RAYMOND JAMES FINANCIAL, INC.

RAYMOND JAMES FINANCIAL, INC.

General Agency

Raymond James Growth

*Includes RJ&A, RJFS IMD, SD & FID Financial Advisors, RJ Ltd.(Canada) and Institutional licensed associates.

As of September 27, 2002

22%

78%

RJA

RJFS

FY 2002 Annuity Sales

$3.05 Billion U.S.

$.65 Billion U.S.

$2.4 Billion U.S.

Fixed Annuities = 13.8%Variable Annuities = 77.5%Group Annuities = 8.7%

• Raymond James & Associates (RJA)– 87 Offices– 970 Financial Advisors

• Raymond James Financial Services (RJFS)– 2,090 Offices– 3,827 Financial Advisors

Raymond James Overview

• Marketplace is Overcrowded• Process

– Initial Company Review– Product Review– In-depth Financial, Operations &

Marketing Review• Looking For Incremental Growth• Not All Products Offered By A

Company Are Automatically Approved

Product Selection

• Annuity Company Focus Program• Focus Company Status Determined by FY

Sales• Cannot Buy Into Program• Financial Advisors Ultimately Decide• Benefits of Being a Focus Company

– Support– Visibility– Access – First Choice

• Results– Part of Select Group of 13 Companies– 70.6% of Individual Annuity Sales for FY

02

Success Factors, Challenges & Trends

•What Makes it Work– Wholesaling– Product– Technology– RELATIONSHIP

•Producer Concerns (Challenges)– Financial Safety of Companies– Complexity of Products– Regulatory Scrutiny

Success Factors, Challenges & Trends

• Focus on Defensive Features– Living Benefits– Principal Protection Strategies

• Curtailment of Commission Enhancements– Fewer and Shorter Periods

• Income/Distribution Market Increasing– Product Innovation– Simpler Language

Industry Trends

Wrap-Up

•Average Producers– Frequent “Touches”– Sales Ideas– Hands-On Help

•Top Producers– Recognition– Practice Management Ideas– Responsiveness

Positioning

Wrap-Up

•Attention to Penetration •Proactive Partnering•Focus on Relationship

How Has JNL Done It?

Wrap-Up

•Got Off Track– Feature Frenzy– Focus on Market Share

•Adequate Pricing•Product Sale vs. Part of

Planning Process

Concerns About Industry

Wrap-Up

•Environment is Forcing “Back to Basics”

•Mainstreaming of Product by Selling Firms

•Return to Focus on Financials

Silver Lining