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Submitted by:


Enrollment no: 150602084

Under guidance of:

Industry Guides: Faculty Guide: __________
Designation: Sr. SALES MANAGER Designation:
Organization: PNB METLIFE


Certified that this report is prepared based on the summer internship project undertaken by us

Performance of ULIP and fund management in PNB METLIFE from 27th june 2017 to
20th August 2017, under the able guidance of ______________ in partial fulfillment of the
requirement for award of degree of Bachelor of Business Administration BBA from SGT
University, Gurugram.



________________________ Dr.dean

Senior Lecturer


Forwarded here with a summer internship report on Performance of ULIP and Fund

Management of PNB METLIFE submitted by JATIN Enrollment No.150602084 student of

BBA Vth Semester (2015-18).

This project work is partial fulfillment of the requirement for the degree of Bachelors in

Business Administration from Sgt University,Gurugram.




We consider ourself very fortunate to get the opportunity to conduct the training approval and
got opportunity to get a practical exposure into actual environment and it provides us the
golden opportunity to make our theoretical concept in a more clear way

We are very much thankful to _______________& Mr. Rakesh Sharma for providing us
the opportunity to do the project in the PNB MetLife Insurance Company. We have gone
through the company various sites, Research Books, Magazines and Newspapers also to get
the accurate information for analysis and tried to find the best conclusion.

We are making this project not only for marks but also to increase our knowledge.



1. Introduction
1.1 History of insurance

1.2 Key milestones


1.3 Industry reform


1.4 Present Scenario- life Insurance Industry in


1.5Introduction to ULIP____________________________________16

1.6 How ULIPs work______________________________________20

1.7 The different portfolio strategies available in ULIPS____________22

1.8 Insurance regulatory and development authority of India_________25

2. Company profile
2.1. Companys profile____________________________________27

2.2 Met life Inc__________________________________________28

2.3Met life in India_______________________________________28

2.4 Met life values _______________________________________30

2.5 Met life equity partners _________________________________31

2.6 Met life Banc assurance _________________________________31

2.7 Met life products_______________________________________32

2.8 Key persons___________________________________________38

3.Business Model

4.Organizational Structure
5. Data interpretation and Analysis
5.1 PERFORMANCE OF ULIP ___________________________________46

5.2 FUND

6. SWOT Analysis
7.Findings,conclusion and suggestion



8. Point of View Regarding Companys Profile 55




Student is required to provide the following information at the time of registration within a w
eek of joining their course in the industry.

Students Name Jatin

Enrolment no. 150602084

Program BBA-General

Industry / Organizations name PNB Metlife India Insurance Company

Address (If applicable) Civil lines, Near Mor chowk, Sec-15, Gurgaon-122001

External Guides Name Mr. Rakesh Sharma

Designation Sr. Business Manager Agency Sales

Contact Details 9811479561



This study will help to understand portfolio construction, Evaluation, Revision of insurance
funds of Met life India insurance, at the same times gives an idea whether companies is
gaining maximum returns or not, also helps in understanding the different strategies available
in met life and helps in evaluating whether the funds of met life are performing against other
insurance companies or not..

Indian insurance sector is comprises of various investment and protection plan with
various funds, investment objectives & portfolio strategies for an investor it is very difficult to
select any particular fund for investment. This present study has an objective of find out the
assets allocation of met life and fund management.
The specific objectives of study are:
To analyze the fund option available at met life and measure their past performance.
To explore different portfolio strategies available at met life for an investor for
maximum returns.
To compare the funds of the met life against others in the industry



The history of life insurance in India dates back to 1818 when it was conceived as a
means to provide for English Widows. Interestingly in those days a higher premium was
charged for Indian lives than the non - Indian lives, as Indian lives were considered more risky
to cover. The Bombay Mutual Life Insurance Society started its business in 1870. It was the
first company to charge the same premium for both Indian and non-Indian lives.

The Oriental Assurance Company was established in 1880. The General insurance
business in India, on the other hand, can trace its roots to Triton Insurance Company Limited,
the first general insurance company established in the year 1850 in Calcutta by the British. Till
the end of the nineteenth century insurance business was almost entirely in the hands of
overseas companies.

Insurance regulation formally began in India with the passing of the Life Insurance
Companies Act of 1912 and the Provident Fund Act of 1912. Several frauds during the 1920's
and 1930's sullied insurance business in India. By 1938 there were 176 insurance companies.

The first comprehensive legislation was introduced with the Insurance Act of 1938 that
provided strict State Control over the insurance business. The insurance business grew at a
faster pace after independence. Indian companies strengthened their hold on this business but
despite the growth that was witnessed, insurance remained an urban phenomenon.

The Government of India in 1956, brought together over 240 private life insurers and
provident societies under one nationalized monopoly corporation and Life Insurance
Corporation (LIC) was born. Nationalization was justified on the grounds that it would create
the much needed funds for rapid industrialization. This was in conformity with the
Government's chosen path of State led planning and development.

The non-life insurance business continued to thrive with the private sector till 1972.
Their operations were restricted to organized trade and industry in large cities. The general
insurance industry was nationalized in 1972. With this, nearly 107 insurers were amalgamated
and grouped into four companies- National Insurance Company, New India Assurance
Company, Oriental Insurance Company and United India Insurance Company. These were
subsidiaries of the General Insurance Company (GIC).

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate
the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended by the Insurance Act with the
objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers along with provident societies were taken over
by the central government and nationalized. LIC was formed by an Act of Parliament-
LIC Act 1956- with a capital contribution of Rs. 5 crore from the Government of India.


Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body in April
2000 has fastidiously stuck to its schedule of framing regulations and registering the private
sector insurance companies. Since being set up as an independent statutory body the IRDA has
put in a framework of globally compatible regulations.

The other decision taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies was the launch of the IRDA
online service for issue and renewal of licenses to agents. The approval of institutions for
imparting training to agents has also ensured that the insurance companies would have a trained
workforce of insurance agents in place to sell their products.


Life Insurance is the fastest growing sector in India since 2000 as Government allowed
Private players and FDI up to 26% and recently Cabinet approved a proposal to increase it to
49%. Life Insurance in India was nationalized by incorporating Life Insurance Corporation
(LIC) in 1956. All private life insurance companies at that time were taken over by LIC.

In 1993, the Government of India appointed RN Malhotra Committee to lay down a road map
for privatization of the life insurance sector.

While the committee submitted its report in 1994, it took another six years before the enabling
legislation was passed in the year 2000, legislation amending the Insurance Act of 1938 and
legislating the Act of2000. The same year the newly appointed insurance regulator - Insurance
Regulatory and Development Authority IRDAstarted issuing licenses to private life insurers.

Introduction to ULIPs

The insurance company in ULIPS collects money directly from investors. It serves as the
connecting bridge or a financial intermediary that allows a group of investors to pool their
money together with a predetermined investment objective. The income generated by selling
securities or capital appreciation of these securities is passed on to the investors in proportion
to their investment in the scheme. When an investor invests in a ULIPS, An investor is buying
units or portions of the Fund and thus on investing, become unit holder of the fund.

ULIPS operation flow chart

Pool their
back to
money with


Generates Securities Invest in

Fund Management

Fund Management is the professional management of various securities and assets (e.g., real
estate) in order to meet specified investment goals for the benefit of the investors. Investors
may be institutions (insurance companies, pension funds, corporations etc.) or private investors
(both directly via investment contracts and more commonly via collective investment schemes
e.g. mutual funds or Insurance).

The term Fund management is often used to refer to the investment management of collective
investments, while the more generic fund management may refer to all forms of institutional

investment as well as investment management for private investors. Investment managers who
specialize in advisory or discretionary management on behalf of private investors may often
refer to their services as wealth management or portfolio management often within the context
of so-called "private banking".

The provision of 'investment management services' includes elements of financial statement

analysis, asset selection, stock selection, plan implementation and ongoing monitoring of
investments. Investment management is a large and important global industry in its own right
responsible for caretaking of trillions of yen, dollars, euro, pounds and yen. Coming under the
remit of financial services many of the world's largest companies are at least in part investment
managers and employ millions of staff and create billions in revenue.

Fund manager refers to both a firm that provides investment management services and an
individual who directs fund management decisions.

Fund Manager

The person(s) responsible for implementing a fund's investing strategy and managing its
portfolio trading activities. A fund can be managed by one person, by two people as co-
managers and by a team of three or more people. Fund managers are paid a fee for their work,
which is a percentage of the fund's average assets under management.

Performance measurement

Fund performance is often thought to be the acid test of fund management, and in the
institutional context, accurate measurement is a necessity. For that purpose, institutions
measure the performance of each fund (and usually for internal purposes components of each
fund) under their management, and performance is also measured by external firms that
specialize in performance measurement. The leading performance measurement firms compile

aggregate industry data, e.g., showing how funds in general performed against given indices
and peer groups over various time periods.

In a typical case (let us say an equity fund), then the calculation would be made (as far as the
client is concerned) every quarter and would show a percentage change compared with the
prior quarter (e.g., +4.6% total return in US dollars). This figure would be compared with other
similar funds managed within the institution (for purposes of monitoring internal controls),
with performance data for peer group funds, and with relevant indices (where available) or
tailor-made performance benchmarks where appropriate. The specialist performance
measurement firms calculate quartile and decile data and close attention would be paid to the
ranking of any fund.

Generally speaking, it is probably appropriate for an investment firm to persuade its clients to
assess performance over longer periods (e.g., 3 to 5 years) to smooth out very short term
fluctuations in performance and the influence of the business cycle. This can be difficult
however and, industry wide, there is a serious preoccupation with short-term numbers and the
effect on the relationship with clients (and resultant business risks for the institutions).

An enduring problem is whether to measure before-tax or after-tax performance. After-tax

measurement represents the benefit to the investor, but investors' tax positions may vary.
Before-tax measurement can be misleading, especially in regimens that tax realized capital
gains (and not unrealized). It is thus possible that successful active managers may produce
miserable after-tax results. One possible solution is to report the after-tax position of some
standard taxpayer.

Theoretical Back Ground


A unit-linked insurance plan (ULIP) is a type of life insurance where the cash value of a policy
varies according to the current net asset value of the underlying investment assets. It allows

protection and flexibility in investment, which are not present in other types of life insurance
such as whole life policies. The premium paid is used to purchase units in investment assets
chosen by the policyholder

How ULIPs work

ULIPs work on the lines of mutual funds. The premium paid by the client (less any charge) is
used to buy units in various funds (aggressive, balanced or conservative) floated by the
insurance companies. Units are bought according to the plan chosen by the policyholder. On
every additional premium, more units are allotted to his fund. The policyholder can also switch
among the funds as and when he desires. While some companies allow any number of free
switches to the policyholder, some restrict the number to just three or four. If the number is
exceeded, a certain charge is levied.

