During the year, we rolled out the 'Golden Years Income Plan' and several investment-linked insurance plans, including 'Wealth FlexiProtector,'* 'Treasure Master,'* and 'Treasure Accumulator,'* aimed at meeting the different needs of different customers.

We launched a 10-year customer program to express our appreciation to the loyal customers who have been with AIA for 10 years or more. We also initiated various Manchester United promotions in 2007, and the responses we received for these promotions were overwhelming. This year, we will endeavour to continue this momentum by rolling out more promotions associated with this renowned football club.

To celebrate our 75^th anniversary, we sponsored the 'AIA Hong Kong World Carnival' from December 2006 to April 2007. We organized an AIA Day at the carnival last March in which more than 10,000 of our customers, representatives and staff participated. In addition, the AIA Foundation organized the 'Carnival Dream Comes True' event with the Home Affairs Department of the Hong Kong SAR Government, giving 1,600 children from different charitable organizations the opportunity to enjoy all of the rides at the carnival.

At AIA, we understand that the current trend in financial planning is to offer comprehensive protection and wealth management solutions to customers. In 2008, we will focus on providing customers with professional and comprehensive financial analysis through our representatives. This type of analysis, together with our all-round wealth management solutions, will help our customers identify their financial goals and, hopefully, attain their targets.

At present, we have more than 2,000 representatives who have served AIA for 10 years or more. This demonstrates that our representatives regard their service with AIA as their life-long career and are committed to taking care of the diverse financial needs of our customers. Looking ahead, we will continue to provide quality products and wealth management solutions to our customers through these professional representatives. This will bring us closer to our corporate vision of 'AIA, Your 1^st Choice in LIFE'.

Derek Yung
Senior Vice President and General Manager
Hong Kong and Macau
American International Assurance Company (Bermuda) Limited

*As a consequence of the general nature of varied investments and possible exchange or interest rate fluctuations, the value of investments and their yields may go down as well as up. Please refer to Principal Brochure for detail information including fees and charges.

Thanks to our comprehensive product range and efforts in brand building, we received various prestigious awards in 2007. All of these awards represent a public vote of confidence in us. They also highlight our leadership in the market and bring us closer to our corporate vision of 'AIA, Your 1^st Choice in LIFE.'

Reader's Digest Trusted Brand Awards
AIA received the Reader's Digest Trusted Brand Awards for the fourth consecutive year, and was awarded Gold Awards for both Hong Kong and Asia in 2007. These awards not only represent a public vote of confidence in our quality products and services, but also demonstrate significant recognition of our efforts in image and brand building.

The Reader's Digest Trusted Brands survey was carried out by Nielsen Media Research. Consumers in Hong Kong, India, Malaysia, the Philippines, Singapore, Taiwan, and Thailand are surveyed through questionnaires and telephone interviews. The survey respondents were asked to name their most trusted brand in each of the 43 identified product categories and give each brand they named a rating on six qualitative criteria: Trustworthiness, Credible Image, Quality, Value, Understanding of Customer Needs, and Innovation. Brands that score above their competitors would each be awarded with a Gold Award.

Hong Kong Superbrands Awards
We were awarded with the Best Overall International Brand for the second consecutive year at the Hong Kong Superbrands 2006/2007 awards. In addition, we attained the Finance Category Award for the fourth consecutive year. Both awards represent a significant recognition of our quality services and strong brand awareness.

The Superbrands Awards were organized by Superbrands International to distinguish those companies that have successfully established and maintained quality brand performance. A strict selection procedure was adopted based on the criteria of market dominance, customer loyalty, goodwill, longevity, and overall market acceptance.

Yahoo! Emotive Brand Awards
For the fourth consecutive year, AIA won the Yahoo! Emotive Brand Awards (Insurance Category). Yahoo! Emotive Brand Awards were offered to the brands in various industries that were the most appealing to the general consumers in Hong Kong.

A research firm Synovate was commissioned to collect nominations from professionals in the marketing and advertising fields and from executives in various industries. These nominations were then rated by a panel before being presented for online voting by the public. There were more than 500,000 online votes on 251 brand nominations in 19 industries for year 2007. The top three companies that received the highest number of votes in each industry were the winners for that industry.

