MIRA INFORM REPORT

 

 

Report Date :

20.03.2013

 

IDENTIFICATION DETAILS

 

Name :

FUTURE GENERALI INDIA LIFE INSURANCE COMPANY LIMITED [w.e.f. 18.04.2007]

 

 

Formerly Known As :

FUTURE GENERALI INDIA LIFE ASSURANCE COMPANY LIMITED

 

 

Registered Office :

6th Floor, Tower 3, Indiabulls Finance Centre, Senapati Bapat Marg, Elphinstone Road (West), Mumbai – 400013, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

30.01.2006

 

 

Com. Reg. No.:

11-165288

 

 

Capital Investment / Paid-up Capital :

Rs. 12030.000 Millions

 

 

CIN No.:

[Company Identification No.]

U66010MH2006PLC165288

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMF04761B

 

 

PAN No.:

[Permanent Account No.]

AABCF0190Q

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Providing Insurance and Financial Services.

 

 

No. of Employees :

100 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (45)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 53100000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a Joint Venture between India based Future Group and Italy based General Group.

 

It is a well established and reputed company having satisfactory track record. There appear some accumulated losses recorded by the company. However, the company receives good support from its holding companies. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitment.

 

The company can be considered normal for 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.

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

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 PARTED BY (GENERAL DETAILS)

 

Name :

Mr. Rohit Das

Designation :

Finance Department

Contact No.:

91-22-40779393

Date :

18.03.2013

 

 

LOCATIONS

 

Registered Office :

6th Floor, Tower 3, Indiabulls Finance Centre, Senapati Bapat Marg, Elphinstone Road (West), Mumbai – 400013, Maharashtra, India

Tel. No.:

91-22-40976913/ 40976666

Fax No.:

91-22-40976600

E-Mail :

roc.info@pantaloon.com

abhay.patil@futuregenerali.in

care@futuregenerali.in

group.quotes@futuregenerali.in

madan.jalan@ruturegenerali.in

nilesh.mejari@futuregenerali.in

abhay.patil@futuregenerali.in

Website :

www.futuregenerali.in

Location :

Owned

 

 

Branches :

Located at:

 

Ø  104/105, 1st Floor, Neelyog Square, P.B. Mehta Road, Near Ghatkopar Station (East), Mumbai – 400075, Maharashtra, India

 

Ø  1st Floor, Jalaram Business Centre, Above Axis bank, Ganjawala Lane, Borivali (West), Mumbai – 400092, Maharashtra, India

Tel No.: 91-22-40779393

 

Ø  DGP House, 1st Floor, 88-C, Old Prabhadevi Road, Dadar (West), Mumbai – 400025, Maharashtra, India

Tel No.: 91-22-66152000

 

Ø  1st Floor, No. 3 and 3A, Rahimtoola House, 7 Homji Street, Fort, Mumbai – 400001, Maharashtra, India

 

 

DIRECTORS

 

AS ON 29.06.2012

 

Name :

Mr. Ghyanendra Nath Bajpai

Designation :

Chairman

Address :

131 Shaan Apartment, K D Marg, Prabhadevi, Mumbai – 400028, Maharashtra, India

Date of Appointment :

16.03.2007

DIN No.:

00946138

 

 

Name :

Mr. Deepak Sood

Designation :

Managing Director and CEO

Address :

1903-04, A-Wing, Chaitanya Towers, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400025, Maharashtra, India

Date of Appointment :

22.09.2009

DIN No.:

01642332

 

 

Name :

Mr. Vijay Laxminarayan Biyani

Designation :

Director

Address :

305, Jeevan Vihar, Manav Mandir Road, Malbar Hill, Mumbai – 400006, Maharashtra, India

Date of Appointment :

16.03.2007

DIN No.:

00005827

 

 

Name :

Mr. Krishan Kant Rathi

Designation :

Director

Address :

B – 72, Dakshina Park, N. S. Road, 10, JVPD Scheme, Andheri (West), Mumbai – 400049, Maharashtra, India

Date of Appointment :

30.10.2006

DIN No.:

00040094

 

 

Name :

Mr. Roberto Gasso

Designation :

Director

Address :