Individuals can also make additional investments (besides premium) from time to time to
increase the savings component in their plan. This facility is termed "top-up". The money
parked in a ULIP plan is returned either on the insured's death or in the event of maturity of the
policy. In case of the insured person's untimely death, the amount that the beneficiary is paid
is the higher of the sum assured (insurance cover) or the value of the units (investments).
However, some schemes pay the sum assured plus the prevailing value of the investments.

Types of ULIPs

ULIPs for retirement planning

ULIPs for long term wealth creation

ULIPs for child education

ULIPs for health solutions

Recent modification in ULIPs by IRDA

Initial charges: Premium paid by investors in ULIPs is partly used for insurance and partly
for making investments. However, for the first 2 -3 years of the term of the policy, insurance
companies charged heavily. Sometimes insurance companies diverted as much as 80 percent
of the premium payments towards these charges.

Initial charges are basically used for administration charges, processing fees etc.
Therefore the charges should be extremely low.

Facility to surrender policy: Sometimes policyholders need immediate funds, and then they
opt to surrender their policy. But the problem is, the long term consequences of surrendering
the policy early had an adverse impact on the policyholder's investments.

The surrender charges on policy were high. Some companies confiscated up to 60 per cent of
the policy value in case the policyholder surrendered his policy.

ULIPs give back most when its invested as long term basis. Hence early withdrawal should
be discouraged.


1. The accretion to the fund invested can be checked on daily basis unlike the traditional

2. There is lot more flexibility like partial withdrawal, switching, redirection, early
withdrawal, Sum Assured reduction, top up contribution, etc....

3. Charges are transparent in nature, with the latest AML guidelines insisting on common
nomenclature of charges for all insurance companies.

4. The customer can time the market by exercising switch options and make the most
when markets are zooming or choose to be conservative when markets are falling. Its
thus win-win situation

5. He gets a life cover at a nominal cost unlike mutual funds,

6. Stages in one life like education of children, marriage, and retirement needs can be
soundly planned by the help of ULIPs.

7. Tax advantages are also offered by the ULIPs.


1. Investors find it difficult to understand capital market and how ULIP works

2. ULIPS are attractive for risk taking people and less attractive for risk adverse people

3. Some consider taking term insurance and a mutual fund as a combination to beat the

4. Some consider charges levied exorbitant and not commensurate to the returns offered.

5. The complicated design of the policies makes them less aware of the product features
and chances of misuse by agents are very high.

The Role of a fund Manager

The Prime Goal of a Fund Manager is to monitor and manage the securities (in the form of
stocks, bonds amongst others) to meet the investment goals and objectives of the customers
(investors). The services include financial analysis on the investments, the assets that are
invested upon and the stocks selected. The plan and strategy that is implemented is also to be
closely monitored so that in the longer run, risks on losing out on major dividends can be
avoided. A certified company investment advisor should conduct an assessment of each client's
individual needs and risk profile. The advisor then recommends appropriate investments. The
art of managing investments is an important aspect in its own right and involves a lot of money
at a single moment taking care of trillions of dollars, euro, pounds and yen and other major
Global economies.

The budget of an investment management firm directly depends on the Asset Allocation that
is made by the Fund Manager for the investors. Asset Allocation involves a lot of money at
stake at a go, because at one time you are investing one more than one commodity. Moreover
Asset Allocation has more predictive power than the choice of individual holdings in
determining portfolio/investment return. The real test and skill proof of a Fund Manager truly
lies in handling asset allocations and individual investments separately so that the competition
that the investment faces from other competing funds is handled with care. Another important
factor that a Fund Manager has got to take care of is the diversification in assets once an
investment is being made. It is always advisable to investors to invest in more than one
commodity at a time. A fund does fluctuate and varies with market conditions, so if an investor
loses out on the dividend from one investment he has the other to gain from. As it is people
investing in Mutual Funds do gain from long term returns.

There are numerous ways to invest in a Fund. It depends upon the risk you are willing to
undertake and your expected dividends from your investments. Fund performance is the main
test of fund management and for the investment management firm as well. In order to be sure
that fund they are monitoring, the firm measures the performance of each fund they are
managing. The performance of a Fund shouldn't be decided on the returns provided alone, as
there are several other factors associated with it. Whether the return was worth the risk taken,
Performance of the fund compared to their competitors and finally whether the portfolio
management results were due to luck or the manager's skill. A Fund Manager is hence
compared to God when it comes to Fund Investments.

ULIPs are almost similar to Mutual funds. Only difference in ULIPs is it covers the risk also.


Major Problems For fund Management Companies

Revenue is directly linked to market valuations, so a major fall in asset prices causes a
precipitous decline in revenues relative to costs;

Above-average fund performance is difficult to sustain, and clients may not be patient
during times of poor performance;

Successful fund managers are expensive and may be headhunted by competitors;

Above-average fund performance appears to be dependent on the unique skills of the

fund manager; however, clients are loath to stake their investments on the ability of a
few individuals- they would rather see firm-wide success, attributable to a single
philosophy and internal discipline;

Analysts who generate above-average returns often become sufficiently wealthy that
they avoid corporate employment in favor of managing their personal portfolios.


The Insurance Regulatory and Development Authority (IRDA) is a national agency of the
Government of India, based in Hyderabad. It was formed by an act of Indian Parliament known
as IRDA Act 1999, which was amended in 2002 to incorporate some emerging requirements.
Mission of IRDA as stated in the act is "to protect the interests of the policyholders, to regulate,
promote and ensure orderly growth of the insurance industry and for matters connected
therewith or incidental thereto."In 2010, the Government of India ruled that the Unit Linked
Insurance Plans (ULIPs) will be governed by IRDA, and not the market regulator Securities
and Exchange Board of India


Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA

1. Subject to the provisions of this Act and any other law for the time being in force, the
Authority shall have the duty to regulate, promote and ensure orderly growth of the
insurance business and re-insurance business.

