Exhibit 99.2

Quarterly Financial Supplement

For the Period Ended June 30, 2010

(NYSE: NFP)

Investor Relations Contact:

Abbe F. Goldstein, CFA

(212) 301-4011

ir@nfp.com

 

TABLE OF CONTENTS	PAGE
Condensed Consolidated Statements of Operations and Other Financial Metrics for Quarterly Periods	3
Condensed Statements of Operations and Other Financial Metrics for Quarterly Periods - Corporate Client Group	4
Condensed Statements of Operations and Other Financial Metrics for Quarterly Periods - Individual Client Group	5
Condensed Statements of Operations and Other Financial Metrics for Quarterly Periods - Advisor Services Group	6
Condensed Statements of Operations, Adjusted EBITDA and Organic Revenue Growth for Quarterly Periods	7
Condensed Consolidated Statements of Operations and Other Financial Metrics for Year-to-Date Periods	8
Condensed Statements of Operations and Other Financial Metrics for Year-to-Date Periods - Corporate Client Group	9
Condensed Statements of Operations and Other Financial Metrics for Year-to-Date Periods - Individual Client Group	10
Condensed Statements of Operations and Other Financial Metrics for Year-to-Date Periods - Advisor Services Group	11
Condensed Statements of Operations, Adjusted EBITDA and Organic Revenue Growth for Year-to-Date Periods	12
Historical Condensed Consolidated Statements of Operations and Other Financial Metrics for Year-to-Date Periods	13
Corporate Overview	14
Acquisition and Disposition Metrics for Quarterly and Year-to-Date Periods	15
Intangibles and Goodwill Data	16
Consolidated Statements of Financial Condition (Balance Sheet)	17
Consolidated Statement of Cash Flows for Quarterly and Year-to-Date Periods	18
Defined Terms	20

This Quarterly Financial Supplement (“QFS”) includes historical and forward-looking non-GAAP measures called Adjusted EBITDA, cash earnings, cash earnings per diluted share, adjusted income before management fees and percentages or calculations using these measures.  The Company believes these non-GAAP measures provide additional meaningful methods of evaluating certain aspects of the Company’s operating performance from period to period on a basis that may not be otherwise apparent under GAAP. Adjusted EBITDA is defined as net income excluding income tax expense, interest income, interest expense, other, net, amortization of intangibles, depreciation, impairment of goodwill and intangible assets, (gain) loss on sale of businesses, and any change in estimated contingent consideration amounts recorded in accordance with purchase accounting that have been subsequently adjusted and recorded in the consolidated statement of operations. Adjusted EBITDA should not be viewed as a substitute for net income. Cash earnings is defined as net income excluding amortization of intangibles, depreciation, the after-tax impact of the impairment of goodwill and intangible assets and the after-tax impact of non-cash interest expense. Cash earnings per diluted share is calculated by dividing cash earnings by the number of weighted average diluted shares outstanding for the period indicated.  Cash earnings and cash earnings per diluted share should not be viewed as substitutes for net income and net income per diluted share, respectively.  Adjusted income before management fees is defined as income before management fees excluding corporate income before management fees.  Adjusted income before management fees should not be viewed as a substitute for income from operations. A full reconciliation of these non-GAAP measures to their GAAP counterparts is provided in this QFS, which is available on the Investor Relations section of the Company’s Web site at www.nfp.com.

This QFS contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance or achievements, and may contain the words "anticipate," "expect," "intend," "plan," "believe," "estimate," "may," "project," "will," "continue" and similar expressions of a future or forward-looking nature. Forward-looking statements may include discussions concerning revenue, expenses, earnings, cash flow, impairments, losses, dividends, capital structure, credit facilities, market and industry conditions, premium and commission rates, interest rates, contingencies, the direction or outcome of regulatory investigations and litigation, income taxes and NFP's operations or strategy. These forward-looking statements are based on management's current views with respect to future results, and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from those contemplated by a forward-looking statement include: (1) NFP’s ability, through its operating structure, to respond quickly to regulatory, operational or financial situations impacting its businesses; (2) the ability of the Company’s businesses to perform successfully following acquisition, including through cross-selling initiatives, and the Company’s ability to manage its business effectively and profitably through its reportable segments and the principals of its businesses; (3) any losses that NFP may take with respect to dispositions, restructures or otherwise; (4) an economic environment that results in fewer sales of financial products or services; (5) the occurrence of events or circumstances that could be indicators of impairment to goodwill and intangible assets which require the Company to test for impairment, and the impact of any impairments that the Company may take; (6) the impact of the adoption, modification or change in interpretation of certain accounting treatments or policies and changes in underlying assumptions relating to such treatments or policies, which may lead to adverse financial statement results; (7) NFP’s success in acquiring and retaining high-quality independent financial services businesses; (8) the financial impact of NFP’s incentive plans; (9) changes that adversely affect NFP’s ability to manage its indebtedness or capital structure, including changes in interest rates, credit market conditions and general economic factors; (10) fluctuations in the price of NFP's common stock, whether due to securities and capital markets behavior, the dilutive impact of capital-raising efforts, or otherwise; (11) the continued availability of borrowings and letters of credit under NFP’s credit facility; (12) adverse results, market uncertainty in the financial services industry, or other consequences from litigation, arbitration, regulatory investigations or compliance initiatives, including those related to business practices, compensation agreements with insurance companies, policy rescissions or chargebacks, regulatory investigations or activities within the life settlements industry; (13) adverse developments in the markets in which the Company operates, resulting in fewer sales of financial products and services, including those related to compensation agreements with insurance companies and activities within the life settlements industry; (14) the impact of legislation or regulations in jurisdictions in which NFP’s subsidiaries operate, including the possible adoption of comprehensive and exclusive federal regulation over all interstate insurers and the uncertain impact of legislation regulating the financial services industry, such as the recent Dodd-Frank Wall Street Reform and Consumer Protection Act; (15) uncertainty regarding the impact of newly-adopted healthcare legislation or resulting changes in business practices of NFP’s subsidiaries that operate in the benefits market; (16) changes in laws, including the elimination or modification of the federal estate tax, changes in the tax treatment of life insurance products, or changes in regulations affecting the value or use of benefits programs, which may adversely affect the demand for or profitability of the Company’s services; (17) developments in the availability, pricing, design or underwriting of insurance products, revisions in mortality tables by life expectancy underwriters or changes in the Company’s relationships with insurance companies; (18) changes in premiums and commission rates or the rates of other fees paid to the Company’s businesses, including life settlements and registered investment advisory fees; (19) the reduction of the Company’s revenue and earnings due to the elimination or modification of compensation arrangements, including contingent compensation arrangements and the adoption of internal initiatives to enhance compensation transparency, including the transparency of fees paid for life settlements transactions; (20) the occurrence of adverse economic conditions or an adverse regulatory climate in New York, Florida or California; (21) the loss of services of key members of senior management; and (22) the Company’s ability to effect smooth succession planning.

Additional factors are set forth in NFP’s filings with the Securities and Exchange Commission (the “SEC”), including its Annual Report on Form 10-K for the year ended December 31, 2009, filed with the SEC on February 12, 2010 and its Quarterly Report on Form 10-Q for the period ended March 31, 2010, filed with the SEC on May 10, 2010.

Forward-looking statements speak only as of the date on which they are made. NFP expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

2

NATIONAL FINANCIAL PARTNERS CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER FINANCIAL METRICS FOR QUARTERLY PERIODS (Unaudited - in thousands)  