Devincina 2/c, 3401 0 Sgonico, Trieste, Italy

Date of Appointment :

05.09.2007

DIN No.:

01629060

 

 

Name :

Mr. Kishore Laxminarayan Biyani

Designation :

Director

Address :

406, Jeevan Vihar, Manav Mandir Road, Mumbai – 400006, Maharashtra, India

Date of Appointment :

16.03.2007

DIN No.:

00005740

 

 

Name :

Mr. Sergio Balbinot

Designation :

Director

Address :

Via Degli Aplini 109/1, Opicina I – 34016, Trieste, Italy

Date of Appointment :

05.09.2007

DIN No.:

01629245

 

 

Name :

Dr. Devi Singh

Designation :

Director

Address :

Indian Institute of Management, Prabandh Nagar, Off Sitapur Road, Lucknow – 226103, Uttar Pradesh, India

Date of Appointment :

15.11.2010

DIN No.:

00015681

 

 

Name :

Mr. Rajan Saxena

Designation :

Director

Address :

27/A/31, Takshila Apartments, Mahakali Road, Andheri (East), Mumbai – 400093, Maharashtra, India

Date of Appointment :

15.11.2010

DIN No.:

00784698

 

 

Name :

Mr. Ooi Kim Chai

Designation :

Director

Address :

A-33-4 Menara City One, 3 Jalan Munshi Abdullah, Kuala Lumpur, W Persekutuan KL 501 00

Date of Appointment :

12.08.2008

DIN No.:

01701888

 

 

KEY EXECUTIVES

 

Name :

Mr. Rohit Das

Designation :

Finance Department

 

 

Name :

Mr. Madan Gopal Banarasilal Jalan

Designation :

SVP-Legal and Compliance and Company Secretary

Address :

1801 C Tower, Oberoi Woods, Off Western Express Highway, Jogeshwari [East], Mumbai – 400063, Maharashtra, India

Date of Appointment :

14.01.2008

PAN No.:

AAMPJ8450B

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 29.06.2012

 

Names of Shareholders

 

No. of Shares

 

Pantaloon Retail (India) Limited, India

 

306764994

Pantaloon Retail (India) Limited, India jointly with Mr. Krishan Kant Rathi

 

1

Pantaloon Retail (India) Limited, India jointly with Mr. Chandra Prakash Toshniwal

 

1

Pantaloon Retail (India) Limited, India jointly with Mr. Rajesh Kalyani

 

1

Pantaloon Retail (India) Limited, India jointly with Mr. Deepak Tanna

 

1

Pantaloon Retail (India) Limited, India jointly with Mr. Sanjay Rathi

 

1

Pantaloon Retail (India) Limited, India jointly with Mr. Vimal Dhruve

 

1

Sprint Advisory Services Private Limited, India

 

589470000

Participatie Maatschappij Graafsschap Holland NV, Diemen

 

306765000

 

 

 

Total

 

1203000000

 

 

AS ON 26.11.2012

 

Names of Shareholders

 

No. of Shares

 

Pantaloon Retail (India) Limited, India

 

5100000

Participatie Maatschappij Graafsschap Holland NV, Diemen

 

5100000

Sprint Advisory Services Private Limited, India

 

9800000

 

 

 

Total

 

20000000

 

 

AS ON 07.01.2013

 

Names of Shareholders

 

No. of Shares

 

Pantaloon Retail (India) Limited, India

 

32895000

Sprint Advisory Services Private Limited, India

 

63210000

Participatie Maatschappij Graafsschap Holland NV, Diemen

 

32895000

 

 

 

Total

 

129000000

 

 

AS ON 29.06.2012

 

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]

 

25.50

Bodies corporate

 

74.50

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Providing Insurance and Financial Services.

