Page 5 - ASCOT GROUP COMPLETE DOCUMENT (2)

It is therefore the opinion of Ascot Life, that by establishing one Chinese life company, in just one highly
regulated international cross border jurisdiction, where it is able to sell and access investors and
policyholders from intentional markets around the world, it will ensure a measured and controlled roll
out of performing products, thus not only reducing risk to China’s reputation, but in fact, guaranteeing
its success.

Chinese Expatriate Market

With large communities of Chinese expatriates located throughout the world (in excess of 50 million),
there is a prime opportunity to provide international tailored products, from a specialist life assurance
company to suit the specific needs of Chinese expatriates, whilst also giving them the opportunity to
support China’s growth, and increase capital flow into China. All products and ongoing services could
be marketed in their native language rather than seeking financial planning and advice in a foreign
country where the products are designed for local investors. The main markets to target would be the
emerging markets where the need for products from a stronger, more regulated and robust
jurisdiction would provide the necessary security and flexible platforms to diversify into multiple
currencies and asset classes.

The policies could be designed and structured in conjunction with the relevant Chinese authorities to
ensure there would be no penalties for repatriation - if for example a policyholder wanted to return to
China for their retirement in the future whilst still holding the international life policy. Perhaps, taking
it a step further, by providing certain tax breaks to encourage repatriation (many developed countries
already have international products designed for nationals living and working overseas, which they can
‘bring home’ with them when they return) - essentially a compliant and compatible international
Chinese product.

The size of this unique and untapped market alone would justify the required investment into the
international and cross border wealth management and life assurance markets by a Chinese life
assurance company.