|
Report Date : |
18.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
HDFC STANDARD LIFE INSURANCE COMPANY LIMITED |
|
|
|
|
Registered
Office : |
Ramon House, 169, H.T. Parekh Marg, Backbay Reclamation, Backbay Reclamation, Churchgate, Mumbai –
400020, Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
14.08.2000 |
|
|
|
|
Com. Reg. No.: |
11-128245 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.19948.801
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U99999MH2000PLC128245 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMH05080F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACH8755L |
|
|
|
|
Legal Form : |
A Closely held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Providing Legal and Financial Services and Insurance Services |
|
|
|
|
No. of Employees
: |
13827 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 88000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is one of India’s Leading Private Insurance Companies, which offers
insurance solutions to individuals and group. It is a joint venture between Housing Development Finance Corporation
Limited (HDFC), India’s leading housing finance institution and a group
company of Standard Life PLC, UK. It is a well established company having satisfactory track record.
Profitability of the company is under pressure. There appears huge
accumulated losses. However trade relations are reported as 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 Co-Operative
(91-22-67516680)
LOCATIONS
|
Registered Office : |
Ramon House, 169, H.T. Parekh Marg, Backbay Reclamation, Backbay Reclamation, Churchgate, Mumbai –
400020, Maharashtra, India |
|
Tel. No.: |
91-22-67516680/ 67516666 |
|
Fax No.: |
91-22-67517680/ 67516333 |
|
E-Mail : |
|
|
Website : |
|
|
Location : |
Owned |
|
|
|
|
Corporate Office 1: |
2nd Floor, ‘A’ Wing, Trade Star Building, Junction of Kondivita
and M.V. Road, Andheri Kurla Road, Andheri (East), Mumbai – 400059,
Maharashtra, India |
|
Tel. No.: |
91-22-28220055/ 67516666 |
|
Fax No.: |
91-22-28229998/ 26222414 |
|
E-Mail : |
|
|
Website : |
|
|
Location : |
Owned |
|
|
|
|
Corporate Office
2: |
12th and 13th Floor, Lodha Excelus, Apollo Mills
Compound, N. M. Joshi Road, Mahalaxmi, Mumbai – 400011, Maharashtra, India |
|
Tel No.: |
91-22-67516666 |
|
Fax No.: |
91-22-67516333 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Branch Office : |
Located at : ·
·
Kolkata ·
Mumbai ·
·
·
|
DIRECTORS
(AS ON 14.08.2012)
|
Name : |
Mr. Gautam Ramanlal Divan |
|
Designation : |
Director |
|
Address : |
95C, |
|
Date of Birth/Age : |
22.07.1940 |
|
Date of Appointment : |
03.02.2004 |
|
DIN No.: |
00001176 |
|
|
|
|
Name : |
Mr. Ranjan K. Pant |
|
Designation : |
Director |
|
Address : |
1Portion – B, 10-A, Kasturba Gandhi Marg, New Delhi – 110001, India |
|
Date of Birth/Age : |
29.06.1959 |
|
Date of Appointment : |
03.05.2004 |
|
DIN No.: |
00005410 |
|
|
|
|
Name : |
Mrs. Renu Sud Karnad |
|
Designation : |
Director |
|
Address : |
BB 14, Greater Kailash Enclave II, |
|
Date of Birth/Age : |
03.09.1952 |
|
Date of Appointment : |
25.01.2006 |
|
DIN No.: |
00008064 |
|
|
|
|
Name : |
Mr. Keki Minoo Mistry |
|
Designation : |
Director |
|
Address : |
Flat No.0702/703, Hasmukh Mansion, 14 Road, Junction, Khar (West),
Mumbai – 400 054, Maharashtra, India |
