An Organizational Study of Bharti-AXA Life Insurance Co. Ltd. & Risk Analysis of Bharti-AXA Life Insurance ULIP Funds – A Study This Industrial Training Report is submitted in partial fulfillment of the requirements for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION of BANGALORE UNIVERSITY This training has been undertaken by Naina Monica Pranesh Lazarus Reg. No. 09VWCMA056 Under the guidance and support of
Poonam Nam Joshi Professor Alliance Business Academy M S Dilip Agency Manager Bharti-AXA Life Insurance



Batch: 2009-2011


I, Naina Lazarus, studying at Alliance Business Academy, hereby state that this industrial training report titled “Risk Analysis of Bharti-AXA Life Insurance ULIP Funds - A Study” carried out at Bharti-AXA Life Insurance Co. Ltd., is submitted in partial fulfilment of the requirement of the MBA Program of Bangalore University, is an original work carried out by me under the guidance and supervision of Poonam Nam Joshi, faculty guide & M S Dilip, industry guide, and that the project or any part thereof has not been previously submitted for a degree/diploma of any University/ Institution elsewhere.

Date: 20th August 2010 Place: Bangalore Naina Lazarus Reg. No. 09VWCMA056



The satisfaction that accompanies the successful completion of task would be incomplete without the mention of the people who have made it possible and whose consent, guidance and encouragement served as a guiding light for the completion of the study.

I would like to express my profound sense of gratitude to Prof. Sudhir Angur, President, Alliance Business Academy for providing constant source of inspiration and the support to conduct this research. I would also like to thank Prof. Prabhakaran and Prof. Rajasekhar for providing constant source of inspiration and the support to conduct this research.

With a deep sense of gratitude, and indebtedness, I sincerely & whole-heartedly thank Mr. M S Dilip (Agency Manager) and Mrs. Latha Balasubramanian (Branch Head), Bharti-AXA Life Insurance Co. Ltd. for giving me an opportunity to conduct this study & for being a guiding factor in all the steps of my internship and report, which has been a rewarding experience.

I would like to thank my guide, Prof. Poonam Nam Joshi and our program manager Prof. Smitha Shenoy for their continuous guidance and support in bringing out this project.

I also express my deep gratitude to my family and friends, whose cooperation, wishes and help, have made this project possible.


2 COMPANY PROFILE Introduction Functional Departments 3 3. Topic Page No.Naina Lazarus TABLE OF CONTENTS Chapter No.3 RESEARCH DESIGN Statement of the Problem Title of the Study Objectives of the Study 4 .1 3.2 3.1 1. EXECUTIVE SUMMARY 1 1.2 INDUSTRY PROFILE Overview of the Indian Economy Insurance Industry 2 2.1 2.

4 3.5 3.1 5.3.6 Scope of the Study Operational Definitions Research Methodology 4 4.3 FINDINGS.2 DATA ANALYSIS Introduction Analysis and interpretation 5 5.1 4. SUGGESTIONS & CONCLUSION Summary of Findings Suggestions Conclusion MY LEARNING BIBLIOGRAPHY ANNEXURE 5 .2 5.

Particulars Page No.5a Table showing range of returns for Save ‘n’ Grow Money Fund 4. VaR & maximum loss for Steady Money Fund 4.4b Table showing calculation of Value at Risk (VaR) Table showing conversion of VaR to a different time period Table showing range of returns for Steady Money Fund Table showing frequency distribution for Steady Money Fund 4.5c 4.1 Table showing asset allocation & risk-return potential of the different funds 4.6a Table showing SD.LIST OF TABLES Sl.4c Table showing SD. 4.3 4.2 4. No. VaR & maximum loss for Save ‘n’ Grow Money Fund Table showing range of returns for Safe Money Fund 6 .4a 4.5b Table showing frequency distribution for Save ‘n’ Grow Money Fund 4.

8c 4.7b Table showing frequency distribution for Grow Money Plus Fund 4.8a 4.4.6c Table showing frequency distribution for Safe Money Fund Table showing SD. VaR & maximum loss for Safe Money Fund 4.8b 4.9b Table showing range of returns for Growth Opportunities Plus Fund Table showing frequency distribution for Growth Opportunities Plus Fund Table showing SD.9c Table showing SD.6b 4. VaR & maximum loss for Build India Fund 7 . VaR & maximum loss for Grow Money Plus Fund 4.7a Table showing range of returns for Grow Money Plus Fund 4.7c Table showing SD. VaR & maximum loss for Growth Opportunities Plus Fund Table showing range of returns for Build India Fund Table showing frequency distribution for Build India Fund 4.9a 4.

2 2.1 2.5 8 .2 4.1 2.3 4. 1.1 Graph showing the distribution of daily returns of Steady Money Fund Graph showing the distribution of daily returns of Save ‘n’ Grow Money Fund Graph showing the distribution of daily returns of Safe Money Fund 4. 4.LIST OF CHARTS/GRAPHS Sl.4 Graph showing the distribution of daily returns of Grow Money Plus Fund Graph showing the distribution of daily returns of Growth Opportunities Plus Fund 4.3 Chart showing the market share of Life Insurance Companies in India Chart showing the organisation structure Chart showing the recruitment process Chart showing the sales process Page No. Particulars No.

In addition to the study on risk analysis of the ULIP funds. It included the study of various departments. the study was conducted to know the various functional areas of the organization. However. The stay in the 9 .global leader in financial protection and wealth management. the Company launched its operations in India. At present. products of Bharti AXA Life Insurance. is a joint venture between Bharti . Bharti AXA Life Insurance Co. The study is done keeping the policies of Bharti AXA Life in of India’s leading business groups and AXA . off late the role of insurance has widened. Bharti AXA Life Insurance has a 74% stake from Bharti and 26% stake of AXA in the joint venture.4. Bharti AXA Life Insurance is making itself proactive to cater to insurance and wealth management needs of people. From a mere life protection provider it has evolved into an institution which tries to meet different financial requirements of customer. In December 2006. With the continuous expansion. Ltd. Investment is one such need.6 Graph showing the distribution of daily returns of Build India Fund EXECUTIVE SUMMARY The insurance companies. it has more than 5200 employees working over 12 states in the country. competitors. from a long time have been considered as a place where people pay premium from a view point of its safety & earning returns over the premium paid after the policy has matured. This report deals with the different functions a life insurance company performs which act as a facilitator for investors.

thus investment should be made with care in the equity. 10 . On the other hand. An investor can easily achieve this. Fund manager should be very careful about the asset allocation as it has a great impact on the fund’s performance. three are equity funds. since there has been an increase in the cost of living. The investment goals of the clients are varied and thus it is a challenge of the distribution service to meet the investors expected returns irrespective of the market conditions. a debt fund or a balanced fund. restrictions. be it an equity fund. Out of this. which means the risk involved is very high. two are debt funds and remaining one is a balanced fund. investors should start saving early so as to get maximum returns. which means that both these instruments are safe to invest in. from January to June 2010. The insurance companies should have a well-trained customer care cell for all the customer grievances. if right investment is made in the right kind of funds thus ensuring that the right portfolio would help an investor to trade off between risk and return. So the study may not hold good for all the time.organization equipped with an in-depth knowledge of insurance as an investment avenue. process and other aspects. Lastly. The data encompassing the performance of various funds was limited to six months. as well as sector-wise allocation had a great impact on performance of the fund. The portfolio allocation. its benefits. standard deviation of debt and balanced funds was low. The study was an analytical study with a sample size of six different types of funds under Bharti AXA ULIP plans. Descriptive statistics revealed that the equity had the highest standard deviation.


and a strong manufacturing and export oriented industrial framework. There have been a number of causes behind growth of Indian economy in the last couple of years. India. A number of market reforms have been instituted by the Indian government and there has been significant amount of foreign direct investment made in India. has benefited immensely from outsourcing of work from developed countries.1. Much of this amount has been invested into several businesses including knowledge process outsourcing industries.1.1 OVERVIEW OF THE INDIAN ECONOMY 1. being a cost effective and labour intensive economy.1 INTRODUCTION India is an emerging economy and has witnessed unprecedented levels of economic expansion. India’s foreign exchange reserves have gone 12 . With the economic pace picking up. global commodity prices have staged a comeback from their lows and global trade has also seen healthy growth over the last two years.

561 trillion in 2009. This was an increase from $2. India’s educated and English speaking population became the biggest impetus that the economy needed. However. The official exchange rate GDP was $1. Capital markets are doing pretty well too. India ranked fifth in the world in terms of its purchasing power. Growing domestic demand and increased production have changed the Indian economy. All these factors have contributed to the growth of the Indian economy. 1. Trade has risen by more than 375% since the adoption of the liberalization policies. 13 . India’s world ranking was 164 due to its high variance in income and disparate wealth distribution. a) GDP India’s gross domestic product (purchasing power parity) was $3.344 trillion in 2008 and $3.095 trillion in 2009 with per capita GDP at $3.GDP has picked up.113 trillion in 2007.900 in 2008 and $2.1.up in the last few years.100.800 of 2007. trade has become global and the services sector has led change by throwing its gates open to outsourcing. It was up from $3. Real estate sector as well as information technology industries have taken off.2 INDIAN ECONOMIC INDICATORS Indian economic indicators are pointing towards the country’s transition to a developed economy.

6% in 2009. inflation has been a cause of concern.8% and agriculture added 15.3 billion in 2009. while industry generated 20% and agriculture pitched in 17.3% in 2008. compared to the low growth of 2% achieved during the 14 .4% and 9% in 2008 and 2007. b) Inflation Through a strict credit policy and stringent fiscal arrangements.5% of the total jobs. The 2009 figure confirmed inflation at 10. respectively. up from 8. Services kept its position as the biggest employer as well for the huge workforce of 467 million people.Real GDP growth was 6.6%.7%.4% of the total GDP. With FDI growing from $123. With industrial growth at 7.4% in January 2010. which contributed 58. However. Services employed 62. c) FDI The modern and liberalized Indian economy is a hotspot for FDI (foreign direct investment). d) Core Infrastructure Growth in the overall core infrastructure sector increased from 3.5% in 2009. down from 7. Every year the volume seems to grow larger and 2009 was no exception. The largest contribution towards GDP came from the services sector. The industry sector contributed 25.8% to the GDP. the Indian economy has become the favourite spot for global investors to hedge their investments and make profits in an economy where disposable income is rising steadily. India ranked as the twelve most progressive countries in the world. India could somewhat evade the recession.8% in October 2009 to 9.4 billion in 2008 to $161.

e) Fiscal Trends With an increase of 17%. the fiscal deficit increased moderately at the rate of 33% and went up from $58 billion to $77 billion during April-January 2009-10. acceleration in growth was seen in all the six core industry sectors. was less than the $286 billion achieved in the previous month of 2009. the total expenditure incurred by the government grew from $150 billion during the period April-January 2008-09 to $175 billion in the current fiscal. The forex. The rise in portfolio investments was particularly due to an increase in FII investments.5 billion. compared to negative $11 billion in the previous year. the figures have also showed an increase of 5% during the same period. In case of revenue receipts. the forex was at $283. Portfolio investments came in at $23. 15 . f) Foreign Investments Foreign direct investment accumulated during the April-December period of 2009-10 stood at $26.corresponding months of the previous year.6 billion.5 billion. g) Foreign Exchange Reserves India's reserves as of March 2010 are at above $280 billion. which was $2 billion higher than what was achieved previously. In January 2010. In December 2009. increasing from $251 billion in April 2009. As a result. at $283 billion.

