Foreword

The aim of this report is to provide an understanding of what our company and our business is about and the policies and practices Eagle Star has in place for the benefit of its stakeholders. We recognise that apart from our shareholders, our customers, business partners, suppliers, employees, the community and environment are our key stakeholders. It is also a firm statement of our commitment to Corporate Responsibility.

We are doing this because we want to build trust with our stakeholders and meet or exceed their expectations. We want Corporate Responsibility to be an ongoing shared responsibility at Eagle Star and this report is the start of this process.

An important core value within Eagle Star is to 'Act with Integrity'.

Integrity is not a trade off against any other value or against any of our financial or other goals. Rather, it and the principles that naturally extend from it are necessary ingredients for reaching these goals.

Eagle Star Life became a founding member of Business in the Community Ireland in 2000, to show a tangible commitment to Corporate Responsibility and a determination to focus strategically on CR within the company through a process of systematic measuring. One of the first steps on our path to incorporating Corporate Responsibility throughout our business is the production of this report. We hope this publication will give you a broad understanding of our company, the policies and practices we have in place and our commitment to continuous improvement in the area of Corporate Responsibility.

Our Impact as an Organisation

Eagle Star is proud to be a part of an industry, which provides employment for over 15,000 people. Over 50% of Insurer's investments of €47.4 billion, i.e. in the region of €25 billion of investment funds, were directed into the Irish economy at the end of 2001. The Irish insurance industry has in fact paid out €4.1 billion in claims payments at the end of that period.

As part of the Life Insurance industry, Eagle Star offers invaluable benefits to the general public in the form of the peace of mind, security and protection which life and pension products offer.

Eagle Star Life encourages saving and in particular a high level of saving for retirement. It builds trust and reputation through the design of its products, the recognition of its responsibilities in the area of fairness and transparency and the provision of an excellent service to the consumer.

We recognise our many responsibilities as a company in which people invest, as a solution provider to our customers, as an employer of choice and as a good corporate citizen of the wider community in which we operate. We are striving to improve how we understand and manage these responsibilities, which is why we are advancing our efforts in corporate citizenship in line with our values of open, ethical and honest trading.