|
Report Date : |
25.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED |
|
|
|
|
Formerly Known
As : |
ALLIANZ BAJAJ LIFE INSURANCE COMPANY LIMITED |
|
|
|
|
Registered
Office : |
Ground Floor, G.E. Plaza, |
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|
|
|
Country : |
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|
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Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
12.03.2001 |
|
|
|
|
Com. Reg. No.: |
11-15959 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1507.090
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U6601PN2001PLC015959 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PNEA03242B |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
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|
|
|
Line of Business
: |
Providing Life Insurance Related Services |
|
|
|
|
No. of Employees
: |
Information declined by management |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (73) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 194000000 |
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|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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|
|
Litigation : |
Clear |
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|
|
Comments : |
Subject is a well established and reputed company having a good track record.
There appears slight dip in the profitability during 2013. However, general financial strength seems to be strong. Liquidity
position is good. Performance capability is high. Trade relations are reported to be fair. Business is active. Payments
are reported to be regular and as per commitment. In view of experience promoters, the company can be considered for
normal business dealings at usual trade terms and condition. |
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 (Tel. No. 91-20-66026777)
LOCATIONS
|
Registered/ Head Office : |
Ground Floor, G.E. Plaza, |
|
Tel. No.: |
91-20-66026777/ 30587888/ 30305858 |
|
Fax No.: |
91-20-66026789/ 40111502 |
|
E-Mail : |
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|
Website : |
|
|
|
|
|
Customer Care Centre : |
Located at: Rajasthan |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Sanjiv R Bajaj |
|
Designation : |
Chairman |
|
Address : |
Bajaj Auto Colony, Mumbai – |
|
Date of Birth/Age : |
02.11.1969 |
|
Date of Appointment : |
12.03.2001 |
|
|
|
|
Name : |
Mr. V. Philip |
|
Designation : |
Managing Director and Chief Executive Officer |
|
|
|
|
Name : |
Mr. Sanjay K. Asher |
|
Designation : |
Director |
|
Address : |
No. 32, Mody Street, Mumbai – 400001, |
|
Date of Birth/Age : |
26.11.1963 |
|
Date of Appointment : |
06.06.2002 |
|
|
|
|
Name : |
Mr. Niraj R. Bajaj |
|
Designation : |
Director |
|
Address : |
Flat No. 97, Mount Unique, 13th Floor, 62A, Mumbai –
400026, |
|
Date of Birth/Age : |
10.10.1954 |
|
Date of Appointment : |
06.03.2008 |
|
|
|
|
Name : |
Mr. Rahul K. Bajaj |
|
Designation : |
Chairman Cum Managing Director |
|
Address : |
Bajaj Auto Colony, Mumbai – |
|
Date of Birth/Age : |
10.06.1938 |
|
Date of Appointment : |
12.03.2001 |
|
|
|
|
Name : |
Mr. Manuel Bauer |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kamesh G. Goyal |
|
Designation : |
Alternate Director to Mr.
Manuel Bauer) |
|
Address : |
244/254, |
|
Date of Birth/Age : |
25.05.1966 |
|
Date of Appointment : |
06.03.2008 |
|
|
|
|
Name : |
Mr. Ranjit K. Gupta |
|
Designation : |
Director |
|
Address : |
131/24, PCNTD, Nigdi, Pune – 411044, |
|
Date of Birth/Age : |
19.03.1943 |
|
Date of Appointment : |
12.03.2001 |
|
|
|
|
Name : |
Mr. Serajul H. Khan |
|
Designation : |
Director |
|
Address : |
181 Antariksha Apts, 95/96 Ameva |
|
Date of Birth/Age : |
01.07.1938 |
|
