THE CASE STUDY1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.2.   W...
ACKNOWLEDGEMENT              We would like to express the deepest appreciation to manager              human resources Mr:...
Insurance IndustryThe insurance industry was nationalized in 1961, by the government taking over a number ofinsurance comp...
as a very satisfactory achievement considering the global economic recession that was prevalentduring the last year. Howev...
The National Development Bank (NDB) – Sri Lanka‟s leading development bank – became themajor local shareholder since 1997....
This new acquisition emphasizing that Eagles customers will continue to enjoy theprofessionalism, prudence, good governanc...
Core Values       Accepting Risk with Responsibility       Being Ethical and Social Responsibility       Innovation   ...
The NDB Group is the second largest shareholder of the company. When considering operationalperformances and financial pow...
Chairman of AVIVA NDB Insurance Plc, Bill Lisie said: “Sri Lanka with a focuseddevelopment outlook is an important Asian m...
AVIVA NDB – ORGANISATION CULTURE & EMPLOYEESNew Organization culture based on Family Oriented and Learning culture strengt...
company renowned as a best employer in Sri Lanka. They believe that the ultimate result of thatHR Development is the compa...
Director life Distribution, Upul Wijesinghe, explained,” This tie up with the University hascreated an opportunity for car...
Annually they organized several welfare events through their sports club such as Sports Day,Theatre Day, Christmas Party, ...
GM-HR and the General manger of the relevant department. Then successful candidate is offeredemployment by HRM.Contractual...
In present, AVIVA NDB Insurance Plc‟s Personal Solutions include Financial Protection Plans,Dividend Plans, Car Protect Pl...
The concept of insurance advisors becoming Wealth Planners is satisfied both Life and Generalinsurance needs and Asset Man...
AVIVA NDB Insurance Plc has changed the perception of insurance agent by naming them as“Wealth planners”. Now known as the...
the perception of Sri Lankan people towards the investment in insurance company. So there is atendency that people may sel...
The company received Asia Industry Awards foe CSR and has been ranked amongst “Ten BestCorporate Citizens of Sri Lanka” fo...
In order to promote their corporate commitment towards education sector they organized severalCSR projects such as promoti...
The process DNV adopted to determine the rating included analysing the preliminary profile ofthe company, review of docume...
period of 5 working days will be required for the request                                                 received during ...
Future Direction- a sound future StrategyBanc-assurance PartnershipAs an extension of Eagle‟s banc-assurance partnership w...
Our Journey from “GOOD TO GREAT”“Hedgehog” is their main differentiating capability, which will be the ability to maximize...
Annexure01. Insurance Industry                                      (Source- IBSL Annual report 2009)   1.   This case was...
(Source- IBSL Annual report 2009)Table -01        (Source- IBSL Annual report 2009)                        (Source- IBSL A...
(Source- IBSL Annual report 2009)Table – 02Insurance Industry GWPIndustry GWP (LKR.Mn)                    2005            ...
02. Financial ConditionFINANCIAL STATEMENT -2009BALANCE SHEET                                                           20...
Insurance Provision- Long Term Unit Linked                           1,361,066            494,760Provision For Life Funs S...
Net Written Premium                                      6,121,459           5,326,785Net Change in Reserve For UnearnedPr...
Table – 03Financial Condition  Year                 Profit                Basic               Market         Share        ...
Table – 05Individual Premium                                                                         As at June         As...
Table -07Total Premium(Individual)                                               Target                       Achieve     ...
    November 19- AVIVA NDB bring up peace of mind to Batticaloa.       November 25- A Silver Award for the Annual Report...
2008               725                              2009               786         (Source- Web Site [www.avivandb.com] of...
(Source- Web Site [www.avivandb.com] of the AVIVA NDB Insurance Plc)08. AVIVA NDB Insurance Plc- Branches   1.   This case...
(Source- Web Site [www.avivandb.com] of the AVIVA NDB Insurance Plc)1.   This case was prepared by Srinath H.P.G, Sumanara...
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  1. 1. THE CASE STUDY1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  2. 2. ACKNOWLEDGEMENT We would like to express the deepest appreciation to manager human resources Mr:Rukmal Bandaranayke, who has the attitude and the substance of a genius. He continually and convincingly conveyed a spirit of adventure in regard to this “case study” effort. Without his guidance and persistent help this assignment would not have been possible. We would like to thank my course facilitators of integrative studies (BUS4306) Mr Rukmal Weerasingha and special gratitude for Mrs Gayani Samarakoon, who always transcend academia and provide a quest for our times. In addition, a thank for my group colleagues for being the strategic partners of “CASE STUDY”, and whose enthusiasm for the “TWICE THE VALUE OF THE CASE STUDY” had lasting effect1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  3. 3. Insurance IndustryThe insurance industry was nationalized in 1961, by the government taking over a number ofinsurance companies operating in the country at that time. These included a large number oflocal as well as representative offices of foreign insurance companies. The state monopoly of theinsurance industry continued till 1986 with the Sri Lanka Insurance Corporation acting as theonly supplier of insurance. This was converted to a state controlled oligopoly with the creation ofthe National Insurance Corporation. In 1987 as a result of the adoption of a market basedeconomic policy by the Government, the insurance sector was opened out to the private sector.The industry was previously regulated by a Controller of insurance, but now is under purview ofthe Insurance Board of Sri Lanka which has been vested with greater powers to regulate theindustry.The insurance industry has performed well despite the global recession recording growth in thelong term and general insurance sectors. In 2009, the long term insurance contributed for Rs.62,078,117 million and general insurance Rs. 15,441,944 million. In comparison in 2008 longterm insurance contributed for Rs. 48,405,115 million and general insurance Rs. 