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MONTHLY REPORTMONTHLY REPORT April, 2010April, 2010

Planning Planning DivisionDivision

David LiuDavid Liu

7 May. 20107 May. 2010

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Market News

There world’s biggest insurance companies entered into Vietnam market:

Company Country cooperator Remarks

Generali Italy － the world’s 4th

Aviva UK Vietinbank the world’s 5th

Sumitomo Japan Agribank the Japan’s 4st

Three companies’ main channel should be bancassurance.

The competition of future market will get harder.

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Market News

Some Insurance Companies increased their own chartered capital in 2010

company Bao Viet Prudential Manulife Dai-ichi AIA

capital 1500B VND 75M USD 800B VND 72M USD 970B VND

company ACE Prevoir Great Eastern Korea VCLI

capital 38M USD 300B VND 600B VND 960B VND 600B VND

Note: Based on laws, the minimum capital of life insurance company should be 600B VND( about 38M USD).

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Market News

All companies are consistent with law( except Prevoir) ,the main reason of increasing capital is to continue to develop their business.

All companies are consistent with law( except Prevoir) ,the main reason of increasing capital is to continue to develop their business.

2010 capital increasing plan of insurance companies

Company Original capital After increasing

ACE 38M USD To 1000B VND

AIA 970B VND To 1035B VND

Bao Viet * 1500 VND More than 6700B VND

* : Expected to approve to MOF in quarter II/2010

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efficiency bonus

Analysis of promotion

product

bancassuarance product

Planning project next

month

Project this Month

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• Year-end Bonus

grant on January of each year • Retention plan policy

8% of the base salary each month

grant after 5 year service when you retire or leave

• Efficiency Bonus

grant on April of each year from 2011

Rank Excellent Good Average Fair Poor

Staff 1.3 1 0.7 0 0

EFFICIENCY BONUS

Company bonus

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• Reward excellent staffs• Encourage employee to contribute more and longer• “Individual performance bonus linked with

company's operating results”

EFFICIENCY BONUS

Intention

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1. On the service2. As the below table and other position recognized by company

Administrative Staff Assistant and above level

Agency StaffChief Agency Officer, Chinese Agency Officer, Regional Director

Note: Collectors and Branch Development Officer will be applied by other regulation.

EFFICIENCY BONUS

Eligibility

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EFFICIENCY BONUS

Efficiency Bonus

Granting month

of salary2010 Average

monthly salary=

Calculation

◎BOD have the final decision to adjust bonus

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Granting month of salary =

0.7 Annual Operating Index (Y)

Performance

Weight (W)

Calculation

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Annual Operating Index (Y):

Attained Rate of PFYP of whole company of 2010

From 2009/13 wkm to 2010/12 wkm

Performance Weight (W):

According to the ranking of staff 2010 performance rating

EFFICIENCY BONUS

Rating ranking

Top 30% 30%~70% After 70%~

Weight 1.45 1.30 1.00

Calculation

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Example

David ranked in Top 30%

Attainted rate of PFYP of 2010:100%.

Granting month of salary:

0.7 100% 1.45 = 1.015 (month)

EFFICIENCY BONUS

Rating ranking

Top 30% 30%~70% After 70%~

Weight 1.45 1.30 1.00

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efficiency bonus

Analysis of promotion

product

bancassuarance product

Planning project next

month

Project this Month

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Promotion-A03

Branch No. of Policy Total FP FP per policy

Ho Chi Minh-1 34 266.9 7.9

Ho Chi Minh-2 7 144.8 20.7

Ha Noi-1 8 121.8 15.2

Ha Noi-2 7 182.3 26.0

Ha Noi-3 3 14.9 5.0

Can Tho 6 29.8 5.0

Da Nang 11 61.8 5.6

Dong Nai 0 0 －total 76 822.3 10.8

HCM-1 sales the most A03.

HCM-2 、 HN-1 、 HN-2 FP per policy is better.HCM-1 sales the most A03.

HCM-2 、 HN-1 、 HN-2 FP per policy is better.