Date of Appointment : |
22.09.2006 |
|
|
|
|
Name : |
Mr. Suraj C. Mehta |
|
Designation : |
Director |
|
Address : |
No. 24, Sonarica 33A, |
|
Date of Birth/Age : |
01.05.1944 |
|
Date of Appointment : |
06.06.2002 |
|
|
|
|
Name : |
Mr. Manu P. Tandon |
|
Designation : |
Director |
|
Address : |
16 Solitaire |
|
Date of Birth/Age : |
24.07.1943 |
|
Date of Appointment : |
22.09.2007 |
KEY EXECUTIVES
|
Name : |
Mr. Rajesh Viswanathan |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Saisrinivas Dhulipala |
|
Designation : |
Appointed Actuary |
|
|
|
|
Name : |
Mr. Sameer Bakshi |
|
Designation : |
Company Secretary and Head – Legal and Compliance |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.07.2010
|
Names of Shareholders |
|
No. of Shares |
|
Bajaj Finserv Limited, |
|
111524060 |
|
Allianz |
|
39184340 |
|
Bajaj Finserv Limited, |
|
100 |
|
Bajaj Finserv Limited, |
|
100 |
|
Bajaj Finserv Limited, |
|
100 |
|
Bajaj Finserv Limited, |
|
100 |
|
Bajaj Finserv Limited, |
|
100 |
|
Bajaj Finserv Limited, |
|
100 |
|
Total |
|
150709000 |
AS ON 30.07.2010
Equity Shares break-up
|
Sr. No. |
Category |
Percentage of
Holding |
|
1. |
Foreign holdings (Foreign institutional investor(s),
Foreign comanie(s) Foreign financial institution(s), Non-resident indian(s)
or overseas corporate bodies or others |
26.00 |
|
2. |
Bodies Corporate |
74.00 |
|
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Life Insurance Related Services |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by management |
|
|
|
|
Bankers : |
· Standard Chartered Bank AXIS
Bank Limited Deutsche
Bank HDFC
Bank Limited Citi
Bank |
|
|
|
|
Banking Relations
: |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Dalal and Shah Chartered Accountant |
|
Address : |
252. Veer Savarkar Marg, |
|
|
|
|
Name : |
BSR and Company Chartered Accountant |
|
|
|
|
Holding
Company : |
Bajaj Finserv Limited |
|
|
|
|
Group
Company : |
· Bajaj Auto Limited Bajaj
Finance Ltd. (Earlier Known as Bajaj Auto Finance Limited) Bajaj
Allianz General Insurance Company Limited Bajaj
Allianz Financial Distributors Limited Bajaj
Financial Solutions Limited Allianz
Insurance Management Asia Pacific Pte. Limited Allianz
Managed Operations and Services SE Allianz
SE Reinsurance Branch Asia Pacific. Hind
Musafir Agency Limited IDS
GmbH Allianz
Investment Management Singapore Pte. Limited Bajaj
Electricals Limited |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
200000000 |
Equity Shares |
Rs.10/- each |
Rs.2000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150709000 |
Equity Shares |
Rs.10/- each |
Rs.1507.090
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
SHAREHOLDERS
FUNDS |
|
|
|
|
Share Capital |
1507.090 |
1507.090 |
1507.090 |
|
Reserves & Surplus |
46955.345 |
34098.981 |
20986.962 |
|
Credit / Debit Fair Value Change Account |
(21.744) |
0.000 |
0.005 |
|
NETWORTH |
48440.691 |
35606.071 |
22494.057 |
|
|
|
|
|
|
BORROWINGS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
POLICYHOLDER’S
FUNDS |
|
|
|
|
|
|
|
|
|
Credit / Debit Fair Value Change Account |
51.684 |
55.847 |
37.544 |
|
|
|
|
|
|
Policy
Liabilities |
|
|
|
|
Participating : |
|
|
|
|
Individual Assurance |
48456.276 |
32544.438 |
21546.414 |
|
Individual
Pension |
547.852 |
480.703 |
437.321 |
|
|
|
|
|
|
Non – Participating |
|
|
|
|
Individual Assurance |
8000.764 |
5425.333 |
2590.574 |
|
Individual Health |
190.514 |
182.785 |
163.927 |
|
Individual Anniuty |
764.229 |
512.007 |
312.114 |
|
Group Assurances |
25552.963 |
13069.765 |
7581.846 |
|
|
|
|
|
|
Linked : |
|
|
|
|
Individual Assurances |
4129.299 |
4181.769 |
5526.929 |
|
Individual Pension |
19.348 |
128.757 |
270.886 |
|
Group |
24.018 |
13.084 |
16.664 |
|
Total
|
87685.263
|
56538.641
