. MIRA INFORM REPORT
|
Report Date : |
24.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
SBI LIFE INSURANCE COMPANY LIMITED |
|
|
|
|
Registered
Office : |
Natraj M.V. Road and Western Express Highway, Junction, Andheri
(East), Mumbai - 400069, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
11.10.2000 |
|
|
|
|
Com. Reg. No.: |
11-129113 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 10000.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U99999MH2000GOI129113 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMS27599F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAFCS2530P |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is engaged in the
business of Life Insurance and Annuity. |
|
|
|
|
No. of Employees
: |
8278 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (75) |
|
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 108000000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a joint venture between State Bank of India and BNP Paribas
Assurance SA. It is an established company having excellent track record. Fundamentals are strong. Promoters of the subject are strong and
reliable. It can be regarded as a promising business partner in medium to
long term. Trade relations are fair. Business is active. Payments are reported to
be regular and as per commitment. The company can be considered good for normal 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.
INDIAN ECONOMIC OVERVIEW
India’s current
account deficit narrowed in the quarter ended September as government measures
to curb imports, especially gold, kicked in. The current account deficit,
the excess of a country’s imports of goods and services over exports, narrowed to
$ 5.2 billion from $ 21 billion in the year ago period, according to
provisional Reserve Bank of India data. Finance Minister P. Chidambaram said
the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and
the latest data suggests the government may achieve the target.
India was ranked 94th
among the world’s most corrupt nations list. Denmark and New Zealand topped as
the cleanest while Somalia emerged as the most corrupt.
India’s services
sector activity witnessed a moderate improvement in November over the previous
month, even while indicating the fifth successive monthly contraction,
according the HSBC survey.
$53 million
estimated losses suffered by India due to phishing attacks during the third
quarter, according to a study by RSA. India ranks fourth in the list of nations
hit by phishing attacks. The US remained at the top of the charts. Phishing is
the process of acquiring information such as user names, passwords and credit
card details by sending e-mails disguised as official mails.
Rs.4080 million
worth of mobile-phone-based transactions by July 2013 compared to Rs.260
million in September, 2012, according to Deloitte report. The number of
transactions has shot up from 94000 to 701000.
India aims to earn
Rs.400000 million from the bandwidth auction set for January. The merger and
acquisition guidelines, cleared by a group of ministers, will be out before the
auction begins so that players can make informed decisions on the auctions.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Financial strength rating : AAA |
|
Rating Explanation |
Have the highest degree of safety and carry
lowest credit risk. |
|
Date |
June 21, 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE
(CONTACT NO.: 91-22-61911000)
LOCATIONS
|
Registered/ Corporate Office 1: |
Natraj M.V. Road and Western Express Highway, Junction, Andheri
(East), Mumbai-400069, Maharashtra, India
|
|
Tel. No.: |
91-22-61911000 |
|
Fax No.: |
91-22-61910012 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
Central Processing Centre, Kapas Bhavan,
Plot 3A, Sector - 10, CBD Belapur, Navi Mumbai – 400614, Mumbai, India |
|
Tel. No.: |
91-22- 66456210 |
|
E-Mail : |
|
|
|
|
|
Corporate Office 2: |
2nd
Floor, Turner Morrison Building, G. N. Vaidya Marg, Fort, Mumbai-400023,
Maharashtra, India |
|
Tel. No.: |
91-22-66392000 |
|
Fax No.: |
91-22-66392099 |
DIRECTORS
AS ON 27.08.2013
|
Name : |
Mr. Pratip Chaudhuri |
|
Designation : |
Chairman |
|
Address : |
|
|
Date of Birth/Age : |
12.09.1953 |
|
Date of Appointment : |
07.04.2011 |
|
DIN No.: |
00915201 |
|
|
|
|
Name : |
Mr. Atanu Sen |
|
Designation : |
Managing Director and Chief Executive Officer |
|
|
|
|
Name : |
Mr. Eric Lombard |
|
Designation : |
Non-Executive Director |
|
Address : |
10 Rue Garanciere, Paris, France 75006 |
|
Date of Birth/Age : |
16.05.1958 |
|
Date of Appointment : |
22.07.2006 |
|
DIN No.: |
01744379 |
|
|
|
|
Name : |
Mr. Aravamudan Krishna Kumar |
|
Designation : |
Non-Executive Director |
|
Address : |
D-1, |
|
Date of Birth/Age : |
18.11.1954 |
|
Date of Appointment : |
04.05.2011 |
|
DIN No.: |
00871792 |
|
|
|
|
Name : |
Mr. Gerard Yues Binet |
|
Designation : |
Non-Executive Director |
|
Address : |
19, Route De La Passerelle Le Vesinet – 781130, |
|
Date of Birth/Age : |
30.04.1953 |
|
Date of Appointment : |
14.06.2001 |
|
DIN No.: |
00066024 |
|
|
|
|
Name : |
Mr. Nilesh Shivji Vikamsey |
|
Designation : |
Independent Director |
|
Address : |
184, 18th Floor, Kalpataru Habitat, A Wing, Dr. S.S. Rao Road,
Mumbai-400012, Maharashtra, India |
|
Date of Birth/Age : |
16.08.1964 |
|
Date of Appointment : |
12.04.2012 |
|
DIN No.: |
00031213 |
|
|
|
|
Name : |
Mr. Ravi Rambabu |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. K. M. Bhattacharya |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Raj Narain Bhardwaj |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Aniket Karandikar |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Ms. Sugandhi Subramanian |
|
Designation : |
Compliance Officer |
|
|
|
|
EXECUTIVE COMMITTEE
MEMBERS |
|
|
Name : |
Mr. Atanu Sen |
|
Designation : |