|
Date of Birth/Age : |
07.11.1954 |
|
Date of Appointment : |
20.12.2000 |
|
DIN No.: |
00008886 |
|
|
|
|
Name : |
Mr. Deepak Shantilal Parekh |
|
Designation : |
Director |
|
Address : |
9/B Darbhanga Mansion, 12 Carmichael Road, Mumbai – 400026,
Maharashtra, India |
|
Date of Birth/Age : |
18.10.1944 |
|
Date of Appointment : |
17.08.2000 |
|
DIN No.: |
00009078 |
|
|
|
|
Name : |
Mr. |
|
Designation : |
Director |
|
Address : |
602 Neat House, 766, College Galli, Dadar (West), Mumbai – 400 028, |
|
Date of Birth/Age : |
19.08.1955 |
|
Date of Appointment : |
28.04.2005 |
|
DIN No.: |
00062596 |
|
|
|
|
Name : |
Mr. Norman Keith Skeoch |
|
Designation : |
Director |
|
Address : |
|
|
Date of Birth/Age : |
05.11.1956 |
|
Date of Appointment : |
02.11.2005 |
|
DIN No.: |
00165850 |
|
|
|
|
Name : |
Mr. Amitabh Omsingh Chudhary |
|
Designation : |
Managing Director and Chief Executive Officer |
|
Address : |
Flat 4301 , 43rd Floor, Tower III, Electra Planet Godrej,
Near Jacob Circle, Saat Rasta, Mahalaxmi East, Mumbai- 400011, Maharashtra,
India |
|
Date of Birth/Age : |
02.07.1964 |
|
Date of Appointment : |
18.01.2010 |
|
DIN No.: |
00531120 |
|
|
|
|
Name : |
Mr. Alwarthirunagari Kuppuswamy Thiruvenkata |
|
Designation : |
Director |
|
Address : |
181-A, Twin Towers, Prabhadevi, Mumbai-400025, Maharashtra, India |
|
Date of Birth/Age : |
16.12.1936 |
|
Date of Appointment : |
05.08.2010 |
|
DIN No.: |
00746153 |
|
|
|
|
Name : |
Mr. Gerald Edgar Grimstone |
|
Designation : |
Alternate Director |
|
Address : |
34, |
|
Date of Birth/Age : |
27.08.1949 |
|
Date of Appointment : |
26.04.2012 |
|
DIN No.: |
01910890 |
|
|
|
|
Name : |
Mr. Michael Gerald Connarty |
|
Designation : |
Director |
|
Address: |
3 Joppa Road, Edinburgh- EH152HA, Unted Kingdom |
|
Date of Birth/ Age: |
18.11.1955 |
|
Date of Appointment: |
03.02.2012 |
|
DIN No.: |
01960618 |
|
|
|
|
Name : |
Mr. Nathan Richard Parnaby |
|
Designation : |
Director |
|
Address : |
2 Barton Loan, Edinburgh EH46JQ, United Kingdom |
|
Date of Birth/Age : |
21.09.1958 |
|
Date of Appointment : |
05.08.2010 |
|
DIN No.: |
02901942 |
|
|
|
|
Name : |
Mr. David Thomas Nish |
|
Designation : |
Director |
|
Address : |
Kiloran, Houseton Road, Kilmalcolm PA134NY, United Kingdom |
|
Date of Birth/Age : |
05.05.1960 |
|
Date of Appointment : |
05.08.2010 |
|
DIN No.: |
02912150 |
|
|
|
|
Name : |
Mr. Surendra Ambalal Dave |
|
Designation : |
Alternate Director |
|
Address : |
17/31, MHB Colony, Bandra Reclamation, Bandra (West), Mumbai – 400050,
Maharashtra, India |
|
Date of Birth/Age : |
03.08.1936 |
|
Date of Appointment : |
26.04.2012 |
|
DIN No.: |
00001480 |
KEY EXECUTIVES
|
Name : |
Mr. Manish Ghiya |
|
Designation : |
Secretary |
|
Address : |
B-604, Ballerina Chs, 3rd
Cross Road, Lokhandwala Complex, Andheri (West), Mumbai – 400053,
Maharashtra, India |
|
Date of Birth/Age : |
15.06.1969 |
|
Date of Appointment : |
23.01.2012 |
|
PAN No.: |
AAAPG8539J |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 14.08.2012)
SHAREHOLDING DETAILS FILE ATTACHED
(AS ON 14.08.2012)
Equity Shares Break – up
|
Category |
|
Percentage |
|
|
|
|
|
Foreign Holding (Foreign institutional investor(s),
Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s)
or Overseas corporate bodies or others) |
