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financial analysis of icici prudential life insurance


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about ICICI prudential life insurance its riders benifits,its financial analysis

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financial analysis of icici prudential life insurance

  1. 1. FINANCIAL ANALYSIS OF<br />AMIT KUMAR<br />3020070044<br />RR1709B34<br />BBA-MBA(5TH)<br />
  2. 2. About insurance.<br />Some major players in private sector.<br />About ICICI prudential life insurance co.<br />Products.<br />Achievements<br />Financial management.<br />Financial comparison with other company.<br />My work.<br />Objective of the study.<br />Sources of finance.<br />Financial analysis of company.<br />Findings.<br />Limitations.<br />Recommendations.<br />Contents<br />
  3. 3. Insurance<br />Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed and known small loss to prevent a large, possibly devastating loss.<br />
  4. 4. Major players <br />
  5. 5. ABOUT THE COMPANY<br />Joint venture b/w ICICI bank & prudential life insurance company. ICICI bank has 76% of stake & rest is of prudential.<br />ICICI bank is India’s 2nd largest bank.<br />Prudential is international financial service group having headquarter in U.K.<br />It started its operations in December 2000, after getting approval by IRDA & today this is the no. 1 co. in private sector in India.<br />
  6. 6. ICICI Prudential Life is all about……<br />Wealth<br />Health<br />Life<br />Total <br />Protection<br />We cover you at every step in life<br />
  7. 7. unaudited earnings Rs. 36,340 million.<br />Partnership with McLeod Russel India.<br />Company has opened new 1375 offices in 2008.<br />India&apos;s Most Customer Responsive Insurance Company.<br />Prudence Customer Centricity Award 2007 & 2008 Prudential Corporation Asia.<br />Recent achievement<br />
  8. 8. products<br />ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its products cab is enhanced with up to 6 riders, to create a customized solution for each policyholder.<br />Products<br />-Savings Solutions.<br />-Protection Solutions.<br />-Child Solutions.<br />-Market-linked Solutions.<br />-Retirement Solutions.<br />-Health solutions.<br />Riders<br />-Accident & disability benefit<br />-Accident benefit<br />-Critical Illness Benefit<br />-Major Surgical Assistance Benefits<br />-Income Benefit<br />-Waiver of Premium<br />
  9. 9. Finance function in ICICI Prudential is committed to create an infrastructure that is aligned to shareholder expectations.<br />Basically it includes four functions:<br /><ul><li>Preparation and maintenance of financial records.
  10. 10. Funds management.
  11. 11. Expense processing.
  12. 12. Treasury operations.</li></ul>Financial management of ICICI prudential<br />
  13. 13. Contribution related charges.<br />Administrative charges.<br /> Fund management charges.<br />Mortality charges.<br />Rider charges.<br />Surrender charges.<br />Bid offer charges.<br />Transactional specific charges.<br /> Allocation charges <br />
  14. 14. Financial comparisons with competitors<br />
  15. 15. Preparation for IRDA exam.<br />Cleared IRDA exam.<br />Attending AIP classes.<br />Telecalling.<br />Selling policies.<br />My work<br />
  16. 16. Objectives of the Study<br /><ul><li>To know the financial position of the company using ratios.
  17. 17. To see the change of the company’s assets and liability from 2007 to 2008 using comparative and common size statement.
  18. 18. To find out the sources used by the company to finance their activities.</li></li></ul><li><ul><li>Equity shares is Rs. 326,277 Million which is 67%of total assets.
  19. 19. Debt is Rs. 160,458 Million which is 33% of total assets.</li></ul>Sources of fund<br />
  20. 20. <ul><li>The current liability and provisions have increased from 2.40% to 3.59%.
  21. 21. The loan and advances has decreased from 0.12% to 0.06%.
  22. 22. Current assets has increased by 6.00%.</li></ul>Common size balance sheet<br />
  23. 23. <ul><li>Reserves and surplus has increased by Rs. 161193 which is 54%.
  24. 24. Cash and bank balance has increased by 21.75%.
  25. 25. Current liability have increased by 38.14%.
  26. 26. Provision have increased by 62.66%.</li></ul>Comparative balance sheet<br />
  27. 27. Current ratio<br />This ratio tells us about the ability of the company to payoff its current liability using current assets.<br />
  28. 28. <ul><li>It is the ratio which tells us about how much net profit is generated by sales.</li></ul>Profitability ratio<br />
  29. 29. This ratio tells us what is the company’s position to pay off its total debt through its total asset. <br />Debt ratio<br />
  30. 30. This ratio indicates relation between the net income generated and the total assets.<br />Return ratio<br />
  31. 31. More charges is taken from customers.<br />Company may face problems to pay their short term liability.<br />Company was not earning the profit till 2008.<br />Company is doing better this year as compare to previous year.<br />Findings<br />
  32. 32. Limited time.<br />Company doesn’t provide annual report.<br />Lack of accurate data.<br />No cooperation by financial department to trainee.<br />limitations<br />
  33. 33. Swot analysis<br />
  34. 34. Brand image<br />Money power, <br />larger network branches, <br />large portfolio (in built fund hedge), <br />price competitive products and <br />low upfront charge<br />Strength<br />
  35. 35. Little product differentiation.<br />Most of the plans too complicated to understand.<br />More centered in urban areas. <br />More allocation charges.<br />Weakness<br />
  36. 36. Insurance coverage both to the parent & children in one plan.<br />Leverage the customer base of bancassurance partner.<br />Rural market.<br />Opportunity<br />
  37. 37. Players like Bajaj Allianz with low premium for same plan.<br />LIC offering huge surplus in life fund.<br />New entrance.<br />Threats <br />
  38. 38. Company should care about fund management so that it can do better in future.<br />Should take less charges from customers.<br />Should provide annual report.<br />Should cooperate with trainee & give proper knowledge to them.<br />Recommendations<br />