15,955,553million. The insurance industry penetration is 10 percent.The insurance industry is regulated in terms of the provisions of the Regulation of InsuranceIndustry Act, No.43 of 2000 (RII Act). The Insurance Board of Sri Lanka (IBSL) was establishedunder this Act in order to develop, supervise and regulate the insurance industry in Sri Lanka.Over the past year, the IBSL has embarked upon several activities to develop, supervise andregulate the insurance industry with a view to ensuring that the best interest of the policyholdersand potential policyholders. During the previous year (2009), the IBSL has strengthened itsmonitoring process in order to ensure the financial stability of insurance companies andinsurance brokers. Eleven of them are composite companies, five of them engage in GeneralInsurance business and two companies engage only in Long Term (Life) Insurance business.When a company is registered to transact in both Life Insurance and General Insurance business,those companies are recognized as composite companies. During the period under review, 43insurance broking companies were registered. This economic performance has to be considered 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  4. 4. as a very satisfactory achievement considering the global economic recession that was prevalentduring the last year. However, the overall gross written premium on insurance has not increasedaccordingly. The Gross Written Premium (GWP) from Long Term (Life) and General InsuranceBusiness in 2009 is added up to Rs. 57,919 million. In the year 2008, the overall gross writtenpremium was Rs.58, 166 million in Sri Lankan insurance industry. (Annexure 01)HistoryAviva NDB Insurance PLC, former known as Eagle Insurance PLC. It is a life and generalinsurance company in Sri Lanka and its parent company is Aviva NDB Finance Lanka (PVT)Ltd. The Groups principal activities are to provide Life and Non-life Insurance Services, AssetManagement, Trustee and Administration Services. It provides Non-life Insurance for Accident,Fire, Marine, Motor and Terrorism etc.Eagle Insurance commenced the business when industry is open to private sector in Sri Lanka.Eagle Insurance Company had been founded in 1988 as a subsidiary of Ceylon TobaccoCompany (CTC) who is the main shareholder and with the collaboration of British AmericanTobacco (BAT) Insurance Business in UK. It underwent a number of changes in ownership untilAviva acquired the majority shareholding.In 1999, the Eagle Insurance Company became part of the Zurich Financial Services Groupbased in Switzerland, when BAT Industries divested its financial services businesses to Zurich aspart of its global strategy. So Eagle joined with Zurich Financial Group who is the world leaderin providing financial services. Zurich Financial Services Company was founded in 1872 assubsidiary of the Schweiz Marine Insurance Company. The Company changed its name toZurich General Accident and Liability Insurance in 1894. In 1998 the Company acquired BritishAmerican Financial Services; a business owned by BAT Industries. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  5. 5. The National Development Bank (NDB) – Sri Lanka‟s leading development bank – became themajor local shareholder since 1997. NDB Group offers project finance, corporate banking, SMElending, retail banking, investment banking, stock broking, wealth management and insurancesolutions under one roof. The shareholding changed once again in 2003 when NDB Bank,through its investor company, the Capital Development and Investment Company (CDIC)acquired the majority shareholding of Eagle Insurance due to the withdrawal of Sri Lankanoperations by Zurich Financial Services group.Eagle Insurance Plc‟s second-largest shareholder NDB Bank, through its investment arm CDIC,took up 100% control in Eagle Insurance by acquiring the partnership share of Zurich in NDBFinance Lanka in 1997 and controlling stake in Eagle Insurance‟s fully owned subsidiary, EagleNDB Fund Management Company (ENDB). How ever on 1st February 2006, CDIC divested a58.4% stake of in NDB Finance Lanka to Aviva International Holdings (AVIVA) while handingover the management to AVIVA.Aviva is the worlds oldest insurance group, with a history dating back nearly 300 years to 1696.Today it is the worlds fifth-largest insurance group and the biggest in the UK. They are theleading providers of life and pension products in United Kingdom. Aviva has 59,000 employeesserving over 50 million customers across Europe, North America and the Asia Pacific. Avivasprincipal business activities are long-term savings, fund management and general insurance andtheir aim is make the global brand. Avivas long-term savings products and services aredistributed through a multi-channel network, which includes a direct sales force, insuranceintermediaries and banc assurance partners.Since February 2006, Aviva and NDB have been the main shareholders of Eagle with 51% and41.15% holding respectively when they took a majority stake in Eagle Insurance. The principalminority share was held by Eagles new bancassurance partner, National Development Bank(NDB).The combined expertise resulting from this unique partnership offers the confidence ofworld class financial solutions while upholding Sri Lankan values. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  6. 6. This new acquisition emphasizing that Eagles customers will continue to enjoy theprofessionalism, prudence, good governance, transparency and corporate responsibility that havebeen the cornerstones since the companys inception in 1988Aviva NDB Plc is the fifth-largest insurer in the Sri Lankan general insurance market with a 6%market share and also has a 19% share of the life insurance market and enjoy bancassuranceagreements with National Development Bank (NDB) and Standard Chartered Bank. Aviva alsonoted that its new acquisition has "entered into a bancassurance agreement with NationalDevelopment Bank Limited (NDB), Sri Lankas biggest development bank and Eagles othermajor shareholder."Presently Eagle and Union Assurance Limited (UAL) control about 29.0% and 73.0% of SriLanka‟s Life and general insurance business respectively.Mid Career of the OrganizationEagle Insurance PlcThe Proud Wings of The Eagle have symbolized an unweaving and strong commitment towardscustomer service excellence in Sri Lanka. As a composite Insurer and Fund Manager, thecompany offers wide portfolio of Life, Non life, Fund management and Mutual Fund/Unit TrustSolutions for individual and corporate customers. The company has earned a commendablereputation for its prudent, professional management and demonstrated a high level of socialresponsibility and good governance in all its endeavors.Vision – “To be a world class provider of financial solutions for protection and wealth creation”Mission – “To be the most sought after Insurer and Fund Manager in Sri Lanka for security,Return Optimization and Excellence in Services, Achieving Leadership in identified segments ofthe market 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  7. 