Managing Director and Chief Executive Officer |
|
|
|
|
Name : |
Mr. Vivien Berbigier |
|
Designation : |
Dy. CEO |
|
|
|
|
Name : |
Mr. Rajiv Gupta |
|
Designation : |
Executive Director - Marketing |
|
|
|
|
Name : |
Mr. Anand Pejawar |
|
Designation : |
Executive Director - Marketing |
|
|
|
|
Name : |
Mr. A. J. Bose |
|
Designation : |
Executive Director - Operations & IT |
|
|
|
|
Name : |
Mr. Sanjeev Pujari |
|
Designation : |
Appointed Actuary |
|
|
|
|
Name : |
Mr. Bhaskar Jutti |
|
Designation : |
Chief Information Officer |
|
|
|
|
Name : |
Mr. Abhijit Gulanikar |
|
Designation : |
Chief Officer Investments |
|
|
|
|
Name : |
Mr. Ranjan Kumar Mishra |
|
Designation : |
Head - HR & Admin |
|
|
|
|
Name : |
Mr. Sangramjit Sarangi |
|
Designation : |
Head of Finance |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2013
|
Names of Shareholders |
|
No. of Shares |
|
Indian - State Bank of India (Holding Company and its Nominees) |
|
740,000,000 |
|
Foreign - BNP Paribas Cardif |
|
260,000,000 |
|
|
|
|
|
Total |
|
1,000,000,000 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the
business of Life Insurance and Annuity. |
|
|
|
|
Brand Name : |
‘SBI’ |
GENERAL INFORMATION
|
No. of Employees : |
8278 (Approximately) |
|
|
|
|
Bankers : |
· State Bank of India BNP
Paribas Bank HDFC
Bank Limited State
Bank of Bikaner and Jaipur State
Bank of Travancore State
Bank Hyderabad State
Bank of Mysore State
Bank of Patiala City
Union Bank Karur
Vysya Bank |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors 1 : |
|
|
Name : |
Ummed Jain and Company Chartered Accountants |
|
Address : |
R-15, Yudhisther Marg, C-Scheme, Jaipur-302005, |
|
Income-tax
PAN of auditor or auditor's firm : |
AAAFU2542B |
|
|
|
|
Statutory Auditors 2 : |
|
|
Name : |
Karnavat and Company Chartered Accountants |
|
|
|
|
Holding Company
: |
State Bank of India |
|
|
|
|
Joint Venture
Partner : |
BNP Paribas Cardif |
|
|
|
|
Holding Company
of Joint Venture Partner : |
BNP Paribas |
|
|
|
|
Fellow
Subsidiaries : |
· State Bank of Bikaner and Jaipur State
Bank of Hyderabad State
Bank of Mysore State
Bank of Patiala State
Bank of Travancore SBI
Capital Markets Limited SBI
DFHI Limited SBI
Funds Management Private Limited SBI
CAPS Ventures Limited SBI
CAP Trustee Company Limited SBI
CAP (UK) Limited SBI
CAP (Singapore) Limited SBI
Cards and Payment Services Private Limited SBI
Payment Services Private Limited SBI
Global Factors Limited SBICAP
Securities Limited SBI
Commercial and International Bank Limited (upto 28.07.2011) SBI
Pension Funds Private Limited SBI
General Insurance Company Limited SBI
Funds Management (International) Private Limited SBI
Mutual Fund Trustee Company Private Limited SBI-SG
Global Securities Services Private Limited State
Bank of India (California) State
Bank of India (Canada) SBI
(Mauritius) Limited Commercial
Bank of India LLC, Moscow PT
Bank SBI Indonesia Nepal
SBI Bank Limited |
|
|
|
|
Significant
Influence or Controlling Enterprise : |
· SBI Life Insurance Company Limited Employee PF Trust SBI
Life Insurance Company Limited Employees
Gratuity Fund |
CAPITAL STRUCTURE
AS ON 31.03.2013
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 |
|
|
|
|
|
|
1,000,000,000 |
Equity Shares |
Rs. 10/- each |
Rs.
10000.000 Millions |
|
|
|
|
|
PATTERN OF SHAREHOLDING
[As certified by the Management]
|
Shareholder |
31.03.2013 |
|
|
|
Number of Shares |
% of Holding |
|
Promoters : |
|
|
|
Indian - State Bank of India (Holding Company and its Nominees) |
740,000,000 |
74 |
|
Foreign - BNP Paribas Cardif |
260,000,000 |
26 |
|
Others |
-- |
-- |
|
|
|
|
|
Total |
1,000,000,000 |
100 |
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 |
|
|
|
|
|
1] Share Capital |
10000.000 |
10000.000 |
10000.000 |
|
|
2] Reserves & Surplus |
16829.881 |
11189.297 |
6212.183 |
|
|
3] Credit/(Debit) Fair Value Change Account |
270.596 |
367.191 |
84.833 |
|
|
SUB TOTAL |
27100.477 |
21556.488 |
16297.016 |
|
|
|
|
|
|
|
|
BORROWING |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
POLICYHOLDERS' FUNDS |
|
|
|
|
|
Credit / Debit Fair Value Change Account |
829.014 |
111.091 |
526.402 |
|
|
Policy Liabilities |
229781.427 |
182815.481 |
133143.912 |
|
|
Insurance Reserves |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Provision For Linked Liabilities |
247858.894 |
255747.474 |
223259.075 |
|
|
Add: Fair Value Change (Linked) |
13919.891 |
7932.946 |
21629.525 |
|
|
Add: Funds For Discontinued Policies |
|
|
|
|
|
(i) Discontinued on account of non-payment of premium |
3450.057 |
706.379 |
0.000 |
|
|
(ii) Others |
31.347 |
7.476 |
0.000 |
|
|
Total Linked
Liabilities |
265260.189 |
264394.275 |
244888.600 |
|
|
Sub-Total |
495870.630 |
447320.847 |
378558.914 |
|
|
Funds for Future Appropriation - Linked |
218.411 |
287.268 |
402.178 |
|
|
Funds for Future Appropriation - Other |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
TOTAL |
523189.518 |
469164.603 |
395258.108 |
|
|
|
|
|
|
|
|
APPLICATION OF
FUNDS |
|
|
|
|
|
|
|
|
|
|
|
INVESTMENTS |
|
|
|
|
|
Shareholders' |
18115.872 |
13608.077 |
9401.282 |
|
|
Policyholders' |
216878.561 |
169486.611 |
141561.042 |
|
|
|
|
|
|
|
|
Assets Held to Cover Linked Liabilities |
265478.600 |
264681.542 |
245290.776 |
|
|
Loans |
1.729 |
-- |
-- |
|
|
Fixed assets |
2753.671 |
2652.156 |
2831.553 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Cash & Bank Balances |
21531.856
|
23034.030
|
8032.110
|
|
|
Advances and Other Assets |
12695.051
|
8941.581
|
5325.440
|
|
Total
Current Assets |
34226.907
|
31975.611
|
13357.550
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2918.450
|
2572.431
|
2478.841
|
|
|
Other Current Liabilities |
10622.646
|
9963.944
|
14586.317
|
|
|
Provisions |
724.726
|
703.019
|
118.937
|
|
Total
Current Liabilities |
14265.822
|
13239.394
|
17184.095
