MIRA
INFORM REPORT
|
Report Date : |
13.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
BIRLA SUN LIFE INSURANCE COMPANY LIMITED |
|
|
|
|
Registered Office : |
One Indiabulls
Centre, Tower 1, 15th and 16th Floor, Jupiter Mill
Compound, 841, S B Marg, |
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Country : |
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|
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
04.08.2000 |
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Com. Reg. No.: |
11-128110 |
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|
Capital Investment / Paid-up Capital : |
Rs.19695.000 millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
U99999MH2000PLC128110 |
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|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMB08828B |
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|
Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Providing Life Insurance Solutions, Policies etc. |
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No. of Employees : |
12101 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (41) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 16881060 |
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|
|
|
Status : |
Satisfactory |
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|
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a Birla group company. It is a well established and a
reputed company in the private sector. There appears to be some losses incurred
by the company. However business is active. Payments are reported to be
usually correct and as per commitments. In view of strong promoters, the company can be considered normal for
business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION declined by
Note : Management not co-operative [ Name not disclosed]
LOCATIONS
|
Registered Office : |
One Indiabulls
Centre, Tower 1, 15th and 16th Floor, Jupiter Mill
Compound, 841, S B Marg, |
|
Tel No.: |
91-22-43569000 |
|
E-Mail : |
puneet.bansall@birlasunlife.com |
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Website: |
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Corporate Office : |
Vaman Centre, 6th Floor, |
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Tel. No.: |
91-22-6678 3333 / 6678 3262 |
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Fax No.: |
91-22-6678 3262 / 66923232 |
|
E-Mail : |
bsli@birlasunlife.com
/ clientservices@birlasunlife.com
/ rahulsinha@birlasunlife.com / grouphelpline@birlasunlife.com puneet.bansall@birlasunlife.com |
|
Website : |
DIRECTORS
AS ON 16.06.2010
|
Name : |
Mr. Donald A. Stewart |
|
Designation : |
Chairman |
|
Address : |
|
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Date of Birth/Age : |
06.11.1948 |
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Date of Appointment : |
24.12.2000 |
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|
Name : |
Mr. Kumar Mangalam Birla |
|
Designation : |
Director |
|
Address : |
Mangal Aditnarayan , |
|
Date of Birth/Age : |
14.06.1967 |
|
Date of Appointment : |
04.08.2000 |
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|
|
|
Name : |
Mr. Bishwanath N. Puranmalka |
|
Designation : |
Director |
|
Address : |
Antariksh Flat No. 182 19rth Floor, 95/96, |
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Date of Birth/Age : |
02.11.1935 |
|
Date of Appointment : |
04.08.2000 |
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|
Name : |
Mr. Gian P. Gupta |
|
Designation : |
Director |
|
Address : |
101, Kaveri B Wing, Neelkanth, Valley, 7thg Road,
Rajawadi, Ghatkopar (E), Mumbai – 400 077, |
|
Date of Birth/Age : |
11.01.1941 |
|
Date of Appointment : |
11.09.2001 |
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|
Name : |
Mr. Suresh N. Talwar |
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Designation : |
Director |
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Address : |
10, Shiv Shanti Bhavan, 146 Maharishi Karve road, Churchgate
Reclamation, Mumbai – 40 020, |
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Date of Birth/Age : |
21.11.1938 |
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Date of Appointment : |
11.09.2001 |
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|
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|
Name : |
Mr. Stephen Rajotte |
|
Designation : |
Director |
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Address : |
43A, Branksome,
Crest, 3A Tregunter path, |
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Date of Birth/Age : |
24.04.1960 |
|
Date of Appointment : |
16.10.2006 |
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|