7. Core Values  Accepting Risk with Responsibility  Being Ethical and Social Responsibility  Innovation  Dedication to Customers  Encouraging Everybody to contribute and ExcelRebuilding the Business - TransformationEagle Insurance Plc transform in to AVIVA NDB Insurance plcEagle Insurance PLC has transformed in to AVIVA NDB Insurance Plc as a reposition entity. Itwas a decisive and timely step that they take and this transformation could be able to create amilestone in the history of Insurance Industry in Sri Lanka.In this transformation process AVIVA took the major step. Because they need to strength theirglobal brand strategy of, becoming “one AVIVA” across the globe. Therefore they proposed tocombine the name “NDB” together with the name AVIVA to transform Eagle Insurance Plc intoAVIVA NDB Insurance Plc.There were some few reasons behind that strategy formulation process. Eagle Insurance Plc hada purpose to meet the challenges of a rapidly changing and far more demanding environment.Therefore this transformation in to a repositioned entity with global brands gave strength to themon their journey. Global brands have greater opportunity to deliver benefits to their stakeholdersthan local entities because of their worldwide expertise and financial power. Therefore thecompany could be able to combine the strength of its major shareholders of AVIVA and NDB.Since February 2006, AVIVA and NDB have been the major shareholders of Eagle with 51%and 41.15% holdings respectively. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  8. 8. The NDB Group is the second largest shareholder of the company. When considering operationalperformances and financial power NDB group positioned as one of the largest financialperformer in Sri Lanka. Specially NDB Bank has taken the place of highest capitalized SriLankan Commercial Bank. They offer Project Finance, Corporate Banking, SME Lending, RetailBanking, Investment Banking, Stock broking, Wealth Management, Insurance solutions underone roof. Therefore NDB created significant brand equity to Eagle‟s reposition process.As well as NDB Group, AVIVA contributed greatly to the transformation process as mentionedabove. Because AVIVA is the world‟s fifth largest Insurance group operating in Europe, NorthAmerica & Asia Pacific. Currently they offer long-term savings, fund management and generalInsurance activities.Few comments made by the top people on this transformation,Former Managing Director of Eagle Insurance Plc, Deepal Sooriyaarachchi said: “Thetransformation does not change the close relationship we have with our valued clients as theirinsurer. Our clients can now look forward to a series of globally aligned, more innovativeproducts and services on the wake of this historic transformation.”Chief Executive Officer of NDB Bank, Eran Wickramaratne said: “As the fastest growinghighest capitalized Sri Lankan commercial bank, NDB bank enjoys a wide network and strongties with customers and our name epitomizes Sri Lankan values as a world class Sri LankanBank.We are therefore confident that we will instill greater customer trust towards AVIVA NDB. Wehave diversity of resources, offering a wide ranging portfolio of financial solutions that maintainthe highest standards of competence and profitability and this will be further enhanced by ourfocus on insurance with this transformation.” 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  9. 9. Chairman of AVIVA NDB Insurance Plc, Bill Lisie said: “Sri Lanka with a focuseddevelopment outlook is an important Asian market for AVIVA and we are confident that thistransformation would result in tangible improvements in every way.The new strategies envisaged are designed to impact favorably on the transformed company. Thefirst of a series of many value added services that AVIVA as a global brand is poised to offercustomers in Sri Lanka is the concept of insurance advisors becoming “Wealth Planners” withskills to satisfy both life and general Insurance needs and in the near future asset managementneeds as well.”Management ChangeTop management commitment becomes a major factor towards development of AVIVA NDBInsurance Plc. Therefore the management changes after reposition was given high impact on thecompany‟s operations.Before the reposition Eagle Insurance as AVIVA NDB Insurance Plc, Mr. DeepalSooriyarachchi acts as the Managing Director of the company. He joined with the EagleInsurance before 20 years ago and made a dedicated service to the company. During that periodhe could able to achieve career and personal aspirations as well.After leaving of Former Managing Director, Mr. Shah Rouf has appointed as the Chief ExecutiveOfficer (CEO) of AVIVA NDB Insurance Plc. Before his appointments as CEO, he hasperformed as member of the AVIVA NDB Insurance Plc‟s board and as an Executive Director.Mr. Shah Rouf has over 16 years of experience with in the AVIVA Group. He has heldleadership positions in both life and general insurance in AVIVA‟s operations in the UK, India,Middle-East and Europe.AVIVA NDB Insurance Plc‟s management changes have made considerable influence on theirbusiness strategies, policies & procedures utilize in the Insurance Industry in Sri Lanka.(Annexure 04) 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  10. 10. AVIVA NDB – ORGANISATION CULTURE & EMPLOYEESNew Organization culture based on Family Oriented and Learning culture strengthen the AVIVANDB Insurance Plc‟s financial performances. They believe that their strength lies on the familyoriented culture and it‟s core values. Their core values reflect what is important to them. Theyare the cornerstone that encourage and motivate all their employees to work together withcommitment and dedication to give their best to their valued customers. They are,Progressiveness - Being progressiveness is the vision of the future. It encourages innovation,improvements and championing continuous learning. It‟s about leading the industry by listeningand responding to customers and keeping ahead the competition.Performance – Having clear goals and achieving them by everyone working towards in anefficient manner.Integrity – Behave in a way consistent with professional and ethical standards. It‟s being open,honest, keeping commitments, personal responsibility, trust and respect.Teamwork - Teamwork is their lifeblood. Commit to a common vision and objectives; dependon one another, pulling together, share knowledge and learning.Because those core values encourage every one to contribute to the organization success andexcel in the insurance industry in Sri Lanka. Therefore they consider every employee in thecompany as a member of the AVIVA NDB family.In AVIVA NDB Insurance Plc everyone have opportunity for learning and growth. Therefore theworkforce commits to reach that higher level of performance in short time period than before.Training and DevelopmentAccording to the top management view the most valuable resource of the company is their workforce. Therefore they place a high emphasis on Human Resource Development. They hold apolicy to build a highly qualified, skilled and motivated team. Base on that goal the companyassigns considerable resources for the Training & Development. Because of that factor the 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  11. 