Western Financial Group2006 Conference Call

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

• Financial Update

• Strategic Events

Operational Progressin 2006

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WFG Agency Network

• Same store customer count 4.5%+

• Industry pricing flat - Alberta Auto Reduction 3% = < 0.05% of WFG

• Products per customer account growing to 2.29 in 2006 from 1.77 in 2005

• Acquisitions – Growing target environment

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Western Life Assurance

• Sales and production

• Certificate count and growth

• Bolt-on product for network delayed moving out of test mode

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Bank West

• Sales and production

• Loan portfolio growth record in 2006$57.9 million

Financial Update

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Total Revenue

20

64

33

42

2822

83

0

10

20

30

40

50

60

70

80

90

2000 2001 2002 2003 2004 2005 2006

($ M

illi

on

s)

CAGR 27.0%

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Earnings Per Share

0.22

0.03

0.17

0.11

0.18

0.080.08

0

0.05

0.1

0.15

0.2

0.25

2000 2001 2002 2003 2004 2005 2006

CAGR 39.3%

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Overall

2006 2005

Revenue ($) 82,643 66,641

Income from Equity Investments ($) 2,323 1,357

Net Income ($) 7,988 4,849

Earnings per share ($) 0.22 0.17

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The Network

2006 2005

Commission & other customer revenue ($) 46,674 41,515

Operating expenses ($) 32,366 27,139

Operating income ($) 14,308 14,376

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Bank West

2006 2005

Interest & investment income ($) 8,214 4,284Net interest & investment income ($) 2,236 959

Operating expenses ($) 2,018 1,565

Operating income/loss ($) 218 (894)

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Bank West – Cash Basis

2006 2005 2004

Operating income/loss ($) 218 (953) (1,124)

Amortization of startup ($) - 289 292

General provisions ($) 439 347 189

657 (317) (643)

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Western Life Assurance

2006 2005(1)

Premium & Investment Income ($) 25,686 18,741

Policyholder benefits ($) 13,595 9,564

Operating expenses ($) 9,510 6,805

Operating income ($) 2,581 2,372

(1) WLA acquired February 28, 2005. Reflects 10 months of operation.

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Corporate & All Other

2006 2005

Other revenues ($) 2,069 2,101

Operating expenses ($) 7,526 8,250

Operating loss ($) (5,457) (6,149)

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Other Income

2006 2005

Income from equity investments ($) 2,323 1,357

Gain on sale of portion of reporting unit ($) 566 633

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Western Financial GroupHistorical Consolidated ROE

1.9

5.6

7.2

8.37.5 8.1 8.4

0

1

2

3

4

5

6

7

8

9

2000 2001 2002 2003 2004 2005 2006

Per

cen

t

CAGR 28.1%

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Western Financial GroupDebt to Equity Ratio

131

19

115

173

81

59

020406080

100120140160180200

2001 2002 2003 2004 2005 2006

Per

cen

t

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Western Financial GroupNet Income: Equity + Debt

5.1%

1.2%

4.4%

2.7%

2.1%

2.9%

4.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

2000 2001 2002 2003 2004 2005 2006

Per

cen

t

Strategic Events in 2006

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Strategic Events in 2006

• Completed 5 acquisitions

• Financings

• Negotiated acquisition of large BC firm

• Investment in HED

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Priorities 2007• Move toward 2010 – 20 to 25 acquisitions• Strengthen Internal Human Resource and

Communication• Launch Company Wide Reporting Control Systems• Take WFG Brand to Next Level • Identify & Address Critical 5 year Horizon Issues

Preparing for branch expansion program• Planning to increase cross sales activity in 2007

Questions

…because we live here.