MONTHLY REPORT Feb., 2010

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MONTHLYMONTHLY REPORT Feb., 2010 REPORT Feb., 2010

Planning DivisionPlanning Division

Jimmy LaiJimmy Lai

5th Mar. 20105th Mar. 2010

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ENGAGED PROJECT THIS MONTH

Market Information Updated

Policy Issued Report

Accumulated Persistency Analysis

Products Submission Status

New Products Information

Progress Report-New Branch

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Dai-ichi Life reports steady growthMarket Market

InfoInfo

The insurer obtained VND744 billion from insurance premiums last year with new policies increasing by 39%.

This is also the second straight year the Japanese-invested company has posted profits from the local market after three years of operation.

The company expanded its market share from 4.8% in the first year to around 7% in 2009.

Dai-ichi Life Vietnam plans to obtain 8% of the market share this year and increase the figure to 10% two years late.

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AIA opens customer service centers

Market Market InfoInfo

AIA has opened its customer service centers in Da Nang, Nha Trang (Middle of VN) and Can Tho (South of VN), which aim to provide customers with a better and more professional service.

The move is part of AIA Viet Nam’s ongoing plan to upgrade and renovate its customer service centers.

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Manulife seeks dual-track growth in Vietnam urban and rural areas

Market Market InfoInfo

Developing Accidental Term Life (A05)Developing Accidental Term Life (A05)

Last September, Manulife Vietnam initiated a micro-insurance project in Hai Phong and Tien Giang, in cooperation with Vietnam Women's Union.

Manulife Vietnam is looking to build up this rural customer base to 500,000 to 600,000 policyholders in the future.

It is anticipated that 10% of these policyholders may emerge as a higher income group, who could then purchase a regular insurance policy.

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Market Market InfoInfoAIA collect premiums through post

offices

AIA Viet Nam's life insurance policy holders can pay their premiums at any of VNPT's (Viet Nam Post Corporation ) local post offices at their convenience without any extra fees charged.

This collection service is effective from March.

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Policy Issued ReportPolicyPolicyReportReport

1.Case Issued

# of Policy Issued

Product Jan. 2010 Feb. 2010 Total

C05 194 88 282 (18%)

C06 5 1 6 (0.4%)

C07 424 213 640 (41%)

C08 217 101 318 (20%)

C09 222 103 325 (21%)

Total 1,065 506 1,571

because of the lunar new year vacation

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Policy Issued Report(cont)PolicyPolicyReportReport

2.First Premium(basic plan)

FP (in million)

Product Jan. 2010 Feb. 2010 Total

C05 712 424 1,136 (21%)

C06 27 11 38 (0.7%)

C07 1,664 981 2,645 (50%)

C08 772 344 1,116 (21%)

C09 262 138 400 (8%)

Total 3,438 1,897 5,335

Main product: C07 &C08

Keep observing : C06

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Accumulated Persistency Analysis

PersistenPersistencycy

AnalysisAnalysis

91.5%

91.5%

91.4%

90.3%

89.6%

89.4%

87.7%

89.9%

86.2%

86.5%

58.2%

62.1%

61.8%

60.3%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

98/4 5 6 7 8 9 10 11 12 99/1

7th accumulated persistency

13th accumulated persistency

13th accumulated persistency is not desirable

1.Accumulated Persistency Analysis

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Accumulated Persistency Analysis(cont)

PersistenPersistencycy

AnalysisAnalysis

2.Problem Source Analysis

agents leave workagent-relation policies dismiss

after gaining financial support or performance-related salaryagents terminate pay premium

lack of safeguard sense and income unstablecustomers terminate pay premium

Surrender

Suspend

have cash value after 1st policy year

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Persistency Analysis(cont)

PersistenPersistencycy

AnalysisAnalysis

3.Method to improve

Modify Collector salary related to their collect performance

Add the new official level,Collector Supervisor,to train and supervise Security

Service agents can get 50% service commissions from orphan policies

Develop multiple channel to collect premium and provide premium discount program

Design product that don’t have cash value if surrender within 2nd policy year

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Products Submission StatusProductStatus

Type Name ProductTime

ScheduleNote

Basicplan

Short-termendowment

A03◆2/25 to MoF;◆expect to

launch in the late April

2-year payment； 5-year maturity

(IRR:7%)

Rider

Medical Rider

R04

Term Rider R05

※1 basic products and 2 riders have been sent to MoF.

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Progress Report - New ProductNew

Product

1.Loan Portection Insurance (D01)： ◎Death Benefit : Decrease Sum Assured depends on the policy term and year ◎Policy Term:2-year~20-year NOTE: It is a Single Pay Insurance.

This is the specific product for the bank.It will be sent to MoF next week.

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Progress Report - New Product(cont)

New Product

2.Accidental Term Life (A05) ： ◎Death Benefit : Non-accident ： 20% × Sum Assured Accident ： (1+policy year×10%)×Sum Assured ◎ Maturity Benefit: at 10-year(P.P.P. ： 5-year) ： 10% × Sum Assured at 20-year(P.P.P. ： 10-year) ： 20% × Sum Assured ◎ Premium Paying Period: 5-year or 10-year

This is the specific product with lower premium.

It will be sent to MoF as soon as possible.

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Progress Report - New Product(cont)

New Product

3.Product Market Share Analysis

Year Endowment UL Other

2008 75% 16% 9%

2009Q3 65% 24% 11%

2010predict 60% 30% 10%

We plan it will be the star product in the second half-year.We will develop UL insurance as soon as possible.

We expect UL will be 10% of our company FYP this year ,and new short-term endowment (A03) will be 20%.

UP!

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Progress Report - New BranchNew

Branch

芹苴 Can Tho

Dong Nai

MoF has approved of operating new branch-Dong Nai.

Expecting to open this new branch on April 2010

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PLANNING PROJECT NEXT MONTH

Developing New ProductsUniversal-Life

Advanced Medical Ridder

2010 Q2 Promotion CampaignPromotional period:March 25th ~ June 22nd 2010

The 1st prize is up to 30M

Independent Region Research

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