11. company renowned as a best employer in Sri Lanka. They believe that the ultimate result of thatHR Development is the company success through providing maximum services to its customers.(Table 05)After reposition the Eagle Insurance Plc as AVIVA NDB Insurance Plc, there were somechanges in their Human Resource Development Policies. The major change was introduced in totheir sales force.Managing Director, Shah Roufe explained, “Our Wealth Planners” are a new category in theindustry and will be competent to offer the best possible advice and solutions to satisfy most offinancial needs of clients.”Under that new policy AVIVA NDB Insurance Plc, empowered their sales force in order to meetthe both life and general insurance needs and needs of build and protect wealth of their existingand new customers. As mentioned above they called as “Wealth Planners”. By using thatstrategy the company expects to provide all the insurance solutions to their customers by a singlewealth planner. It may be a life insurance; home insurance, motor insurance or unit-linkedinvestment based insurance products.Transformation of Eagle Insurance Plc‟s, nearly 3000 sales force, as wealth planners became amajor factor throughout their success story after the reposition as AVIVA NDB Insurance Plc inorder to achieve planned outcomes from their wealth planners the company offer specific level ofworld class training and guidance programs.A noticeable factor is that the company has entered in to a MOU with the University ofWayamba. Through this MOU they developed a University accredited course to provide acertificate in Personal Financial Management to their Wealth Planners. Through this they able toprovide a competent professional financial advises to their clients. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  12. 12. Director life Distribution, Upul Wijesinghe, explained,” This tie up with the University hascreated an opportunity for career development where our “wealth Planners” would have theopportunity to further progress by acquiring academic qualifications, laying the foundation for aprofessionally competent sales force driving the company‟s sustainable performance. This alsoseeks to ensure that the sales force designing financial solutions for our clients are equipped toprovide world class professional financial advice.”Other than that they receive continuous training and skills development programs through their“Center for Excellence”. This is an in house training facility, which can be considered as the firstIn-company training center out side United Kingdom, accepted by CIM- UK. Here they receivetraining for professionalism, integrity and dedication to their customers. Regularly the companysent their top performers for training abroad to gain exposure on sales and customer caretechniques practice around the world. This is benefit they gain from AVIVA‟s global expertise.The company has proposal to employ their wealth planners with laptops. This generatesadvantages of utilizing advance technology through providing efficient and effective services totheir customers. Because that is the important part of the company reposition. The laptops enablewealth planners to build a sound business relationship with their customers by providinginstantly design financial solutions for unique needs.AVIVA NDB Insurance plc provides different types of motivational schemes not only for theirwealth planners but also to their entire work force. They offer regular rewords scheme forrecognizing excellence, Annual Quill Award for Quality enhancing teamwork and ManagingDirector‟s awards for noticeable individual performances. The main reason behind thatmotivational scheme is that they want to build a motivated and committed team in their companyas a path to success. In addition to that they offer regular In- House publications and programs.As an example Quizzes Programs to enhance knowledge. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  13. 13. Annually they organized several welfare events through their sports club such as Sports Day,Theatre Day, Christmas Party, Picnics and Social Services Projects. As mention above becauseof that family oriented culture with in the company, every employee enjoys world-class offers asa member of AVIVA NDB family without any discrimination.Recruitment ProcessThere are specific processes for recruitment of each type of employees such as managementstaff, non management staff and contractual staff.Management StaffAt that point Staff Requisition Form and the Job Description should be sent by the HiringManager to Senior Executive HR and all new positions should be approved by General Manager-HR. if there are any replacements should be approved by the Head of the Division.Recruitment process for management staff consist of four steps. Process begins with a firstinterview with Senior Executive-HR and the respective Line Manager. Then successfulcandidates from the first interview will under go an assessment center. In this point GM-HR andthe Line Manager will assess the candidate.Then there is a final interview as the third step. At the last step successful candidate is offeredemployment by HRM.Non Management StaffStaff Requisition Form should be sent by the Hiring Manager to Senior Executive –HR and allnew positions should be approved by General Manager -HR. if there are any replacementsshould be approved by the Head of the Division.Recruitment process consists of five steps. At the first step there is an Evaluation Test whichconsists of English Test and IQ Test. Then successful candidates will have the first interviewwith the Senior Executive HR and the Line Manger. At the third step there is an interview withManager HR for successful candidates after first interview. Then there is a final interview with 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  14. 