2. Without prejudice to the generality of the provisions contained in sub-section (1), the
powers and functions of the Authority shall include,

I. Issue to the applicant a certificate of registration, renew, modify, withdraw,

suspend or cancel such registration;

II. Protection of the interests of the policy holders in matters concerning assigning
of policy, nomination by policy holders, insurable interest, settlement of
insurance claim, surrender value of policy and other terms and conditions of
contracts of insurance;

III. Specifying requisite qualifications, code of conduct and practical training for
intermediary or insurance intermediaries and agents;

IV. Specifying the code of conduct for surveyors and loss assessors;

V. Promoting efficiency in the conduct of insurance business;

VI. Promoting and regulating professional organizations connected with the

insurance and re-insurance business;

VII. Levying fees and other charges for carrying out the purposes of this Act;

VIII. Calling for information from, undertaking inspection of, conducting enquiries
and investigations including audit of the insurers, intermediaries, insurance
intermediaries and other organizations connected with the insurance business;

IX. Control and regulation of the rates, advantages, terms and conditions that may
be offered by insurers in respect of general insurance business not so controlled
and regulated by the Tariff Advisory Committee under section 64U of the
Insurance Act, 1938 (4 of 1938);

X. Specifying the form and manner in which books of account shall be maintained
and statement of accounts shall be rendered by insurers and other insurance

XI. Regulating investment of funds by insurance companies;

XII. Regulating maintenance of margin of solvency;

XIII. Adjudication of disputes between insurers and intermediaries or insurance


XIV. Supervising the functioning of the Tariff Advisory Committee;

XV. Specifying the percentage of premium income of the insurer to finance schemes
for promoting and regulating professional organizations referred to in clause (f);

XVI. Specifying the percentage of life insurance business and general insurance
business to be undertaken by the insurer in the rural or social sector; and

XVII. Exercising such other powers as may be prescribed from time to time.

Protection of the interest of policy holders:

IRDA has the responsibility of protecting the interest of insurance policyholders. Towards
achieving this objective, the Authority has taken the following steps:

IRDA has notified Protection of Policyholders Interest Regulations 2001 to provide for:
policy proposal documents in easily understandable language; claims procedure in both
life and non-life; setting up of grievance redressal machinery; speedy settlement of

claims; and policyholders' servicing. The Regulation also provides for payment of
interest by insurers for the delay in settlement of claim.

The insurers are required to maintain solvency margins so that they are in a position to
meet their obligations towards policyholders with regard to payment of claims.

It is obligatory on the part of the insurance companies to disclose clearly the benefits,
terms and conditions under the policy. The advertisements issued by the insurers should
not mislead the insuring public.

All insurers are required to set up proper grievance redress machinery in their head
office and at their other offices.

The Authority takes up with the insurers any complaint received from the policyholders
in connection with services provided by them under the insurance contract.

The institution of Insurance Ombudsman was created by a Government of India Notification

dated 11th November, 1998 with the purpose of quick disposal of the grievances of the insured
customers and to mitigate their problems involved in redressal of those grievances. This
institution is of great importance and relevance for the protection of interests of policy holders
and also in building their confidence in the system. The institution has helped to generate and
sustain the faith and confidence amongst the consumers and insurers


Company Profile

PNB MetLife India Insurance Company Limited (PNB MetLife) is a joint venture between
MetLife International Holdings Inc. (MIHI), Punjab National Bank Limited (PNB), Jammu &
Kashmir Bank Limited (JKB), M. Pallonji and Company Private Limited and other private
investors, with MIHI and PNB being the majority shareholders. PNB MetLife was previously
known as MetLife India Insurance Company Limited (MetLife India) and has been present in
India since 2001.

PNB MetLife brings together the financial strength of a leading global life insurance provider,
MetLife, Inc., and the credibility and reliability of PNB, one of India's oldest and leading
nationalized banks. The vast distribution reach of PNB together with the global insurance
expertise and product range of MetLife makes PNB MetLife a strong and trusted insurance

PNB MetLife is present in over 150 locations across the country and serves customers in more
than 7,000 locations through its bank partnerships with PNB, JKB and Karnataka Bank

PNB MetLife provides a wide range of protection and retirement products through its Agency
sales of over 10,000 financial advisors and multiple bank partners, and provides access to
Employee Benefit plans for over 800 corporate clients in India. With its headquarters in
Bangalore and Corporate Office in Gurgaon, PNB MetLife is one of the fastest growing life
insurance companies in the country. The company continues to be consistently profitable and
has declared profits for last four Financial Years.

MetLife Inc.:-

MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (MetLife), is one of the
largest life insurance companies in the world. Founded in 1868, MetLife is a global provider
of life insurance, annuities, employee benefits and asset management. Serving approximately
100 million customers, MetLife has operations in nearly 50 countries and holds leading market
positions in the United States, Japan, Latin America, Asia, Europe and the Middle East.

PNB MetLife in India

Commencement of operations in 2001.

Presence in 132 cities through 192 offices & growing.

Presence in 686 cities through 1910 offices through bank partners

Paid up capital of Rs. 1240 crore

Total Sum assured in force Rs 39,71,611(in lakhs)

Market Share as a company has come up from 1.8% to 2.4% Total Number of
lives covered 13,77,250 ( in lakhs )

Number of employees 7688, Number of Advisors 56,072 and growing.