2. Insurance is defined as the equitable transfer of the risk of a loss. from one entity to another.7% from 10. which compensates the few who suffer losses.1 MEANING OF INSURANCE Insurance is a form of risk management primarily used to hedge against the risk of a contingent. uncertain loss. the Indian administration is keen on encouraging privatization and improving the employment scenario. Insurance is based on the law of large numbers. 1.2 INSURANCE INDUSTRY 1. All who are exposed to a risk or a peril contribute a relatively small sum to a common pool. 16 . Privatization will also attract FDI that can help in structural improvements and thus trigger growth. in exchange for payment. The unemployment rate grew in 2009 to 10.The issues weighing down on the Indian economy are its unemployment rate and a rather constant poverty rate. In order to combat this.4% in 2008 and almost 25% of the population lives under the poverty line.

TYPES OF INSURANCE Insurance is generally classified into three main categories: 1. Life Insurance 2.An insurer is a company selling the insurance. Insurance cannot arrest the risk from taking place. The insured receives a contract called the insurance policy which details the conditions and circumstances under which the insured will be compensated. by apportioning the risk with others.2 FUNCTIONS OF INSURANCE a) PRIMARY FUNCTIONS Providing protection – The elementary purpose of insurance is to allow security against future risk. Health Insurance 3. but can for sure allow for the losses arising with the risk. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage. called the premium.2. The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate insured in the case of a large. General Insurance 1. 17 . an insured or policyholder is the person or entity buying the insurance policy. accidents and uncertainty. Insurance is in reality a protective cover against economic loss. possibly devastating loss.

Provide Certainty – Insurance is a device.Collective risk bearing – Insurance is an instrument to share the financial loss. b) SECONDARY FUNCTIONS Preventing losses – Insurance warns individuals and businessmen to embrace appropriate device to prevent unfortunate aftermaths of risk by observing safety instructions. It is a medium through which few losses are divided among larger number of people. This is done by paying small amount of premium against larger risks and dubiety. installation of automatic sparkler or alarm systems. c) OTHER FUNCTIONS 18 . All the insured add the premiums towards a fund. which assists in changing uncertainty to certainty. Helps in the development of larger industries – Insurance provides an opportunity to develop to those larger industries which have more risks in their setting up. Evaluating risk – Insurance fixes the likely volume of risk by assessing diverse factors that give rise to risk. out of which the persons facing a specific risk is paid. Covering larger risks with small capital – Insurance assuages the businessmen from security investments. etc. Risk is the basis for ascertaining the premium rate as well.

they become a risk or. restricting unnecessary expenses by the insured. 1. Also to take the benefit of income tax exemptions. making foreign trade risk free with the help of different types of policies under marine insurance cover. any country can earn foreign exchange by way of issue of marine insurance policies and a different other ways. people take up insurance as a good investment option. Speculative or Dynamic Risk 2. But if they come together. there are basically two categories of risks: 1. investing in stocks/bonds and 19 .3 RISKS ASSOCIATED WITH INSURANCE SECTOR As we all know Risk is the probability that a hazard will turn into a disaster. in other words. Vulnerability and hazards are not dangerous. Medium of earning foreign exchange – Being an international business. TYPES OF RISKS With regards to insurability. taken separately. Examples of speculative risks are betting on a horse race.Is a savings and investment tool – Insurance is the best savings and investment option. Risk Free trade – Insurance boosts exports insurance.2. Pure or Static Risk Speculative or Dynamic Risk Speculative (dynamic) risk is a situation in which either profit OR loss is possible. the probability that a disaster will happen.

and damage to property due to fire. Pure or Static Risk The second category of risk is known as pure or static risk. every business establishment faces decisions that entail an element of risk. lightning. The outcome of such speculative risk is either beneficial (profitable) or loss. commit more to advertising. In the business level. in the daily conduct of its affairs. and the elimination of financial 20 . occupational disability. never beneficial. The only outcome of pure risks are adverse (in a loss) or neutral (with no loss). diversify on the existing product line. They involve the possibility of loss or reduction of income. or flood. carry risks inherent to the business. Types of Pure Risk The major types of pure risk that are associated with great economic and financial insecurity include: 1. Pure (static) risk is a situation in which there are only the possibilities of loss or no loss. Personal risk 2. etc. as oppose to loss or profit with speculative risk. Speculative risk is uninsurable.real estate. The decision to venture into a new market. catastrophic medical expenses. purchase new equipments.. of extra expenses. Examples of pure risks include premature death. expand or contract areas of operations. Liability risk Personal risks are risks that directly affect an individual. Property risk 3. borrow additional capital.

In cases of severe long term disability. or children to educate. Regardless of the cause. there is a substantial loss of earned income. seasonal factors and frictions in the labour market. When older workers retire. Old age is a risk of insufficient income during retirement. they lose their normal amount of earnings. employee benefits may be lost. a mortgage to be paid off. The risk of unemployment is another major threat to most families. These can include dependents to support.assets. they would be facing a serious problem of economic insecurity. There are four major personal risks: • • • • Premature death Old age Poor health Unemployment Premature death risk is defined as the risk of the death of the head of a household with unfulfilled financial obligations. and savings depleted. economic changes. The loss of income is another major cause of financial instability. Risk of poor health includes both catastrophic medical bills and the loss of earned income. Unemployment can be the result of an industry cycle downswing. The cost of health care has increased substantially in recent years. Unless they have accumulated sufficient assets from which to draw on. unemployment can create 21 . medical bills are incurred.

Liability risks are another important type of pure risk that many people face. havoc in the average families by way of loss of income and employment benefits. analyses & quantifies the financial impact of various risks involved in running a business. be it to mitigate. One has to defend himself when sued. risks can be reduced or managed. windstorms. Nevertheless. lightning. there has been significant progress in developing and formalizing these processes and even in using them for regulatory purposes. Risk management is not a new concept in life insurance and many of the basic principles are as old as the insurance industry itself. transfer or allocate capital to the risk. Property loss can occur as a result of fire. It is a tool that recognizes the potential threats to the business’s objectives and allows management to make informed decisions on the appropriate course of action. More than ever. 22 . However. classifies. over recent years. we are living in a litigious society. The majority of companies already have some form of risk management process in place. Property risk is the risk of having property damaged or loss from numerous perils. ‘Risk Management’ is an integrated process that identifies. even when the suit is without merit. and a number of other causes. One can be sued for any frivolous reason.

These long-term savings are made in an easy and hassle-free manner because of low and convenient installments (or premiums). While most investment options make a person’s money work harder. life insurance gives various benefits. life insurance proceeds can be used to provide equal assets to other family members Apart from these there are also Investment advantages to the Insurance. That's because when a person takes up a life insurance policy. car loans or charge account balances. They are as follows: • Income for Family Life: Insurance proceeds ensure a source of financial security for your family to meet its household and living expenses. the proceeds from a life insurance policy can be used to meet outstanding debts such as mortgages. they are no substitutes to life insurance.1. • Equalize Inheritance: When an asset such as the family business passes on to family members who are active in it.2. • Life insurance enables a person to enjoy savings that guarantee full protection against the risk of death of the insured.4 BENEFITS OF LIFE INSURANCE Depending on its usage. he enjoy the twin benefit of risk protection as well as returns on savings. • Payment of Debts: On the unfortunate death of the insured. 23 . • Provide Education Funding For Children: The cash value of a whole life insurance policy can be used to help accumulate funds for the higher education of insured’s children.

• Life insurance also encourages 'forced thrift'. some life insurance policies also allow saving on taxes 1. the business of Indian life insurance started in the year 1818. IMPORTANT MILESTONES IN THE INDIAN LIFE INSURANCE BUSINESS With the establishment of the Oriental Life Insurance Company in Kolkata. which he/she might not do in the regular course of life. 1928: The Indian Insurance Companies Act was enacted for enabling the government to collect statistical information on both life and non-life insurance businesses. 24 .5 BRIEF HISTORY OF INDIAN INSURANCE SECTOR The insurance sector in India has completed all the facets of competition – from being an open competitive market to being nationalized and then getting back to the form of a liberalized market once again. The history of the insurance sector in India reveals that it has witnessed complete dynamism for the past two centuries approximately. 1912: The Indian Life Assurance Companies Act came into force for regulating the life insurance business.2. I. This means that the insured is made to pay his/her premiums by saving his/her money. What's more. should he require money to meet any unforeseen expenditure. • Some life insurance policies often allow insured to take loans against his policy.

LIC Act. IMPORTANT MILESTONES IN THE INDIAN GENERAL INSURANCE BUSINESS The history of general insurance business in India can be traced back to Triton Insurance Company Ltd. viz.. It started off with a capital of Rs. the Oriental Insurance 25 . 1972: The General Insurance Business (Nationalization) Act. 1972 nationalized the general insurance business in India. (the first general insurance company) which was formed in the year 1850 in Kolkata by the British. 107 insurers integrated and grouped into four companies. framed a code of conduct for guaranteeing fair conduct and sound business patterns.. 1956: 245 Indian and foreign insurers and provident societies were taken over by the central government and they got nationalized. It was with effect from 1st January 1973. viz.1938: The earlier legislation consolidated the Insurance Act with the aim of safeguarding the interests of the insuring public. the New India Assurance Company Ltd. II. 1957: General Insurance Council. 1968: The Insurance Act improved for regulating investments and set minimal solvency levels and the Tariff Advisory Committee was set up. an arm of the Insurance Association of India. 1956. the National Insurance Company Ltd. LIC was formed by an Act of Parliament. was set up which was the first company of its type to transact all general insurance business. 5 crores and that too from the Government of India. 1907: The Indian Mercantile Insurance Ltd.

This committee was also in charge of recommending the future path of insurance in India. In 1994. GIC was incorporated as a company.6 INDIAN INSURANCE SECTOR REFORM The formation of the Malhotra Committee in 1993 initiated reforms in the Indian insurance sector. 26 • . The recommendations of the committee put stress on offering operational autonomy to the insurance service providers and also suggested forming an independent regulatory body. 1. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. making them more appropriate and effective for the Indian market. The aim of the Malhotra Committee was to assess the functionality of the Indian insurance sector. The Malhotra Committee attempted to improve various aspects of the insurance sector. All the insurance companies should be given greater freedom to operate. the committee submitted the report and some of the key recommendations included: 1) Structure • • Government stake in the insurance Companies to be brought down to 50%.Company Ltd. and the United India Insurance Company Ltd.2.

2) Competition

Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry. No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance should be allowed to operate in the rural market. Only One State Level Life Insurance Company should be allowed to operate in each state.

• •

3) Regulatory Body
• • •

The Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance (Currently a part from the Finance Ministry) should be made independent.

4) Investments

Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time).

5) Customer Service
• •

LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans.


Computerisation of operations and updating of technology to be carried out in the insurance industry The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition.

But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.

