Foreign Exchange's Effect on Life Insurance Cos' Earnings

Scotia Capital, 11 June 2007Event� Scotia Economics recently revised its f/x forecast.What It Means� We've decreased our EPS assumptions for GWO by $0.05 in 2007 and $0.01 in 2008, for MFC by $0.06 in 2007 and $0.07 in 2008 and SLF by $0.08 in 2007 and $0.08 in 2008. MFC is the most sensitive to f/x changes.� Our new assumptions assume the C$ averages US$0.92 (was US$0.89) in '07 and US$0.93 (was