Monthly Report June, 2011 Planning Division Sam Lung 1 Jul. 2011

Agenda  Sales of Products  Cooperation with Non-Life  2011 Efficiency Bonus  Universal Life Insurance

Sale Performance(Q2)- Policy #  C11 is main force !!!

Unit: million VND Sale Performance(Q2)- First Premium

Unit: Million VND Average FP per case

DN HCM HP DNAI HN CT Jan FebMarApr May Jun Rider attached rate

Agenda  Sales of Products  Cooperation with Non-Life  2011 Efficiency Bonus  Universal Life Insurance

Sale Performance(2011/3~5) # of policy Premium (M) Compulsory - Motor Compulsory - Vehicle Comprehensive - Vehicle TripOthers  Compulsory Insurance is main force !!!

Sale Performance(2011/3~5) Premium (M) # of policy

BranchHCMHNDNCTDNAIHPTotal Pass Examination Registration Agent # 2011 target 7,891M

Agenda  Sales of Products  Cooperation with Non-Life  2011 Efficiency Bonus  Universal Life Insurance

Granting month = 0.7  Annual Operating Index (Y)  Performance Weight (W)  Annual Operating Index (Y) = Attained Rate of PFYP (2009/13~2010/12 wkm) Attained Rate of PFYP (2009/13~2010/12 wkm)  Performance Weight (W) Ranking Top 30% 30%~70%70%~ W Efficiency Bonus in 2010

Efficiency Bonus in 2011 Main Adjustment Head Quarter Staff  Whole Company Performance Branch Staff  Respective Branch Performance

Head Quarter  CAO  Assistant and above level Branch  CRD, RD  Branch Development Officer (RDM, RDO& BDO)  CS, Training center, GA and AA

Efficiency Bonus in 2011 Main Adjustment Attained Rate Of PFYP Persistency of 13 months QualityQuantity

Efficiency Bonus in 2011 Main Adjustment Annual Operating IndexWeightTarget Adjustment factor Attained Rate of PFYP70100%3.0 Persistency of 13 months3060%2.0

Granting month = 0.7  Annual Operating Index (Y)  Performance Weight (W)  Annual Operating Index (Y) = Annual Operating Score (X) ÷100 Annual Operating Score (X) ÷100 X =[70+(Attained Rate of PFYP –target)/3.0% X =[70+(Attained Rate of PFYP –target)/3.0% +30+(Persistency of 13 –target)/2.0%] +30+(Persistency of 13 –target)/2.0%] Efficiency Bonus in 2011  Annual Operating Index (Y) = Attained Rate of PFYP Attained Rate of PFYP

Agenda  Sales of Products  Cooperation with Non-Life  2011 Efficiency Bonus  Universal Life Insurance

What is UL Product? Investment Make Profit  Customer bear profit and loss  Transparent cost  Customer bear profit and loss  Transparent cost Insurance Protection  Insurer guarantee profit  Unclear cost  Insurer guarantee profit  Unclear cost Investment Product Dual Function + =

How Does UL Product Work? Premium (Regular, Top up) Net Premium Initial Cost Account Value Admin. Fee COI Withdraw Surrender Insurance Company Fund Management Death

Type of Death Benefit  Type A— Fix Amount ＝ Max {FA,AV}  Type B— Variable Amount ＝ FA + AV Face Amount Account Value Face Amount Risk Sum Assured

UL vs. Traditional  UL-Type A  Traditional Face Amount Surrender Value Surrender Reduce Paid up Extended Term Account Value 2 Account Value 1 Still effective if the account value is enough to pay for COI and fees

Cathay’s UL proposal Product Type Term (20yrs) Whole life Death/TPD l Type A: Max(SA,AV) l Type B: SA+AV l Type A: Max(SA,AV) l Type B: SA+AV Maturity/ Long Life 100% AV Maturity bonus YesNone

Planning Project Next Month New Product Design GA (General Agency) Assessment Review Agent System Planning Division Sam Lung