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|
Name : |
Mr. Ajay Srinivasan |
|
Designation : |
Director |
|
Address : |
91/101, Narlan Terrace, 7 and 8 Floor, |
|
Date of Birth/Age : |
02.11.1963 |
|
Date of Appointment : |
01.08.2007 |
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|
|
|
Name : |
Mr. Venkatesh S. Mysore |
|
Designation : |
Director |
|
Address : |
|
|
Date of Birth/Age : |
30.12.1958 |
|
Date of Appointment : |
01.01.2008 |
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|
Name : |
Mr. Rakesh Jain |
|
Designation : |
Director |
|
Address : |
110/2, A wing, Quantum Park, Union Park Road, Khar West,
Mumbai – 400052, Maharashtra, India |
|
Date of Birth/Age : |
19.01.1961 |
|
Date of Appointment : |
10.11.2009 |
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|
|
|
Name : |
Tarjani Vakil |
|
Designation : |
Director |
|
Address : |
A-1, |
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Date of Birth/Age : |
30.10.1936 |
|
Date of Appointment : |
10.11.2009 |
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|
|
|
Name : |
Dikran Ohannessian |
|
Designation : |
Director |
|
Address : |
244, The Kingsway, Etobicoke on, |
|
Date of Birth/Age : |
11.12.1953 |
|
Date of Appointment : |
23.01.2010 |
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|
|
|
Name : |
Puneet Manoharlal Bansall |
|
Designation : |
Secretary |
|
Address : |
Flat 1502-1503, 15 Floor, Building 3A, Dreams Bhandup
(West), Mumbai – 400078, |
|
Date of Birth/Age : |
25.12.1970 |
|
Date of Appointment : |
04.12.2008 |
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KEY EXECUTIVES
|
Name : |
Mr. Vikram
Mehmi |
|
Designation : |
President and Chief Executive Officer |
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|
|
Name : |
Mr. Mayank
Bathwal |
|
Designation : |
Chief Financial Officer |
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|
Name : |
Mr. Chander
Chellani |
|
Designation : |
Chief Distribution Officer |
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|
Name : |
Mr. Amitabh
Verma |
|
Designation : |
Chief Operating Officer |
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|
Name : |
Mr. Vikram
Kotak |
|
Designation : |
Chief Investment Officer |
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|
|
Name : |
Mr. Fabien
Jeudy |
|
Designation : |
Chief Actuarial Officer and Appointed Actuary |
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|
Name : |
Ms. Vinni
Soni |
|
Designation : |
Head - Group Business |
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|
Name : |
Mr. Saurov
Ghosh |
|
Designation : |
Head - Human Resources |
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|
Name : |
Mr. Prem Prakash |
|
Designation : |
Head – Health |
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|
Name : |
Ms. Anjana
Grewal |
|
Designation : |
Senior Vice President - Marketing and Communications |
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|
Name : |
Mr. Snehal
Shah |
|
Designation : |
Senior Vice President - Special Projects |
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|
Name : |
Mr. Amit
Punchhi |
|
Designation : |
Senior Vice President - Third Party Distribution |
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|
|
Name : |
Mr. Rajesh
Bhojani |
|
Designation : |
Senior Vice President - DSF Expansion |
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|
Name : |
Mr. Lalit
Vermani |
|
Designation : |
Vice President – Compliance |
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|
Name : |
Mr.
Bhalachandra Nayak |
|
Designation : |
Vice President - Strategy |
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|
Name : |
Mr. Puneet Manoharlal Bansal |
|
Designation : |
Director |
|
address: |
Flat 1502-1503 15 Floor, Bldg, 3A Dreams, Bhandup (W),
Mumbai – 400 078, |
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Date of Birth/Age : |
25.12.1970 |
|
Date of Appointment : |
04.12.2008 |
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|
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Investment Committee : |
|
|
|
Mr. Ajay Srinivasan |
|
|
Mr. B. N. Puranmalka |
|
|
Mr. Eugene Lundrigan |
|
|
Mr. Fabien Jeudy |
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|
Ms. Keerti Gupta |
|
|
Mr. Mayank Bathwal |
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|
Mr. Vikram Kotak |
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|
Mr. Vikram Mehmi |
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|
|
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Audit Committee : |
Mr. Bishwanath N. Puranmalka |
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|
Mr. Ajay Srinivasan |
