvestmentsUnitised Profit Bond

• Typical policy size 75,000
• Typical commission rates
• Initial Commission of up to 3.5
• Fund based commission of up to 0.5 per annum

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Savings InvestmentsProtected Dynamic
Investment Bond

• The Protected Dynamic Fund fund invests in a
  combination of an Eagle Star managed fund with a
  high equity content and a cash fund.

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Savings InvestmentsProtected Dynamic
Investment Bond

• The portion invested in the Managed Fund is
  adjusted depending on how markets perform

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Savings InvestmentsProtected Dynamic
Investment Bond

• The fund protects the client from his policy
  value falling below 80 of the highest value ever
  achieved.

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Savings InvestmentsProtected Dynamic
Investment Bond

• Typical commission rates
• Initial Commission of up to 3.5
• Fund based commission of up to 0.5 per annum

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Savings InvestmentsSavings Plus

• Regular Savings unit-linked product allowing
  access to the Matrix range of funds

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Savings InvestmentsSavings Plus

• Typical Commission rates
• 15 initial commission
• 3 renewal commission
• Typical Policy size 200 per month

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Savings InvestmentTaxation

• No tax is applied to growth within the fund
• Exit tax rate is applied at a rate of 23 on the
  excess of the surrender value over the premiums

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Pensions Personal Retirement Savings Accounts

• Pension Products
• Personal Retirement Savings Accounts (PRSAs)
• Standard PRSAs
• Non-Standard PRSAs

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Pensions Personal Retirement Savings Accounts

• All are unit linked products allowing clients to
  invest in the Matrix range of funds

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Pensions

• Single Premium Pensions
• Typical Premium size 10,000
• Typical Commission rate
• Up to 5 initial commission

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Pensions

• Regular Premium Pension
• Typical policy size
• 350 per month
• Typical Commission rate
• 2.5 term (maximum 30) initial commission
• 3 renewal commission

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PRSAs

• New type of retirement savings product introduced
  in 2003
• Simple, portable product with clear charges
• Two types
• Standard PRSAs
• Non Standard PRSAs

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PRSAs

• Standard PRSAs
• Capped charges
• Typical policy size 250 per month
• Typical Commission
• 1.5 term to a maximum of 10 initial
• 3 renewal

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PRSAs

• Non Standard PRSAs
• Charges are not capped
• Typical Commission
• 2.5 term to a maximum of 30 initial
  commission
• 3 renewal commission

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PRSAs

• Standard PRSAs have made up about 75 of the
  market since the introduction of PRSAs

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Pensions PRSAs

• Tax relief is available, up to certain limits, on
  contributions paid to Pension or PRSA plans
• No taxation is applied to growth within the
  investment funds

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Pensions PRSAs

• Part of the pension fund may be taken tax free
• The remainder of the fund may be used to purchase
  a retirement annuity
• For self employed individuals or for PRSAs, the
  balance could also be invested in an Approved
  Retirement Fund (ARF)

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Approved Retirement Fund

• Alternative to annuity
• Client retains control of investment and can take
  an income as needed
• Typical Commission
• Up to 3 initial
• Up to 0.5 fund based commission

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Distribution Channels

• Market Shares
• Insurance Brokers 55
• Bancassurers 28
• Direct Sales 17

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Distribution Channels

• Insurance Brokers are very strong in the pensions
  market where over two thirds of sales are through
  insurance brokers

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Distribution Channels

• Eagle Star Distribution
• 85 Insurance Brokers
• 15 Direct Sales

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Distribution Channels

• There are two types of insurance brokers in the
  Irish market

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Distribution Channels

• Authorised Advisers (AAs)
• Must advise on all available products
• Restricted Activity Investment Product
  Intermediary (RAIPIs)
• Advise on products from a limited range of
  companies

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Distribution - Sales Process

• Cold Calling is not allowed
• Initial contact with clients must be initiated by
  the client

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• The following must be completed before a product
  can be sold
• Fact-find of clients financial situation
• Letter explaining reasons why product is suitable