 

 

Terms :

 

Selling :

Credit

 

 

Purchasing :

Credit

 

 

GENERAL INFORMATION

 

Customers :

Others

 

 

No. of Employees :

100 (Approximately)

 

 

Bankers :

Not Divulged

 

 

 

Banking Relations :

--

 

 

Auditors 1 :

 

Name :

M.M. Nissim and Company

Chartered Accountants

Address :

Barodawala Mansion, B Wing, 3rd Floor, 81, Dr. A B Road, Worli, Mumbai – 400018, Maharashtra, India

Income-tax PAN of auditor or auditor's firm :

AAAFM5103E

 

 

Auditors 2 :

 

Name :

Lovelock and Lewes

Chartered Accountants

Address :

252, Veer Savarkar Marg, Shivaji Park, Mumbai – 400028, Maharashtra, India

Income-tax PAN of auditor or auditor's firm :

AABFL5878L

 

 

Other Related Parties with whom the company had transactions during the year :

Ø  Future Generali India Insurance Company Limited

 

 

Enterprises where control exists [Joint Venture Partner] :

Ø  Pantaloon Retail (India) Limited

Ø  Sprint Advisory Services Private Limited (Formerly Sain Advisory Services Private Limited)

Ø  Participatie Maatschappij Graafsschap Holland NV

 

 

CAPITAL STRUCTURE

 

AS ON 29.06.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2,000,000,000

Equity Shares

Rs. 10/- each

Rs. 20000.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1,352,000,000

Equity Shares

Rs. 10/- each

Rs. 13520.000 Millions

 

 

 

 

 

 

AS ON 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2,000,000,000

Equity Shares

Rs. 10/- each

Rs. 20000.000 Millions

 

 

 

 

 

Issued Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1,452,000,000

Equity Shares

Rs. 10/- each

Rs. 14520.000 Millions

 

 

 

 

 

 

Subscribed Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1,327,100,000

Equity Shares

Rs. 10/- each

Rs. 13271.000 Millions

 

 

 

 

 

 

Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1,203,000,000

Equity Shares

Rs. 10/- each

Rs. 12030.000 Millions

 

 

 

 


 

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

 

 

 

Share Capital

12030.000

10520.000

7020.000

Share Application Money Pending Allotment

1241.000

500.000

625.750

Reserves & Surplus

0.000

0.000

0.000

Credit/(Debit)/ Fair Value Change Account

(4.674)

(5.180)

(0.583)

Sub-Total

13266.326

11014.820

7645.167

 

 

 

 

Policyholders Funds

 

 

 

Credit/(Debit)/ Fair Value Change Account

0.000

0.026

0.000

Policy Liabilities

6130.444

3901.657

1888.353

Insurance Reserves

0.000

0.000

0.000

Provision for Linked Liabilities

8431.227

6460.976

2783.760

Sub-Total

14561.671

10362.659

4672.113

 

 

 

 

Funds for Future Appropriations

 

 

 

Reserve for Lapsed Unit-Linked Policies

0.000

0.000

219.015

Funds for Discontinued Policies

 

 

 

(i) Discontinued on Account of Non-Payment of Premium

77.429

9.338

0.000

(ii) Others

0.000

0.000

0.000

TOTAL

27905.426

21386.817

12536.295

 

 

 

 

APPLICATION OF FUNDS

 

 

 

Investments

 

 

 

Shareholders

2006.302

1208.383

1020.193

Policyholders

5940.333

3795.975

1901.944

Assets held to cover Linked Liabilities

8508.656

6470.314

3002.775

Loans

0.031

0.000

0.000

Fixed Assets

43.780

39.349

75.328

 

 

 

 

CURRENT ASSETS

 

 

 

 

Cash & Bank Balances

535.874

376.296

525.410

 

Advances and Other Assets

1044.146

793.951

643.681

Sub-Total (A) 

1580.020

1170.247

1169.091

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

517.730

400.303

596.241

 

Other Current Liabilities

583.877

521.385

473.186

 

Provisions

34.048

41.184

27.781

Sub-Total (B) 

1135.655

962.872

1097.208

Net Current Assets (A – B)

444.365

207.375

71.883

 

 

 

 

Debit Balance in profit and Loss Account

10961.959

9665.421

6464.172

 

 

 

 

TOTAL

27905.426

21386.817

12536.295

 

 

REVENUE ACCOUNT

 

POLICY HOLDER'S ACCOUNT (TECHNICAL ACCOUNT)

 

 

PARTICULARS

 

31.03.2012

31.03.2011

31.03.2010

 

 

 

 