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|
Mr. Stephan Rajotte |
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|
Mr. Gian P. Gupta |
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|
Mr. Venkatesh S. Mysore |
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|
|
|
Name : |
Mr. Rahul Sinha |
|
Designation : |
Marketing Executive |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 16.06.2010
|
Names of Shareholders |
|
No. of Shares |
|
Aditya Birla Nuvo Limited, Mumbai |
|
1457429995 |
|
Sun Life Financial ( |
|
512070000 |
|
Anil Rastogi Jointly with Aditya Birla Nuvo Limited, Mumbai |
|
1 |
|
BN Puranmalka Jointly with Aditya Birla Nuvo, Limited, Mumbai |
|
1 |
|
Sushil Agarwal Jointly with Aditya Birla Nuvo Limited, Mumbai |
|
1 |
|
Manoj Kedia Jointly with Aditya Birla Nuvo Limited, Mumbai |
|
1 |
|
Devendra Bhandari Jointly with Aditya Birla Nuvo Limited, Mumbai |
|
1 |
|
Total |
|
1969500000 |
AS ON 16.06.2010
|
S. No. |
Category |
Percentage |
|
1 |
Foreign holdings( Foreign institutional investor(s),
Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s)
or Overseas Corporate bodies or Others |
26.00 |
|
2 |
Directors or
relatives of Directors |
0.00 |
|
3 |
Bodies corporate |
74.00 |
|
4 |
Other top fifty shareholders |
0.00 |
|
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Life Insurance Solutions, Policies etc. |
GENERAL INFORMATION
|
No. of Employees : |
12101 (Approximately) |
|
|
|
|
Bankers : |
Not Available |
|
|
|
|
Banking Relations
: |
-- |
|
|
|
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Auditors : |
|
|
Name 1 : |
Khimji Kunverji and Company Chartered Accountants
|
|
Address : |
|
|
PAN No.: |
AAAFK1142N |
|
|
|
|
Name 2 : |
Fraser and Ross Chartered Accountant |
|
Address : |
Deloitte Centre, |
|
Pan No.: |
AAAFF0644S |
|
|
|
|
Holding company : |
Aditya Birla Nuvo Limited CIN: L17199GJ1956PLC001107 |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3750000000 |
Equity Shares |
Rs.10/- each |
Rs.37500.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1969500000 |
Equity Shares |
Rs.10/- each |
Rs.19695.000
millions |
Note:
Of the above 1457430000 equity Shares
(Previous year: 1390830000 Equity Shares) of Rs.10/- each are held by Aditya Birla
Nuvo Limited, the holding company.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
19695.000 |
18795.000 |
12745.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4800.000 |
1200.000 |
0.000 |
|
|
4] (Accumulated Losses) |
(20275.040) |
(15920.075) |
(8898.718) |
|
|
5] credit/(Debit) / Fair
Value Change account |
0.305 |
0.204 |
0.101 |
|
|
NETWORTH |
4220.265 |
4075.129 |
3846.383 |
|
|
|
|
|
|
|
|
POLICYHOLDERS FUNDS |
|
|
|
|
|
Credit/(Debit) Fair Value Change Account |
0.654 |
0.099 |
0.149 |
|
|
Policy Liabilities |
7860.786 |
3999.354 |
1888.360 |
|
|
Insurance Reserves |
-- |
-- |
-- |
|
|
TOTAL BORROWING |
7861.410 |
3999.453 |
1888.509 |
|
|
|
|
|
|
|
|
Provision for linked liabilities |
136542.641 |
86979.274 |
65259.840 |
|
|
Credit/(Debit) Fair Value Change Account |
9130.333 |
(5009.905) |
(2301.609) |
|
|
TOTAL LINKED LIABILITIES |
145672.974 |
81969.369 |
62958.231 |
|
|
|
|
|
|
|
|
Funds For Future Appropriation |
|
|
|
|
|
Linked Liabilities |
2984.244 |
1289.584 |
258.811 |
|
|
TOTAL |
160738.920 |
91333.535 |
68951.934 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
698.167 |
844.269 |
710.393 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
5043.972 |
4670.115 |
4222.791 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Shareholders |
10581.669 |
5044.186 |
1746.388 |
|
|
Assets held to cover linked liabilities
|
145672.974 |
81969.369 |
62958.231 |
|
|
Loans |
265.468 |
223.516 |
149.932 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000
|
0.000
|
|
|
Sundry Debtors |
0.000
|
0.000
|
0.000
|
|
|
Cash & Bank Balances |
0.000
|
0.000
|
0.000
|
|
|
Other Current Assets |
5697.972
|
5189.719
|
4125.935
|
|
|
Loans & Advances |
1215.350 |
1044.299 |
701.353 |
|
Total
Current Assets |
6913.322
|
6234.018
|
4827.288
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3442.403
|
2818.804
|
2125.032
|
|
|
Current Liabilities |
4671.108
|
4580.776
|
3260.925
|
|
|
Provisions |
323.141
|
252.358
|
277.132
|
|
Total
Current Liabilities |
8436.652
|
7651.938
|
5663.089
|
|
|
Net Current Assets |
(1523.330)
|
(1417.920)
|
(835.801)
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
160738.920 |
91333.535 |
68951.934 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
Premium Earned –
Net |
|
|
|
|
|
a) Premium |
55056.579 |
45718.041 |
32571.331 |
|
|
b) Reinsurance Ceded |
(802.949) |
(551.663) |
(340.618) |
|
|
c) Reinsurance accepted |
-- |
-- |