Insurance sector has been opened up for competition from Indian private insurance companies with the enactment of Insurance Regulatory and Development Authority Act, 1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and Development Authority (IRDA) was established on 19th April 2000 to protect the interests of holder of insurance policy and to regulate, promote and ensure orderly growth of the insurance industry. IRDA Act 1999 paved the way for the entry of private players into the insurance market which was hitherto the exclusive privilege of public sector insurance companies/ corporations. Under the new dispensation Indian insurance companies in private sector were permitted to operate in India with the following conditions:

Company is formed and registered under the Companies Act, 1956;


The aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed 26%, paid up equity capital of such Indian insurance company;

The company's sole purpose is to carry on life insurance business or general insurance business or reinsurance business. The minimum paid up equity capital for life or general insurance business is Rs.100 crores. The minimum paid up equity capital for carrying on reinsurance business has been prescribed as Rs.200 crores.

1.2.8 IRDA
The Insurance Regulatory and Development Authority Act of 1999 brought about several crucial policy changes in the insurance sector of India. It led to the formation of the Insurance Regulatory and Development Authority (IRDA) in 2000. The Authority has its Head Quarters at Hyderabad. The Authority is a ten-member team consisting of a. Chairman; b. five whole-time members; c. four part-time members All these positions are appointed by the Government of India.

The goals of the IRDA are to safeguard the interests of insurance policyholders, as well as to initiate different policy measures to help sustain growth in the Indian insurance sector.


promote and ensure orderly growth of the insurance business and re-insurance business. Investment and Accounting Procedure. suspend or cancel such registration. promote and ensure orderly growth of the insurance business and re-insurance business. the Authority shall have the duty to regulate. 2000 for issue of the Certificate of Registration to both life and non-life insurers. Subject to the provisions of this Act and any other law for the time being in force. 1999 lays down the duties. powers and functions of IRDA. Solvency Margin. protection of the interests of the policy holders in matters concerning assigning of policy. modify. Obligation of Insurers to Rural and Social sector. 2. Regulation on insurance agents. Applications were invited by the Authority with effect from 15th August. 1. powers and functions of IRDA 1. 1999 lays down the duties. Subject to the provisions of this Act and any other law for the time being in force. the powers and functions of the Authority shall include. Protection of policy holders' interest etc. POWERS AND FUNCTIONS OF IRDA Section 14 of IRDA Act. nomination by policy holders. Re-insurance. insurable 30 . In 2010. withdraw. issue to the applicant a certificate of registration. renew.The Authority has notified 27 Regulations on various issues which include Registration of insurers. and not the market regulator Securities and Exchange Board of India Section 14 of IRDA Act. Without prejudice to the generality of the provisions contained in subsection (1). the Government of India ruled that the Unit Linked Insurance Plans (ULIPs) will be governed by IRDA. the Authority shall have the duty to regulate. 2. DUTIES.

undertaking inspection of. 11. 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 intermediaries. 8. promoting and regulating professional organisations connected with the insurance and re-insurance business. 3. control and regulation of the rates. calling for information from. settlement of insurance claim. insurance intermediaries and other organisations connected with the insurance business. 15. 10. surrender value of policy and other terms and conditions of contracts of insurance. levying fees and other charges for carrying out the purposes of this Act. specifying the code of conduct for surveyors and loss assessors. advantages. 7. 1938 (4 of 1938). regulating investment of funds by insurance companies. promoting efficiency in the conduct of insurance business. adjudication of disputes between insurers and intermediaries or insurance intermediaries. regulating maintenance of margin of solvency. 14. 9. 13. specifying requisite qualifications. 4. code of conduct and practical training for intermediary or insurance intermediaries and agents. intermediaries. 5. supervising the functioning of the Tariff Advisory Committee. 6. 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. specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organisations referred to in clause (f).interest. 12. conducting enquiries and investigations including audit of the insurers. 31 .

 According to IRDA. LIC held 65 per cent market share in terms of new business income collection with the private sector contributing the remaining 35 per cent share in 2009-10. and as Indians become 32 . while private players posted a 47 per cent growth in new business premium.55 million new policies in 200910 with LIC selling 8. with several national and international players competing and growing at rapid rates. an increase of 25.52 million and private companies 2.64 billion.16.93 billion mark.  Moreover.  Life Insurance Corporation of India (LIC) registered an 83 per cent increase in new business income in March 2010. and growing at a rapid pace of 32-34 per cent annually.46 per cent over US$ 19.64 billion collected in 2008-09. India insurance is a flourishing industry. exercising such other powers as may be prescribed 1. and 17. according to IRDA.9 PRESENT SCENARIO OF THE INDUSTRY  The US$ 41-billion Indian life insurance industry is considered the fifth largest life insurance market. At the end of March 2010. insurers sold 10.  A growth of 18 per cent is expected in total premium income and is likely to cross the US$ 64. the Indian insurance sector been allowed to flourish.03 million policies.2. according to the Life Insurance Council. specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector. Thanks to reforms and the easing of policy regulations. total premium collected in 2009-10 was US$ 24.

With the opening up of the economy. and annuities. with the period from 2010 . this growth can only increase. joint life policies. group insurance policies.more familiar with different insurance products. b.6 per cent from 2002–03 to 2008–09 to reach US$ 52. General insurance plans are also available to cover motor insurance. unit-linked insurance plans. more and more insurance companies are now emerging in the Indian insurance sector. in 2000 to 23 and 22. • The number of insurance players has increased from four and eight in life and non-life sectors.6 billion in 2008–09. travel insurance and health insurance. Due to the growing demand for insurance. whole life policies. endowment policies. The most common types include: term life policies. The total premium of the insurance industry has grown at a CAGR of 24. respectively. loan cover term assurance policies. Indian insurance companies offer a comprehensive range of insurance plans. home insurance. as on January 2010. GROWTH DRIVERS 33 . a. a range that is growing as the economy matures and the wealth of the middle classes increases. MARKET OVERVIEW • • The insurance industry in India is at an early stage with low penetration and high potential. respectively. pension plans.2015 projected to be the 'Golden Age' for the Indian insurance industry. several international leaders in the insurance sector are trying to venture into the India insurance industry.

There is a high demand for insurance products due to a growing middle class, increasing working population, rising household savings and increasing purchasing power.

• • •

Penetration levels set to increase The increasing literacy rate, especially in rural India, has spread awareness about the need for insurance. Between 2006 and 2026, the working population (25–60 years) is expected to increase from 675.8 million to 795.5 million giving rise to a favourable market for insurance companies.

• •

Projected per capita GDP is expected to increase from US$ 380.8 in 2000–2001 to US$ 2,097.5 in 2026, reflecting higher disposable income. Favourable government and regulatory initiatives are expected to increase the contribution of the insurance industry to the overall economic development of the country.


High potential demand for insurance products Since more than two-thirds of India’s population lives in rural areas, microinsurance is seen as the most suitable aid to reach the poor and sociallydisadvantaged sections of society.

Favourable demographics, fast progression of medical technology and increasing demand for better healthcare have facilitated a high growth in health insurance.

Growing demand for Indian insurance offshoring business


Total revenues from Indian offshore insurance business process outsourcing (BPO) services are estimated to have increased from US$ 367 million in 2002– 03, US$ 790 million in 2006–07 to US$ 2 billion by 2009–2010.

Employment is expected to more than double from 41,600 in 2005–06 to around 100,500 in 2009–2010

Rising demand from semi-urban and rural population for micro-insurance products

The industry is also promoting micro-insurance as a viable business opportunity and integrating the same with the poverty alleviation programmes of various state governments.

Poor insurance literacy and awareness, high transaction costs, inadequate regulations and inadequate understanding of client needs and expectations have restricted demand for micro-insurance products.

However, with the development of rural health insurance regulations and growing awareness about micro-insurance products, focus of many private players has shifted to these areas.




With more companies coming up every day, and the growing demand of the industry makes the market very competitive. Until and unless the existing companies make a mark and create their very own brand name it would be quite tough to sustain their


position in the market. There is also a probability of big companies taking over the new emerging companies.


The people providing capital act as big terror as opportunity always lies in the big hands and they can any day tempt good insurer from small companies to their own company.


Individuals never stand a chance in front of big corporate sectors as they dominate the insurance industries with high potential of negotiation power.


The insurance industry is full of options and the large insurance companies offer the same services as others, be it in any sector - home, commercial, auto, health or life.

Other key challenges include retention of talent, no benchmarks available for costing and outdated risk tables and global level challenges like climate change, terrorism, regulatory intervention, inflation, legal risks etc.




Health and Non-life insurance o Strong economic growth with increase in affluence and rising risk awareness leading to rapid growth in the insurance sector o Innovative products such as Unit Linked Insurance Policies are likely to drive future industry growth o Investment opportunities exist in both life and non-life segments o Total estimated investment opportunity of US$14-15 billion 37 .  The India insurance sector is likely to put its foot forward towards more competition with growing importance and recognition.  The Indian Insurance market is expected to be around US$52 billion by 2010  Expected CAGR of over 30% p.a.  POTENTIAL OF THE INDUSTRY o Largely untapped market with 17% of the world’s population o Nearly 80% of the Indian population is without Life. 100 million people are estimated to be added to the working population. OUTLOOK  Rising affluence is expected to increase the insurable population significantly by 2015. By then.

1-6. the penetration of life insurance in the mass market is about 65%. the penetration is lower than potential. • The premium income of India’s life insurance market is set to double by 2012 on better penetration and higher incomes. life insurance penetration in the banked segment is estimated to be about 40%. For plans to enter the Indian market following deregulation of its insurance sector. India offers great opportunities for insurers. • The average household premium will rise to Rs 3. while it is marginal at best in the unbanked segment. • Insurance penetration in India is currently about 4% of its GDP. • Considering the world’s largest population and an annual growth rate of nearly 7 per cent. In rural areas. 38 . POTENTIAL OF LIFE INSURANCE BUSINESS • India’s life insurance market has grown rapidly over the past six years. with new business premiums growing at over 40% per year. much lower than the developed market level of 6-9%.000-4. It could rise to 5.300 as will penetration by the existing and new players.2 by 2012 in tandem with the country’s demographic profile. in urban areas. and it’s considerably less in the low-income unbanked segment. • The total premium could go up to $80-100 billion by 2012 from the present $40 billion as higher per capita income increases per capita insurance intensity.100 from the current Rs 1. • In several segments of the population. • US based online insurance company ebix.