 

 

Premiums earned - Net

 

 

 

 

(a) Premium

7795.778

7261.565

5415.131

 

(b) (Reinsurance ceded)

(141.088)

(101.278)

(66.650)

 

Total

7654.690

7160.287

5348.481

 

 

 

 

 

 

Income from Investments

 

 

 

 

(a) Interest, Dividend and Rent - Gross

693.095

321.396

132.512

 

(b) Profit on Sale / Redemption of Investments

256.565

416.008

109.950

 

(c) (Loss on Sale / Redemption of Investments)

(429.655)

(54.332)

(13.148)

 

(d) Transfer /Gain on revaluation / change in Fair value*

(313.533)

(185.835)

289.042

 

 

 

 

 

 

Other Income

 

 

 

 

(a) Contribution from the Shareholders' A/c

1398.105

3277.765

3683.707

 

(b) Profit / (Loss) on Sale of Fixed Assets

--

--

16.840

 

(c) Appropriation/ (Expropriation) Adjustment

(12.017)

7.486

3.632

 

(d) Miscellaneous Income

44.322

7.163

0.180

 

 

 

 

 

 

Total (A)

9291.572

10949.938

9571.196

 

 

 

 

 

 

Commission

874.853

957.813

1104.403

 

Operating Expenses related to Insurance Business

3555.693

4110.822

4604.742

 

Provision For Doubtful Debts

--

--

--

 

Bad Debts Written Off

--

--

--

 

Provision for Tax

--

--

--

 

Provision (Other Than Taxation)

 

 

 

 

(a) For Diminution in the value of investment (Net)

--

--

--

 

(b) Others

--

--

--

 

 

 

 

 

 

Total (B)

4430.546

5068.635

5709.145

 

 

 

 

 

 

Benefits Paid (Net)

593.897

400.460

139.793

 

Interim and Terminal Bonuses Paid

--

--

--

 

Change in valuation of liability against life policies

 

 

 

 

(a) Gross * *

4280.432

5496.787

3722.283

 

(b) (Amount ceded in Re-insurance)

(13.303)

(15.944)

(0.005)

 

 

--

--

--

 

Total (C)

4861.026

5881.303

3862.051

 

 

 

 

 

 

SURPLUS/ (DEFICIT ) (D) = (A) - (B) - (C)

--

--

--

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to Shareholders' Account

--

--

--

 

 

Transfer to Other Reserves

--

--

--

 

 

Balance being Funds for Future Appropriations

--

--

--

 

Total (E)

--

--

--

 

* Represents the deemed realised gain as per norms specified by the Authority

 

 

 

 

** Represents Mathematical Reserves after allocation of bonus

 

 

 

 

The break up of total surplus is as under:

 

 

 

 

(a) Interim Bonuses paid

0.165

--

--

 

(b) Allocation of Bonus to Policyholders

113.967

58.347

24.650

 

(c) Surplus shown in the Revenue Account

--

--

--

 

 

 

 

 

 

(d) Total Surplus: [(a)+(b)+(c)]

114.132

58.347

24.650

 

 

PROFIT AND LOSS ACCOUNT

 

SHAREHOLDERS' ACCOUNT (NON-TECHNICAL ACCOUNT)

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

 

 

 

 

 

 

Amount Transferred From Policyholder Account (Technical Account)

 

 

 

 

Income from Investments

 

 

 

 

(a) Interest, Dividend and Rent - Gross

92.831

74.377

76.544

 

(b) Profit on Sale / Redemption of Investments

27.803

20.034

54.415

 

(c) (Loss on Sale / Redemption of Investments)

(6.742)

(2.890)

(1.828)

 

Other Income

0.166

0.018

--

 

 

 

 

 

 

TOTAL (A)

114.058

91.539

129.131

 

 

 

 

 

 

Expenses other than those directly related to the insurance business

 

 

 

 

(a) Employees' Remuneration and Welfare Benefits

4.239

8.224

9.365

 

(b) Rent, Rates and Taxes

1.510

3.500

2.935

 

(c) Other Expenses

6.742

3.299

1.591

 

Bad Debts Written Off

--

--

--

 

Provisions (Other than taxation)

