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MONTHLY REPORT Aug, 2009MONTHLY REPORT Aug, 2009

Planning DivisionPlanning Division

Hans WangHans Wang

28th Aug. 200928th Aug. 2009

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ENGAGED PROJECT THIS MONTH

Market Information Updated

Premium Income

Repricing and New Riders

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Ace Life launches inflation index term riderMarket Market

InfoInfo

Attached on Universal Life Product OnlyAttached on Universal Life Product Only

Inflation rate is capped within 3%~15% Inflation rate is capped within 3%~15%

Face amount increased based on inflation rateFace amount increased based on inflation rate

Helps Policy Owner hedge customer price hikesHelps Policy Owner hedge customer price hikes

Provides better financial protectionProvides better financial protection

Face Amount500M

Face Amount550M

First YearFirst Year Second YearSecond YearInflation Rate 10%Inflation Rate 10%

Features:Features:

EX:EX:

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New Customer Service in PrudentialMarket Market

InfoInfo

Opening of Customer Portal PRUOnline

1. A website opened to all policyholder of Prudential

2. User might change or update address and phone

number via this website

Information enquiry via SMS message

Request via 8099Request via 8099

Info backInfo back

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New Life Insurance Coming - GeneraliMarket Market

InfoInfo

Assicurazioni Generali Group – Italian InsurerAssicurazioni Generali Group – Italian Insurer

Granted License setting a representative on 8/26 Granted License setting a representative on 8/26

Expected granting Operating License in 2010Expected granting Operating License in 2010

22ndnd Largest Insurance Group in the World Largest Insurance Group in the World

Expanding their operation in ASIAExpanding their operation in ASIA

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Inspection Tours - MoFMarket Market

InfoInfo

Strengthening Insurance Market

Nearly 100% of insurance have been found as

violating regulation

Cleaning unhealthy competition

Overpay on Commission -- statistics show

some of insurance company

losing money, especially non-life

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NB Premium Income – Annualized

PrudBao Viet

Manu ACE AIGDaiichi

Cathay

0

100

200

300

400

500

600

PrudBao VietManuACEAIGDaiichiCathay

Company Prud. Bao Viet Manu ACE AIG Daiichi Cathay

Prem. Income 478.7 455.8 159.8 140.0 139.8 105.3 20.0

Proportion 31.4% 29.9% 10.5% 9.2% 9.2% 6.9% 1.3%

Prem Prem IncomeIncomeJan~Jul Jan~Jul 20092009

* Korea(16.2)* Korea(16.2) 、、 Prevoir (5.6) and G. E. (4.1)Prevoir (5.6) and G. E. (4.1)

31.4%31.4%29.9%29.9%

10.5%10.5%9.2%9.2%

In MillionIn Million

9.2%9.2%

1.3%1.3%6.9%6.9%

Not OfficialNot OfficialStatistical DataStatistical Data

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Total Premium Income

Prudential,2.18

Bao Viet,1.81

Manulife,0.57

Others, 0.94

0.00 0.50 1.00 1.50 2.00 2.50

Prudential

Bao Viet

Manulife

Others

Company Prudential Bao Viet Manulife Others

Total Prem. Income 2.18 1.81 0.57 0.94

Proportion 39.7% 33.0% 10.3% 17.0%

Prem Prem IncomeIncomeH1 2009H1 2009

In TrillionIn Trillion

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C07 – Premium EndowmentRepricingRepricing

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 Maturity Benefit:Benefit:

200% SA200% SA

10% SA10% SA

100% SA100% SA

Interest FeedbackInterest Feedback

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C08 – Premium Child EducationRepricingRepricing

Death or TPD:Waive all remaining Premium

Gradation: payable if PO died and LA aliveAttain 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 LA :Benefits of LA :

Death or TPD:1.2 x all premium paid

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

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C09 – Firmly Foundation Term LifeRepricingRepricing

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:Total Premium Total Premium Paid in 10 yearsPaid in 10 years

100% SA100% SA

Interest FeedbackInterest Feedback

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R04 & R05 & R06RepricingRepricing

Benefits are remain the same as R01 & R02 & R03

R01 & R02 & R03Unearned Premium is calculated based on Gross Premium.Ex: a rider lapsed six month after issuedUnearned premium = 0.5 * GP

Gross Premiums unchanged

R04 & R05 & R06Unearned Premium is calculated based on Net Premium.Ex: a rider lapsed six month after issuedUnearned premium = 0.5 * NP

Difference :Difference :

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R07 – 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 day(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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R08 – Term Rider & R09 – Waiver Premium Rider

New RidersNew Riders

Death or TPD:100% SA + Unearned Premium

Death or TPD:Waive all remaining premium

Benefits of R08:Benefits of R08:

Benefits of R09:Benefits of R09:

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PLANNING PROJECT NEXT MONTH

Products Launching

New Branch Assessment 2010

Agent Regulation Modification

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Products Launching – Basic Plan

C07-Premium Endowment

ProdProdLaunchLaunch

C08-Premium Child Education

C09-Firmly Foundation Term Life

C10-New 110 Endowment

C11-Kids Education

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Products Launching – Riders

R04-New Personal Accident Rider

ProdProdLaunchLaunch

R05-Kids Accident Rider

R06-New Accident Medical Rider

R07-Medical Rider

R08-Term Rider

R09-Waiver Premium Rider

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New Branch Assessment 2010New Branch

Vinh Phuc

芹苴 Can Tho

Hai Phong

Khanh Hoa

Binh Duong

Dong Nai

Vung Tau

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Agent Regulation Modification

Project for Pre-Agency Branch Manager Financial Support

Agent Agent RegulatioRegulatio

nn

Project on Reward for Insurance Agents who arePromoted to Insurance Advisors

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