|
|
|
Net Current Assets |
19961.085
|
18736.217
|
(3826.545)
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
523189.518 |
469164.603 |
395258.108 |
|
REVENUE ACCOUNT
FOR THE YEAR ENDED MARCH 31, 2013
POLICYHOLDER'S
ACCOUNT (TECHNICAL ACCOUNT)
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
|
|
|
|
Premiums earned
- Net |
|
|
|
|
|
|
(a) Premium |
104500.329 |
131337.384 |
129452.866 |
|
|
|
(b) (Reinsurance ceded) |
(679.191) |
(528.974) |
(361.204) |
|
|
|
Total |
103821.138 |
130808.410 |
129091.662 |
|
|
|
|
|
|
|
|
|
|
Income from
Investments |
|
|
|
|
|
|
(a) Interest, Dividends & Rent - Net of Amortization (Gross for year ended March 31, 2013 Rs.23377.897 Millions, previous
year ended March 31, 2012 Rs. 18131.664 Millions) |
26464.519 |
21214.478 |
13284.460 |
|
|
|
(b) Profit on sale / redemption of investments |
23580.644 |
12973.730 |
24462.330 |
|
|
|
(c) (Loss on sale / redemption of investments) |
(12292.612) |
(14385.122) |
(6395.325) |
|
|
|
(d) Transfer /Gain on revaluation / change in Fair value* |
5986.945 |
(13696.579) |
(1302.633) |
|
|
|
(e) Appropriation/ expropriation adjustment account |
0.000 |
(275.264) |
(153.585) |
|
|
|
Other Income |
|
|
|
|
|
|
(a) Contribution from the Shareholders' A/c |
2637.505 |
1419.856 |
354.181 |
|
|
|
(b) Others |
0.000 |
0.000 |
0.000 |
|
|
|
- Miscellaneous Income |
241.939 |
96.892 |
270.598 |
|
|
|
|
46618.940 |
7347.991 |
30520.028 |
|
|
|
|
|
|
|
|
|
|
Total (A) |
150440.078 |
138156.401 |
159611.690 |
|
|
|
|
|
|
|
|
|
|
Commission |
5114.134 |
5183.637 |
6710.540 |
|
|
|
|
|
|
|
|
|
|
Operating Expenses related to Insurance Business |
11510.498 |
10239.285 |
9166.301 |
|
|
|
Provision For Doubtful Debts |
10.957 |
1.007 |
0.405 |
|
|
|
Bad Debts Written Off |
0.652 |
1.408 |
4.302 |
|
|
|
Provision for
Tax |
|
|
|
|
|
|
(a) Income Tax |
596.587 |
483.200 |
240.618 |
|
|
|
|
|
|
|
|
|
|
Provisions
(other than taxation) |
|
|
|
|
|
|
(a) For diminution in the value of investments (net) |
143.301 |
(47.780) |
0.012 |
|
|
|
|
|
|
|
|
|
|
Total (B) |
17376.129 |
15860.757 |
16122.178 |
|
|
|
|
|
|
|
|
|
|
Benefits Paid (Net) |
77910.132 |
47261.103 |
29257.720 |
|
|
|
Interim and Terminal Bonuses Paid |
6.861 |
2.841 |
1.182 |
|
|
|
Change in
valuation of liability against life policies |
|
|
|
|
|
|
(a) Gross * * |
47911.850 |
69273.368 |
110853.860 |
|
|
|
(b) (Amount ceded in Re-insurance) |
(79.990) |
(96.125) |
(134.424) |
|
|
|
|
|
|
|
|
|
|
Total (C) |
125748.853 |
116441.188 |
139978.338 |
|
|
|
|
|
|
|
|
|
|
SURPLUS/
(DEFICIT ) (D) = (A) - (B) - (C) |
7315.096 |
5854.456 |
3511.174 |
|
|
|
|
|
|
|
|
|
|
Balance of
previous year |
287.269 |
402.177 |
246.204 |
|
|
|
Balance available for appropriation |
7602.365 |
6256.633 |
3757.378 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to Shareholders' Account |
7383.954 |
5969.365 |
3355.200 |
|
|
|
Balance being Funds for Future Appropriations |
218.411 |
287.269 |
402.177 |
|
|
Total (D) |
7315.096 |
5854.456 |
3511.174 |
|
|
|
|
|
|
|
|
|
|
Details of Total
Surplus |
|
|
|
|
|
|
a) Interim & Terminal Bonuses Paid |
6.861 |
2.841 |
1.182 |
|
|
|
b) Allocation of bonus to policyholders |
2185.335 |
1453.973 |
893.708 |
|
|
|
c) Surplus shown in the revenue account |
7315.096 |
5854.456 |
3511.174 |
|
|
|
Total Surplus: [(a)
+ (b) + (c )] |
9507.292 |
7311.270 |
4406.064 |
|
* Represents the deemed realised gain as per norms specified by the Authority
** Represents Mathematical Reserves after allocation of bonus
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2013
SHAREHOLDERS'
ACCOUNT (NON-TECHNICAL ACCOUNT)
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
|
|
Amount Transferred
From Policyholder Account (Technical Account) |
7383.954 |
5969.365 |
3355.200 |
|
|
Income from Investments |
|
|
|
|
|
(a) Interest, Dividend & Rent - Net of Amortization (Gross for year ended March 31, 2013 Rs.1333.087 Millions, previous year
ended March 31, 2012 Rs. 868.760 Millions) |
1367.706 |
891.188 |
546.912 |
|
|
(b) Profit on sale / redemption of investments |
176.124 |
83.321 |
168.261 |
|
|
(c) (Loss on sale / redemption of investments) |
(38.635) |
(14.546) |
(25.129) |
|
|
Other Income |
65.510 |
64.859 |
40.765 |
|
|
|
|
|
|
|
|
TOTAL (A) |
8954.659 |
6994.187 |
4086.009 |
|
|
|
|
|
|
|
|
Expenses other
than those directly related to the insurance |
|
|
|
|
|
(a) Rates and Taxes |
0.000 |
0.000 |
0.000 |
|
|
(b) Directors' Sitting Fees |
0.555 |
0.140 |
0.205 |
|
|
(c) Board Meeting Related Expenses |
2.696 |
1.692 |
0.829 |
|
|
(d) Depreciation |
14.110 |
13.551 |
3.444 |
|
|
(e) Other Expenses |
57.120 |
7.924 |
25.704 |
|
|
(f) Stamp duty on issue of shares |
0.000 |
0.000 |
0.000 |
|
|
Bad debts written off |
0.000 |
0.000 |
0.000 |
|
|
Provisions
(Other than taxation) |
|
|
|
|
|
(a) Contribution to the Policyholders' Fund |
2637.505 |
1419.856 |
354.181 |
|
|
(b) For diminution in the value of investment (net) |
20.964 |
(7.190) |
(2.877) |
|
|
|
|
|
|
|
|
Total (B) |
2732.950 |
1435.973 |
381.487 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX |
6221.709 |
5558.214 |
3704.522 |
|
|
Provision for Taxation |
|
|
|
|
|
(a) Income Tax |
0.000 |
0.000 |
41.082 |
|
|
PROFIT / (LOSS)
AFTER TAX |
6221.709 |
5558.214 |
3663.440 |
|
|
|
|
|
|
|
|
(a) Balance at the beginning of the period/year |
11189.297 |
6212.183 |
2548.743 |
|
|
(b) Interim dividend during the period/year |
500.000 |
0.000 |
0.000 |
|
|
(c) Proposed final dividend |
0.000 |
500.000 |
0.000 |
|
|
(d) Dividend distribution tax |
81.125 |
81.100 |
0.000 |
|
|
(e) Transfer to reserves / other accounts |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Profit / (Loss) carried to the Balance Sheet |
16829.881 |
11189.297 |
6212.183 |
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
6.22 |
5.56 |
3.66 |
