1. 1 MONTHLY REPORT May, 2011 May, 2011 Planning Division David Liu 27 May. 2011

2. 2  Market news  Analysis of 2011 Q1 Market Situation  Promotion Campaign- Happy Anniversary  Adjustment of compensation scheme  Planning project next month Project this Month

3. 3  Market news  Analysis of 2011 Q1 Market Situation  Promotion Campaign- Happy Anniversary  Adjustment of compensation scheme  Planning project next month Project this Month

4. 4 Market News Prudential Vietnam has just opened a new general agency office in Tan Binh District, HCMC, widening its network to 200 units nationwide including customer service centers, branch offices and general agency and business offices. So far, Prudential Vietnam is serving customers via multiple channels such as nationwide offices, direct sales agents, hot lines, website and via its partners like Vietcombank, Sacombank, VP Bank, An Binh Bank, MB Bank. Prudential Vietnam fortify branch network

5. 5 Market News ACE Life open the second representative office in HCM city in the 6 years ACE Life anniversary in Vietnam (4/5/2005- 4/5/2011).On May 10, the new head office in Hanoi is opened. ACE Life has 11 representative office, trade office and outlet in Vietnam’s big provinces and cities. ACE Life open new outlet and representative office in HCM and Hanoi

6. 6 Market News The Vietnam Commercial Joint Stock Bank for Foreign Trade (Vietcombank-VCB) officially offered the financial services on VCB-iB@nking with Korea Life Insurance Co Ltd. Accordingly, the customers can make online payment for periodical insurance fees, automatic payment r making advanced payment for Korea Life in a quick, safe method with no bank charges. Vietcombank cooperates with Korea Life

7. 7  Market news  Analysis of 2011 Q1 Market Situation  Promotion Campaign- Happy Anniversary  Adjustment of compensation scheme  Planning project next month Project this Month

8. 8 Analysis of 2011Q1 Market situation  Our market share of NB premium is rank 7 and increase a lot (1.9%  2.7%) NB Premium and number of agents Company NB Premium RankMarket share(%) Growth rate (vs 2010 Q1) Number of agents Prudential259,3811(1)30.9(31.8)17%85,157(2,618) Bao Viet205,1802(2)24.4(20.9)23%21,618(1,619) Manulife100,3163(5)11.9(10.7)29%9,067(160) Dai-ichi79,3124(3)9.4(11.1)48%13,227(-545) AIA78,9225(6)9.4(9.4)36%14,668(-626) ACE Life64,0546(4)7.6(11.0)28%7,496(-666) Cathay23,0137(7)2.7(1.9)124%8,792(670) Korea life 18,1958(8)2.2(1.9)-12%6,324(926) Great Eastern5,3119(10)0.6(0.2)320%291(111) VCLI3,27410(11)0.4(0.1)10183%-- Prevoir2,56611(9)0.3(0.9)-46%-- Total839,524--26%166,690(4,267)

9. 9 Analysis of 2011Q1 Market situation  Our market share of total premium is rank 8, we should keep increasing our renewal premium. Total Premium Company Total Premium Renewal Premium RankMarket Share(%) Growth rate (vs 2010 Q1) Prudential 1,250,455991,0741(1)38.4(41.4)11% Bao Viet979,052773,8722(2)30.1(24.7)5% Manulife372,907272,5913(3)11.4(11.3)21% Dai - chi204,959125,6475(4)6.3(7.7)24% AIA241,067162,1454(5)7.4(7.5)29% ACE Life136,85472,8006(6)4.2(5.6)39% Cathay28,3265,3138(7)0.9(0.7)117% Korea Life29,00110,8067(8)0.9(0.6)40% Great Eastern5,7804699(10)0.2(0.1)281% VCLI3,274-11(11)0.1(0.0)10183% Prevoir5,3542,78810(9)0.2(0.3)-34% Total3,257,0292,417,50514%

10. 10 Analysis of 2011Q1 Market situation  Our premium per policy is closed to market level Our productivity ↑, but it is still less than market level Productivity index CompanyProductivity(premium)Productivity(case)Premium per policy Prudential 3.1(3.5)0.7(1.0)4.2 (3.6) Bao Viet 9.9(8.9)1.3(1.6)7.7 (5.7) Manulife 11.2(11.6)1.5(2.6)7.5 (4.5) Dai - chi 5.9(4.6)0.8(0.8)7.6 (6.1) AIA 5.3(5.1)0.9(0.9)5.6 (5.8) ACE Life 8.2(7.9)1.3(1.2)6.3 (6.3) Cathay2.7(1.8)0.4(0.4)7.2 (4.6) Korea Life 3.1(7.2)0.5(1.0)6.4 (7.1) Great Eastern 22.6(1.5)1.3(0.2)17.9 (9.8) VCLI -- 1.0 (0.2) Prevoir -- 0.3 (0.7) Total 5.1(5.2)0.9(1.1)5.5 (4.5)

11. 11 Analysis of 2011Q1 Market situation  The product distribution in the market does not change obviously  The main product are still endowment and investment product EndowmentinvestmentTermWhole lifeAnnuityrider 2011Q149.2%40.0%2.8%0.5%0.1%7.5% 201048.2%42.6%2.5%0.6%0.1%5.9% Product distribution

