MONTHLY REPORT September, 2011

MONTHLY REPORTMONTHLY REPORT September, 2011September, 2011

Planning DivisionPlanning Division

David LiuDavid Liu

Sale performance analysis by

product

Bankassurnace survey

Adjustment of Compensation

Scheme

Planning project next month

Sale performance analysis by

product

Bankassurnace survey

Adjustment of Compensation

Scheme

Planning project next month

4

Unit: Billion VNDNew Business Premium(2011 H1)

Our NB premium and market share grow strongly

FYP Market share GrowthPrudential 595 29.9% 21.6%Bao Viet 448 22.5% 18.0%ACE Life 198 10.0% 29.8%Manulife 228 11.5% 28.7%Dai-ichi 202 10.1% 53.8%

AIA 189 9.5% 39.2%Cathay 55 2.8% 131.5%Korea 37 1.9% 0.5%

G.Eastern 22 1.1% 1,218%VCLI 8.2 0.4% 4,716%

Prevoir 6.8 0.3% -53.1%Fubon 0.256 0.0% --Total 1,990 28.9%

NB Premium - Cathay

C11 and C12 are still our main product

NB Premium - Main Product

NB Premium - Rider

NB premium of Rider grow strongly too.

  Endowment Investment TermWhole

lifeAnnuity rider

 Market 49.0% 39.5% 2.1% 0.5% 1.2% 7.6%

In the market, Endowment and investment are main product ； Rider rate is about 7.6%.

Product distribution

  Endowment Investment TermWhole

lifeAnnuity rider

 Cathay 87.4% 0.0% 4.5% 5.1% 0.0% 3.1%

Offer customer more protection

Premium per policy↑ salary ↑

Increase company’s profit

Rider attached rate by product

Our main product C11 、 C12 rider attached rate is not good and the trend is decreasing

Basic plan Rider Purpose

C12 R02 + R04 Provide perfect protection to children

C10, C11 R04 Increase medical protection

C09 R01+R03 Increase accident benefit

Package product

1. Design some package product Easier to sell2. Promotion activity for selling package product

Sale performance analysis by

product

Bankassurnace survey

Adjustment of Compensation

Scheme

Planning project next month

Name Vietnam bank cooperation

Prevoir ABbank, Sacombank, ACB, Habubank, Tienphongbank…

VCLI Vietcombank, SeAbank

Bankassurance company

Name 2006 2007 2008 2009 2010 2011H1

Prevoir 16,946 27,958 29,737 43,909 38,031 6,786

VCLI -- -- -- 8 2,138 8,235

Market ratio 1.3% 1.5% 1.5% 1.5% 1.1% 0.8%

Premium income

Market ratio is decreasing because insurance market grow over 30% and Prevoir has bad business performance.

1. Number of bank cooperation (sign contract or MOU)

Over 60% company has cooperated with 2~5 bank, and we just cooperate with Sacombank collecting premium and sign MOU contract with IVB.

2. Main reason causing slow development

Over 30% said that income is not attractive.Nearing 20% said that economic status is the main reason (high inflation + high pricing rate)

3. Objective customer

Mass affluent becomes objective customer in the future.

4. Potential product

Some product related with bank business.

5. Future development key

Customer behavior and macroeconomic status are most important factors.

6. Development Time (Backassurance FYP ratio reach 25%)

Over 80% think that at least need 6 years

Need more time to develop bankcassurance.

Bank doesn’t pay attention to bankassurance channel

Customer’s demand of bankassurance is low.

Conclusion

1. Making a good cooperation relationship now.2. To develop our Bancassurance operation ability continuously and wait the opportunity.

Sale performance analysis by

product

Bankassurnace survey

Adjustment of Compensation

Scheme

Planning project next month

23

2011.11th Working Month

NEW COMPENSATION SCHEME

24

2,040 2,180

2,400 2,606

2,800

1,786 1,977

1,500

1,684 1,900

723 834

1,034 1,056

1,168

HCM

HN

VIET NAM

GDP (USD)GDP (USD)

2006 2007 2008 2009 2010

2007 2008 2009 2010 2011

0

5

10

15

20

25

30

1/12/2006 1/12/2007 1/12/2008 1/12/2009 1/12/2010

23 %

CPI (%)CPI (%)

Economic grow strongly, inflation raise continuouslyResponsibility quota is too low