• Opportunities include health insurance and pensions.• Online insurer ebix. The government wants to increase the cap to 49’s expansion into India is a major step for the company to become a global supplier of internet-based insurance tools for consumers and insurance professionals.  can offer the Indian market a business-to-consumer internet portal where consumers have more choice while purchasing insurance and an internet-based agency management system that will help agents work more efficiently with multiple carriers.5-2 per cent of total healthcare expenditure in India was currently covered by insurance. • The agency model is the dominant sales channel accounting for more than 85 per cent of fresh premiums but overall inactivity and attrition is much higher at 50-55 per cent than the global average of 25 per cent. but its communist allies oppose such a move. adding only 1. • Foreign holding in Indian insurance companies is limited to 26 per cent. • The market is moving beyond single-premium policies and unit linked insurance products which are easier to sell. • Online insurer ebix.LOWER THAN POTENTIAL 39 . • In a diverse country such as India it is imperative that a universal insurance infrastructure be created to maximize efficiency in the insurance industry. the report said.

from about $40 billion to $80-100 billion.• Management consultancy firm McKinsey has forecast that India’s life insurance industry will be double in the next five years from $40 billion to $80-100 billion in 2012.1% and 6. • The Indian life insurance industry could witness a rise in the insurance sector premiums between 5. 26 tier-II cities with population greater than one million and 33 tier-III towns with the population of more than 5 lakh will account for 25% of the middle class and newly bankable class in 2025. Total market premiums are likely to more than double during this period.1% of gross domestic product to 6. This growth would improve the level of insurance penetration from 5. This implies a higher annual growth in new business annual premium equivalent (APE) of 19% to 23% from 2007 to 2012. Based on MGI forecasts. Although these consumers will be highly accessible. players will have to reckon with intense competition that is only going to increase and extend to other segments as well.1%.2% of GDP in 2012. from the current 4.12 PEST ANALYSIS 40 .000 tier-IV small towns will account for as much as 40% of these two classes in 2025. since 60% of the very rich (annual income over Rs 10 lakh) would be concentrated in the top eight cities. • However.and third-tier cities and small towns.2. if an insurer decided to be a niche player and concentrated on metros and their suburbs. Over 5. they will have a big market. • The large part of the growth would come from second. 1.2% in 2010-2012.

social and technological analysis. laws and regulations. exchange rates and inflation rate. technology incentives and the rate of technological change. The technological factors relate to the application of new inventions and ideas such as R&D activity. etc. interest rates. tax policies. economic. Political factors include government policies relating to the industry. 1) POLITICAL FACTORS      Increased service tax on premium 5% discount on corporate premium Hike in FDI limit Pricing control in general insurance Favourable regulation for rural insurance 2) ECONOMIC FACTORS  Increase in Gross Domestic Savings 41 . population growth rate. Social factors often look at the cultural aspects and include health consciousness. automation.PEST analysis of any industry sector investigates the important factors that are affecting the industry and influencing the companies operating in that sector. etc. age distribution. PEST is an acronym for political. The economic factors relate to changes in the wider economy such as economic growth. changes in tastes and buying patterns. trade restrictions and tariffs etc.

   Increased economic activities Interest rates Inflation rate 3) SOCIAL FACTORS        Low insurance coverage Rise in elderly population Changing Indian perception Growth of Islamic insurance Increase in lifestyle diseases Level of education Level of earnings 4) TECHNOLOGICAL FACTORS   Automation of processes Increase in CRM solutions 42 .

  Internet driven information era Business Process Monitoring (BPM) 1.2.13 LIFE INSURANCE COMPANIES IN INDIA 1) Life Insurer in Public Sector Life Insurance Corporation of India 2) Life Insurers in Private Sector  SBI Life Insurance  Metlife India Life Insurance  ICICI Prudential Life Insurance  Bajaj Allianz Life  Max New York Life Insurance  Sahara Life Insurance  Tata AIG Life  HDFC Standard Life  Birla Sunlife  Kotak Life Insurance 43 .

1 Chart showing market share of life insurance companies 44 . Aviva Life Insurance  Reliance Life Insurance  ING Vysya Life Insurance  Shriram Life Insurance  Bharti AXA Life Insurance Co Ltd  Future Generali Life Insurance Co Ltd  IDBI Fortis Life Insurance  AEGON Religare Life Insurance  DLF Pramerica Life Insurance  Canara HSBC Oriental Bank of Commerce Life Insurance Chart 1.

The corporation is aimed at providing life insurance services primarily to the rural masses and the socially & economically backward sections of the Indian society. It also aims at 45 . and is said to be the largest life insurance company and also the largest investor of the country. after the Life Insurance Corporation Act had been passed by the Parliament of India in the same year. LIC had been established on the 1st of September.MAJOR PLAYERS  Life Insurance Corporation of India (LIC) Life Insurance Corporation of India (LIC) is a Government of India enterprise. 1956.

and Bajaj Finserv. Today. offering a range of individual and group insurance solutions. Ltd. Being a joint venture of top financial services groups. that manage assets worth over a Trillion. Allianz SE is a leading insurance corporation globally and one of the largest asset managers in the world. HDFC Standard Life has adequate financial expertise to manage long-term investments safely and resourcefully. it has presence in more than 550 locations with over 60. is a joint venture between Allianz SE. HDFC Standard Life Insurance Co. With over 115 years of financial experience. Bajaj Allianz is one of India's leading and fastest growing insurance companies. in India.000 Insurance Consultants.  Bajaj Allianz Bajaj Allianz Life Insurance Co.promoting the people for saving their money.  HDFC Standard Life Insurance Established on 14th August 2000. Ltd. UK. Bajaj Allianz is into both life insurance and general insurance. Allianz SE is present in over 70 countries around the world. is a joint venture between Housing Development Finance Corporation Limited (HDFC Limited) . and offers attractive savings features along with various insurance policies.India's leading housing finance institution. and a Group Company of the Standard Life Plc. one of the world's largest insurance companies. The Company is one of leading private insurance companies.  ICICI Prudential Life Insurance 46 . Currently.

It is the first life insurance company in India to be awarded the IS0 9001:2000 certification.  Max New York Life Insurance Max New York Life Insurance Company Limited is a joint venture between Max India Limited. In just 2 years. which include 1.116 micro-offices. over 290. Reliance Life Insurance is not only one of India's fastest growing life insurance companies. Today. which ranks among the top 3 private sector financial services and banking companies. which is a leading international financial services group headquartered in the United Kingdom. and New York Life International.ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank. the Company has crossed the mark of 1.. The company has around 133 offices all over the country.  Reliance Life Insurance Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. Reliance Capital is one of India's leading private sector financial services companies. 47 .000 advisors and 18 banc assurance partners. ICICI Prudential began the operations in December 2000. Max New York Life Insurance started its commercial operations in India in 2001. and Prudential plc. but also counts among the top 4 private sector insurers. a part of Reliance .7 Million policies. this company has over 2100 branches. which is one of India's foremost financial services companies.Anil Dhirubhai Ambani Group. which is a Fortune 100 company & global expert in life insurance. which is a one of India's leading multi-business corporate.

protection cum savings products. BSLI became one of the leading players in the industry of Private Life Insurance Scheme. pension products. an Indian multinational corporation. and Sun Life Financial Inc. Within 4 years of its launch. All these products cater to various requirements of its end users. These include money back products.  Birla Sun Life Insurance Birla Sun Life Insurance Co. Birla Sun Life Insurance is distinguished as the first company in the sector of financial solutions to begin Business Continuity Plan. SBI Life Insurance SBI Life Insurance offers a slew of products designed for various segments of society. 48 . a leading global insurance company. This insurance company has pioneered the unique Unit Linked Life Insurance Solutions in India. is a joint venture between Aditya Birla Group. Ltd. and unit linked products.

CHAPTER 2 COMPANY PROFILE 2. agri business and retail. is a joint venture between Bharti . of India’s leading business groups with interests in telecom.1 INTRODUCTION Bharti AXA Life Insurance Co. and AXA - 49 .

1 PROMOTERS 1) BHARTI ENTERPRISES Bharti Enterprises is one of India’s leading business groups with operations in over 21 countries across the globe with interests in telecom. financial services. Indonesia. Bharti started its telecom services business by launching mobile services in Delhi (India) in 1995. Hong Kong. China. India and Malaysia. Democratic Republic of Congo. Malawi. Sierra Leone. Guernsey. It also has operations in leader in financial protection and wealth management. Congo Brazzaville. New Zealand. Africa and Europe . Bangladesh. fresh and processed foods. North America and the Asia/Pacific area. with major operations in Western Europe. Through its global telecom operations Bharti group has presence in 21 countries across Asia. has emerged as one of the top telecom companies in the world and is amongst the top five wireless operators in the world. Bharti AXA Life Insurance is making itself proactive to cater to insurance and wealth management needs of people. AXA's operations are diverse geographically. Niger. and real estate.India. Bharti AXA Life Insurance has a 74% stake from Bharti and 26% stake of AXA in the joint venture. retail. 50 . Philippines. Singapore. Sri Lanka. the Company launched its operations in India. Bharti Airtel. Nigeria. In December 2006. Gabon. it has more than 5200 employees working over 12 states in the country. Kenya. Thailand. At present. Burkina Faso. the group's' flagship company. Chad. With the continuous expansion. Madagascar. Jersey. Seychelles. 2.1. Ghana.

Over the past few years. Singtel. Bharti also serves customers through its fresh and processed foods business. general insurance and asset management . real estate. the group has diversified into emerging business areas in the fast expanding Indian economy. well establishing large scale cash & carry stores to serve institutional customers and other retailers. 51 . Axa Group is the partner for the financial services business and Del Monte Pacific for the processed foods division. Nokia Siemens and Alcatel-Lucent are key partners in telecom. The group offers a complete portfolio of financial services .  Partnerships Over the years some of biggest names in international business have partnered Bharti. and distribution of telecom/IT products. Uganda. training and capacity building.small and medium . The group has growing interests in other areas such as telecom software.  Vision To build India's finest conglomerate by 2020. Currently. With a vision to build India's finest conglomerate by 2020 the group has forayed into the retail sector by opening retail stores in multiple formats .Tanzania. IBM. Walmart is Bharti's partner for its cash & carry venture. and customers across India.

Telemedia. The mobile business offers services across 18 countries in Asia and Africa. The Telemedia business provides broadband.Mobile. The Digital TV business provides DTH services across India. ii. The Enterprise business provides end-to-end telecom solutions to corporate customers and national and international long distance services to carriers.000+ towers and holds a 42% take in Indus Towers Ltd . Vodafone & Idea Cellular . All these services are provided under the Airtel brand. The company is structured into four strategic business units .a Joint Venture between Bharti Infratel. for various mobile operators across 18 states of India. The company deploys. Values      Empowerment Entrepreneurship Transparency Impact Flexibility GROUP COMPANIES i. IPTV and telephone services across India. Bharti Airtel Bharti Airtel Limited is a leading emerging market telecom services provider with operations in 18 countries across Asia and Africa. Enterprise and Digital TV. It has a vast footprint of over 30. owns and manages telecom towers and communication structures.that has the 52 . Bharti Infratel Limited Bharti Infratel Limited is amongst India's leading telecom passive infrastructure service providers.

Fixed Cellular Phones & Fixed Wireless Terminals.distinction of being the world's largest tower company. Spurred by its accomplished success and acquired expertise. Africa. Latin America and is engaged into distribution & marketing of wide range of products that include Smart Phones. Beetel Teletech Limited Beetel Teletech Limited is a sales and distribution company with focus on emerging markets of SAARC. iii. retail and residential real estate. Mumbai and Bangalore. and high end residential real estate in the Delhi NCR region. High quality cordless phones. Middle East. iv. Bharti Realty Limited has now forayed into developing quality commercial real estate in the central business district (CBD) areas of metropolitan cities. Audio / video conferencing products. It has grown from strength to strength. Comviva enables mobile operators to offer services that enrich users’ 53 . but has also continued to lead the industry in developing and providing innovative solutions and setting service delivery benchmarks. Bharti Realty Limited Bharti Realty Limited is a young. Bharti Infratel has not only pioneered the passive infrastructure space in the Indian telecom sector. constructing and managing over ten top of the line facilities for Bharti group companies and third party clients. commerce and communityrelated offerings. v. vibrant and dynamic realty company with expanding interests in commercial. Modems. retail real estate in the up-market localities of metropolitan cities and in a few prominent cities of Punjab. With an extensive portfolio of products and solutions that encompass content. Comviva Comviva is a global player in offering mobile solutions beyond VAS. Free To Air Set Top Boxes.

