Closing Remarks

1
Closing Remarks

• Kent G. Callahan
• President CEO
• Transamerica Retirement Services

2

U.S. Market Overview (SPARK)

• DC Assets up 10 in 2004 to 4.3 Trillion.
• 401(k) assets jumped 10 in 2004 to 1.98
  Trillion.
• 12,500 new 401(k) plans started in 2004.
• 50.4m participants in 401(k) plans at end
  of 2004.
• 409,000 401(k) plans in U.S as of 12-31-04.

3

2004 401(k) Demographics (PI)
? Average age 43 ? Average years in the
plan 7.9 ? Average planned retirement
age 66 ? Average balance 40,000 ?
Average 401k deferral rate 6 ? Average
corporate match 3
4

Where Retirees Get Their Money? (Social
Security Administration)

? Social Security 39 ? Work
Earnings 24 ? Employer Plans 18 ?
Personal Savings 16 ? Other 3

5

Why are TPAs Well Positioned?
? Personal savings rates have dropped by
71 in past 10 years. ? of U.S. retirees as
of 12-31-04 is 29.9m vs. a projected number of
40.7m at end of 2015. ? Corporate Defined
Benefit plans have declined by 73 in past 18
years. (112,208 vs. 29,512 at end of 2003) ?
39 of U.S. workforce covered by
retirement plans in 1980 vs. 50 in 1999.
6
Commitment to the TPA Channel

• ? TRS fastest growing channel over past 3 yrs.
• ? Projection for 20 annualized growth through
• 12-31-06.
• ? 3-31-04 pipeline 282,176,455 versus
• 3-31-05 363,799,579.
• ? Increased TPA dedicated staff by 100 over
  past 12 months.

7

TRS 2005 Channel Strategy
Broker- Dealer
2005 Channel Strategy
Broker Dealer
Wire Houses
Payroll Firms
Banks
TPA
8
Focus on Life Pensions in Target Markets
We concentrate on our core business
Insurance, with a strong emphasis on life
insurance, pensions and related savings and
investment products. We are active in health
insurance in the US, the Netherlands and Spain,
and offer no major medical coverage. Health
business in the US consists mainly of accidental
death and supplemental health insurance and in
the Netherlands of disability business.
9M 2004 Income by Product Segment

9M 2004 Income Before Tax Geography
9M 2004 Income Before Tax Geography
Before realized gains losses and interest
charges
9
Focus on Key Markets

• C

10
Industry Rankings

Individual Term Life Individual
Universal Life Market Share of YTD Sales
Market Share of YTD Sales September
30, 2004 September 30, 2004 1.
AIG 10.1 1. ING
11.7 2. Protective Life
8.0 2. Hancock/Manulife 10.3
3. AEGON USA 6.7
3. AIG 7.3 4. State Farm
6.1 4. Pacific Life
7.1 5. Fidelity Guaranty
4.9 5. AEGON USA 5.4
6. Prudential 4.6 6.
Jefferson Pilot 5.3 7.
Genworth (GE) 4.6 7.
Travelers 5.0 8. Legal
General 4.0 8. MetLife
4.2 9. AXA/MONY 4.0
9. New York Life 3.6 10.
New York Life 3.6 10.
AXA/MONY 2.9 Source
Internal Research Source Internal
Research
3. AEGON USA 6.7
5. AEGON USA 5.4
11
Industry Rankings
Variable Life
Institutional Pension YTD Sales
Market Share of YTD Sales September 30,
2004 September 30, 2004 1. IDS
214 1. Principal 19.5 2.
Pacific Life 194 2.
Hancock/Manulife 18.6 3. Hartford
193 3. Nationwide
16.5 4. Nationwide 122
4. Prudential 15.8 5. AXA/MONY
121 6. MetLife 113
6. Hartford 7.0 7.
ING 105 7. MetLife
5.4 8. Hancock/Manulife 102
8. Securian 1.3 9.
Allstate 95 9. OneAmerica
1.1 10. Travelers 1.0
Source Internal Research Source Internal
Research
5. AEGON USA 11.0
10. AEGON USA 88
12
Industry Rankings

• Traditional GIC Synthetic GIC
• Market Share of Business Market Share of
  Business
• September 30, 2004 September 30, 2004
• 1. Prudential 43.3 1. AEGON USA 15.3
• 2. Principal 8.5 2. AIG 10.6
• 3. MetLife 7.3 3. ING 6.4
• 4. New York Life 6.9 4. Pacific Life
  2.2
• 5. Travelers 6.4 5. MetLife 1.9
• 6. John Hancock 5.5 6. Principal
  0.7
• 7. Genworth (GE) 4.6 7. Prudential
  0.5
• 8. Hartford 4.5 8. Allstate 0.1
• 9. AEGON USA 4.2
• Protective Life 2.5
• Source Internal Research Source Internal
  Research

13
2005 Road Map

? 10 increase in customer satisfaction. ?
Activity based sales service model. ? New
investment monitoring selection tools. ?
Sponsor advice. ? TPA channel expansion. ?
Bank of America relationship expansion. ? TA
branding campaign.
14
2005 Road Map (contd)

? Post client visit quality scoring. ?
Continued product enhancements. ? Merrill
Lynch launch. ? TRS University launch. ? NBI
end-to-end. ? MSDW launch ? Training,
training, training. ? 1.7 Billion (21
growth).

15
TRS Strategic History

1997 ? Shift to high growth strategy. 1999
? Creation of Business Development Group. 2000
? Creation of full-time B/D Management Team.
2000 ? Launch of Bank Channel. 2001 ? Launch
of TPA Channel. 2002 ? Creation of Special
Markets Group.
16

TRS High Growth Strategy

Sales Results ? 1997-2004 Growth
Case Count 1997 415,095,397
815 1998 524,831,010 26
1,074 1999
729,469,958 39 1,305 2000
860,126,452 18 1,866
2001 713,716,442 -17
1,767 2002 1,018,000,000 43
1,724 2003 1,228,280,933 12
1,515 2004 1,411,200,000 16
1,200 19.5
13,000 As of 12/31/04
17

Why does TRS do these?

To Listen Learn!
18
(No Transcript)