-- |
|
|
Sub-total |
54253.630 |
45166.378 |
32230.713 |
|
|
|
|
|
|
|
|
Income
from investments |
|
|
|
|
|
a) interest, Dividend and Rent – Gross |
5215.712 |
3884.537 |
2504.489 |
|
|
b) Profit on sale / Redemption of investments |
24129.090 |
3279.011 |
6315.413 |
|
|
c) (Loss) on sale / Redemption of investments |
(3410.918) |
(11161.291) |
(1022.751) |
|
|
d) transfer/Gain (Loss) on revaluation / change in fair value |
14140.238 |
(2708.296) |
(2917.703) |
|
|
e) Gain / (Loss) on Amortisation |
(42.599) |
(0.607) |
(6.533) |
|
|
Sub-Total |
40031.523 |
(6706.646) |
4872.915 |
|
|
|
|
|
|
|
|
Other Income |
|
|
|
|
|
a) contribution from the shareholders account |
4797.493 |
7639.899 |
4941.042 |
|
|
b) others (interest etc.) |
143.486 |
170.850 |
100.150 |
|
|
Sub-Total |
4940.979 |
7810.749 |
5041.192 |
|
|
Total (A) |
99226.132 |
46270.481 |
42144.820 |
|
|
|
|
|
|
|
|
Commission |
2161.974 |
4817.880 |
3355.538 |
|
|
Operating expenses related to insurance business |
13267.526 |
12487.623 |
6707.323 |
|
|
Provision for Doubtful debts |
-- |
-- |
-- |
|
|
Bad debts written off |
-- |
-- |
-- |
|
|
Provision for tax |
-- |
61.500 |
37.500 |
|
|
Provision (other than taxation) |
-- |
-- |
0.781 |
|
|
a) for diminution in value of investments (net) |
-- |
-- |
-- |
|
|
b) others |
-- |
-- |
-- |
|
|
Total (B) |
18429.500 |
17367.003 |
10101.142 |
|
|
|
|
|
|
|
|
Benefits paid (Net) |
11387.815 |
6464.413 |
-- |
|
|
Interim Bonus Paid |
-- |
-- |
|
|
|
Change in valuation of liabilities in respect of life policies |
|
|
|
|
|
a) Gross |
68324.963 |
21245.680 |
27517.006 |
|
|
b) (Amount ceded in Re-insurance) |
(759.928) |
(123.547) |
(289.326) |
|
|
c) Amount accepted in Re-insurance |
-- |
-- |
-- |
|
|
Total (C) |
78952.850 |
27586.546 |
31524.480 |
|
|
|
|
|
|
|
|
Surplus / (Deficit) (D)= (A)-(B)-(C) |
1843.782 |
1316.932 |
519.198 |
|
|
Appropriations |
|
|
|
|
|
Transfer to shareholders account |
149.123 |
286.159 |
260.674 |
|
|
Transfer to other reserves |
-- |
-- |
-- |
|
|
Balance being funds for future appropriation |
1694.659 |
1030.773 |
258.524 |
|
|
Total (D) |
1843.782 |
1316.932 |
519.198 |
|
|
|
|
|
|
|
|
The total surplus mentioned below |
|
|
|
|
|
a) interim Bonuses paid |
-- |
-- |
-- |
|
|
b) allocation of bonus to policyholders |
-- |
-- |
-- |
|
|
c) surplus/(Deficit) shown in the revenue account |
1694.659 |
1030.773 |
258.524 |
|
|
Total Surplus
[(a)+(b)+(c)] |
1649.659 |
1030.773 |
258.524 |
|
|
|
|
|
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.16 |
1.47 |
0.08 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.81 |
0.81 |
0.85 |
LOCAL AGENCY FURTHER INFORMATION
sundry creditors details:-
|
Particulars
|
31.03.2010 Rs. In Millions |
31.03.2009 Rs. In Millions |
31.03.2008 Rs. In Millions |
|
Sundry Creditors * |
3442.403
|
2818.804
|
2125.032
|
Note:
- There are no
Micro, small and Medium Enterprises to whom the company owes dues, which
are outstanding for more than 45 days as at 31st March 2010. This
information as required to be disclosed under the Micro, small and Medium
Enterprises Development Act, 2006 has been determined to the extent such
parties have been identified on the basis of information available with
the company.
BACKGROUND:
Birla Sun Life Insurance Company
Limited (‘the company’), headquartered at Mumbai, had Commenced operations on
19th March 2201, after receiving the license to transact life
insurance business in India from the Insurance Regulatory and Development
Authority (‘IRDA’) on 31st January 2001. the license has been
renewed annually and is in force as at 31st March.
The company is a joint Venture
between Aditya Birla Nuvo Limited, a company of the Aditya Birla Group of
FINANCIAL PERFORMANCE:
The Company
completed its 10th year of successful operations this year. A decade after the
private sector was allowed into the life insurance industry, the landscape has
changed completely.
In terms of total
premium revenue, the Company achieved Rs. 55,057 Mn registering a growth of 20%
in FY10.
Given the uncertain
economic conditions at the start of the financial year and focus on profitable
growth, the Company started FY10 with a thrust on driving higher productivity
through existing capacities, growing alternate channels and maintaining its
superiority on the products front by launching innovative products. The
Insurance Regulatory and Development Authority (IRDA) guidelines on ‘Capping on
charges’ necessitated redesigning and launching new ULIP products and that had
some impact on sales in Q4. Given the strong performance in the first 9 months
of the year the Company ended the year with a positive sales growth of new
business at 2%.