Centum Learning Limited Centum Learning Limited provides end-to-end learning and skill-building solutions that enhance business performance to Bharti Group and several large corporates. All services are offered under the Airtel-Vodafone brand under a partnership to bring a range of Vodafone global products together with other exciting services from Bharti to customers in Jersey and Guernsey. Comviva has extensive expertise in delivering and managing mobile solutions that extend beyond VAS. vii. Comviva enhances operator efficiencies and revenue performance by adding value at every stage of the customer lifecycle – from prepaid subscription and etop-up to customer care. vi. Bharti Walmart 54 . and from real-time promotions and loyalty management to billing solutions. viii. powering solutions to mobile operators in more than 80 countries worldwide and reaching over 550 million subscribers globally. Centum Learning has received the Gold Award for "Excellence in Training" at the World HRD Congress. Jersey Airtel and Guernsey Airtel Jersey Airtel and Guernsey Airtel are subsidiaries of Bharti group and offer mobile services on the islands of Jersey and Guernsey respectively in the Channel Islands (Europe). Centum U – Institute of Management & Creative Studies which offers UG and PG programmes in association with world renowned institutions.lives. Centum Learning provides industry oriented employability programmes through a network of 130 Centum Learning Centers spread across 90 cities. 2010 and has been adjudged as one of the ' Top 15 Emerging Leaders in Training Outsourcing' 2009 Worldwide. It has also launched a new education initiative.

A typical cash-andcarry store stands between 50.000 square feet and sells a wide range of fresh. Today. fruits and vegetables among others. Bharti AXA General Insurance 55 . general merchandise. meat shop. x. appliances. dry groceries. frozen and chilled foods. hotel and restaurant supplies.The company launched national operations in December 2006. manufacturers. home furnishings. xi. mobile phones.000 and 100. fruits and vegetables. Merchandise at easyday Market stores include apparels. Bharti AXA Life Insurance Bharti AXA Life Insurance is a joint venture between Bharti and AXA Group. easyday stores are a one stop shop that cater to every family's day-today needs. The Company operates Cash & Carry stores under the Best Price Modern Wholesale brand. Bharti Retail provides consumers a wide range of good quality products at affordable prices. Bharti Retail Bharti Retail is a wholly owned subsidiary of Bharti Enterprises. The Company operates easyday neighborhood stores and compact hypermarket stores called easyday Market. ix. Bharti AXA Life offers a range of innovative products and services that cater to specific insurance and wealth management needs of customers. personal and home care.Bharti Walmart is a B2B joint venture between Bharti Enterprises and Walmart for wholesale cash & carry and back-end supply chain management operations in India to serve small retailers. institutions and farmers. Bharti AXA Life has a national footprint of distributors trained to provide quality financial advice and insurance solutions to the large Indian customer base. clothing. office supplies and other general merchandise items.

The company is one of the fastest growing in the general insurance segment and is the first in the industry to receive dual certifications of ISO 9001:2008 & 27001:2005 within the a year of launching operations. rural and commercial clients with cashless facilities in over 4000 hospitals and 1600 garages as well as 24/7 multi-modal claims registration. Ltd 56 . xiii. The company offers an extensive product range for retail. xii. Bharti AXA Investment Managers boasts one of the largest footprints for any AMC in the country during launch. With best practices brought in from world leaders in financial protection. Bharti AXA Investment Managers aim to be an aggressive player in the Indian Asset Management Industry.Bharti AXA General Insurance is a joint venture between Bharti Group and AXA Group. Indus Towers Indus Towers. provides services to all telecom operators and other wireless service providers such as as broadcasters and broadband service providers on non-discriminatory basis. The company. Bharti AXA Investment Managers Bharti AXA Investment Managers Private Limited is a joint venture between Bharti and the AXA Group. This indicates the retail focus of the AMC. FieldFresh Foods Pvt. xiv. which operates in 16 telecom circles across India. With a presence in more than 34 locations across the country within one year of the launch. Bharti Group (42%) and Aditya Birla Telecom Limited (16%) and is India’s leading mobile towers company. a JV between Vodafone Essar (42%).

57 .9 billion. operated according to the laws and regulations of many different countries. Ltd. as well as investment management. The AXA group of companies are engaged in life.014 billion in assets under its management as of December 31. health and other forms of insurance. 2009. AXA had Euro 1. The AXA group operates primarily in Western Europe. with major operations in Europe.1 billion and total revenues underlying earnings to Euro 3.FieldFresh Foods Pvt. North America and the Asia/Pacific area. aims to become one of the most trusted provider of premium quality fresh farm products. AXA is a French global insurance group headquartered in Paris. Ltd. FieldFresh Foods Pvt. including Europe and the Middle East. AXA’s operations are diverse geographically. 2) AXA GROUP AXA Group is a worldwide leader in Financial Protection. processed foods and beverages. North America and the Asia Pacific region and the Middle East. total revenues amounted to Euro 90. The company offers branded FieldFresh fruits & vegetables across India and international markets. AXA is a conglomerate of independently run business. The company produces markets and distributes farm fresh products. a joint venture company between Bharti Enterprises and Del Monte Pacific Ltd. In 2009.

000 individual shareholders billion euros in revenues • 216 • 90. and to build trust-based relationships with its stakeholders: ♦ Clients: Consistently deliver efficient local service and adapted solutions. ♦ Shareholders: Create lasting value by achieving operating performance that ranks among the best in the industry. AXA is positioned as a global leader in Financial Protection with: • 96 million clients worldwide 095 employees 400. 58 . International Insurance (including reinsurance). and provide transparency financial information. Asset Management and Other Financial Services.1 Commitments AXA aspired to do business responsibly. AXA ranks as the 73rd largest company in the world (based on revenue) on the 2009 Fortune Global 500 list. Property & Casualty. ♦ Employees: Ensure professional fulfilment by offering a supportive and respectful workplace where people are empowered and the continuous development of competencies is encouraged. while adhering to the highest standards of professional conduct. In the financial markets.The AXA Group encompasses five operating business segments: Life & Savings.

consolidating and developing organic growthretaining existing clients and acquiring new ones-to ensure that the Group is able to seize genuine opportunities for external growth. which together are known as the five cylinders of its growth: • Product innovation: a source of differentiation that reflects AXA desire to offer added value every time it introduces a new product in one of its markets. AXA has set five operational priorities or catalysts for change. AXA's business model entails fortifying. Strategy To attain its leadership ambition. ♦ Environment: Contribute to environmental preservation efforts by making available our environmental risk management capability and promoting environmentally sound practices in the workplace.♦ Suppliers: Maintain excellent supplier relationships by adhering to a set of clearly defined procurement guidelines and promoting ongoing dialogue. the AXA Group has built its strategy around a business model and a set of clearly defined operational priorities. AXA's development efforts are focused on the most profitable segments. and the Group seeks to enhance its positioning in developed or high-growth markets. ♦ Community: Act as a responsible corporate citizen by sharing our professional expertise with the community and sponsoring philanthropic initiatives. • 59 . Core business expertise: AXA's goal is to offer the best service at the best price.

• Distribution management: a second source of differentiation that reflects AXA's aspiration of enhancing sales performance by lessening the administrative load on its distributors.600 people worldwide. AXA has adopted a continuous process improvement program based on listening to the voice of the customer. the GIE AXA is composed of about 500 employees. AXA Assistance is present in more than 30 countries. which encourages local operating units to develop and exploit synergies. GROUP COMPANIES GIE AXA AXA's group management services (finance. marketing. based in Paris. As the Group's head office. IT. not a one-off reaction to a difficult operating environment. Productivity: AXA seeks to reduce operating costs and improve quality every year. communications. on 5 continents.) are grouped together as a GIE (economic interest group). To achieve operational excellence in each of these key areas. It has a workforce of 3. HR. 60 . Cost reduction is an ongoing challenge. • • Quality of service. AXA Assistance An international network of assistance and services for Corporate and individual clients. Its global strategy is leveraged by the size and reach of the AXA Group. procurement. etc.

Present in 90 countries. It has 400 employees.300 people. the UK and North America and manages close to 4 billion euros of liabilities. particularly in terms of savings offerings. In 2007.The ones travelling to Schengen area and in Europe will find information on how to get a visa.806 billion euros. AXA Corporate Solutions AXA Corporate Solutions is the AXA Group subsidiary that provides property-casualty insurance to large European corporations and marine and aviation insurance to corporate clients worldwide. attractive and innovative banking products and services is on offer in the countries in which the banking and insurance services answer to our customers' needs. AXA Corporate Solutions generated revenues of 1. Europe-wide bank strategy. AXA Liabilities Managers AXA Liabilities Managers is the AXA Group Company specializing in non-life (re) insurance legacy business acquisition and management. AXA Technology Services 61 . AXA has decided to dovetail all its individual banking services via a European bank division: AXA Bank Europe: A limited range of simple. its required travel insurance for the consulates and the possibility to buy a Schengen Travel Insurance online at Axa Schengen travel insurance. AXA Corporate Solutions has leading positions in its key markets. The company operates in Continental Europe. AXA Bank Europe Having defined a common. It employs 1.

Singapore and Thailand. and independent members of the highest caliber. Indonesia. Hong Kong. and has about 60. Malaysia. employs over 4.000 agents and advisers across Asia. The Regional office is based in Hong Kong and is responsible for supporting the Group’s operations in the 8 markets. 3) AXA ASIA AXA Asia Life is committed to become a preferred company in financial protection and wealth management by 2012.000 people. MAXIS provides multinational companies with international employee benefit solutions.5 million customers. MAXIS is present in over 65 countries with more than 70 member companies: AXA and MetLife subsidiaries. AXA Asia Life. AXA Asia Life serves over 2. it has grown rapidly and is today present in China. which is part of the AXA Group and AXA Asia Pacific Holdings Limited.1. started operating in Asia in 1986.2 BRAND VALUE OF BHARTI AXA 62 . MAXIS Through the wider organizations of AXA and MetLife. the Philippines. providing AXA companies worldwide with IT and telecommunications infrastructure management services. 2. Since then.Fully-owned AXA Group subsidiary. India.

expectations and outcome. enshrined in a code of ethics. methods. systematic training. or services. relevant.  Core Values • • • • • Team Spirit Integrity Innovation Pragmatism Professionalism Professionalism . measures. valued new products.Innovation is generally understood as the successful introduction of a new thing or method.Integrity is consistency of spirit is the spirit of a group that makes the members want the group to succeed Pragmatism . it judges the quality of a system in terms of its ability to achieve its own goals. As a holistic concept. Team Spirit . It has a base in a body of technical and specialized knowledge that it both teaches and advances it sets and enforces its own standards and it has a service rather than a profit orientation.A professional is a collegial discipline that regulates itself by means of mandatory. combination. values. thus establishing an authentic relationship of trust with the clients. Innovation is the embodiment. principles. by responding to client needs with real and tangible proof. Innovation . or synthesis of knowledge in original. 63 .The brand focuses on delivering beyond just promises. Integrity .Pragmatism is the philosophy of considering practical consequences and real effects to be vital components of meaning and truth. processes.

infrastructure and customer base To deliver high levels of shareholder return To build long term value with our business partners by enhancing the proposition to their customers To be the employer of choice to attract and retain the best talent in India • • • • • 64 . multi-product platform To adapt AXA's best practice blueprints as a sound platform for efficient and profitable growth To leverage Bharti's local knowledge. Core Attitudes These are at the heart of actions and commitments to clients.”  Strategy • To achieve a market position among the top 5 in India through a multidistribution. • Attentive – Treating customer with empathy and consideration. provide personalized advice along their lives and reward their loyalties • • Reliable – Delivering and keeping customers informed Available – Being there when customers need something  Vision “To be a leader and the preferred company for financial protection and wealth management in India.

