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					          TOWER

YEAR ENDED 30 SEPTEMBER 1999

  RESULTS ANNOUNCEMENT
     TOWER: A Well Diversified
Australasian Financial Services Group

      - with a strong growth record
         and excellent prospects

-a strong 1998/99 result characterised by
       strong growth and profitability
                   Four Business Segments
                                                     Assets:
                                                    $0.3 billion




DIMENSIONS:                                                          Assets:
                                      Assets:                       $2.4 billion
                                     $5.2 billion
AUM: 1999 = NZ$15.7 billion
Australia/NZ Pacific % = 60/40
Customers : 800,000
Staff: 1,500
Stable experienced management team

STRUCTURE:
“Fleet of ships”
Holdings:      Strategy, Finance,
               Technology
Subsidiaries:     Focus and
                                                      Assets:
             flexibility                             $7.2 billion
             Growth and Efficiency - Profit
                       Drivers
                             ASSETS UNDER MANAGEMENT                                                                                  EXPENSES (as a percentage of Assets)
 $ 000's
16,000,000                                                                                                                      5.0
14,000,000                                                                                                                      4.0
12,000,000
10,000,000                                                                                                                      3.0
 8,000,000                                                                                                                  %
                                                                                                                                2.0
 6,000,000
 4,000,000                                                                                                                      1.0
 2,000,000
                                                                                                                                0.0
         0


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                                                                                                                                                   Total productivity CAGR = 9%
                                              CAGR = 25%
                                                                                                                                                   Staff productivity (Revenue per capita)
                                                                                                                                                   risen by 12% in 1999
        TOWER FINANCIAL
         PERFORMANCE
     Aspects of Growth in 1998/99
• Assets up from $12.3 billion to $15.7 billion
  (28%)
• Premiums up from $670 million to $932
  million (39%)
• Pro-forma earnings before interest and tax
  (ebit) $82 million to $100 million (22%)
                  Financial Performance
NZ$m (Proforma)                      1997A 1998A 1999F 1999A 2000F

Revenue ($bn)                        1.1      1.0       1.5     1.3    2.0
Operating Margins                    20        46       45      58     60
Investment Returns                   39        19       29      22     25
Operating Profit After Tax           59        65       74      80     85
Financing Costs After Tax            (4)       (8)     (14)     (15)   (22)
Other Income - Partly Paid Shares    11        11       11       8     11
Total Profit After Tax               66        68       71      73     74
     A-Actual   F-Forecast

      Strong growth in after tax operating profits (>20% up)
      High proportion of operating margins (69%)
      Profitable new business
             Financial Performance                                       2000F*
NPAT (NZ$m) (Proforma) 1997A 1998A 1999F 1999A 2000F                     Adj %

Savings and Investment            46      42       54      57     68     50
Risk Insurance                    15      15       17      18     13     30
Asset Management                   2       4        4       3      6     10
Trustee Services                   7       6        7       7      8     10
Financial Costs After Tax         (4)     (8)     (14)     (15)   (22)    -
Other Income                       0       9       3        3      1      -
Total Profit After Tax            66      68       71      73     74     100
A-Actual   F-Forecast
* Approximate % breakdown adjusted for TLA Risk Business
 Balanced diversity of profit sources
 Ralph impact: more risk business/New Zealand component
                          Capital Structure
  NZ$m                                                          1 Oct 1999         30 Sept 2000F

  Investments                                                       5,338               6,167
  Other Assets                                                        474                 463
  Balance Sheet Total Assets                                        5,812               6,629
  Less:
      Bank debt                                                      440                  490
      Other liabilities                                            4,625                5,368

  Balance Sheet Net Assets                                           747                   771
  On and Off Balance Sheet Total Assets (AUM)                    15,762                16,898
  Gearing (1)(2)                                                   37%                   39%

Note: (1) Total debt to total debt and equity
      (2) $115 million bank debt repaid in 2001 upon receipt of second instalment of partly paid
          shares. Gearing reduced to 31%.
      (3) 1999 NTA/share (fully paid): $4.51
              Australian Life Market
                      (Source: Rice Kachor Research)

