RBC Insurance Financial Strength Information

Insurance offered by Liberty Life Insurance Company

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This booklet contains financial information and other facts about RBC and RBC Insurance. It is designed to help you familiarize yourself with our company. To learn more, please visit our web site, www.rbcinsurance.com\us or contact your insurance advisor.

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Integrity of Investment Portfolio Financial Strength Ratings

> High quality, diversified and conservatively Fitch: A+ (Strong), 5th highest of 21 managed A.M. Best: A (Excellent), 3rd highest of 16 > Quality of bond portfolio significantly above One of only 39 U.S. life insurance companies to average for our industry maintain a Best rating of “A” or higher for 50 or

more years > Diversification among a broad range of companies across many industries Product Offerings

> Commercial mortgage loan portfolio well • Traditional annuities • Index annuities diversified by geography and type • Life insurance • Variable annuities

Total Investment Portfolio Quality of Bond Portfolio $3.303 billion Average Quality = AA GAAP Book Value 12/31/08 12/31/08 Cash 2.6% Commercial 55.8% Mortgage Loans 17.1%

Bonds 22.5% 80.3% 16.6%

4.4% .6% AAA AA A BBB

RBC Insurance® is the brand name for Liberty Life Insurance Company, a part of the global insurance operations of Royal Bank of Canada. Liberty Life Insurance Company is solely responsible for its financial obligations. ®Registered trademarks of Royal Bank of Canada. Used under license. Products not available in all states. 888-262-8131 • www.rbcinsurance.com/us

Insurance offered by Liberty Life Insurance Company

N1099 (1-09) RBC is well known in Canada as a trusted brand name, financially secure with a long history of delivering on commitments. These are the same reasons we stay out of U.S. news headlines.

Key Facts Canadian Leader with Global Strength 139 years in business $724 billion total assets Largest bank in Canada, the country with the world’s 16 million clients in 36 countries soundest banking system* 70,000 employees > Capital ratios and senior debt ratings among highest Senior Debt Ratings globally Moody’s: Aaa S&P: AA- > $4.4 billion earnings and 18% return on equity** Fitch: AA > Tier 1 capital ratio of 9%** DBRS: AA

Capital Ratios Consistently strong financial profile Basel II Basel I > Limited exposure to any single name and any single Tier 1 9% 8.3% sector Total capital ratio 11.1% 10.6% > High quality balance sheet with good liquidity Assets to capital multiple (x) 20.1 19.9 > Proactive risk management and strong cost management The Basel Committee on Bank Supervision makes banking policy guidelines and helps authorities implement its suggestions. discipline Basel I and II are recommendations regarding capital risk, market > risk and operational risk. Basel I establishes a guideline for total Excellent access to diversified funding sources at capital of at least 8% of a bank’s risk-weighted assets. favorable spreads Revenue by Business Segment > Well balanced and diversified business mix Fiscal 2008 Wealth Recognized for Size and Reputation Management 18% Canadian > Ranked 41st largest corporation globally in total assets by Banking 43% International Forbes Magazine April 2008 Banking 9% > 5th largest bank in North America and 15th largest globally*** Insurance 12% > Named Canada’s “Best Corporate Citizen” by Corporate Capital Markets 18% Knights magazine for environmental, social and Soundness of Banks* governance performance > Part of the Dow Jones Sustainability Index for 8 straight Rank Country years as one of the world’s financial, social and 1 Canada environmental corporate leaders 2 Sweden 3 Luxembourg > Recognized as “one of the world’s most eminent institutions” by Global Finance Media, Inc. 4 Australia 5 Denmark Additional RBC financial information can be found at 39 Germany www.rbc.com/investorrelations/index.html 40 United States 44 United Kingdom * World Economic Forum Global Competitiveness Report 2008-2009 ** US$; Fiscal 2008 79 Italy *** Bloomberg, OSFI; assets as of 6/30/08. 93 Japan RBC Insurance is solely responsible for its financial obligations. RBC Insurance at a Glance

Solutions to Help You Rule Your World

RBC Insurance® is the brand name for Liberty Life Insurance Company, a part of the global insurance operations of Royal Bank of Canada.