|
26.00 |
|
Bodies Corporate |
|
72.37 |
|
Directors or relatives of directors |
|
0.13 |
|
Other top fifty (50) shareholders (other than listed above) |
|
0.21 |
|
Others |
|
1.29 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Legal and Financial Services and Insurance Services |
|
|
|
|
Products : |
Life Insurance |
GENERAL INFORMATION
|
No. of Employees : |
13827 (Approximately)
|
|
|
|
|
Bankers : |
·
HDFC Bank Limited ·
Bank of Baroda ·
Union Bank of India ·
State Bank of India ·
Indian Bank ·
The Saraswat Co-op Bank Limited ·
Federal Bank ·
State Bank of Travancore ·
Central Bank of ·
Indian Overseas Bank ·
South Indian Bank |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name 1: |
S B Billimoria and Company Chartered Accountants |
|
Address : |
Indiabulls Finance Centre, Tower 3, 31st Floor, Elphinstone Mill
Compound, Senapati Bapat Marg, Mumbai – 400013, Maharashtra, India |
|
PAN No.: |
AAAFS7376P |
|
|
|
|
Name 2: |
Haribhakti and Company Chartered Accountants |
|
|
|
|
Holding Company : |
Housing Development Finance Corporation Limited CIN No: L70100MH1977PLC019916 |
|
|
|
|
Investing Company: |
·
Standard Life Assurance Company ·
Standard Life ( |
|
|
|
|
Subsidiaries : |
HDFC Life Pension Fund Management Company Limited CIN No.: U66020MH2011PLC218824 |
|
|
|
|
Fellow Subsidiaries : |
·
HDFC Assets Management Company Limited ·
HDFC Developers Limited ·
HDFC Holdings Limited ·
HDC Trustee Company Limited ·
HDFC Realty Limited ·
HDFC Investments Limited ·
HDFC ERGO General Insurance Company Limited ·
GRUH Finance Limited ·
HDFC Sales Private Limited ·
HDFC Venture Capital Limited ·
HDFC Venture Trustee Company Limited ·
HDFC Property Ventures Limited ·
HDFC IT Corridor Fund ·
HDFC Investment Trust ·
Credila Financial Services Private Limited ·
HDFC Asset Management Company ( ·
Griha Investments (Subsidiary of HDFC Holdings
Limited) ·
HDFC Education and Development Services
Private Limited. |
CAPITAL STRUCTURE
(AS ON 31.03.2012)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3000000000 |
Equity Shares |
Rs.10/- each |
Rs.30000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Called-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1994880096 |
Equity Shares |
Rs.10/- each |
Rs.19948.801
Millions |
|
|
|
|
|
NOTE:
Share Capital amounting to Rs.14437.338
Millions (Previous year Rs.14437.338 Millions) is held by Housing development
Corporation Limited, the holding company.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
19948.801 |
19948.801 |
19680.000 |
|
2] Share Application Money Received pending allotment of shares |
-- |
-- |
-- |
|
3] Reserves & Surplus |
2201.376 |
2206.790 |
552.892 |
|
4] Credit /[Debit] Fair Value Change Account |
(52.160) |
(0.350) |
184.435 |
|
Sub-Total |
22098.017 |
22155.241 |
20417.327 |
|
|
|
|
|
|
BORROWINGS |
|
|
|
|
POLICYHOLDERS’ FUNDS: |
|
|
|
|
Credit /[Debit] Fair Value Change Account |
(340.785) |
(15.447) |
205.087 |
|
Policy Liabilities |
73865.111 |
51233.325 |
37666.908 |
|
Insurance Reserves |
-- |
-- |
-- |
|
Provision for Linked Liabilities |
230603.983 |
183502.921 |
127701.636 |
|
Add: fair value change |
4440.774 |
21728.415 |
27516.164 |
|
Provision for
Linked Liabilities |
235044.757 |
205231.336 |
155217.800 |
|
Funds for discontinued policies |
