|
Report Date : |
24.08.2012 |
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, Elphinstone Road, Mumbai – 400 013, Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2011 |
|
|
|
|
Date of Incorporation : |
04.08.2000 |
|
|
|
|
Com. Reg. No.: |
11-128110 |
|
|
|
|
Capital Investment / Paid-up Capital : |
Rs.19695.000 millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
U99999MH2000PLC128110 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMB08828B |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business : |
Providing Life Insurance Solutions, Policies etc. |
|
|
|
|
No. of Employees : |
11152 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (44) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 29000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a Birla group company. It is a well established and a reputed company having satisfactory track.
The financial detail for the current year is missing from Government
Department. However, trade relations are reported to be fair. 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.
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
Management non-cooperative
(Contact No.: 91-22-39961000)
LOCATIONS
|
Registered Office : |
One Indiabulls Centre,
Tower 1, 15th and 16th Floor, Jupiter Mill Compound,
841, S.B. Marg, Elphinstone Road, Mumbai – 400 013, Maharashtra, India |
|
Tel No.: |
91-22-43569000 |
|
Fax No.: |
91-22-43568758 |
|
E-Mail : |
ashish.lakhtakia@birlasunlife.com puneet.bansall@birlasunlife.com |
|
Website: |
|
|
|
|
|
Corporate Office : |
Vaman Centre, 6th Floor, |
|
Tel. No.: |
91-22-66783333/ 66783262 |
|
Fax No.: |
91-22-66783262/ 66923232 |
|
E-Mail : |
clientservices@birlasunlife.com
grouphelpline@birlasunlife.com puneet.bansall@birlasunlife.com |
DIRECTORS
As on 20.06.2012
|
Name : |
Mr. Kumar Mangalam Birla |
|
Designation : |
Chairman cum Managing Director |
|
Address : |
Mangal Aditnarayan , 20, |
|
Date of Birth/Age : |
14.06.1967 |
|
Qualification : |
Chartered Accountant and MBA ( |
|
Date of Appointment : |
04.08.2000 |
|
DIN No.: |
00012813 |
|
|
|
|
Name : |
Mr. Ajay Srinivasan |
|
Designation : |
Director |
|
Address : |
91/101, Narain Terraces, 7 and 8 Floor, |
|
Date of Birth/Age : |
02.11.1963 |
|
Qualification : |
BA with Honours in Economics and MBA (Indian |
|
Date of Appointment : |
01.07.2010 |
|
DIN No.: |
00121181 |
|
|
|
|
Name : |
Mr. Bishwanath Mangilal Puranmalka |
|
Designation : |
Director |
|
Address : |
Antariksha, Flat No.182 19th Floor, 95/96, Kakasaheb Gadgil
Marg, Prabhadevi, Mumbai – 400 025, |
|
Date of Birth/Age : |
02.11.1935 |
|
Date of Appointment : |
04.08.2000 |
|
DIN No.: |
00007432 |
|
|
|
|
Name : |
Mr. Donald Alexander Stewart |
|
Designation : |
Director |
|
Address : |
|
|
Date of Birth/Age : |
06.11.1946 |
|
Qualification : |
Fellow of |
|
Date of Appointment : |
24.12.2000 |
|
DIN No.: |
00438164 |
|
|
|
|
Name : |
Mr. Jayant Sudesh Kumar Dua |
|
Designation : |
Managing Director |
|
Address : |
B-66, Ground Floor, Sarvodaya Enclave, |
|
Date of Birth/Age : |
30.01.1965 |
|
Date of Appointment : |
01.07.2010 |
|
DIN No.: |
00629213 |
|
|
|
|
Name : |
Mr. Suresh Narsappa Talwar |
|
Designation : |
Director |
|
Address : |
10, Shiv Shanti Bhavan, 146, |
|
Date of Birth/Age : |
21.11.1938 |
|
Date of Appointment : |
11.09.2001 |
|
DIN No.: |
00001456 |
|
|
|
|
Name : |
Mr. Venkatesh Satyaraj Mysore |
|
