1 MONTHLY REPORT DECEMBER, 2009 Planning Division Kuo Chao (Ken) Hung 25 Dec. 2009

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MONTHLY REPORT DECEMBER, 2009MONTHLY REPORT DECEMBER, 2009

Planning DivisionPlanning Division

Kuo Chao (Ken) HunKuo Chao (Ken) Hungg

25 Dec. 200925 Dec. 2009

2

Agenda

Review of 2009

Environment and Challenge

Objective & Strategy of 2010

3

0.2%0.5%

2.6%

1.7% 1.7%1.8%

Market Share

Total 45.0 Billion VND(107% of 2009 Target)Total 45.0 Billion VND(107% of 2009 Target)

Agent Numbers

Performance of 2009

2,275

7,5349,017

12,971

10,977

12,062

08Q3 08Q4 09Q1 09Q2 09Q3 09Q4

FYP Performance

(Est.)

Unit: Million VND

2009 Review2009 Review

1081

1671

2141

2800

3264

1670

12821109

680863

282 370

08Q3 08Q4 09Q1 09Q2 09Q3 09Q4

AS↑

IA

Total 4,934 until 11th wm(204% of 2009 Target)Total 4,934 until 11th wm(204% of 2009 Target)

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FYP Share(%) Rank Growth(%)

PrudentiPrudentialal 629.6 31.3% 1 10%

Bao Bao VietViet

521.9 26.0% 2 49%

ManulifManulifee

221.9 11.0% 3 37%

AIAAIA 198.3 9.9% 4 98%

ACEACE 191.2 9.5% 5 25%

Dai-ichiDai-ichi 152.2 7.6% 6 28%

CathayCathay 34.2 1.7% 7 -

PrevoirPrevoir 33.7 1.7% 8 106%

KoreaKorea 20.0 1.0% 9 -G. G.

EasternEastern5.2 0.3% 10 -

TotalTotal 2,008.2 100% -- 36%

Unit: Billion VND(FYP of First 3 Quarters）

Note： Est. 2009 FYP is 45 B for Cathay and 2,492B for VN. Market Share is around 1.8%

2009 Review2009 ReviewPerformance of the Competitors

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2009 Agency Organization Analysis

30,32836,687

17,978

26,503 Prudential

Baoviet

11,953

19,86112,366

7,6305,511

583

5,4025,070 4,5652004 2005 2006 2007 2008 2009Q3

AIA

Daiichi

ACE

Manulife

Cathay

[18%

[16%

33%

47%

[-5%

-3%

2009Q3Growth

Rate

2 biggest companies keeps expanding

Group A

Group B

AIA and Daiichi significantly

Manulife & ACE a little


Note: Including Great Eastern and Korea, Agent Number achieves 91,810 until Note: Including Great Eastern and Korea, Agent Number achieves 91,810 until 2009Q32009Q3

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Cathay Product Design

Innovation Design & Against Inflation

Whole Life

Strategy Product

Saving & Education

Protection

Whole Life with Cash Benefit Whole Life with Cash Benefit Whole Life 111 with ROPWhole Life 111 with ROP

Single EndowmentSingle Endowment

Premium EndowmentPremium EndowmentPremium Child EducationPremium Child Education

Firmly Foundation Term LifeFirmly Foundation Term LifeCathay Accidental Medical RiderCathay Accidental Medical Rider


7

Compensation Scheme Modification

New Position

Promotion Project

Branch Branch Development Development

OfficerOfficer

Branch Branch Development Development

OfficerOfficer

Performance (NB, Collection…)Performance (NB, Collection…)Performance (NB, Collection…)Performance (NB, Collection…)

RecruitmentRecruitmentRecruitmentRecruitment

TrainingTrainingTrainingTraining

IAIASASSASIAIASASSAS

SASSASSMSMSASSASSMSM

↑↑Productivity & PerformanceProductivity & Performance↑↑Productivity & PerformanceProductivity & Performance

