YEARLY REPORT

December 30, 2011

Management Division

2011 YEARLY REVIEW

2011 REVIEW

Labor review1

Activity review2

Regulation & Policy review3

Analysis and Improvement4

2012 Plan5

LABOR REVIEW

1. Employee statistics by Gender

LABOR REVIEW

2. Employee statistics by Age

LABOR REVIEW

3. 2011 new recruitment

BranchNew

recruitment

Head office 42

HCMC 9

Ha Noi 34

Da Nang 5

BranchNew

recruitment

Can Tho 12

Dong Nai 9

Hai Phong 7

Total: 118 new comers

TRAINING REVIEW

1. Routine training courses conducted by HR dept.

Name of training courses Number of courses

Orientation training 07

Functional training 04

Training for staff under 01 year seniority

04

Management training course 09

Total 24 courses

TRAINING REVIEW

2. Technical training courses from parent company

No. Request division Training course name Facilitator

1

IT

DB2 System Performance, Tuning and Problem solving Trainer from parent company

2 Network system Design, Routing and Security Trainer from parent company

3 The Introduction of Investment Product System Trainer from parent company

4 Policy admin Medical knowledge of insurance fields - claim & UW Trainer from parent company

5Finance and Accounting

Reserve calculation Planning div. in Vietnam

6 Relationship between actual premium collection and PFYP. Planning div. in Vietnam

TRAINING REVIEW

3. Management training course Subject: How to coach and motivate employees to maximum

performance Participant: Vietnamese middle management level

ACTIVITY REVIEW

1. 2011 Fresh graduated student recruitment program Date and time: September 05-16, 2011 Number of recruited fresh graduated students: 07

ACTIVITY REVIEW

2. Competition regarding to stipulating company regulation Date and time: April 2011 to June 2011 Result:

Result Head Office Branches

No. 1 IT Div.Dong Nai Hai Phong

No. 2 Policy Admin Div.

No. 3 Management & Auditing Ho Chi Minh

ACTIVITY REVIEW

3. 2011 Service Center Satisfaction Survey Date and time: August 16 to September 01, 2011 Participants: All agency staff with level from EAS above Purposes:

Enhance the service quality of service center Find out how satisfactory agency staff feel toward CS staff Receive feedback from agency staff to improve the working

effectiveness of service center Result: 06 best CS staff selected by agency staff and publicly

awarded Survey result was feedback to CRDs for improvement.

ACTIVITY REVIEW

3. 2011 Company trip

No. Branch Destination

1. Head office Mui Ne – Phan Thiet

2. Hanoi Cat Ba Island

3. Danang Phong Nha – Ke Bang

4. Cantho Ba Dong beach – Tra Vinh

5. Dongnai Nha Trang beach

6. Haiphong Cat Ba Island

ACTIVITY REVIEW

3. 2011 Company trip

ACTIVITY REVIEW

3. 2011 Company trip

COMPANY REGULATION UPDATE

Review and revise company policies:

1. Uniform regulation

2. LOMA regulation

3. Domestic business trip regulation

4. Leave regulation

ANALYSIS AND IMPROVEMENT

ANALYSIS

1. Inflation rate is high. Employee also expects salary increase.

2. New life insurers keep entering Vietnam and try to find experienced talents

SOLUTIONS & IMPROVEMENT

1. Market survey to understand the salary market situation.

2. Design some long-term investment program to retain key persons or excellent employees.

3. Design more benefits, special training programs to retain employees and encourge employees for long-term service

2012 PLAN

Follow up 2012 recruitment plan

2012 Training Plan

1. Follow up routine training courses: Orientation, functional, courses for staffs under one year, management training.

2. Cooperate with training div. to design training courses for normal employee level.

3. Cooperate with external training supplier for middle management training.

4. Continue to organize training programs supported by parent company.

2012 PLAN

Employee benefit and retention

1. Apply group insurance benefit for employee: Personal accident insurance & medical insurance. Effective from: January 01, 2012

2. Design some special training project for talent investment as well as talent retention.

Improve HR working procedures

1. Cooperate with IT div. for online attendance system

2. Cooperate with IT div. for online business trip system

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MONTHLY REPORT DECEMBER, 2011

General Affairs Department

21

2011 ANNUAL REPORT - General Affairs

I.I. REVIEW 2011REVIEW 2011A. Office buildingB. Office relocationC. Expenses (Office rental, electricity, telephone)D. RegulationsE. Others

II.II. ANALISYS AND IMPROVEMENTANALISYS AND IMPROVEMENTA. AnalysisB. Improvement

III.III. PLAN 2012PLAN 2012

22

2011 ANNUAL REPORT - General Affairs

I.I. REVIEW 2011 (cont’d)REVIEW 2011 (cont’d)A. Office Building

Can Tho new Agency Office (Hung Loi)

23

2011 ANNUAL REPORT - General Affairs

I.I. REVIEW 2011 (cont’d)REVIEW 2011 (cont’d)A. Office Building

Dong Nai new Office (Nguyen Ai Quoc)

24

2011 ANNUAL REPORT - General Affairs

I.I. REVIEW 2011 (cont’d)REVIEW 2011 (cont’d)B. Office Relocation

Bui Thi Xuan-6F&8F: relocating Staffs, Trainers & Collectors offices & Cathay Non-life office