 

 

 

 

(a) For Diminution in the Value of Investment (Net)

--

--

--

 

(b) Provision for Doubtful Debts

--

--

--

 

(c) Others

 

 

 

 

Contribution to Policy holders' Account (Technical Account)

1398.105

3277.765

3683.707

 

Total (B)

1410.596

3292.788

3697.596

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX

(1296.538)

(3201.249)

(3588.467)

 

Provision for Taxation

--

--

--

 

(a) Income tax for earlier year

--

--

0.180

 

PROFIT / (LOSS) AFTER TAX

(1296.538)

(3201.249)

(3566.647)

 

 

 

 

 

 

APPROPRIATIONS

 

 

 

 

 

(a) Balance at the beginning of the Year

(9665.421)

(6464.172)

(2895.525)

 

 

(b) Interim Dividends Paid during the year

--

--

--

 

 

(c) Proposed Final Dividend

--

--

--

 

 

(d) Dividend Distribution on Tax

--

--

--

 

 

(e) Transfer to Reserves / Other Accounts

--

--

--

 

Profit / (Loss) carried to the Balance Sheet

(10961.959)

(9665.421)

(6464.172)

 

 

 

 

 

 

Earnings Per Share (Rs.)

(1.17)

(3.78)

(6.13)

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

SUNDRY CREDITORS DETAILS:

 

Particulars

31.03.2012

 

31.03.2011

 

31.03.2010

 

(Rs. In Millions)

Sundry Creditors

517.730

400.303

596.241

 

 

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

Yes

10]

Designation of contact person

Yes

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

Yes

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

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

No

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 address of the company has been shifted from 12 and 15th Floor, Tower 1, Indiabulls Finance Centre, Senapati Bapat Marg, Elphinstone Road (West), Mumbai – 400013, Maharashtra, India to the present w.e.f.14.05.2012

 

 

BACKGROUND

 

Subject was incorporated on 30th October 2006 as a Company under the Companies Act, 1956 to undertake and carry on the business of life insurance. On 18th April 2007, the name was changed to Future Generali India Life Insurance Company Limited (Formerly Future Generali India Life Assurance Company Limited) (‘the Company’). The Company has obtained a license from the Insurance Regulatory and Development Authority (‘IRDA’) on 4th September 2007.

 

The Company’s life insurance business comprises of individual life and group business including participating, nonparticipating, pension, group gratuity, superannuation, leave encashment and unit linked insurance products.

 

 

OPERATIONS

 

A) Business Review

 

The company has written gross premium of INR Rs. 7795.78 Million against Rs 7261.57 Million in the previous year, registering a growth of 7.36% over the previous year.

 

B) IRDA Registration

 

The Certificate of Registration from the Insurance Regulatory and Development Authority has been renewed for the Financial Year 2012-13.

 

C) Products

 

In order to have a balanced portfolio mix, the Company has filed and received approval for various products catering to both the Corporate and Retail segments. Noteworthy products, which have been approved during the year .The Company has also filed several other products to widen the products bouquet. Further, the Company is working on various innovative products offerings keeping in mind the customer’s requirements and to target niche segments

 

D) Branch office Network:

 

In accordance with the business objective of steady and focused growth, the Company as a prudent business approach continuously monitors the performance of its various Branch/Spoke locations. In an effort towards optimizing the business potential, distribution network and cost involved the Company has realigned the current branch structure through re-categorization of current branches. The concept of cash positive has been cascaded among all the branches and the Company aims to make the entire branch network cash positive in a phased manner. The Company had physical presence at 184 locations as at March 31, 2012 vis-à-vis 185 locations as at March 31, 2011.

 

For the Financial Year 2012-13, the Company shall ensure optimum number of branches to make the Company a more efficient and effective organization..

 

E) Training and Development

 

One of the major changes initiated by IRDA this year affecting the recruitment of advisors was launch of the new syllabus for advisors pre- licensing training. The syllabus now has extensive coverage of Insurance domain and financial markets. Learning and Development has revamped the advisor training content accordingly and launched the same in various vernacular languages to ensure proper training and coding of advisors. As a part of the recruitment strategy for advisors the Company has decided to launch the pre-licensing training regulated by IRDA at in-house accredited centers. So far the Company has received 10 accreditations from IRDA for the purpose. The Company plans to have a in-house accredited center at every branch.