25

Increase Responsibility Quota

Adjust Promotion &Assessment

Standard

Adjust Agent and SM bonus

26

level SCAS CAS SEAS EAS SAS

PFYP 20M 12M 8M 5M 3.5M

Level SCAS CAS SEAS EAS SAS

PFYP 30M 20M 12M 8M 5M

Responsibility Quota

New

27

Promotion

Position

Serving time in previou

s position

PFYP

Period Average

SCAS 6 6 20M

CAS 6 6 12M

SEAS 3 3 8M

EAS 3 3 5M

SAS 3 3 3.5M

IA －

Promotion

Position

Serving time in previou

s position

PFYP

Period Average

SCAS 3 3 30M

CAS 3 3 20M

SEAS 3 3 12M

EAS 1 3 8M

SAS 1 3 5M

IA －

Personal PFYP≧5.0M Policy case reach at least 2

Personal PFYP≧5.0M Policy case reach at least 2

Personal PFYP 3.5M≧ Personal PFYP 3.5M≧

NewAgent Promotion Standard

28

Level SCAS CAS SEAS EAS SAS

FYC 8.0 4.8 3.2 2.0 1.4

FYC ratio

0~50% 15% 10% 5% 0% 0%

50~100% 25% 20% 15% 5% 0%

100~150% 35% 30% 25% 15% 5%

150%~ 40% 33% 28% 20% 10%

Level SCAS CAS SEAS EAS SAS

Standard FYC 12.0 8.0 4.8 3.2 2.0

FYC ratio

0~50% 30% 15% 5% 0% 0%

50~100% 35% 30% 15% 5% 0%

100~150% 40% 35% 30% 15% 5%

150%~ 50% 40% 33% 20% 10%

New

Agent meeting-requirement bonus

29

Promotion

Position Serving time in previous position

Organization SAS ;IA(SAS)

PFYP Period Average

SESM 1 year 10;(15,7) 6 55MESM 6 7;(10,5) 6 38MSSM 6 5;(8,3) 6 28MSM 6 (EAS↑) 2;(4,1) 6 11M

Promotion

Position Serving time in previous position

Organization SAS(EAS)

PFYP Period Average

SESM 6 16(4) 6 80MESM 6 12(3) 6 60MSSM 6 8(2) 6 40M

SM 3 (EAS↑) 4(1)6 20M3 30M

Personal PFYP 3.5M Excluding tracing ≧ PFYP 7.0M ≧Personal PFYP 3.5M Excluding tracing ≧ PFYP 7.0M ≧

Personal PFYP≧5.0M Excluding tracing PFYP ≧15.0M Personal PFYP≧5.0M Excluding tracing PFYP ≧15.0M

New

SM Promotion Standard

30

LevelSASIA

EAS SEAS CAS SCAS

Standard PFYP 3.5M 5.0M 8.0M 12.0M 20.0M

PFYP Ratio(Personally only)

0% 0 0 0 0 01~69% 0 0 100 200 400

70~99% 100 150 300 500 900100~149% 200 300 600 1000 1800150~199% 350 550 1000 1600 2800200~299% 500 800 1400 2200 4000

300%~ 750 1200 2100 3300 6000

LevelSASIA

EAS SEAS CAS SCAS

Standard PFYP 5.0M 8.0M 12.0M 20.0M 30.0M

PFYP Ratio(Personally only)

0% 0 0 0 0 01~69% 0 0 150 300 600

70~99% 150 250 450 850 1350100~149% 300 550 900 1600 2700150~199% 500 800 1500 2600 4200200~299% 600 1000 2100 3600 6000

300%~ 800 1300 3100 5500 9000

SM training bonus

New

31

Promotion

Position Serving time in previous position

Organization SAS;IA(SAS)

PFYP

Period Average

SBM 1 year 4 sub-unit40 ； 60(20) 6 400M

BM 1 year(SSM)

2 sub-unit20 ； 30(10) 6 200M

Promotion

Position Serving time in previous position

Organization SAS( EAS)

PFYP

Period Average

SBM 1 year 8 sub-unit60(20) 6 400M

BM 1 year(SSM)

4 sub-unit40(10) 6 200M

BM Promotion Standard

32

LevelSASIA

EAS SEAS CAS SCAS

Standard PFYP 3.5M 5.0M 8.0M 12.0M 20.0M

PFYP Ratio(Personally

only)

