Monthly Report March, ‘11 Planning Division Nhung La 25 Mar. 2011

Agenda  Market News  Products Sales  Customers Needs Analysis  Persistency Analysis

 The earthquake happened in Japan on Mar 11 th, with more than 21,000 persons died and disappeared, the loss estimated to $235B. Unfortunately, only ~15% real estates being insured about the earthquake risks.  AIG America forecast will loss ~ USD1B for claim payment due to disaster. In which, 70% come from the earthquake in Japan; other due to the flood in Australia and Brazil together with the earthquake in New Zealand. Market News

 New insurance business Laws, be effective from Jul 01, 2011, with some revising: - Allowed for life insurers design pension and heath care insurance product.  People in all kinds of occupation can choose to buy from all insurers, in all levels, to take care themselves in health, especially their living after retirement. - Together with joining WTO, the foreigners working in VN can buy insurance oversea.  Countries in WTO can sell insurance to VN. Market News

- More strictly in ceded insurance, competition, training and recruiting of employees, setting Customers Protection Fund by insurers.  Create good environment in insurance business, keep strong financial ability for insurers. - Make clear on the effective date: 1. Policy signed; 2. The PO paid first premium in full; 3. The insurer allow for PO owe premium.  Avoid argument incase insured event happen. Market News

Products Sales

New Products Launch  Launching date: Mar 11 th, 2011  Cathay Accidental Endowment – A05 New Submitted: 1 case; ANP: VND1.5M  Cathay Advance Whole Life – C10 New Submitted: 10 cases; ANP: VND112M  Cathay Advance Endowment – C11 New Submitted: 39 cases; ANP: VND365M  Cathay Advance Child Education – C12 New Submitted: 26 cases; ANP: VND193M 6

Products Stop Selling The last selling date: Mar 23 rd, 2011  Cathay Whole Life with Cash Benefit – C05 NOP: 1,884; ANP: VND11,402 M  Cathay Whole Life 111 with ROP – C06 NOP: 56 ; ANP: VND537 M  Cathay Premium Endowment – C07 NOP: 7,780; ANP: VND54,635 M  Cathay Premium Child Education – C08 NOP: 2,690; ANP: VND14,524 M

Customers Needs Analysis

Gender Distribution Whole Company By Branches Only in CT, % customers in male is higher than in female.

Whole Company Age Distribution Customers age around 21~40 grow very quick and have become our main customers.

Age Distribution (cont) By Branches HCM, HN, CT and Dong Nai sell most of their policies to the customers who age around 21~40. Da Nang and HP both focus on young customers. We can also observe the similar situation on their product sales. CT pays more attention on older customers ( ≧ 41) (~ 20%).

Product distribution Whole Company Endowment is currently our best sale type  Higher commission and easier to convince our customers by its saving feature.

Product distribution By Branches Most of branches focus on Endowment and Education products. Only CT have higher sale of Whole Life than Education End.

Annualized Premium per Policy 14 Whole Company ANP per policy increase steadily from ‘09, except for Term Product. By Branches ANP per policy of HP are little bit higher than other branches, the highest is Term product (~VND 8M) due to some big cases.

Persistency Analysis

Persistency ratio Persistency Ratio from 2009 ~ th mth persistency keeps decreasing to ~ 38.6% for Oct ‘ th mth persistency is ~ 80% of 13 th mth persistency rate.  The willing to pay premium is much higher if the customers keep the policy and pay premium longer than one year.

Persistency Ratio by Regions The 13 th month persistency ratio among the Regions The persistency of HCM1 is quite stable. The persistency of HN1 and DNG keeps decreasing and also affect the persistency of whole company. Note: DGN and HP were established less than 1 year only.

Lapse Policy Analysis Lapse due to reasons Most of policies lapse in HCM1, DNG and CT due to suspension. However the surrender cases in DNG and CT are little bit higher than in HCM1. Surrender polices of HN1 are very significant compare to other regions. It is getting higher to > 40% in recent 2 months. RegionNormalSuspensionSurrenderOthers HCM157%31%11%1% HN147%24%26%3% DN50%34%16%0% CT48%34%19%0% Total50%28%20%2%

Lapse Policy Analysis (cont) Lapse split between kinds of Policies If we consider the orphan policy within the self-purchased policy, more than 63% are lapsed. Region Orphan Policy vs. Normal Self-purchased vs. Normal OrphanNormal Self- purchased Normal HCM144%31%44%32% HN155%50%60%51% DN41%29%46%32% CT33%11%20%14% Total50%33%48%39%

Some Suggestions  The 13 th month persistency target of 2011 is 60%, but this ratio of whole company just reach 50% at end of Feb’11.  Guide the agents & CS to pay more attention on after sale service to enhance our policy quality.  Company encourages our employees and agents to buy policies themselves.  All branches should emphasize our agents to focus on their career path and to grow up with the company.  Orphan policy of each branch  Besides to improve the after sale service, we should also increase agents retention ratio, to reduce the orphan policy. Branch HCMHNDNCTDNaHPTotal % 25.3%41.3%42.3%21.4%7.4%0.0%33.1%

Planning Project Next Month  New Product Designs  GA (General Agency) Assessment  2011 Customer Campaign Assessment