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MONTHLY REPORT Oct, 2009MONTHLY REPORT Oct, 2009

Planning DivisionPlanning Division

Hong NhungHong Nhung

30th Oct. 200930th Oct. 2009

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ENGAGED PROJECT THIS MONTH

Market Information Updated Premium Income New Products Launch New Products Pricing MDRT Requirement Modify

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Ace Life launches Products for enterprises

Market Market InfoInfo

Universal Life - Key Universal Life - Key Person OptionPerson Option

Group Term LifeGroup Term Life

For high-ranking For high-ranking personnel (LA 18-60).personnel (LA 18-60).Min 10 key persons.Min 10 key persons.Commit to work at Commit to work at least 5 years.least 5 years.

This is a viable This is a viable financial protection financial protection option for other option for other staffs (LA 18-64) staffs (LA 18-64) with low premium.with low premium.

The benefits in policies are agreed upon by employers The benefits in policies are agreed upon by employers and employees. This can be entirely for employee and employees. This can be entirely for employee appreciation, or employer financial protection or both.appreciation, or employer financial protection or both.

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Macro-insurance products launched

Market Market InfoInfo

MOF allowed some enterprises to carry out trial of macro-insurance services.

Manulife Co is piloting the services in Hai Phong and Kien Giang:

Premium: VND100k-280k a year; SA:VND 10-20 million, as people face accidents,

diseases, or other risks. Distribution: through women's association and farmers' Distribution: through women's association and farmers'

association. association. And to date, over 4,000 insurance contracts have been

signed.

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Macro-insurance products launched (cont)

This month end, the ISV and Enterprises will sum This month end, the ISV and Enterprises will sum up the results of piloting process.up the results of piloting process.

Expectation:Expectation: Beginning, insurers can lose but they will help the poor

access the insurance purchase customs. Finally, they will join ordinary insurance services.

Also, AVI cooperated with the capital support fund Also, AVI cooperated with the capital support fund for the poor to sell voluntary health insurance to for the poor to sell voluntary health insurance to 1,500 members in HCMC 1,500 members in HCMC (with an attractive fee of (with an attractive fee of VND2k/month, VND1k/month or VND0.2k/week).VND2k/month, VND1k/month or VND0.2k/week).

Market Market InfoInfo

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General VN Insurance Market information

Market Market InfoInfo

Vietnamese insurers not expanding overseasVietnamese insurers not expanding overseas(internal strength is weak, domestic market in large (internal strength is weak, domestic market in large potential opportunities).potential opportunities).

HSBC Insurance increases stake in Bao VietHSBC Insurance increases stake in Bao Viet(HSBC will purchase a further 8% of Bao Viet shares (HSBC will purchase a further 8% of Bao Viet shares from MoF, raise its shares to 18% from 10% ~ VND1.88 from MoF, raise its shares to 18% from 10% ~ VND1.88 trillion).trillion).

Insurance revenue reports VND6tril in first monthInsurance revenue reports VND6tril in first month(a year-on-year increase of 15.8%, demonstrated great (a year-on-year increase of 15.8%, demonstrated great potential of the insurance industry amidst the global potential of the insurance industry amidst the global economic recession)economic recession)

Cathay Life Vietnam opens Cantho branch officeCathay Life Vietnam opens Cantho branch office

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NB Premium Income - Annualized

Prud

Baoviet

ManuAIA ACE

Daiichi

Cathay

0

100

200

300

400

500

600

700

PrudBaovietManuAIAACEDaiichiCathay

Company Prud. Bao Viet Manu AIA ACE Daiichi Cathay

Prem. Income 659.1 510.0 221.3 192.0 191.8 151.3 30.8

Proportion 32.4% 25.1% 10.9% 9.4% 9.4% 7.4% 1.5%

Prem Prem IncomeIncomeJan~Sep Jan~Sep

20092009

•Korea(26.4)Korea(26.4) 、、 Prevoir (45.4) and G. E. (7.1).Prevoir (45.4) and G. E. (7.1). •This information is not published yet, just for reference only.This information is not published yet, just for reference only.

32.4%32.4%

25.1%25.1%

10.9%10.9%9.4%9.4%

In BillionIn Billion

9.4%9.4%

1.5%1.5%

7.4%7.4%

Market share of

Market share of Bao Viet Bao Viet decrease!

decrease!

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Total Premium Income

3.38

2.71

0.89

1.36

0 0.5 1 1.5 2 2.5 3 3.5 4

Prudential

Bao Viet

Manulife

Others

Company Prudential Bao Viet Manulife Others

Total Prem. Income

3.38 2.71 0.89 1.36

Proportion 40.5% 32.5% 10.7% 16.3%

Prem Prem IncomeIncomeYTD Sep YTD Sep

20092009

In TrillionIn Trillion

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C07 – Cathay Premium Endowment

ProductProducts s

launchlaunch

Death or TPDDeath or TPD

(Plus Unearned Premium)(Plus Unearned Premium)

Premium Paying Period = 10 yrsPremium Paying Period = 10 yrs

Policy Year 1 2 3 4 5 6 7 8 9 10Policy Year 1 2 3 4 5 6 7 8 9 10

Maturity Maturity Benefit:Benefit:

200% SA200% SA

10% SA10% SA

100% 100% SASA

Interest FeedbackInterest Feedback

Approved by MOF-ISV Approved by MOF-ISV Oct 12, 2009Oct 12, 2009

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C07-Premium End Versus C03-ISA End

ProductProducts s

launchlaunch

C03:SA: VND100 MDB: VND108-466.1 MTPDB:VND108-466.1 MMB: VND466.1 M

For a male, age 35, buy an insurance policy in 20 yrs with the premium of VND15.416 mil/year.