|
38446.675
|
|
|
|
|
|
|
Insurance Reserves |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
Provisions for Linked Liabilities |
|
|
|
|
Linked Liabilities |
231098.609 |
277000.156 |
285074.847 |
|
Fair Value Change |
13867.136 |
22838.105 |
43766.858 |
|
Total
|
244965.745 |
299838.261 |
328841.705 |
|
|
|
|
|
|
Provision For Discontinuance Fund |
489.840 |
156.384 |
0.000 |
|
|
|
|
|
|
Sub-Total
(1+2+3+4) |
333192.532 |
356589.133 |
367325.924 |
|
|
|
|
|
|
FUNDS
FOR FUTURE APPROPRIATIONS |
|
|
|
|
Participating : |
|
|
|
|
Individual Assurance |
1683.050 |
1383.948 |
1150.293 |
|
Individual
Pension |
57.543 |
58.847 |
33.404 |
|
Reserve
For Lapsed Unit Linked Policies |
0.000 |
847.971 |
1745.324 |
|
Total
|
1740.593 |
2290.766 |
2929.021 |
|
|
|
|
|
|
TOTAL |
383373.816 |
394485.970 |
392749.002 |
|
|
|
|
|
|
APPLICATION
OF FUNDS |
|
|
|
|
|
|
|
|
|
INVESTMENTS
|
|
|
|
|
Shareholders’ |
46878.100 |
36005.554 |
23520.820 |
|
|
|
|
|
|
Policyholders’ |
|
|
|
|
Participating : |
|
|
|
|
Individual Assurance |
48893.876 |
33071.320 |
22395.698 |
|
Individual
Pension |
577.181 |
521.828 |
463.956 |
|
|
|
|
|
|
Non – Participating |
|
|
|
|
Individual Assurance |
8059.151 |
5268.941 |
2547.408 |
|
Individual Health |
199.644 |
182.904 |
163.427 |
|
Individual Anniuty |
727.840 |
492.756 |
307.254 |
|
Group Assurances |
25196.213 |
12659.090 |
7689.335 |
|
|
|
|
|
|
Linked : |
|
|
|
|
Individual Assurances |
3993.903 |
5932.608 |
7087.339 |
|
Individual Pension |
22.001 |
183.119 |
264.331 |
|
Group |
24.717 |
16.814 |
18.491 |
|
Total
|
87694.526 |
58329.380 |
40937.239 |
|
|
|
|
|
|
ASSETS
HELD TO COVER LINKED LIABILITIES |
244965.745 |
299838.261 |
328841.705 |
|
|
|
|
|
|
ASSETS HELD TO COVER DISCONTINUED FUNDS |
489.840 |
156.384 |
0.000 |
|
|
|
|
|
|
LOANS
|
241.483 |
170.660 |
147.078 |
|
|
|
|
|
|
FIXED
ASSETS [NET BLOCK] |
2513.572 |
2211.554 |
1559.693 |
|
|
|
|
|
|
CAPITAL
WORK-IN PROGRESS |
4.663 |
50.870 |
94.016 |
|
|
|
|
|
|
CURRENT
ASSETS : |
|
|
|
|
Cash and Bank Balances |
7147.509 |
4382.396 |
4385.098 |
|
Advances and Other Assets |
9293.404 |
5364.592 |
3832.457 |
|
Sub-total
|
16440.913 |
9746.988 |
8217.555 |
|
|
|
|
|
|
LESS:
CURRENT LIABILITIES AND PROVISIONS |
|
|
|
|
Sundry Creditors |
3448.547 |
3617.714 |
3282.332 |
|
Other Current liability |
10468.072 |
7037.140 |
6218.583 |
|
Provisions |
1938.407 |
1368.827 |
1068.189 |
|
Sub-total
|
15855.026 |
12023.681 |
10569.104 |
|
Net
Current Assets |
585.887 |
(2276.693) |
(2351.549) |
|
|
|
|
|
|
MISCELLANEOUS
EXPENDITURE |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
DEBIT
BALANCE IN PROFIT AND LOSS ACCOUNT |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
TOTAL |
383373.816 |
394485.970 |
392749.002 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
Amounts Transferred from the Policyholder’s Account |
9174.839 |
10691.260 |
9355.074 |
|
|
|
|
|
|
INCOME FROM INVESTMENTS |
|
|
|
|
a) Interest, Dividend and Rent – Gross |
4134.675 |
2732.290 |
1759.051 |
|
b) Profit on sale / redemption of
investments |
250.538 |
201.360 |
96.140 |
|
c) loss on sale / redemption of investments |
(70.186) |
(25.587) |
(31.364) |
|
d) Transfer / Gain on revaluation / change
in fair value |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
OTHER INCOME |
17.507 |
1.066 |
0.000 |
|
|
|
|
|
|
TOTAL (A) |
13507.373 |
13600.389 |
11178.901 |
|
|
|
|
|
|
Expenses other than those directly related
to the insurance business |
48.197 |
76.124 |
45.534 |
|
Others |
|
|
|
|
Provisions (Other than Taxation) |
0.000 |
0.000 |
0.000 |
|
Contributions to the Policyholder’s Account |
|
|
|
|
|
|
|
|
|
Non – Participating |
|
|
|
|
Individual Assurance |
3.289 |
0.000 |
0.000 |
|
Individual Health |
0.000 |
0.000 |
0.000 |
|