14. GM-HR and the General manger of the relevant department. Then successful candidate is offeredemployment by HRM.Contractual StaffAt hat point Staff Requisition Form should be sent by the Hiring Manager to senior Executive –HR and all new positions should be approved by General Manager- HR. if there are anyreplacements should be approved by the head of the Division.There are four steps in recruitment process. At the first step there is an evaluation test consist ofEnglish test and IQ Test. In this case the candidate must obtain a minimum of 50% for eachpaper. Then successful candidate will have the first interview with the Senior Executive –HR andthe Line Manager. At the third step there is a final interview with Manager HR and the managerrepresentative if the outsourced client. Then successful candidate is offered employment by theoutsourced client.Product RangeAVIVA NDB Insurance Plc arranges their production categories with the focus on individualand corporate customers needs. Based on those factors they provide professional life and generalinsurance needs. With use of new category of insurance sales professional called, “WealthPlanners”. This is a new feature in their production outcome as well as in the insurance industryin Sri Lanka.Before repositioned as AVIVA NDB Insurance Plc, Eagle Insurance Plc provided those life andgeneral insurance solutions through their sales forces. That was not more talkative feature in theinsurance industry. But nowadays AVIVA NDB Insurance Plc production outcomes are moreinnovative and advantageous because of strategic alliance between two global brands thatprovides global exposure and stability. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  15. 15. In present, AVIVA NDB Insurance Plc‟s Personal Solutions include Financial Protection Plans,Dividend Plans, Car Protect Plans, Home Insurance Policies, Title and Travel Insurance Policies.As well as personal solutions, business solutions also modified because of the new repositionentity. Aviva NDB Insurance at that moment provides total solution to their corporate customers.This total solutions combined the important elements such as assets protection, risk management,employee well being and protection from liabilities.Therefore the business solutions include Employee Life Insurance Policies, Surgical andHospitalization Insurance Policies, Workmen‟s Compensation Insurance, Group life Insurance,Gratuity Planning Solutions for Employees, Protect from liabilities, E-marine Insurance Servicesfor Importers & Exporters, Industrial Risk Management Advices & Services, Assets ProtectionInsurance, Third Party Liability for Life & Property Insurance. (Annexure 07)Customer Relationship Management (CRM)AVIVA NDB Insurance Plc offer best value to its customers. The customer group of thecompany includes both individuals as well as business customers. The Customer RelationshipManagement (CRM) System of the AVIVA NDB Insurance Plc provides many services to itscustomers. They are , practicing the call center customer problem resolution methods, resolvingqueries of the first call of the customer, resolving online customer queries, providing customerguidance counseling, using the well defined grievances address procedures which aim toresolving complaints within 15 days, providing facilities to download policy statements &premium renewal receipts through the internet, proving the softcopy of the customers policydocuments before policy goes in force, proving the services of online premium payment throughvisa and establishing the self-help kiosks at branch and non-branch locations to facilitatepremium payments & query handling of the customers. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  16. 16. The concept of insurance advisors becoming Wealth Planners is satisfied both Life and Generalinsurance needs and Asset Management needs of the customers. They also called as “The teamcustomers can trust”. The Wealth Planners are trained and well equipped to meet both Life andGeneral insurance needs of the customers. So the Wealth Planners offer the best possible adviceand solutions to satisfy needs of clients. The company will soon start equipping Aviva NDBWealth Planners with laptops. This initiative will keep them to providing better services withadvancing technology to serve customers more efficiently and effectively as an integral part ofthe Company‟s transformation. The laptops will enable the Wealth Planners to instantly designthe financial solution that meets the unique needs of a customer.„Bancassurance Awards Night‟ was held in Colombo for the period 2006/2007 for the purpose ofrecognize the employees who has high achievement and dedication toward the company and wellserved to the customers. Since Eagle became a member of the AVIVA group they pioneered inBancassurance in Sri Lanka and it reflect the commitment of providing wider opportunities to thecustomers.Growth & Challenges-Reassuring the publicWe know that almost all the insurance companies have same kind of insurance policies. But herewe see that AVIVA NDB Insurance Plc has given higher perceived value than the competitors toits policies. Other than the normal insurance policies AVIVA NDB Insurance Plc haveintroduced an investment planning system. It has 4 unit linked investment fund options. Thisgives the flexibility of choosing how the money should be invested in terms of the risk and thesecurity investment. Customers can choose one or a combination of funds based on the risk andreturn mix they would like to utilize for. And also customer can change the funds for investmentstwice a year. Those funds are protected fund, secure fund, Balance fund and Growth fund. Forthis investment plan customers is getting a life cover up to 2-6 times. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  17. 