Designation : |
Director |
|
Address : |
688, Supraja, 15th Cross, 100 Feet Ring Road, J.P. Nagar,
Phase – II, Bangalore – 560 078, Karnataka, India |
|
Date of Birth/Age : |
30.12.1958 |
|
Date of Appointment : |
01.01.2008 |
|
DIN No.: |
01401447 |
|
|
|
|
Name : |
Mr. Gianprakash Dharamprakash Gupta |
|
Designation : |
Director |
|
Address : |
101, Kaveri, B Wing, Neelkanth, Valley, Rajawadi, Ghatkopar (East),
Mumbai – 400 077, |
|
Date of Birth/Age : |
11.01.1941 |
|
Date of Appointment : |
11.09.2001 |
|
DIN No.: |
00017639 |
|
|
|
|
Name : |
Dr. Rakesh Naging Chand Jain |
|
Designation : |
Director |
|
Address : |
110/2, A wing, Quantum Park, Union Park Road, Khar (West), Mumbai –
400 052, Maharashtra, India |
|
Date of Birth/Age : |
19.01.1961 |
|
Date of Appointment : |
16.06.2010 |
|
DIN No.: |
00020425 |
|
|
|
|
Name : |
Mrs. Tarjani Manmukram Vakil |
|
Designation : |
Director |
|
Address : |
A-1, |
|
Date of Birth/Age : |
30.10.1936 |
|
Date of Appointment : |
16.06.2010 |
|
DIN No.: |
00009603 |
|
|
|
|
Name : |
Mr. Kevin David Strain |
|
Designation : |
Director |
|
Address : |
180, |
|
Date of Birth/Age : |
31.08.1966 |
|
Date of Appointment : |
28.04.2012 |
|
DIN No.: |
05262340 |
KEY EXECUTIVES
|
Name : |
Mr. Mayank Bathwal |
|
Designation : |
Chief Financial Officer and
Head of Institutional Sales |
|
|
|
|
Name : |
Mr. Amitabh Verma |
|
Designation : |
Chief Operating Officer |
|
|
|
|
Name : |
Mr. Sashi Krishnan |
|
Designation : |
Chief Investment Officer |
|
|
|
|
Name : |
Mr. Niall O'Hare |
|
Designation : |
Chief Actuarial Officer |
|
|
|
|
Name : |
Mr. Arun Malkani |
|
Designation : |
Head – Information
Technology |
|
|
|
|
Name : |
Mr. Saurov Ghosh |
|
Designation : |
Head – Human Resources and
Training |
|
|
|
|
Name : |
Mr. Lalit Vermani |
|
Designation : |
Head – Compliance, Risk,
Legal and Audit |
|
|
|
|
Name : |
Mr. Vikas Seth |
|
Designation : |
Head of Sales – DSF |
|
|
|
|
Name : |
Mr. Ashish Lakhtakia |
|
Designation : |
Secretary |
|
Address : |
Flat No.103-104, B Wing, |
|
Date of Birth/Age : |
25.04.1973 |
|
Date of Appointment : |
27.04.2011 |
|
PAN No.: |
ACDPL9207F |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 20.06.2012
|
Names of Shareholders |
|
No. of Shares |
|
Aditya Birla Nuvo Limited, |
|
1457429995 |
|
Sun Life Financial ( |
|
512070000 |
|
Anil Rastogi Jointly with Aditya Birla Nuvo Limited, |
|
1 |
|
BN Puranmalka Jointly with Aditya Birla Nuvo, Limited, |
|
1 |
|
Sushil Agarwal Jointly with Aditya Birla Nuvo Limited, |
|
1 |
|
Manoj Kedia Jointly with Aditya Birla Nuvo Limited, |
|
1 |
|
Devendra Bhandari Jointly with Aditya Birla Nuvo Limited, |
|
1 |
|
Total
|
|
1969500000 |
As on 20.06.2012
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
26.00 |
|
Bodies
corporate |
|
73.999999608 |
|
Directors
or relatives of directors |
|
0.000000078 |
|
Other
top fifty shareholders |
|
0.000000314 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Life Insurance Solutions, Policies etc. |
GENERAL INFORMATION
|
No. of Employees : |
11152 (Approximately) |
|
|
|
|
Bankers : |
Not Available |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name 1 : |
S.R. Batliboi and Associates Chartered Accountants
|
|
Address : |
6th Floor, |
|
PAN No.: |
AABFS3421N |
|
|
|
|
Name 2 : |
Fraser and Ross Chartered Accountants |
|
Address : |
Deloitte Centre, |
|
PAN No.: |
AAAFF0644S |
|
|
|
|