|
|
|
|
i) Discontinued on account of non-payment of premium |
1042.027 |
-- |
-- |
|
ii) Others |
11.221 |
-- |
-- |
|
Total Provision
for Linked Liabilities |
236098.005 |
205231.336 |
155217.800 |
|
|
|
|
|
|
Sub-Total |
309622.331 |
256449.214 |
193889.795 |
|
|
|
|
|
|
Funds for Future Appropriations |
1251.005 |
1917.148 |
1490.013 |
|
Funds for future appropriation – Provision for lapsed policies
unlikely to be revived |
3352.468 |
2555.106 |
1064.831 |
|
|
|
|
|
|
TOTAL |
336323.821 |
283076.709 |
216061.966 |
|
|
|
|
|
|
APPLICATION OF
FUNDS |
|
|
|
|
INVESTMENTS |
5894.173 |
6999.708 |
6304.757 |
|
Shareholders |
79902.644 |
53349.840 |
43415.382 |
|
Policyholders |
236098.005 |
205231.336 |
155217.800 |
|
Assets held to cover Linked Liabilities |
317.628 |
331.239 |
40.366 |
|
LOANS |
2795.451 |
2395.729 |
1143.777 |
|
FIXED ASSETS |
|
|
|
|
Cash and Bank Balance |
5475.639 |
3837.312 |
3030.176 |
|
Advances and Other Assets |
7433.556 |
6770.283 |
4917.758 |
|
|
|
|
|
|
Sub-Total (A) |
12909.195 |
10607.595 |
7947.934 |
|
|
|
|
|
|
SUNDRY CREDITORS |
6010.260 |
5163.157 |
4836.270 |
|
OTHER CURRENT LIABILITIES |
8992.396 |
7874.393 |
7649.129 |
|
PROVISIONS |
136.754 |
150.102 |
187.617 |
|
Sub-Total (B) |
15139.410 |
13187.652 |
12673.016 |
|
|
|
|
|
|
NET CURRENT
ASSETS (C) = (A-B) |
(2230.215) |
(2580.057) |
(4725.082) |
|
|
|
|
|
|
DEBIT BALANCE IN PROFIT AND LOSS ACCOUNT [Shareholders account] |
12944.833 |
15654.987 |
14664.966 |
|
Deficit in the report |
601.302 |
1693.927 |
-- |
|
|
|
|
|
|
TOTAL |
336323.821 |
283076.709 |
216061.966 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
|
|
|
Amounts Transferred from The Policyholders Account (Technical Account) |
2505.310 |
446.326 |
472.930 |
|
Income from Investments |
|
|
|
|
a) Interest, Dividends and Rent – Gross |
396.395 |
399.900 |
289.102 |
|
b) Profit on sale/ redemption of investments |
69.895 |
183.531 |
49.152 |
|
c) (Loss on sale / redemption of investments) |
(0.151) |
(1.697) |
(0.487) |
|
d) Transfer/ Gain on revaluation/ change in fair value |
-- |
-- |
-- |
|
e) Amortisation of (premium)/discount on investments |
(0.224) |
(3.042) |
(2.634) |
|
|
|
|
|
|
Sub Total |
465.915 |
578.692 |
335.133 |
|
Other Income |
0.007 |
0.029 |
3.522 |
|
|
|
|
|
|
TOTAL (A) |
2971.232 |
1025.047 |
811.585 |
|
|
|
|
|
|
Expenses other than those directly related
to the insurance business Bad debts written off |
1.949 |
9.412 |
3.981 |
|
Contribution to the Policyholders Fund |
259.129 |
2005.656 |
3559.448 |
|
|
|
|
|
|
TOTAL (B) |
261.078 |
2015.068 |
3563.429 |
|
|
|
|
|
|
Profit/(Loss) Before Tax |
2710.154 |
(990.021) |
(2751.844) |
|
Provision for Taxation |
-- |
-- |
-- |
|
Profit/(Loss) After Tax |
2710.154 |
(990.021) |
(2751.844) |
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
Balance at the beginning of the year |
(15654.987) |
(14664.966) |
(11913.122) |
|
Interim Dividends Paid during the year |
-- |
-- |
-- |
|
Proposed Final Dividend |
-- |
-- |
-- |
|
Dividend Distribution Tax |
-- |
-- |
-- |
|
|
|
|
|
|
Profit / Loss carried forward to the balance
sheet |
(12944.833) |
(15654.987) |
(14664.966) |
|
|
|
|
|
|
Earning per share Basic/ Diluted |
1.36 |
(0.50) |
(1.51) |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
(Rs.
In Millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
Sundry Creditors |
6010.260 |
5163.157 |
4836.270 |
|
Total |
6010.260 |
5163.157 |
4836.270 |
|
Sr. No. |
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 |
Yes |
|
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 |
Business Review and
Outlook
The external market environment was extremely tough during the year. Interest rate worries, rising inflation, choppy stock markets along with debt crisis in some of the global economies has had a downward spiral effect on the life insurance industry. The impact of various regulatory changes that were announced by Insurance Regulatory and Development Authority (IRDA) in September 2010, though good for the long term, did have a distinct negative short term impact. The industry witnessed a de-growth in new business premia, where as renewal premia grew, indicating that at a time when there was risk aversion among savers and the market sentiment was negative, policyholders continued to have faith in life insurance products that had been bought by them.
The industry (including public sector insurer) witnessed de-growth of almost 3% on Overall (Individual and Group) Weighted Received Premium (WRP) basis during the financial year. On an Individual WRP basis, Life insurance industry registered de-growth of 5% in FY2011-12, led by private industry de-growth amidst regulatory interventions.
The Company was amongst the select group of private life insurers that showed positive growth on new business individual WRP in the second half of FY2011-12. The Company registered a growth of 13% in total premium. First Year regular premium registered a de-growth of 7%, while individual renewal premium registered a good growth of 29%. The strong performance on individual renewal premium improved the conservation ratio to 81% for the year ended March 2012. Group Business recorded a remarkable growth of 61%. The sum assured in force for the overall business at the end of the current year stood at Rs.1387180.000 Millions.
The Company has shown strong resilience in tough market conditions and has managed the regulatory regime change successfully. The Company was ranked 2nd amongst private life insurers on individual new business on WRP basis during the financial year. The Company gained market share in the private life space (individual business) and moved to 15.5% during the year from 12.9% in the preceding year.
The Company continued to rationalize expenses to improve value to its customers. Continuous monitoring and focused efforts put in the last year to control costs have helped reduce the operating expense ratio. During the year, operating expenses ratio decreased by 450 basis points over the preceding year, a reduction of 19% in rupee terms versus the preceding year.
The Company recorded Indian GAAP profits of Rs.2710.000 Millions in FY2011-12. The back book has started generating sufficient profits to offset the new business strain incurred on writing of new policies and this has resulted in the Company recording Indian GAAP profits on a full year basis for the first time in its history.
Despite a turbulent stock market that saw a 10% decline in the benchmark index (Sensex), the Company's Assets Under Management registered a growth of 21.7% as at 31 March 2012.
During the year, several initiatives were taken in cementing customer relationship and building process rigor within the organisation. The Company's core processes, like underwriting, claim settlement and conservation ratio have been demonstrated and rewarded as best-in-class amongst private sector Indian insurers. Strong business performance and continued focus on people management practices have led it to being an employer of choice. The Company continued its focus on the five strategic themes and rolled out a number of initiatives to build efficiency and agility in the organisation.
A detailed financial planning tool was developed in partnership with CRISIL and launched for key distributors and customers. This tool helped customers understand their life-stage goals, their future income and expense streams and build a financial plan based on their attitude to risk. The Company also established strong social media presence in this year. The Company has embarked on a technology transformation programme with an identified set of initiatives like point-of-sale underwriting and sales process automation that will add to ease and provide superior customer experience of distributors and sales team.