17. AVIVA NDB Insurance Plc has changed the perception of insurance agent by naming them as“Wealth planners”. Now known as the “Team you can trust” the wealth planners are trained andwell equipped to meet both life and general insurance needs of customers. These will empoweredAVIVA NDB Insurance Plc‟s sales personal with skills to handle the entire spectrum ofinsurance solutions as individual is likely require. The newly transformed wealth planners havebeen armed with world class training and guidance, building on the investments the company hasmade over the decades to professionalize the sales force. Wealth planners are a new category inthe insurance industry and will be competent to offer the best possible advice and solutions tosatisfy most financial needs of clients. Customers can have the advantage of a single wealthplanner providing whatever insurance solutions they need.Company has to compete not only with other insurance companies but also with Banks, FinanceCompanies etc. That is because of different forms of substitutions. Those are Product – forProduct substitution, Substitution of need and Generic substitution. We can also see that somecompanies have divided their market and compete on different bases. These strategic groups canbe seen as Motor Vehicle Insurance, Life Insurance, Marine Insurance, Fire insurance etc. In SriLanka most of the companies have focused on motor vehicle insurance and life insurance.Janashakthi Full Option, Ceylinco on the Spot and Sri Lanka Insurance Motor Plus are threecompetitors for the motor insurance. But we can see that AVIVA NDB Insurance Plc is mainlyfocusing on the life insurance and wealth management. When we take life insurance they have tocompete with Ceylinco Life, Sri Lanka Insurance Life Insurance, Janashakthi Life Insurance andUnion Assurance etc. But they have to compete with Banks and other financial institutions fortheir wealth management plan. Most of the banks and financial institutions have introducedpension plans for the same strategic group people who do not have pension, gratuity, providentfund and Employee‟s Trust Fund. In Sri Lanka most of the people save their money in banks.Now banks also giving the insurance coverage for their account holders. NSB Pension + andBOC Infinity are two examples for the same kind of AVIVA NDB Insurance Plc‟s Future gain,Life bond and Live smart investment plans. Therefore AVIVA NDB Insurance Plc has to change 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  18. 18. the perception of Sri Lankan people towards the investment in insurance company. So there is atendency that people may select government banks to invest their funds because of the badexperiences about the private institutions. Therefore AVIVA NDB Insurance Plc has to capturethe market by winning the hearts of the Sri Lankan people.Aviva NDB uses several methods to advertise their products and services. For example they dopromotions through Television advertisements, Newspaper advertisements, Cutouts, Brochures,Web, T-Shirts and Caps etc. Aviva NDB‟s core brand values represented in the tri colored logothat will drive Aviva NDB is Progressiveness, Integrity, Performance and Teamwork.Corporate Social Responsibility (CSR)AVIVA NDB Insurance Plc designed its CSR projects strategically in order to provide benefitsto all of its stakeholders, employees, customers and society as a corporate role model and pioneerof CSR in the Sri Lanka. At the period of Eagle Insurance the company allocates a minimum of1% of annual profits for CSR projects and after strategic alliance as Aviva NDB, they hope tocontinue this policy. As pioneers in the insurance industry they are prudent fund managers.Because of that they have set up a trust fund to continue their CSR projects in Sri Lanka.Former Managing Director Eagle Insurance Plc, Deepal Sooriyarachchi, explained,”CSR ispart of the value system which our corporate culture pivots in and our way of life. It goes beyondbusiness objectives to create a continuous impact on society. Being ethical and sociallyresponsible is a fundamental core value of the company.”Head of Marketing & Planning, Amal Perera Explained,” The Company CSR-endeavors aredesigned to be relevant to each stage of a person‟s life cycle, driving the nation forward as awhole.” 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  19. 19. The company received Asia Industry Awards foe CSR and has been ranked amongst “Ten BestCorporate Citizens of Sri Lanka” for the third successive year. This was the only company whichreceived such award in Insurance Industry. Other than that the company was awarded numberone in Sri Lanka in “Customer Relations” presented by the Ceylon Chamber of Commerce.The company has given its corporate commitment especially to the area of safety and educationthrough their CSR projects, the main farsighted focus behind their CSR is the well being of oursociety.As an insurance company, safety is always aligned with the company‟s involvement in riskmanagement. Therefore this area of activity has recorded many success stories through severalawareness programs. So the company organized their safety awareness programs in order toidentify and address issues relating to personal safety in day to day life and corporate safetypractices.The company organized safety awareness programs for individual/ families such as Pre schoolTeachers seminar on safety, use of fire crackers and fire works, road safety, poster competitionon safety and gave sponsors on safety awareness.In order to initiate corporate safety the company introduces “National Safety Awards “for thesafest work place, in collaboration with Labor Department and Employee Trust Fund. This was atremendous event and this has highly contributed to support and promote safety standards andwork morale .Other than that they distribute educational materials such as posters, booklets,safety news letters and conduct seminars on safety. Through those programs the companyengages to encourage the corporate sector that “Accidents are Avoidable”. As a responsiblecorporate entity AVIVA NDB Insurance Plc give their maximum commitment to contributetowards the betterment of society. Therefore they put continuing effort on CSR with its policy of“CSR – SANS – FANFARE”. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  20. 20. In order to promote their corporate commitment towards education sector they organized severalCSR projects such as promoting early childhood intellectual development through “GuruPubuduwa Seminars”, Developing Adults by positive thinking through seminars andsponsorships of TV & Radio Programs, Offering placement opportunities to university students,developing entrepreneurial skills, recognizing excellence in Arts-“AVIVA NDB ExcellenceAwards”, Sponsoring “National Civilian Bravery Awards”.Corporate GovernanceThe company awarded 1st place in "Good Corporate Governance Disclosures" in Sri Lanka andtreated as runner-up in the Insurance companies sector. The Awards were presented by theInstitute of Chartered Accountants of Sri Lanka. It is a testimony and a reflection of what theircompany stands for, their transparency and ethical stand in society.Det Norske Veritas (DNV), a leader in third party certification and assessment services includingCorporate Governance (CG), with a global reputation for excellence is headquartered in Norwayand operates in over 100 countries. The review process of corporate governance of AVIVA NDBInsurance Plc was evaluated under the seven key areas. They are governance policy and businessethics, risk management, board and management organization, board and executivecompensation, ownership structure and control, investor rights and relations and financialdisclosure and audit.In the report DNV states that it is their view that Eagles board and management has a soundunderstanding of good governance practices and they are committed to governance as a way ofenhancing brand value; corporate reputation and shareholder value. Ethical aspects are welladdressed and there is a strong emphasis on integrity within the company. Equally, strong riskmanagement, policies and systems are in place and are embedded throughout the companysoperations. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  21. 21. The process DNV adopted to determine the rating included analysing the preliminary profile ofthe company, review of documentation and interviews with the chairman, and other boardmembers..Eagle has earned a high overall rating of 8 which DNV stated "reflects both the quality of itsboard of directors, the management process and the pro-active approach the company has takento establish good governance practices. In now a days AVIVA NDB Insurance Plc continuesthose good governance procedures in order to satisfy the expectations of their stakeholders,employees and customers as well.Service Standards on key servicesAVIVA NDB Insurance plc maintains the service standards for national distribution in threeareas such as sales administration, Intermediary services and management information. Becausethey believe that the service standards will be the key to success. Those service standards arepractised during providing key services mention as follows.Key Service Service Standard-New Appointments All completed applications received from 1st to 20th of a month will be processed within 2 days of receipt at Sales Administration Unit (SAU). Activation of codes will be made within 1 day of receipt of the signed contract copy at SAU.-Promotions/Demotions All completed request will be processed within 5 working days.-Policy Transfers Application received at SAU during 1st to 20th of a month will be processed with in 3 working days. An extended 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  22. 22. period of 5 working days will be required for the request received during peak period.-Superannuation Withdrawals Will be processed and forwarded for payment with in 4 working days of receipt of the request sent from regional office.-Loans All completed loan application received during 6th to 31st of a given month, will be issued with in 3 working days. Loans will not be processed with in the first 5 working days of a month due to system limitations. However urgent payment will be processed with in this period upon special approval, on a case by case basis.-Management Information (MI) Before 12th day of the month. Reports-Competitions 1.5 months to 2 months  -Realising the final list after probable  -Provide MI and knowledge based on past experience to design new competitions  -Suggest the competitions by analysing the business patterns-Orphan Policy Management With in 5 working days should cover all processes-Production Transfer Within 5 working days should cover all processes 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  23. 23. Future Direction- a sound future StrategyBanc-assurance PartnershipAs an extension of Eagle‟s banc-assurance partnership with Sampath Bank, two Life Insuranceproducts were launched for Sampath Bank customers who were previously able to obtainGeneral Insurance products underwritten by Eagle. Now both Life and General Insuranceproducts are available at Sampath Bank Branches.This is a value added services to Sampath bank‟s customers. Now General Insurance banc-assurance products are already being marked successfully through the branches. Customers nowhave the added facility to obtain Life Insurance products for investments and financial protectionneeds. The banc-assurance partnership with Sampath Bank will make things so much easier forcustomers who wish to enjoy banking services whilst obtaining Life and General Insuranceproducts without a hassle.With the launch of the Life insurance range, customers can avail themselves of two financialsolutions. One financial solution offered, is ideal for customers who cannot commit for a longterm premium outlay. Premium payment is only for five years for a policy that spans 10 to 30years. Life covers five times the annual premium .with this product one can now ensure that hisor her child‟s dream of higher education is secure or plan ahead for a comfortable retirement.The other financial solution available through this banc-assurance partnership is a product whichensures adequate financial protection of policyholders who may presently own an insurancepolicy. This product also offers customers a limited premium paying period. This non premiumpaying period helps policyholders enjoy peace of mind, allowing them to meet other financialcommitments with complete confidence. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  24. 24. Our Journey from “GOOD TO GREAT”“Hedgehog” is their main differentiating capability, which will be the ability to maximize thevalue from each and every customer contact we have, at which point we make a new sale, upsale, cross sale or collect the information and relevant with future sale with a moment of truth. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  25. 25. Annexure01. Insurance Industry (Source- IBSL Annual report 2009) 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  26. 26. (Source- IBSL Annual report 2009)Table -01 (Source- IBSL Annual report 2009) (Source- IBSL Annual report 2009) 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  27. 27. (Source- IBSL Annual report 2009)Table – 02Insurance Industry GWPIndustry GWP (LKR.Mn) 2005 2006 2007 2008 Life 14,806 17,104 20,729 23,613 General 22,410 25,931 31,156 34,555 Growth (%) Life 18 16 21 14 General 32 16 20 11 (Source- IBSL Annual report, 2009) 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  28. 28. 02. Financial ConditionFINANCIAL STATEMENT -2009BALANCE SHEET 2009 2008As at 31st December LKR 000 LKR 000ASSETSInvestments 17,757,035 14,739,110Investments - Unit Linked 1,330,852 473,706Intangible Assets 86,173 104,144Investments In Subsidiaries 1,000 51,000Property, Plant & Equipment 237,772 271,976Other Fund Assets 190,769 187,501Policy Loans & Other Loans 1,634,964 1,530,502Deferred Tax Asset 128,157 57,044Reinsurance Receivable 502,704 492,291Amount Due From Subsidiaries 1,863 858Trade Receivable 846,970 575,487Other Assets 1,132,147 802,178Cash & Cash Equivalents 540,566 419,546Cash & Cash Equivalents- Unit Linked 30,214 21,054TOTAL ASSETS 24,421,186 19,726,397LIABILIES AND SHAREHOLDERSEQUITYLiabilitiesInsurance Provision- Long Term Conventional 16,686,639 13,989,661 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  29. 