Widest product basket in the market with 28 products.

PNB MetLife Values

PNB MetLife


PNB MetLife


To evolve and postion the bank as a world class,
progressive , cost effective and customer friendly
institution providing comprehensive financial and related
Integrating frointers of technology and serving various
segments of society especially weaker section.
Committed to excellence in serving the public and also
excelling in corporate values.

To provide excellent professional services and improve its
positions as a leader in financial and related services.
Build and maintain a team of motivated workforce with
high work allow.
Use latest technology aimed at customers satisfaction and
act as an effective catalyst for socio economic


Products of met life

1. PNB MetLife Endowment Saving Plan Plus

Protect your Family Future
Additional Bonuses from 1st Policy Year
Waiver of Premium against 35 Critical Illnesses
Life Cover for entire Policy Term

2. MetLife Guaranteed income plan

Guaranteed Returns
Discount on Higher Sum Assured
Survival and Maturity Benefits
Tax Benefits

3. PNB MetLife Mera Heart and cancer care

Inbuilt Life Cover
Zero Survival Period
Pay Outs at different Stages of Illness
Return of Premium (net of claims paid)

4. MetLife Money Back Plan

Guaranteed Returns
Discount on Higher Sum Assured
Survival and Maturity Benefits
Tax Benefits

5. MetLife Bachat Yojana

Reasonable Premiums
Long Term Savings
Financial Securities

6. MetLife Guaranteed Savings Plan

Guaranteed Additions on Cumulative Premiums
Guaranteed Sum Assured on Maturity
Life Cover for the entire Policy Term

7. MetLife Mera Wealth Plan
Create your own Wealth Plan
Enhance your Investment
Protect your Loved Ones

8. MetLife Mera Term Plan

Cover your Familys Future
Cover your Partner, Hassel-Free
Flexibility to Increase Life Cover

9. MetLife PradhanMantriJeevanJyotiBina Yojana

Protection at Nominal Cost
Straight through processing, no Medicals required
Ease of Enrollment, simplified Proposal Form

10.MetLife Smart Platinum

Flexible Premium Payment Options
Auto Rebalance Investment Portfolio
Option to change Sum Assured

11.PNB MetLifeUnit Linked Employee Benefit Plan

Choice among Five Funds
4 Free Switches in a year
Tax Benefits

12.PNB MetLife Traditional Employee Benefit Plan

Interest on Each Contribution
Motivate Employees
Retain Talent

13.PNB MetLife Superannuation

Group Variable Insurance Plan
Excellence means of Attracting, Retaining quality talent.

14.PNB MetLife Loan and Life Suraksha

Joint Life Option
Increases Loyalty among Customers

15.PNB MetLife Group Term Life Plus

100% of the Sum Assured on Death

Provides Protection to the Family of Employee
Tax Benefit to the Employer
16.PNB MetLife Complete Care Plus
Serves Full Coverage at Reasonable Rate
Availability of Accelerated Benefit Option
Choose from 4 Riders

17.MetLife Bhavishya Plus

Waiver of Premium
Financial Security
Survival Benefits

18.MetLife Easy Super

Reasonable Annual Premium
Auto Rebalance Investment Portfolio
Life Coverage

19.MetLife Endowment Savings Plan

Offers Increase your Savings
Limited or Regular Premium Payment Terms
Tax Benefits

20.MetLife College Plan

Regular Benefit Payouts
Prepare for Childs Education Expenses
Waiver of Premiums-event of Death

21.MetLife Family Income Protector Plus

Guaranteed Monthly Income
Freedom to Choose Benefits
Return of Premiums

22.MetLife Monthly Income Plan-10 Pay

Guaranteed Monthly Income for your Family
Financial Protection
Tax Savings

23.MetLife Immediate Annuity Plan

Financial Security through Regular Income
Cover for Spouse
Create Legacy Creation with Return of Premium.

24.MetLife Retirement Savings Plan
Guaranteed Income for your Golden Years
Part Lump Sum on Maturity
Extend Accumulated Savings

25.MetLife Critical Illness Rider

Additional Health Cover
Flexibility to Meet your Needs
Tax Advantage

26.MetLife Accidental Disability Benefit Rider

Additional Health Cover
Flexibility to Meet your Needs
Tax Advantage

27.MetLife Smart Child

Create Wealth for your Childs Future
Safeguard your Savings from Market Uncertainty
Loyalty Additions(15-20 years term) on Maturity

28.MetLife Accidental Death Benefit Rider Plus

Additional Health Cover
Flexibility to Meet your Needs
Tax Advantage

29.MetLife Grameen Ashray

Death Benefit
Simplified Process
Easy Documentation

30.MetLife Smart One

Stop Loss Option to Protect from Market Downswings
Liquidity with Partial Withdrawals
Tax Benefits

31.MetLife Dhan Samriddhi Plan

Single Premium
Reasonable Charge on Premiums
Loyalty Additions on Sum Assured.

32.MetLife Serious Illness Rider
Additional Health Cover
Flexibility to Meet your Needs
Tax Advantage

2.2 Key Persons

Chief Executive officer Mr. Tarun chug

Chief Marketing Officer Mr. BalachanderSekhar

Appointed Actuary Mr. P K Dinakar

Chief Investment Officer Mr.Sanjay Kumar

Chief of Internal Audit Mr. BishwajitChoudhary

Chief Finance Officer Mr. MSVS Phanesh

Chief Compliance Officer Mr. Vijaya Sanjay Nene

Chief Risk Officer Mr. Anjan Bhattacharya

Financial Performance Analysis

MetLife declared profits of 192crore for the first time in the year ended March 2013 - 2014,
making it one of the few profitable and growing life insurance in India. And since then it is
becoming most of the trusted and growing insurance company in India.