As the insurance specialist of one of the largest and most trusted financial institutions in North America, RBC Insurance offers a diversified range of insurance protection and wealth accumulation products that help individuals and businesses manage risk and build for the future. RBC Insurance is a part of RBC, a leading financial services company comprised of Royal Bank of Canada (TSX, NYSE: RY) and its subsidiaries. Although Liberty Life Insurance Company is a part of RBC, Liberty Life Insurance Company is solely responsible for its financial obligations. Financial Strength and Stability You Can Trust RBC > US$632.2 billion in assets as of October 31, 2007.* > Ranked 41st largest corporation globally in total assets by Forbes Magazine, April, 2008. > In business more than 130 years and providing insurance solutions for over a century. > Among North America’s most trusted companies; named Canada’s “Best Corporate Citizen” by Corporate Knights magazine for its environmental, social and governance performance. > Named to the Dow Jones Sustainability Index for the 8th straight year, RBC is recognized as one of the world’s financial, social and environmental corporate leaders. > Recognized as “one of the world’s most eminent institutions” by Global Finance Media Inc., an international publisher of financial data. *Value converted from Canadian dollars at the current exchange rate as of October 31, 2007.

RBC Insurance in the United States** > Assets: $3.72 billion > Liabilities: $3.46 billion > Capital & Surplus: $261.5 million **Consolidated results as of December 31, 2007. Continued on back

Insurance offered by Liberty Life Insurance Company

V1157 (R5-08) An Industry Leader

Operating under the master brand name of RBC, Royal Bank of Canada (TSX, NYSE: RY) is Canada’s largest bank as measured by market capitalization.

Top North American Banks by Market Capitalization

Ranking Based on Market Capitalization (US$ billions) 1 Bank of America Corp $168 2 JP Morgan Chase & Co $146 3 Citigroup Inc. $112 4 Wells Fargo & Co $96 5 Royal Bank of Canada $60 6 U.S. Bancorp $56 7 Wachovia Corp. $54 8 Bank of New York Mellon $48 9 Bank of Nova Scotia $45 10 Toronto-Dominion Bank $44

Source: Bloomberg, March 31, 2008

Top Global Banks by Market Capitalization Global 2000 Each year, Forbes Magazine Ranking Based on Head Office Market Capitalization publishes a list of the world’s Location (US$ billions) largest companies, measured by 1 HSBC Holdings PLC. London $195 a composite ranking of sales, 2 China Construction Bank-H Beijing $176 profits, assets and market value. 3 Bank of America Corp. Charlotte, N.C. $168 In the 2008 list, Royal Bank of 4 Bank of China LTD-H Beijing $159 Canada ranked: 5 JP Morgan Chase & Co New York $146 6 Banco Santander SA Madrid $125 • 55 overall 7 ABN AMRO Holding NV Amsterdam $112 • 75 for profits 8 Citigroup Inc. New York $112 • 41 for assets 9 Wells Fargo & Co San Francisco $96 • 102 for market value 10 Mitsubishi UFJ Financial Group Tokyo $94 • 1 among Canadian 11 BNP Paribas Paris $91 companies

12 Intesa Sanpaolo Milan $90 Source: Forbes Magazine, April, 2008. 13 UniCredit s.P.a. Milan $89 14 Banco Bilbao Vizcaya Argenta Bilbao $83 15 Sberbank-CLS Moscow $67 U.S. Products 16 Royal Bank of Scotland Edinburgh $67 17 Royal Bank of Canada Toronto $60 > Traditional Annuities 18 Deutsche Bank AG-Re Frankfurt $60 > Index Annuities 19 UBS AG-Reg Zurich $60 > Life Insurance 20 Credit Suisse Group-Reg Zurich $59 > Variable Annuities and Life Insurance Source: Bloomberg, March 31, 2008

To learn more about RBC Insurance, visit www.rbcinsurance.com/us

®Registered trademarks of Royal Bank of Canada. Used under license. V1157 (R5-08) Canada rated world’s soundest bank system: survey World Economic Forum Global Competitiveness Report 2008-2009.