6~12 months rewards6~12 months rewards6~12 months rewards6~12 months rewards


8

Sales Promotion

For Agency

For Customer

International International SummitSummit


Avg. PFYP 30 million VND≧Avg. PFYP 30 million VND≧Avg. PFYP 30 million VND≧Avg. PFYP 30 million VND≧

Top 3Top 3Top 3Top 3

Trip to TaiwanTrip to TaiwanTrip to TaiwanTrip to Taiwan

C04 promotionC04 promotionC04 promotionC04 promotion

Trip to Hong KongTrip to Hong KongTrip to Hong KongTrip to Hong Kong

Happy Kids, Happy Kids, Lucky DrawLucky DrawHappy Kids, Happy Kids, Lucky DrawLucky Draw

Free backpackFree backpackFree backpackFree backpack


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New Branch Setup

Da NangDa Nang Can ThoCan Tho

• Time: 2009.4.20• PFYP: 3015 Million• Agents: 511

• Time: 2009.10.2• PFYP: 824 Million• Agents: 480

Expand service to Mid and South-West VietnamExpand service to Mid and South-West VietnamExpand service to Mid and South-West VietnamExpand service to Mid and South-West Vietnam

Complete fundamental development for 4 regional Complete fundamental development for 4 regional (North, Middle, South & Mekong Delta) (North, Middle, South & Mekong Delta)

Complete fundamental development for 4 regional Complete fundamental development for 4 regional (North, Middle, South & Mekong Delta) (North, Middle, South & Mekong Delta)


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Agenda

Review of 2009



11

Economic Environment

7.8% 6.5%

5.0%6.2%

8.5%8.2%

8.4%7.3%

7.1%

4%

7%

9%

2002 2003 2004 2005 2006 2007 2008 2009(E) 2010(E)

GDPGDPGrowthGrowth

InflationInflation

7.8%

11.0%

7.0%

23.0%

8.3%7.5%

8.3%

3.1%3.9%3%

8%

13%

18%

23%

2002 2003 2004 2005 2006 2007 2008 2009(E) 2010(E)

EnvironmeEnvironment & nt &

ChallengeChallenge

Economic seems recovering from financial Economic seems recovering from financial crisiscrisis

Still need to eye on high inflationStill need to eye on high inflation

Economic seems recovering from financial Economic seems recovering from financial crisiscrisis

Still need to eye on high inflationStill need to eye on high inflation

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Interest Level and Investment

HCM HCM IndexIndex

235.4 183.3 166.9 239.3 307.5

751.8927.0

315.6469.8

100

400

700

1,000

2001 2002 2003 2004 2005 2006 2007 2008 2009

11.30%

9.30%

16.60%

6%8%

10%12%14%16%

0703 0706 0709 0712 0803 0806 0809 0812 0903 0906 0909 0912

10-yr 10-yr BondBond

Avg. 8.5%Avg. 8.5%

Interest rate maintains at 10Interest rate maintains at 10 ～～ 11% 11% Stock market recovers from bottomStock market recovers from bottomInterest rate maintains at 10Interest rate maintains at 10 ～～ 11% 11% Stock market recovers from bottomStock market recovers from bottom


ChallengeChallenge

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New Company

Market Devlop-ment

Regulation

Market Condition Analysis

New Company ： Cathay, G.E. Korea

Prepared ： VCLI

Bancassurance

Universal Life

Market share relocation

Keeps Growing and Growing Higher

Product Innovation

Bank Cooperation

Complete Education and Training System

Agent Certification

Life Insurance Environment


ChallengeChallenge

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Challenges of 2010


ChallengeChallenge

Uncertainty of Interest RateUncertainty of Interest Rate

Challenge

Difficulties on Product Difficulties on Product Design and PricingDesign and Pricing

Affection

High InflationHigh Inflation

High Job OpportunityHigh Job Opportunity

Increase Operation CostIncrease Operation Cost

High Turnover Rate High Turnover Rate Education and Training Education and Training CostCost

