Bajaj Allianz Life Insurance Co. Ltd.

Nine months ended December 07

Bajaj Allianz Life Insurance Co. Ltd.

28th January 2008


28th January 2008 2 . Ltd.Index Key Highlights :: Nine months ended December 07 Key Highlights Nine months ended December 07 BALIC – Growth in New Business BALIC – Growth in New Business Investment Overview Investment Overview NBAP – Nine months ended December 07 NBAP – Nine months ended December 07 Bajaj Allianz Life Insurance Co.

798 33. of Policies YTD Dec '07 500 52.562 Growth 224% 93% 73% 132% 155% - *Annualised Premium = 100% Regular Premium +10% Single Premium Bajaj Allianz Life Insurance Co.496 YTD Dec '06 (402) 27.841 14.614 926.350 37.895 2. 28th January 2008 3 .362.088 21.Key Highlights INR Mln Parameters Shareholder & Policyholder Surplus/Deficit Gross Written Premium New Business Premium Annualised Premium* (APE) No. Ltd.

28th January 2008 4 .Indian Private Life Insurance Market – Annualised Premium & NB Policy Annualised Premium YTD Dec ‘07 New Business Policy ICICI Prudenti al 27% Bajaj Allianz 21% Bajaj Allianz 30% ICICI Prudential 23% SBI Life 9% HDFC Standard Reliance 9% Life 7% Others 26% HDFC Standard 7% Reliance Life 7% Max New York 7% Others 27% BALIC’s share has improved to 21% from 17% at end of YTD December 06 BALIC is at No. Ltd. 1 position as at YTD December ‘07 in terms of New Business Policy issuance Source : IRDA New Business Report *Annualised Premium = 100% Regular Premium +10% Single Premium Bajaj Allianz Life Insurance Co.

Investments Overview – December 2007 INR Mln Asset Under Management Shareholders Trad Policyholders Unit Link Total Shareholder & Policyholder Current yield (annualised) 31st Dec 07 9.051 51.868 67.537 9.456 31st Mar 07 7% 86% growth in Asset Under Management in Dec ’07 as compared to Mar ’07 Bajaj Allianz Life Insurance Co.925 125. 28th January 2008 5 .792 31st Dec 07 8% 31st Mar 07 6.017 101.850 14. Ltd.

Risk margin varies from company to company depending on the risk margin required over and above the risk free rate. 28th January 2008 6 . To review the profitability of the products and take internal action. Bajaj Allianz Life Insurance Co. To decide the sales payouts of the sales teams. Definition The New Business Achieved Profit is the present value (using Risk Discount Rate ) of all future profits (net of tax) arising from sale of new contracts during the reporting period. the discounted value of all future profit is calculated using actuarial projections. To appraise the management performance and determine their incentives.New Business Achieved Profit (NBAP) Nine months ended December 07 Introduction: As Life Insurance contract is a long-term contract. for the shareholders. Ltd. Objective: To place value on Company. Keeping in view the requirement to estimate the expected profit from an insurance policy. on best estimate assumptions. Risk discount rate = Risk free rate + risk margin. after allowing for the cost of capital. the profit or loss at policy level takes many years to emerge.

5% (plus 10% surcharge +3% education cess) Operating Assumptions . 28th January 2008 7 .50% 12. morbidity and lapses are based on industry / reinsures experience and validated against our own experience so far.00% 8. Bajaj Allianz Life Insurance Co.454 million Economic Assumptions Particulars Cash/Money Market/TB G Secs Corporate Bond Equities Inflation Risk Discount Rate Tax rate Assumptions 5.00% 13.Operating assumptions like mortality.Expense assumptions are based on our own expense projection model.00% 5. Ltd.25% 12.New Business Achieved Profit (NBAP) (contd …. .) New Business Achieved Profit INR 7.00% 8.

454 7.Sensitivity New Business Achieved Profit (NBAP) (contd ….068 6. 28th January 2008 8 .641 -1% 6.788 8. The proportion of riders with base policies is insignificant.373 Further Consideration .454 +1% 8.Any value addition from riders has been ignored. Ltd. .) INR Mln The sensitivity of the New Business Achieved Profit to Economic assumptions is given below: Particulars Investment Income Risk Discount Rate Base Value 7. in the absence of any common agreed process Bajaj Allianz Life Insurance Co.Comparison with companies could be misleading as actuarial assumptions and methodology used are likely to vary from Company to Company.

Cautionary Statements Except for the historical information contained herein. but not limited to. 28th January 2008 9 . certain statements & values are forward–looking statements & values including. plans or objective. statements & values that are predictions of or indicate future events. they are subject to known and unknown risks and uncertainties and can be affected by numerous factors that could cause actual results to differ materially. Ltd. Undue reliance should not be placed on such statements & values because by their nature. Bajaj Allianz Life Insurance Co. trends.

Ltd.Thank You Bajaj Allianz Life Insurance Co. 28th January 2008 10 .