1. Williams worked with 65 . products and business capability Strong AXA and Bharti brands which can be leveraged to attract and retain a high quality management team • • • • 2.  Strategy Differentiators • Strong partner Bharti . Ltd. In this position.• To be recognised as being close and qualified by our customers. Mr.3 MANAGEMENT 1) Glenn Williams – Chief Executive Officer He is the Chief Executive Officer and Managing Director for Bharti AXA Life Insurance Co. Prior to this.provides access to customer base of more than 130 million Multi channel execution capability Current Asia product range which is a strong match to products sold to the mass and mass affluent Global scale providing cost effective and speedy re-use of systems. he was the Regional General Manager. Corporate Development and Strategy for AXA Asia Life.

today. Claims. He has held responsibilities in Accounting and Project Reporting at Kentz. Williams has over 15 years of experience in the insurance industry. He started his career as a Chartered Accountant in 1989 and over the past two decades has emerged as a stalwart in the financial sector. Thailand and the Philippines. 2) Mark Gerard Meehan – Chief Operations Officer He is currently the Chief Marketing and Operations Officer for Bharti AXA Life Insurance Company Ltd. Kuwait. he stands as a storehouse of financial knowledge and expertise. Channel & Distribution Operations. His role in Bharti AXA Life as CMOO includes Marketing. Product Development. Williams has been with AXA since 2002 and has held key positions in Hong Kong and the Philippines. China. With over 8 years of rich experience in the Life Insurance industry. From April 1996 to February 2002. Business Continuity and Client Persistency Management. He has also functioned as the Senior Vice 66 . Mr. Information Technology and Systems. a professional investment services company. Underwriting. Indonesia. Singapore. Six Sigma. Mr. India. Malaysia.AXA Asia Life's senior management to expand operations across the region in markets includingg Hong Kong. 3) V Srinivasan – Chief Financial Officer He is currently the Chief Financial Officer of Bharti AXA Life Insurance Company. Reliance and SRF Ltd. His portfolio also boasts of extensive experience in diverse industrial segments like manufacturing and oil & gas. particularly in the areas of product & pricing actuary. Customer Service. he has handled Corporate Finance and Tax at Cairn Energy India Pvt Ltd. Mark’s previous role in AXA was that of CEO of Tynan Mackenzie P/L. operations and finance.

5) Priya Ranjan – Human Resources Director He is Director .HR for two years. information technology and manufacturing. followed by Microland Ltd. Hospitality and Office Automation. Prior to this.Sushanto has over 21 years of experience across Insurance. as Manager . He specialises in building large scale businesses right from their project days. which specialised in recruitment and HR consulting. He also has an entrepreneurial venture to his credit with Bangalore-based Team Excel. Telecom.Human Resources at Bharti AXA Life Insurance Company. Personnel Officer from 1991 to 1994. 4) Sushanto Mukherjee – Chief Distribution Officer He is the Chief Distribution Officer for Bharti AXA Life Insurance Company Ltd. His first assignment was with Tata Steel as Sr.President . He brings to the business over 15 years of HR experience in diverse fields spanning financial services. Reliance Infocomm & Tata AIG in senior positions managing sales at Zonal & National Levels.Corporate Affairs at ICICI Prudential Life Insurance Company and CFO of AMP Samar Life Insurance Company from February 2002 to December 2005. 6) G L N Sarma – Senior Vice President 67 . He has subsequently worked in various reputed organizations such as Xerox. he was Director & Head Partnership Distribution & Group Business at Max New York Life Insurance He started his career with ITC-Welcomegroup hotels division in 1989.

he was also a part of the Pension and Group Scheme Team handling LIC's superannuation funds at the corporate office.4 SWOT ANALYSIS Strengths • It has very well established promoters. He carries with him 18 years of experience in Insurance. Bharti Enterprises and the AXA Group • • • It has a range of innovative products It has a huge database of clients from promoter companies It has around 200 branches all over India Weaknesses • It is relatively new in the market 68 . Pensions and General Administration. In 2001. 2. claims and sales compensation.He became a part of the Bharti AXA Life family in mid-2006 and is currently Sr. He also plays the role of Chief Risk Officer at Bharti AXA Life. GLN started his career with LIC in 1991. This was followed by a stint at Swiss Reinsurance. underwriting. handling policy servicing. Additionally. namely. Vice President and Chief & Appointed Actuary of Bharti AXA Life Insurance Company. Reinsurance. valuation and group business initiatives.1. he joined the start-up team of Birla Sun Life as a qualified Actuary and was responsible for business planning. pricing. where he functioned as the Marketing Actuary and managed clients across the Indian sub-continent.

1.• • It has a low market share It has a weak distribution system Opportunities • • • There is a huge untapped life insurance market in India The company could have tie-ups with agents and brokers The company could use the latest technology Threats • • • There is huge competition from various players in the market There is a threat of new entrants There are constant changes in the government policies that affect the insurance companies • New rules and regulations by the IRDA 2.5 PRODUCTS Bharti AXA Life offers a range of innovative products and services that cater to specific insurance and wealth management needs of customers. Individual Plans • Protection 69 .

70 . It gives the option to cover life till 75 years with a unique to age 75 years term • Bharti AXA Life Secure Confident – It is a simple life insurance product and gives an option to enhance protection with the addition of riders. INDIVIDUAL PLANS 1) Protection • Bharti AXA Life Elite Secure – It is a pure life insurance cover available at very competitive premiums.• • • Wealth Creation with protection Retirement Health Group Plans • • • Life Insurance Credit Protection Health I.

etc Option to enhance protection with choice of riders 12 free switches every policy year and 6 investment fund options o o o o o 71 .2) Wealth Creation with Protection  Child Plans • Bharti AXA Life Bright Stars Plus – It provides comprehensive financial protection to loved ones. It also provides a jumpstart benefit of up to 7% of average fund value during the policy term. 20 or 25 year term 360 degree protection to your loved ones through comprehensive protection in case of death Jumpstart Benefit (Special additions) up to 7% during the policy term to provide enhanced value to your investments Flexible options like partial withdrawal. 15. 10. Key features o Choice of policy terms to suit your financial goals – 7. decrease in premium. premium holiday.

It invests in the equity markets with the benefit of protection of capital. Key features o Unmatched flexibility for wealth creation  Pay premium only for 15 years and enjoy the benefits till maturity Option to take cover continuance in case you are unable to pay future premiums Flexibility to meet unforeseen or planned economic requirement through partial withdrawals   o A guaranteed special addition of 1. Key features 72 . The guarantee can also potentially grow every year to increase protection.25 times of Annual Premium will be credited to your account at the end of 15th policy year Tax benefits on the premium paid and the benefits received will be as per the prevailing tax laws o  Guaranteed Plans • Bharti AXA Life Spot Guarantee Builder – It has a simplified sign up process – no lengthy documentation or medical check-ups.• Bharti AXA Life Swarna Bhavishya – Special additions and guaranteed special additions are added to the policy fund value at regular intervals.

priority processing of your application to start your insurance protection High Protection (on Maturity): Opportunity to participate in equity markets over the long term while having the comfort of a Guaranteed Maturity Value Get the reassurance that your Guaranteed Maturity Value may keep increasing over time High Insurance Protection: Sum Assured + Fund Value • o o o Bharti AXA Life Save Confident .Premium payment is for 12 years.Get the advantage of faster. while benefits can be enjoyed for 15 years.o o Just fill the application form and answer simple health questions Quick Cover . It also provides regular money back with guaranteed annual payments. Key features o A convenient product with premium payment for only 12 years and benefits for 15 years Enhance savings through Annual Reversionary Bonuses and Terminal Bonuses if declared Provides regular money back through guaranteed annual regular payments Enhanced protection with an in-built accidental death benefit in addition to the normal death benefit o o o  Other Market Linked Plans 73 .

Key features o Guaranteed additions to your fund in the 20th or 25th year as per the GSA option chosen by you Flexibility of partial withdrawal Cover continuance.Get the advantage of faster priority processing of your application to start your life insurance protection Guaranteed Additions to your fund in the 10th or 15th year as per the GSA option by you Special Additions to boost your Fund Value Flexibility of partial withdrawal Cover continuance. Key features o Quick Cover.• Bharti AXA Life Express Secure .Get higher of up to 250% of annual premium or 7% of Average Fund Value as Guaranteed Special Addition. depending on the option chosen.just fill the application form and answer a few simple health related questions. in case of discontinuance of premium Redirect your future premium into different investment o o o o o • Bharti AXA Life Aspire life Plus .Simplified sign up process . The option to choose the year in which the Guaranteed Special Addition will be paid. It provides up to 150% of first year premium guaranteed back. in case of discontinuance of premium Redirect your future premium into different investment o o o 74 .

Key features o Pay premiums for 5 years while your policy accumulates wealth for 10 years Higher allocation of your first year premium up to 88% for investment Special additions every year starting from 6th policy year to provide enhanced value to your investments Flexible options like partial withdrawal.Financial protection till age 85. First year premium paid is paid back with interest. Flexibilities are available to take care of changing investment needs while providing life insurance cover. Key features o A financial solution that provides complete. etc 12 free switches every policy year and 6 investment fund options o o o o • Bharti AXA Life Merit Plus Edge .Investment-oriented plan that helps create wealth for over 10 years through higher allocation to investment fund and special additions.• Bharti AXA Life Wealth Confident . decrease in premium. comprehensive protection to you and your family. premium holiday. whichever is higher Sum Assured PLUS Fund Value 75 . Option to choose life Insurance Benefit as:   o Sum Assured or Fund Value.

76 . Also. It has regular and single pay options. special additions are added to the fund. in order to boost it.Systematically increases investments through Accumulator Option.o Flexible options like partial withdrawal. additional investments through top-up. Key features o o Pay regular premiums or one time lump sum premium At inception. o 3) Retirement • Bharti AXA Life Dream Life Pension Plus . switching between the investment funds and many more. choose to systematically increase your premiums by 5 % or 8% each year with the Accumulator Option Increase / decrease premiums any time after the 2nd year Enhance your retirement wealth by paying unlimited top-up premiums after first year Flexibility to change your retirement age any time Get liquidity through partial withdrawals after the completion of 5 years 12 free switches every policy year and 6 investment fund options Special additions added to the fund at the end of 10th year and every 5 years thereafter o o o o o o • Bharti AXA Life Future Secure Pension . while you payment is for 10 years only.Flexible pension plan with benefits till age 90.

Key features

Unmatched flexibility for wealth creation on retirement

Pay premium for 10 years only and enjoy the benefits till your retirement Flexibility to invest through any of the two investment options designed for you - Age-based Asset Allocation and Self Investment option Invest in equity through our Systematic Transfer Plan which helps you average out the risks associated with equity Markets Flexibility to meet unforeseen or planned economic requirement through partial withdrawals


Future Secure Pension enhances your retirement kitty by providing special additions at the end of the 10th and 15th policy year Tax benefits on the premium paid and the benefits received will be as per the prevailing tax laws


Bharti AXA Life Future Advantage Pension - Premium payment is for just 3 years. There are no surrender charges throughout the policy term.

