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

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

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

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

5. Unit: Million VND Average FP per case

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

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

8. Sale Performance(2011/3~5) # of policy Premium (M) Compulsory - Motor Compulsory - Vehicle Comprehensive - Vehicle TripOthers  Compulsory Insurance is main force !!! 96 64 146 10 17

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

10. BranchHCMHNDNCTDNAIHPTotal Pass Examination19416838532594572 Registration16316720532487515 Agent # 2011 target 7,891M

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

12. 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%~ W1.451.301.00 Efficiency Bonus in 2010

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

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

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

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

17. 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

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

19. 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 + =

20. 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

21. 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

22. 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

23. 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

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