Individual Anniuty |
20.214 |
28.489 |
11.874 |
|
Group Assurances |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
Linked : |
|
|
|
|
Individual Assurances |
`0.000 |
0.000 |
0.000 |
|
Individual Pension |
0.000 |
0.000 |
304.846 |
|
Group Superannuation |
0.000 |
0.000 |
0.000 |
|
Group Gratuity |
0.000 |
0.000 |
0.000 |
|
Total
|
23.503 |
28.489 |
316.720 |
|
|
|
|
|
|
TOTAL (B) |
71.700 |
104.613 |
362.254 |
|
|
|
|
|
|
Profit
/ Loss Before Tax |
13435.673 |
13495.776 |
10816.647 |
|
|
|
|
|
|
Provision for Taxation including Wealth
Tax |
579.309 |
383.757 |
246.257 |
|
|
|
|
|
|
Profit
/ Loss After Tax |
12856.364 |
13112.019 |
10570.390 |
|
|
|
|
|
|
Balance
at the beginning of the year |
23499.431 |
10387.412 |
(182.978) |
|
|
|
|
|
|
Profit
/ Loss carried forward to Balance Sheet |
36335.795 |
23499.431 |
10387.412 |
|
|
|
|
|
|
Earning
Per Share (Basic and Diluted) |
85.31 |
87.00 |
70.14 |
LOCAL AGENCY FURTHER INFORMATION
NOTE:
INDEX OF CHARGES: NO
CHARGES EXIST FOR COMPANY
CURRENT MATURITIES OF
LONG TERM DEBT : NOT AVAILABLE
|
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 |
No |
|
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+ |
No |
|
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 |
CHARGES
|
ENTITY |
PERSON |
COMPETENT AUTHORITY |
REGULATORY CHARGES |
REGULATORY
ACTION(S) / DATE OF ORDER |
FURTHER
DEVELOPMENTS |
|
Bajaj Allianz General Insurance Company Limited |
|
IRDA |
Did not exercise due diligence in terms of clause 5 of guidelines
in matter of renewal of licence of corporate agents |
|
|
|
Bajaj Allianz General Insurance Company Limited |
|
IRDA |
Enrolled new members into existing group scheme violating provisions |
|
|
|
Bajaj Allianz General Insurance Company Limited |
|
SEBI |
Launched unit linked insurance products (ulips) without obtaining requisite certificate of registration from SEBI |
||
|
Bajaj Allianz General Insurance Company Limited |
|
IRDA |
Opened offices without obtaining prior approval of IRDA |
|
BACKGROUND
The Company was incorporated on 12th March 2001 as a Company under the Companies Act, 1956. The Company obtained a license from the InsuranceRegulatory and Development Authority (“IRDA”) for carrying on the business of life insurance on 3rd August 2001. The registration certificate granted by IRDA is valid and the same has been renewed for the year 2013-2014. The Company has a wide range of products in traditional and unit-linked insurance business.
THE LIFE INSURANCE
INDUSTRY
The Life Insurance industry has been going through a phase of slow growth in the last few years as the share of financial savings of GDP fell sharply, low-risk alternatives like bank deposits became more attractive and the impact of changes in unit-linked product regulations in September 2010 caused insurers to reorient their product mix and distribution channels.
During FY 12-13, the life insurance industry had a new business de growth of 6.3% as against a de growth of 9.2% in FY 12. The 24 life insurers have mobilized a first year premium of Rs 1070.1 billion in FY 13 as compared to Rs 1142.3 billion in the previous year. Group premium (single and non single) has contributed to 42.0% of overall new business in FY 13 (43.5% in FY 12).
During the year, the industry also witnessed significant increase in benefit payments mainly due to surrender payments under unitlinked policies issued before the new linked guidelines and which completed the mandatory three year lock-in. Insurers are realising the need to focus on long-term drivers of the business such as improving
persistency of policies, increasing the quality and productivity of agents, rationalising the cost structure and, most importantly, educating customers that life insurance is a long-term product.