	For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
Revenue:
Commissions and fees	$	234,890		$	225,273		$	277,181		$	229,925		$	224,198
Operating expenses:
Commissions and fees		73,421			68,306			76,013			63,059			62,474
Compensation expense		63,722			65,268			68,879			64,649			66,164
Non-compensation expense		38,914			40,449			46,528			36,507			37,307
Management fees		32,534			23,650			58,865			34,855			29,954
Amortization of intangibles		8,206			8,338			8,806			8,975			9,176
Depreciation		3,005			3,006			8,857			3,361			3,485
Impairment of goodwill and intangible assets		—			2,901			6,231			2,002			2,895
Gain on sale of businesses		(7,690	)		(2,231	)		(244	)		(1,190	)		(1,279	)
Total operating expenses		212,112			209,687			273,935			212,218			210,176
Income from operations		22,778			15,586			3,246			17,707			14,022
Non-operating income and expenses
Interest income		888			888			828			703			822
Interest expense		(4,880	)		(4,579	)		(4,849	)		(5,001	)		(5,386	)
Other, net		2,013			658			472			3,387			6,608
Non-operating income and expenses, net		(1,979	)		(3,033	)		(3,549	)		(911	)		2,044
Income (loss) before income taxes		20,799			12,553			(303	)		16,796			16,066
Income tax expense (benefit)		8,730			5,563			(2,154	)		6,256			6,044
Net income	$	12,069		$	6,990		$	1,851		$	10,540		$	10,022
Cash Earnings Reconciliation
GAAP net income	$	12,069		$	6,990		$	1,851		$	10,540		$	10,022
Amortization of intangibles		8,206			8,338			8,806			8,975			9,176
Depreciation		3,005			3,006			8,857			3,361			3,485
Impairment of goodwill and intangible assets		—			2,901			6,231			2,002			2,895
Tax benefit of impairment of goodwill and intangible assets		88			(1,118	)		(1,133	)		(427	)		(902	)
Non-cash interest, net of tax		1,838			1,866			1,559			1,966			1,732
Cash earnings	$	25,206		$	21,983		$	26,171		$	26,417		$	26,408
Adjusted EBITDA Reconciliation
GAAP net income	$	12,069		$	6,990		$	1,851		$	10,540		$	10,022
Income tax expense (benefit)		8,730			5,563			(2,154	)		6,256			6,044
Interest income		(888	)		(888	)		(828	)		(703	)		(822	)
Interest expense		4,880			4,579			4,849			5,001			5,386
Other, net		(2,013	)		(658	)		(472	)		(3,387	)		(6,608	)
Income from operations		22,778			15,586			3,246			17,707			14,022
Amortization of intangibles		8,206			8,338			8,806			8,975			9,176
Depreciation		3,005			3,006			8,857			3,361			3,485
Impairment of goodwill and intangible assets		—			2,901			6,231			2,002			2,895
Gain on sale of businesses		(7,690	)		(2,231	)		(244	)		(1,190	)		(1,279	)
Adjusted EBITDA	$	26,299		$	27,600		$	26,896		$	30,855		$	28,299
Adjusted EBITDA as a % of revenue		11.2	%		12.3	%		9.7	%		13.4	%		12.6	%
Calculation of Management Fees %
Income from operations	$	22,778		$	15,586		$	3,246		$	17,707		$	14,022
Basic management fees		29,349			22,938			48,074			31,384			29,741
Principal Incentive Plan (PIP) management fees		1,933			(3,098	)		9,014			—			—
Stock based compensation management fees		1,144			1,323			936			406			401
Incentive and other management fees		108			2,487			841			3,065			(188	)
Total management fees		32,534			23,650			58,865			34,855			29,954
Amortization of intangibles		8,206			8,338			8,806			8,975			9,176
Depreciation		3,005			3,006			8,857			3,361			3,485
Impairment of goodwill and intangible assets		—			2,901			6,231			2,002			2,895
Gain on sale of businesses		(7,690	)		(2,231	)		(244	)		(1,190	)		(1,279	)
Income before management fees		58,833			51,250			85,761			65,710			58,253
Corporate income before management fees		(8,089	)		(8,882	)		(13,984	)		(5,935	)		(7,329	)
Adjusted income before management fees	$	66,922		$	60,132		$	99,745		$	71,645		$	65,582
Basic management fees as % of adjusted income before management fees		43.9	%		38.1	%		48.2	%		43.8	%		45.3	%
Total management fees as % of adjusted income before management fees		48.6	%		39.3	%		59.0	%		48.6	%		45.7	%

3

NATIONAL FINANCIAL PARTNERS CORP. CONDENSED STATEMENTS OF OPERATIONS AND OTHER FINANCIAL METRICS FOR QUARTERLY PERIODS - CORPORATE CLIENT GROUP (Unaudited - in thousands)  

	For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
Revenue:
Commissions and fees	$	89,516		$	95,247		$	106,971		$	90,665		$	89,832
Operating expenses:
Commissions and fees		8,299			7,963			8,588			8,825			8,142
Compensation expense		32,296			33,096			34,402			31,821			32,288
Non-compensation expense		18,832			19,596			21,804			17,234			18,416
Management fees		15,045			15,126			24,392			17,524			16,019
Amortization of intangibles		5,253			5,348			5,615			5,678			5,760
Depreciation		1,516			1,559			4,126			1,657			1,688
Impairment of goodwill and intangible assets		—			1,931			—			—			110
Gain on sale of businesses		(6,841	)		(1,321	)		(123	)		(206	)		(244	)
Total operating expenses		74,400			83,298			98,804			82,533			82,179
Income from operations	$	15,116		$	11,949		$	8,167		$	8,132		$	7,653
Adjusted EBITDA Reconciliation
Income from operations	$	15,116		$	11,949		$	8,167		$	8,132		$	7,653
Amortization of intangibles		5,253			5,348			5,615			5,678			5,760
Depreciation		1,516			1,559			4,126			1,657			1,688
Impairment of goodwill and intangible assets		—			1,931			—			—			110
Gain on sale of businesses		(6,841	)		(1,321	)		(123	)		(206	)		(244	)
Adjusted EBITDA	$	15,044		$	19,466		$	17,785		$	15,261		$	14,967
Adjusted EBITDA as a % of revenue		16.8	%		20.4	%		16.6	%		16.8	%		16.7	%
Calculation of Management Fees %
Income from operations	$	15,116		$	11,949		$	8,167		$	8,132		$	7,653
Basic management fees		13,054			13,676			19,235			15,787			16,048
Principal Incentive Plan (PIP) management fees		790			(483	)		2,041			—			—
Stock based compensation management fees		583			798			611			326			322
Incentive and other management fees		618			1,135			2,505			1,411			(351	)
Total management fees		15,045			15,126			24,392			17,524			16,019
Amortization of intangibles		5,253			5,348			5,615			5,678			5,760
Depreciation		1,516			1,559			4,126			1,657			1,688
Impairment of goodwill and intangible assets		—			1,931			—			—			110
Gain on sale of businesses		(6,841	)		(1,321	)		(123	)		(206	)		(244	)
Income before management fees		30,089			34,592			42,177			32,785			30,986
Corporate income before management fees		(6,447	)		(6,541	)		(8,951	)		(5,907	)		(6,431	)
Adjusted income before management fees	$	36,536		$	41,133		$	51,128		$	38,692		$	37,417
Basic management fees as % of adjusted income before management fees		35.7	%		33.2	%		37.6	%		40.8	%		42.9	%
Total management fees as % of adjusted income before management fees		41.2	%		36.8	%		47.7	%		45.3	%		42.8	%

4

NATIONAL FINANCIAL PARTNERS CORP. CONDENSED STATEMENTS OF OPERATIONS AND OTHER FINANCIAL METRICS FOR QUARTERLY PERIODS - INDIVIDUAL CLIENT GROUP (Unaudited - in thousands)  

	For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
Revenue:
Commissions and fees	$	91,377		$	78,694		$	122,383		$	97,428		$	92,432
Operating expenses:
Commissions and fees		20,246			18,372			26,609			18,851			19,436
Compensation expense		27,814			28,242			30,825			28,994			29,673
Non-compensation expense		16,857			17,455			22,656			17,928			17,540
Management fees		17,489			8,524			34,473			17,331			13,935
Amortization of intangibles		2,953			2,990			3,191			3,297			3,416
Depreciation		1,155			1,125			4,413			1,441			1,561
Impairment of goodwill and intangible assets		—			970			6,231			2,002			2,785
Gain on sale of businesses		(849	)		(910	)		(121	)		(984	)		(1,035	)
Total operating expenses		85,665			76,768			128,277			88,860			87,311
Income (loss) from operations	$	5,712		$	1,926		$	(5,894	)	$	8,568		$	5,121
Adjusted EBITDA Reconciliation
Income (loss) from operations	$	5,712		$	1,926		$	(5,894	)	$	8,568		$	5,121
Amortization of intangibles		2,953			2,990			3,191			3,297			3,416
Depreciation		1,155			1,125			4,413			1,441			1,561
Impairment of goodwill and intangible assets		—			970			6,231			2,002			2,785
Gain on sale of businesses		(849	)		(910	)		(121	)		(984	)		(1,035	)
Adjusted EBITDA	$	8,971		$	6,101		$	7,820		$	14,324		$	11,848
Adjusted EBITDA as a % of revenue		9.8	%		7.8	%		6.4	%		14.7	%		12.8	%
Calculation of Management Fees %
Income (loss) from operations	$	5,712		$	1,926		$	(5,894	)	$	8,568		$	5,121
Basic management fees		16,295			9,262			28,839			15,597			13,693
Principal Incentive Plan (PIP) management fees		1,143			(2,615	)		6,973			—			—
Stock based compensation management fees		561			525			325			80			79
Incentive and other management fees		(510	)		1,352			(1,664	)		1,654			163
Total management fees	$	17,489		$	8,524			34,473			17,331			13,935
Amortization of intangibles		2,953			2,990			3,191			3,297			3,416
Depreciation		1,155			1,125			4,413			1,441			1,561
Impairment of goodwill and intangible assets		—			970			6,231			2,002			2,785
Gain on sale of businesses		(849	)		(910	)		(121	)		(984	)		(1,035	)
Income before management fees		26,460			14,625			42,293			31,655			25,783
Corporate income before management fees		(3,926	)		(4,374	)		(6,324	)		(1,298	)		(2,382	)
Adjusted income before management fees	$	30,386		$	18,999		$	48,617		$	32,953		$	28,165
Basic management fees as % of adjusted income before management fees		53.6	%		48.7	%		59.3	%		47.3	%		48.6	%
Total management fees as % of adjusted income before management fees		57.6	%		44.9	%		70.9	%		52.6	%		49.5	%