Type Private company
Industry Insurance services
Founded 2001; 16 years ago
Headquarters Mumbai, India
Area served India
Ashish Kumar
Key people Srivastava (Principal
Officer & CEO)
Life Insurance,
Retirement Solutions,

Employee Benefit
Number of

Branches in India 7000

Branches in World 50 countries
Clients in India 3.6+ millions
Clients in World 100 millions




A unit-linked insurance plan (ULIP) is a type of life insurance where the cash value of
a policy varies according to the current net asset value of the underlying investment assets. It
allows protection and flexibility in investment, which are not present in other types of life

insurance such as whole life policies. The premium paid is used to purchase units in investment
assets chosen by the policyholder


Q-o-Q Y-o-Y
Indicators Apr-16 Jan-17 Apr-17
Variation Variation

Economic indicators
Wholesale Price Index (WPI) Inflation (%) -0.5 3.7 5.7 2.0 6.2

Consumer Price Index (CPI) Inflation (%) 4.8 3.4 3.8 0.4 -1.0

Gross Domestic product (GDP Growth) (%) 6.9 7.4 7.0 -0.4 0.1

Index of Industrial Production (IIP) (%) 1.9 5.6 -1.2 -6.8 -3.1

Domestic Markets
Nifty 50 Index 7,850 8,561 9,304 9% 19%

BSE Mid-cap Index 11,043 12,857 14,798 15% 34%

10-year G-Sec Yield (%) 7.4 6.4 7.0 0.6 -0.4

10-year AAA PSU Corporate Bond Yield (%) 8.2 7.4 7.8 0.4 -0.4

30-year G-Sec Yield (%) 7.8 7.0 7.5 0.5 -0.3

Exchange rate (USD/INR) 66.3 67.9 64.2 -5% -3%

Global Markets
Dow Jones (U.S.) 17,774 19,864 20,941 5% 18%

FTSE (U.K.) 6,242 7,099 7,204 1% 15%

Shanghai Stock Exchange Composite Index (China) 2,938 3,159 3,155 0% 7%

Brent crude oil (USD/barrel) 48 56 52 -7% 7%

Source: Central Statistics Organisation (CSO), RBI, Bloomberg

In this data, from APRIL 2016 to APRIL 2017

In Economic Indicators, there is increase in (%) of wholesale price index inflation by 6.2%

And gross domestic product (GDP) by 0.1%.

Whereas decrease in consumer price index inflation and index of industrial production by
1.0% and 3.1% respectively.

In domestic markets, there is huge increase in (%) of Nifty 50 Index and BSE mid-cap index
by 19% and 34% respectively.

Whereas, decrease in 10-year G-Sec Yields and Exchange rate (USD/INR) by 0.4% and 3%

In global markets, there is increase in (%) by 18%, 15%, 7%, and 7%

10-year government bond yield trend

In 10 year government bond yield trend there was 7.5% between May to July 2016 but
since then it starting decreasing and came to 6.2% in November 2016 but then increased to
7.0% by May 2017.

Equity market performance

In this table there is increase in mid cap index by 11,506 to 14,625 from January 2017 to
May 2017

And also increase in nifty index by 7,986 to 9,629 from January 2017 to May 2017.


There are 2 types of fund avaible for the company to manage their funds and these are




Funds that is open for sales to new customer to generate long-term capital appreciation from
an actively managed portfolio of diversified stocks across the market capitalization spectrum.


In asset under management only 3% is under cash and money market. Rest, 97% is under
Equity shares.

The fund will be targeted 100% investment in equities to meet long term capital appreciation
from an actively managed portfolio of diversified stocks across market capitalization


Securities Net assets

Top 10 equity securities

ITC LTD. 6.6%










OTHERS 57.2%

TOTAL 97.0%



In portfolio components among top 10 equity securities highest number of shares is with
others (57.2%) and lowest number of shares is in between Kodakbanking, housing
development and Larsen &tourbo i.e., (2.7%)

And cash and money market share is 3% out of the total portfolio components.


Highest % of share is among financial and insurance activities sector (25%) and lowest % of
share is by civil engineering sector (3%)


Funds that are closed for sales to new customer to generate long-term capital appreciation
from an actively managed portfolio of diversified stocks across the market capitalization


In asset under management only 2% is under cash and money market. Rest, 98% is under
Equity shares.

The fund will be targeted 100% investment in equities to meet long term capital appreciation
from an actively managed portfolio of diversified stocks across market capitalization


Securities Net assets

Top 10 equity securities

ITC LTD. 7.7%










OTHERS 48,3%

TOTAL 97.7%



In portfolio components among top 10 equity securities highest number of shares is with
others (48.3%) and lowest number of shares is in between Kodak banking, housing
development and Larsen & tourbo i.e., (4.2%)

And cash and money market share is 2.3% out of the total portfolio components.


