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Monthly report Planning Div.

Monthly report Planning Div.

Chiang, Chih Hsiang 2012.5.31Chiang, Chih

Hsiang 2012.5.31

Agenda

Agenda

State Bank cuts deposit interest rate:a)13, March 13%

11, April 12%

25, May 11%

b)About 9 ~10 % at the end of this year

c) Inflation rate will likely decline to 10%

Market News

2011

Deposit 14% 9%~10%

Inflation 19% 10%

2012

Market News

AVI forecasts insurance market keep growth this year

a) Collect VND46.4 trillion premiums.

b) Grow up 24% from one year earlier.

Non-life Life28% 18%

AVI: Association of Vietnamese Insurers

201013.8 trillion

Life Insurance Market ： Total premium

201116.0 trillion

201218.9 trillion

16% 18%

Agenda

2012 Q1 Insurance Market: New business premium

Company 2012 Q1Premium 2012Q1 (2011) Rank Growth rate

Prudential 239.5 25.3% (28.4%) 1 -7.7%Bảo Việt 226.1 23.9% (22.3%) 2 10.2%Manulife 131.7 13.9% (11.6%) 3 31.3%Dai - ichi 104.4 11.0% (10.8%) 4 31.6%

AIA 84.4 8.9% (9.6%) 5 6.9%ACE Life 77.0 8.1% (10.0%) 6 20.2%

Korea 27.7 2.9% (1.9%) 7 52.1%G.E 19.1 2.0% (1.3%) 8 260.4%

Cathay 18.0 1.9% (2.8%) 9 -22.0%VCLI 10.2 1.1% (0.6%) 10 210.6%

Prevoir 5.0 0.5% (0.6%) 11 96.3%Fubon 1.5 0.2% (0.0%) 12 --

Generali 0.9 0.1% (0.0%) 13 --VietinAviva 0.2 0.0% -- 14 --

Total 945.6 100% (100%) 12.6%

Cathay market share is decreasing from 2.8% to 1.9%

Unit: Billions VND

2012 Q1 Insurance Market: Total premium

Cathay market share is decreasing from 1.1% to 0.7%

Unit: Billions VND

Company2012 Q1

Premium Renewal 2012 Q1 (2011 ) Rank Growth ratePrudential 1,308.2 1,068.7 37.1% (37.5%) 1 4.6%Bảo Việt 941.7 715.6 26.7% (28.2%) 2 -3.8%Manulife 440.3 308.6 12.5% (11.1%) 3 18.1%Dai - ichi 264.5 160.1 7.5% (7.3%) 5 29.0%

AIA 276.4 192.0 7.8% (7.5%) 4 14.7%ACE Life 180.4 103.4 5.1% (5.7%) 6 31.9%

Korea 40.0 12.3 1.1% (0.8%) 7 37.8%G.E 21.9 2.8 0.6% (0.4%) 9 278.3%

Cathay 26.1 8.1 0.7% (1.1%) 8 -8.0%VCLI 10.7 0.5 0.3% (0.2%) 10 227.1%

Prevoir 9.7 4.7 0.3% (0.2%) 11 81.8%Fubon 1.5 - 0.0% (0.0%) 12 --

Generali 0.9 - 0.0% (0.0%) 13 --VietinAviva 0.2 - 0.0% -- 14 --

Total 3,522.5 2,576.9 100% (100%) 8.2%

2012 Q1 Insurance Market: agent & productivity

Cathay’s Productivity is too low.

(): 2011Q1

Company Number agent RankProductivity(M)(premium per

agent)Productivity

(case per agent)

Productivity(M)(Premium per

case)

Prudential 101,624 (85,157) 1 2.4 (3.1) 0.6 (0.7) 4.1 (4.2)Bao Viet 25,037 (21,618) 2 9.3 (9.9) 1.4 (1.3) 6.6 (7.7)Manulife 13,115 (9,067) 5 10.1 (11.2) 1.4 (1.5) 7.2 (7.5)Dai-ichi 16,471 (13,227) 3 6.9 (5.9) 0.9 (0.8) 7.5 (7.6)

AIA 15,306 (14,668) 4 5.5 (5.3) 0.9 (0.9) 6.4 (5.6)ACE life 8,182 (7,496) 8 9.1 (8.2) 1.1 (1.3) 8.0 (6.3)Korea 8,303 (6,324) 7 3.4 (3.1) 0.5 (0.5) 7.5 (6.4)G.E 970 (291) 10 21.4 (22.6) 1.3 (1.3) 17.0 (17.9)