The Company took
several steps to rationalize expenses across its operations to increase value to
the customer without compromising on profit margins in the medium to long term
The Company recorded
good performance across the range of key financial parameters as detailed
below:
• The total premium
at Rs. 55,057 Mn (including renewal premium of Rs. 25,456 Mn) grew by 20% over
the previous year.
• Net Loss was Rs.
4,355 Mn, significantly lower than the previous year’s loss of Rs. 7,021 Mn.
The reduction in losses is driven by profit from growing inforce business,
declining expense ratios and changes in product structures to reduce new
business strain.
• Lower losses led
to lower capital injection of Rs. 4,500 Mn in the year under review as compared
to Rs. 7,250 Mn in the previous year.
• The Company
maintained excellence in investment performance for its policyholders. For all
its unit linked funds, the Company delivered superior fund performance across
the board, consistently beating benchmarks.
BUSINESS REVIEW
Industry Scenario
The competitive
landscape has changed substantially since liberalization of the Indian
insurance industry in 2000 01. Currently, there are 22 private players in the
life insurance sector. The entry of private players has led to a strong growth
in distribution infrastructure as evident from an increase in the branch network
from 2,199 branches in FY01 to 11,931 branches in FY10 and growth in the
advisor base from 0.7 Mn in FY01 to 2.9 Mn in FY10. The private sector
registered a new business growth of 13% in FY10 as per IRDA data. However, the
year under review saw the share of the private sector decline from 48.4% in
FY09 to 42.6% in FY10. Top 7 private players’ share of the total private
players’ market share has remained constant at around 80% in the past 2 years.
At the end of the
year under review, the Company’s market share stood at 8.4% among private
players and 3.6% for the total market.
The Company
continues to be optimistic on the future potential of the Life Insurance
sector. It is essential to have a framework that promotes the growth of this
sector given the importance it holds for the economic development of the
country. As on December 2009, Investments in equities and fixed income
securities was USD 90 Bn and USD 170 Bn respectively.
Summary of
Operations and Business
• After recording
strong growth of more than 50% CAGR in the first seven years since opening up,
the life insurance sector has seen expected moderation of growth in the last
two years with growth tapering to 5% p.a. Several factors are responsible for
the change in the growth trajectory including uncertain economic environment,
focus on growth through higher productivity and efficiency thus slowing down
the creation of additional capacities, and conservation of capital.
• New business
annualized premium equivalent for the Company increased by 2% to Rs. 30,220 Mn
in FY10, in line with the private sector growth rate during the year. The
Company registered strong growth in the retail segment by issuing more than 1
Mn policies (excluding obligatory rural policies) for the first time since it
started operations. Our market share has grown from 5.3% in FY07 to 8.4% in
FY10.
• The total premium
income grew by 20% to Rs. 55,057 Mn, backed by a strong growth of 45% in
renewal premiums over the previous year.
• The Agency Channel
continues to be the Company’s largest distribution channel accounting for 68%
of the individual life business written in the year. The Agency channel has a
network spread across 632 branches with 169,572 advisors as on March ‘10. The
Channel added around 50 rural kendras in 1st half of FY10 to further strengthen
its presence in rural areas. Also, initiatives undertaken to improve
productivity across the sales force by way of segmentation and structured
training yielded satisfactory results, though the full impact is expected in FY
2010-11. Over the past few years, we have built a strong franchise in the
Corporate Agent and Broker segment. The segment saw a 19% growth during the
year under review and recorded new business sales of Rs. 4,173 Mn (previous year Rs. 3,505 Mn).
• The year under
review saw our Bancassurance channel deliver an APE of Rs. 3,858 Mn (previous
year Rs. 5,219 Mn). Given the strength of our bancassurance partners, our
innovative product offerings and the differentiated service model, we are
confident that this channel will continue to deliver superior
performance in the years ahead.
• The current year
saw Group business first year premium of Rs. 6,717 Mn (previous year Rs.
3,409 Mn), registering an impressive YoY growth of 97%. The Company, on account of its established
track record in this segment and superior investment performance, is one of the
preferred product and service providers for various large, medium and small
enterprises.
• The Company
continues to maintain an edge leadership in Product innovation. Some of the
product innovations introduced by the Company during the year included
Guaranteed Unitlinked products, Over–the-Counter products and Highest NAV
plans. Due to recent regulation changes on the capping of unit-linked product
charges, the Company revamped its product portfolio by building a competitive
suite of products that will help increase customer value proposition while
maintaining strong profitability. The Company sold a more profitable product
mix in FY10 and reduced its exposure to shorter pay products. During the year,
the Company launched 11 products, including 8 post the new IRDA regulations.
