1 MONTHLY REPORT Oct, 2009 Planning Division Hong Nhung 30th Oct. 2009

2 ENGAGED PROJECT THIS MONTH   Market Information Updated   Premium Income   New Products Launch   New Products Pricing   MDRT Requirement Modify

3 Ace Life launches Products for enterprises Market Info Universal Life - Key Person Option Group Term Life For high-ranking personnel (LA 18-60). Min 10 key persons. Commit to work at least 5 years. This is a viable financial protection option for other staffs (LA 18-64) with low premium. The benefits in policies are agreed upon by employers and employees. This can be entirely for employee appreciation, or employer financial protection or both.

4 Macro-insurance products launched Market Info   MOF allowed some enterprises to carry out trial of macro-insurance services.   Manulife Co is piloting the services in Hai Phong and Kien Giang: Premium: VND100k-280k a year; SA:VND million, as people face accidents, diseases, or other risks. Distribution: through women's association and farmers' association. Distribution: through women's association and farmers' association. And to date, over 4,000 insurance contracts have been signed.

5 Macro-insurance products launched (cont)  This month end, the ISV and Enterprises will sum up the results of piloting process.  Expectation: Beginning, insurers can lose but they will help the poor access the insurance purchase customs. Finally, they will join ordinary insurance services.  Also, AVI cooperated with the capital support fund for the poor to sell voluntary health insurance to 1,500 members in HCMC (with an attractive fee of VND2k/month, VND1k/month or VND0.2k/week). Market Info

6 General VN Insurance Market information Market Info Vietnamese insurers not expanding overseas (internal strength is weak, domestic market in large potential opportunities). HSBC Insurance increases stake in Bao Viet (HSBC will purchase a further 8% of Bao Viet shares from MoF, raise its shares to 18% from 10% ~ VND1.88 trillion). Insurance revenue reports VND6tril in first month (a year-on-year increase of 15.8%, demonstrated great potential of the insurance industry amidst the global economic recession) Cathay Life Vietnam opens Cantho branch office

7 NB Premium Income - Annualized CompanyPrud.Bao VietManuAIAACEDaiichiCathay Prem. Income Proportion32.4%25.1%10.9%9.4% 7.4%1.5% Prem Income Jan~Sep 2009 Korea(26.4) 、 Prevoir (45.4) and G. E. (7.1).Korea(26.4) 、 Prevoir (45.4) and G. E. (7.1). This information is not published yet, just for reference only.This information is not published yet, just for reference only. 32.4% 25.1% 10.9% 9.4% In Billion 9.4% 1.5% 7.4% Market share of Bao Viet decrease!

8 Total Premium Income CompanyPrudentialBao VietManulifeOthers Total Prem. Income Proportion40.5%32.5%10.7%16.3% Prem Income YTD Sep 2009 In Trillion

9 C07 – Cathay Premium Endowment Products launch Death or TPD (Plus Unearned Premium) Premium Paying Period = 10 yrs Policy Year Maturity Benefit: 200% SA 10% SA 100% SA Interest Feedback Approved by MOF-ISV Oct 12, 2009

10 C07-Premium End Versus C03-ISA End Products launch C03: SA: VND100 M DB: VND M TPDB:VND M MB: VND466.1 M For a male, age 35, buy an insurance policy in 20 yrs with the premium of VND mil/year. Interest feedback: DI=8%: VND M (+17%) DI=9%: VND M (+22%) Interest feedback: DI=8%: 0 DI=9%: VND32.4 M C07: SA: VND M DB: VND M TPDB: VND M MB: VND462.5 M

11 Interest Feedback C08–Cathay Premium Child Education Products launch Death or TPD: Waive all remaining Premium Graduation: payable if PO died and LA alive without TPD Attain Age % SA 1~ ~ ~ ~21 30 Maturity: 60% SA when LA attains 22-year-old Benefits of PO : Benefits of LA : Death or TPD: 1.2 x all premium paid Education: if LA alives Attain Age %SA ~21 20 Approved by MOF-ISV Oct 12, 2009

12 C08–CPCE Versus C04-CECE Products launch C08: SA: VND86.8 M LI’s DB: VND M LI’s TPDB: same as DB Max WOP:VND M Max Grad.B:VND230 M Edu+MB: VND138.9 M C04: SA: VND100 M LI’s DB: VND M LI’s TPDB: same as DB Max WOP:VND M Max Grad.B:VND240 M Edu+MB: VND150 M For a male, age 35, buy an insurance policy for his son at the 8 years old with the premium of VND9.286 mil/year. Interest feedback: DI=8%: VND M (+1.6%) DI=9%: VND23.82 M (+4.6%) Interest feedback: DI=8%: 0 DI=9%: VND5.5M

13 C09–Cathay Firmly Foundation Term Life Products launch Death or TPD Premium Paying Period = 10 yrs Policy Year Maturity Benefit: 1.1 times Sum of Annual Modal Premiums 100% SA + Unearne d premium Interest Feedback Approved by MOF-ISV Oct 12, 2009

14 C09–CFF TL Versus A01-Term with ROP Products launch Interest feedback: DI=8%: VND M (+29%) DI=9%: VND18.5 M (+44%) A01: SA: VND100 M D/TPDB: VND100 M PPDB: % of SA MB: VND54.3 M For a male, age 35, buy an insurance policy in 20 years with the premium of VND2.715 mil/year. C09: SA: VND M D/TPDB: VND M PPDB: N/A MB: VND59.73 M

15 A03 – Cathay Accidental Term Life-ROP New Basic Accidental Death / TPD Benefits: 100% SADeath Benefit (not due to accident): 100% ROPMaturity Benefit: 06 years PT : 110% Total Premiums Paid 10 years PT : 120% Total Premiums Paid 15 years PT : 130% Total Premiums Paid 20 years PT : 140% Total Premiums Paid

16 R04 – Medical Rider New Riders Hospitalization Indemnity: 1~30 days : 1.0 SA / per day 31~120 days : 1.5 SA / per day (max 120 days pa) Home Health Care: 1~120 days : 0.5 SA / per day In addition to Hospitalization Indemnity (max 120 days pa) BICU or ICU: 1~30 days : 1.0 SA / per day In addition to Hospitalization indemnity (max 30 days pa ) In-patient Surgical: 5.0 SA / per time Benefits :

17 R05 – Term Rider & R06 – Waiver Premium Rider New Riders Death or TPD: 100% SA + Unearned Premium Death or TPD: Waive all remaining premium Benefits of R05: Benefits of R06:

18 Type of credit Membership level FYCPFYP OriginalNewOriginalNew MDRT163,559,760134,549,580545,199,200448,498,600 Court of the Table 490,673,880403,648,7401,635,597,6001,345,495,800 Top of the Table 981,358, ,297,4803,271,195,2002,690,991,600 MDRT Requirement Modification Agent Regulation

19 PLANNING PROJECT NEXT MONTH   New Products Submission   Annual Plan 2010   New Branch Approval Process

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