Towards the end of FY 13, IRDA announced a host of regulations revamping areas like product design, health insurance, places of business, reinsurance etc. The regulations related to product design are the ones likely to have the highest impact on the industry as it gears up to streamline implementation. Insurers are still trying to adjust to the significant changes rolled out in 2010 for linked products and they will now have to undergo further significant reassessment of their business models. Many existing products have to be re-filed and the cceptability of the new products by prospective policyholders and intermediaries will be known by the second half of FY 2014, when the new suite of products is rolled out by the insurers. New business growth in FY 14, is therefore likely to be subdued.
SUMMARY OF OPERATIONS
FOR THE YEAR
BUSINESS PERFORMANCE
The company is at Fourth position amongst the private life insurers on the basis of new business premium for the financial year 2012-13.It wrote new business of Rs. 29.9 billion during financial year 2012-13 compared to Rs. 7.2 billion in the previous year, registering a 10% growth. The gross premium written for the financial year 2012-13 was Rs. 68.9 billion, as compared to Rs. 74.8 billion in the previous year, registering a 7.9% de growth. Within the private sector, the company’s market share of new business premium was 9.7% for 2012-13, as compared to 8.3% in the year 2011-12.
Unit linked premiums contributed 18.9% of the company’s new business premiums in 2012-13, compared to 31.0% in the previous year. Traditional individual premiums constituted 36.0% of overall new business premiums in financial year 2012-13 as compared to 44.3% in financial year 2011-12.
The company earned a profit in the Policyholders’ account, of Rs. 8.6 billion during 2012-13, as compared to a profit of Rs. 10.1 billion in the previous year. After the distribution of current year’s surplus of Rs. 8.3 billion (Previous Year Rs.9.8 billion) further transfer of Rs. 0.85 billion (Previous Year Rs. 0.90 billion) from Funds for Future Appropriation and the investment income from shareholders’ funds, the shareholders’ profit after tax was Rs. 12.8 billion (Previous Year Rs. 13.1 billion). The company has accumulated profits included under Reserves and Surplus, of Rs. 36.4 billion as at 31st March 2013.
INVESTMENTS:
The funds under management as on 31st March 2013 were Rs. 380.0 billion which included shareholder investments of Rs. 46.9 billion, traditional policyholder investments of Rs. 87.7 billion and unit Linked investments of Rs. 245.0 billion and Discontinued Funds Investments of Rs. 0.5 billion. A decline in the total unit linked funds
of the company has resulted in a reduction in the total investments under management of the company by 3.6% from Rs. 394.3 billion in the previous year, which was due to the Unit linked surrenders and decline in Unit linked investment.
The company adopted a relatively conservative investment philosophy focusing on asset allocation and investments in stocks with strong balance sheets and high levels of corporate governance. The non unit linked portfolios were managed within the framework of regulatory asset allocation requirements. Global turmoil coupled
with deterioration in the domestic macroeconomic variables resulted in volatility in the markets on both the fixed income and equity segments in the year. Interest rates declined over the later part of the year and the company’s cash funds and bond funds delivered healthy returns. The company’s diversified equity funds have
delivered returns that are comparable to the returns on the S&P CNX Nifty 50 index.
RECOGNITION &
AWARDS
The company received the SKOCH Financial Inclusion Award 2012 for its contribution towards financial inclusion through life insurance, for the third consecutive year. In addition to this, the company also won the prestigious “Organisation of the Year” at the SKOCH Financial Inclusion Award for the pioneering and sustained initiatives in the micro-insurance market. The company was also awarded Certificates of Merit in recognition for its micro-insurance initiatives in the following areas:
a. Category 1- Micro Insurance Initiative – Securing the Unsecured
b. Category 2- Settling the claims at nominee’s doorsteps
c. Category 3- Insurance awareness & education
d. Category 4- Innovations in Micro Insurance renewals & persistency Management
The company emerged as a runner-up in the Best Life Insurance Provider category at the Outlook Money Awards 2012.
The company has been ranked as the 3rd Best Life Insurer and is amongst the 50 top service brands as per the annual ‘Most Trusted Companies’ survey conducted by Economic Times Brand Equity and AC Nielsen-ORG Marg 2012.