5

NATIONAL FINANCIAL PARTNERS CORP. CONDENSED STATEMENTS OF OPERATIONS AND OTHER FINANCIAL METRICS FOR QUARTERLY PERIODS - ADVISOR SERVICES GROUP (Unaudited - in thousands)  

	For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
Revenue:
Commissions and fees	$	53,997		$	51,332		$	47,827		$	41,832		$	41,934
Operating expenses:
Commissions and fees		44,876			41,971			40,816			35,383			34,896
Compensation expense		3,612			3,930			3,652			3,834			4,203
Non-compensation expense		3,225			3,398			2,068			1,345			1,351
Management fees		—			—			—			—			—
Amortization of intangibles		—			—			—			—			—
Depreciation		334			322			318			263			236
Impairment of goodwill and intangible assets		—			—			—			—			—
Gain on sale of businesses		—			—			—			—			—
Total operating expenses		52,047			49,621			46,854			40,825			40,686
Income from operations	$	1,950		$	1,711		$	973		$	1,007		$	1,248
Adjusted EBITDA Reconciliation
Income from operations	$	1,950		$	1,711		$	973		$	1,007		$	1,248
Amortization of intangibles		—			—			—			—			—
Depreciation		334			322			318			263			236
Impairment of goodwill and intangible assets		—			—			—			—			—
Gain on sale of businesses		—			—			—			—			—
Adjusted EBITDA	$	2,284		$	2,033		$	1,291		$	1,270		$	1,484
Adjusted EBITDA as a % of revenue		4.2	%		4.0	%		2.7	%		3.0	%		3.5	%
Calculation of Management Fees %
Income from operations	$	1,950		$	1,711		$	973		$	1,007		$	1,248
Basic management fees		—			—			—			—			—
Principal Incentive Plan (PIP) management fees		—			—			—			—			—
Stock based compensation management fees		—			—			—			—			—
Incentive and other management fees		—			—			—			—			—
Total management fees		—			—			—			—			—
Amortization of intangibles		—			—			—			—			—
Depreciation		334			322			318			263			236
Impairment of goodwill and intangible assets		—			—			—			—			—
Gain on sale of businesses		—			—			—			—			—
Income before management fees		2,284			2,033			1,291			1,270			1,484
Corporate income before management fees (1)		2,284			2,033			1,291			1,270			1,484
Adjusted income before management fees	$	—		$	—		$	—		$	—		$	—
Basic management fees as % of adjusted income before management fees	NM			NM			NM			NM			NM
Total management fees as % of adjusted income before management fees	NM			NM			NM			NM			NM

NM indicates metric not meaningful

(1) Represents non-management fee generating income

6

NATIONAL FINANCIAL PARTNERS CORP. CONDENSED STATEMENTS OF OPERATIONS, ADJUSTED EBITDA AND ORGANIC REVENUE GROWTH FOR QUARTERLY PERIODS (Unaudited - dollars in thousands)  

	Corporate Client Group						Individual Client Group						Advisor Services Group				Total
	For the Three Months Ended						For the Three Months Ended						For the Three Months Ended				For the Three Months Ended
	June 30,			June 30,			June 30,			June 30,			June 30,		June 30,		June 30,			June 30,
	2010			2009			2010			2009			2010		2009		2010			2009
Revenue:
Commissions and fees	$	89,516		$	89,832		$	91,377		$	92,432		$	53,997	$	41,934	$	234,890		$	224,198
Operating expenses:
Commissions and fees		8,299			8,142			20,246			19,436			44,876		34,896		73,421			62,474
Compensation expense		32,296			32,288			27,814			29,673			3,612		4,203		63,722			66,164
Non-compensation expense		18,832			18,416			16,857			17,540			3,225		1,351		38,914			37,307
Management fees		15,045			16,019			17,489			13,935			—		—		32,534			29,954
Amortization of intangibles		5,253			5,760			2,953			3,416			—		—		8,206			9,176
Depreciation		1,516			1,688			1,155			1,561			334		236		3,005			3,485
Impairment of goodwill and intangible assets		—			110			—			2,785			—		—		—			2,895
Gain on sale of businesses		(6,841	)		(244	)		(849	)		(1,035	)		—		—		(7,690	)		(1,279	)
Total operating expenses		74,400			82,179			85,665			87,311			52,047		40,686		212,112			210,176
Income from operations	$	15,116		$	7,653		$	5,712		$	5,121		$	1,950	$	1,248	$	22,778		$	14,022

	For the Three Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,
	2010				2010				2009				2009				2009
Revenue
Corporate Client Group	$	89,516	38	%	$	95,247	42	%	$	106,971	39	%	$	90,665	39	%	$	89,832	40	%
Individual Client Group		91,377	39	%		78,694	35	%		122,383	44	%		97,428	42	%		92,432	41	%
Advisor Services Group		53,997	23	%		51,332	23	%		47,827	17	%		41,832	19	%		41,934	19	%
Consolidated	$	234,890	100	%	$	225,273	100	%	$	277,181	100	%	$	229,925	100	%	$	224,198	100	%
Adjusted EBITDA (1)
Corporate Client Group	$	15,044	57	%	$	19,466	71	%	$	17,785	66	%	$	15,261	50	%	$	14,967	53	%
Individual Client Group		8,971	34	%		6,101	22	%		7,820	29	%		14,324	46	%		11,848	42	%
Advisor Services Group		2,284	9	%		2,033	7	%		1,291	5	%		1,270	4	%		1,484	5	%
Consolidated	$	26,299	100	%	$	27,600	100	%	$	26,896	100	%	$	30,855	100	%	$	28,299	100	%

		For the Three Months Ended
		June 30,	March 31,
		2010	2010
Organic revenue growth
	Corporate Client Group	3.7%	5.7%
	Individual Client Group	5.5%	1.6%
	Advisor Services Group	16.0%	8.5%
	Consolidated	7.3%	4.9%

(1)   The reconciliation of Adjusted EBITDA per reportable segment does not include the following items, which are not allocated to any of the Company’s reportable segments: income tax expense, interest income, interest expense, and other, net.  These items are included in the reconciliation of Adjusted EBITDA to net income on a consolidated basis.

7

NATIONAL FINANCIAL PARTNERS CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER FINANCIAL METRICS FOR YEAR-TO-DATE PERIODS (Unaudited - in thousands)  

	For the Year-to-Date Period Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
Revenue:
Commissions and fees	$	460,163		$	225,273		$	948,285		$	671,104		$	441,179
Operating expenses:
Commissions and fees		141,727			68,306			263,947			187,934			124,875
Compensation expense		128,990			65,268			268,335			199,456			134,807
Non-compensation expense		79,363			40,449			159,523			112,995			76,488
Management fees		56,184			23,650			146,181			87,316			52,461
Amortization of intangibles		16,544			8,338			36,551			27,745			18,770
Depreciation		6,011			3,006			19,242			10,385			7,024
Impairment of goodwill and intangible assets		2,901			2,901			618,465			612,234			610,232
Gain on sale of businesses		(9,921	)		(2,231	)		(2,096	)		(1,852	)		(662	)
Total operating expenses		421,799			209,687			1,510,148			1,236,213			1,023,995
Income (loss) from operations		38,364			15,586			(561,863	)		(565,109	)		(582,816	)
Non-operating income and expenses
Interest income		1,776			888			3,077			2,249			1,546
Interest expense		(9,459	)		(4,579	)		(20,567	)		(15,718	)		(10,717	)
Other, net		2,671			658			11,583			11,111			7,724
Non-operating income and expenses, net		(5,012	)		(3,033	)		(5,907	)		(2,358	)		(1,447	)
Income (loss) before income taxes		33,352			12,553			(567,770	)		(567,467	)		(584,263	)
Income tax expense (benefit)		14,293			5,563			(74,384	)		(72,230	)		(78,486	)
Net income (loss)	$	19,059		$	6,990		$	(493,386	)	$	(495,237	)	$	(505,777	)
Cash Earnings Reconciliation
GAAP net income (loss)	$	19,059		$	6,990		$	(493,386	)	$	(495,237	)	$	(505,777	)
Amortization of intangibles		16,544			8,338			36,551			27,745			18,770
Depreciation		6,011			3,006			19,242			10,385			7,024
Impairment of goodwill and intangible assets		2,901			2,901			618,465			612,234			610,232
Tax benefit of impairment of goodwill and intangible assets		(1,030	)		(1,118	)		(90,608	)		(89,475	)		(89,048	)
Non-cash interest, net of tax		3,704			1,866			6,814			5,255			3,289
Cash earnings	$	47,189		$	21,983		$	97,078		$	70,907		$	44,490
Adjusted EBITDA Reconciliation
GAAP net income (loss)	$	19,059		$	6,990		$	(493,386	)	$	(495,237	)	$	(505,777	)
Income tax expense (benefit)		14,293			5,563			(74,384	)		(72,230	)		(78,486	)
Interest income		(1,776	)		(888	)		(3,077	)		(2,249	)		(1,546	)
Interest expense		9,459			4,579			20,567			15,718			10,717
Other, net		(2,671	)		(658	)		(11,583	)		(11,111	)		(7,724	)
Income (loss) from operations		38,364			15,586			(561,863	)		(565,109	)		(582,816	)
Amortization of intangibles		16,544			8,338			36,551			27,745			18,770
Depreciation		6,011			3,006			19,242			10,385			7,024
Impairment of goodwill and intangible assets		2,901			2,901			618,465			612,234			610,232
Gain on sale of businesses		(9,921	)		(2,231	)		(2,096	)		(1,852	)		(662	)
Adjusted EBITDA	$	53,899		$	27,600		$	110,299		$	83,403		$	52,548
Adjusted EBITDA as a % of revenue		11.7	%		12.3	%		11.6	%		12.4	%		11.9	%
Calculation of Management Fees %
Income (loss) from operations	$	38,364		$	15,586		$	(561,863	)	$	(565,109	)	$	(582,816	)
Basic management fees		52,287			22,938			130,211			82,137			50,753
Principal Incentive Plan (PIP) management fees		(1,165	)		(3,098	)		9,014			—			—
Stock based compensation management fees		2,467			1,323			2,145			1,209			803
Incentive and other management fees		2,595			2,487			4,811			3,970			905
Total management fees		56,184			23,650			146,181			87,316			52,461
Amortization of intangibles		16,544			8,338			36,551			27,745			18,770
Depreciation		6,011			3,006			19,242			10,385			7,024
Impairment of goodwill and intangible assets		2,901			2,901			618,465			612,234			610,232
Gain on sale of businesses		(9,921	)		(2,231	)		(2,096	)		(1,852	)		(662	)
Income before management fees		110,083			51,250			256,480			170,719			105,009
Corporate income before management fees		(16,971	)		(8,882	)		(37,693	)		(23,709	)		(17,774	)
Adjusted income before management fees	$	127,054		$	60,132		$	294,173		$	194,428		$	122,783
Basic management fees as % of adjusted income before management fees		41.2	%		38.1	%		44.3	%		42.2	%		41.3	%
Total management fees as % of adjusted income before management fees		44.2	%		39.3	%		49.7	%		44.9	%		42.7	%