 

F) Solvency Ratio

 

The Company has been continuously monitoring its solvency margins, in keeping with the requirements of IRDA (Assets, Liabilities, and Solvency Margin of Insurers) Regulations, 2000; and has ensured at all times that the solvency ratio of the Company is above the minimum solvency margin prescribed by the IRDA which is 150%.

 

G) Share Capital

 

During the period , the Company had allotted 151,000,000 fully paid up equity shares of Rs.10/- each at par to the promoters, thus the issued equity share capital of the Company as on March 31, 2012 is Rs. 14,520 Million. Accordingly, paid up share capital of the Company as on March 31, 2012 is Rs. 12,030/- Million (excluding the share application money of Rs. 1,241/- Million).

 

H) Human Capital

 

Motivated and committed employees are vital assets for the success of any organization. The Company has been trying to create a favorable work environment, which encourages innovation and meritocracy, making it an interesting place to work in. Employee Satisfaction Survey – “Voice of Employee – AWAAZ” has being undertaken for the 2nd year to gather inputs towards gauging the level of satisfaction among the employees. The inputs have been gathered and the action plans have been drawn out which are being implemented. To create an environment of fun while at work, Mauj - an employee engagement initiative that was launched last year is being run across all branches successfully and is giving good results.

 

 

Manthan, an open platform created at every location to encourage employees to interact with the management by coming together under one roof for open discussions and also to understand the branch/ Company performance, is being run regularly every month at all locations Pan India. Detailed demographic studies of communities are being undertaken at every location for the recruitment of SMs, BMs and the advisors and the same is helping them to increase their reach for business. For objective employee performance appraisal, the Balance Score Card System has been implemented, linking individual goals across functions with the organisational goals in a transparent manner. This has been received very favorably by the employees.

 

As a part of the employee development plan, specific training programs have been identified and initiated. Senior Executives were nominated to External programs at top Management Institutes as also to programs organized by

Generali RO at Hongkong.

 

I) Re Insurance

 

The reinsurance arrangement of Future Generali India Life Insurance Company Limited has been tailored in accordance with the Insurance Regulatory and Development Authority (Life Insurance – Reinsurance) Regulations, 2000 to cater to the business plan, reinsurance need, and risk philosophy

 

 

FUTURE OUTLOOK

 

Despite a challenging macro-economic and regulatory environment, the Company generated a gross written premium of Rs. 7795.78 million against Rs. 7261.57 million in the previous year, registering a growth of 7.36% on a Y-o-Y basis. This performance in relation to peers helped the Company achieve the 17th position in terms of mobilization of New Business Premium (15th in terms of APE) out of the 23 players (March 2012 ranking). The Company was 13th in terms of number of policies.

 

The cost curtailment efforts of the Company over the past financial year have paid dividends. The assets under management increased from Rs. 11.47 billion to Rs. 16.45 billion.

 

For the Financial Year 2012-13, the Company will focus on optimizing value of in force business - both in terms of Persistency and Asset Management/performance. Retention and productivity of sales force, reduction of operating cost while maintaining the volume and quality of business to help reduce surrenders and improve claim ratios will be the areas of focus for Financial Year 2012-13.

 

 

CONTINGENT LIABILITIES:

(Rs. in millions)

Particulars

31.03.2012

31.03.2011

Insurance claims disputed by the Company, to the extent not provided/ reserved

19.707

13.650

 

 

FIXED ASSETS:

 

Ø  Software

Ø  Goodwill

Ø  Land-Freehold

Ø  Buildings

Ø  Leasehold Improvements

Ø  Furniture and Fittings

Ø  Information Technology Equipment

Ø  Office equipment

Ø  Vehicles

 

 

WEBSITE DETAILS:

 

PRESS RELEASE:

 

FUTURE GENERALI LIFE INSURANCE SELLS 22.5% STAKE TO IITL

 

MUMBAI: India's top retailer Future Group has agreed to sell 22.5% stake in its life insurance joint venture with Italy's Generali Group to Industrial Investment Trust Limited in a deal estimated at 2800.000-3000.000 millions.


