Investor Presentaiton

17 Pricing movement The cost of an average car insurance premium rose sharply over the last quarter of 2006 to its highest ever level The average quoted premium rose by 4.35% to £805.70 (up 1.24% over the previous quarter) • Premiums have risen 5.7% year-on-year The trend over the last quarter is supported by the RBS Group with Tesco, Direct Line and Churchill all raising their prices since August 2006 and sharp rises in the last quarter AA British Insurance Premium Index Market average trends since 1994 230.00 220.00 210.00 200.00 190.00 180.00 170.00 160.00 150.00 140.00 130.00 120.00 110.00 100.00 H 90.00 80.00 70.00 60.00 Jul-94 Oct-94- Jan-95 - Apr-95 Jul-95 - Oct-95- Jan-96- Apr-96 Jul-96- Oct-96- Jan-97 Apr-97 Jul-97- Oct-97- Jan-98 - 1 Buildings Contents Comprehensive Non-Comprehensive Apr-06 -90-Inr Oct-06 IAG Insurance Australia Group

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