0% 0 0 0 0 01~69% 0 0 50 100 20070~99% 0 50 200 300 500

100~149% 200 250 300 500 800150~ 200 350 500 800 1400

LevelSASIA

EAS SEAS CAS SCAS

Standard PFYP 5.0M 8.0M 12.0M 20.0M 30.0M

PFYP Ratio(Personally

only)

0% 0 0 0 0 01~69% 0 0 80 160 30070~99% 0 100 300 500 750

100~149% 300 400 450 850 1200150~ 300 500 750 1350 2100

BM training bonus

New

33

LevelSASIA

EAS SEAS CAS SCAS

Standard PFYP 3.5M 5.0M 8.0M 12.0M 20.0M

PFYP Ratio(Personally

only)

0% 0 0 0 0 01~69% 0 0 0 5 1070~99% 0 5 10 20 40

100~149% 10 15 25 40 70150~ 10 25 40 65 120

LevelSASIA

EAS SEAS CAS SCAS

Standard PFYP 5.0M 8.0M 12.0M 20.0M 30.0M

PFYP Ratio(Personally

only)

0% 0 0 0 0 01~69% 0 0 0 5 1570~99% 0 5 15 30 60

100~149% 10 20 35 65 105150~ 10 40 60 105 180

BDO training bonus

New

34

New comer RecruiterLevel PFYP Standard Bonus PFYP Standard Bonus

IA5.0M 0.5M 5.0M 0.5M

10.5M 1.1M 10.5M 1.1M

SAS10.5M 1.2M 10.5M 1.2M15M 1.5M 15.0M 1.5M

EAS15M 1.5M - -24M 3.0M 24.0M 2.0M

New comer RecruiterLevel PFYP Standard Bonus PFYP Standard Bonus

IA10.5M 0.6M 10.5M 0.6M15M 1.2M 15.0M 1.2M

SAS15M 1.2M 15.0M 1.2M24M 2.0M 24.0M 2.0M

EAS24M 2.0M -36M 4.0M 36M 4.0M

New comer fails to meet policy case standard, no bonus to both ※policy case standard: Policy case reach at least 2

New comer fails to meet policy case standard, no bonus to both ※policy case standard: Policy case reach at least 2

Agent Bonus

New

35

SM fails to meet recruitment standard, get 80% bonus(Recruitment standard: 1 new comer and he/she sales 1 policy)

SM fails to meet recruitment standard, get 80% bonus(Recruitment standard: 1 new comer and he/she sales 1 policy)

Old New

PFYP (M) Bonus (M) PFYP (M) Bonus (M)PFYP ＜ 20 0 PFYP ＜ 30 0

20≦PFYP ＜ 30 3.2 30≦PFYP ＜ 40 430≦PFYP ＜ 40 4.5 40≦PFYP ＜ 60 540≦PFYP ＜ 60 6.0 60≦PFYP ＜ 80 7

60≦PFYP 8.0 80≦PFYP 9

1st ~6th working month1st ~6th working month

7th ~13th working month7th ~13th working month

Old New

PFYP (M) Bonus (M) PFYP (M) Bonus (M)

PFYP ＜ 30 0 PFYP ＜ 40 030≦PFYP ＜ 40 3 40≦PFYP ＜ 50 440≦PFYP ＜ 50 4 50≦PFYP ＜ 60 550≦PFYP ＜ 60 5 60≦PFYP ＜ 80 660≦PFYP ＜ 80 6 80≦PFYP ＜ 100 8

80≦PFYP 8 100≦PFYP 10

New

SM Bonus

36

Item level period Content

Responsibility quota and salary

All －Form 2011.11th working monthResponsibility quota and salary calculation apply new compensation scheme

Assessment All －※Form 2011.11th working month Assessment apply new compensation scheme※Next assessment time is 2012.1st working month

Promotion All 1 wkm※Promotion in 2011.12th wkm apply old scheme※Promotion after 2011.13th wkm apply new

scheme

Reward regulation

Agent 1 wkm

※New comer is promoted in 2011.12th wkm, his/her bonus is higher amount between new and old reward regulation.※Other case apply new reward regulation

SM － Form 2011.11th working monthSM reward apply new reward regulation.

Transitional Method

Sale performance analysis by

product

Bankassurnace survey

Adjustment of Compensation

Scheme

Planning project next month

New Product Launch

Performance Incentive

Activity

Related work of New Agency

Compensation System

Thank you

Planning DivisionPlanning Division

David LiuDavid Liu