Highest % of share is among financial and insurance activities sector (25%) and lowest % of
share is by civil engineering sector (4%)


1.Strong brand name and good financial
2.Major player in insurance sector
3.Varied range of services and products
4.Has its presence in 60 countries with a
customer base of 90 million
Strengths 5.Over 65,000 employees

1.Over-dependence on US
2.Lacking in global recognition as
Weaknesses compared to competitors

1.Expansion in other countries

2.Diversifying portfolios for customers
3.Acquisitions and JVs
Opportunities 4.New Emerging markets

1.Changing govt regulations and financial

crisis like recessions
2.Natural disasters

3.US financial service sector

Threats 4.Other competitors in the industry





MetLife policyholders who took Credio's survey gave an average rating of 7.96 out of 10
when asked how satisfied they were with the auto insurance coverage options provided by
MetLife. The average rating across respondents from all companies was 7.9 out of 10.

Limitations of the study

Secondary data can be general and vague and may not really help the company with
decision making.
The information and data may not be accurate. The source of the data must always be
The data may be old and out of date
The sample used to generate the secondary data may be small
The company publishing the data may not be repute

Conclusion and Recommendation


Equity as an asset class has not performed in recent months, but as we all know that
equity investments demands time to be spent in market. Thus equity although has not
been able to outperform other asset class but taking a long term view of the market
equity has delivered always.

We can very clearly see in the analysis that debt has over performed and has been able
to give some exemplary returns in the past few months, thus it proves that equity and
debt are inversely related.

We have also analyzed that there are three types of passive strategies in Met life. These
strategies are different from each other and beneficial for different mindset of investors.
All three are able to provide good returns to investor as per their risk appetite.

The analysis also shows that the SBI life is performing far better than Met life and
Aviva in equity and balanced funds category, where in debt fund MetLife as well as
SBI has performed well in comparison to their respective benchmarks; Avivas debt
fund performance has not been satisfactory for the investors.


Equity has always been attractive investment options for all the investors in last few
decades due to its over performing in comparison to other asset class, and in case of
ULIPS the same held true for equity as a class because of its long term view of

MetLife should start introspecting its performance in equity funds as they have
significantly underperformed as compared to other companies.

Met life has some very advanced and customer friendly passive portfolio management
options and they should introduce them in their future products also.

Debt performance has been exemplary for the funds of MetLife, so we can say that they
have been able to manage their debt portfolio well and should keep on doing the same.

My Point of view Regarding
Companys Profile

Reputation of the company is good all over the world.

Wide range of life ,health & retirement insurance products.
Cooperative Staff
Way of interaction to Clients is good.
Different types of plans are available i.e Metlife Endowment
Saving Plan Plus (MESPP), Term Plan, etc.

Working Timings are good

PNB Metlife has as its shareholders Metlife International
Holdings (MIHL), Punjab National Bank Limited (PNB),Jammu
&Kashmir Bank(J&K)

Other privates investors.

It has a trust of IRDA association as it comes under the IRDA

They have many brokers such as NESTKEYS, etc.




There is an evolutionary change in the technology that has revolutionized the entire insurance
sector. Insurance industry is a data-rich industry, and thus, there is a need to use the data for
trend analysis and personalization.
With increased competition among insurers, service has become a key issue. Moreover,
customers are getting increasingly sophisticated and tech-savvy. People today dont want to
accept the current value propositions, they want personalized interactions and they look for
more and more features and add ones and better service
The insurance companies today must meet the need of the hour for more and more
personalized approach for handling the customer. Today managing the customer intelligently
is very critical for the insurer especially in the very competitive environment. Companies need
to apply different set of rules and treatment strategies to different customer segments. However,
to personalize interactions, insurers are required to capture customer information in an
integrated system.
With the explosion of Website and greater access to direct product or policy
information, there is a need to developing better techniques to give customers a truly
personalized experience. Personalization helps organizations to reach their customers with
more impact and to generate new revenue through cross selling and up selling activities. To
ensure that the customers are receiving personalized information, many organizations are
incorporating knowledge database-repositories of content that typically include a search engine
and let the customers locate the all document and information related to their queries of request
for services. Customers can hereby use the knowledge database to manage their products or

the company information and invoices, claim records, and histories of the service inquiry.
These products also may be able to learn from the customers previous knowledge database
and to use their information when determining the relevance to the customers search request.
There is a probability of a spurt in employment opportunities. A number of web-sites
are coming up on insurance, a few financial magazines exclusively devoted to insurance and
also a few training institutes being set up hurriedly. Many of the universities and management
institutes have already started or are contemplating new courses in insurance. Life insurance
has today become a mainstay of any market economy since it offers plenty of scope for
garnering large sums of money for long periods of time. A well-regulated life insurance
industry which moves with the times by offering its customers tailor-made products to satisfy
their financial needs is, therefore, essential if we desire to progress towards a worry-free future

The different portfolio strategies available in ULIPS

An Portfolio strategy is a set of rules, behavior or procedures, designed to guide an

investors selection on a portfolio. Usually the strategy will be designed around the investors
risk-return trade off. Some investor will prefer to maximize expected returns by investing in
risky assets, other will prefer to minimize risk, but most will select a strategy somewhere in
between. Investor does not know how to invest in which fund so that where insurance
companies provides an option for a investor to select a strategy for investment as per his risk

There are two types of strategy in insurance sector:

Passive strategy
Active strategy

Passive strategy: It is a strategy in which an investor invests in accordance with a

predetermined strategy that doesnt entail any forecasting. (E.g. any use of market timing
or stock picking would not qualify as passive management.). The idea is to minimize
investing fees and to avoid the adverse consequence of falling to correctly anticipate the
future. The most popular method is to mimic the performance of an externally specified
index. Retail investors typically do this by buying one or more index funds. By tracking
an index, an investment portfolio typically gets good diversification, low turnover (good
for keeping down internal transaction costs), and extremely low management fees. With

low management fees, an investor in such strategy would have higher returns than a similar
investment but higher management fees and /or turnover /transaction costs.