15

Agenda

Review of 2009



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Five Year Plan and 2010 TargetTarget & Target & StrategyStrategy

2010 Target

Note:2009 is estimated, 2010 is target

9.845.0 80.2

2008 2009 2010

Agent # 40%

Market Share: 2.5%Unit: Billion

FYP78%

7.338.2

72.1

2008 2009 2010

5,071 7,1112,079

2008 2009 2010

PFYP89%

5 year Plan and StrategyFYP: 443 Billion VND

(CAGR: 53%)

Agent #: 12,000

Market Share: 10% and reach5th place

Expanding OrganizationExpanding OrganizationIA IA SAS and SAS and

ProductivityProductivityKeep Setting up New Keep Setting up New

BranchBranch

Innovation ProductInnovation Product

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2010 Business Objective

Recruit IA Aggressively

Organization Expansion & Organization Expansion &

Profession ConsolidationProfession Consolidation

Compensation & PromotionOrganization Development

Fit Vietnam Culture

Quality + QuantityQuality + Quantity Qualification & Promotion New Branch SetupObjectiveObjective

ThemeTheme

StrategyStrategy

IASASEASSM

Target & Target & StrategyStrategy

Personal Performance

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Compensation Scheme Modification (FYC Base)

Sales Channel DevelopmentTarget & Target & StrategyStrategy

One time commission payment

Easier for recruitment

Simplify the regulations, easier to understand

More time for education and supervising

1. Enhance the structure

2. Encourage IA to pursue promoted to SAS

Ma

na

ge

r Le

vel

1. Focus on performance2. Improve personal sales3. IA SAS

Ag

en

t

ExpansionExpansion

Manage-meManage-mentnt

Develop-meDevelop-mentnt

SalesSales

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Product StrategyTarget & Target & StrategyStrategy

Target on Special Group

Target on Special Group

Company’s Interest Risk Company’s Interest Risk

Customer’s Worries about Inflation

Customer’s Worries about Inflation

Accidental with ROP

High amount Medical Accidental with ROP

High amount Medical

Short Term Endowment

Universal Life Short Term Endowment

Universal Life

Increasing Sum Assured

Interest Feedback Increasing Sum Assured

Interest Feedback

Price Comparison

Price Comparison

Variation of Product Design

% of Rider Attachment Variation of Product Design

% of Rider Attachment

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Promotional ProgramTarget & Target & StrategyStrategy

For Agency

For Customer



Avg. PFYP 40 million VND≧Avg. PFYP 40 million VND≧Avg. PFYP 40 million VND≧Avg. PFYP 40 million VND≧

Top 5Top 5Top 5Top 5

Trip to Taiwan & JapanTrip to Taiwan & JapanTrip to Taiwan & JapanTrip to Taiwan & Japan

Combine Company Activity & Combine Company Activity & Local CultureLocal Culture

Combine Company Activity & Combine Company Activity & Local CultureLocal Culture

2010 World Cup2010 World Cup2010 World Cup2010 World CupQ2 & Q4Q2 & Q4Q2 & Q4Q2 & Q4

Year End PromotionYear End PromotionYear End PromotionYear End Promotion

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Branch Expansion

Ken HungKen Hung

Target & Target & StrategyStrategy

Dong NaiDong Nai Hai PhongHai Phong

• Time: 2010.4• Population: 2.3 M• GDP per capita:

1,239 USD

• Time: 2010.10• Population: 1.8M• GDP per capita:

1,294 USD

Premium Income and Expanding OrganizationPremium Income and Expanding Organization Premium Income and Expanding OrganizationPremium Income and Expanding Organization

Enhance the service at urban of 2 Biggest CityEnhance the service at urban of 2 Biggest CityEnhance the service at urban of 2 Biggest CityEnhance the service at urban of 2 Biggest City

Documents

1 MONTHLY REPORT DECEMBER, 2009 Planning Division Kuo Chao (Ken) Hung 25 Dec. 2009