Monthly Report March, Monthly Report March, ‘11‘11

Planning DivisionPlanning Division

Nhung LaNhung La

25 Mar. 201125 Mar. 2011

Agenda

Market News

Products Sales

Customers Needs Analysis

Persistency Analysis

The earthquake happened in Japan on Mar 11th, with more than 21,000 persons died and disappeared, the loss estimated to $235B. Unfortunately, only ~15% real estates being insured about the earthquake risks.

AIG America forecast will loss ~ USD1B for claim payment due to disaster. In which, 70% come from the earthquake in Japan; other due to the flood in Australia and Brazil together with the earthquake in New Zealand.

Market News

New insurance business Laws, be effective from Jul 01, 2011, with some revising:

- Allowed for life insurers design pension and heath care insurance product. People in all kinds of occupation can choose to buy from all insurers, in all levels, to take care themselves in health, especially their living after retirement.

- Together with joining WTO, the foreigners working in VN can buy insurance oversea. Countries in WTO can sell insurance to VN.

Market News

- More strictly in ceded insurance, competition, training and recruiting of employees, setting Customers Protection Fund by insurers. Create good environment in insurance business, keep strong financial ability for insurers.

- Make clear on the effective date: 1. Policy signed; 2. The PO paid first premium in full; 3. The insurer allow for PO owe premium.

Avoid argument incase insured event happen.

Market News

Products Sales

New Products Launch Launching date: Mar 11th, 2011 Cathay Accidental Endowment – A05

New Submitted: 1 case; ANP: VND1.5M Cathay Advance Whole Life – C10

New Submitted: 10 cases; ANP: VND112M Cathay Advance Endowment – C11

New Submitted: 39 cases; ANP: VND365M Cathay Advance Child Education – C12

New Submitted: 26 cases; ANP: VND193M7

Products Stop Selling

The last selling date: Mar 23rd, 2011 Cathay Whole Life with Cash Benefit – C05 NOP: 1,884; ANP: VND11,402 M Cathay Whole Life 111 with ROP – C06 NOP: 56 ; ANP: VND537 M Cathay Premium Endowment – C07 NOP: 7,780; ANP: VND54,635 M Cathay Premium Child Education – C08 NOP: 2,690; ANP: VND14,524 M

Customers Needs Analysis

47% 49% 47%54%

49%44%

56%51%

46%53%51%53%

0%

10%

20%

30%

40%

50%

60%

HCM HN Da Nang CT Dong Nai HPMale(%) Female(%)

46% 47% 50% 48%54% 53% 50% 52%

0%

20%

40%

60%

80%

2008 2009 2010 2011Male(%) Female(%)

Gender DistributionWhole Company

By Branches

•Only in CT, % customers in male is higher than in female. •Only in CT, % customers in male is higher than in female.

0%

10%

20%

30%

40%

50%

60%

2008 2009 2010 2011

0~20 21~40 41~60 60~

Whole CompanyWhole Company

Age Distribution

Customers age around 21~40 grow very quick and have become our main customers.

0%10%20%30%40%50%60%

HCM HN Da Nang CT Dong Nai HP

0~20 21~40 41~60 60~

Age Distribution (cont)By BranchesBy Branches

•HCM, HN, CT and Dong Nai sell most of their policies to the customers who age around 21~40.•Da Nang and HP both focus on young customers. We can also observe the similar situation on their product sales.•CT pays more attention on older customers (≧41) (~ 20%).

•HCM, HN, CT and Dong Nai sell most of their policies to the customers who age around 21~40.•Da Nang and HP both focus on young customers. We can also observe the similar situation on their product sales.•CT pays more attention on older customers (≧41) (~ 20%).

Product distributionWhole CompanyWhole Company

•Endowment is currently our best sale type Higher commission and easier to convince our customers by its saving feature.•Endowment is currently our best sale type Higher commission and easier to convince our customers by its saving feature.