Active strategy: It is also refers as portfolio management strategy where the manager
makes specific investment with a goal of outperforming an investment benchmark index.
Investors or funds that do not aspire to create a return in excess of the benchmark index
will often invest in an index fund that replicates as closely as possible the investment
weighting and returns of that index; this is called a passive strategy. Active strategy is the
opposite of passive strategy, because in passive strategy the fund manager does not seek to
outperform the benchmark index

Existing portfolio strategies in insurance sector:

I. Fixed portfolio Strategy: In this strategy investor have a option in ulip to allocate his
all saving which he wants to invest in the fund of his choice including a option to
guarantee the highest NAV achieved by his fund

II. Life cycle based portfolio strategy: It is a unique and personalized strategy to create
an ideal balance between equity and debt, based on investors age

III. Trigger portfolio strategy:A unique portfolio strategy to protect gains made in equity
market from any feature equity market volatility while maintaining a pre-defined assets
allocation. It books gains made in equity market and reinvest these gains in the funds
of your choice.

IV. Investor selectable portfolio strategy: In this strategy insurance company offers
allocation of premiums based on investors personal choice and decisions. An investor
can opt any fund or mixture any two or three fund as per his personal choice and

V. Self managed option:Under this strategy an investor can manage his investment by
choosing among the six unit linked option available in met life India. In this strategy
investor has an option of switching among various funds & may choose premium
redirection for his future premiums depending on his changing risk appetite and market

VI. Systematic transfer option: This is an strategy allows an investor to make the most of
market volatility by taking the advantage of rises and falls in the market with the benefit
of rupee cost averaging. In this strategy 50% of annualized premium is been invest in
protector II fund and rest of fund will be as per investors choice and this fund which is
been kept in protector II will be systematically transferred from protector II to flexi cap
as per market volatility. If market rises the fund systematically transferred to flexi from
protector II & if market falls then the MR.X funds transfer to Protector II from flexi

VII. Auto rebalancing option: Auto rebalancing is strategy which helps an investor with
his investment, in this strategy the investment proportion of investor will automatically
rebalanced as per market conditions. Under this option, the capital is only invested in
two funds i.e. flexi cap & protector II. In this strategy a trigger level has been created
for e.g. if a investor opt for 10% of total fund as a trigger level then any increase
ordecrease in total fund value of a investor will rebalance the ratio of flexi cap &
protector fund which was at the time of inception.

Example of met life portfolio strategy:

Suppose there is a MR. X, he is willing to invest 5, 00,000 in ulip funds with a purpose of
investment. The risk appetite of investor was medium. Investor was willing to invest for his
better retirement, so an advisor helps him with a met smart platinum where MetLife was
offering a wealth creation & a protection under this plan with offering to select any fund or any
mix of debt & equity under this plan with different portfolio strategies like self managed option,
auto rebalancing , systematic transfer option.

Lets understands the portfolio strategies of met life:

Self managed option: under this strategy met smart platinum offer to MR. X the choice of 6
unit linked funds for investment based on MR. X propensity to take risk. MR.X may choose to
invest his premium in these unit linked funds in any proportion aggregating to a total of 100%
subject to a minimum allocation in chosen funds not being less than 20%.

In this strategy MR. X can mange his investment by himself. He can choose any fund which
suits him better at any point of time in a policy year or switch to any fund in between of policy

Systematic transfer Option: under this plan, STO allows to MR. X to make the most of market
volatility by taking the advantage of rises and falls in the market with the benefit of rupee cost

This option can be taken by MR.X at time of policy inception or during the term of the policy.
If MR.X chooses STO option, then the premium allocation percentage should be at least 50%
of annualized premium in protector II fund and then this protector fund systematically
transferred from protector II to flexi cap as per the market volatility. If market rises the fund of
MR.X systematically transferred to flexi from protector II & if market falls then the MR.X
funds transfer to Protector II from flexi cap.

So, this option provides the flexibility to MR.X to take an advantage of market volatility to
appreciate his capital.

Auto rebalancing option: Auto rebalancing is strategy which helps an investor with his
investment, in this strategy the investment proportion of investor will automatically rebalanced
as per market conditions. Under this option, the capital is only invested in two funds i.e. flexi
cap & protector II. In this strategy a trigger level has been created for e.g. if a investor opt for
10% of total fund as a trigger level then any increase or decrease in total fund value of a investor
will rebalance the ratio of flexi cap & protector fund which was at the time of inception.

This option suits to MR.X if he wants to manage his investment portfolio directly on the regular
basis. Under this option, MR.Xs funds are allocated in flexi cap fund and protector II fund in
the proportion as per MR.Xs choice which he can exercise at the time of opting for auto
rebalancing option. In case of any market movement, to a level as specified by him, the mix
of flexi cap fund & protector II fund is automatically rebalanced to the ratio chosen by MR.X
at inception of this option.

As this strategy works on trigger level, MR.X has 4 rebalancing option available with met life:

10% of the total fund value

15% of the total fund value

20% of the total fund value
25% of the total fund value

These are three portfolio strategies which an financial advisor of Met life has offered to MR.X.
These three strategies are been different among themselves. Every strategy has their own
benefit depends on investors risk appetite and market knowledge.



1.Cases of met life India

2.Books of Insurance institute of India


1.Times of India

2.India express




Head of the Organization : Mr. Pawan Rastogi

Supervisor : Mr. Rakesh Sharma

Contact Number : 9811479561

Email Id :