Key features
o o

Pay premium for 3 years only and enjoy the benefits till your retirement Get liquidity through partial withdrawals after the completion of 3 policy years



Enhance your retirement wealth by paying top-up premiums at any point of time 12 free switches every policy year and 6 investment fund options No surrender charge applicable throughout the term of the policy Flexibility to change your retirement age any time during the Policy term Special additions added to the fund every 5 years

o o o o

4) Health

Bharti AXA Life Easy Health - Extremely affordable premiums starting as low as Rs 3 per day. A range of Daily Hospital Cash Benefit options, with additional benefits in case of accidental hospitalisation in an ICU or otherwise.

Key features

Extremely affordable protection with premiums starting as low as Rs 3 per day Easy health covers you with a single premium at one go for 3 years Daily Hospital Cash Benefit options of Rs 500, Rs 750, Rs 1000 and Rs. 1500 per day Cover your spouse, children and parents and avail of an attractive discount of 10% on premium for each family member added Get additional protection in case of hospitalisation due to an accident and for hospitalisation in an ICU

o o





Avail of Get Well Soon benefit for continuous hospitalisation of 7 days or more Simple and easy to enroll. No need to fill up lengthy proposal forms or take any medical tests or medical reports



1) Life Insurance

Bharti AXA Life Shield – It is a single premium group term life insurance product. It is a simple, affordable life insurance solution that financially secures the family of the group member by providing a life insurance cover.

Bharti AXA Life Sanjeevani – It is a single premium group term life insurance product which provides financial security and protection to loved ones. It is a simple, affordable plan to safeguard a family from life's uncertainties.

2) Credit Protection

Bharti AXA Life Credit Secure – It is a single premium group reducing term life insurance product, that makes sure your family is not burdened with your loan liability in your absence. Now you can ensure that your family is protected from the uncertainties of life


In case of an eventuality. coronary artery bypass surgery.even as they enjoy a good lifestyle. 3) Health • Bharti AXA Life Swasthya Sanjeevani – It is a single premium group critical illness product helps you secure yourself financially against 6 critical illnesses namely cancer.protecting the family of the borrower in the event of death by paying an amount to settle the outstanding loan. • Bharti AXA Life Credit Shield – It is a group product which protects the family of the borrower in the event of death by paying an amount to settle the outstanding loan. stroke and loss of limbs. kidney failure. 80 . • Bharti AXA Life Mortgage Credit Shield – It is a group product designed for the customers of Institutions/Banks . Bharti AXA Life will pay an amount that can used to settle the outstanding loan amount. heart attack.

Chart 2.1 Chart showing organization structure 81 .


news articles. • Accounts This department does Financial Accounting. They strive on the excellence & transparency of systems & controls to keep the auditors. such as making TV commercials. best practices policy manuals. FINANCE DEPARTMENT • Internal Audit This department is responsible for Risk management. 83 . direct mail or on ground activities.MARKETING DEPARTMENT The team here is responsible for an array of activities. referral. • Investment Operations This department manages the cash flow. 1. press and outdoor hoardings. Business continuity plan. bonuses. customers and shareholders assured. They receive dozens of queries from the internal customers every day and they aim to resolve some of the most common requests they receive. • Distribution Payouts This department rolls out commission payouts. contest spends and effectiveness. Expense provisioning. product brochures. Income accruals.

• Training & Capability Development Programs: The focus of Training & Capability Development Programs is to develop key competencies and skills among staff members so as to facilitate attainment of full people potential. 3. HUMAN RESOURCE DEPARTMENT • Performance Management This department is responsible for creating a performance driven culture through effective management of performance to all staff members in a way that is mutually beneficial.2. techniques. • • Devices programs relating to communications skills of advisors and convincing Updating the bank accounts of advisors. OPERATIONS DEPARTMENT The functions performed by this operations department are: • • • Allotting advisor codes. Conducts fundamental skill programmer for advisors. 84 . They drive the same by linking individual performance objectives to business objectives and evaluating performance consistently and fairly. Makes entry relating to advisors applications.

terms of employment.2 Chart showing the recruitment process 85 . employee development and employee services.• HR Policies & Procedures: The policies and procedures laid down here promote the philosophy of the company with regard to standards of excellence. Chart 2.


For insurance company the market was segmented into following different groups. • • • • • • • • Geographical region Demographic age Family life cycle Gender Income Occupation Education Social class B) TARGETING THE MARKET For an insurance company. like • Extra income need • Job need • Career need 87 . targeting the most prospective candidate requires segmenting of the market into: Needs based Segmentation: This is the most preferred and positive target segment of an insurance company because the most positive result comes from this segment.

fellow members of the community. Sources of direct contact include personal friends.ask yourself: • Would this person be a good recruiting prospect? • If the answer is yes decide the best method to approach. (b) Personal Observation This is done by increasing “recruiting awareness”. schoolmates. the new financial advisors known to the recruiter serve as a good source. letter or face-toface • Do it. (a) Personal Activity No research is needed for means of introduction. Friends. This is done in three steps .telephone.C) PROCESS OF CAPTURING ELIGIBLE CANDIDATE 1] Personal contacts Direct contact with many people known to an agency manager may be worth consideration as potential insurance advisor. (c) Seminar Recruiting Discuss career opportunities with various groups of people and then select individuals with whom to speak in more details. (d) The “no leg” Recruiting System 88 . former business associates personal contacts and business contacts of the branch office.

office clients. community members. display ads. (a) advertisement. and sales staff is almost limitless.S. There can be numbers of nominators within an Agency Manager circle of friends. Nominators serve as extra “eyes and ears” for the branch office. 2] Through nominators This means to obtain help from people who have influence over others not known to you.classified ads. situation wanted ads (b) Employment agencies (c) Direct mail D) FILLING OF I. FORM 89 . and city directory/office directory / commerce directory/yellow pages.F. of the branch office and of the company give nominators adequate concept of opportunity for the right person invest time and effort necessary to earn prestige and to strengthen relationship 3] Impersonal Recruiting Methods The best candidates from impersonal recruitment survive and produce as well as the best candidates from personal recruitment.This includes newspaper. acquaintance. statistical bureaus government and public bodies. For getting cooperation from the nominators: • • • build prestige: personal.

The significance of Qs A high Q score implies possibility of better performance by the candidate as a life advisor (meaning better revenue generation ability).2 to 1. F) CONDUCT AN INTERVIEW 90 .Minimum age to be eligible for being a life advisor is 25. A low Q score implies lesser possibility of such performance. Q1. each and every survey data is again reentered in ISF (Initial Screening Form) to get a clearer picture of the best among the prospective candidates.His/ Her annual income should be at least 1.5 lakhs. Q3. Q2. Q4. This ISF form serves as a data base for company. These Qs are five basic screening questions through which the company knows about the candidate interest of work in an insurance company. Q5.He/ She should be a graduate. On an average only a candidate with a score of Q4 or Q5 was interviewed.After completion of market survey.The candidate should have been a resident of Bangalore for at least five years. E) BASIC SHORTLISTING ON THE OF ‘Q’ SCORE The Qs are 5 different criteria where the candidates are to be analyzed.He/ She should be married.

He is also given a general idea of the product and the commission on the product holds. H) FILLING OF NAAF FORM The NAAF form consists of terms and conditions under the following headings. G) BOP PRESENTATION Once the prospective candidate is ready for doing the advisory job he is called to the office for a BOP (Business Opportunity Presentation) process. the prospective advisor is sent to Branch Sales Manager. where the manager tries to know his interest in the insurance sector and in this process he also verifies his certificate and him personally. In this whole selection process.In this session of recruitment process the probable adviser is given the idea of the job profile and taken his response. In this process.  advisor’s remuneration  advisor’s obligations  insurance proposals  limitations on advisor’s authority  collection and remittance of funds  indemnity  books and records  confidentiality  protection of the interests of the company 91 . the prospective candidate is shown the career path.

present scenario of life insurance in India and scope and career growth in insurance with legal ideas related to insurance. online or offline. As per provisions of IRDA Act for training of life advisors. The training duration should be minimum 18 working days excluding Sundays and holidays. The product training. where such applicant is seeking license for the first time to act as an insurance agent. the applicant shall have to undergo at least 100 hours practical training in life or general insurance business which may be spread over three to four weeks. suspension  termination I) SIX DAYS IRDA TRAINING Refresher training is the basic training given to the trainee advisors about what is insurance. if any. No product training/market survey should be included into this hundred 100 hours training. types of insurance. A candidate is required to secure at least 50% marks to be declared successful. Normally objective type multiple choice questions are asked. K) TWO DAYS PRODUCT TRAINING 92 . to be given by the insurance company should be over and above the minimum training hours prescribed by the Authority. J) CONDUCTION OF EXAMINATION The test can be taken up in either of the two modes.

SALES DEPARTMENT • Managers Utilities . statutory changes that affect advisors. An advisor’s main job is to sell products and for this reason he needs to have a sound knowledge of each and every product the company provides.This section holds advisor related tools like. Electronic Benefit illustrations. tools like pre-recruitment profiling. Advisor initiatives. And once he gets through these two days training he becomes a full-fledged advisor ready to work for the company. manager related initiatives. Once the advisor qualifies the IRDA exam he is sent to next stage of enrichment where he is given product training. Chart 2.3 93 .Product training is the final dressing of an advisor. • Advisor Utilities . 4. important announcements. etc. etc.In this section there are important announcements for managers.

Chart showing Sales Process 94 .

Call Centre Agent Customer Field Sales Representative Receive call list from marketing campaign Call customer & offer new product Show interest in offered insurance Create follow-up opportunity for hot lead Receive new opportunity requesting customer visit Arrange appointment with customer Create several quotations Choose one quotation & agree on creating application Send application to the company 95 .

and sends a visit request to the respective field sales representative. guided by a predefined interactive script. f) Receive new opportunity requesting customer visit The field sales representative receives a new opportunity and visit request as a result of the call. c) Create follow-up opportunity for hot lead Because the customer is interested in the new product. d) Show interest in offered insurance The customer is indeed interested in the insurance product offered and would like a consultation with his personal field sales representative. e) Choose one quotation and agree on creating application The customer chooses one of the quotations offered and agrees on an application being created. the call centre agent creates a follow-up opportunity for the hot lead. 96 . b) Call customers and offer new products The call centre agent offers the new products to the customers.a) Receive call list from marketing campaign The call centre agent receives from the marketing department a call list with highpotential customers (leads) to call.

g) Arrange appointment with customer The field sales representative prepares for a call by having a look at the partner overview. 97 . h) Send application to company The field sales representative sends the signed application back to the company and changes the status of the opportunity to "won". Then the field sales representative calls the customer to fix a date for the visit. i) Create several quotations During the customer visit the field sales representative explains the product in detail and sets up several quotations for the customer.