Some of the new product suites launched include Saral Solutions, Dream
Solutions & Titanium Plus.
• The Company has
been supporting social causes from the beginning of its operations. As in the
previous years, the Company not only complied with both rural and social
obligations as mandated by IRDA, but wrote 713,973 policies in the rural sector
which was well-above the mandatory requirements as mandated by IRDA’s
regulations on rural obligations. In addition to this the group insurance cover
under social obligation was written for 253,759 lives against the mandatory
requirement for 25,000 lives. The Company entered into strategic tie-ups with
micro-finance institutions through which it was able to sell products like Bima
Kavach and Bima Suraksha, which are primarily designed for the rural segment.
The Company will continuously strive to launch specific products designed for the
rural and semi-urban segment.
• Investment
performance across the range of fund offerings continued to be strong during
the year. Assets under Management grew from Rs. 9,168 crores to Rs. 16,129
crores, an increase of 76%. The Company continued to deliver superior
investment performance to its policyholders with every fund beating the
benchmark set. This ability to provide strong investment performance in both
good and bad market conditions is a key strength for the Company.
• They have focused
on a conscious strategy of capital conservation and improving profitability.
The endeavor to improve profitability and capital efficiency paid off well with
lower capital requirements and Net Loss, both reducing by about 38% vis a vis the previous year. The
year also saw an improvement in expense ratio i.e. from 28% in FY09 to 24% in
FY10. This was made possible on the back of several initiatives implemented to
optimize the cost structure.
• Their investment
in branding yielded good results with the brand recall score improving from 84%
to 93%.
• The Company
undertook several measures to further improve on all health metrics for the
business. The management recognizes improving persistency and maintaining and
growing a healthy inforce block of business as a key driver for profitability.
Apart from stressing on needbased selling, the Company has increased its
engagement with the customers, leveraging technology for efficient premium
collections over the tenure of the policies sold by it.
• The Company continues
to leverage technology for achieving its business goals and creating a robust
customer service platform for creating service differentiation in this market.
The Company has taken several steps towards developing a customer centric
culture and improving turnaround times by engaging exclusive call centers and
empowering its service assurance cell for effective query and complaint
management.
• The Company has
been proactive in maintaining the culture of compliance in order to minimize
the market conduct risks and to meet regulatory demands. The Company continues
to comply with all existing and new regulations which came in during the year,
the primary ones being the regulations on capping of charges and corporate
governance.
• The Company got
its results, assumptions and methodology for preparing Embedded Value (EV) and
VNB for FY09 peer reviewed by a international actuarial firm. It will continue
to set standards going forward by improving the disclosure standards around
reporting EV and VNB.
fixed assets:-
· Goodwill
· intangibles (Software’s)
· Land – Freehold Property
· Buildings
· Furniture And Fittings
· Information Technology
· Equipment
· Vehicles
· Office Equipment
· Others (Leasehold Improvements)
as per website details
PROFILE:
Established in 2000, Birla Sun Life Insurance Company Limited (BSLI) is
a joint venture between the Aditya Birla Group, a well known and trusted name
globally amongst Indian conglomerates and Sun Life Financial Inc, leading
international financial services organization from
With an experience of over 9 years, BSLI has contributed significantly
to the growth and development of the life insurance industry in
Known for its innovation and creating industry benchmarks,
BSLI has several firsts to its credit. It was the first Indian Insurance
Company to introduce “Free Look Period” and the same was made mandatory by IRDA
for all other life insurance companies. Additionally, BSLI pioneered the launch
of Unit Linked Life Insurance plans amongst the private players in
Add to this, the
extensive reach through its network of 600 branches and 1,75,000 empanelled
advisors. This impressive combination of domain expertise, product range, reach
and ears on ground, helped BSLI cover more than 2 million lives since it
commenced operations and establish a customer base spread across more than 1500
towns and cities in
PRESS RELEASE:
Birla Sun Life
Insurance gifts ‘Bachat Plan’ for
its traditional savers
Mumbai, May 03,
2010:
Birla Sun Life
Insurance Company (BSLI), one of
Salient features
of the Bachat Plan are:
·
Choose your Monthly Base Premium based on your
needs beginning with as little as Rs.400/-
·
Get Life Cover - Insure coverage for up to 180 x
the Monthly Base Premium
·
Get Bachat additions every year
·
Get loyalty additions every year
On the occasion of
the launch Mr. Fabien Jeudy, Chief Actuarial Officer, Birla Sun Life Insurance
said “This product will help customers save for their long term goals by saving
affordable amounts regularly along with safety and growth. This product is
targeted at customers who are not comfortable with market linked savings and
for whom safety and growth of savings is of importance”
About Birla Sun
Life Insurance :
Birla Sun Life
Insurance Company Limited (BSLI) is a joint venture between the Aditya Birla
Group, a well known Indian conglomerate and Sun Life Financial Inc, one of the
leading international financial services organization from
About Aditya Birla
Financial Services Group (ABFSG)
The Aditya Birla
Financial Services Group (ABFSG) has a significant presence across various verticals,
including life insurance, insurance broking, mutual funds, private equity,
security based lending, factoring, insurance advisory services, retail broking
and distribution of third party products.