World Economic Forum, Executive 09 Oct 2008 | 04:40 AM ET Opinion Survey 2007, 2008 Reuters By Rob Taylor -- Soundness of Banks Rank Country CANBERRA (Reuters) - Canada has the world’s soundest banking system, closely 1 Canada followed by Sweden, Luxembourg and Australia, a survey by the World Economic Forum 2 Sweden has found as financial crisis and bank failures shake world markets. But Britain, which once ranked in the top five, has slipped to 44th place behind El Salvador 3 Luxembourg and Peru, after a 50 billion pound ($86.5 billion) pledge this week by the government to 4 Australia bolster bank balance sheets. 5 Denmark The United States, where some of Wall Street’s biggest financial names have collapsed 6 Netherlands in recent weeks, rated only 40, just behind Germany at 39, and smaller states such as Barbados, Estonia and even Namibia, in southern Africa. 7 Belgium The United States was on Thursday considering buying a slice of debt-laden banks to 8 New Zealand inject trust back into lending between financial institutions now too wary of one another 9 Ireland to lend. 10 Malta The World Economic Forum’s Global Competitiveness Report based its findings on opinions of executives, and handed banks a score between 1.0 (insolvent and possibly 11 Hong Kong SAR requiring a government bailout) and 7.0 (healthy, with sound balance sheets). 12 Finland Canadian banks received 6.8, just ahead of Sweden (6.7), Luxembourg (6.7), Australia 13 Singapore (6.7) and Denmark (6.7). 14 Norway UK banks collectively scored 6.0, narrowly behind the United States, Germany and Botswana, all with 6.1. France, in 19th place, scored 6.5 for soundness, while Switzerland’s 15 South Africa banking system scored the same in 16th place, as did Singapore (13th). 16 Switzerland The ranking index was released as central banks in Europe, the United States, China, 17 Namibia Canada, Sweden and Switzerland slashed interest rates in a bid to end to panic selling on markets and restore trust in the shaken banking system. 18 Chile The Netherlands (6.7), Belgium (6.6), New Zealand (6.6), Malta (6.6) rounded out the 19 France WEF’s banking top 10 with Ireland, whose government unilaterally pledged last week to 20 Spain guarantee personal and corporate deposits at its six major banks. 39 Germany Also scoring well were Chile (6.5, 18th) and Spain, South Africa, Norway, Hong Kong and Finland all ending up in the top 20. 40 United States At the bottom of the list was Algeria in 134th place, with its banks scoring 3.9 to be just 44 United Kingdom below Libya (4.0), Lesotho (4.1), the Kyrgyz Republic (4.1) and both Argentina and East 79 Italy Timor (4.2). 93 Japan SOURCE: World Economic Forum Global Competitiveness Report 2008-2009. (Editing by Kim Coghill) Copyright 2008 Reuters.

RBC Capital Markets is the brand name used by the capital markets businesses of the Royal Bank of Canada and its subsidiaries, including RBC Capital Markets Corporation, RBC Dominion Securities Inc. and Royal Bank of Canada Europe Limited. RBC Capital Markets Corporation is a member of NYSE, FINRA and SIPC. RBC Dominion Securities Inc. is a member of IIROC and CIPF. Royal Bank of Canada Europe Limited is authorized and regulated by the Financial Services Authority. This communication is for information purposes only. ® Registered trademarks of Royal Bank of Canada. Used under license. Discover RBC … We’re here to help our clients and communities create a better future ®

In the United States

RBC Insurance Offers annuities and life insurance through Liberty Life Insurance Company • Licensed in 49 states • Partnering with 10,000+ sales representatives nationwide • Assets: $3.72 billion • Liabilities: $3.46 billion • Capital & Surplus: $261.5 million • Recognized by A.M. Best Company as one of only 39 companies to maintain an “A” or higher financial strength rating for 50 years or more

RBC Bank Offers 430 full-service banking centers in North Carolina, South Carolina, Virginia, Georgia, Florida and Alabama • Based in North Carolina • Total assets: $33 billion+ • 6,000 employees across the Southeast and Texas

RBC Wealth Management One of the nation’s largest full-service securities firms • Assets under management: $138 billion • 1,650 financial consultants and 5,000 employees • Serves individual investors and businesses nationwide

RBC Capital Markets A premier investment bank focused on products and services to institutions, corporations, governments and high net worth clients in 160 countries • Nearly 3,300 employees in 75 offices globally, including 43 offices in the U.S. • According to Bloomberg, consistently ranked among the top 15 global investment banks

RBC in Communities Worldwide

RBC Blue Water Project $50 million, 10-year program to support water conservation and clean water initiatives worldwide.

RBC Canadian Open Golf Tournament Title sponsor through 2012 • Established in 1904, this tournament is one of the oldest national open golf championships worldwide third only to the British Open and the U.S. Open.

RBC Center – Raleigh, North Carolina Home of the NHL’s Carolina Hurricanes, 2006 Stanley Cup Champions and the North Carolina State University Men’s Basketball Team RBC Insurance consolidated results as of December 31, 2007. A.M. Best has been recognized as a leading firm in analyzing the financial strength of insurance companies RBC is also a proud sponsor of numerous global initiatives in the since 1899. Ratings are based on its current opinion of a company’s financial ability to meet its obligations to policyholders. “A” is the third highest of sixteen ratings and is support of human service, education and youth programs, arts assigned to companies Best believes demonstrate excellent overall performance. RBC and culture and the environment. Wealth Management information as of January 2008 and RBC Bank and RBC Capital Markets information as of August 2008. To learn more about RBC and RBC Insurance, visit: RBC Insurance® is the brand name for Liberty Life Insurance Company, a part of the global insurance operations of Royal Bank of Canada. ®Registered trademarks of Royal Bank of www.rbc.com Canada. Used under license. Products not available in all states. Insurance offered by www.rbcinsurance.com/us Liberty Life Insurance Company. N1092 (8-08)