Monthly reportPlanning Div.

William LiaoWilliam Liao

30 Mar. 201230 Mar. 2012

Contents

Market News 1

2011Q4 insurance market2

Persistency3

UL Launching Program4

Rider Promotion5

Agent Recruit Survey6

Project Next Month7

Contents

Market News 1

2011Q4 insurance market2

Persistency3

UL Launching Program4

Rider Promotion5

Agent Recruit Survey6

Project Next Month7

Market news 2012: MOF will inspect 13 insurance enterprises

In 2011, MOF had inspected some insurance companies and punished 6 insurance companies:

Company Fine Mistake

Life insurance

ACE Life 70M  Not split owner’s fund and policyholder’s fund

AIA Life 60M Signing agents contract with whom are not have enough specified requirements

Non life

ACE insurance 190M 120M for BOD without Bachelor degree

70M for reserve not enough for compensation

Grouppama 70M Open representative office without MOF agreement

Bảo Việt 140M Paying to support agents to sell Compulsory insurance for motorized vehicle owner's civil liability

Oil insurance 60M Make a mistake of premium table about motor vehicle

compulsory insurance

Ensure our company to compliance with the law.

Contents

Market News 1

2011Q4 insurance market2

Persistency3

UL Launching Program4

Rider Promotion5

Agent Recruit Survey6

Project Next Month7

2011Q4 insurance market

Units: Billion VND

Company

Q4 Q1~Q4

Premium % Growth rate Premium % Rank Growth rate

Prudential 397 27.7% 6.1% 1,313 28.4% 1 13.4%

Bảo Việt 317 22.1% 29.5% 1,030 22.3% 2 24.8%

Manulife 167 11.7% 47.8% 537 11.6% 3 38.1%

Dai - ichi 166 11.6% -0.9% 499 10.8% 4 23.2%

ACE Life 143 10.0% -26.1% 462 10.0% 5 5.2%

AIA 127 8.9% 16.7% 444 9.6% 6 29.2%

Cathay 35 2.4% 20.5% 129 2.8% 7 82.2%

Korea 29 2.0% 46.2% 88 1.9% 8 23.6%

G. Eastern 22 1.5% 399.9% 60 1.3% 9 705.4%

Total 1,432 100% 12.0% 4,618 100% 23.0%

New business premium

Market growth rate is decline in Q4 Market is not change so much, top 6 insurance company hold over 90%.

The number of agent & productivity

Company Number of agent RankProductivity by premium (M)

Productivity by policy

Premium per policy (M)

Prudential 102,130 1 4.0 1.0 3.9Bao Viet 23,725 2 13.2 1.3 10.2Manulife 13,009 6 13.3 2.2 6.0Dai-ichi 13,822 5 10.9 1.3 8.1AIA 8,684 7 8.3 1.2 6.7ACE life 15,306 4 16.6 2.1 7.8Cathay 16,942 3 2.3 0.3 6.8Korea 7,743 8 4.0 0.6 7.3G. Eastern 822 9 30.2 1.7 18.2

Total 202,956 7.2 1.3 5.6

2011Q4 insurance market

Number of agent ,but productivity

2011 Whole life Term Endowment Annuity Investment Rider

Prudential 0.7% 5.3% 79.2% 2.3% 12.4%

Bao Viet 0.2% 42.8% 2.8% 50.6% 3.6%

Manulife 1.6% 83.4% 11.3% 3.7%

Dai-ichi 16.9% 68.5% 14.6%

AIA 1.9% 2.8% 14.6% 69.4% 11.3%

ACE life 1.2% 97.2% 1.6%

Cathay 6.0% 3.4% 88.0% 2.6%

Korea 53.0% 42.3% 4.7%

G. Eastern 0.1% 0.2% 97.5% 0.5% 1.6%

Total 0.6% 2.9% 49.8% 0.6% 38.3% 7.8%

Rate of product

Endowment and investment are still main product type.

2011Q4 insurance market

Endowment and investment are still main product. The rate of attach rider is lower than market.

