1 Cathay Life Insurance Ltd. (Vietnam) 29 Aug 20081Planning

2 Cathay Life Insurance Ltd. (Vietnam) 29 Aug Agenda (A) Engaged Project this month: Products submission status. Market information update. Overview of Life Insurance Market (Jan ~ Jun 2008) Policy issued analysis. Premium discount program. (B) Planning Project next month: New products submission.Planning

3 Cathay Life Insurance Ltd. (Vietnam) 29 Aug (I) Product Submission Status: A02(Single Endowment), R01(Personal Accident Rider) and R02(Child Accident Rider) already got internal approval. G01(Group Term Life), G02(Group Accident Rider) and G03(Group Medical Rider) – in process. Declaration Interest Rate: ENGAGED PROJECT THIS MONTH MonthJulyAugustSeptember* Rate11% * estimatedPlanning

4 Cathay Life Insurance Ltd. (Vietnam) 29 Aug ENGAGED PROJECT THIS MONTH (II) Market information: Insured AIA renames AIG Life Vietnam. A new product launched by ACE Life “Life Long Financial Plan Benefits Elderly Citizens”. Vietnam Life insurance market forecast to grow 15% in Planning

5 Cathay Life Insurance Ltd. (Vietnam) 29 Aug ENGAGED PROJECT THIS MONTH (III) Overview of Life Insurance Market (Jan ~ Jun 2008) Premium Income of all in-force polices (in billions) CompanyPremium IncomeMarket Share Prudential (1,816)  2, % Bao Viet (1,612)  1, % Manulife (446)  % Others (552)  % Total (4,426)  5, % (premium income in Jan ~ Jun 2007)Planning

6 Cathay Life Insurance Ltd. (Vietnam) 29 Aug ENGAGED PROJECT THIS MONTH (III) Overview of Life Insurance Market (Jan ~ Jun 2008) Number of new polices (riders included) CompanyNB in Jan ~ JunIn-force Prudential (192,924)  260,388 2,991,262 Bao Viet (262,044)  200,215 3,568,805 AIG (47,613)  42, ,969 Others (60,710)  97,305 1,744,894 Total (563,291)  600,765 9,249,930 (number of new polices in Jan ~ Jun 2007)Planning

7 Cathay Life Insurance Ltd. (Vietnam) 29 Aug ENGAGED PROJECT THIS MONTH (III) Overview of Life Insurance Market (Jan ~ Jun 2008) Total number of life insurers’ agents was more than 65,000 The average insurance amount per new policies was 41.8 millions in 2008 (30.2 million in 2007). The best selling product was variety of endowment insurances. The investment products (universal life and unit-link) contributed 16.7% of NB premium income.Planning

8 Cathay Life Insurance Ltd. (Vietnam) 29 Aug ENGAGED PROJECT THIS MONTH (IV) Policy Issued Analysis:( 4 th Jul ~ 26 th Aug) By product # of Policy Issued ProductJul.Aug.Total A (25.5%) C01527 (2.0%) C (3.1%) C (36.8%) C (32.6%) Total Planning

9 Cathay Life Insurance Ltd. (Vietnam) 29 Aug ENGAGED PROJECT THIS MONTH (IV) Policy Issued Analysis :( 4 th Jul ~ 26 th Aug) By sex of Insured AgeMF 0~ ~ ~ ~ Total By Payment Mode Payment mode# of Policy Single1 (0.3%) Monthly50 (14.2%) Quarterly64 (18.1%) Semi Annually53 (15.0%) Annually185 (52.4%)Planning

10 Cathay Life Insurance Ltd. (Vietnam) 29 Aug ENGAGED PROJECT THIS MONTH (IV) Policy Issued Analysis :( 4 th Jul ~ 26 th Aug) Prod Total Annualized Prem. (in million) Avg. Annualized Prem. Per Policy (in million) A C C C (710.3)5.9 (5.5) C Tot (1598.4)4.7 (4.5) (excluded annualized prem. >= 30 millions)Planning

11 Cathay Life Insurance Ltd. (Vietnam) 29 Aug ENGAGED PROJECT THIS MONTH (IV) Policy Issued Analysis :( 4 th Jul ~ 26 th Aug) Prod Total Sum Assured ( in million) Avg. Sum Assured Per Policy (in million) A017, C C C035, C0410, Tot24, Planning

12 Cathay Life Insurance Ltd. (Vietnam) 29 Aug ENGAGED PROJECT THIS MONTH (V) Premium Discount Program: Discount for internal staffs CompanyTraditional Prod.Unit-Link Prod. Prudential50% FYP 50% / 25% / 25% ANP (only first 3 years) ManulifeAll commissions Dai-ichi50% FYPN/A AIG1 st year commissionN/APlanning

13 Cathay Life Insurance Ltd. (Vietnam) 29 Aug ENGAGED PROJECT THIS MONTH (V) Premium Discount Program: Discount for high “Premium” (Dai-ichi Life) Annual premiumRate (% of premium) < 2.5M0% 2.5M ~ 4.0M3% 4.0M~7.0M4% 7.0M~10.0M5% 10.0M~14.0M6% >=14.0M7%Planning

14 Cathay Life Insurance Ltd. (Vietnam) 29 Aug ENGAGED PROJECT THIS MONTH (V) Premium Discount Program: Discount for high “sum assured” (Prudential) Sum Assured Rate (% of sum assured) Education PlanAnticipated Prod. <60M0% 60M~120M0.3%0.4% 120M~180M0.45%0.6% >=180M0.6%0.8%Planning

15 Cathay Life Insurance Ltd. (Vietnam) 29 Aug PLANING PROJECT NEXT MONTH (I) List of Products will be submitted for approval: PriorityProductsSchedule 1 Group Term Life Insurance (G01) Group Accident Rider (G02) Sep. 2 Group Medical Rider (G03) Critical Illness Waiver Rider (R03) Waiver Rider (R04) Personal Medical Rider (R05) Oct.Planning

16 Cathay Life Insurance Ltd. (Vietnam) 29 Aug Thank you! Planning