The seven
companies representing Aditya Birla Financial Services Group are Birla Sun Life
Insurance Company Limited, Birla Sun Life Asset Management Company Limited,
Aditya Birla Capital Advisors Limited, Aditya Birla Money Limited, Aditya Birla
Money Mart Limited, Aditya Birla Finance Limited and Birla Insurance Advisory
and Broking Services Limited
The ABFSG is
committed to being a leader and role model in a broad based and integrated
financial services business. Its 7 lines of businesses, with over 4.5 million
customers manages assets worth USD 18 billion approximately and prides itself
for having a talent pool of over 15,000 committed employees. ABFSG has its
wings spread across more than 500 cities in
ABFSG is a part of
Aditya Birla Nuvo Limited (ABNL), a USD 3 billion conglomerate having
leadership position across its manufacturing as well as services sector
businesses. ABNL is a part of the Aditya Birla Group, a USD 29 billion Indian
business house operating in 25 countries across the globe.
About Sun Life
Financial Inc.
Sun Life Financial
is a leading international financial services organization providing a diverse
range of protection and wealth accumulation products and services to individuals
and corporate customers. Chartered in 1865, Sun Life Financial and its partners
today have operations in key markets worldwide, including
Birla Sun Life
Insurance receives BS 25999 Certification
First life insurance company in
Implies best practice for its ‘Business Continuity
Management System
Mumbai, March 02,
2010: Birla Sun Life Insurance Company (BSLI), one of
Business
Continuity Management System’ through the use of consistent processes, metrics
and methodologies enables the companies to provide a secure environment for
delivering high-quality services to its clients. Towards this, BSLI has always
focused on best business practices across all facets of its business with the
objective of delivering superior value to its customers.
Speaking on the
occasion, Mayank Bathwal, Chief Financial Officer, Birla Sun Life Insurance
said “Business Continuity Management has always been an integral part of BSLI’s
business strategy towards helping the company meet its strategic, operational,
contractual, legal and client commitments. The company has always laid
significant emphasis on building these robust processes towards creating an
organisation that is equipped to meet customers’ long-term financial needs,
with us”.
He further adds
“We are delighted to be adjudged the first BS25999 certified insurance company
in
Some
of the key features of BS25999 Certification:
·
Uninterrupted service to the customer
within acceptable level in event of a disaster eg: claims payment, refunds
payment in the event of a disaster/disruption
·
Ability to recover quickly to a
Business as usual scenario
·
Continued service to Channel Partners
within acceptable level
·
Sustained value creation for
shareholders
·
Meeting legal, client, contractual and
regulatory obligations at all times
·
Potential competitive advantage through
demonstrated ability to continue product or service delivery
·
Reduction of risk to revenue flows
·
Greater awareness within the entire
organisation of the business continuity/recovery procedures
·
Reduction of costs associated with
recovery from unplanned business interruptions
·
Channelised and rehearsed dissemination
of crisis communication
·
Helps protect the brand and reputation
About
Birla Sun Life Insurance
Birla
Sun Life Insurance Company Limited (BSLI) is a joint venture between the Aditya
Birla Group, a well known Indian conglomerates and Sun Life Financial Inc,
leading international financial services organization from
About
Aditya Birla Group
A US
$28 billion corporation, the Aditya Birla Group is in the league of Fortune 500
worldwide. It is anchored by an extraordinary force of 100,000 employees,
belonging to 25 different nationalities. The group operates in 25 countries
across six continents – truly
About
Sun Life Financial Inc.
Sun
Life Financial is a leading international financial services organization
providing a diverse range of protection and wealth accumulation products and
services to individuals and corporate customers. Chartered in 1865, Sun Life
Financial and its partners today have operations in key markets worldwide,
including
The
project has already been launched in
We are extremely
delighted at this unique opportunity to partner a prestigious international project and to work at the grass root level. With this New Year gift,
we are positioned to begin a new era in our service. As a partner, BSLI will
create awareness of the need of life insurance
among the Self Help Group Members formed under the project and thus generate demand for Micro Insurance
Products and make the insurance
plan accessible and affordable to that segment. Our objective is to provide social and financial security
to the SHG members,”
said Ajay
Srinivasan Chief Executive, Financial Services, Aditya Birla Group.