Contents

Market News 1

2011Q4 insurance market2

Persistency3

UL Launching Program4

Rider Promotion5

Agent Recruit Survey6

Project Next Month7

Persistency Analysis

Agent (Self-Purchase) Policies Persistency:

Overall persistency has not improved from last month

The gap between agent and non-agent policies is bigger compared to last month. Agent policy persistency is still below 10%

Persistency

19.4%

Proportion of Agent policy

Month 201112 201201 201202 201203 201204 201205

Proportion 29.2% 36.4% 42.6% 37.3% 36.9% 31.2%

Agent Policy

Persistency

11.2% 6.5% 4.5% 17.2% 33.0% 56.7%

Proportion of agent policy is decline in the next 3 months.

Persistency

Persistency Forecast

Value Month 201110 201111 201112 201201 201202 201203 201204 201205

Effective Month 201007 201008 201009 201010 201011 201012 201101 201102

DATA OF 2011-10 31.2% 35.3% 44.8% 59.9%

DATA OF 2011-11 30.6% 30.0% 45.4% 64.1

%

DATA OF 2011-12 24.2% 29.2% 43.1

% 71.4%

DATA OF 2012-01 23.7% 25.8% 48.1% 82.4%

DATA OF 2012-02 19.4% 28.2% 49.1% 66.9%

Forecast 31.2% 30.6% 24.2% 23.7% 19.4

% 24.0% 26.8% 23.3%

Persistency until 201202. We may experience a slight increase in persistency from next month.

Persistency

Suggestions

More education courses

Effects of new productMonitor the efficiency more closely

Persistency

Contents

Market News 1

2011Q4 insurance market2

Persistency3

UL Launching Program4

Rider Promotion5

Agent Recruit Survey6

Project Next Month7

Sale permit – Flow chart

•worked for Cathay in 7 WKMs•EAS or above

•16 UL trainers•One-time make-up test for whom fail

3

working days

3

working days

Qualified AgentsQualified Agents

Training Course (24 hours)

Training Course (24 hours)

Test

Test

Sales qualificationsSales qualifications

Fail

Pass

976 agents (calculated to 3/22)

•All qualified agents shall get qualification before 5 wkm

UL Launching Program

UL Launching Seminar

Apr 5 Apr 6 Apr 9 Apr 10 Apr 11 Apr 12

HCM Dnai HP HN CT DN

Purpose

Time and Location

Contents:

Announce launching of ULReview of UL productsAnnounce of promotions

Our ApproachUL ConceptUL Product IntroductionSales Track & Cases Study

UL Launching Program

Contents

Market News 1

2011Q4 insurance market2

Persistency3

UL Launching Program4

Rider Promotion5

Agent Recruit Survey6

Project Next Month7

Advantages

Company

Agent

Customer

High Profit

High Commission

High Benefit

Rider Promotion

2011 Sale SituationUnits: Thousands VND

company Rate of rider Premium per rider

Prudential 12.4% 314

Bao Viet 3.6% 175

Manulife 3.7% 276

Dai-ichi 14.6% 568

AIA 11.3% 357

ACE life 1.6% 417

Cathay 2.6% 344

Korea 4.7% 336

G. Eastern 1.6% 573

Total 7.8% 323

Rider Promotion

Our premium per rider is above the market.Rate of rider is lower than the market.

Promotion Content

ScheduleTime:

Product:

Object:

Content:

Increasing

2.5 times

1.2 times

Rider Promotion

22/3 ~ 13/6/2012 (2012 Q2: 4th ~ 6th wkm)

R01 & R03whole agency unit

FYCFYP

Contents

Market News 1

2011Q4 insurance market2

Persistency3

UL Launching Program4

Rider Promotion5

Agent Recruit Survey6

Project Next Month7

Survey purpose & method

1.To know agents’ opinion toward our recruitment system

2.To modify our recruitment system

1.To know attitude toward our agent recruitment system2.Collect opinion on key aspect influencing agent recruitment

Online Questionnaire

AllBM

Why?

How?

Agent Recruit Survey

Schedule

19/4-25/4 26/4-02/05

Schedule

5/4-11/4 12/4-18/429/3-4/4

Give notice

Deep interview

1. Analyze outcome2.Complete questions for deep interview

Report

Online survey

Agent Recruit Survey

Contents

Market News 1

2011Q4 insurance market2

Persistency3

UL Launching Program4

Rider Promotion5

Agent Recruit Survey6

Project Next Month7

1.

Project next month

3.

Adjustment of compensation scheme

Follow UL launching & analyze sale situation2.

Follow new products in MOF

William Liao