12. 12  Market news  Analysis of 2011 Q1 Market Situation  Promotion Campaign- Happy Anniversary  Adjustment of compensation scheme  Planning project next month Project this Month

13. 13 Promotion Campaign-Happy Anniversary Campaign period: 2011/6/16~2011/8/10 (7 th ~8 th working month of 2011) Participant: Customers and Agents who sign the agency contract, include: IA, SAS↑, SM, Pre-BM, BM Participant Product: All Cathay Product (except Single Premium Product) In order to encourage customer buy more rider and increase premium per policy  Promotion Activity: Lucky Draw

14. 14 Promotion Campaign-Happy Anniversary Participant qualification: Customer buy 1 policy+1 rider and First Premium≥6 M Mark1:The Policy must be underwritten and accepted before 2011/8/22. Mark2:The Policy owner or insured could not be the Cathay agent, staff or their relatives.

15. 15 Promotion Campaign-Happy Anniversary Participant method: 1.If customers meet the participant qualification, they and their agents could have 1 lucky draw separately. 2.More Chance PartFirst premiumRider StandardEvery 2M in excessEvery extra rider More chance11

16. 16 Promotion Campaign-Happy Anniversary Example : Customer buy 1 policy + 2 riders, first premium 10M Drawing chance:  4 drawing chance PartQualificationFirst premiumRider Case 1 policy + 2 rider FP=10M 2 rider Standard 1 policy + 1rider FP≥6M 1 rider chance1 2 (Every 2M in excess ) 1 (Every extra rider )

17. 17 Promotion Campaign-Happy Anniversary Customer prizes Prize structureItem Amount 1 st prize Notebook DELL INSPIRON 1 2 nd prize Microwave oven ELECTROLUX 5 3 rd prize Fruit juicer PANASONIC 25

18. 18 Promotion Campaign-Happy Anniversary Prize structureCash PrizeAmount 1 st prize2,500,000 VND5 2 nd prize500,000 VND25 Agent prizes

19. 19 Promotion Campaign-Happy Anniversary Drawing ceremony date CustomersAgents 2011/8/26 (Monthly meeting) 2011/8/25 (CRD meeting)

20. 20  Market news  Analysis of 2011 Q1 Market Situation  Promotion Campaign- Happy Anniversary  Adjustment of compensation scheme  Planning project next month Project this Month

21. 21 Adjustment of compensation scheme In order to improve organization development, company set up some tracing reward: 1.Agent: 5% FYC tracing bonus 2.Organization: Mark: Tracing PFYP, number of people of the organization, training bonus Sales unit:316  620, Agency Branch office: 32  50 from March 2010 ~ March 2011 Unit-increase tracing WKMratio 1~6100% 7~1375% 14~1950% 20~2625% Agency Branch office-increase tracing Yearratio 1100% 275% 350% 425%

22. 22 Adjustment of compensation scheme Some mother-units have low productivity after increasing a sub-unit, But mother-units still could pass the assessment by sub-unit tracing PFYP in tracing period: 1.Mother-unit is easy to lapse after tracing period 2.This unit-increase could not lead our total PFYP↑ Sales Unit(SSM) PFYP: 20M Mother-unit(SSM) PFYP: 0M Sub-unit PFYP: 20M Pass

23. 23 Adjustment of compensation scheme 1.Sales unit (All levels): During the assessment and promotion period, the average monthly PFYP of the Sales Unit (exclude sub- unit tracing PFYP) shall reach 7 million New standard of assessment and promotion Mother-Unit(SSM) PFYP: 10M Sub-Unit PFYP: 10M Pass Fail Mother-Unit(SSM) PFYP: 0M Sub-Unit PFYP: 20M

24. 24 Adjustment of compensation scheme 2.Agency Branch Office ( All levels): During the assessment and promotion period, the average monthly PFYP of the Branch office (exclude sub-branch tracing PFYP) shall reach 100 million 3.Shorten assessment time of SM Revise Semi-yearly assessment to quarterly assessment Original: 1 st & 7 th working month After revision: 1 st, 4 th, 7 th, 10 th working month

25. 25 Adjustment of compensation scheme After revision, the first assessment time: 1.Sales unit: 2011.10 th working month Assessment period: 2011.7 th ~9 th working month 2.Agency Branch Office: 2012.1 st working month Assessment period 2011.7 th ~13 th working month

26. 26  Market news  Analysis of 2011 Q1 Market Situation  Promotion Campaign- Happy Anniversary  Adjustment of compensation scheme  Planning project next month Project this Month

27. 27  New Product Design Planning Project Next Month Woman Product Woman Product Provide protection for female: Marriage, female disease, and saving Provide protection for female: Marriage, female disease, and saving Critical Illness Critical Illness Provide Protection for critical illness Endowment with cash Endowment with cash Provide different investment + protection choice Provide different investment + protection choice

28. 28  GA (General Agency) Assessment  Review Agent System  Promotion Campaign – Happy Anniversary Planning Project Next Month