                      New Annual Premium
     - Total Annual Premium business (June Years)
                               Market Share   Rank     Rank   Rank
Company                          1999 %       1999     1998   1995

Mercantile Mutual                  16.8        1         2      4
AXA                                14.8        2         3      2
Colonial                           14.8        3         6      6
Commonwealth                        8.5        4         5      8
TOWER                               6.4        6        10     14
AMP Life                            4.0        7         1      1
National Australia                  3.5        8         8     10
Aus Casualty & Life                 2.8        9        13     12

4 Year Growth Rate: TOWER 23%, Industry - 4%
                     Australian Life Market
                       (Source: Rice Kachor Research)
         Single Premium Business (June Years)
                                 Market Share   Rank   Rank   Rank
Company                            1999 %       1999   1998   1995
AMP Life                            27.6         1        1      1
Mercantile Mutual                   10.7         2        3     10
MLC                                  8.7         3        2      3
Westpac Life                         8.6         4        5     17
Commonwealth                         7.6         5        4      2
Macquarie Life                       4.3         6        6     12
Zurich                               4.0         7       14     14
ANZ                                  3.7         8        8      6
Colonial                             3.4         9       22     18
AM Life                              3.2        10       17     25
National Australia                   2.7        11        9      9
GIO Life                             2.4        12       11     11
AXA                                  1.8        13        7      5
Norwich Union                        1.8        14       15      8
TOWER                                1.7        15       18     24
 4 Year Growth Rate: TOWER 65%, Industry 25%
              Australian Life Market
                     (Source: Rice Kachor Research)

                In-force Annual Premiums
     - Total Annual Premium business (June Years)
                              Market Share   Rank     Rank   Rank
Company                         1999 %       1999     1998   1995
AMP Life                         16.9         1          1      1
AXA                              16.5         2          2      2
Colonial                         15.9         3          5      6
Mercantile Mutual                12.5         4          3      4
TOWER                             5.3         5          9     12
MLC                               4.5         6          6      3
Royal Sun Alliance                4.2         7         18     18
Zurich                            4.0         8          8      7
Westpac Life                      3.5         9         10     11

4 Year Growth Rate: TOWER 26%, Industry - 4%
                   New Zealand Market
                             (Source: ISI)

                      TOWER Market Share
                                    Year ended   Year ended Year ended
                             1999
                                      30/9/99      30/9/98    30/9/97
                             RANK
                                        %            %          %
New Lump Sum Investments       2
Total Personal Investment              19.6         15.0       20.5

Regular New Investments        6
Personal Superannuation                10.8         11.2        9.3
Total (incl Term & Health)              8.1          7.6        6.7

Regular In-force               5
Personal Superannuation                13.8         14.0       13.8
Total (incl Term & Health)              9.1          9.1        8.9
        New Zealand Retail Market
                        (Source: IPAC)

                IPAC - Net Funds Flow
                      (September Years)

                       Market Share   Rank   Rank   Rank
Fund Manager             1999 %       1999   1998   1997
Westpac Trust             16.0         1       6     38
TOWER                     15.1         2       3     18
BNZ                       13.3         3       8      5
NZ Funds Management       10.1         4      11      3
ASB Bank                  10.1         5       7     24
Armstrong Jones            8.7         6       4      7
          New Zealand Retail Market
                                (Source: IPAC)

       IPAC - Net Funds Under Management
                        (September Years)

                                 Market Share    Rank   Rank   Rank
Fund Manager                       1999 %        1999   1998   1997
TOWER                               11.7          1       1     1
Royal & Sun (incl GT in 1999)       10.6          2       9     8
AMP                                  9.8          3       3     2
Armstrong Jones                      9.3          4       4     3
BNZ                                  7.6          5       7     5
ANZ                                  6.7          6       6     6
                                            Australian Shares - Specialist Funds
                                   Risk vs Return for 5 Years to 31 October 1999 (calculated monthly )
                           20%
                                                                              FSFM
                                                                  MAM
                                       BNP