Hai Phong-5F: renovating Meeting room into 02 BM rooms

Binh Thanh-2F&4F: shifting Training room and Agency office

N’orch-8F.3: setting up office for HCM6 N’orch-8F.1: re-arranging office for HCM1

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2011 ANNUAL REPORT - General Affairs

I.I. REVIEW 2011 (cont’d)REVIEW 2011 (cont’d)C. Expense - Office Rental

Total rental area increases 635.25 m2

P.S: There are 2 new offices: Hung Loi (Can Tho) & Nguyen Ai Quoc (Dong Nai)

26

2011 ANNUAL REPORT - General Affairs

I.I. REVIEW 2011 (cont’d)REVIEW 2011 (cont’d)C. Expense - Office Rental

27

2011 ANNUAL REPORT - General Affairs

I.I. REVIEW 2011 (cont’d)REVIEW 2011 (cont’d)C. Expense - Office Rental

P.S: Reason is successful negotiation with Landlords to reduce office rental

28

2011 ANNUAL REPORT - General Affairs

I.I. REVIEW 2011 (cont’d)REVIEW 2011 (cont’d)C. Expense - Electricity

29

2011 ANNUAL REPORT - General Affairs

I.I. REVIEW 2011 (cont’d)REVIEW 2011 (cont’d)C. Expense - Electricity

P.S: Reasons of electricity expense increasing:• Increase of 2 more buildings in Can Tho and Dong Nai• Full use of Bui Thi Xuan and Dong Khoi offices• 2 times of unit price of electricity increase (15.28% then 5%)

2010: 11 buildings2011: 13 buildings

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2011 ANNUAL REPORT - General Affairs

I.I. REVIEW 2011 (cont’d)REVIEW 2011 (cont’d)C. Expense - Telephone

31

2011 ANNUAL REPORT - General Affairs

I.I. REVIEW 2011 (cont’d)REVIEW 2011 (cont’d)C. Expense - Telephone

2010: 11 buildings2011: 13 buildings

P.S: Because of business development and more buildings in 2011, telephone expense increases. However, it is still under control.

32

2011 ANNUAL REPORT - General Affairs

I.I. REVIEW 2011 (cont’d)REVIEW 2011 (cont’d)D. Regulations

Regulation on Incoming / Outgoing Document Management (revised)

Regulation on Security and Property Management (revised)

Regulation on Furniture and Office Equipment Management (newly issued)

E. Policies Stationery ordering applied online Uniforms purchased by Branches locally to save postal

cost (Ha Noi, Hai Phong, Dong Nai)

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2011 ANNUAL REPORT - General Affairs

II.II. ANALISYS AND IMPROVEMENTANALISYS AND IMPROVEMENTA.A. AnalysisAnalysis

Market price of office rental keeps remained or dropping.

The operation cost keeps increasing because of electricity, water, gasoline, labour cost, Vietnam Dong depreciation…

Many suppliers ask for increasing prices because of increase of material and operation cost

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2011 ANNUAL REPORT - General Affairs

II.II. ANALISYS AND IMPROVEMENT (cont’d)ANALISYS AND IMPROVEMENT (cont’d)B.B. ImprovementImprovement

Office rental market is going down, GA Dept’s keep negotiating with Landlords to reduce rental when time comes even not mentioned in the contracts.

Cost control should be continued tightly and announced more publicly.

Negotiation skill with suppliers should be enhanced more through training courses and daily practice

35

2011 ANNUAL REPORT - General Affairs

III.III. PLAN 2012PLAN 2012 Accommodation for new GA model : support some

furniture and equipments if possible.

Adjust the office using area more properly and efficiently.

Review current suppliers and finding better suppliers who is more competent and reliable.

Keep monitoring the rental market to negotiate the rental price if possible.

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2011 ANNUAL REPORT - General Affairs

III.III. PLAN 2012 (cont’d)PLAN 2012 (cont’d)

Cooperate with PR Department to keep good relationship with related Authorities, Landlords…

Find solutions for better cost control.

Cooperate with IT Division to apply online Asset management system on BCS.

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38

39

Reviews Terms & Conditions approved in 2011

1

2

3

4

5

40

Reviews Terms & Conditions - Follow up

1

2

3

4

5

6

7

8

41

ReviewsCompany Regulations

Make sure all the company’s operations and policies will follow the Vietnamese rules

42

ReviewsLegal consultancy & Policy

2

1

3

43

Strength:

Most of staffs are young & willing to learn

Weakness:

• The legal staffs have not much experience in life insurance area

• Legal staffs have many difference ideas in T&C• The Vietnamese regulations are changed frequently. Every

depts. should pay attention to relevant issues.

Analysis & Improvement

44

SOLUTIONS:

Set standard of common articles for applying to new products

Organize internal training course and seminar to improve legal skills and knowledge in life insurance area

Legal Dept. will update frequently new regulations and remind relevant depts.

Analysis & Improvement

45

Improve legal skills and life insurance knowledge of the legal staffs

Follow up reviewing new products

Set standard of common articles for applying to the new products

Follow up lawsuits