Interest feedback:• DI=8%: VND 82.82 M (+17%)• DI=9%: VND146.82 M

(+22%)

Interest feedback:•DI=8%: 0

•DI=9%: VND32.4 M

C07:SA: VND154.16 MDB: VND169.6-462.5 MTPDB: VND169.6-462.5 M MB: VND462.5 M

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Inte

rest

Fee

dbac

kIn

tere

st F

eedb

ack

C08–Cathay Premium Child Education

ProductProducts s

launchlaunch

Death or TPD:Waive all remaining Premium

Graduation: payable if PO died and LA alive without TPDAttain Age % SA1~12 1013~15 2016~18 2519~21 30

Maturity: 60% SA when LA attains 22-year-old

Benefits of PO :Benefits of PO : Benefits of Benefits of LA :LA :

Death or TPD:1.2 x all premium paid

Education: if LA alivesAttain Age %SA15 2018~21 20

Approved by MOF-ISV Approved by MOF-ISV Oct 12, 2009Oct 12, 2009

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C08–CPCE Versus C04-CECE

ProductProducts s

launchlaunch

C08: SA: VND86.8 M LI’s DB: VND11.14-156M LI’s TPDB: same as DB Max WOP:VND120.72 M Max Grad.B:VND230 M Edu+MB: VND138.9 M

C04:SA: VND100 MLI’s DB: VND10.2-143M LI’s TPDB: same as DBMax WOP:VND120.72 M Max Grad.B:VND240 M Edu+MB: VND150 M

For a male, age 35, buy an insurance policy for his son at the 8 years old with the premium of VND9.286 mil/year.

Interest feedback:• DI=8%: VND 13.51 M

(+1.6%)• DI=9%: VND23.82 M

(+4.6%)

Interest feedback:•DI=8%: 0 •DI=9%: VND5.5M

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C09–Cathay Firmly Foundation Term Life

ProductProducts s

launchlaunch

Death or TPDDeath or TPD

Premium Paying Period = 10 yrsPremium Paying Period = 10 yrs

Policy Year 1 2 3 4 5 6 7 8 9 10Policy Year 1 2 3 4 5 6 7 8 9 10

Maturity Benefit:Maturity Benefit:1.1 times Sum of 1.1 times Sum of

Annual Modal Annual Modal PremiumsPremiums

100% SA 100% SA + +

Unearned Unearned premiumpremium

Interest Interest FeedbackFeedback

Approved by MOF-ISV Approved by MOF-ISV Oct 12, 2009Oct 12, 2009

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C09–CFF TL Versus A01-Term with ROP

ProductProducts s

launchlaunch

Interest feedback:• DI=8%: VND 10.45 M

(+29%)• DI=9%: VND18.5 M (+44%)

A01:SA: VND100 MD/TPDB: VND100 M PPDB: % of SAMB: VND54.3 M

For a male, age 35, buy an insurance policy in 20 years with the premium of VND2.715 mil/year.

C09: SA: VND100.56 M D/TPDB: VND100.56 M PPDB: N/A MB: VND59.73 M

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A03 – Cathay Accidental Term Life-ROP

New BasicNew Basic

Accidental Death / TPD Benefits: 100% SA

Death Benefit (not due to accident): 100% ROP

Maturity Benefit:

06 years PT : 110% Total Premiums Paid10 years PT : 120% Total Premiums Paid15 years PT : 130% Total Premiums Paid20 years PT : 140% Total Premiums Paid

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R04 – Medical RiderNew RidersNew Riders

Hospitalization Indemnity:1~30 days : 1.0 SA / per day31~120 days : 1.5 SA / per day (max 120 days pa)

Home Health Care:1~120 days : 0.5 SA / per dayIn addition to Hospitalization Indemnity (max 120 days pa)

BICU or ICU:1~30 days : 1.0 SA / per dayIn addition to Hospitalization indemnity (max 30 days pa )

In-patient Surgical: 5.0 SA / per time

Benefits :Benefits :

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R05 – Term Rider & R06 – Waiver Premium Rider

New RidersNew Riders

Death or TPD:100% SA + Unearned Premium

Death or TPD:Waive all remaining premium

Benefits of R05:Benefits of R05:

Benefits of R06:Benefits of R06:

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Type of credit

Membership

level

FYC PFYP Original New Original New

MDRT 163,559,760 134,549,580 545,199,200 448,498,600

Court of the Table

490,673,880 403,648,740 1,635,597,600 1,345,495,800

Top of the Table 981,358,560

807,297,480 3,271,195,200 2,690,991,600

MDRT Requirement Modification

Agent Agent RegulatioRegulatio

nn

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PLANNING PROJECT NEXT MONTH

New Products Submission

Annual Plan 2010

New Branch Approval Process

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