Customer Service Excellence Award
At the Customer Service Excellence Award organized by the Hong Kong Association for Customer Service Excellence, our staff from the customer service department won the Bronze Award in the Counter Service Category under the Individual Award Category. The award was a recognition of our efforts to drive service excellence.

More than 80 nominations were collected from various organizations, such as The Chinese General Chamber of Commerce, The Chinese Manufacturers' Association of Hong Kong and the Hong Kong Small & Medium Enterprises General Association. The four judging criteria were: diversity in choice of products or services, quality of products or services, value for money, and excellence in customer service. There was one awardee in respect of each of the 14 industries. AIA was the winner in the insurance category.

Manchester United Customer Promotions
American International Group, Inc. (AIG) is the principal sponsor of Manchester United. As a subsidiary of AIG, AIA launched a series of Manchester United customer promotions in 2007, including 'A Dream Come True for Manchester United Fans, Experience the Power of the Red Devils LIVE.'

In 2007, we also launched a 'Manchester United' Lucky Draw to express our appreciation to the loyal customers who have patronised AIA for 10 years or more. Five winners had enjoyed a trip to Old Trafford to watch Manchester United play Liverpool on March 22, 2008. Another 700 winners had each received a Manchester United/AIG travel bag.

AIA will continue to roll out more Manchester United promotions in 2008. In January 2008, we launched an interactive advertisement on Now TV. The audience of Now TV only had to answer a few simple questions and follow some straightforward instructions to be eligible for a coverage of 'Accidental Death Benefit' policy, and they would also be entitled to participate in a lucky draw. Four winners of the lucky draw had enjoyed a trip to Old Trafford to watch Manchester United play Liverpool on March 22, 2008, together with the five winners of the 'Manchester United' Lucky Draw described above.

'Young Leaders Development Program 2007'
The 'Young Leaders Development Program' (the “Program”) is a flagship educational program organized by the AIA Foundation. Over the past 11 years, the Program has nurtured more than 300 young leaders in Hong Kong.

The theme of the Program for 2007 was 'Redefining Leadership for Future Leaders.' Thirty-three students from Hong Kong's seven local universities were selected to participate in the Program for 2007. Over five months, these 33 participants took part in a series of training programs, including a leadership workshop, an orientation training camp, a social service workshop, a professional image workshop, and an adventure training camp. An overseas study tour was also arranged for these young leaders to experience the life and culture of Singapore and to broaden their horizons.

The 'Speakers' Platform' is another focus of the Program. Last year, five distinguished guests were invited to share their keys to success with these young leaders. The guest speakers were Mr. T.C. Cheng, Executive Vice President and Regional Senior Life Executive, American International Assurance Company Ltd.; Prof. Paul Chu, President of the Hong Kong University of Science and Technology; Mr. Stephen Chan, General Manager of Broadcasting, Television Broadcasts Limited; Ms. Christine Fang, Chief Executive of the Hong Kong Council of Social Service; and Mr. Douglas Young, Chief Executive Officer of G.O.D.

Towards the end of the Program, these 33 young leaders were required to complete a research project.  The project involved requiring each young leader to submit a detailed proposal, prepare a written report and design materials and present the research project at a presentation seminar. 

The awards ceremony of the Program was held on September 24, 2007. Each of these 33 young leaders received a Certificate of Award. The City University of Hong Kong performed exceptionally well and won the 'The Most Outstanding Team Award' and the 'Best Report-Writing Award.' Ms. Jo Kwok, a business student at the City University of Hong Kong, won 'The Most Outstanding Young Leader Award.' The Chinese University of Hong Kong excelled in the research project and won the 'Best Presentation Award.'

MSF Orienteering Competition 2007
The AIA Foundation has supported the MSF Orienteering Competition, a fundraising event organized by Médecins Sans Frontières (MSF), for the past six years. Through this event, the AIA Foundation has so far helped MSF raised more than HK$1.3 million, with over 1,200 participants.

In 2007, the AIA Foundation raised around HK$370,000 in the MSF Orienteering Competition. With this record-breaking donation, the AIA Foundation was presented with an 'Excellent Organization Fundraising Award' and an 'Organization Fundraising Award.' AIA Foundation participants also won an 'All Categories Champion Award.'