Holding company : |
Aditya Birla Nuvo Limited CIN: L17199GJ1956PLC001107 |
|
|
|
|
Foreign
Partner : |
Sun Life Financial ( |
|
|
|
|
Fellow
Subsidiary : |
v
Aditya Birla Finance Limited (Formerly known as
Birla Global Finance Company Limited) v
Aditya Birla Minacs Worldwide Limited (Formerly
known as Transworks Information Services Limited) v
Aditya Birla Minacs IT Services Limited (Formerly
known as PSI Data Systems Limited) v
Aditya Birla Money Mart Limited (Formerly known
as Birla Sun Life Distribution Company Limited) (w.e.f. March 31, 2009) v
Aditya Birla Money Insurance Advisory Services
Limited (Formerly known as BSDL Insurance Advisory Services Limited (w.e.f.
March 31, 2009) v
Aditya Birla Money Limited (Formerly known as
Apollo Sindhoori Capital Investments Limited) (w.e.f. March 6, 2009) v
Aditya Birla Financial Services Private Limited
(w.e.f. November 4, 2008) v
Aditya Birla Financial Shared Services Limited v Aditya Birla
Insurance Brokers Limited (Formerly known as Birla Insurance Advisory and
Broking Service Limited) (w.e.f. August 18, 2010) v Madura Garments
LifeStyle Retail Company Limited |
CAPITAL STRUCTURE
As on 31.03.2011
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 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 |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
19695.000 |
19695.000 |
18795.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4800.000 |
4800.000 |
1200.000 |
|
|
4] (Accumulated Losses) |
(17225.082) |
(20275.040) |
(15920.075) |
|
|
5] credit/(Debit) / Fair
Value Change account |
0.001 |
0.305 |
0.204 |
|
|
NETWORTH |
7269.919 |
4220.265 |
4075.129 |
|
|
|
|
|
|
|
|
POLICYHOLDERS FUNDS |
|
|
|
|
|
Credit/(Debit) Fair Value Change Account |
0.069 |
0.653 |
0.099 |
|
|
Policy Liabilities |
10608.571 |
7860.785 |
3999.354 |
|
|
Insurance Reserves |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
10608.640 |
7861.438 |
3999.453 |
|
|
|
|
|
|
|
|
Provision for linked liabilities |
170233.983 |
136542.641 |
86979.274 |
|
|
Funds for Discontinued Policies |
|
|
|
|
|
i) Discontinued on account of non-payment of premium |
6.401 |
0.000 |
0.000 |
|
|
Credit/(Debit) Fair Value Change Account |
4351.817 |
9130.333 |
(5009.905) |
|
|
TOTAL LINKED LIABILITIES |
174592.201 |
145672.974 |
81969.369 |
|
|
|
|
|
|
|
|
Funds For Future Appropriation |
|
|
|
|
|
Linked Liabilities |
4569.742 |
2984.243 |
1289.584 |
|
|
TOTAL |
197040.502 |
160738.920 |
91333.535 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
399.823 |
698.167 |
844.269 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
6972.707 |
5043.972 |
4670.115 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Shareholders |
16033.543 |
10581.669 |
5044.186 |
|
|
Assets held to cover linked liabilities
|
174592.201 |
145672.974 |
81969.369 |
|
|
Loans |
263.070 |
265.468 |
223.516 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000
|
0.000
|
|
|
Sundry Debtors |
0.000
|
0.000
|
0.000
|
|
|
Cash & Bank Balances |
5885.242
|
5697.972
|
5189.719
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
1371.709 |
1215.350 |
1044.299 |
|
Total
Current Assets |
7256.951
|
6913.322
|
6234.018
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3320.427
|
3279.234
|
2818.804
|
|
|
Current Liabilities |
4687.859
|
4834.277
|
4580.776
|
|
|
Provisions |
469.507
|
323.141
|
252.358
|
|
Total
Current Liabilities |
8477.793
|
8436.652
|
7651.938
|