0%

10%

20%

30%

40%

50%

60%

70%

80%

2008 2009 2010 2011

End Edu Whole Term

0%

10%

20%

30%

40%

50%

60%

70%

HCM HN Da Nang CT Dong Nai HP

End Edu Whole Term

Product distributionBy BranchesBy Branches

Most of branches focus on Endowment and Education products.

Only CT have higher sale of Whole Life than Education End.

Most of branches focus on Endowment and Education products.

Only CT have higher sale of Whole Life than Education End.

Annualized Premium per Policy

15

Whole CompanyWhole Company

ANP per policy increase steadily from ‘09, except for Term Product.

ANP per policy increase steadily from ‘09, except for Term Product.

By BranchesBy Branches

ANP per policy of HP are little bit higher than other branches, the highest is Term product (~VND 8M) due to some big cases.

ANP per policy of HP are little bit higher than other branches, the highest is Term product (~VND 8M) due to some big cases.

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1

2

3

4

5

6

7

8

9

2008 2009 2010 2011

7M

End Edu Whole Term Regular Paid

-

1

2

3

4

5

6

7

8

HCM HN Da Nang CT Dong Nai HP

7MEnd Edu Whole Term Regular Paid

Persistency Analysis

Persistency ratio

Persistency Ratio from 2009 ~ 2011

• 13th mth persistency keeps decreasing to ~ 38.6% for Oct ‘09.

• 25th mth persistency is ~ 80% of 13th mth persistency rate.

The willing to pay premium is much higher if the customers keep the policy and pay premium longer than one year.

• 13th mth persistency keeps decreasing to ~ 38.6% for Oct ‘09.

• 25th mth persistency is ~ 80% of 13th mth persistency rate.

The willing to pay premium is much higher if the customers keep the policy and pay premium longer than one year.

52.5%44.3%

0%

20%

40%60%

80%

100%

0807 0810 0901 0904 0907 0910 1001 1004

7th month

13th month

19th month

25th month

Persistency Ratio by Regions

The 13th month persistency ratio among the Regions

•The persistency of HCM1 is quite stable. •The persistency of HN1 and DNG keeps decreasing and also affect the persistency of whole company.Note: DGN and HP were established less than 1 year only.

20%

30%

40%

50%

60%

70%

80%

90%

0910 1001 1004 1007 1010 1101

HCM1 HN1 DN CT

Lapse Policy Analysis Lapse due to reasons

Most of policies lapse in HCM1, DNG and CT due to suspension. However the surrender cases in DNG and CT are little bit higher than in HCM1.

Surrender polices of HN1 are very significant compare to other regions. It is getting higher to > 40% in recent 2 months.

Region Normal Suspension Surrender Others

HCM1 57% 31% 11% 1%

HN1 47% 24% 26% 3%

DN 50% 34% 16% 0%

CT 48% 34% 19% 0%

Total 50% 28% 20% 2%

Lapse Policy Analysis (cont) Lapse split between kinds of Policies

If we consider the orphan policy within the self-purchased policy, more than 63% are lapsed.

Region

Orphan Policy vs. Normal

Self-purchased vs. Normal

Orphan Normal Self-purchased Normal

HCM1 44% 31% 44% 32%HN1 55% 50% 60% 51%DN 41% 29% 46% 32%CT 33% 11% 20% 14%

Total 50% 33% 48% 39%

Some Suggestions The 13th month persistency target of 2011 is 60%, but this ratio

of whole company just reach 50% at end of Feb’11. Guide the agents & CS to pay more attention on after sale

service to enhance our policy quality.

Company encourages our employees and agents to buy policies themselves.

All branches should emphasize our agents to focus on their career path and to grow up with the company.

Orphan policy of each branch

Besides to improve the after sale service, we should also increase agents retention ratio, to reduce the orphan policy.

Branch HCM HN DN CT DNa HP Total

% 25.3% 41.3% 42.3% 21.4% 7.4% 0.0% 33.1%

Planning Project Next Month

New Product Designs

GA (General Agency) Assessment

2011 Customer Campaign Assessment