LOCAL AGENCY FURTHER INFORMATION
|
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 |
Yes |
|
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 |
Yes |
LITIGATION DETAILS
|
HIGH COURT OF
BOMBAY |
|
CASE DETAILS BENCH: BOMBAY |
|
Presentation
Date: 06.12.2013 |
|
Lodging No: ITXAL/2063/2013 Filing
Date: 06.12.2013 Reg. No.: ITXA/62/2014 Reg. Date: 17.01.2014 |
|
Petitioner: COMMISSIONER OF INCOME- MUMBAI Respondent: SBI LIFE
INSURANCE COMPANY LIMITED Petn. Adv : P.C. CHHOTARAY (0) District: MUMBAI |
|
Bench: DIVISION Status: Pre-Admission
Category: TAX
APPEALS Next Date: 27.01.2014
Stage: Coram: ACCORDING TO SITTING LIST ACCORDING TO SITTING LIST |
|
Act: Income Tax Act, 1961 UNDER SECTION: 260 A |
CURRENT MATURITIES
OF LONG TERM DEBT: NOT AVAILABLE
INDEX OF CHARGES: NO
CHARGES EXIST FOR COMPANY
CHANGE OF ADDRESS:
The Registered office of the company has been shifted from State Bank Bhavan, Madam Cama Road, Nariman Point, Mumbai – 400021, Maharashtra, India to the present address w.e.f. 25.04.2011.
NATURE OF OPERATIONS
The Company is registered with
the Insurance Regulatory and Development Authority ('IRDA') and is carrying on the
business of life insurance and annuity. The Company's life insurance business
comprises of individual life and group business, including participating,
non-participating, pension, group gratuity, group leave encashment, group
superannuation, group immediate annuity, unit-linked insurance products and
micro insurance. Some of these policies have riders such as accident and
disability benefit, level term and critical illness.
BUSINESS REVIEW
AND OUTLOOK
FINANCIAL
PERFORMANCE
The Company has completed another successful year of operations. The
Company has earned a Gross Written Premium (GWP) of Rs.104500.000 Millions on
the back of consistent growth in Individual business during the financial year
(FY) 2012-13. The Company continued meeting its stakeholders’ expectations
achieving profitable growth year on year.
The Company has registered a strong and consistent performance during FY
2012-13. The key financial parameters of the Company are as follows:
· Maintained its No. 1 position amongst private life insurers on total New Business Premium (NBP) basis, achieving highest NBP of Rs.51830.000 Millions with a market share of 16.9% amongst private players;
Registered
a strong growth of 19.4% in NBP (Regular Business) standing at Rs.26180.000
Millions in FY 2013 as against Rs.21930.000 Millions of FY 2012;
Demonstrated
a robust growth of 13.3% in its Individual New Business APE Portfolio;
Collected
a Renewal Premium of Rs.52670.000 Millions during the FY 2013 from various
distribution channels;
Continued
to show a steady growth both in business and earnings. The Net Profit of the
Company grew by 12% and stands at Rs.6220.000 Millions during the year ended
March 31, 2013 as against Rs.5560.000 Millions of the preceding year;
Continued
to maintain one of the lowest Operating Expense (excluding service tax on ULIP
charges) to Gross Written Premium ratio (the OPEX Ratio) at 9.7%, amongst
private sector life insurance companies;
Based
on the Company's overwhelming performance during the FY 2013 in this subdued
growth phase of the industry, the Company has registered a strong growth of 11%
in its Assets Under Management (AUM) to Rs.519120.000 Millions as on March 31,
2013 as against Rs.465760.000 Millions as on March 31, 2012, while the
benchmark index (Nifty 50) has posted a return of 7.3% during the year;
The
Solvency ratio of the Company stands at 2.15 as on March 31, 2013 as against
the Regulatory requirement of 1.50, indicating the strong and stable financial
health of the Company;
Based
on the robust financial performance of the Company year on year, there has been
no external capital infusion during the last five financial years;
In
view of Company's performance, profitability, cash flows and financial
position, an interim dividend was declared during the FY 2012-13 at 5% of
equity share capital amounting to Rs.581.100 Millions (including dividend
distribution tax);
·
Distribution:
The Company continued to focus on its planned expansion through quality
recruitment and opening up of new branch offices. As at March 31, 2013, the
Company has 758 offices, 94,138 Insurance Advisors (IAs) and 25,160 Certified
Insurance Facilitators (CIFs) across the country as against corresponding
figures of 714 offices, 86,989 IAs and 24,782 CIFs respectively as on March 31,
2012.
The total new business premium of Rs.51830.000 Millions comprises of:
·
Rs.15740.000 Millions from ‘Retail Agency’ and
‘Institutional Alliances’ channels,
·
Rs.14700.000 Millions from ‘Bancassurance’ channel
and
·
Rs.21390.000 Millions from ‘Corporate Solutions’ channel.
INDUSTRY AND
COMPANY OUTLOOK
The Company and the industry as a whole will witness a moderate and
competitive growth in the financial year 2013-14 considering the recently
amended product guidelines by the Regulator and sluggish economic growth.
However, year on year, SBI Life has maintained a significant lead over
its closest competitors in terms of New Business Premium collection.
In FY 2013-14, one of the primary goals of the company is to further
strengthen their highly successful Bancassurance model such that the channel
attains a visibly dominant position in the new business portfolio. This is to
be achieved by leveraging State Bank of India’s and its Associate Banks’
widespread branch network and equipping select branches with commensurate
resources including manpower support which would result in higher cross sell
penetration.
Customer centricity remains the mainstay. Various initiatives continue
to gather steam across the board, ranging from customer education initiatives,
customer-connect campaigns, revival campaigns to ISO certifications, product
innovations etc.
