1 cathay life insurance ltd. (vietnam) 29 aug 20081planning

1Cathay Life Insurance Ltd. (Vietnam)

29 Aug 20081

PlanningPlanning


29 Aug 20082

Agenda(A) Engaged Project this month:

• Products submission status.

• Market information update.

• Overview of Life Insurance Market (Jan ~ Jun 2008)

• Policy issued analysis.

• Premium discount program.

(B) Planning Project next month:

• New products submission.

PlanningPlanning


29 Aug 20083

(I) Product Submission Status:

• A02(Single Endowment), R01(Personal Accident Rider) and R02(Child Accident Rider) already got internal approval.

• G01(Group Term Life), G02(Group Accident Rider) and G03(Group Medical Rider) – in process.

• Declaration Interest Rate:

ENGAGED PROJECT THIS MONTH

Month July August September*Rate 11% 11% 11%

* estimated

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29 Aug 20084


(II) Market information:• Insured AIA renames AIG Life Vietnam.

• A new product launched by ACE Life “Life Long Financial Plan Benefits Elderly Citizens”.

• Vietnam Life insurance market forecast to grow 15% in 2008.

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29 Aug 20085


(III) Overview of Life Insurance Market (Jan ~ Jun 2008)

Premium Income of all in-force polices (in billions)

Company Premium Income Market Share

Prudential (1,816)2,051 40.8%

Bao Viet (1,612)1,709 34.0%

Manulife (446)508 10.1%

Others (552)759 15.1%

Total (4,426)5,027 100%

(premium income in Jan ~ Jun 2007)

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29 Aug 20086



Number of new polices (riders included)

Company NB in Jan ~ Jun In-force

Prudential (192,924)260,388 2,991,262

Bao Viet (262,044)200,215 3,568,805

AIG (47,613)42,857 944,969

Others (60,710)97,305 1,744,894

Total (563,291)600,765 9,249,930

(number of new polices in Jan ~ Jun 2007)

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29 Aug 20087



• Total number of life insurers’ agents was more than 65,000

• The average insurance amount per new policies was 41.8 millions in 2008 (30.2 million in 2007).

• The best selling product was variety of endowment insurances.

• The investment products (universal life and unit-link) contributed 16.7% of NB premium income.

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29 Aug 20088


(IV) Policy Issued Analysis:( 4th Jul ~ 26th Aug)

By product

# of Policy IssuedProduct Jul. Aug. Total

A01 46 44 90 (25.5%)C01 5 2 7 (2.0%)C02 1 10 11 (3.1%)C03 43 87 130 (36.8%)C04 47 68 115 (32.6%)

Total 142 211 353

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29 Aug 20089


(IV) Policy Issued Analysis :( 4th Jul ~ 26th Aug)

By sex of InsuredAge M F0~9 62 61

10~19 13 1320~29 40 5830~39 22 3140+ 17 36

Total 154 199

By Payment ModePayment mode # of Policy

Single 1 (0.3%)Monthly 50 (14.2%)Quarterly 64 (18.1%)

Semi Annually 53 (15.0%)Annually 185 (52.4%)

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29 Aug 200810



Prod Total Annualized Prem. (in million)

Avg. Annualized Prem. Per Policy (in

million)A01 217.4 2.4C01 44.1 6.3C02 43.9 4.0C03 772.0 (710.3) 5.9 (5.5)C04 582.7 5.1Tot 1660.1 (1598.4) 4.7 (4.5)

(excluded annualized prem. >= 30 millions)

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29 Aug 200811



ProdTotal Sum Assured

( in million)Avg. Sum Assured

Per Policy (in million)A01 7,994 88.8

C01 260 37.1C02 580 52.7C03 5,076 39.0C04 10,148 88.2Tot 24,058 68.2

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29 Aug 200812


(V) Premium Discount Program:

Discount for internal staffs

Company Traditional Prod. Unit-Link Prod.

Prudential 50% FYP50% / 25% / 25% ANP

(only first 3 years)Manulife All commissions All commissionsDai-ichi 50% FYP N/A

AIG 1st year commission N/A

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29 Aug 200813



Discount for high “Premium” (Dai-ichi Life)

Annual premium Rate (% of premium)< 2.5M 0%

2.5M ~ 4.0M 3%4.0M~7.0M 4%7.0M~10.0M 5%

10.0M~14.0M 6%>=14.0M 7%

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29 Aug 200814



Discount for high “sum assured” (Prudential)

Sum AssuredRate (% of sum assured)

Education Plan Anticipated Prod.<60M 0% 0%

60M~120M 0.3% 0.4%120M~180M 0.45% 0.6%

>=180M 0.6% 0.8%

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29 Aug 200815

PLANING PROJECT NEXT MONTH

(I) List of Products will be submitted for approval:

Priority Products Schedule

1Group Term Life Insurance (G01)Group Accident Rider (G02)

Sep.

2

Group Medical Rider (G03) Critical Illness Waiver Rider (R03)Waiver Rider (R04)Personal Medical Rider (R05)

Oct.

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29 Aug 200816

Thank you!

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1 cathay life insurance ltd. (vietnam) 29 aug 20081planning

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