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
In Millions) |
|
Partly-paid up investments |
0.000 |
0.000 |
|
Underwriting commitments outstanding |
0.000 |
0.000 |
|
Claims, other than those under policies, not acknowledged as debts |
36.846 |
37.167 |
|
Guarantees given by or on behalf of the Company |
0.000 |
0.000 |
|
Statutory demands/liabilities in dispute, not provided for |
12.833 |
7.064 |
|
Reinsurance obligations to the extent not provided for in accounts |
0.000 |
0.000 |
|
Claims, under policies, not acknowledged as debts |
189.795 |
113.812 |
FIXED ASSETS
· Intangible -Computer Software
Leasehold
Improvements
Buildings
Electrical
Fittings
Furniture
and Fittings
Information
Technology Equipment
Air
Conditioner
Vehicles
Office
Equipment
PRESS RELEASE
BAJAJ ALLIANZ LIFE INSURANCE SELLS 4 LAKH SHARES OF MASTEK
New Delhi June
3, 2013
Private sector life insurance firm, Bajaj Allianz Life Insurance Company, today offloaded nearly four lakh shares of infotech solutions company, Mastek Limited for Rs 50.000 millions.
According to information available with the stock exchanges, Bajaj Allianz Life
Insurance sold 3.99 lakh shares of Mastek through bulk deals.
The shares were sold on an average price of Rs 125 valuing the transaction at
Rs 49.800 millions.
Meanwhile, Morgan Stanley Asia (Singapore) Pte bought three lakh shares
of Mastek for Rs 37.500 millions.
Earlier in December, Bajaj Allianz Life Insurance had sold 4 lakh shares of
Mastek for an estimated Rs 60.800 millions in open market transactions.
As of March quarter, Bajaj Allianz Life Insurance held 8.69 lakh shares or
3.53% stake in Mastek.
Shares of Mastek rose 1.26% to settle at Rs 123.70 apiece on the BSE.
GILT YIELDS COULD DROP TO 7% IN THE NEXT ONE YEAR: SAMPATH REDDY, BAJAJ
ALLIANZ LIFE INSURANCE
Jun 3, 2013,
As interest rates drop and the outlook for the markets turns positive, it would be beneficial to invest in equities before valuations soar, says Sampath Reddy, CIO, Bajaj Allianz Life Insurance in a conversation with ET.
What are your
thoughts on the ongoing earnings season?
There is no major change of trend in terms of earnings till now. The same few sectors are doing well this time around too. Private banks, for instance, continue to exhibit growth, while PSU banks continue to show weakness. The FMCG and pharma set have also done reasonably well again while capital goods, engineering, power, etc, continue to suffer.
However, I expect this trend to change in the future, and a turnaround in these sectors will be a key trend to watch out for. For the stressed sectors, the downward trajectory in interest rates is important as it could change the business dynamics as well as bring down interest costs. Telecom is another sector that is bottoming out in terms of earnings.
Have we seen the last
of earnings downgrades?
I think the downgrade cycle is definitely over. The issue now is, when we will see the upgrades, which appears to be a challenge. I expect earnings upgrades a couple of quarters down the line. This would be the key trigger that would drive stock performance over the coming years.
What are your
expectations on the reforms front?
The election schedule across states leading up to the general elections is very tight, so we may not see much going through in terms of continuation of the reforms process. Whatever is already done till now will continue, such as the fuel price increases. Incremental reforms in the form of correcting subsidies or improving the health of state electricity boards might happen, but no big-bang reforms seem likely.
Are you going to
deploy cash aggressively in your portfolio?
We are not holding a lot of cash as we are positive on the outlook for the markets. If not for the recent sharp rally, we would have been fully invested, but going forward, we will cut cash levels further. I believe that we are moving towards an up-cycle and the coming 3-4 years are likely to be rewarding for the equity markets.
So, it's a good idea to be fully invested. Are you comfortable shifting away from defensive bets to more aggressive ones? Yes, I think we definitely need to do it. We have started shifting our portfolios but only in a small way now. The intention is to take it one step at a time and make a gradual shift in our holdings.
Since defensives continue to outperform, the allocation has also been on the higher side. However, a delay in the shift cannot be avoided anymore and would be at the peril of buying at a much higher price later on.
Which are the sectors
you favour now?
We are overweight on defensives, but with the appreciation in the stock prices we are no longer bullish. We are incrementally positive on capital goods, metals, etc, where newsflow continues to be disappointing. These entities are still bleeding, with the environment not being conducive. In my opinion, the worst would be largely behind for these companies and the outlook could only improve from here on. Valuations are also supportive with many companies trading at multi-year lows.
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY SLAPS RS 5 LAKH FINE ON
BAJAJ ALLIANZ LIFE INSURANCE
Jul 26, 2012
MUMBAI: The Insurance Regulatory and Development Authority today slapped Rs 5 lakh fine on Bajaj Allianz Life Insurance for enrolling new members into the existing group schemes.