AWARDS and
RECOGNITIONS
Continuing its journey to achieve holistic excellence, SBI Life won
several awards and recognitions during the financial year 2012- 13,
· Adjudged as ‘World Class’ in Asia Pacific Quality Organization (APQO)’s ‘The Global Performance Excellence Award, 2013’ under Large Service Organizations Category;
Won
the coveted Indian Merchant Chambers (IMC) ‘Ramkrishna Bajaj National Quality
Award, 2012’ in Service Category;
Ranked
as ‘Most Trusted Private Life Insurance Brand, 2012’, for the second
consecutive year, by ‘The Economic Times, Brand Equity and Nielsen, Most
Trusted Brands 2012’;
Awarded
with ‘The Indian Insurance Award 2012 - Claims Service of the Year Award and
Under-Served Market Penetration Award’;
Awarded
with the ‘Dun and Bradstreet - PSU Award 2012’ for the ‘Top Indian Public
Sector Enterprise’ in the Insurance Sector;
Won
the ‘Best Employer’ Brand Award at IPE BFSI Awards;
Recognized
amongst India’s Top-50 ‘Best Companies To Work For, 2013’ in a study conducted
by Great Place to Work Institute;
Awarded
with the ‘Best Presented Accounts - Certificate of Merit’ by The South Asian
Federation of Accountants (SAFA), in the Insurance Category for the Annual
Report of FY 2010-11;
CRISIL
has reaffirmed its ‘AAA / Stable’ rating to SBI Life, indicating highest
financial strength to meet policyholder obligations;
ICRA
has reaffirmed its ‘iAAA’ rating, indicating highest claims paying ability and
a fundamentally strong position;
Received
‘ISO 10002: 2004 Certification’ for Complaints Management System (CMS).
They owe these awards to the constant support and trust reposed by their
Policyholders and Stakeholders and the hard work and dedication of their work
force.
MANAGEMENT
DISCUSSION AND ANALYSIS
MACRO-ECONOMIC
ENVIRONMENT
The Indian economy has responded strongly to fiscal and monetary
stimulus and achieved a growth rate of 8.6% and 9.3% respectively in 2009-10
and 2010-11 despite the slowdown induced by the global financial crisis in
2008-09. However, with the economy exhibiting inflationary tendencies, the
Reserve Bank of India (RBI) started raising policy rates in March 2010. High
rates as well as policy constraints adversely impacted investment, and in the
subsequent two years viz. 2011-12 and 2012-13, the growth rate slowed to 6.2%
and 5.0 % respectively. Nevertheless, despite this slowdown, the Compound
Annual Growth Rate (CAGR) for Gross Domestic Product (GDP) at factor cost, over
the decade ending 2012-13 is 7.9%.
GROWTH OUTLOOK:
The Government has promised to take several steps to address the
macro-economic weakness. These include, the return to path of fiscal
consolidation, bringing in a clear and stable tax regime, encourage saving and
investment, including foreign investments and work towards generating
supply-side responses to lower inflation. Key decisions to put fiscal
consolidation back on track such as hikes in administered fuel prices, slashing
of other subsidies and introduction of Goods and Service Tax (GST) have been
delayed and there is urgency to quickly move on the indicated lines to avert
further deepening of problems. As these steps materialise, growth could
gradually start improving and trend growth can be restored.
The Reserve Bank of India (RBI), on March, 2013 reduced the repo rate by
25 basis points to 7.5%. Lower interest rates however, can effectively oil the
economy only when other major causes for the squeaking wheel are fixed. With
CPI Inflation remaining high and WPI inflation still above the RBI’s inflation
threshold of 5%, it is expected that the RBI will reduce policy rates by at
most 25-50 basis points during 2013-14. Moreover, banks are unlikely to lower
lending rates immediately as deposit growth is weak and their cost of
borrowings (reflected in deposit rates) remains high.
LIFE INSURANCE
INDUSTRY OVERVIEW
INDUSTRY OVERVIEW
The Indian Life Insurance industry has expanded significantly since
liberalization in 2000. Liberalization has led to the entry of the largest
insurance companies in the world, who have taken a strategic view on India
being one of the top priority emerging markets. The industry has witnessed
phases of rapid growth along with spans of growth moderation, intensifying competition
amongst competing companies, and significant expansion of the customer base.
There have also been number of product innovations and operational innovations
necessitated by increased competition among the players. All this can be
attributed to the reforms leading to the relaxation of the policy regulations
that ignited the growth of the Indian insurance industry. The level of
awareness and consciousness has risen among people for the need to insure them
and elevation in the levels of literacy, population and urbanisation has added
fuel to the fire leading to ever growing demand of the insurance products.
During this period, there has been increase in penetration, increased
coverage of lives, substantive growth through multiple channels (agency, banc-assurance,
broking, direct, corporate agency amongst others) and increased competitiveness
of the market (from four private players in FY01 to 23 private players in
FY13).
LIFE INSURANCE
PENETRATION AND DENSITY:
Insurance penetration and insurance density are the two important
indicators, which provide the level of development of insurance sector in an
economy. The insurance penetration in India, which surged consistently till
2009-10, has slipped since 2010-11 on account of slowdown in life insurance
premium as compared to the growth rate of the Indian economy. Life insurance
penetration had consistently gone up from 2.15 per cent in 2001 to 4.60 per
cent in 2009, before slipping to 4.40 per cent in 2010 and further slipping to
3.40 per cent in 2011. India has reported consistent increase in insurance
density every year since the sector was opened up for private competition in
the year 2000. However, for the first time in 2011, there was a fall in
insurance density. The life insurance density in India has gone up from USD 9.1
in 2001 to USD 49.0 in 2011 though it reached the peak of USD 55.7 in 2010.
The overall life insurance industry growth has kept pace with the GDP
growth in the country. The country’s economic growth had consistently gone up
from 4.3% in 2001 to 8.6% in 2010, before slipping to 6.2% to 2012 and further
slipping to below 5% in FY 2012-13.
SHARE OF LIFE
INSURANCE IN FINANCIAL SAVING OF HOUSEHOLD SECTOR:
The share of life insurance in financial savings of household sector has
increased over last several years from 15% in FY 2006-07 to 23% in FY 2011-12.
The insurance industry, by offering a comprehensive range of long-term savings
and protection products, can channelize a larger share of household savings and
enhance the levels of financial protection in the Indian economy.
CURRENT INDUSTRY
SCENARIO (FY 2013):
For the last couple of years the life insurance went through a
transition phase that has changed the dynamics and approach of the insurance
players. It is facing a number of challenges involving the macro-economic
environment, consumer sentiment and rapid regulatory changes. As a consequence
of these changes and the market conditions, the industry players re-configured
their business models, product mix and distribution structures. The share of
Unit Linked Insurance Plans (ULIPs) declined in the overall product mix. Also,
with regards to the distribution channel mix, share from Bancassurance channel
gained prominence due to its cost effectiveness. During the year, the industry
strengthened its focus towards enhancing professional delivery of products and
services to customers.