|
|
Net Current Assets |
(1220.842)
|
(1523.330)
|
(1417.920)
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
197040.502 |
160738.920 |
91333.535 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
Premium Earned –
Net |
|
|
|
|
|
a) Premium |
56770.665 |
55056.579 |
45718.041 |
|
|
b) Reinsurance Ceded |
(825.041) |
(802.949) |
(551.663) |
|
|
c) Reinsurance accepted |
-- |
-- |
-- |
|
|
Sub-total |
55945.624 |
54253.630 |
45166.378 |
|
|
|
|
|
|
|
|
Income
from investments |
|
|
|
|
|
a) interest, Dividend and Rent – Gross |
7715.638 |
5215.712 |
3884.537 |
|
|
b) Profit on sale / Redemption of investments |
15996.532 |
24129.090 |
3279.011 |
|
|
c) (Loss) on sale / Redemption of investments |
(3894.870) |
(3410.918) |
(11161.291) |
|
|
d) transfer/Gain (Loss) on revaluation / change in fair value |
(4778.515) |
14140.238 |
(2708.296) |
|
|
e) Gain / (Loss) on Amortisation |
(119.398) |
(42.599) |
(0.607) |
|
|
Sub-Total |
14919.387 |
40031.523 |
(6706.646) |
|
|
|
|
|
|
|
|
Other Income |
|
|
|
|
|
a) contribution from the shareholders account |
619.836 |
4797.493 |
7639.899 |
|
|
b) Others (interest etc.) |
236.803 |
143.486 |
170.850 |
|
|
Sub-Total |
856.639 |
4940.979 |
7810.749 |
|
|
Total (A) |
71721.650 |
99226.132 |
46270.481 |
|
|
|
|
|
|
|
|
Commission |
3805.795 |
5161.974 |
4817.880 |
|
|
Operating expenses related to insurance business |
12034.778 |
13267.526 |
12487.623 |
|
|
Provision for Doubtful debts |
-- |
-- |
-- |
|
|
Bad debts written off |
--- |
-- |
-- |
|
|
Provision for tax |
(5.875) |
-- |
61.500 |
|
|
Provision (other than taxation) |
-- |
-- |
-- |
|
|
a) for diminution in value of investments (net) |
-- |
-- |
-- |
|
|
b) others |
-- |
-- |
-- |
|
|
Total (B) |
15834.698 |
18429.500 |
17367.003 |
|
|
|
|
|
|
|
|
Benefits paid (Net) |
19343.749 |
11387.815 |
6464.413 |
|
|
Interim Bonus Paid |
-- |
-- |
-- |
|
|
Change in valuation of liabilities in respect of life policies |
|
|
|
|
|
a) Gross |
2779.908 |
4621.359 |
21245.680 |
|
|
b) Fund Reserve |
28912.827 |
63703.604 |
|
|
|
c) Premium Discontinued Fund - Linked |
6.401 |
-- |
|
|
|
d) (Amount ceded in Re-insurance) |
(32.122) |
(759.928) |
(123.547) |
|
|
c) Amount accepted in Re-insurance |
-- |
-- |
-- |
|
|
Total (C) |
51010.763 |
78952.850 |
27586.546 |
|
|
|
|
|
|
|
|
Surplus / (Deficit) (D)= (A)-(B)-(C) |
4876.189 |
1843.782 |
1316.932 |
|
|
Appropriations |
|
|
|
|
|
Transfer to shareholders account |
3290.689 |
149.123 |
286.159 |
|
|
Transfer to other reserves |
-- |
-- |
-- |
|
|
Balance being funds for future appropriation |
1585.500 |
1694.659 |
1030.773 |
|
|
Total (D) |
4876.189 |
1843.782 |
1316.932 |
|
|
|
|
|
|
|
|
The total surplus mentioned below |
|
|
|
|
|
a) interim Bonuses paid |
-- |
-- |
-- |
|
|
b) allocation of bonus to policyholders |
-- |
-- |
-- |
|
|
c) surplus/(Deficit) shown in the revenue account |
4876.189 |
1694.659 |
1030.773 |
|
|
Total Surplus
[(a)+(b)+(c)] |
4876.189 |
1649.659 |
1030.773 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.63 |
3.86 |
2.86 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.86 |
0.82 |
0.81 |
LOCAL AGENCY FURTHER INFORMATION
sundry creditors details:-
|
Particulars
|
31.03.2011 Rs. In Millions |
31.03.2010 Rs. In Millions |
31.03.2009 Rs. In Millions |
|
Sundry Creditors * |
3320.427
|
3279.234
|
2818.804
|
|
|
|
|
|
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.