The efforts put in by the Company were well recognized by the industry. The Company received 39 awards and recognition during the year for its strong people practices, brand promise, organizational excellence, quality transaction, process maturity and enabling technology.
New Business
In individual business, the Company experienced a growth in EPI (Effective Premium Income) of 16% in the second half of 2011-12, with an overall de-growth of 2% for the year. The Company issued over 7 lac policies (including policies sold in rural areas) amounting to Rs.26940.000 Millions of new business regular premium during the financial year. The Group business received Rs.9540.000 Millions of premium during the said year, resulting in a growth of 61%.
During the year, the industry continued to weather the impact of changes introduced by IRDA in September 2010 on ULIP products. With the new regulations on individual ULIP products since September 1, 2010, it was imperative for the Company to relook at its product mix. This was necessary to align to the changing customer preference based on the macroeconomic environment, the need to reduce distribution costs and to continue to attract agents and distributors into the business. The Company increased its focus on traditional participating products and increased its contribution to the individual new business premia from 14% in the previous financial year to 44% in the year.
Inspite of all the recent upheaval, the long-term fundamentals of the industry remain sound based on the relative under-penetration of life insurance in the country and the continued economic growth in India. India is expected to be amongst the top 3 life insurance markets globally by 2020.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2012 Rs. in Millions |
31.03.2011 Rs. in Millions |
|
|
|
|
|
Claims other than against policies, not acknowledged as debts by the company |
8.883 |
4.838 |
|
Statutory demands and liabilities in dispute, not provided for |
2163.295 |
7001.010 |
FIXED ASSETS:
· Land – Freehold
· Leasehold Improvement
· Building
· Furniture and Fittings
· Information Technology Equipment
· Vehicles
· Office Equipment
· Computer Software
PRESS RELEASE
IRDA IMPOSES A
PENALTY OF RS.14.700 MILLIONS ON HDFC LIFE INSURANCE COMPANY
JUNE 29, 2012
The Insurance Regulatory and Development Authority (IRDA)
has levied a fine of Rs.14.700.000 Millions on HDFC Standard Life
Insurance Company Ltd basis their onsite inspection done in July 2010
at HDFC Life’s premises.
The officials at IRDA observed that sums ranging from Rs 0.600 Million to
Rs.2869.200 Millions were paid to HDFC, HDFC Bank, HDFC Securities and HDB
Fin Services who are the “Corporate Agents” of the Insurer under guise of
utilising network for marketing and advertisement campaigns. IRDA concluded
that there have been seven instances of wrongful payment and thus imposed a
penalty of Rs.0.500 Million for each incidence amounting to a total of Rs.3.500
Millions. IRDA fined Rs.0.500 Million to the Insurer as it had solicited and
procured business from some unlicensed entities and it is being logged in the
name of specified persons of Corporate Agents.
In 2003, HDFC had filed for Home Loan Protection Policy, which included a
provision of waiting period of 90 days for consideration of death claim. IRDA
had specifically directed the insurer to remove all exclusion clauses including
the clause relating to 90 day waiting period. But a few cases were found where
21 death claims were rejected on the ground that death occurred within the so
called waiting period of 90 days. For this gross and serious violation, the
regulator has imposed a penalty on each occurrence of up to Rs.0.500 Million
summing up to a total penalty of Rs.10.500 Millions for this
particular violation.
Further, the Insurer is directed to reopen all the 21 rejected claims and
settle them within thirty days of receipt of this order. Insurer is also
directed to forward a communication as an endorsement to the original policy
contract specifically deleting the clause in respect of all the policy
contracts that were issued since the launch of the product and are in force.
A total penalty of Rs. Rs 14.700 Millions has been levied on HDFC Life by IRDA
for failing to achieve compliance of the regulations.