In financial year 2012-13, the industry has seen a de-growth of 6.3% in
new business premium income. Insurers focusing on customers to remain invested for
longer term resulted in improved persistency ratio for the industry. With low
insurance penetration as compared to the large Indian population base, there is
tremendous scope for the life insurers to capitalize on.
· New business premium fallen from Rs.1142330.000 Millions for the previous year to Rs.1070110.000 Millions for the current financial year 2012-13, showing a de-growth of 6.3%.
Private
sector has also shown a de-growth of 6%.
Private
sector claims 28.8% of total new business premium market share in financial
year 2012-13.
Regular
Premium (non-single) of private players has declined marginally by 3.5%,
whereas the same is declined substantially by 24.7% in case of LIC.
Single
premium of private sector has declined by 11.6%, whereas the single premium of
LIC has grown by 11.0%.
Group
regular premium business fell by 60% in FY 2012-13 to Rs.66110.000 Millions
from Rs.165060.000 Millions in FY 2011-12. However, there is increase in Group
Single premium by 15.5% in FY 2012-13 to Rs.383560.000 Millions from
Rs.332240.000 Millions in FY 2011-12.
As at March 31, 2013, on the basis of total new business premium, the
LIC is the market leader with market share of 71.25% whereas the private sector
claims 28.75% of total new business premium market share in FY 2012-13.
During the FY 2012-13, SBI Life has maintained its No. 1 position
amongst private players on New Business Premium basis, achieving highest NBP of
Rs.51830.000 Millions with a market share of 4.84% of total new business
premium (including LIC) and 16.85% of total new business of private sector.
INDUSTRY TREND
ANALYSIS
(A) NEW BUSINESS
PREMIUM
Since the opening of the sector in 2001, Indian life insurance industry
has gone through two cycles — the first one being characterised by a period of
high growth (CAGR of approx. 31% in new business premium between 2001-10) and a
flat period (CAGR of around -1% in new business premium between 2010-13).
The period FY 2005 to FY 2010 was primarily dominated by linked life
insurance business especially in case of the private sector insurance players.
Performance of the Linked plans is directly linked to primary capital markets.
The period FY 2006 to FY 2008 witnessed boom in the country’s capital market
which benefited the insurance companies in turn. The private sector was able to
gained 39% market share in new business premium by FY 2009. Post FY 2009
changes in the regulatory environment and market conditions had path-breaking
impact on the development of the industry. Between FY 2009 and FY 2013, the
private insurance sector had also experienced 10% decline in market share.
(B) PRODUCT MIX
IRDA during July 2010 (and with modification in September 2010) came up
with Unit Linked Insurance Plan (ULIP) guidelines capping upfront charges,
returns and the commission pay-outs impacting the basis on which ULIPs were
developed. Immediately following these guidelines, during FY 2011 to FY 2013,
the industry witnessed a shift in the product mix from linked products to
non-linked or commonly known traditional products.
The traditional products contributed less than 60% of new business for
the private sector as compared to industry as a whole where the share of
traditional products is about 90% during FY 2013.
LIC PRODUCT MIX
In case of LIC, the linked products contributed 62% of total new
business, whereas traditional products had contributed around 38% in FY 2008
(pre ULIP guidelines). After the ULIP guidelines came in force, there is a
significant shift from linked to nonlinked products wherein the share of linked
products has reduced to 5% in FY 2012 with de-growth in new business premium.
PRIVATE SECTOR
PRODUCT MIX
Similarly there is a clear shift noticed in product mix for the private sector
with the contribution of ULIPs declining and that of traditional products
growing. Linked product had contributed 90% of total new business in FY 2008
which has then reduced to 41% in FY 2012.
(C) CHANNEL MIX
The main distribution channels in life insurance are the traditional
individual agency channel, corporate agency (banks and others), broking channel
and direct selling (which includes online selling). From an old industry
perspective, it was an agency dominated business. This trend was primarily as a
result of LIC’s agency dominated business model. Private sector insurers have a
more balanced channel distribution between agency, bancassurance, corporate
agents, brokers and direct sales.
LIC CHANNEL MIX
LIC continues to remain driven by individual agents. Individual agents
accounted for approximately 97% of the individual new business premium
collections of the LIC while direct business contributed 95% of its group new
business premium collections in FY 2011-12. There is no significant change in
channel mix of LIC.
PRIVATE SECTOR
CHANNEL MIX
In FY 2011-12, with 44% contribution, individual agent was the leading
distribution channel for private life insurers for individual products,
followed closely by bancassurance contributing 39%.
There was shift in distribution mix for the private players with higher
contribution from Bancassurance channel to new business sales. The contribution
from bancassurance has increased by 6% from 33% in FY 2010-11 to 39% in FY
2011-12, whereas the contribution of individual agent has decreased by 3% from
47% in FY 2010-11 to 44% in FY 2011-12. The rise in bancassurance channel is
primarily due to (a) low cost model, (b) stringent regulatory guidelines for
other channels, (c) wide-spread network, (d) potential customer footfall in
bank branches and (e) easy cross-selling.
For group new business premium, direct business was the largest
contributor in FY 2011-12, though the contribution had decreased significantly
by 25% from 82% in FY 2010-11 to 57% in FY 2011-12. The decrease is justified
by increase in contribution by 18% in bancassurance channel from 12% in FY
2010-11 to 30% in FY 2011-12.
UNION BUDGET 2013
The Union Budget 2013-14 had announced following major proposals for
insurance sector:
· A multi-pronged approach to increase the penetration of insurance, both life and general, in the country.
Number
of proposals finalised, in consultation with IRDA such as:
·
Empowering insurance companies to open branches in Tier-II
cities and below without prior approval of IRDA;
·
KYC of banks to be sufficient to acquire insurance
policies;
·
Banks to be permitted to act as insurance brokers;
·
Banking correspondent allowed to sell
micro-insurance products and achieving the goal of having an office of LIC and
an office of at least one public sector general insurance company in towns with
population of 10,000 or more.
With regards to Income Tax amendments, the following proposal has been
announced:
· Permissible premium rate increased from 10% to 15% of the sum assured by relaxing eligibility conditions of life insurance policies for persons suffering from disability and certain ailments.
Section
10 (10D) of Income Tax Act, has amended to provide that a keyman insurance
policy which has been assigned to any person during its term, with or without
consideration, shall continue to be treated as a keyman insurance policy.