8

NATIONAL FINANCIAL PARTNERS CORP. CONDENSED STATEMENTS OF OPERATIONS AND OTHER FINANCIAL METRICS FOR YEAR-TO-DATE PERIODS - CORPORATE CLIENT GROUP (Unaudited - in thousands)  

	For the Year-to-Date Period Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
Revenue:
Commissions and fees	$	184,763		$	95,247		$	379,980		$	273,009		$	182,344
Operating expenses:
Commissions and fees		16,262			7,963			34,397			25,809			16,984
Compensation expense		65,392			33,096			132,465			98,063			66,242
Non-compensation expense		38,428			19,596			75,823			54,019			36,785
Management fees		30,171			15,126			70,507			46,115			28,591
Amortization of intangibles		10,601			5,348			22,959			17,344			11,666
Depreciation		3,075			1,559			9,277			5,151			3,494
Impairment of goodwill and intangible assets		1,931			1,931			354,408			354,408			354,408
(Gain) loss on sale of businesses		(8,162	)		(1,321	)		7			130			336
Total operating expenses		157,698			83,298			699,843			601,039			518,506
Income (loss) from operations	$	27,065		$	11,949		$	(319,863	)	$	(328,030	)	$	(336,162	)
Adjusted EBITDA Reconciliation
Income (loss) from operations	$	27,065		$	11,949		$	(319,863	)	$	(328,030	)	$	(336,162	)
Amortization of intangibles		10,601			5,348			22,959			17,344			11,666
Depreciation		3,075			1,559			9,277			5,151			3,494
Impairment of goodwill and intangible assets		1,931			1,931			354,408			354,408			354,408
(Gain) loss on sale of businesses		(8,162	)		(1,321	)		7			130			336
Adjusted EBITDA	$	34,510		$	19,466		$	66,788		$	49,003		$	33,742
Adjusted EBITDA as a % of revenue		18.7	%		20.4	%		17.6	%		17.9	%		18.5	%
Calculation of Management Fees %
Income (loss) from operations	$	27,065		$	11,949		$	(319,863	)	$	(328,030	)	$	(336,162	)
Basic management fees		26,730			13,676			62,608			43,373			27,586
Principal Incentive Plan (PIP) management fees		307			(483	)		2,041			—			—
Stock based compensation management fees		1,381			798			1,581			970			644
Incentive and other management fees		1,753			1,135			4,277			1,772			361
Total management fees		30,171			15,126			70,507			46,115			28,591
Amortization of intangibles		10,601			5,348			22,959			17,344			11,666
Depreciation		3,075			1,559			9,277			5,151			3,494
Impairment of goodwill and intangible assets		1,931			1,931			354,408			354,408			354,408
(Gain) loss on sale of businesses		(8,162	)		(1,321	)		7			130			336
Income before management fees		64,681			34,592			137,295			95,118			62,333
Corporate income before management fees		(12,988	)		(6,541	)		(29,091	)		(20,140	)		(14,233	)
Adjusted income before management fees	$	77,669		$	41,133		$	166,386		$	115,258		$	76,566
Basic management fees as % of adjusted income before management fees		34.4	%		33.2	%		37.6	%		37.6	%		36.0	%
Total management fees as % of adjusted income before management fees		38.8	%		36.8	%		42.4	%		40.0	%		37.3	%

9

NATIONAL FINANCIAL PARTNERS CORP. CONDENSED STATEMENTS OF OPERATIONS AND OTHER FINANCIAL METRICS FOR YEAR-TO-DATE PERIODS - INDIVIDUAL CLIENT GROUP (Unaudited - in thousands)  

	For the Year-to-Date Period Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
Revenue:
Commissions and fees	$	170,071		$	78,694		$	397,314		$	274,931		$	177,503
Operating expenses:
Commissions and fees		38,618			18,372			84,335			57,726			38,875
Compensation expense		56,056			28,242			119,829			89,004			60,010
Non-compensation expense		34,312			17,455			77,169			54,513			36,585
Management fees		26,013			8,524			75,674			41,201			23,870
Amortization of intangibles		5,943			2,990			13,592			10,401			7,104
Depreciation		2,280			1,125			8,885			4,472			3,031
Impairment of goodwill and intangible assets		970			970			264,057			257,826			255,824
Gain on sale of businesses		(1,759	)		(910	)		(2,103	)		(1,982	)		(998	)
Total operating expenses		162,433			76,768			641,438			513,161			424,301
Income (loss) from operations	$	7,638		$	1,926		$	(244,124	)	$	(238,230	)	$	(246,798	)
Adjusted EBITDA Reconciliation
Income (loss) from operations	$	7,638		$	1,926		$	(244,124	)	$	(238,230	)	$	(246,798	)
Amortization of intangibles		5,943			2,990			13,592			10,401			7,104
Depreciation		2,280			1,125			8,885			4,472			3,031
Impairment of goodwill and intangible assets		970			970			264,057			257,826			255,824
Gain on sale of businesses		(1,759	)		(910	)		(2,103	)		(1,982	)		(998	)
Adjusted EBITDA	$	15,072		$	6,101		$	40,307		$	32,487		$	18,163
Adjusted EBITDA as a % of revenue		8.9	%		7.8	%		10.1	%		11.8	%		10.2	%
Calculation of Management Fees %
Income (loss) from operations	$	7,638		$	1,926		$	(244,124	)	$	(238,230	)	$	(246,798	)
Basic management fees		25,557			9,262			67,603			38,764			23,167
Principal Incentive Plan (PIP) management fees		(1,472	)		(2,615	)		6,973			—			—
Stock based compensation management fees		1,086			525			564			239			159
Incentive and other management fees		842			1,352			534			2,198			544
Total management fees		26,013			8,524			75,674			41,201			23,870
Amortization of intangibles		5,943			2,990			13,592			10,401			7,104
Depreciation		2,280			1,125			8,885			4,472			3,031
Impairment of goodwill and intangible assets		970			970			264,057			257,826			255,824
Gain on sale of businesses		(1,759	)		(910	)		(2,103	)		(1,982	)		(998	)
Income before management fees		41,085			14,625			115,981			73,688			42,033
Corporate income before management fees		(8,300	)		(4,374	)		(11,806	)		(5,482	)		(4,184	)
Adjusted income before management fees	$	49,385		$	18,999		$	127,787		$	79,170		$	46,217
Basic management fees as % of adjusted income before management fees		51.8	%		48.7	%		52.9	%		49.0	%		50.1	%
Total management fees as % of adjusted income before management fees		52.7	%		44.9	%		59.2	%		52.0	%		51.6	%

10

NATIONAL FINANCIAL PARTNERS CORP. CONDENSED STATEMENTS OF OPERATIONS AND OTHER FINANCIAL METRICS FOR YEAR-TO-DATE PERIODS - ADVISOR SERVICES GROUP (Unaudited - in thousands)  