|
Check
List by Info Agents |
Available
in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if
applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter
involved in |
-- |
|
23) Banking Details |
No |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
Yes |
|
31)
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32)
PAN of Proprietor/Partner/Director, if available |
No |
|
33)
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34)
External Agency Rating, if available |
No |
Note:
The registered office of the company has been sifted from
Vaman Centre, 6th Floor,
BACKGROUND
Subject,
headquartered at Mumbai, had commenced operations on 19th March,
2001, after receiving the license to transact life insurance business in
Subject is a joint
venture between Aditya Birla Nuvo Limited, a Company of the Aditya Birla Group
of
FINANCIAL PERFORMANCE
The Life Insurance
Industry witnessed strong performance from its inception till 2009-10. The
Regulator (IRDA) introduced a number of regulatory changes in FY 2010-11 to
create a more robust platform for future growth. This led to the existing
players in the industry reviewing their business strategies. They responded
proactively to the changing regulations by reviewing their product strategy,
distribution set up and operating model. This included moving towards a more
balanced product mix and taking several steps to further strengthen their
multi-channel distribution architecture.
The Company achieved total premium revenue of
Rs.55946.000 Millions, mainly driven by strong renewal premium growth of 41%.
As they transitioned into the new commission regime, their new business fell as
did that of the private sector as a whole.
They are to
announce the maiden annual profit for the Company, having declared profits for
all four quarters in a row. The Company recorded a net profit of Rs.3049.000
Millions in FY11 against a loss of Rs.4355.000 Millions in last year. Going
forward, the Company is confident of funding its business growth through
internal accruals. The Company recorded good performance across a range of key
financial parameters as detailed below:
·
While
the total premium revenue amounted to Rs.55946.000 Millions registering a
growth of 3%, the renewal premium of Rs.35968.000 Millions registered a robust
growth of 41% over the previous year. As an insurer with a long-established
track record, a significant portion of their business (95%) is on regular
premium basis, which has provided them with a regular stream of renewal
premiums. New business premium amounting to Rs.20803.000 Millions was lower
than previous year by 30% for the reasons mentioned before.
·
The
Renewal premium growth reflects the healthy state of their business in terms of
quality of sales, servicing and underwriting capabilities. The Company stands
in the top quartile amongst competitors on several persistency measures as
disclosed by IRDA.
·
The
total commission as % of total premium has declined from 9.4% in the previous
year to 6.7% during the 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.
·
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. They believe that
the Company's profitable journey starting with the maiden profit of Rs.3049.000
Millions during the year, is sustainable given the business environment. These
profits are primarily driven by in-force business, declining expense ratios and
changes in product structures to reduce new business strain.
·
Given
the robust financial performance, there has been no capital infusion for the
current year. The solvency position for the Company has improved from 2.10 in
FY10 to 2.88 in FY11.