                           16%                                  AMPSMP               MML   TOW
Annualised Return (% pa)




                                                                                     MBA
                                                          ANZ


                                                                                                TYN
                                      PERP      SCHR                              CSAM
                                                                        DAM
                                                                     MAMI



                                                  NAAM
                                             MLCSF ROTH                  ASX-50
                                                                          HSBC
                           12%                                                         WEST
                                                                                        AXAA
                                                                     GIO
                                                                ASX-AO                   HHAM
                                                                  CNTY


                                                          SSB
                                                                         UBS
                                                                               SMF                              MAQC
                                                                                                 ASX-SO
                                                                                                                       ASX-M50

                           8%
                             11%       12%                              13%                               14%                         15%
                                                 Annualised Standard Deviation (% pa) Calculated Monthly                   William M Mercer
*NOTE: TOWER remains the only manager to outperform 12 month rolling benchmark every month for 7 years
                                              Australian Pooled Fund Survey - All Funds
                                  Risk vs Return for 5 Years to 31 October 1999 (calculated monthly)
                           13%
                                                                   BNP




                                                                                      MML

                           12%


                                                                                                ZUR
                                                                                             ANZ
Annualised Return (% pa)




                                                                                             ROTH
                                                                                                                 MLCG
                                                      MBA
                                                                                                                             CNT
                           11%                                              HSBC NOR
                                                                               AMPDG
                                                     NAAM
                                                                            MAM

                                                                                     SCHR TOW

                                                              MLCB
                                                     SSB                          AXA
                                                                                   WEST
                                                                                BT
                                                                                       MAQ
                           10%

                                         SUNC
                                                                                                          SUNA
                                                                          CBA
                                                                                                    SMF



                           9%
                             5%                 6%                                           7%                                    8%
                                                Annualised Standard Deviation (% pa) Calculated Monthly                 William M Mercer
                               Tower Asset Management (NZ): New Zealand Equities
                                        Risk/return over the last 5 years

5 Year return (% p.a.)
     10.0%


                                        NZ Funds          BT
      9.0%

                                             Guardian Trust
      8.0%
                                                      Tower         Armstrong Jones
                         CFS
      7.0%
                                                                               Royal & Sun

      6.0%
                                                                                             AMP

                                                                                             AXA
      5.0%
                                                              Index- Active
                                                                     ANZAM
                                  BNZ
      4.0%
                                                   Fidelity

      3.0%
                                                               Westpac

      2.0%
                                                                                                   CIGNA


      1.0%
          8.5%       9.0%       9.5%      10.0%       10.5%      11.0%       11.5%    12.0%         12.5%   13.0%
                                              5 Year standard deviation (Risk)
                                   Tower Asset Management (NZ): Balanced Fund
                            Five year returns and volatility of discretionary funds
                                             as at 30 September 1999

                                                   Median 'risk'
10.0%



9.5%

                                                          Armstrong Jones

9.0%
                                  Guardian Trust
                                 Tower
                                                              ANZAM
8.5%
                                                              NZ Funds
                                                        BNZ                      AMP              Median
                                                                                                  return
8.0%
                                                                   BT
                                                                   Royal & Sun
7.5%                                                                                       AXA



7.0%

                                                           Westpac

6.5%                           CFS



6.0%
    3.0%                3.5%         4.0%              4.5%              5.0%      5.5%                 6.0%
             Fidelity                                                                             CIGNA
  Return: 6.7% Risk: 1.9%                                                              Return: 4.0% Risk: 6.2%
    7 Pillars of TOWER’S Current
     Strategy aimed at sustained
          profitable growth
• Positioning and image
• Control of distribution
• Product and service leadership
• Strategic approach to technology
• New organisational forms and
  competencies
• Capital restructuring
• The Asian opportunity
Brand Awareness                            Brand Positioning
• Transition to new TOWER brand            •   TOWER proposition based on “self
  completed successfully                       reliance”
• Significant increase in awareness of
  “TOWER”                                  •   Fresh, dynamic and energetic imagery