	For the Year-to-Date Period Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
Revenue:
Commissions and fees	$	105,329		$	51,332		$	170,991		$	123,164		$	81,332
Operating expenses:
Commissions and fees		86,847			41,971			145,215			104,399			69,016
Compensation expense		7,542			3,930			16,041			12,389			8,555
Non-compensation expense		6,623			3,398			6,531			4,463			3,118
Management fees		—			—			—			—			—
Amortization of intangibles		—			—			—			—			—
Depreciation		656			322			1,080			762			499
Impairment of goodwill and intangible assets		—			—			—			—			—
Gain on sale of businesses		—			—			—			—			—
Total operating expenses		101,668			49,621			168,867			122,013			81,188
Income from operations	$	3,661		$	1,711		$	2,124		$	1,151		$	144
Adjusted EBITDA Reconciliation
Income from operations	$	3,661		$	1,711		$	2,124		$	1,151		$	144
Amortization of intangibles		—			—			—			—			—
Depreciation		656			322			1,080			762			499
Impairment of goodwill and intangible assets		—			—			—			—			—
Gain on sale of businesses		—			—			—			—			—
Adjusted EBITDA	$	4,317		$	2,033		$	3,204		$	1,913		$	643
Adjusted EBITDA as a % of revenue		4.1	%		4.0	%		1.9	%		1.6	%		0.8	%
Calculation of Management Fees %
Income from operations	$	3,661		$	1,711		$	2,124		$	1,151		$	144
Basic management fees		—			—			—			—			—
Principal Incentive Plan (PIP) management fees		—			—			—			—			—
Stock based compensation management fees		—			—			—			—			—
Incentive and other management fees		—			—			—			—			—
Total management fees		—			—			—			—			—
Amortization of intangibles		—			—			—			—			—
Depreciation		656			322			1,080			762			499
Impairment of goodwill and intangible assets		—			—			—			—			—
Gain on sale of businesses		—			—			—			—			—
Income before management fees		4,317			2,033			3,204			1,913			643
Corporate income before management fees (1)		4,317			2,033			3,204			1,913			643
Adjusted income before management fees	$	—		$	—		$	—		$	—		$	—
Basic management fees as % of adjusted income before management fees	NM			NM			NM			NM			NM
Total management fees as % of adjusted income before management fees	NM			NM			NM			NM			NM

NM indicates metric not meaningful

(1) Represents non-management fee generating income

11

NATIONAL FINANCIAL PARTNERS CORP. CONDENSED STATEMENTS OF OPERATIONS, ADJUSTED EBITDA AND ORGANIC REVENUE GROWTH FOR YEAR-TO-DATE PERIODS (Unaudited - dollars in thousands)  

	Corporate Client Group						Individual Client Group						Advisor Services Group				Total
	For the Year-to-Date						For the Year-to-Date						For the Year-to-Date				For the Year-to-Date
	Period Ended						Period Ended						Period Ended				Period Ended
	June 30,			June 30,			June 30,			June 30,			June 30,		June 30,		June 30,			June 30,
	2010			2009			2010			2009			2010		2009		2010			2009
Revenue:
Commissions and fees	$	184,763		$	182,344		$	170,071		$	177,503		$	105,329	$	81,332	$	460,163		$	441,179
Operating expenses:
Commissions and fees		16,262			16,984			38,618			38,875			86,847		69,016		141,727			124,875
Compensation expense		65,392			66,242			56,056			60,010			7,542		8,555		128,990			134,807
Non-compensation expense		38,428			36,785			34,312			36,585			6,623		3,118		79,363			76,488
Management fees		30,171			28,591			26,013			23,870			—		—		56,184			52,461
Amortization of intangibles		10,601			11,666			5,943			7,104			—		—		16,544			18,770
Depreciation		3,075			3,494			2,280			3,031			656		499		6,011			7,024
Impairment of goodwill and intangible assets		1,931			354,408			970			255,824			—		—		2,901			610,232
(Gain) loss on sale of businesses		(8,162	)		336			(1,759	)		(998	)		—		—		(9,921	)		(662	)
Total operating expenses		157,698			518,506			162,433			424,301			101,668		81,188		421,799			1,023,995
Income (loss) from operations	$	27,065		$	(336,162	)	$	7,638		$	(246,798	)	$	3,661	$	144	$	38,364		$	(582,816	)

	For the Year-to-Date Period Ended
	June 30,				March 31,				December 31,				September 30,				June 30,
	2010				2010				2009				2009				2009
Revenue
Corporate Client Group	$	184,763	40	%	$	95,247	42	%	$	379,980	40	%	$	273,009	41	%	$	182,344	41	%
Individual Client Group		170,071	37	%		78,694	35	%		397,314	42	%		274,931	41	%		177,503	40	%
Advisor Services Group		105,329	23	%		51,332	23	%		170,991	18	%		123,164	18	%		81,332	19	%
Consolidated	$	460,163	100	%	$	225,273	100	%	$	948,285	100	%	$	671,104	100	%	$	441,179	100	%
Adjusted EBITDA (1)
Corporate Client Group	$	34,510	64	%	$	19,466	71	%	$	66,788	60	%	$	49,003	59	%	$	33,742	64	%
Individual Client Group		15,072	28	%		6,101	22	%		40,307	37	%		32,487	39	%		18,163	35	%
Advisor Services Group		4,317	8	%		2,033	7	%		3,204	3	%		1,913	2	%		643	1	%
Consolidated	$	53,899	100	%	$	27,600	100	%	$	110,299	100	%	$	83,403	100	%	$	52,548	100	%

		For the Year-to-Date Period Ended
		June 30,	March 31,
		2010	2010
Organic revenue growth
	Corporate Client Group	4.7%	5.7%
	Individual Client Group	3.6%	1.6%
	Advisor Services Group	12.3%	8.5%
	Consolidated	6.1%	4.9%

(1) The reconciliation of Adjusted EBITDA per reportable segment does not include the following items, which are not allocated to any of the Company’s reportable segments: income tax expense, interest income, interest expense, and other, net.  These items are included in the reconciliation of Adjusted EBITDA to net income on a consolidated basis.

12

NATIONAL FINANCIAL PARTNERS CORP.  HISTORICAL CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER FINANCIAL METRICS FOR YEAR-TO-DATE PERIODS (Unaudited - in thousands)  

	For the Year-to-Date Period Ended
	December 31,			December 31,			December 31,
	2009			2008			2007
Revenue:
Commissions and fees	$	948,285		$	1,150,387		$	1,194,293
Operating expenses:
Commissions and fees		263,947			362,868			386,460
Compensation expense		268,335			291,753			261,717
Non-compensation expense		159,523			181,404			168,387
Management fees		146,181			170,683			211,825
Amortization of intangibles		36,551			39,194			34,303
Depreciation		19,242			13,371			11,010
Impairment of goodwill and intangible assets		618,465			41,257			7,877
(Gain) loss on sale of businesses		(2,096	)		(7,663	)		11,182
Total operating expenses		1,510,148			1,092,867			1,092,761
(Loss) income from operations		(561,863	)		57,520			101,532
Non-operating income and expenses
Interest income		3,077			4,854			7,920
Interest expense		(20,567	)		(21,765	)		(18,620	)
Other, net		11,583			1,199			1,125
Non-operating income and expenses, net		(5,907	)		(15,712	)		(9,575	)
(Loss) income before income taxes		(567,770	)		41,808			91,957
Income tax expense (benefit)		(74,384	)		33,337			43,204
Net (loss) income	$	(493,386	)	$	8,471		$	48,753
Cash Earnings Reconciliation
GAAP net (loss) income	$	(493,386	)	$	8,471		$	48,753
Amortization of intangibles		36,551			39,194			34,303
Depreciation		19,242			13,371			11,010
Impairment of goodwill and intangible assets		618,465			41,257			7,877
Tax benefit of impairment of goodwill and intangible assets		(90,608	)		(8,137	)		(1,899	)
Non-cash interest, net of tax		6,814			6,364			5,481
Cash earnings	$	97,078		$	100,520		$	105,525
Management agreement buyout, net of tax		—			—			7,681
Cash earnings excluding management agreement buyout, net of tax	$	97,078		$	100,520		$	113,206
Adjusted EBITDA Reconciliation
GAAP net (loss) income	$	(493,386	)	$	8,471		$	48,753
Income tax (benefit) expense		(74,384	)		33,337			43,204
Interest income		(3,077	)		(4,854	)		(7,920	)
Interest expense		20,567			21,765			18,620
Other, net		(11,583	)		(1,199	)		(1,125	)
(Loss) income from operations		(561,863	)		57,520			101,532
Amortization of intangibles		36,551			39,194			34,303
Depreciation		19,242			13,371			11,010
Impairment of goodwill and intangible assets		618,465			41,257			7,877
(Gain) loss on sale of businesses		(2,096	)		(7,663	)		11,182
Adjusted EBITDA	$	110,299		$	143,679		$	165,904
Adjusted EBITDA as a % of revenue		11.6	%		12.5	%		13.9	%
Calculation of Management Fees %
(Loss) income from operations	$	(561,863	)	$	57,520		$	101,532
Basic management fees		130,211			165,035			197,406
Principal Incentive Plan (PIP) management fees		9,014			—			—
Stock based compensation management fees		2,145			1,858			895
Incentive and other management fees		4,811			3,790			13,524
Total management fees		146,181			170,683			211,825
Amortization of intangibles		36,551			39,194			34,303
Depreciation		19,242			13,371			11,010
Impairment of goodwill and intangible assets		618,465			41,257			7,877
(Gain) loss on sale of businesses		(2,096	)		(7,663	)		11,182
Income before management fees		256,480			314,362			377,729
Corporate income before management fees		(37,693	)		(41,556	)		(36,252	)
Adjusted income before management fees	$	294,173		$	355,918		$	413,981
Basic management fees as % of adjusted income before management fees		44.3	%		46.4	%		47.7	%
Total management fees as % of adjusted income before management fees		49.7	%		48.0	%		51.2	%

