1 MONTHLY REPORT Jun, 2010 Jun, 2010 Planning Division LTH Nhung 25 Jun. 2010

2  Market information updated  Analysis of productivity  Analysis of promotion and competition  C05-C06-C07 activity  Project team Engaged Project This Month

3 The 17 th CEO meeting  MOF proposed the 2010 target of Life insurance market as below: Market Info NB premiumVND 4.1 tril.Increase 36.21% Premium incomeVND tril.Increase 14.36% InvestmentVND 53.1 tril.Increase 11.55% ReserveVND 48.0 tril.Increase 14.06% Agents140k personsIncrease 10.24%  Encourage Insurers to develop non-traditional life insurance products like unit-linked, micro products to create rapid growth for life insurance, be careful in developing unit-linked product.

4 Other Market News   Bao Viet Insurance Corp has got approval from MOF to increase its chartered capital to VND1.5 trillion from VND1.0 trillion.  VCLI and Prevoir plan to launch Annuity insurance product.  Korea Life will open the 3 rd branch in Ha Noi and one more in Binh Duong by end of this year.  AIA has set up a GA in Ha Tinh and CS center model in Binh Dinh province.  Dai-Ichi has set up the 3 rd Business office in Ho Chi Minh and this is the 54 th office in the whole country. Market Info

5 Engaged Project This Month  Market information updated  Analysis of productivity  Analysis of promotion and competition  C05-C06-C07 activity  Project team

6 Growth rate of NB premium 2009 Productivity analysis InsurerAIABao Viet ManulifeDai i chiACE Life PrudentialAverage YOY93.9%46.0%39.4%38.6%33.5%25.4%43% Since new business premium in 2009 of AIA and Bao Viet grow rapidly, therefore we analyze their productivities and premium per policy to find the reason of growth.

7 Number of Agent Productivity analysis Growth rate of number agents 2009: Bao Viet: 19%, AIA ： 30% Average: 71% The growth rate of number agents of BV & AIA less than average growth rate in the life insurance market.

8 Productivity per agent Productivity analysis  Their agency’s productivity start to increase from 2008Q4 and clearly increase after 2009Q2.  Growth rate of 2009: Bao viet: 38%, AIA ： 76%, Average : 4% Productivity per agent= Premium/Agent

9 Number of policies per agent Productivity analysis  Their average number of policies per agent do not change so much.  Growth rate of the average number policies in 2009: Bao Viet: 0%, AIA ： -18%, Average: -13%

10 Premium per policy Productivity analysis  The average premium of new business of AIA increase sharply 156% from 2009Q1, Bao Viet start to increase from 2009Q2.  Growth rate in 2009: Bao Viet: 38%, AIA: 115%, Average : 21%  Premium per policy   productivity   Try to focus on high income customers to increase productivity

11 Engaged Project This Month  Market information updated  Analysis of productivity  Analysis of promotion and competition  C05-C06-C07 activity  Project team

12 Promotion Statistics results - A03 Unit: million VND Working Month 4th WM5th WM6th WMTotal No. of Policy First Premium ,081.5 Annualized Premium1, ,576.5  Because the sales of A03 is less than our expectation, we continuously extend promotion & design a competition program. A03 promotion

13 Promotion - A03 Promotion Period: during 7 th – 9 th working month Mode: Original Performance FYP rate × 2 OriginalPromotion Period PFYP rate10%20% A03 promotion

14 Promotion competition - A03 Competition Period: 7th working month 2010 Object: Agency Branch Qualification: in the competition period, total Performance First Premium of A03 ≥ 20M Achievement awardRank award ObjectsAll qualified branchesTop 3 qualified branches Award0.5M 2.5% × total PFP of A03 of whole company in competition period÷3 Note1: The Award is allotted to management funds Note2: PFP = Performance First Premium A03 promotion

15 Engaged Project This Month  Market information updated  Analysis of productivity  Analysis of promotion and competition  C05-C06-C07 activity  Project team

16 C05 、 C06 、 C07 Activity Summer Activity Q2 Campaign report: ProductNOPFP (VND mil)NOP qualified (*) C C C (*)Qualified policy: C05/C06  FP: 3.5M, C07  FP: 5M Drawing customer: Total 426 – Exclude Cathay agents/staffs/relatives HCMHNDANCTDON Drawing date: Jun 25 th,’10. Prizes: 1 st prize(1): Golden ball (30M); 2 nd prize(10): Adidas backpack compo (940k); 3 rd prize(20): Adidas soccer (395k).

17 Engaged Project This Month  Market information updated  Analysis of productivity  Analysis of promotion and competition  C05-C06-C07 activity  Project team

18 Project team establishment Project team Internal Survey Info of competitor Sales training 1.Not enough communication with Agency 2.Agency doesn’t like new products launch 3.Can’t respond the competition timely 1.Not enough communication with Agency 2.Agency doesn’t like new products launch 3.Can’t respond the competition timely Current training is more like introduction 1.Not enough communication with Agency 2.Agency doesn’t like new products launch 3.Can’t respond the competition timely 1.Not enough communication with Agency 2.Agency doesn’t like new products launch 3.Can’t respond the competition timely Establish a Project team to: 1.Survey information from market & Agency,  Make a suitable product design proposal. 2.Prepare better training material,  Increase sale skills.

19 Project team Workshop Participants Project team  CAO, RD, BM  Project team  Planning division  CAO, RD, BM  Project team  Planning division Frequency  Twice per year Purposes  Products discussion  Agency feedback  Products discussion  Agency feedback

20 Project team members Project team –BDO: Ms Nguyen Thi Thanh Thuy & Ms Nguyen Thi Hai Yen –Marketing: Ms Nguyen Thi Mai Anh & Mr Ho Trung Kien –Planning: Ms La Thi Hong Nhung –BDO: Ms Nguyen Thi Thanh Thuy & Ms Nguyen Thi Hai Yen –Marketing: Ms Nguyen Thi Mai Anh & Mr Ho Trung Kien –Planning: Ms La Thi Hong Nhung

21  UL New Product  GA model research  Review Agent System  New branch set up Planning Project Next Month

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