Western Financial Group 2007 Year End Financial Results Conference Call March 28, 2008.

Western Financial Group2007 Year End Financial Results

Conference Call

March 28, 2008

Forward-Looking StatementsThis presentation contains certain forward-looking statements. Forward-looking statements include, without limitation, statements regarding the future financial position, business strategy, budgets, litigation, projected costs, capital expenditures, financial results, taxes and plans and objectives of or involving Western Financial Group Inc. (the “Company”) or its subsidiaries. Many of these statements can be identified by looking for words such as ‘‘believe’’, ‘‘expects’’, ‘‘expected’’, ‘‘will’’, ‘‘intends’’, ‘‘projects’’, ‘‘anticipates’’, ‘‘estimates’’, ‘‘continues’’ or similar words. The Company believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties only some of which are described herein. Many factors could cause the Company’s actual results, performance or achievements to, or future events or developments to, differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the risk factors, which are discussed in greater detail in the ‘‘Risk Factors’’ section of the prospectus. Any forward-looking statements are made as of the date hereof and the Company does not assume any obligation to publicly update or revise such statements to reflect new information, subsequent events or otherwise.Non-GAAP MeasuresThroughout this presentation, the Company may use the term ‘‘operating income’’ to refer to earnings, including investment income, before interest expense, taxes, depreciation and amortization of intangible and capital assets, excluding gain (loss) from the sale of assets and income (loss) from equity investments. The Company uses ‘‘operating income’’ to assist it in measuring corporate performance before the costs of capital and amortization of capital and intangible assets. Operating income is not a measure recognized by GAAP and does not have a standardized meaning prescribed by GAAP. Therefore, this measure may not be comparable to similar measures presented by other issuers and investors are cautioned that it should not be used as an alternative to ‘‘net income’’ or other measures of financial performance calculated in accordance with GAAP.

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Today’s Remarks• Operational Progress in 2007

• Top Three Achievements in 2007

• 2007 Financial Review

• Priorities for 2008

Operational Progress in 2007

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WFG Agency Network

• Same store customer count 4.3%.

• Same store sales 7.7%.

• Soft pricing market continues.

• “Insurance to Value” initiatives helping build revenue.

• Acquisitions of Oncescu and Early in Q4 – 23 in 2007.

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Western Life Assurance

• Sales and production in Creditor Life.

• Certificate count growth 15% in 2007.

• Bolt-on product for network is at 4,800+ policies. Target was 20,000 by Q2/08, will need to be extended through 2008 Y/E.

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Bank West

• Loans:– $149.4 M in 2006– $286.8 M in 2007 including $90 M Ubiquity

• Decision on new banking platform – Wealthview.

• Capital capacity for $65 million of growth.

Top 3 Achievements in 2007

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Top 3 Achievements in 2007

• Bank West in black.

• Dividend initiation.

• Network’s internal and external growth.

2007 Financial Review

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Total Revenue

114

20

64

3342

2822

83

0

20

40

60

80

100

120

2000 2001 2002 2003 2004 2005 2006 2007

($ M

illi

on

s)

CAGR 28.2%

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Earnings Per Share

0.24

0.08 0.08

0.18

0.11

0.17

0.03

0.22

0

0.05

0.1

0.15

0.2

0.25

0.3

2000

2001

2002

2003

2004

2005

2006

2007

CAGR 34.6%

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Overall

2007 2006

Revenue ($) 114,126 82,643

Income from Equity Investments ($) 2,172 2,323

Net Income ($) 12,213 7,988

Earnings per share ($)

Basic

Diluted

0.24

0.22

0.22

0.20

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The Network

2007 2006

Commission & other customer revenue ($) 66,408 46,674

Operating expenses ($) 46,613 32,366

Operating income ($) 19,795 14,308

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Bank West

2007 2006

Interest & investment income ($) 13,803 8,214Net interest & investment income ($) 4,596 2,991

Operating & provision expenses ($) 3,506 2,773

Operating income/loss ($) 1,090 218

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Western Life Assurance

2007 2006

Premium income ($) 27,282 22,785

Investment income ($) 2,814 2,901

Policyholder benefits ($) 13,934 13,595

Operating expenses ($) 12,102 9,510

Operating income ($) 4,060 2,581

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Corporate & All Other

2007 2006

Other revenues ($) 3,817 2,069

Operating expenses ($) 9,130 7,526

Operating loss ($) (5,313) (5,457)

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Western Financial GroupHistorical Consolidated ROE

1.9

9.4

5.6

7.28.3

7.5 8.18.4

0123456789

10

2000 2001 2002 2003 2004 2005 2006 2007

Per

cen

t

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Western Financial GroupDebt to Equity Ratio

17

131

19

115

173

81

59

020406080

100120140160180200

2001 2002 2003 2004 2005 2006 2007

Per

cen

t

Priorities for 2008

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2008 Priorities

• Agency acquisitions – pipeline.

• Ubiquity Bank integration/Bank West new operating system.

• Direct marketing initiative – Network/Life WFGO “bolt-on” acceleration.

• Increase leverage to 35% debt to equity.

Questions

…because we live here.