1 MONTHLY REPORT May, 2010 May, 2010 Planning Division Howard Wang 28 May. 2010

2  Market information updated  Analysis of promotion product  Analysis of surrender policy  Southeastern Asia insurance market Engaged Project This Month

3 Market News  After receiving Application Form and First Year Premium, Agent sends SMS to Korea Life.This SMS is an evidence for Temporary insurance. (SMS = Short Message Service)  After receiving Application Form and First Year Premium, Agent sends SMS to Korea Life.This SMS is an evidence for Temporary insurance. (SMS = Short Message Service) New service in Korea Life

4 Market News  Prudential has used GA model to extend it’s business in Vietnam since Nowadays, Prudential has 130 GA offices in 63 provinces. GA model contributes 71% total income from new contracts.  Dai-ichi started to use GA model from It has 3 GA offices in the first quarter of 2010 and plans to open other 10 GA offices during this year.  Prudential has used GA model to extend it’s business in Vietnam since Nowadays, Prudential has 130 GA offices in 63 provinces. GA model contributes 71% total income from new contracts.  Dai-ichi started to use GA model from It has 3 GA offices in the first quarter of 2010 and plans to open other 10 GA offices during this year. General Agency (GA)

5 Market News CompanyPrud.Bao VietManuACEAIADaiichiCathay Prem. Income Proportion33.3%25.1%11.7%7.5%8.8%8.1%1.6% * Korea(20.7), Prevoir(4.8), G. E.(1.3) and VCLI(0.03) / S ource: AVI 2010 Q1 Report In Billion NB Premium Income 33.3% 25.1% 11.7% 7.5% 8.8% 1.6% 8.1% 42.1%

6 Market News Total Premium Income CompanyPrudentialBao VietManulifeOthers Total Prem. Income Proportion39.4%32.6%10.8%17.2% Source: AVI 2010 Q1 Report In Trillion

7  Market information updated  Analysis of promotion product  Analysis of surrender policy  Southeastern Asia insurance market Engaged Project This Month

8 Promotion-A03 4th WM:35 5th WM:14 4th WM:16 5th WM: 4 Source: data update to 2010/5/19 from company’s database Unit: Number of Policy

9 Promotion-A03 Unit: million VND Working Month 4th WM5th WMTotal No. of Policy First Premium Annualized Premium1, ,373.8  There are two long term vacations in 5th Working Month, so no. of policy in 5th WM is less than it in 4th WM.

10 Promotion-A03 Promotion Period: 6th working month Mode: Original Performance FYP rate × 2 OriginalPromotion Period PFYP rate10%20%

11 Exciting Summer -C05 、 C06 、 C07 Unit: Number of Policy 5.1% 8.0% Total Number of Policy

12 Exciting Summer -C05 、 C06 、 C07 Unit: million VND 4.8% 10.2% Total First Premium

13 Exciting Summer -C05 、 C06 、 C07 Unit: Number of Policy 26.9% 40.6% * FP standard : C05 and C06 are 3.5M, C07 is 5M No. of Policy reach the standard

14 Exciting Summer -C05 、 C06 、 C07 Conclusion :  After comparing the number of policy and total first premium with 3rd working month, both of them are increasing in 4th and 5th working month.  The statistics of didn’t reach the standard : 65 policies(8%) have 1M less than FP standard. 189 policies(24%) only have basic plan. 121 policies(15%) model are not annual payment. Conclusion :  After comparing the number of policy and total first premium with 3rd working month, both of them are increasing in 4th and 5th working month.  The statistics of didn’t reach the standard : 65 policies(8%) have 1M less than FP standard. 189 policies(24%) only have basic plan. 121 policies(15%) model are not annual payment. Add Rider Annual Payment More Chances

15  Market information updated  Analysis of promotion product  Analysis of surrender policy  Southeastern Asia insurance market Engaged Project This Month

16 Surrender Policy Unit: Number of Policy

17 Surrender Policy Unit: Number of Policy Policy yearHCMHNTotal 0~ ~  There are 132 policies only pay one time yearly premium and 54 policies of Single Payment.

18 Surrender Policy Reasons: 1. Most of our customers need money for treatments or their family. 2. Few of our customers expatriate to other countries. Suggestion :  Our employees dissuade customers from submitting their surrender application.  For new products, they will have surrender value after paying two times of yearly premiums.  To keep educating our agents to make sure what customers need. Reasons: 1. Most of our customers need money for treatments or their family. 2. Few of our customers expatriate to other countries. Suggestion :  Our employees dissuade customers from submitting their surrender application.  For new products, they will have surrender value after paying two times of yearly premiums.  To keep educating our agents to make sure what customers need.

19  Market information updated  Analysis of promotion product  Analysis of surrender policy  Southeastern Asia insurance market Engaged Project This Month

20 Southeastern Asia Insurance Market

21 Southeastern Asia Insurance Market Source: Swiss Re, sigma No 3/2009 Life insurance market information : CountryVietnamSingaporeMalaysiaThailandIndonesiaPhilippines Insurance density (USD)7.52, Insurance penetration0.7%6.3%2.8%1.8%0.9% Premium (million USD)66011,4456,1054,9664,7041,449 Share of world market0.03%0.46%0.25%0.20%0.19%0.06% Note : 1.Insurance density: premium per capita in USD in Insurance penetration: premium in % of GDP in 2008

22 Southeastern Asia Insurance Market Source: LIMRA 2008 Marketing channel : Note : According to LIMRA report, Philippines’s main sales channel is Traditional marketing, but there is no numbers in each sales channel in the report. CountrySingaporeMalaysiaThailandIndonesia Traditional (Agency)75.0%49.4%75.0%55.0% Bancassurance21.0%45.3%15~20%20.0% Insurance broker3.0%2.4%5~10%15.0% Direct marketing0.9%2.1%0.0%10.0% Others0.1%0.8%0.0%

23 Southeastern Asia Insurance Market Source: Monetary Authority of Singapore Product Development : CompanyTraditionalInvestment AIA 16.2%12.4% Great Eastern 16.3%7.9% Prudential 7.5%12.8% NTUC Income 15.1%2.5% AVIVA 4.8%4.5% Total 59.9%40.1% 1. Singapore: (Main life insurance companies)

24 Southeastern Asia Insurance Market YearTraditionalInvestment %49.2% %36.8% %28.5% Source: Country Bank of Malaysia Product Development : 2. Malaysia: 3. Vietnam: YearTraditionalInvestment %26.1% 2010Q169.4%30.6% Source: AVI 2010 Q1 report

25  New Product  GA model research  Review Agent System  Review product Promotion and marketing activity Planning Project Next Month

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