New Zealand (6 months)                     •   Awareness for TOWER as being
Unprompted awareness amongst our target        “dynamic” increased from 19% to 27%
audience increased from 11% to 20%
Prompted awareness increased from 86% to   •   “Self reliance” expressed in a dynamic
91%                                            format will work in Asia


Australia (9 months)
Prompted awareness increased from 8% to
17%
Prompted awareness amongst our target
audience from 16% to 23%
             Customer Retention
         • TOWER’s high customer retention - a major profit driver

                                            1998          1999
                                              %             %
Tower Investment Savings
Regular Life business                       97            98
Regular Investment business                 96            95
Lump Sum Investment business                91            89
Tower Insurance
New Zealand business                        87            88
Tower Health
Total business                              83            81
Total non-bank business                     91            91
Tower Life Australia
Ordinary business                           84            88
Superannuation business                     92            91
                  Distribution
• Long term strategy shift from significant dependence on
  independent distributors to a balanced multi-channel
  approach

• Group Distribution Channels

                                         1998   1999   2003
  Independent financial intermediaries    50%   47%    30%
  Semi-tied TOWER Advisors                25%   26%    20%
  TOWER Branches (Direct)                 25%   25%    25%
  Direct mail and Electronic Distribution 0%     2%    25%
      TOWER Life Australia/
         FAI Life Merger
• Immediate reduction of 84 staff - redundancy costs A$5
  million
• Very good cultural fit
• Distribution issues successfully addressed
• Short term product issues addressed with full product
  review over next 9 months
• Annualised costs savings of A$7 million already achieved
  and expected to reach A$10 million+ in next 18-24 months
• Merger EPS positive within first year
          TOWER Life Australia
           Product Leadership
• A centrepiece of our strategy
• Over the last 6 years TOWER Life Australia has won more awards for
  product excellence than any other life insurance company in Australia
  (Source: Personal Investor Magazine)
   – TOWER’s products in top 3 in their category 42 times since 1994
     (Next: Colonial group 35 times and AMP 26 times)

   1996    Life Insurance Company of the Year
   1997    Life Insurance Company of the Year
   1997    Platinum Investment Products Award
   1998    8 Product Awards
   1999    6 Product Awards
       Strategic Technology
• Capex budget $25 million in 1999 ($24.6 million
  spent)
• Implementation customer interface technology (500
  licences)
• AIA customer management by June 2000 (on target)
• Advanced WRAP Account system (Supervisor in
  2000)
• Y2K: Focus since 1997 - High level of confidence
• Investment management strategic alliance signed
  (DST)
Key Initiatives In 2000 (1)
GROWTH
• Build “Tower Brand” awareness in Australia (17% to
  30%)
• Expand Mastertrust ventures from current two
• Continue to seek growth through innovation in Unit
  Trusts/Single Premium
• Aggressively seek Australian equity wholesale
  mandates
• All 800k clients on single database for cross-
  marketing
Key Initiatives in 2000 (2)
VALUE
• Complete TLA/FAI Life merger - Savings A$10m p.a.
• Seek S&P rating for Group
• Address Australian franking credit issue
TECHNOLOGY
• Advanced WRAP account technology for ongoing private
  superannuation growth
• Building of direct/e-distribution on Hi-tech back-office
  foundation
EXPANSION
• Register and establish “Tower (Asia)”
• Modest acquisition activity
              Conclusion (1)
   TOWER remains one of Australasia’s fastest growing
     financial services groups (25% p.a. for 9 years)

The 1999 financial year:
• RAPID - Asset growth: 28% to $15.7 billion
            - Premium growth: 39% to $932 million
            - EBIT growth: 22% to $100 million
• Prospectus profit comfortably exceeded ($73
  million)
• Diversified, stable earnings stream
           Conclusion (2)
• Progress with strategic development
   – Brand awareness up
   – Productivity improved
   – Technology advanced
   – Product leadership maintained
and sound, planned momentum for 2000 financial
  year

				
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