"By taking it into account of the seriousness of the violation a penalty of rupees five lakhs is imposed on the insurer under section 102(b) of the Insurance Act, 1938," the regulator said.
NEXT 3-6 MONTHS WILL BE A CHALLENGING TIME FOR INDIA: SAMPATH REDDY,
CIO, BAJAJ ALLIANZ LIFE INSURANCE
April 23, 2012,
ET Now: Globally, the growth scare is back. None of the
Q4 earnings have been above estimates. Given the way global liquidity has moved
in last 10-15 days, do you think that in the near term Indian markets could
correct further?
Sampath Reddy: I agree. Global growth concerns are coming back and yields on European bonds are rising again.
Spanish government bond yields are pretty much close to all-time highs. So, liquidity concerns are coming back. The LTROs that happened December and February have helped Jan-Feb-March months for us in the sense that a good amount of liquidity was injected. So, about $9 billion came in those first three months of the calendar year predominantly led by LTRO and other liquidity actions by central bankers.
But after that, there has been a significant slowdown in terms of FII flows and GAAR is also adding to the confusion. So FII flows will continue to be weak not only due to global liquidity but also due to local issues.
Most countries are either suffering from tight liquidity or poor growth. That will certainly have an impact on the Indian markets as well. The next three to six months are really going to be challenging for India. The markets will see a decent amount of correction and good opportunity for investors in the Indian stock market.
ET Now: How have you read on the news out on Infosys? Now
that the company has come under the scanner of the US home loan security as
well, the stock has taken a huge knock of about 4%. How damaging could this be
in the medium to long term?
Sampath Reddy: Infosys has been doing business with US companies for so many years successfully. I am sure they will be able to sort out this particular issue very soon.
But that growth itself has come down significantly is a cause of concern to IT companies; a 10% to 12% volume growth is going to be the norm for the next two to three years. One positive thing for IT companies or for Infosys is that in the next two to three years, currency could be a good driver of growth in earnings for these companies.
In the last seven to eight years, the currency effect on most IT companies' earnings has been pretty much nil. Broadly, the rupee was in the 48-49 range. Since then, there has not been much of a depreciation in our currency. Going forward, the rupee could depreciate a little bit faster than what it has done in the last seven or eight years. This will drive the earnings growth for IT companies. From a three- to five-year perspective, IT companies will have about 10% to 12% of volume growth.
The currency effect will add another 5% to earnings growth. So, these companies should be able to do 15% of earnings growth in the next three to four years. From that perspective, Infosys is also looking good at these levels.
ET Now: So at the current juncture, are you sitting on
cash or are you fully invested? If you have been fully invested in last three
months, have you been in a buy or a sell mode?
Sampath Reddy: In the last one year, we have had around 27%-28% cash level when the index was closer to the 20,000 levels. Subsequently, we brought down the level, and right now we are around 12% to 13%.
At any given point of time, generally, we are maintain at least a 10% cash level. So, from the perspective of our historical average, we are pretty much fully invested.
We did have a good amount of investments done in the month of December. But, in the last couple of months, we were pretty much away from the market and were neither a net buyer nor a net seller. In next three to six months, we will get a good opportunity to deploy our surplus cash as well. So we look to do that in the next two to three months.
ET Now: What about defensives, in particular the entire
pharma pack?
Sampath Reddy: Last financial year, we were big on FMCG and pharmaceutical names. Given that they have already done very well in relation to other sectors, we do not have a big call on defensives as yet.
We have not cut down our positions, but our incremental purchases would not be in the defensives. Overall, our relative weighting of these two sectors will only come down in three to six months. These sectors have done very well and have been overweight in our portfolios.
So, we may bring them closer to the market levels as we move into the financial year fully. I would think our incremental purchases would be more on the manufacturing and cyclical sectors.
GODREJ AADHAAR TIES-UP WITH BAJAJ ALLIANZ LIFE INSURANCE
Company News, July 27
MUMBAI
Godrej Aadhaar, the agri services cum retail initiative of Godrej Agrovet Limited, today signed an agreement with Bajaj Allianz Life Insurance, India’s largest private life insurer to offer life insurance products to the rural community through its outlets. This was announced by Mr. C.K.Vaidya, Managing Director, Godrej Agrovet Limited and Mr. Sam Ghosh, Chief Executive Officer, Bajaj Allianz Life Insurance Company and Country Manager, Allianz at a press conference in Mumbai today.
