Western Financial GroupQ1 2009 Financial Results

Conference Call

May 19, 2009

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.

TSX: WES3

Today’s Remarks• Operational Progress in Q1

• Strategic Events in Q1

• Financial Update

• Priorities for Q2

Operational Progressin Q1 2009

TSX: WES5

WFG Agency Network

• Same store customer count 1.2% YTDA

• Same store sales 5.2%

• Customer inertia continued from Q4 2008

• March and April show more normal patterns and stronger customer count growth

• Acquisition of Bakes Jarvie, Nanaimo, BC

TSX: WES6

Western Life Assurance

• Creditor Life still growing

• Employee benefits growth of $500,000 per month from HED

• Reduced exposure to equities through sales

• Bolt-on product for network is at 6,500+ policies. Target of 7,500 by Y/E 2009

TSX: WES7

Bank West• Negative portfolio growth in Q1. Summer

funding season for RVs surprisingly strong• Agrifinancial adds additional seasonality to

Bank’s business• 10 bps specific provisions in Q1. Credit

quality solid – NPLs at 1.01%• Commercial / farm / consumer pipeline

growing

Strategic Events in Q1

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Q1 Strategic Events

• Agency acquisition not likely until 2010

• Soft market in commercial P & C persists

• Loan portfolio acquisition opportunities abound. We are staying focused on our existing business

• Operations focus in 2009

Financial Update

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Total Revenue

126125114

20

64

334228

22

83

020406080

100120140

2000

2001

2002

2003

2004

2005

2006

2007

2008

Q1

2009

LTM

($ M

illi

on

s)

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Earnings Per Share

0.24

0

0.05

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

2008

Q1 2009

LTM

TSX: WES13

Overall

2009 2008

Revenue ($) 31,381 30,102

Income from Equity Investments ($) (253) 613

Net Income ($) 914 2,386

Earnings per share ($)

Basic

Diluted

0.00

0.00

0. 05

0. 04

TSX: WES14

The Network

2009 2008

Commission & other customer revenue ($) 17,522 16,489

Operating expenses ($) 13,932 12,639

Operating income ($) 3,590 3,850

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Bank West

2009 2008

Interest & investment income ($) 5,537 4,942Net interest & investment income ($) 1,883 1,546

Operating & provision expenses ($) 2,385 849

Operating income ($) (502) 697

TSX: WES16

Western Life Assurance

2009 2008

Premium income ($) 8,469 7,172

Investment income ($) (519) 832

Policyholder benefits ($) 3,633 3,705

Operating expenses ($) 3,377 3,123

Operating income ($) 940 1,176

TSX: WES17

Corporate & All Other

2009 2008

Other revenues ($) 372 667

Operating expenses ($) 2,154 2,397

Operating loss ($) (1,782) (1,730)

TSX: WES18

Western Financial GroupHistorical Consolidated ROE

1.9 1.8

0.1

9.4

5.6

7.28.37.5 8.1 8.4

0123456789

10

2000

2001

2002

2003

2004

2005

2006

2007

2008

Q1

2009

LTM

Per

cen

t

TSX: WES19

Western Financial GroupDebt to Equity Ratio

19 2517

131

19

115

173

8159

020406080

100120140160180200

2001

2002

2003

2004

2005

2006

2007

2008

Q1

2009

LTM

Per

cen

t

Priorities for Q2

TSX: WES21

Q2 Priorities

• Manage NPLs at Bank West

• Agrifinancial integration

Questions

…because we live here.