They believe that the Company is well-positioned
to grow profitably and gain market share, leveraging its strong brand,
innovative products, talented team and distribution reach.
BUSINESS REVIEW
Industry Scenario
The Indian
life insurance industry has witnessed a decade of high growth since it was
opened to private players in 2000. Today the industry comprises of 23 players
with more than 2.7 million agents spread across 11,000 branches. The multi
distribution set up is well entrenched with Agency and Banca channels
contributing more than 80% of new sales. After a decade of strong performance,
which catapulted the Indian life insurance industry to amongst the top 5
countries in
·
The
Indian life insurance market has been a predominantly Unit Linked Insurance
Plan ("ULIP") market. The same was driven by advantages offered in
these products, need of the customer and growth of equity markets during the
last decade or so. During FY11, several regulations impacting the products as
well as distribution were made effective.
·
Product
related regulations: New regulations governing design of ULIPs, made effective
in Sep'10, brought about a paradigm change across the sector. These new
guidelines capped the overall charges, increased the minimum sum assured
component, capped the surrender charges and imposed minimum prescribed returns
to customers. The new regulations also required unit-linked pension to be
offered with minimum guaranteed return of 4.5% p.a.
·
Distribution
related regulations: IRDA, with a view to improve the quality of distribution,
issued guidelines:1) to tighten the process around licensing of corporate
agents and 2) to improve quality of individual life agents by prescribing
minimum persistency requirements during the year.
In the long run, these regulations, which keep customer interests as the
focal point, should positively impact the business:
·
Under the new guidelines, ULIPs are
simplified and less expensive, thereby making it a more compelling proposition
for consumers in the long-term vis-a-vis other comparable retail financial
products.
·
The new guidelines will require
players to improve customer stickiness and optimize cost structures.
Given the above, it is important to look at industry performance up to Sep’10 and Post Sep’10, when the new guidelines were made effective:
|
Particulars |
New Business (Rs. Million) |
Growth % over previous year same period |
||||
|
YTD Sep’10 |
Oct’10-Mar’11 |
FY11 |
YTD Sep’10 |
Oct’10-Mar’11 |
FY11 |
|
|
Private Players |
137261.000 |
151064.000 |
288325.000 |
13% |
-34% |
-17% |
|
LIC |
206937.000 |
202927.000 |
409864.000 |
11% |
-28% |
-13% |
|
Industry |
344198.000 |
353990.000 |
698188.000 |
12% |
-31% |
-15% |
As the table shows against a growth of 13% in the first half of the financial year, the private sector witnessed a decline of 34% over the next six months. This was primarily on account of:-
·
Withdrawal
of old ULIP products and transitioning to new ULIP products under a new
commission regime necessitated by the new regulations.
·
Several
players moving to a balanced mix of ULIP and Non-ULIP products in the
proportion of approximately 70:30 respectively in Q3 (for top 7 players).
·
Movement
to single premium from Sep'10 onwards by several private players (37% in H2
against 14% in H1 of total individual new business premium).
At the end of the year, the
Company's market share stood at 7.0% among private players and 2.9% for the
total market.
Summary of Operations and Business
·
In terms of Product performance, the strategy to
move towards a non-ULIP portfolio, which was initiated a couple of years back,
paid off in the current year as the Company moved to a more stable product mix
during the year. By end of July 2010, the Company had already managed a 10%
share of non ULIP products. Given their understanding and readiness to launch
non-ULIP products, the Company has been quickly able to shin towards a higher
traditional mix. In the second half of the year, the non ULIP products
contributed close to 40% of their sales.
o They continue to
strengthen their product portfolio. During the year they launched 5 traditional
products taking the total non-ULIP product offerings to 8. The Company shall
continue to pursue its balanced product mix strategy of ULIP and non ULIP
keeping in mind interests of all stakeholders i.e. customers, distributors and
shareholders.
o They have a long
history of product innovation given their strong belief in offering the right
products to their customers and they were the pioneers of ULIPs in
·
The Company has been supporting social causes from
the beginning of its operations. As in the previous years, the Company complied
with both rural and social obligations as mandated by IRDA and wrote 251,676 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 144,750 lives against
the mandatory requirement for 25,000 lives. The Company entered into strategic
tie-ups with microfinance institutions through which it was able to sell
products like BimaKavach and BimaSuraksha 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.161290.000 Millions to Rs.197598.000 Millions, an increase of 22%. The
Company continued to deliver superior investment performance to its
policyholders with every fund beating the internal benchmark set. This ability
to provide strong investment performance in both good and bad market conditions
is a key strength for the Company.