HDFC LIFE STRENGTHENS
ITS RELATIONSHIP WITH RAJASTHAN ROYALS IN IPL 2012
AIMS TO DRIVE THE
ASSOCIATION THROUGH BRAND ACTIVATION AND SOCIAL AND DIGITAL MEDIA ASSOCIATION
TO FOSTER CSR INITIATIVES TOWARDS CHILD WELFARE IN A BIG WAY
APRIL 2, 2012
HDFC Life announces its association with Rajasthan Royals for the fourth consecutive year as the Associate Sponsor in the fifth season of the Indian Premier League (IPL 2012).
Talking about its journey and association with Rajasthan Royals, Mr. Sanjay Tripathy, EVP and Head - Marketing and Direct Channels, HDFC Life said, “Our focus on 'long-term' reflects in our association with Rajasthan Royals since the last three years. Our journey with Rajasthan Royals has been very eventful and momentous. A team known for their self belief, pride, and confidence, Rajasthan Royals continues to epitomize the values of resilience, commitment and intensity and never say die attitude. This spirit goes well with our brand thought – Sar Utha ke Jiyo. With a young and energetic team along with Rahul Dravid as captain and mentor and other top players, Rajasthan Royals will enter the competition as underdogs. But I am confident that their self belief and self confidence will help perform to their best potential.”
HDFC life will continue with 'Sar Utha Ke Jiyo - Most Valuable Player’ award instituted during the first year of association. The Rajasthan Royals coaching staff along with the team captain will select the Most Valuable Player from the Rajasthan Royals team, who will receive this honour along with a cash incentive.
Mr. Raghu Iyer, CEO, Rajasthan Royals said, “We are delighted to continue our association with a brand of the stature of HDFC Life as we have always looked at building long term relationships with our sponsors. I truly admire our association till date with HDFC Life as it goes beyond mere brand visibility. HDFC Life through its innovative communication has managed to capture the true essence of Rajasthan Royals – tremendous self belief and confidence. What they do is not merely deriving value out of the association like traditional sponsors but adds a lot of value to the equity of Brand Rajasthan Royals.”
Speaking on the occasion Mrs. Shilpa Shetty Kundra, co-owner Rajasthan Royals said, “With HDFC Life backing us for this season of the IPL, we are looking forward to an exciting relationship with them, as we share our passion towards cricket and the values of Sar Utha Ke Jiyo.”
HDFC Life plans to drive the core essence of the association through different platforms and intensify the brand experience. Apart from television, digital and social medium will have significant focus. On the digital medium, the company will leverage all channels -- search, display, social, mobile and video -- to reach out to IPL fans across the country. All the activities on the digital medium will enable HDFC Life to bring the huge fan following of Rajasthan Royals closer to the players and offer them an exciting experience of the game.
The company is also associating with various NGOs across the country that are involved in promoting and raising awareness about 'every children's right to education.' 'Children and Education' is one of the core themes of HDFC Life’s overall CSR framework and the company aims to enable under privileged children to dream big. Throughout IPL, there will be diverse initiatives launched to bring the children closer to their dreams by witnessing the matches and spending time with their favorite cricketers.
About HDFC Life
HDFC Life, one of India’s leading private life insurance companies, offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC), India’s leading housing finance institution and Standard Life plc, the leading provider of financial services in the United Kingdom. HDFC Limited holds 72.37% and Standard Life (Mauritius Holding) Limited holds 26.00% of equity in the joint venture, while the rest is held by others.
HDFC Life’s product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health. Customers have the added advantage of customizing the plans, by adding optional benefits called riders, at a nominal price. The company currently has 28 retail and 9 group products in its portfolio, along with 10 optional riders catering to the savings, investment, protection and retirement needs of customers.
HDFC Life continues to have one of the widest reaches among new insurance companies with about 500 branches servicing customer needs in over 700 cities and towns. The company has a strong presence in its existing markets with a strong base of Financial Consultants.
About Rajasthan
Royals
Rajasthan Royals, champions of the inaugural IPL in 2008, is the Jaipur franchise cricket team that represents the state of Rajasthan in the Indian Premier League. The Rajasthan Royals team exemplifies the royal elegance, style, valour and class of Rajasthan and Gujarat. The Rajasthan Royals emblem is a reflection on the golden past and a promising future for the team. The Rajasthan Royals emblem, in royal blue and gold, is a reflection on the rich history of the region and their promising future ahead. The team's mascot is a lion named Moochu Singh.
