CARD MRI MICROINSURANCE PROGRAM

1. CARD MRI MICROINSURANCE PROGRAM Jaime Aristotle B. Alip, Ph.D. Founder and Managing Director, CARD MRI May 7-8, 2007 Sheraton Rio Hotel, Rio de Janeiro, Brazil

2. CARD MRI Vision CARD MRI is the global leader in the microfinance industry owned and led by members upholding the core values of excellence, competence, integrity, family spirit, humility, and simplicity.

3. CARD MRI Mission • CARD MRI is committed to: • Build sustainable financial and capacity building institutions owned and led by socially and economically challenged families; • Provide continued access to integrated microfinance and social development (credit with education,leadership with a heart, innovative community programs) services to an expanding membership base by organizing and empowering women and their families; and • Continue upholding the highest standards of stewardship of financial, human and institutional resources.

4. CARD MUTUALLY REINFORCING INSTITUTIONS CARD CARD Housing MRI BDS Company Geared Toward Raching A Total Of One Million Members By 2009

5. The Business Model

6. CARD NGO Branches are the “marines” of the CARD MRI and when it matures, they are transferred to the bank as part of the structure of the bank. • All members of the CARD NGO and CARD Bank branches are insured under the CARD MBA. • CMDI is the capacity building arm and supplies staff for all the CARD MRI: the CARD NGO, CARD Bank, and the CARD MBA.

8. Comptrollership Department CARD MRI SUPPORT UNITS

9. CARD MRI Performance as of December 2006 Operations Update • Total No. of Clients Served for the Year 300,487 • No. of Active Members including Savers 263,873 • No. of Active Clients with Loans 247,782 • No. of Insured Persons 1,486,692 • Amount of Loans Disbursed P 2,989,188,200.00 $59.80M • Amount of Loans Outstanding P 1,124,603,838.00 $22.49M • Amount of Savings P 600,406,552.00 $12.00M • Repayment Rate 98.51% • No. of Staff 1,709 Employees 1,539 MBA Coordinators 170 • No. of Offices 296 Branches 232 Partners 2 Office Units 50 Provincial Offices 5 Head Offices 4 MRI Office 1 BDS Office 1 Liaison Office 1 (Cambodia)

10. CARD MRI Performance as of December 2006 Financial Update • Total Asset P 1,777,946,051.00 $35.56M • Total Liabilities P 1,245,816,192.00 $24.92M • Total Equity P 532,129,858.00 $10.64M • Operational Self-Sufficiency 116.53% • Financial Self-Sufficiency 108.13% • Return on Assets 5.29% • Return on Equity 11.03%

11. Origins of the CARD MBA • Early 1990’s – a survey was conducted by CARD Inc. to assess the potential new services that members wanted which resulted as the access to life insurance as the most favored. • April 1994 - Members’ Mutual Fund (MMF) to provide loan balance coverage plus burial assistance in the case of death of the borrower amounting to US$55-91 based on the weekly premium of US$ 0.04

12. Origins of the CARD MBA • 1998 – CARD’s External Auditors advised the management that the pension situation was financially unsustainable. • September 1999 – CARD MBA was registered with the SEC • May 22, 2001 – CARD MBA was officially licensed by the Insurance Commission

13. WHY MICROINSURANCE ? CARD Mutual Benefit Association, Inc. • MICROINSURANCE • is another weapon for poverty alleviation. for micro-entrepreneurs. SAFETY NET 2.MICROINSURANCE is a • In most cases, some commercial insurance companies dare not • to touch the micro-entrepreneurs because of the size of THEIR BUSINESS.

14. HOW MICROINSURANCE WORKS ? CARD Mutual Benefit Association, Inc. Without Microinsurance… DEATH RESOURCES (+) 0 TIME (-)

15. HOW MICROINSURANCE WORKS ? CARD Mutual Benefit Association, Inc. With Microinsurance as SAFETY NET . DEATH RESOURCES 100 K THIS PORTION WILL BE LEFT FOR THE BENEFICIARY (+) 0 TIME (-)

16. ALTERNATIVE MICROINSURANCE STRUCTURES Cooperative Microinsurance In-house Microinsurance The CARD MBA Model Commercial Microinsurance Commercial Insurance Agent Model

17. WHY MUTUAL BENEFIT ASSOCIATION? CARD Mutual Benefit Association, Inc. BOARD OF TRUSTEES COMPOSED OF MEMBERS WHO KNOW THE NEEDS OF THEIR CO-MEMBERS BOARD OF DIRECTORS COMPOSED OF PRIVATE INDIVIDUALS (MOSTLY THE RICH) POLICY MAKING BODY ORIENTATION SERVICE TO THE MEMBERS PROFIT • PAID CONTRIBUTIONS STAYED • WITH THE ASSOCIATION • LEVEL CONTRIBUTIONS, LEVEL BENEFITS • PAID PREMIUM IS GONE FOREVER • THE HIGHER PREMIUM YOU PAY, • THE HIGHER BENEFIT • YOU CAN GET CONTRIBUTIONS / PREMIUMS • FUNDS WILL GROW • FUNDS OF THE ASSOCIATION CAN BE A SOURCE OF FUND • FOR LENDING ACTIVITIES • WILL BE RICHER AT THE EXPENSE • OF THE HARD EARNED MONEY OF • THE CLIENTS NO CLAIM HAS TO SHELL OUT LOT OF FUNDS BUT BANKRUPTCY CAN BE AVOIDED THRU REINSURANCE FACILITIES CATASTROPHIC LOSS

18. WHY MUTUAL BENEFIT ASSOCIATION? CARD Mutual Benefit Association, Inc. PARTICULARS MUTUAL BENEFIT ASS’N (MBA) COMMERCIAL INSURANCE COMPANY • CAN BE DONE AS EARLY AS 1 TO 3 DAYS FROM THE TIME OF NOTIFICATION BUT NO LONGER THAN ONE WEEK IF CLAIMS DOCUMENTS ARE COMPLETE. • MOST INSURANCE COMPANIES CAN • SETTLE CLAIMS AS EARLY AS ONE • MONTH PAYMENT OF CLAIMS • SEVERAL DOCUMENTS ARE REQUIRED AND VARY FROM ONE INSURANCE COMPANY TO ANOTHER • SIMPLIFIED DOCUMENTATION ONLY THE POLICY HOLDER WITH OPTION TO COVER FAMILY MEMBERS BUT WITH ADDITIONAL PREMIUM ALL LEGAL DEPENDENTS OF THE MEMBERS ARE COVERED COVERAGE MBAs CAN WORK WELL WITH THE COMMERCIAL INSURANCE COMPANIES THROUGH REINSURANCE TREATIES

19. Thank you! CARD MRI CONTINUOUSLY PUSHING FRONTIERS @ 20