13

NATIONAL FINANCIAL PARTNERS CORP. CORPORATE OVERVIEW (Unaudited - dollars in thousands, except per share data)  

	At or for the Three Months Ended															For the Years Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			December 31,			December 31,
	2010			2010			2009			2009			2009			2009			2008
GAAP net income (loss)	$	12,069		$	6,990		$	1,851		$	10,540		$	10,022		$	(493,386	)	$	8,471
Amortization of intangibles		8,206			8,338			8,806			8,975			9,176			36,551			39,194
Depreciation		3,005			3,006			8,857			3,361			3,485			19,242			13,371
Impairment of goodwill and intangible assets		—			2,901			6,231			2,002			2,895			618,465			41,257
Tax benefit of impairment of goodwill and intangible assets		88			(1,118	)		(1,133	)		(427	)		(902	)		(90,608	)		(8,137	)
Non-cash interest, net of tax		1,838			1,866			1,559			1,966			1,732			6,814			6,364
Cash earnings	$	25,206		$	21,983		$	26,171		$	26,417		$	26,408		$	97,078		$	100,520
GAAP net income (loss) per share - diluted	$	0.27		$	0.16		$	0.04		$	0.24		$	0.23		$	(12.02	)	$	0.21
Amortization of intangibles		0.19			0.19			0.20			0.21			0.21			0.87			0.96
Depreciation		0.07			0.07			0.21			0.08			0.08			0.46			0.33
Impairment of goodwill and intangible assets		—			0.07			0.14			0.05			0.07			14.78			1.01
Tax benefit of impairment of goodwill and intangible assets		0.00			(0.03	)		(0.03	)		(0.01	)		(0.02	)		(2.16	)		(0.20	)
Non-cash interest, net of tax		0.04			0.04			0.04			0.05			0.04			0.16			0.16
Impact of diluted shares on cash earnings not reflected in GAAP net loss per share - diluted (1)		—			—			—			—			—			0.23			—
Cash earnings per share - diluted (2)	$	0.57		$	0.50		$	0.61		$	0.61		$	0.62		$	2.32		$	2.46
Shares outstanding, beginning of period		41,926			41,363			41,201			41,104			40,026			39,753			38,935
Common shares issued for acquisitions during period		—			—			—			—			—			—			669
Common shares issued for contingent consideration and escrow during period		535			—			106			—			978			1,084			89
Common shares issued for stock-based awards during period		214			627			42			12			31			266			451
Common shares repurchased during period		(89	)		(95	)		(23	)		(21	)		(42	)		(91	)		(1,040	)
Common shares issued under ongoing incentive program		—			—			—			—			—			—			290
Other		33			31			37			106			111			351			359
Shares outstanding, end of period		42,619			41,926			41,363			41,201			41,104			41,363			39,753
Weighted average common shares outstanding		42,499			41,598			41,363			41,211			41,139			40,908			39,542
Dilutive effect of contingent consideration and ongoing incentive payments		128			649			593			393			390			593			176
Dilutive effect of stock-based awards		1,717			1,443			1,147			1,503			1,246			343			1,122
Dilutive effect of escrow, stock subscriptions and other		9			12			6			7			58			(2	)		93
Weighted average common shares outstanding - diluted (1)		44,353			43,702			43,109			43,114			42,833			41,842			40,933
Debt to total capitalization		43.4	%		41.0	%		41.8	%		45.2	%		49.4	%		41.8	%		29.3	%
Total NFP owned businesses at period end		145			148			154			160			169			154			181

(1)   For periods where the Company generated a GAAP net loss, weighted average common shares outstanding - diluted was used to calculate cash earnings per share - diluted only. To calculate GAAP net loss per share, weighted average common shares outstanding - diluted is the same as weighted average common shares outstanding - basic due to the antidilutive effects of other items caused by a GAAP net loss position.

(2)   The sum of the per-share components of cash earnings per share - diluted may not agree to cash earnings per share - diluted due to rounding.

14

NATIONAL FINANCIAL PARTNERS CORP. ACQUISITION & DISPOSITION METRICS FOR QUARTERLY AND YEAR-TO-DATE PERIODS (Unaudited - dollars in thousands)  

	For the Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2010		2010		2009		2009		2009
Number of acquisitions closed		1		—		2		—		—
Consideration:
Cash	$	—	$	—	$	—	$	—	$	—
Common stock		—		—		—		—		—
Other		—		—		—		—		—
Total consideration paid (1)	$	—	$	—	$	—	$	—	$	-
Target earnings of acquired firms	$	—	$	—	$	—	$	—	$	—
Base earnings of acquired firms	$	—	$	—	$	—	$	—	$	—

	For the Year-to-Date Period Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2010		2010		2009		2009		2009
Number of acquisitions closed		1		—		3		1		1
Consideration:
Cash	$	—	$	—	$	279	$	279	$	279
Common stock		—		—		—		—		—
Other		—		—		186		186		186
Total consideration paid (1)	$	—	$	—	$	465	$	465	$	465
Target earnings of acquired firms	$	—	$	—	$	148	$	148	$	148
Base earnings of acquired firms	$	—	$	—	$	88	$	88	$	88

	For the Three Months Ended
	June 30,			March 31,			December 31,		September 30,			June 30,
	2010			2010			2009		2009			2009
Disposed businesses' performance metrics (2)
Revenue
Corporate Client Group	$	19		$	173		$	3,530	$	4,387		$	3,561
Individual Client Group		20			166			5,808		6,455			5,754
Advisor Services Group		—			—			—		—			—
Consolidated	$	39		$	339		$	9,338	$	10,842		$	9,315
Adjusted EBITDA
Corporate Client Group	$	(120	)	$	69		$	563	$	1,142		$	548
Individual Client Group		2			(92	)		260		(440	)		(1,041	)
Advisor Services Group		—			—			—		—			—
Consolidated	$	(118	)	$	(23	)	$	823	$	702		$	(493	)

	For the Year-to-Date Period Ended
	December 31,		December 31,		December 31,		December 31,		December 31,		June 30,
	2005		2006		2007		2008		2009		2010
Disposed businesses
Acquired between 01/1999 - 12/2005
Corporate Client Group		1		1		—		4		5		3
Individual Client Group		3		4		4		2		28		9
Advisor Services Group		—		—		—		—		—		—
Consolidated		4		5		4		6		33		12
Acquired between 01/2006 - current
Corporate Client Group		—		—		—		—		—		—
Individual Client Group		—		—		—		1		1		—
Advisor Services Group		—		—		—		—		—		—
Consolidated		—		—		—		1		1		—

(1)   Total consideration paid may not sum sequentially due to post-closing adjustments made relating to prior period acquisitions. Total consideration includes amounts paid by both NFP and the principals for acquisitions and sub-acquisitions.

(2)   Represents revenue and adjusted EBITDA for all firms disposed as of the period ended June 30, 2010 and for these firms for the prior periods.  The reported figures may change in future periods as a result of the change in the set of firms disposed in future quarters.

15

NATIONAL FINANCIAL PARTNERS CORP. INTANGIBLES AND GOODWILL DATA (Unaudited - in thousands)  

	At or for the Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2010		2010		2009		2009		2009
Intangible Assets:
Book of business	$	94,270	$	99,265	$	104,669	$	110,974	$	116,795
Management contracts		243,913		250,152		258,456		271,550		276,971
Trade name		4,782		4,820		4,831		4,966		5,030
Institutional customer relationships		11,121		11,339		11,557		11,775		11,993
Goodwill		66,344		66,122		63,887		57,018		57,914
Total intangible assets and goodwill	$	420,430	$	431,698	$	443,400	$	456,283	$	468,703
Amortization Expense & Impairment Loss:
Book of business	$	4,711	$	4,863	$	5,102	$	5,234	$	5,480
Management contracts		3,277		6,158		9,342		4,209		4,910
Trade name		—		—		83		64		57
Institutional customer relationships		218		218		218		218		218
Goodwill		—		—		292		1,252		1,406
Total amortization expense & impairment loss	$	8,206	$	11,239	$	15,037	$	10,977	$	12,071

16

NATIONAL FINANCIAL PARTNERS CORP. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (BALANCE SHEET) (Unaudited - in thousands)  