Cathay 11,741 (8,792) 6 1.3 (2.7) 0.2 (0.4) 7.3 (7.2)VCLI -- -- - -- -- --  -- 2.0 (1)

Prevoir -- -- - -- -- --  -- 0.3 (0.3)Fubon 1,285 -- 9 1.5 -- 0.5 -- 3.0 --

Generali 10 -- 11 -- -- -- -- 93.5 --VietinAviva -- -- - -- -- -- -- 1.4 --

Total 202,044 (166,690) 4.7 (5.1) 0.9 (0.9) 5.4 (5.5)

2012 Q1 Insurance Market: rate of product

Endowment products have the highest rate. Cathay’s Rider is lower than the market.

Item Whole life Term Endowment Annuity Investment Rider

Cathay 6.6% 4.0% 86.1%     3.3%

Market 0.5% 3.4% 53.6% 0.2% 34.7% 7.7%

Agenda

RIDER PROMOTION CONTENT

Time: 22/3~13/6/2012 (2012.Q2:4th~6th working month)

Product: R01 & R03

Content:FYP x 2.5FYC x 1.2

Rider Promotion

R01&R03 Sales review in 4th~5th working month

Rider Promotion

(*) ： R01 & R03 case / total case(**) ： R01 & R03 premium / total premium

Branch HCM HN DN CT Dnai HP Total

AttachedRate (*)

2012.5th 61.1% 14.6% 26.9% 24.4% 26.0% 54.5% 29.3%

2012.4th 62.2% 5.0% 51.7% 11.9% 23.4% 66.7% 24.3%

2011.10th ~ 2012.3rd 55.0% 9.7% 45.3% 17.5% 28.7% 29.2% 24.7%

PremiumDistribution

(**)

2012.5th 2.9% 0.8% 1.2% 1.0% 1.2% 2.9% 1.4%

2012.4th 2.4% 0.2% 2.2% 0.5% 1.1% 3.5% 1.2%

2011.10th ~ 2012.3rd 2.2% 0.4% 2.2% 0.7% 1.3% 1.3% 1.1%

Attached Rate increases 5% in 5th wkm Premium Distribution increases a little 0.2% in 5th wkm HN and CT have higher increase rate, but still are too low

All Riders Sales review in 4th~5th working month

Rider Promotion

(*) ： rider case / total case(**) ： rider premium / total premium

Branch HCM HN DN CT Dnai HP Total

AttachedRate (*)

2012.5th 77.8% 47.4% 36.5% 26.8% 47.5% 63.6% 49.8%

2012.4th 77.8% 36.7% 79.3% 13.4% 47.7% 81.0% 46.8%

2011.10th ~ 2012.3rd 66.5% 36.7% 65.7% 24.4% 44.3% 46.6% 43.1%

PremiumDistribution

(**)

2012.5th 6.1% 3.6% 3.8% 1.1% 3.8% 7.7% 4.1%

2012.4th 6.0% 2.2% 5.8% 0.7% 3.7% 7.4% 3.6%

2011.10th ~ 2012.3rd 5.2% 3.2% 7.3% 1.8% 3.7% 5.3% 3.9%

Attached Rate of 5th wkm increases 3.0% in 5th wkm Premium Distribution increases 0.5% in 5th wkm HCM has the highest Rider Attached rate

UL Test in 4th~5th working month

UL Launching

Branch HCM HN DN CT Dnai HP Total

Candidate Population

145 368 47 98 174 144 976

Pass Population

61 92 9 23 34 2 221

Pass Rate 42% 25% 19% 23% 20% 1% 23%

Sale review in 5th working month

Total pass rate is only 23%.

Product FYP (million) Percentage

Traditional  3,288.3 99% 

Universal 32.6   1%

Total   3,320.9 100%

Sales period of UL is short, so sales is not good.

Agenda

Profit Center

Each branch is treated as a separate business

Each branch is responsible for making its own profit

Recruiting Training Selling Service

Increase Revenue

Decrease CostMake profit

Branch operating phase

Property Classification Item

Revenue Operating income First year premium Renewal premium

Cost

Operating expense

Agent salary House rental Maintenance fee Staff salary and others

Insurance cost Claim Surrender value Reserve

Head office apportioned expense

Personnel expense House rental Maintenance fee

Branch operating phase

HN, DN, CT, HP

HCM DNAI

Key Improvements for each Branch

BranchEnhance

SalesEnhance

PersistencyDecrease

Cost

Agenda

Project Next Month

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