1. 1 MONTHLY REPORT Jul., 2010 Planning Division Sam Lung 30 Jul. 2010

2. 2 Agenda  Market News  Product Sales  Introduction of Cathay Insurance Company  Introduction of Micro-insurance  Planning Project Next Month

3. 3 Market News  Won regulatory approval from the MOF to set up a subsidiary at July  Headquarter: HN, branch :HCM  Chanel: Bacasurrance + Agent Fubon Life (TW) join the Vietnam market

4. 4 Market News 2009 Taiwan FYP Fubon Group in VN 2008 Fubon Insurance 2008 Taipei Fubon Bank 2010 Fubon Life (expected)

5. 5 Market News More competitive-11+4 Life Insurer InsurerNationStock Type FubonTaiwan100% AvivaUKJV (Vietinbank) GeneraliItaly100% SumitomoJapanJV (Agribank)

6. 6 2010 Product Sales

7. 7 2010 Product Sales (1~7 wkm) Number of policy

8. 8 2010 Product Sales (1~7 wkm) First Premium Endowment product is our main force

9. 9 Core Products-C07&C08 Sales steadily growth # of policy FP

10. 10 Strategy Products-A03 7 wkm A03 competition RankBranchPFP 1HN-G5510.2 2DN-I519.0 3HN-H542.6  Standard: PFP ≥ 20M Bank interest high  attractive 

11. 11 2010 H2 Product Strategy Strategy Product Strategy Product Develop UL Bacasurrance Loan / Deposit Insurance Specific Group Specific Group  Low Income  Accident Endowment  Women  Women sickness  Low Income  Accident Endowment  Women  Women sickness

12. 12 Introduction of Cathay Insurance Company (Property & Casualty Insurance)

13. 13 Cathay Insurance Company 2007.12 HCMC Rep. Office 2009.12 Submit opening application 2010.4 Acquire Permission 2010.10 Acquire Operating License Headquarter : HCM (TWC 6~7F) Branch : HN (Bùi Thị Xuân) Headquarter : HCM (TWC 6~7F) Branch : HN (Bùi Thị Xuân)

14. 14 Development Strategy  Integrate with Cathay Life agent channel  Further develop Fire/Marine/Liability product Complement Life insurance product line Compulsory Insurance Accident Travel Motorcycle

15. 15 HP HN DN CL CT HCM BD DN Customer: one stop shopping Company: Resource share Win-Win Cathay Group Vietnam

16. 16 Introduction of Micro-insurance

17. 17 Poor Middle Class Top rich Wealth Micro- insurance Population What is Micro-insurance? Micro- Finance Micro- Finance Micro- Insurance Micro- Insurance Commercial insurance

18. 18 Characteristic of Micro-insurance Basic  Easy to understand! Low Premium  Affordable ! Economy disadvantage group Premium Insured Coverage Period Short-term  usually 1 year  Easy and simple!  Provide poor the basic needs when suffer accident

19. 19 Demand for Micro-insurance

20. 20 Difficulties Who to sale?  Agent  too costly  Cooperate with NGO (Non-Government Organization) How to sale? Low educated  Group learning by workshop Underwrite  No health check Claim  Simple documents Premium Collection  By Group Leader

21. 21 Sum assured Cathay: 1 year Accident product Micro-insurance in TW NTD 300,000 (VND 178M) PremiumPremium NTD 197 (VND 116,600)

22. 22 Micro-insurance in VN Manulife and Vietnam Women’s Union -7 Years Term insurance PremiumPremium Sum assured VND 300,000 VND 10M MaturityMaturity 100% Total Premium 2010Q1NBIn force # of policy6,36018,400 Premium1.4B Payment40M

23. 23 Future Development Legal framework and Government support Impact to commercial insurance  New tech-Mobile phone, Internet  Simplify the process

24. 24 Planning Project Next Month  Review Agent System  2011 Annual Target  2011 New Branch Assessment  New Product  Hai Phong Branch opening

25. 25 Thank you!! Planning Division Sam Lung