	At
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
ASSETS
Current assets:
Cash and cash equivalents	$	157,769		$	50,961		$	55,994		$	60,084		$	49,822
Fiduciary funds - restricted relating to premium trust accounts		86,117			74,221			75,931			75,838			79,258
Commissions, fees and premiums receivable, net		95,835			100,255			129,833			100,930			104,049
Due from principals and/or certain entities they own		15,503			14,125			14,075			21,787			21,334
Notes receivable, net		7,459			7,412			9,731			7,161			7,860
Deferred tax assets		11,389			13,964			14,283			3,421			5,500
Other current assets		19,905			15,412			14,435			18,368			18,897
Total current assets		393,977			276,350			314,282			287,589			286,720
Property and equipment, net		36,362			37,182			37,291			44,341			46,107
Deferred tax assets		-			5,690			5,820			1,394			2,241
Intangibles, net		354,086			365,576			379,513			399,265			410,789
Goodwill, net		66,344			66,122			63,887			57,018			57,914
Notes receivable, net		33,158			30,261			28,714			32,410			32,191
Other non-current assets		52,276			40,768			39,744			29,793			30,078
Total assets	$	936,203		$	821,949		$	869,251		$	851,810		$	866,040
LIABILITIES
Current liabilities:
Premiums payable to insurance carriers	$	89,147		$	75,614		$	77,941		$	82,583		$	81,126
Borrowings		—			35,000			40,000			75,000			115,000
Income taxes payable		—			525			6,325			—			—
Due to principals and/or certain entities they own		18,232			10,463			34,106			22,779			17,000
Accounts payable		16,737			17,488			24,337			21,381			18,369
Accrued liabilities		54,318			54,208			73,105			47,531			47,127
Total current liabilities		178,434			193,298			255,814			249,274			278,622
Deferred tax liabilities		5,963			4,282			4,380			2,996			4,816
Convertible senior notes		295,368			207,455			204,548			201,767			198,984
Other non-current liabilities		70,702			67,966			64,472			62,037			61,427
Total liabilities		550,467			473,001			529,214			516,074			543,849
STOCKHOLDERS' EQUITY
Preferred stock at par value		—			—			—			—			—
Common stock at par value		4,498			4,477			4,414			4,410			4,409
Additional paid-in capital		901,207			879,300			876,563			874,839			872,031
Accumulated deficit		(442,354	)		(432,397	)		(438,109	)		(434,316	)		(440,230	)
Treasury stock		(77,687	)		(102,572	)		(102,930	)		(109,373	)		(114,117	)
Accumulated other comprehensive income		72			140			99			176			98
Total stockholders' equity		385,736			348,948			340,037			335,736			322,191
Total liabilities and stockholders' equity	$	936,203		$	821,949		$	869,251		$	851,810		$	866,040

17

NATIONAL FINANCIAL PARTNERS CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS FOR QUARTERLY PERIODS (Unaudited - in thousands)  

	For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
Cash flow from operating activities:
Net income	$	12,069		$	6,990		$	1,851		$	10,540		$	10,022
Adjustments to reconcile to net cash provided by (used in) operating activities:
Deferred taxes		5,005			351			(14,514	)		1,106			(58	)
Stock-based compensation		2,727			2,951			3,083			2,456			2,499
Impairment of goodwill and intangible assets		—			2,901			6,231			2,002			2,895
Amortization of intangibles		8,206			8,338			8,806			8,975			9,176
Depreciation		3,005			3,006			8,857			3,361			3,485
Accretion of senior convertible notes discount		3,128			2,907			2,781			2,783			2,784
(Gain) loss on sale of businesses		(7,690	)		(2,231	)		(244	)		(1,190	)		(1,279	)
(Gain) loss on sublease		—			1,766			8,201			—			—
Bad debt expense		815			24			1,854			718			(76	)
Other, net		(546	)		(402	)		—			—			—
(Increase) decrease in operating assets:
Fiduciary funds - restricted relating to premium trust accounts		(11,896	)		1,710			(93	)		3,420			(7,937	)
Commissions, fees and premiums receivable, net		1,268			29,632			(28,538	)		3,847			3,436
Due from principals and/or certain entities they own		(1,382	)		(60	)		7,906			1,615			(6,312	)
Notes receivable, net - current		(47	)		2,319			(2,570	)		659			(113	)
Other current assets		(4,656	)		(1,003	)		3,837			(816	)		(869	)
Notes receivable, net - non-current		(4,049	)		(2,547	)		3,988			1,060			3,044
Other non-current assets		1,083			(1,024	)		479			(700	)		(777	)
Increase (decrease) in operating liabilities:
Premiums payable to insurance carriers		13,533			(2,327	)		(4,642	)		1,457			9,004
Income taxes payable		(525	)		(5,800	)		6,325			—			(1,231	)
Due to principals and/or certain entities they own		6,971			(24,381	)		10,129			26			7,118
Accounts payable		1,722			(6,284	)		3,119			3,038			(5,524	)
Accrued liabilities		7,888			(14,112	)		19,672			1,081			6,751
Other non-current liabilities		624			2,179			(5,692	)		4,983			(1,899	)
Total adjustments		25,184			(2,087	)		38,975			39,881			24,117
Net cash provided by operating activities		37,253			4,903			40,826			50,421			34,139
Cash flow from investing activities:
Proceeds from disposal of businesses		476			5,031			5,109			1,935			6,962
Purchases of property and equipment, net		(2,334	)		(2,933	)		(2,177	)		(1,801	)		(1,538	)
Payments for acquired firms, net of cash, and contingent consideration		(2,677	)		(6,804	)		(1,448	)		(627	)		1,278
Restricted cash		—			—			(10,000	)		—			—
Net cash (used in) provided by investing activities		(4,535	)		(4,706	)		(8,516	)		(493	)		6,702
Cash flow from financing activities:
Repayments of borrowings		(35,000	)		(5,000	)		(35,000	)		(40,000	)		(33,000	)
Proceeds from issuance of senior convertible notes		125,000			—			—			—			—
Senior convertible notes issuance costs		(4,113	)		—			—			—			—
Purchase of call options		(33,913	)		—			—			—			—
Sale of warrants		21,025			—			—			—			—
Proceeds from stock-based awards, including tax benefit		1,140			1,694			(1,236	)		385			(327	)
Shares cancelled to pay withholding taxes		(48	)		(1,858	)		(164	)		(51	)		(12	)
Payments for treasury stock repurchase		—			—			—			—			—
Dividends paid		(1	)		(66	)		—			—			1
Net cash used in (provided by) financing activities		74,090			(5,230	)		(36,400	)		(39,666	)		(33,338	)
Net increase (decrease) in cash and cash equivalents		106,808			(5,033	)		(4,090	)		10,262			7,503
Cash and cash equivalents, beginning of period		50,961			55,994			60,084			49,822			42,319
Cash and cash equivalents, end of the period	$	157,769		$	50,961		$	55,994		$	60,084		$	49,822
Supplemental disclosures of cash flow information
Cash paid for income taxes	$	9,267		$	11,436		$	5,719		$	4,332		$	10,306
Cash paid for interest	$	317		$	1,384		$	854		$	1,975		$	1,411

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NATIONAL FINANCIAL PARTNERS CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS - YEAR-TO-DATE (Unaudited - in thousands)  