Speaking at the occasion Mr. C.K.Vaidya stated that “We are pleased to announce
Godrej Aadhaar’s tie-up with Bajaj Allianz Life Insurance. The rural market in
India is vibrant and holds tremendous growth potential for both retail as well
as insurance businesses. Through this strategic alliance our consumers can now
look forward to getting more value added services from Aadhaar outlets and we
could provide the rural community with a reasonable degree of security and
assurance.”
According to Mr. Sam Ghosh, “Godrej Aadhaar would give Bajaj Allianz Life
Insurance the reach to distribute simple and flexible life insurance products
to rural markets which would address highest potential untapped market by
private life insurer and provide comprehensive security and wealth creation
opportunities to the rural population”
The uniqueness of Godrej Aadhaar lies in their ability to touch the lives of
the Indian farmers, their families and their communities by offering great
value propositions all under one roof. The new format stores mark the beginning
of a chain which shall form the farmer’s Aadhaar for “Unnati, Ghar Sansar and
Gaon”, a move from being just a Complete Agricultural Solution Provider to
being a multi category service cum retail outlet with wide range of products
and services housing a fair mix of brands and private labels. Recently Godrej
Aadhaar tied-up with Apollo pharmacy to offer medicine support across Aadhaar
outlets in rural India. Insurance is the latest addition to their portfolio of
services. Through this tie-up Godrej Aadhaar intends to expand their portfolio
of products and services to the rural community.
Rural India primarily has been an untapped market, which was only serviced by
the state owned life insurer since the opening up of the insurance sector 5
years back. The Tie-up with Godrej Aadhaar would not only improve the
distribution arm of Bajaj Allianz Life Insurance but also make available the
much in demand Unit Linked insurance plans to the rural population.
Apart from ULIPs Bajaj Allianz Life also has a few specially designed rural
products like InvestGain and CashGain in its kitty which not only have low
ticket size but are easier to administer with less stringent underwriting
guidelines.
About Godrej Aadhaar
Godrej Agrovet Limited belongs to the Rs. 6500 Cr Godrej Group and is a key
player in the Indian agricultural sector with a large presence in cattle,
poultry, aqua feeds and innovative agricultural inputs. With a turnover of over
Rs. 900 Cr, the company employs more than 1600 employees and has over 40
manufacturing and processing facilities across India. Godrej Agrovet is a
market leader in animal feeds, innovative agri products and oil palm development
in India. Godrej Aadhaar is the agri service cum retailing venture of Godrej
Agrovet, an initiative started to strengthen its age old relations with the
Indian farmers.
Presently there are 28 Aadhaar Centres across the country in the States of Maharashtra
(Mancher, Alephata, Ranjini, Umbraj and Ozar), Gujarat (Prantij,
Umreth,Asodhar, Kamrej and Kim), Punjab (Thakthuchak, Wallah, Samrala,
Sultanpur Lodhi, Malsian, Jagraon, Tarn Tarn, Ajnala and Doraha), West Bengal
(Chanda, Gadamara), Haryana (Hansi, Ladhwa), Orissa (Paga), Tamil Nadu (TN
Palyam, Hosur) and Andhra Pradesh (Mangalgiri). The Company plans to set up
over 1000 Godrej Aadhaars in the next 5 years across the country.
About Bajaj Allianz:
Bajaj Allianz Life Insurance Company was the No1. pvt. sector Life Insurance
co. for the FY 2005-06. With a pan India presence and over 700 + offices, Bajaj
Allianz Life Insurance has already has a customer base of 13 lac customers.
Bajaj Allianz Life Insurance has developed insurance solutions that cater to
every segment and age-income profiles. For companies it provides comprehensive
'Employee Benefit Solutions' (Group Term Life, EDLI, Gratuity, Superannuation,
Keyman Insurance and more); for the individual InvestGain (a unique life
insurance plan where sustenance of income is combined in the same plan that
also pays a lump sum), Cash Gain (Money Back), Child Gain (Children's plan),
Risk Care (Pure Term), Lifetime Care (whole life), Term Care (term with return
of premium), Swarna Vishranti (Retirement Plan), Protector (Mortgage term
insurance plan), New UnitGain Super, New FamilyGain, New UnitGain Plus, New
UnitGain, New UnitGain Premier, New UnitGain Easy Pension Plus, New UnitGain
Easy Pension Plus – single premium. Currently Bajaj Allianz has a product
portfolio of 26 products and more need-based products are in the pipeline.
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.59.45 |
|
|
1 |
Rs.91.24 |
|
Euro |
1 |
Rs.78.44 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
73 |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.