29. Insurance Provision- Long Term Unit Linked 1,361,066 494,760Provision For Life Funs Solvency 175,000 175,000Insurance Provision- General 1,865,820 1,447,620Other Funds 190,769 187,501Amount Due To Subsidiaries - 7,552Reinsurance Creditors 290,298 309,869Income Tax Liability 236,238 115,686Other Liability 1,039,869 835,081Total Liabilities 21,845,699 17,562,730Shareholders’ EquityStated Capital 300,000 300,000Capital Reserve 39,916 39,916Revenue Reserve 2,235,571 1,823,751 Total Shareholders Equity 2,575,487 2,163,667 TOTAL LIABILIES AND SHAREHOLDERS EQUITY 24,421,186 19,726,397(Source- Annual Report of the AVIVA NDB Insurance Plc, 2009)INCOME STATEMENT For the year ended 31st December 2009 2008 LKR 000 LKR 000Revenue 9,702,796 7,224,859Gross Written Premium 7,136,118 6,387,470Reinsurance Premium (1,014,659) (1,060,685) 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  30. 30. Net Written Premium 6,121,459 5,326,785Net Change in Reserve For UnearnedPremium (436,755) (67,653)Net Earned Premium 5,684,704 5,259,132Benefits, Losses & ExpensesNet Claims & Benefits (2,661,492) (2,373,154)Commission (Net of ReinsuranceCommission) (602,319) (552,499)Deferred Commission 41,916 8,074Increase In Long Term Insurance Fund (3,563,284) (2,178,018) (1,100,475) 163,535Other RevenueAsset Management fees & RelatedIncome - -Investment Income 3,811,093 1,716,752Other Income 206,999 248,975ExpensesOperating & Administration Expenses (1,910,897) (1,559,349)Profit Before Taxation 1,006,720 569,913Tax Expenses (219,900) (126,274)Net Profit For The Year 786,820 443,639Basic Earnings Per Share (LKR) 26.23 14.79Dividend Per Share(LKR) 12.50 3.00(Source- Annual Report of the AVIVA NDB Insurance Plc, 2009) 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  31. 31. Table – 03Financial Condition Year Profit Basic Market Share Dividend Earnings Capitalization Holder Per Share (LKR.Mn) Equity (LKR.) Before Tax (LKR.Mn) Per Share(LKR) 2005 528 17.18 2,550 1,467 4.17 2006 539 17.45 4,065 1,743 8.25 2007 546 17.57 4,523 2,025 9.5 2008 570 14.79 3,450 2,224 3 2009 1007 26.23 5,340 2,565 12.5(Source- Annual Report of the AVIVA NDB Insurance Plc, 2009)Table – 04Gross Written Premium Year Gross Written Premium(LKR.Mn) General Life Insurance Insurance 2005 1,211 2,832 2006 1,468 3,150 2007 1,867 3,788 2008 2,045 4,342 2009 2,504 4,632 (Source- Annual Report of the AVIVA NDB Insurance Plc, 2009) 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  32. 32. Table – 05Individual Premium As at June As at June Plan 2007 2007 2006 Growth %FYP(Mn) 1,077.00 410.00 374.80 9.4Bancassuransce(Mn) 171.00 144.00 7.10 -Renewal(Mn) 2,520.00 1,132.00 1,039.90 8.9GWP(Mn) 3,768.00 1,686.00 1,421.80 18.6(Source- Web Site of the AVIVANDB Insurance Plc)Table - 06Corporate Premium-GWP Plan As at June As at June 2007 2007 2006 Growth %New 6.00 0.30 1.80 -83.3Renewal 140.40 27.70 42.90 -35.4Total 146.40 28.00 44.70 37.4(Source- Web Site of the AVIVA NDBInsurance Plc) 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  33. 33. Table -07Total Premium(Individual) Target Achieve % 3,914.00 1,714.00 43.7(Source –Web Site of the AVIVA NDB Insurance Plc)Table -08Comparison Of Business Performance As at June 2007 2006 Growth %APE 694 504 381st YY Premium 410 375 9GWP 1714 1466 17No of Policies 30208 21933 38Average Premium 22966 22985 0(Source- Web Site of the AVIVA NDB Insurance Plc03. Milestones of AVIVA NDB Insurance Plc in year 2009  April - Reduced festival accidents from fire crackers.  Mar 22 - Awards of excellence.  June 2 - Celebrating AVIVA Day.  June3 - Employee volunteer leave program.  June9 - Extending AVIVA Samana.  June7 - Poson Safety Campaign in Anuradhapura.  July 16- Life Protect.  October 01 – Customers can pay life insurance premiums at National Savings Bank.  October 05- Expansion of the life products range at Sampath Bancassurance.  October 26- Jaffna, now covered by AVIVA NDB Insurance. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  34. 34.  November 19- AVIVA NDB bring up peace of mind to Batticaloa.  November 25- A Silver Award for the Annual Report.  November 30- 9th batch of Highfliers receive scholarship benefits.  December 19- AVIVA NDB expands further to Vauniya. (Source- Annual Report of the AVIVA NDB Insurance Plc, 2009)04. Board of Directors of AVIVA NDB Insurance Plc  Mr. Bill Lisle – Chairman  Mr. Shah Rouf – Managing Director  Mr. Deepal Sooriyaarchchi – Executive Director  Mr. Harvey Chamberlain – Non Executive Director  Mr. David Hope– Non Executive Director  Mr. Eran Wickramarathne– Non Executive Director  Mr. Sarath Wickremanayake  Mr. Lal De Mel– Non Executive Director  Mr. Indrajith Wickramasinghe– Non Executive Director (Source- Annual Report of the AVIVA NDB Insurance Plc, 2009)05. Senior Management  Mr. Shah Rouf  Mr. Upul Wijesinghe  Mr. Ainsley Alles  Mr. Kelum Senanayake  Ms. Chathuri Munaweera  Mr. Gehan Rajapaksha  Ms. Leilamani Perera (Source- Annual Report of the AVIVA NDB Insurance Plc, 2009)06. Employees of AVIVA NDB Insurance Plc Table -05 -Employees of AVIVA NDB Insurance Plc Year No of Employees 2005 447 2006 531 2007 638 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  35. 35. 2008 725 2009 786 (Source- Web Site [www.avivandb.com] of the AVIVA NDB Insurance Plc)07. Business Solutions 1. Employee Life Insurance 2. Surgical and Hospitalization Insurance 3. Workmen‟s Compensation Insurance 4. Group Life Insurance 5. Gratuity Planning Solutions for Employees 6. Protection from Liabilities(Public, Product and Employee) 7. E-marine Insurance Services for Importers and Exporters 8. Industrial Risk Management Advices and Services a) Property Risk Assessment b) Loss Investigation c) Hazard Analysis d) Occupational Health and Safety Management e) Risk Management Communication f) Safety Training Programs g) Claims Management Services -Surgical and Hospitalization Claims -Workmen‟s Compensation -Personal Accident Claims -Marine Claims -Property Claims 9. Assets Protection Insurance a) Engineering Class Insurance (Protection against Fire/Lighting, Explosion, Malicious, Damage, Floods, Storms, Theft, Accidental Damage, Riot/Strike, Terrorism, Clearance of Debris) 10. Third Party liability for Life and Property a) Fire Class Insurance (Fire and Allied peril Insurance) b) Business Protection Insurance c) Marine Class Insurance (Marine Cargo) d) Miscellaneous Class (Business premises, Glass, Money in Transit) 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  36. 36. (Source- Web Site [www.avivandb.com] of the AVIVA NDB Insurance Plc)08. AVIVA NDB Insurance Plc- Branches 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  37. 37. (Source- Web Site [www.avivandb.com] of the AVIVA NDB Insurance Plc)1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization

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