SBI LIFE – AN
OVERVIEW
1. GROSS WRITTEN
PREMIUM
The Company has earned a Gross Written Premium (GWP) of Rs.104500.000
Millions on the back of consistent growth in Individual business during the
financial year (FY) 2012-13. During the financial year 2012-13, the Company has
added nearly 8.89 lakhs new policies to its portfolio. Following chart depict
Company’s continuous growth in GWP over last years.
The Company has achieved continuous growth in the gross written premium
over the years with CAGR of approx 24% in GWP between FY 2007 - 2013. The
growth is primarily driven by strong and consistent new business collection.
The Company has improved the renewal premium collection over years by focusing
on various initiatives to improve customer retention. The share of renewal
premium has increased over years to 50% in FY 2013 from 12% in FY 2007 (CAGR of
approx 56%).
2. NEW BUSINESS
PREMIUM AND MARKET SHARE
The Company has maintained its No. 1 position amongst private life
insurers on total New Business Premium (NBP) basis, achieving highest NBP of
Rs.51830.000 Millions in FY 2012-13. The Company is maintaining a continuous
growth in the new business market share in private market over years.
During the year, the Company concentrated on individual regular premium
products as against single premium and group products as part of its long term
strategy. As a result, the Company has witnessed a sound growth of 19.4% in its
Regular business NBP and a growth of 13.3% in its individual new business APE
(Annualized Premium Equivalent).
SBI Life continues to consolidate and steadily increase the market share
amongst private life insurers.
The Company has increased its market share, amongst private life
insurers, from 13.18% in the FY 2006-07 to 19.95% in the year 2011-2012 before
slipping to 16.85% in FY 2012-13. The overall market share of the Company in terms
of NBP stood at 3.40% in 2006-07 and reached to a high of 5.71% in FY 2011- 12,
before slipping to 4.84% in FY 2012-13.
In spite of the continuous slowdown of the industry, during the current
year, the Company has garnered a market share of 16.9% amongst private players
and 4.8% of total market share.
3. CONSERVATION
RATIO
Despite several external challenges and slowdown of economy, the Company
has improved renewal premium collection and retention of clients over years.
The Company’s conservation ratio stands at 68.07% as at March 31, 2013, is
testimony to SBI Life’s commitment towards its customers.
4. PRODUCT MIX
Post regulatory changes on Unit Linked Insurance Plan (ULIP) guidelines
effective September 2010, the Company has witnessed a shift in the product mix
from linked products to non-linked or commonly known traditional products.
The contribution of the linked product was 59% and non-linked product
was 41% in FY 2006-07. As a consequence of regulatory changes there was gradual
shift towards non linked products.
During the FY 2012-13, the contribution from linked products reduced to
47% whereas there is increase in share of non-linked products to 53%.
The Company shall continue to focus balanced mix strategy of linked and
non-linked to provide the right solution to the customers and keeping in mind
interests of all stakeholders i.e. customers, distributors and shareholders.
5. CHANNEL MIX
SBI Life has a unique multi-distribution model encompassing vibrant
bancassurance, retail agency, institutional alliances and corporate solutions
distributing insurance products. All key distribution channels of the Company
have demonstrated profitable business growth over the years. In this current
scenario, where leading players are thriving for an ideal balanced channel mix,
the Company finds itself positioned appropriately.
Agency: The Individual
agents provided a significant thrust to the overall business, contributing 44%
in FY 2006-07 and contributing 35% of new business premium in 2012-13 which reflects
the consistency over the years due to superior productivity levels of insurance
advisors.
The Company focused its efforts towards recruitment and development of
new retail agents. In depth product knowledge and sales structure forms the
backbone of their front line sale force. Sales Quality Scores (SQS) for
individuals arrived on monthly basis and reviewed quarterly in order to monitor
the consistency of the sales force and their adherence to compliance and
operational standards. Going forward, they are looking towards enhancing this
consistent and competent sales force in order to improve penetration further.
Corporate Agent –
Banks (Bancassurance): Bancassurance contributed 37% in 2006-07 and contributed
40% of new business premium in 2012-13. The trend reflects that the Company has
extensively leverages the State Bank Group relationship as a platform for
cross-selling insurance products along with its numerous banking product
packages such as housing loans and personal loans.
Direct Business: With the changing
customer needs, the Company has introduced online products for its tech savvy
young generation potential client base. The direct business also includes business
generated by Company’s Corporate Solution and Cross Selling departments dealing
directly with corporate and individuals as per their needs. The Company has
garnered a business of 23% as Direct Business in FY 2012-13 which grew from 19%
of FY 2006-07.
The Company continued to focus on its planned expansion through quality
recruitment and opening up of new branch offices. As at March 31, 2013, the
Company has 758 offices, 94,138 Insurance Advisors (IAs) and 25,160 Certified
Insurance Facilitators (CIFs) across the country as against corresponding
figures of 714 offices, 86,989 IAs and 24,782 CIFs respectively as on March 31,
2012.
6. OPERATING
EXPENSES
The Company continues to focus on cost containment activities to reduced
operating expenses. The Company’s ‘Operating Expense to GWP Ratio’ is one of
the lowest amongst private life insurance players on a consistent basis. The
Company however saw increase in the expense ratio on account of a lower premium
and high inflation. Going forward, the Company will continue to focus on
disciplined expense management by cost containment activities, higher
productivity and efficiency of distribution channel, employees and other
overheads.
PRODUCT STRATEGY
AND PERFORMANCE
SBI Life strives hard to provide systematic structured solutions to meet
customer needs in the life, health, pension, on-line and microinsurance
segment. In depth understanding of customer needs has helped in achieving high
level of satisfaction by offering wide range of products catering to different
needs of customers. The products are customer centric, simple to understand and
have competitive features.
Linked products used to constitute a large share before the regulatory
changes to linked product structures which came into effect from September 01,
2010. As a result, the contribution of linked business has come down to 47% in
financial year 2012-13 as against 70% of FY 2010-2011. The Company has balanced
its product mix with increased contribution of traditional products from 30% of
FY 2010-11 to 53% in FY 2012-13.
Pursuing to achieve its goal towards long term viability, the Company
has adopted a strategy to concentrate on individual regular premium products as
against single premium products. As a result, the Company has witnessed a sound
growth of 19% in its Regular business NBP and a growth of 13% in its individual
new business measured on Annualized Premium Equivalent (APE) basis.
The Company shall continue to pursue its approach on maintaining a
balanced product mix strategy keeping in mind interest of all stakeholders i.e.
customers, distributors and shareholders.