·
Their investment in branding yielded good results
with the consideration scores (i.e. likelihood of prospective customers to
purchase a policy) improving from 17% to 21% between Apr'10 to Feb'11. They
believe that strength of brand is expected to become more important as the
customers focus more on the provider than the product.
·
The Company undertook several measures to further
improve on all health metrics for the business. Maintaining a high level of
persistency is important to their financial results, as a large block of
in-force policies provides them with regular revenues in the form of renewal
premiums. Initiatives taken over the past couple of years in areas of customer
segmentation to promote need-based selling. increasing customer engagement
yielded results with the 13-Month persistency for new business premium at 82%
(as on Dec'10). The business conservation improved from 60% in FY10 to 75% in
FY11 for individual life business.
·
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. 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 Value of New Business (VNB)
for FY10 peer reviewed by an international actuarial firm. It will continue to
set standards going forward by improving the disclosure standards around
reporting EV and VNB.
OUTLOOK FOR THE INDUSTRY AND COMPANY
·
The last one year has been challenging for the life
insurance industry in terms of new business growth. However, this has given an
opportunity to existing players to review their operating models to drive
higher efficiencies and focus on more balanced growth objectives.
·
In spite of the current phase of uncertainty they
are bullish about the long-term prospects of the industry taking into account
the underlying demographic and macro-economic driers. The future growth will be
driven by factors like long-term economic growth, high savings rate, and rising
awareness amongst the population about the need for insurance. While there can
be some short term aberrations, long term growth continues to remain
attractive.
·
The Company has identified the following focus
areas to strengthen its competitive and financial position in the future years:
o Enhancing the
distribution capacities across all channels and making them more productive by
driving higher capacity utilization;
o Customer
retention and increasing customers as a key driver for-revenue and
profitability growth; Balanced product mix between ULIP and non-ULIP with a
view to target all customer segments;
o Review operating model to drive higher customer and distributor
satisfaction along with cost efficiencies.
AWARDS/ RECOGNITIONS
During the year, Company won the following awards:
·
Prestigious ‘Good Corporate Citizen Award’
from Bombay Chamber of Commerce and Industry for the year
2009-10 under the category of ‘Banking and Financial Institutions’.
· Silver Shield by Institute of Chartered Accountant of India for the second year in a row for “Excellence in Financial Reporting in Insurance Sector”.
· Certificate of Merit for the year 2009 by South Asia Federation of Accounts (SAFA) in the category “Non Banking Sector not subject to Prudential Supervision” and they were the only life insurance company to be awarded. This award is conferred basis Improvement in Transparency, Accountability and Governance in the published Annual Reports.
CONTINGENT LIABILITY:
|
Particulars |
31.03.2011 (Rs.
In Millions) |
31.03.2010 (Rs.
In Millions) |
|
Partly paid-up investments |
450.000 |
0.000 |
|
Claims, other than
against policies, not acknowledged as debts by the Company |
4.707 |
4.150 |
|
Underwriting commitments outstanding |
0.000 |
0.000 |
|
Guarantees given
by or on behalf of the Company |
0.000 |
0.000 |
|
Statutory demands
/ liabilities in dispute, not provided for |
Refer Note Below |
Refer Note Below |
|
Reinsurance
obligations to the extent not provided for in the accounts. |
0.000 |
0.000 |
|
Others * |
118.935 |
70.107 |
* Represents potential liability to the Company (net of reinsurance) in
respect of cases filed against the Company’s decision of repudiation of death
claims and customer complaints.
