1Cathay Life Insurance Ltd. (Vietnam)

29 Aug 20081

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2Cathay Life Insurance Ltd. (Vietnam)

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.

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3Cathay Life Insurance Ltd. (Vietnam)

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

PlanningPlanning

4Cathay Life Insurance Ltd. (Vietnam)

29 Aug 20084

ENGAGED PROJECT THIS MONTH

(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.

PlanningPlanning

5Cathay Life Insurance Ltd. (Vietnam)

29 Aug 20085

ENGAGED PROJECT THIS MONTH

(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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6Cathay Life Insurance Ltd. (Vietnam)

29 Aug 20086

ENGAGED PROJECT THIS MONTH

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

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)

PlanningPlanning

7Cathay Life Insurance Ltd. (Vietnam)

29 Aug 20087

ENGAGED PROJECT THIS MONTH

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

• 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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8Cathay Life Insurance Ltd. (Vietnam)

29 Aug 20088

ENGAGED PROJECT THIS MONTH

(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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9Cathay Life Insurance Ltd. (Vietnam)

29 Aug 20089

ENGAGED PROJECT THIS MONTH

(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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10Cathay Life Insurance Ltd. (Vietnam)

29 Aug 200810

ENGAGED PROJECT THIS MONTH

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

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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11Cathay Life Insurance Ltd. (Vietnam)

29 Aug 200811

ENGAGED PROJECT THIS MONTH

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

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

PlanningPlanning

12Cathay Life Insurance Ltd. (Vietnam)

29 Aug 200812

ENGAGED PROJECT THIS MONTH

(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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13Cathay Life Insurance Ltd. (Vietnam)

29 Aug 200813

ENGAGED PROJECT THIS MONTH

(V) Premium Discount Program:

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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14Cathay Life Insurance Ltd. (Vietnam)

29 Aug 200814

ENGAGED PROJECT THIS MONTH

(V) Premium Discount Program:

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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15Cathay Life Insurance Ltd. (Vietnam)

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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16Cathay Life Insurance Ltd. (Vietnam)

29 Aug 200816

Thank you!

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