About Birla Sun
Life Insurance
Birla Sun Life Insurance (BSLI) has been operating for 7 years. It has
contributed significantly to the growth and development of the life insurance
industry in
About Aditya Birla Group
The Aditya Birla Group enjoys a leadership position in all the sectors
in which it operates. It is anchored by a force of 100,000 employees, belonging
to 25 nationalities. Its operations span 25 countries across six continents and
are reckoned as
Aditya Birla Group has a strong presence across various financial services
verticals that include fund management, distribution and wealth management,
security based lending, insurance broking, private equity and life insurance.
The consolidated revenues from these businesses crossed the US 1 billion dollar
mark, in 2007-08. In the first half of 2008-09, the financial services business
continued its strong momentum of growth with consolidated revenues crossing
Rs.20770 millions for the first half, up from Rs.14639.7 millions in the
corresponding period, last year.
Aditya Birla Financial Services Group has taken another step towards expanding
their footprint and financial offering by entering into an agreement with the
promoter family of Apollo Sindhoori to acquire a 56% stake in the company. The
acquisition will fast track their entry into retail broking and is in keeping
with its desire to be a broad based and integrated player, while further
strengthening their position as a manufacturer and distributor of value added
financial products and solutions.
About Sun Life Financial Inc.
Sun Life Financial Inc. is a leading international financial services
organization providing a diverse range of wealth accumulation and protection
products and services to individuals and corporate customers. Tracing its roots
back to 1865, Sun Life Financial and its partners today have operations in key
markets worldwide, including Canada, the United States, the United Kingdom,
Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda.
Overall, Sun Life has a high quality, diversified investment portfolio with
over $100 billion in invested assets as of June 30, 2008. Sun Life’s $60billion
bond portfolio is highly diversified across 1400 different borrowers around the
world and is rated 97% investment grade. Globally, Sun Life is in a solid
financial position, and maintains financial strength ratings which are amongst
the highest of all insurers in
AUM of
Birla Sun Life Insurance crosses Rs. 15,000 crore mark
Mumbai,
January 13, 2010:
Birla
Sun Life Insurance Company (BSLI), one amongst
Commenting
on the occasion, Mr. Vikram Kotak, Chief Investment Officer, Birla Sun Life
Insurance, said, “It gives us great pleasure to cross the new milestone of
Rs.150000 Millions of AUM, registering a strong yo- y growth of over 90% as on
January 2010. This growth is a reflection of the faith entrusted by our
policyholders in us. This achievement is notable especially in a year of
slow-paced growth on the back of global financial turmoil in fiscal 2009.
During the year, we have further widened our fund offerings to meet various
financial goals of policyholders with varying risk profiles. This has played an
instrumental role in growing our AUM. Currently, Equity constitutes 56% of our
ULIP AUM.”
He
further adds, “Investment performance is a critical yardstick to measure a
company's performance. All our funds have consistently outperformed their
respective benchmarks over the last 1-5 year period. Our investment strategy
remains focused on building a high quality portfolio by investing in companies
that have strong management, strong financial performance, scalable business
model and good growth visibility.”
About
Birla Sun Life Insurance
Birla
Sun Life Insurance Company Limited (BSLI) is a joint venture between the Aditya
Birla Group, a well known Indian conglomerates and Sun Life Financial Inc,
leading international financial services organization from
About
Aditya Birla Group
A US
$28 billion corporation, the Aditya Birla Group is in the league of Fortune 500
worldwide. It is anchored by an extraordinary force of 100,000 employees,
belonging to 25 different nationalities. The group operates in 25 countries
across six continents – truly
Aditya
Birla Group through Aditya Birla Financial Services Group (ABFSG), has a strong
presence across various financial services verticals that include life
insurance, fund management, distribution and wealth management, security based
lending, insurance broking, private equity and retail broking. In FY 2008-09,
the consolidated revenues of ABFSG from these businesses crossed Rs.47630
Millions, registering a growth rate of 36%. For more information please visit www.adityabirla.com.
About
Sun Life Financial Inc.
Sun
Life Financial is a leading international financial services organization providing
a diverse range of protection and wealth accumulation products and services to
individuals and corporate customers. Chartered in 1865, Sun Life Financial and
its partners today have operations in key markets worldwide, including
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.72 |
|
|
1 |
Rs.72.92 |
|
Euro |
1 |
Rs.64.72 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
- |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
No |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
No |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
No |
|
--EXPORT ACTIVITIES |
YES/NO |
No |
|
--AFFILIATION |
YES/NO |
No |
|
--LISTED |
YES/NO |
No |
|
--OTHER MERIT FACTORS |
YES/NO |
Yes |
|
TOTAL |
|
41 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.