Note:
The Company has received
several Show Cause-Cum-Demand notices in earlier period relating to Service Tax
demands related to excess utilization of CENVAT credit against liability on
risk premium, applicability on fund management charges, payment of
reimbursements to agents and foreign payments aggregating to Rs.443.025
Millions (Previous year Rs. 443.025 Millions) plus applicable interest and
penalty, which is contested.
fixed assets:
v Goodwill
v intangibles (Software’s)
v Land – Freehold Property
v Buildings
v Furniture and Fittings
v Information Technology
v Equipment
v Vehicles
v Office Equipment
v Others (Leasehold Improvements)
WEBSITE DETAILS:
PRESS RELEASE
BIRLA SUN LIFE INSURANCE LAUNCHES NEW WHOLE
LIFE PLAN – BSLI WEALTH SECURE
The plan allows customers to secure their family’s future for an entire
lifetime and maximize wealth with unique investment strategies
Mumbai, June, 2012: Birla Sun Life Insurance Company, a joint venture
between the Aditya Birla Group,
Niall O’Hare, Chief Actuarial Officer, Birla Sun Life Insurance, says,
“With three investment options to choose from, the plan can meet the demands of
the diverse investors. BSLI Wealth Secure plan combines long-term savings and
whole life cover in such a way that it allows customers to focus on their goals
and maximize savings for their future.” He adds, “With a built-in savings
component, BSLI Wealth Secure plan can help accumulate sizable returns with
every premium paid, owing to its long tenure and equity market participation.”
The plan enables a customer to fulfill his family’s dreams with prudent investments
and also financially secure their future with a whole Life cover.
Many customers tend to stay away from the equity market opportunity due
to lack of knowledge, thereby compromising on their long-term wealth creation
goals. The company is positive that the product will induce many more customers
to achieve a balanced growth on their investments while they benefit from
advanced investment strategies and also a whole life cover.
The plan offers customers a choice to select the premium amount. Based
on his/her current age and the premium amount that the customer opts for, the
company will determine the life cover applicable on the policy. This is also
the minimum Basic Sum Assured.
Key features of
BSLI Wealth Secure plan include –
· Insurance cover for whole life.
· Option to select from three investment strategies - Systematic
Transfer Option, LifeCycle Option and Self-Managed Option.
ü Systematic Transfer Option
mitigates the risk arising from the volatility in the equity market by averaging
out a customer’s cost of purchase. This option allows customers to enter the
equity market not at once, but slowly at different times and at different
levels, thus reducing the overall risk to their portfolio.
ü LifeCycle
Option is meant for individuals who want their investments to change
according to their changing age and risk profile.
ü Self-Managed Option is
meant for individuals who seek complete freedom and flexibility to manage their
investments by allocating the premiums across investment funds of their choice
in varying proportions. Self- managed Option gives customers access to BSLI’s
well established suite of 13 investment funds with complete control on how to
invest premiums, and the independence to switch from one investment fund to
another.
· Option of increasing life cover by up to 300% of the minimum Basic Sum
Assured.
· Advantage of enhanced financial security with BSLI Riders.
· Flexibility to make partial withdrawals to meet any financial
emergencies after completion of five policy years.
· Additional boost to Fund Value in the form of Guaranteed Additions.
· Payment of Sum Assured or fund value to the nominee, whichever is
higher, in the unfortunate event of death of the Life Assured during the term
of the policy.
· Tax benefits under Section 80C and Section 10(10D) of the Income Tax
Act, 1961.
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
organizations from
About Aditya Birla Financial Services Group
Aditya Birla Financial Services Group (ABFSG) ranks among the top 5 fund
managers in
About Sun Life Financial
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 records 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.55.19 |
|
|
1 |
Rs.87.65 |
|
Euro |
1 |
Rs.69.15 |
INFORMATION DETAILS
|
Information
Gathered by : |
PJA |
|
|
|
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
Yes |
|
--LISTED |
YES/NO |
No |
|
--OTHER MERIT FACTORS |
YES/NO |
Yes |
|
TOTAL |
|
44 |
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.