1. Reporter: Agency Planning Dept. Agency Planning Dept. Stanley Chao Stanley Chao 28.08.2009 28.08.2009

2. Agenda 1 A Performance B Plan for Bancassurance C Organization strategy Review & Revision

3. Performance Premium & PFYP 8th WKM 2009(1~8) PremPFYPPremPFYP ViteNam 3.6 3.0 (72%) 28.4 20.2 (79%) ( ) is percentage of Vietnamese Target 2 Billion

4. 3 Performance 3 Region PFYP HN HCM DN 1.9 1.7 0.4 1.1 0.8

5. Performance Headcount SMFull-Time agents Total Pre-BMSMSEASEASSAS AS Viet- Nam 5711015781539321345 3917 Part-Time agents(IA): 2572 Total Agents: 3917 4 167 SM246 SAS↑+

6. 5 Performance 3 Region Headcount(full-time) HN HCM DN 765 334 328 167

7. 6 Performance AS attaining Quota(%) HCM DN HN 54% 41% 39% 34% 30% 28%

8. Agenda 7 A Performance B Plan for Bancassurance C Organization strategy Review & Revision

9. 8 Plan for Bancassurance Marketing Divison Agency Planning Agency Administration TrainingPR Support Negotiate with Bank Mother Company support 1 experience staff & Trainer:Ho Trung Kien transfer to agency planning dept. Training For Bank staff Planning & Analysis Agency Planning support

10. 9 Plan for Bancassurance 14.09.2009 Start Cooperation Bank IVB & Vietin (planning) Product Short-term & mortgage ins. Market Share Europe-70% ； Taiwan-55%

11. Agenda 10 A Performance B Plan for Bancassurance C Organization strategy Review & Revision

12. Organization Strategy 11 2008-07 Strategy Planning Open & running 2009-08

13. IA AS Organization Strategy 12 Vietnamese insurance marketCathaylife SM BM Agent(IA) SM BM Part-time Full-time CAS/SEAS/ EAS/SAS/AS recruit Introduce & recruitment bonus Apply higher salary for full-time agents ( financail support/recruitment bonus/training allowance…) Training agents well  professional & good service Expericence Financial support

14. AS resignation ↑ rate↑ Empty Headcount Poor SM (experiecne) Performance 13 Problem 1 Problem 2 Problem 3 Organization Strategy

15. 14 Problem 1- Poor Pre-BM/SM(experience) performance  Lots of SM/Pre-BM resign During 2008 recruit 138 SM & Pre-BM 2009.08, remain 52 (37%) → after end financial support, remain ??? →lots of SM/Pre-BM are new (always pay higher financial support) SM: 5M 4M 3M 2M ; Pre-BM: 8M 7M 6M 5M  SM/Pre-BM don’t sell policy Only 35% SM/Pre-BM sell policy ( include IA policy) → How managers teach their agents?? No performance,we still pay Financial support Organization Strategy

16. AS & IA make money  AS get more (recruit benefit) 15 Problem 2- Empty Headcount Theory Company & AS & IA Win Have 2 case ASIA AS sell 1 policy IA sell 1 policy 1 case Cnt Current Empty-Headcount 2 agents→1 agent Just 1 case AS AS sell 1 policy but IA submit and return bonus to AS AS:1 case  AS get more But IA get 0 IA 1.Who need to be responsible for policy ?? 2.Renewal premium bonus when IA terminate?? Brother/sister Parents Wife/husband Organization Strategy

17. 16 Problem 3- AS resignation rate ↑ Only 9% AS still be full-time after 1 year How can be professional and service well SEAS↑ or SM ↑ 07/200803/2009 1269 Total recruit 1269 AS Effective:243 (19%) 07/2009 648 AS didn’t sell any policy Waste Training allowance 1M Recruit 7 th month23% 13 th month9%

18. 17 Organization Strategy

19. 18 New Rule Probation period for experience SM SM Financial support is related to performance →EX: <15M:0 15M~20M:3M 20M~30M:4M >=30M:5M →during 2 month attain 15M PFYP and 2 AS SM from AS also can get financial support →Same as above Organization Strategy

20. 19 New Rule Reduce Pre-BM financial support and higher assessment Ask SM/Pre-BM sell policy →warning letter/meeting/can not promote →8M,7M,6M,6M  6M,4.5M,3M,1.5M Organization Strategy

21. 20 讓顧客達到滿足 能夠將商品做搭配協調 Revise Management Revise Compensation Cancel AS position New AS delay to register→cancel training allowance Roll-Call strictly → absentance↑,demote to IA Agents’ new rule Higher AS salary and reduce recruit benefit Revise AS promotion & assessment rule →excludes IA performance All agents starting from IA IA (AS)→ SAS → EAS →…. (don’t pay training allowance →move to others ) × 01-2010 08~13/2009 07~08/2009 Organization Strategy

22. Conclusion Low performance High perfomance performance Resource Re-Assign All agents get same salary promotion Demote/terminate 21 Before 07-2009After 08-2009 Higher performance get higher salary Salary High Low