	For the Year-to-Date Period Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
Cash flow from operating activities:
Net income (loss)	$	19,059		$	6,990		$	(493,386	)	$	(495,237	)	$	(505,777	)
Adjustments to reconcile to net cash provided by (used in) operating activities:
Deferred taxes		5,356			351			(101,514	)		(87,000	)		(88,106	)
Stock-based compensation		5,678			2,951			10,526			7,443			4,987
Impairment of goodwill and intangible assets		2,901			2,901			618,465			612,234			610,232
Amortization of intangibles		16,544			8,338			36,551			27,745			18,770
Depreciation		6,011			3,006			19,242			10,385			7,024
Accretion of senior convertible notes discount		6,035			2,907			11,073			8,292			5,509
Gain on sale of businesses		(9,921	)		(2,231	)		(2,096	)		(1,852	)		(662	)
Gain on sublease		1,766			1,766			8,201			—			—
Bad debt expense		839			24			2,622			768			50
Other, net		(948	)		(402	)		—			—			—
(Increase) decrease in operating assets:
Fiduciary funds - restricted relating to premium trust accounts		(10,186	)		1,710			(822	)		(729	)		(4,149	)
Commissions, fees and premiums receivable, net		30,900			29,632			10,382			38,920			35,073
Due from principals and/or certain entities they own		(1,442	)		(60	)		4,516			(3,390	)		(5,005	)
Notes receivable, net - current		2,272			2,319			(3,275	)		(705	)		(1,364	)
Other current assets		(5,659	)		(1,003	)		3,441			(396	)		420
Notes receivable, net - non-current		(6,596	)		(2,547	)		1,011			(2,977	)		(4,037	)
Other non-current assets		59			(1,024	)		(1,353	)		(1,832	)		(1,132	)
Increase (decrease) in operating liabilities:
Premiums payable to insurance carriers		11,206			(2,327	)		4,782			9,424			7,967
Income taxes payable		(6,325	)		(5,800	)		6,314			(11	)		(11	)
Due to principals and/or certain entities they own		(17,410	)		(24,381	)		(11,943	)		(22,072	)		(22,098	)
Accounts payable		(4,562	)		(6,284	)		(4,006	)		(7,125	)		(10,163	)
Accrued liabilities		(6,224	)		(14,112	)		11,197			(8,475	)		(9,556	)
Other non-current liabilities		2,803			2,179			(6,108	)		(416	)		(5,399	)
Total adjustments		23,097			(2,087	)		617,206			578,231			538,350
Net cash provided by operating activities		42,156			4,903			123,820			82,994			32,573
Cash flow from investing activities:
Proceeds from disposal of businesses		5,507			5,031			16,106			10,997			9,062
Purchases of property and equipment, net		(5,267	)		(2,933	)		(7,120	)		(4,943	)		(3,142	)
Payments for acquired firms, net of cash, and contingent consideration		(9,481	)		(6,804	)		(3,054	)		(1,606	)		(979	)
Restricted cash		—			—			(10,000	)		—			—
Net cash (used in) provided by investing activities		(9,241	)		(4,706	)		(4,068	)		4,448			4,941
Cash flow from financing activities:
Repayments of borrowings		(40,000	)		(5,000	)		(108,000	)		(73,000	)		(33,000	)
Proceeds from issuance of senior convertible notes		125,000			—			—			—			—
Senior convertible notes issuance costs		(4,113	)		—			—			—			—
Purchase of call options		(33,913	)		—			—			—			—
Sale of warrants		21,025			—			—			—			—
Proceeds from stock-based awards, including tax benefit		2,834			1,694			(3,955	)		(2,719	)		(3,104	)
Shares cancelled to pay withholding taxes		(1,906	)		(1,858	)		(374	)		(210	)		(159	)
Payments for treasury stock repurchase		—			—			—			—			—
Dividends paid		(67	)		(66	)		(50	)		(50	)		(50	)
Net cash used in (provided by) financing activities		68,860			(5,230	)		(112,379	)		(75,979	)		(36,313	)
Net increase (decrease) in cash and cash equivalents		101,775			(5,033	)		7,373			11,463			1,201
Cash and cash equivalents, beginning of period		55,994			55,994			48,621			48,621			48,621
Cash and cash equivalents, end of the period	$	157,769		$	50,961		$	55,994		$	60,084		$	49,822
Supplemental disclosures of cash flow information
Cash paid for income taxes	$	20,703		$	11,436		$	23,729		$	18,010		$	13,678
Cash paid for interest	$	1,701		$	1,384		$	6,625		$	5,771		$	3,796

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NATIONAL FINANCIAL PARTNERS CORP. DEFINED TERMS  

Adjusted EBITDA:	Net income excluding income tax expense, interest income, interest expense, other, net, amortization of intangibles, depreciation, impairment of goodwill and intangible assets, (gain) loss on sale of businesses, and any change in estimated contingent consideration amounts recorded in accordance with purchase accounting that have been subsequently adjusted and recorded in the consolidated statement of operations.
Adjusted Income before Management Fees:	Income before management fees excluding corporate income before management fees.
Base Earnings of Acquired Firms:	Represents the cumulative preferred portion of Target Earnings of Acquired Firms that NFP capitalizes at the time of acquisition of a firm.
Basic Management Fees:	Represents the expense incurred for payments made or amounts owed to NFP principals and/or certain entities they own based on the financial performance of the firms they manage.  Basic management fees largely consist of: firm earnings in excess of base earnings up to target earnings, plus a portion of the earnings in excess of target earnings in accordance with the ratio of base earnings to target earnings.
Basic Management Fees Percentage:	Basic Management Fees as a percentage of gross margin before management fees.
Cash Earnings:	Net income excluding amortization of intangibles, depreciation, the after-tax impact of the impairment of goodwill and intangible assets and the after-tax impact of non-cash interest expense.
Cash Earnings per Share - Diluted:	Represents Cash Earnings divided by weighted average diluted shares outstanding.
Common Shares Issued for Acquisitions:	Represents the portion of consideration paid in the form of shares of NFP common stock for acquisitions closed during the period presented.
Common Shares Issued for Contingent Consideration and Escrow:	Represents the portion held in escrow or contingent consideration paid in the form of shares of NFP common stock during the period presented.
Common Shares Issued for Stock-Based Awards:	Represents the number of shares of NFP common stock issued under NFP's various Stock Incentive Plans during the period presented.
Common Shares Issued under Ongoing Incentive Program:	Represents the number of shares of NFP common stock issued under NFP's ongoing incentive program.
Common Shares Repurchased:	Represents shares of NFP common stock repurchased during the period, whether in an open market transaction or privately from a firm principal or other stockholder.
Corporate Income before Management Fees:	Includes revenue and expense allocations for corporate shared services and the Advisor Services Group, entities for which no management fees are paid. Since the Advisor Services Group is primarily comprised of NFPSI, an entity for which no management fees are paid, and earnings are not being shared with principals, all revenue and expenses from the Advisor Services Group are considered a component of Corporate Income before Management Fees.
Debt to Total Capitalization:	Calculated as debt outstanding at the end of the period divided by the sum of debt outstanding and total stockholders' equity at the end of the same period.
Incentive and Other Management Fees:	Largely represents the portion of management fees expense due to accruals for certain performance-based incentive amounts payable under NFP’s ongoing incentive plan, BIP plan (business incentive plan) and other management fee amounts due to principals.

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NATIONAL FINANCIAL PARTNERS CORP. DEFINED TERMS  

Income before Management Fees:	The Company defines income before management fees as income from operations excluding management fees, amortization, depreciation, impairment of intangible assets and the (gain) loss on sale of businesses.  Income before management fees is a metric management utilizes in its evaluation of the profitability of an NFP-owned business before principals receive participation in the earnings.
Intangible Assets - Book of Business:	A portion of the purchase price of acquisitions made by NFP is allocated to book of business.  The amount allocated to this component is largely determined by the amount of recurring revenue of the acquired firm.  The book of business is amortized on a straight-line basis over a ten-year period.
Intangible Assets - Goodwill:	The residual amount of the purchase price not allocated to book of business, management contracts and trade name is allocated to goodwill.  In accordance with GAAP, goodwill and intangible assets deemed to have indefinite lives are not amortized but are reviewed annually (or more frequently if impairment indicators arise) for impairment. Goodwill amortization after January 1, 2002 is entirely related to impairment losses or firms that NFP disposed.
Intangible Assets - Institutional Customer Relationships:	A portion of the purchase price of an acquisition made by NFP is allocated to institutional customer relationships.  The value of the asset is derived from recurring revenue generated from these institutional customers in place at the time of the acquisition, net of an allocation of expenses and is assumed to decrease over the life of the asset due to the attrition of the institutional relationships acquired.  Institutional customer relationships are amortized on a straight-line basis over an eighteen-year period.
Intangible Assets - Management Contracts:	A portion of the purchase price of acquisitions made by NFP is allocated to management contracts.  The amount allocated to this component is largely determined by the amount of non-recurring revenue of the acquired firm as well as an assumption for the lost production of the principal(s) of the firm at retirement.  The management contract is amortized on a straight-line basis over a twenty-five year period.
Intangible Assets - Trade Name:	NFP generally allocates approximately 1% of the purchase price of an acquisition to trade name, which is determined to have an indefinite life and, therefore, is not amortized.
Management Fees:	Represents the payments made to NFP principals and/or certain entities they own based on the financial performance of the firms they manage.  Management Fees include: Basic Management Fees, Principal Incentive Plan (PIP) Management Fees and Incentive and Other Management Fees.
Organic Revenue Growth:	The Company uses organic revenue growth as a comparable revenue measurement for future periods. The Company excludes the first twelve months of revenue generated from new acquisitions and the revenue derived from businesses fully disposed of in each period presented.  With respect to Sub-Acquisitions, the Company establishes an internal revenue generation expectation (the “acquired revenue”) of a new Sub-Acquisition. During the first twelve months immediately following the Sub-Acquisition, the Company reduces the acquired revenue amount from the actual revenue generated by the Sub-Acquisition and includes the revenue growth above or below acquired revenue within the organic growth percentage.  With respect to situations where a significant portion of a business' assets have been disposed, the Company reduces the prior year’s comparable revenue proportionally to the percentage of assets that have been disposed to facilitate an equitable organic growth comparison.
Principal Incentive Plan (PIP) Management Fees:	Represents the expense incurred due to accruals for certain performance-based incentive amounts payable under NFP’s Principal Incentive Plan (PIP).
Stock-based Compensation Management Fees:	Represents the portion of management fee expense for stock awards issued to NFP’s principals.
Sub-Acquisitions:	A transaction in which an existing NFP-owned business acquires a new entity or book of business.
Target Earnings of Acquired Firms:	Represents the target business’s annual  earnings, before interest, taxes, depreciation and amortization, and adjusted for expenses that will not continue post-acquisition, such as compensation to former owners who become principals (“Target  EBITDA”).  The target business’s Target EBITDA is considered “target earnings,” typically two times “base earnings.”

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