RBC Insurance signs agreement with Aon Reed Stenhouse to expand business insurance offering

TORONTO, June 2008 — RBC Insurance announced today that it has signed an agreement with Aon Reed Stenhouse (Aon), making Aon its exclusive broker for competitive and comprehensive commercial property and casualty and trade credit insurance solutions to Canadian business owners.

“RBC Insurance is committed to helping Canadian business owners understand how insurance can help mitigate their business risks,” said Neil Skelding, president & CEO, RBC Insurance. “Our agreement with Aon combined with our existing products and services will enable us to provide Canadian businesses - large and small - with innovative advice and effective solutions tailored to meet their insurance needs.”

As the world’s leading risk management service insurance brokerage firm, Aon will provide business owners with a platform built on service, convenience and a superior customer experience, as well as access to its specialized industry expertise.

“RBC Insurance business clients will benefit from being presented with multiple options from a group of insurers, rather than just one,” said Chris Fawcus, president and CEO, Aon Reed Stenhouse. “These principles of counselled choice and advocacy represent the same value we have been providing Canadian businesses for the past 125 years.”

This press release contains certain statements related to future results, or states our intentions, beliefs and expectations or predictions for the future which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results depending on a variety of factors. Potential factors that could impact results include: general economic conditions in different countries in which we do business around the world, changes in global equity and fixed income markets that could affect the return on invested assets, fluctuations in exchange and interest rates that could influence revenue and expense, rating agency actions that could affect our ability to borrow funds, funding of our various pension plans, changes in the competitive environment, our ability to implement restructuring initiatives and other initiatives intended to yield cost savings, our ability to successfully execute strategic options for our Combined Insurance subsidiary, the impact of current, pending and future regulatory and legislative actions that affect our ability to market and sell, and be reimbursed at current levels for, our Sterling subsidiary’s Medicare Advantage health plans, changes in commercial property and casualty markets and commercial premium rates that could impact revenues, changes in revenues and earnings due to the elimination of contingent commissions, other uncertainties surrounding a new compensation model, the impact of investigations brought by state attorneys general, state insurance regulators, federal prosecutors, and federal regulators, the impact of class actions and individual lawsuits including client class actions, securities class actions, derivative actions, ERISA class actions, the impact of the analysis of practices relating to stock options, the cost of resolution of other contingent liabilities and loss contingencies, and the difference in ultimate paid claims in our underwriting companies from actuarial estimates. Further information concerning the Company and its business, including factors that potentially could materially affect the Company’s financial results, is contained in the Company’s filings with the Securities and Exchange Commission.