LV=Business-Intelligence-Report

For financial adviser use only Business Intelligence Report Business Intelligence Report Test & Co August 2016

August August 2016 Business Intelligence Report - August Summary Overview The Total Number of Applications and APE in £’s, shows the number and value of applications the firm is generating each month and on a rolling year to date basis. Trends may also be reviewed over a three month period, as compared to the previous twelve months, etc. The application to conversion rate shows how many applications convert and go live. If the conversion ratio is low, the performance metrics below can be used to reveal more detail. One metric is the Business Mix, the spread of products for the business. Another metric is the Average Case Size and whether this is lower than the Average Firm Type. The report also shows the Monthly and Annual Net New Business figures. Lapse Rates The Lapse Rates are shown for Year 1 (rolling 12 months), Year 3 and Year 5. The first year lapse rates are of particular interest as this gives a fair indication of how many policies are still ‘on the books’ within the first twelve months as a %, and benchmarked against a similar group of firms. If the % shown is higher than expected, then your account manager can agree an action plan to help bring the business back to the benchmark. And if there are high lapse rates at Year 3 and 5, steps to help improve persistency. Other measures include the CFI and Cooling off rate, which shows a policy which is put live and no premium is paid, or with an active ‘cool off’ by the customer. As well as Not take up (NTU) after 3 months, which shows applications submitted and that have been through the new business process, but not Not Taken Up. Client Demographics Understand the customer profile and risk ratings for your business in an instant as this shows the monthly breakdown by gender, smoker, loading and age distribution. Plus, in your consultation your account manager will add further insights, analysis and detail to help draw out the key figures and trends driving the business’s performance. Strictly Confidential

Test & CoMetrics Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Total Business Mix (Net New Business)Applications # 248 350 312 234 368 313 295 222 246 251 322 299 3,460 3% 2% 2% 1% 0%Applications APE £81,473 £91,444 £85,909 £62,555 £98,231 £101,431 £94,566 £78,910 £82,610 £93,002 £120,101 £93,841 £1,084,073 5% 48%Net Completions # 155 185 180 141 216 174 165 106 124 137 163 153 1,899 11% INCOME PROTECTIONNet NB APE £48,904 £52,001 £48,505 £43,009 £57,245 £58,396 £50,318 £42,493 £46,789 £51,132 £59,907 £48,096 £606,795 PERSONAL SICK PAYAvg Case Size £315.51 £281.09 £269.47 £305.03 £265.02 £335.61 £304.96 £400.88 £377.33 £373.23 £367.53 £314.35 £319.53 28% MLP BP ACCELERATED - DIRECT TERM £27,396 £25,677 £28,425 £19,731 £25,425 £25,761 £24,580 £18,023 £20,323 £22,876 £31,625 £19,595 £289,437 TERM - 50 PLUS £15,656 £19,696 £14,644 £15,498 £22,144 £19,264 £16,890 £11,684 £16,444 £21,475 £20,567 £23,322 £217,284 BP RLC - TERM £2,853 £3,183 £1,850 £3,560 £5,132 £8,941 £5,440 £7,515 £4,571 £3,421 £4,866 £3,115 £54,447 ACCELERATED - ACCELERATED £2,999 £3,423 £3,475 £4,220 £4,529 £4,427 £3,392 £5,271 £5,439 £3,360 £2,849 £2,064 £45,448 RELEVANT LIFE COVER - CRITICAL ILLNESS BP TERM - INCOME PROTECTION £0 £0 £111 £0 £0 £0 £0 £0 £0 £0 £0 £0 £111 £0 £22 £0 £0 £15 £3 £16 £0 £12 £0 £0 £0 £68Applications APE Average Case Size (Net New Business) £140,000 £350 £120,000 £100,000 £300 £80,000 £T2e5s0t & Co 319.53 £60,000 £40,000 Avg of Firm Ty2p5e2.393 £20,000 £200 £0 £150 £100 £50 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 £0 Avg of Firm Type Test & CoNet NB APE Annual Net NB APE £70,000 £600,000 £60,000 £50,000 £500,000 2014 2015 2016 £40,000 £400,000 £30,000 £480,015 £515,221 £414,376 £20,000 £10,000 £300,000 £0 £200,000 £100,000 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 £0 2015 2016 2014 Strictly Confidential

