1. Actuaries in China 2 nd December 2011

2. 1 © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative, a Swiss entity. Grow with the industry First FSA First life FCAA First FIA First FCAS First non-life FCAA Premium income of insurance industry Unit: RMB Billion Data source: China Insurance Regulatory Commission

3. 2 © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative, a Swiss entity. Where are the actuaries? 55 life insurance companies, 25 of them are joint-ventures 5 pension companies 57 P&C insurance companies, 20 of them are joint-ventures Reinsurance companies Big Fours, TW and Milliman

4. 3 © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative, a Swiss entity. Typical actuarial hierarchy in a life insurance company Chief Actuary Sign off reports and product filing 3 years post-qualified experience + 8 years actuarial experience Need to pass a regulatory exam if not qualified under CAA system Actuarial reporting (5-20) Statutory reporting – solvency I framework Financial reporting – IFRS II framework Traditional embedded value reporting Others, e.g. par fund reporting Product development (5-20) Pricing Marketing Product management

5. 4 © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative, a Swiss entity. Typical actuarial hierarchy in a P&C insurance company Signing Actuary Sign off financial reports and product filing Qualified 3-5 years actuarial experience Actuarial (<10) Statutory reporting – solvency I framework Financial reporting – IFRS II framework Product pricing and filing Other reporting

6. 5 © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative, a Swiss entity. Typical career path – life actuary Actuarial student 0-5 years experience £5K - £10K Team leader 2-7 years experience £10K - £30K Department head 5-15 years experience £30K - £70K Chief actuary >10 years experience >£90K

7. 6 © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative, a Swiss entity. Typical career path – non-life actuary Actuarial student 0-3 years experience £5K - £10K Team leader 3-8 years experience £10K - £30K Department head 5-15 years experience £30K - £100K Signing actuary Top 3 only >12 years experience >£200K

8. Fulin Liang KPMG LLP (UK) fulin.liang@kpmg.co.uk www.kpmg.co.uk Please include below disclaimer on all external material in which the member firm provides information that may otherwise be relied on by the reader without further consultation: The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.