Monthly Report January, 2011 Planning Division Kuo Chao (Ken) Hung 14 Jan. 2011

Agenda  Review of 2010  Environment and Challenge  Objective & Strategy of 2011

Market Review Market FYP 32% Unit: Trillion Cathay FYP Unit: Million 53% Market Agent # Cathay Agent # 31% 30% Review of 2010 Life insurance Market still grows, we grow More!!!

FYPShare(%)RankGrowth(%)agents # Prudential %124.5%86,711 Bao Viet %211.3%19,766 Manulife %324.2%8,743 ACE %428.3%7,392 Dai-ichi %556.0%14,962 AIA %618.3%12,947 Korea %7156.0%4,406 Cathay %822.3%4,752 Prevoir %9-31.0%-- G. Eastern % %174 VCLI %11N/A-- Total 2, %--23.4%159,853 Unit: Billion VND 2010 Q1~Q3 Note ： 2010 FYP is 70.8 B for Cathay and 3,859 B (e) for VN. Market Share: 1.8% (e) Performance of the Competitors Review of 2010

Product Sales Review of 2010 Market Cathay  Endowment is leading, but Investment is increasing!  Endowment and Education are the main product! Rider 3.3% Endowment 62.1% Education 15.8% Whole Life 13.0% Term Life 5.8%

Major Project - New Branch Setup Review of 2010 Hai Phong Dong Nai  wkm  4 Branch  515 Agents Hai Phong  wkm  3 Branch  506 Agents  Strengthen the operating of South and North VN  Expand Service area and Premium Income 

Major Project - Product Design Review of 2010 Increase Product Depth, Develop new channel Increase coverage Short-term Endowment Strategy Product Term Loan Protection Bancca- surance Project team establishment  Survey information from Market & Agency  Make suitable product  Prepare better training material  Improve sale skills  Medical Rider  Term Rider

Major Project – Sales Promotion Review of 2010 Stimulate sales, Increase activities Incentive program Sales Promotion FP per Policy  Annual Payment   International Summit (13~3wkm)  MDRT  A03 (7wkm)  Golden Tree Lucky Draw (11~12wkm) Customer Campaign Exciting Summer (Q2)

Major Project – Compensation Scheme Review of 2010 Fit Vietnam culture, Encourage Promotion to SAS  FYC Base  Easier to understand, Easier to recruit  Raise full time salary  Encourage IA to pursue promotion to SAS IA Recruit  Promote to SAS 

Agenda  Review of 2010  Environment and Challenge  Objective & Strategy of 2011

GDPgrowth GDP per Capita Inflationrate Economic Environment Environment & Challenge Unit: USD Economic recover and keeps growing ! People become richer ! Inflation needs to be under controlled !

10y bond HCM Stock Index Exchangerate Economic Environment Environment & Challenge Unit: % Interest rate still high ! Stock market risky ! FX rate gores depreciation ! ,498

New company join Life Insurance Environment Environment & Challenge Customer Preference change Operating mode evolution  Bancassurance  General Agency (GA) Insurer # %27%39%  ? ? Investment product %

Challenges of 2011 Environment & Challenge Uncertainty of Interest Rate Uncertainty of Interest Rate Challenge Difficulties on Product Design and Pricing Affection High Inflation Competition   Increase Operation Cost  Purchase willingness  Sale and recruit are going to be tough

Agenda  Review of 2010  Environment and Challenge  Objective & Strategy of 2011

Annual Target 2011 Target Agent # Market Share: 2.2% Unit: Billion FYP PFYP , %  53.8%  Key point Target & Strategy  Recruit more proactively  Strengthen agent ability  Increase Product attractively  KYC  Customer and Agent  Cooperate with Non-Life 2011~2015 Plan  Market share: 7%   Agent: over 10,000  Break-even: before 2015

16 Strategy of Planning Div. Agent System CustomerManagement ProductDevelopment Target & Strategy  Recruitment & Training  Promotion  Meet demand  Differentiating  Advertising  Interaction  Customer Service

Agent System Target & Strategy Recruit- ment & Training Increase recruit incentive Recruiter IA Reward Strengthen BDO system Promotion Promotion Reward IA  SAS  EAS Encourage promote to SM EAS  SM (NSS project)

Product Development Target & Strategy Meet Demand Anti-inflation Wealth Management  Increasing Sum Assured  Interest Feedback  UL  Investment + Protection  Annuity  Retirement Plan  Education Product  Whole life + Cash Coupon  Cover 3 generation Life plan for Children Differentiat ing Diversified Product Product with variety features Cooperate with Non-life Contact customer with simple product Advertising Product Advertisements on TV

Customer Management Target & Strategy Interaction Sales Incentive Program Encourage agent to sale MORE!! Customer Campaign  Add topics between Agent  Customer  Spread Cathay brand image Customer Service Customer Service Competition: Product  Service Discover the need, make it Unique  Satisfaction  Ken Hung VIP Customer Exclusive privilege, Create chance for Re-purchasing