To maintain its competitive edge in the market, the Company had launched
six new individual products in the financial year 2012-13. Details of the
products launched are as follows:
1)
Smart Income Protect - A Traditional, Participating
Saving Plan with Guaranteed Regular Annual Payouts
2)
Smart Income Shield Insurance - A Traditional
Non-Participating Term Insurance plan, providing monthly income
3)
Smart Health Insurance - A Traditional
Non-Participating Health Insurance Plan
4)
Grameen Bima - A Pure Term Micro Insurance Plan
5)
Saral Pension - A Traditional Participating Pension
Plan
6)
EShield - A Traditional Non-Participating On-line
Term Plan
BRAND PERFORMANCE
The brand, ‘SBI’, is a very strong, trusted, reliable and most preferred
brand in India in financial and banking services. ‘SBI Life’ is blessed with
strong parentage of State Bank of India (SBI) and BNP Paribas Cardif.
SBI Life extensively leverages the State Bank Group relationship as a
platform for cross-selling insurance products along with its numerous banking
product packages such as housing loans and personal loans. SBI’s access to over
100 million accounts across the country provides a vibrant base for insurance
penetration across every region and economic strata in the country, thus
ensuring true financial inclusion. The Company not only taps the potential
better but also provides a safe and transparent insurance alternative to the
public at large.
The brand ‘SBI Life’ has become one of the most recognized, trusted and
preferred brand in India, among private sector life insurance companies, which
provides its stakeholders a wide range of products and services with
significant competitive advantage. The testimony of the same is Company’s No. 1
position amongst private life insurance players (NBP base) on a year on year
basis. Further, the Company’s performance has been acclaimed and awarded by
various esteemed organizations over the years.
The Company continued its efforts towards maintaining its brand image in
FY 2012-13. The Company has been ranked as the ‘Most Trusted Private Life
Insurance Brand, 2012’, for the second consecutive year, by The Economic Times,
Brand Equity and Nielsen, Most Trusted Brands 2012. The ‘Most Trusted Brands’
survey evaluates brands on the basis of media visibility, consideration,
specialty and customer confidence. The ET Brand Equity - Nielsen survey is
based on interviews from over 8,000 respondents in 13 cities, distributed
across socio economic classifications age, income and geography. Awareness,
familiarity, high equity and unique proposition are key attributes of the
brands that are featured in the survey.
They will continue their efforts towards strengthening their brand image
through an optimal mix of above-the-line and below-the-line activities.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
1 Partly paid – up investments |
0.000 |
0.000 |
|
2 Claims, other
than against policies, not acknowledged as debts by the Company |
844.905 |
1.512 |
|
3 Underwriting
commitments outstanding (in respect of shares and securities) |
0.000 |
0.000 |
|
4 Guarantees given by or on behalf of the Company |
0.000 |
0.000 |
|
5 Statutory demands or liabilities in dispute, not provided |
2273.318 |
1162.119 |
|
6 Reinsurance obligations to the extent not provided for in accounts |
0.000 |
0.000 |
|
7 Others - Insurance
claims disputed by the Company, to the extent not provided or reserved |
277.979 |
201.007 |
|
|
|
|
|
Total |
3396.202 |
1364.638 |
|
Note: The statutory demands
as mentioned above are against show cause cum demand notices or
assessment/appellate orders received by the Company from the Income
Tax/Service Tax Authorities. The Company has filed appeals against the said
show cause cum demand notices or assessment orders with the higher appellate
authorities and has been advised by the experts that our grounds of appeal
are well supported in law in view of which the Company does not expect a
future liability. |
||
FIXED ASSETS:
· Goodwill
Intangibles
– software
Land
– freehold
Leasehold
property
Building
on freehold land
Furniture
& fittings
Information
technology equipment
Vehicles
Office
equipment
Leasehold
improvements
PRESS RELEASE
SBI LIFE LAUNCHES
FLEXI SMART PLUS A WEALTH CREATION
PLAN WITH GUARANTEED BENEFITS
ü Guaranteed Minimum
Bonus Interest Rate
ü Additional Regular
& Terminal Bonus Interest rate
ü Multiple Flexible
Options
·
Two Plan options to choose from – Gold and Platinum
·
Partial Withdrawal option
·
Increase or Decrease of Sum Assured
·
Increase of Policy Term
Mumbai, December 16, 2013: SBI Life Insurance, the most trusted and
preferred private life insurer, launches the “SBI Life - Flexi Smart Plus”
insurance plan. The product is designed to protect and cater to the savings
needs of multiple customer segments with low risk appetite.
Announcing the launch of this
unique product, Mr. Atanu Sen, MD & CEO of SBI Life Insurance said: “Our
focus while designing a product has always been on addressing customer needs.
Hence, our ranges of products are not only innovative and simple, but also meet
the financial/protection needs of our customers. The Flexi Smart Plus plan,
further strengthens our product offering by catering to customers who are
looking to create wealth, while protecting their loved ones. At the same time,
it assures guaranteed returns which make the product unique.”
Flexi Smart Plus has two Protection options to choose from; A: Gold
option, which gives higher of policy account value, sum assured, or 105% of
total premiums paid on death; and B: Platinum option which gives higher of
policy account value plus sum assured, or 105% of total premium paid on death
Flexi Smart Plus offers a Minimum Bonus Interest Rate which is guaranteed
for the entire policy term. In addition to this, a non-zero positive Regular
Bonus Interest Rate will be declared at the end of each financial year on 31st
March, which will not be less than the Interim Bonus Interest Rate. A Regular
Interest Rate along with the guaranteed minimum bonus interest will be credited
to the policyholders’ account at the end of every Financial Year. A Guaranteed
Interest rate of 7.25% has been declared for FY 2013-14, which includes
Guaranteed Minimum Bonus Interest Rate plus Interim Interest Bonus Rate. Apart
from this a Terminal bonus interest rate may also be credited at the time of
exit on account of maturity, death or surrender.
The product is available at an affordable, minimum premium amount of
Rs.50000 p.a. The policyholder can opt for paying the premium by yearly,
half-yearly, quarterly or monthly modes.
Another customer-friendly feature incorporated in Flexi Smart Plus, is
the Partial Withdrawal facility which is available from the 6th policy year
onwards. The life cover will continue to be available to the policyholder
during this period.
Further, Flexi Smart Plus Insurance provides the policyholder with the
option to increase or decrease the Sum Assured from the 6th policy year
onwards, subject to two months prior notice.
The policy term is minimum 5 years and maximum 30 years with the
flexibility to increase the chosen policy term, subject to two months notice,
prior to the original date of maturity and within the product limits. The
product is open for the age group of 18 to 60 years with the maximum age of
maturity being 65 years.
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. 61.99 |
|
|
1 |
Rs. 102.67 |
|
Euro |
1 |
Rs. 83.98 |
INFORMATION DETAILS
|
Information Gathered
by : |
HTL |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
75 |
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.