The deal will value Future Generali India Life Insurance Company at approximately 12500.000 millions.


In a filing to Bombay Stock Exchange, Future Group's listed firm Pantaloon Retail said that it has entered into a share-purchase agreement with non-banking finance company Industrial Investment Trust (IITL) to sell 22.5% holding in the life insurance venture.

 

After the transaction, Future Group's holding in the firm will slip to 51.5%. Generali holds 26%. The Italian firm is expected to raise it to 49% once India raises the foreign investment limit in insurance.


Mumbai-based IITL is in the insurance broking business with 14 branches and 250 employees. It plans to have 25 branches by the end of the year.


Company insiders said promoters will finance part of the deal while funds raised through global depository receipts will take care of the rest. IITL had raised 3250.000 millions through a GDR issue.


The stake sale in Future Generali will help Future Group pare its debt levels that stood at 55000.000 millions in June last. Biyani has managed to bring it down to half trough a series of deals and restructuring initiatives across his businesses. Last year, it sold its stake in Future Capital to private equity firm Warburg Pincus.


Future Generali India Life Insurance reported 42% decline in new business premium income to 1472.800 millions during April-January. It has a share capital of 12600.000 millions.


The industry hit by economic slowdown and regulatory changes has seen a drop of 6% in income from sale of new policies.


The highly capital-intensive nature of life insurance business is forcing promoters to pare stake or consolidate. Most companies missed their break-even target due to economic slowdown and regulatory changes.

 

Recently, Exide bought 50% in ING Life for 5500.000 millions. Last year, Japan's Mitsui Sumitomo bought 26% stake in Max New York Life Insurance Company for about 27310.000 millions and Nippon Life had bought 26% in Reliance Life for 29480.000 millions.

 

 

FUTURE GENERALI ORGANIZES 'MEGA ADVISOR DEVELOPMENT CONFERENCE' IN PATNA

 

04-Feb-2013

 

More than 850 Advisors participate in the Conference


Future Generali India Life Insurance Company Limited, the Insurance joint venture between Future Group of India and Generali of Italy, had organized Mega Advisor Development Conference (MADC) in Patna; a unique initiative by a private life insurer to address its advisors on such a huge scale.


More than 850 Advisors participated in the Mega Advisor Development Conference (MADC) that was presided over by Mr. Gorakhnath N. Agarwal, CEO. Mr. Vineet Agarwal, Head – Agency and Alternate Distribution Channel, Future Generali India Life Insurance Company Limited was also present. The main objective of this conference was to increase awareness among advisors about successful agency career, empower advisors with knowledge to deal with customers in the most constructive way and enhance capability to move towards higher recognition platform like MDRT.


Commenting on the Mega Advisor Development Conference, Mr. Gorakhnath Agarwal said, 'MADC is amongst the biggest initiatives by any private life insurance company. Through this interactive initiative, we aim to provide knowledge to our advisors, which will equip them to deal with customers in a better way. FG’s goal for 2013 is to grow its advisor base by recruiting over 10,000 new advisors from different segments of the society to help them reach out to a wider audience'.


Mr. Vineet Agarwal, reiterated that, 'We have decided to focus on sharpening the skill sets of our existing advisors, while expanding our advisor base across locations. Future Generali shall be organizing such MADCs in other regions as well to cater to its Advisors’ needs. FG aims to identify and initiate insurance partnerships that will help create newer and innovative distribution channels to reach out and explore newer business opportunities, particularly in Tier II, III and IV cities'.


Mr. Gorakhnath Agarwal also felicitated successful advisors of the region. Renowned life insurance agent of the country Mr. Punjab Singh, who has the distinction of being a MDRT Qualifier for 26 years in a row, shared his experience to motivate the participants.


 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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. 54.26

UK Pound

1

Rs. 81.94

Euro

1

Rs. 70.21

 

 

INFORMATION DETAILS

 

Information Gathered by :

PLK

 

 

Report Prepared by :

BVA

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

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

NO

--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

DEFAULTERS 

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

45

 

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

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.