Unit: million VND

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Promotion-A03

0

50

100

150

200

250

300

350

400

4-1 4-2 4-3 4-4 5-1 5-2

premium

policy

Unit: million VND

Week of working month

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Promotion-A03

• Promotion Period: 5th working month• Mode: Original Performance FYP rate × 2

Original Promotion Period

PFYP rate 10% 20%

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Exciting Summer -C05 、 C06 、 C07

Branch HCM HNDN CT DO Total

Region 1 2 1 2 3

Status* Q T Q T Q T Q T Q T Q T Q T Q T Q T

C05 11 27 12 17 4 6 9 12 0 5 0 2 28 40 6 12 70 121

C06 2 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 3

C07 24 45 13 13 10 19 48 81 30 68 13 24 12 29 7 11 157 290

Total 37 75 25 30 14 25 57 93 30 73 13 26 40 69 13 23 229 414

Ratio 49% 83% 56% 61% 41% 50% 58% 57% 55%

We still have 45% contracts could be demanded to increase it’s FP to our target FP.

We still have 45% contracts could be demanded to increase it’s FP to our target FP.

*Status: Q = Qualifed Policy, T = Total Policy

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Exciting Summer -C05 、 C06 、 C07

FP ~1M 1M~2M 2M~3.5M Total

Monthly 4 0 0 4

Quaterly 6 5 2 13

Semi-Yearly 0 5 7 12

Yearly 0 5 17 22

Total 10 15 26 51

51% policies FP fall in 2M~3.5M.

57% policies mode are not annual payment.Keep introducing marketing activities for increasing FP

or suggest customer changing payment mode.

51% policies FP fall in 2M~3.5M.

57% policies mode are not annual payment.Keep introducing marketing activities for increasing FP

or suggest customer changing payment mode.

C05 & C06 (FP standard ： 3.5 M)

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Exciting Summer -C05 、 C06 、 C07

FP ~1M 1M~2M 2M~3M 3M~4M 4M~5M Total

Monthly 8 0 0 0 0 8

Quaterly 4 5 3 1 0 13

Semi-Yearly 2 2 8 3 0 15

Yearly 0 12 30 33 32 107

Total 14 19 41 37 32 143

C07 (FP standard ： 5 M)

48% policies FP fall in 3M~5M.

Keep introducing marketing activities for increasing FP48% policies FP fall in 3M~5M.

Keep introducing marketing activities for increasing FP

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efficiency bonus

Analysis of promotion

product

bancassuarance product

Planning project next

month

Project this Month

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Bancassurance Chanel

Year 2005 2006 2007 2008 2009H1

Share 43.2% 43.4% 37.7% 52.1% 63.6%

Country Italy Spain France Korea Malaysia HK China

Share 59% 70% 62% 47% 45% 40% 27%

Source: Taiwan insurancenstitute & LIMRA

Market share of bancassurance in Taiwan

Development in other countries

In Vietnam there are 6 insurance companies having bank partner to develop bancassurance.

Market share of bancassurance is less than 2%.There are many opportunities to develop bancassurance.

In Vietnam there are 6 insurance companies having bank partner to develop bancassurance.

Market share of bancassurance is less than 2%.There are many opportunities to develop bancassurance.

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Loan Insurance

Insurance term 2~15 years

Paying Period single

Interest rate 6.5%

LA age 18~ 65 years old

Benefits1. Death benefit: 100%DSA*2. Total Permanent & Disability (TPD)

benefit: 100%DSA*

Target:Housing borrower

Offer protection to housing borrowers

Process: Expected to be approved by MOF in June.

(*)DSA: Decreasing sum assured

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Time deposit Insurance

Insurance term 1 、 2 years

Paying Period single

Interest rate 6.5%

LA age 18~ 65 years old

Benefits1. Death benefit: 50%SA2. Accidental benefit: 150%SA

Target:Bank

Offer bank tool for attracting time depositor to save money

Process: In designing and pricing.

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efficiency bonus

Analysis of promotion

product

bancassuarance product

Planning project next

month

Project this Month

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New Product

Hai Phong setup preparation

Review Agent System

Review product Promotion

and marketing activity

Planning Project Next Month

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Thank you!!

Planning Planning DivisionDivision

David LiuDavid Liu