HDFC LIFE WINS
INTERNATIONAL ACCLAIM FROM AMERICAN SOCIETY FOR TRAINING & DEVELOPMENT
RECOGNITION ACHIEVED
FOR THE USE OF BEST PRACTICES AND SOLUTIONS IN WORKPLACE LEARNING AND
PERFORMANCE
MARCH 28, 2012
HDFC Life, India’s leading life insurance company has received two the ASTD (American Society for Training and Development) Citations for 2011 in the ‘Excellence in Practice’ category which recognizes results achieved through the use of practices and solutions in the workplace learning and performance space. HDFC Life has received citations for Excellence in Practice in two categories - Managing Change - (L and D Transformation Program) and Workplace Learning and Development - (Front Line Sales Learning Roadmap and Program).
ASTD is the world’s largest association dedicated to workplace learning and development professionals. ASTD’s members come from more than 100 countries and connect locally in more than 130 U.S. chapters and with over 30 international partners. In the global training and development space, ASTD awards are the most coveted. The ASTD Board of Directors will honour recipients at an awards ceremony to be hosted at Denver, USA in May this year.
Commenting on
the achievement, R Chandrasekhar, Executive Vice President, Learning and
Development, HDFC Life said, “It is indeed a great privilege to receive this
honour from such a prestigious organization. Selling life insurance in India is
tough but training people to sell insurance is even tougher. The citations are
testimonials to the strategic importance of Learning and development at HDFC
Life.”
The global
financial crises in 2008 introduced new challenges for the insurance industry.
Faced with more stringent regulations on the one hand and tough market
conditions on the other, insurance companies were forced to drastically change
their mindset and their business models. The shortage of trained manpower was
an added challenge. "HDFC Life felt the need for capability development
through high quality training supported by robust systems and processes to
track and report L and D data,” said Chandrasekhar.
He further
added, “The L and D function at HDFC Life undertook a three-year transformation
journey in FY 10-11 with the commitment to systematically improve employee
performance through focussed training interventions.”
Today, Learning and Development at HDFC Life is not just a support function but it is all about business strategy and results.
STANDARD LIFE ASSURANCE CO.
PIC (SLAC) HAS REALIGNED THEIR SHAREHOLDING IN HDFC STANDARD LIFE INSURANCE
COMPANY LIMITED
DECEMBER 31, 2007
HDFC
and Standard Life Assurance Co. pic (SLAC) today have realigned their
shareholding in HDFC Standard Life Insurance Company Ltd (HDFC SLIC), the joint
venture life insurance company established by them. As a result, HDFC has today
sold 7.15% of the equity of HDFC SLIC to Standard Life (Mauritius Holdings)
2006 Limited at a pre agreed price. Post this, Standard Life (Mauritius
Holdings) 2006 Limited holds 26% of the equity capital of HDFC SLIC, the
maximum allowed under current regulations.
HDFC
and SLAC have also agreed that any future sale of shares by HDFC to Standard
Life (Mauritius Holdings) 2006 Limited, if and when permitted by law would be
at a Fair Value.
HDFC
Standard Life is one of India's leading private life insurance companies, which
offers a range of individual and group insurance solutions. The company has
been consistently growing since inception and has a new business market share
of 9.2 percent in the private sector with total premium income of Rs. 2,856
crores in the year 2006-07. The company plans to aggressively grow its business
in the coming years. HDFC SLIC has over 12000 employees and more than 1,00,000
Financial Consultants covering over 700 cities in India.
HDFC
and Standard Life are committed to the continued growth of HDFC SLIC and an IPO
of the business. Subject to the applicable Regulations, the current plan is to
launch the IPO before the end of 2009.
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 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.53.99 |
|
|
1 |
Rs.83.72 |
|
Euro |
1 |
Rs.72.09 |
INFORMATION DETAILS
|
Information Gathered
by : |
JML |
|
|
|
|
Report Prepared
by : |
BSN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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.