LAPSE RATES Test & CoRolling 12 months CAUSE FOR CONCERN Test & Co Company A Company B Company C Company D Company E Company F Company G Company H Company I BenchmarkY1 Lapseable Count 887 5,974 1,779 132 329 42 43 18 7 7 20.4%Y1 Lapses 10,150 70,328 19,886 968 6,616 781 145 194 70 174 7.1%Y1 Lapse Rate Annualised 17.5% 22.4% 18.9% 20.2% 15.0% 17.0% 8.0% 11.7% 15.9% 24.4% 6.1%Y3 Lapseable Count 1,432 2,948 1,545 86 798 19 100 14 3Y3 Lapses 18,886 70,328 19,886 968 6,616 781 145 194 70 8Y3 Lapse Rate Annualised 7.6% 5.8% 8.1% 9.8% 4.4% 0.0% 8.3% 8.6% 67.0% 174Y5 Lapseable Count 1,067 141 56 0 22.9%Y5 Lapses 355 70,328 495 968 71 0 145 3 70 33Y5 Lapse Rate Annualised 3,986 5.8% 19,886 6.1% 6,616 781 5.7% 194 0.0% 174 5.8% 5.9% 2.0% 0.0% 0.0% 5.0%30.0% Y1 Lapse Rate25.0%20.0% Company A Company B Company C Company D Company E Company F Company G Company H Company I15.0%10.0% 5.0% 0.0% Test & Co Benchmark Strictly Confidential

80.0% Y3 Lapse Rate70.0%60.0% Company A Company B Company C Company D Company E Company F Company G Company H Company I50.0%40.0%30.0%20.0%10.0% 0.0% Test & Co Benchmark7.0% Y5 Lapse Rate6.0%5.0% Company A Company B Company C Company D Company E Company F Company G Company H Company I4.0%3.0%2.0%1.0%0.0% Test & Co Benchmark Strictly Confidential

CFI AND COOL-OFF RATES (AFTER 6 MONTHS)12 month rolling CFI rateGOOD Test & Co Test & Co Company A Company Company C Company D Company E Company F Company G Company H Company I Benchmark B 14.2%CFI Rate 3.1% 20.4% 16.9% 14.0% 19.5% 15.1% 12.5% 10.0% 18.2% 41.9% 19.0%Cool Off Rate 17.3% 2.0% 4.7% 1.1% 4.6% 0.0% 0.0% 0.0% 0.0% 10.0% 1.6%Total 22.4% 21.6% 15.2% 24.1% 15.1% 12.5% 10.0% 18.2% 51.9% 20.6% 60.0% 50.0% 40.0% 30.0% Cool Off Rate 1.8% CFI Rate 2.2% 3.0%Patriot FS Ltd 20.0% 14.0% 0.0% 3.9%Direct Life and Pension Services Lt8d.7% Company A 2.C9o%mpany BHome Finance Advi1c0e.0L%ife Limited14.6%IHL (Glasgow) Limited 5.7%Assured Futures Lim0it.e0d% 8.8%Better Protection Ltd Test &9.6C%o Company C Company D Company E Company F Company G Company H Company I Benchmark CFI Rate Cool Off Rate BenchmarkCFI Rate: based on policies that lapse with no premiums paid.Cool Off Rate: based on policies which lapse with no premium paid, but with active \"cool off\" on behalf of the customer. Strictly Confidential

NTU RATES AFTER 3 MONTHSGOOD Test & Co Test & Co Company A Company B Company C Company Company E Company Company G Company H Company I Benchmark D F 45NTU Count 8.8% 374 65 8 0 3 7 1 0 0 11.3%NTU Rate 9.9% 9.1% 11.8% 0.0% 15.8% 17.5% 10.0% 0.0% 0.0% 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0N%TU RatePatriot FS Ltd 4.0% 6.6%Direct Life and Pensi2o.0n%Servic1e4s.2L%tdHome Finance Advic0e.0L%ife Lim2i5t.e5d%IHL (Glasgow) Limited T5e.s6t%& Co Company A Company B Company C Company D Company E Company F Company G Company H Company I BenchmarkAssured Futures Limited 15.3%Better Protection Ltd 6.3% Strictly Confidential

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For financial adviser use only In accepting receipt of this report you agree that it is the property and confidential information of Liverpool Victoria Financial Services and that you will not disclose it in whole or in part to any third party, except to the extent required by law. When no longer required, you agree to secure disposal Strictly Confidential