1. 1 Monthly Report July 2010 2010.07.30 Investment,Finance and Accounting Cathay Life (VN)

2. 2 I.This month activities II.Finance market news III.Vietnam Interest rate and FX trend IV.Business Result V.Next month plan Outline

3. 3 1.This month activities  Internal and External Accounting report (P&L, Tax reports.Q2 P&L report  New Cash management at Customer service to comply with internal audit report  The Budget performance: Alert departments has been over against budget. Approval report must be prepared accordingly.  The innovation & incentive program: Program has launched, encouraging the idea contribution from our staff  The Profit center project: the 6-month report has been released out to BOD, in which investment income has been allocated by branch office. Accounting & Finance

4. 4 1.This month activities  Enhance cash yield: Control amount/period of time deposits and seek possibility to earn higher interest rate  New counterparties for TD: BIDV 、 ACB 、 and Sacombank have been approved!  Bonds management: Update market value/accrued interest periodically and seek opportunity to invest in other bonds  Market watch: Follow up the evolution of financial market and seek opportunity to create other asset class Investment

5. II. Finance Market News 5 I.Goldman Sachs bank and a penalty of $550 mil **History - G.S was accused of misstating and omitting facts in disclosure documents for “collateralized debt obligation (CDO)” product in 2007 by Securities and Exchange Commission (SEC ) *Causes - CDO is a deal between G.S and Paulson & Co., a Hedge fund. Paulson created the CDOs equity in 2007 and G.S sold to investors

6. II. Finance Market News 6 I.Goldman Sachs bank and a penalty of $550 mil **History - Beside Paulson bet against this equity, it will get money if price reducing of this equity -> Paulson’s interest were sharply conflicting - However G.S misrepresented to investors that ACA (an independent selection agent) had reviewed the mortgage package underlying the credit default obligations, and failed to disclose about Paulson & Co., roles

7. II. Finance Market News 7 I.Goldman Sachs bank and a penalty of $550 mil **Result - Paulson & Co., earned USD 1bil - G.S was paid USD 15 mil in the deal with Paulson - G.S has to pay a penalty USD 550mil in which:  USD100 mil pay to ABN Amro  USD150 mil pay to IKB Deutche Industriebank AG  USD 300 mil to US government

8. II. Finance Market News 8

9. 9 II.AIG * New CEO in Asia - AIA New CEO Mr. Mark Tucker replace for Mr. Mark Wilson - AIA has been looking for investors to separate from AIG ** A Compensation USD725 mil - AIG agreed to pay USD 725mil to settle a long-running securities fraud lawsuit led by 3 Ohio public pension funds. - The lawsuit began Oct 2004, involved allegations that AIG engaged in accounting fraud, bid-rigging and stock price manipulation from Oct 1999 to April 2005

10. III. The Market: Interest Rates Average Rate (for enterprises) Group of BanksCurrencyDemand3M6 M12 M SOCBs VND2.8011.10 10.80 USD0.251.00 JSCBs VND3.3011.1011.2010.90 USD0.651.00  Interest rate is still on the down trend. -According to an agreement from Banking Association, banks committed to set deposit rate to a maximum 11.2%.  (Consequence) Help banks improve their profit structure, however some banks plan to slash lending rate as well.  (Outlook) Since the government is still trying to reduce the deposit interest rate, the deposit rate would be even lower in the future. 10

11. III. The Market: FX Rates Trend of USD/VND  3.4% 17,491- 18544  5.4% 17,034- 17961  (Reason) the rumor is that a scarcity of dollars would happen because of maturing loans.  (Outlook) the rumor is going on and the government is trying to improve the trade deficit. VND may keep depreciating slightly. Notes: time series up to 21/7/2010  VND depreciated a little bit But generally speaking, it’s still stable. -Official rate : 18544; -Unofficial rate :around 19074; -Black market: 19210 11

12. IV. Business Result –Profit and Loss MarAprMayJunYTD Revenues 15,98616,80316,22317,84298,693 Expenses 18,22318,30719,12518,580104,704 Profits (2,236)(1,504)(2,902)(738)(6,011) Budget 2010 (1,957)(1,916)(1,375)(2,277)(10,296) Actual / Budget 2010 58% 12

13. IV. Business Result-Gross Premium MarAprMayJunYTD Actual 2010 4,9886,2005,4897,32232,059 Budget 2010 7,2157,4198,0638,40343,687 Actual 2009 2,2963,0562,3943,60421,183 Actual / Budget 2010 Actual 2010 / Actual 2009 73% 151% 13

14. IV. Business Result-Sale Expenses MarAprMayJunYTD Actual 2010 4,6985,1255,7094,98927,523 Budget 2010 4,7654,3954,1655,14426,239 Actual 2009 1,3264,1273,1054,58518,867 Actual / Budget 2010 Actual 2010 / Actual 2009 105% 146% 14

15. IV. Business Result-Administrative Expenses MarAprMayJunYTD Actual 2010 8,7968,9449,6988,547 52,569 Budget 2010 9,5279,4159,3579,413 55,895 Actual 2009 8,7207,2578,7058,013 45,635 Actual / Budget 2010 Actual 2010 / Actual 2009 94% 115% 15

16. IV. Business Result-Profit and Loss by location Items HCMHNDNCTDNAI Gross Premium10.0515.532.403.080.99 Direct expenses8.6812.871.942.160.80 Indirect expenses16.2221.154.295.142.23 Sale exp. Ratio109%115%122%101%144% Mngt exp. Ratio76%53%82%64%80% Ratio expense/sale (sua) % Sale exp: Sale exp /FYP %Mngt exp: Admin. exp/ total revenue 16

17. IV. Business Result-Profit and Loss by location ItemsH.O.HCMHNDNCTDNAI Gross Premium - 10.0515.532.403.080.99 Investment64.480.751.170.130.080.02 Total revenues64.4810.8016.702.533.161.01 Direct expenses-8.6812.871.942.160.80 Indirect expenses31.2316.2221.154.295.142.23 Total expenses31.2324.9034.026.237.303.03 Profits33.25-14.1-17.3-3.7-4.1-2.02 Sale exp. ratio-109%115%122%101%144% Mngt exp. ratio48%76%53%82%64%80% 17

18. Next month plan  Survey one more bank for salary payment  The Budget performance: Pay attention to monitor the 2010 budget as some departments has been over against budget.  The innovation & incentive program: Following up and update to BOD the staff contributions.  Universal life product: Set-up the accounting process  Budget 2011 : Working on the plan and the template. Accounting & Finance 18

19. Next month plan  Assessing the possibility to buy new bonds.  Keep following the progress of fund management company with ICC.  Keep following up financial market and hold monthly topic presentation regarding investment issue  Keep enhancing cash yield. Investment 19

20. 20 The End