3. The stock markets are volatile and hence there is always a risk on the funds which we invest in the stock market.1 STATEMENT OF THE PROBLEM The fund managers of insurance companies are investing the maximum fund in stock market.3 OBJECTIVES OF THE STUDY • To calculate Value at Risk 99 . They have to cover all the risk by managing asset allocation pattern efficiently. This study helps us to analyse how volatile a fund is and also the risk associated with each fund. This research is going to help the investors to know the maximum amount of loss they might incur in future depending upon the value at risk of each fund. which is very volatile. However.2 TITLE OF THE STUDY Risk Analysis of Bharti AXA Life Insurance ULIP funds 3. Thus the funds are exposed to huge risk.3. They have to be very careful in allocating the fund in different sectors to get a maximum return. no matter there is a high chance of return. So there comes a need for the study of value at risk of the funds. how safe game they play the returns depends upon their asset allocation pattern.

a continuous probability distribution. A volatile stock would have a high standard deviation. Normal Distribution: The normal distribution. 3. The normal distribution 100 . the standard deviation tells us how much the return on the fund is deviating from the expected normal returns.• • To calculate maximum loss below expected loss To determine the worst daily loss 3. In mutual funds.5 OPERATIONAL DEFINITIONS Standard Deviation: In finance. is the most commonly used probability distribution in finance.4 SCOPE OF THE STUDY The scope of the study is to find the value at risk of six investment funds under ULIP plan of Bharti AXA Life. standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility (risk). The study will help the customers to know the maximum loss that they might incur in the next six months depending upon the fund.

1. Also known as "un-diversifiable risk" or "market risk. Unsystematic Risk: Risk that affects a very small number of assets. Whereas this type of risk affects a broad range of securities. unsystematic risk affects a very specific group of securities or an individual security. For example. Expected return and standard deviation of return. It is sometimes referred as specific risk." Interest rates. Value at Risk (VaR): It calculates the maximum loss expected (or worst case scenario) on an investment. Systematic risk can be mitigated only by being hedged. the variancecovariance method and the Monte Carlo simulation. There are three methods of calculating VAR: the historical method. Historical Method 101 . news that is specific to a small number of stocks. And it is a bell-shaped distribution that is perfectly symmetric around the expected return. such as a sudden strike by the employees of a company you have shares in. recession and wars all represent sources of systematic risk because they will affect the entire market and cannot be avoided through diversification. It is completely characterized by just two parameters. over a given time period and given a specified degree of confidence.resembles a bell shaped curve. viz. Systematic Risk: The risk inherent to the entire market or entire market segment.

2. we have collected fact sheets. TYPE OF DATA To understand the performance and functioning of various funds.which allow us to plot a normal distribution curve. from a risk perspective. and sector-wise allocation of selected funds as the secondary data. it requires that we estimate only two factors . SOURCE OF DATA Secondary data 1) Fact sheets and reports of the company 102 . It then assumes that history will repeat itself.6 RESEARCH METHODOLOGY TYPE OF STUDY It is an analytical study done to analyze the risk associated with the different funds of the company. 3. putting them in order from worst to expected (or average) return and a standard deviation . Variance-Covariance Method This method assumes that stock returns are normally distributed.The historical method simply re-organizes actual historical returns. In other words. performance measure statistics.

three are equity funds. two are debt funds and remaining one is a balanced fund. and research reports. Variance . Descriptive Statistics was used for the purpose of calculating frequency and standard deviation. 103 . Out of this. SAMPLING METHOD Sampling method is convenience sampling as all the data is available as secondary source.Covariance method was also used to calculate the maximum loss that a customer might incur in future depending upon the value at risk of each fund. plan brochures. SAMPLE SIZE The sample size comprises of six different types of funds under Bharti AXA ULIP plans. METHOD OF DATA COLLECTION All the data has been collected using the secondary sources like websites.2) Information through websites . TECHNIQUES/TOOLS FOR ANALYSIS To evaluate the Risk Analysis of Bharti-AXA Life Insurance funds using Covariance. MS Excel was used.

LIMITATIONS 1) The study has been limited to only six funds 2) The data encompassing the performance of various funds was limited to only six months. So the study may not hold good for all the time. 3) The study is done only for one ULIP product. This would have to be undertaken in subsequent studies. 4) In order to generalize the results. a similar methodology would have to be applied to monthly data for different months. Bright Stars Plus. because in all funds there are some advantages as well as some disadvantages. 5) The inference has been drawn in general. 104 .


For the purpose of conducting the research. the following six funds were used: Table 4.1 Table showing asset allocation & risk-return potential of the different funds 106 .

107 .

2 Table showing calculation of VaR 108 .Variance-Covariance Analysis The Value at Risk (VaR) is calculated using the formula: Table 4.

The curves are based on the standard deviation of the fund value. 109 . Conversion of Value at Risk to Different Time Period The maximum loss below the expected or average return is calculated using the formula Table 4.3 Table showing conversion of VaR to a different time period We are predicting the maximum loss that can occur in the next 6 months. Assuming that there are 124 trading sessions in the next 6 months we calculate the maximum loss that can occur.The standard deviation shows the volatility of the fund.

6 to -0.08 to 0 0 to 0.72 Frequency 0 5 34 71 12 1 0 0 0 0 0 110 .32 0.2 ANALYSIS AND INTERPRETATION 1) STEADY MONEY FUND Max.24 0.0754 Table 4.64 0.08 Table 4.32 to 0.1608 -0.08 0.4 to 0.56 0.4b Table showing frequency distribution -0.48 0.4.08 to 0.4 0.0967 0.24 to 0.56 to 0.48 to 0.64 o 0.4a Table showing range of returns Class Interval -1. returns in a day Min.16 0. returns in a day Range 0.16 to 0.

08% Graph 4.03% of the times the daily returns will be less than 0. Thus we can say with a 95.Historical Method From the table above.1 Graph showing distribution of daily returns 111 . So we can say that approximately (5/124*100) = 4. the number of days when we get a return less than or equal to zero is 5.97% confidence level that the daily return on this fund will not exceed -0.

28857 .20435 -0.Variance-Covariance Method Table 4.4c Table showing standard deviation. value at risk & maximum loss Standard Deviation Value at Risk 95% 99% 112 0.12385 -0.

5399 99% -3.8060 Interpretation At 95% we get the VaR value as -0.20435% and at 99% we get the VaR value as -0.27557 Max.21338% 2) SAVE ’N’ GROW MONEY FUND Table 4.28857% The maximum loss that can occur at 95% confidence is -2.27557% and at 99% confidence the maximum loss is -3.5a Table showing range of returns 113 .Maximum Loss Below Expected Average for next 6 months 95% -2. returns in 1. returns in -1.2132 a day Range 0.21338 a day Min.

8 to 1.6 to 2.6 to -0.4 -2.2 -3.2 3.4 to 3.2 to -2.6 -1.Table 4.8 to 0 0 to 0.8 Frequency 0 0 0 0 4 47 68 4 0 0 0 Historical Method 114 .4 to -1.4 2.8 -0.5b Table showing frequency distribution Class Interval -4 to -3.8 0.2 to 4 4 to 4.6 1.

From the table above the number of days when we get a return less than or equal to zero is 4.23% of the times the daily returns will be less than 0. So we can say that approximately (4/124*100) = 3. Thus we can say with a 96.77% confidence level that the daily return on this fund will not exceed -0.2 Graph showing distribution of daily returns 115 .8% Graph 4.

9787 -7.03218 Interpretation At 95% we get the VaR value as -0.271034 -0.9787% and at 99% confidence the maximum loss is -7.6351% The maximum loss that can occur at 95% confidence is -4.5c Table showing standard deviation.44721% and at 99% we get the VaR value as -0.4.63151 .Variance-Covariance Method Table 4.44721 -0. value at risk & maximum loss Standard Deviation Value at Risk 95% 99% Maximum Loss Below Expected Average for next 6 months 95% 99% 0.03218% 116 .

03 to 0 0 to 0.09 to 0.0215 0.6b Table showing frequency distribution -0.03 to 0.6a Table showing range of returns Max.5022 -0.12 0.09 0.03 -0.15 0. returns in a day Min.0203 Class Interval -0.3) SAFE MONEY FUND Table 4.09 -0.06 to 0.06 Table 4.06 to -0.18 Frequency 0 0 0 0 1 96 26 0 0 0 117 .12 to -0.09 to -0.15 to 0.06 0.03 0.12 to 0. returns in a day Range 0.

3 Graph showing distribution of daily returns 118 .Historical Method From the table above the number of days when we get a return less than or equal to zero is 0. So we can say that approximately (0/124*100) = 0% of the times the daily returns will be less than 0. Thus we can say with a 100% confidence level that the daily return on Safe Money Fund will not exceed -0.03% Graph 4.

value at risk & maximum loss Standard Deviation Value at Risk 95% 0.6c Table showing standard deviation.10552 119 .Variance-Covariance Method Table 4.063951 -0.

17502 -1.3046 a day 99% Min.10552% and at 99% we get the VaR value as -0.17502% and at 99% confidence the maximum loss is -1.14901% The maximum loss that can occur at 95% confidence is -1.14901 -1.99% Maximum Loss Below Expected Average for next 6 months 95% Max.65927 At 95% we get the VaR value as -0.7a Table showing range of returns 120 . returns in -2.7816 Interpretation -0.7804 a day Range 1. returns in 3.65927% 4) GROW MONEY PLUS FUND Table 4.

Table 4.6 3.4 5.2 7.8 to 0 0 to 1.2 to -5.8 to 3.4 to -3.2 to 9 9 to 9.2 -7.8 1.6 to 5.4 -5.6 -3.7b Table showing frequency distribution Class Interval -9 to -7.8 -1.4 to 7.6 to -1.8 Frequency 0 0 0 0 4 49 67 2 1 0 0 121 .

Graph 4. the number of days when we get a return less than or equal to zero is 4. So we can say that approximately (4/124*100) =3.23% of the times the daily returns will be less than 0. Thus we can say with a 96.8%.4 Graph showing distribution of daily funds 122 .Historical Method From the table above.77% confidence level that the daily return on this fund will not exceed -1.

value at risk & maximum loss Standard Deviation Value at Risk 95% 0.7c Table showing standard deviation.61766 123 .Variance-Covariance Method Table 4.37434 -0.

87799% and at 99% confidence the maximum loss is -9.99% Maximum Loss Below Expected Average for next 6 months Max. returns in a day Range Interpretation 3.8a Table showing range of returns 124 .87221 -6.1129 95% 99% -2.7273 -0. returns in a day Min.61766% and at 99% we get the VaR value as -0.87221% The maximum loss that can occur at 95% confidence is -6.71255 At 95% we get the VaR value as -0.7867 1.87799 -9.71255% 5) GROWTH OPPORTUNITIES PLUS FUND Table 4.

2 to 9 9 to 9.4 to -3.8 -1.8 1.8 to 0 0 to 1.2 -7.8b Table showing frequency distribution Class Interval -9 to -7.8 to 3.4 -5.6 -3.Table 4.6 to 5.2 7.8 Frequency 0 0 0 0 3 49 70 1 0 0 0 125 .6 to -1.4 5.2 to -5.6 3.4 to 7.

Thus we can say with a 97. So we can say that approximately (3/124*100) =2.58% confidence level that the daily return on this fund will not exceed -1.Historical Method From the table above the number of days when we get a return less than or equal to zero is 3.42% of the times the daily returns will be less than 0.8% Graph 4.5 Graph showing distribution of daily returns 126 .

31434 .83645 Maximum Loss Below Expected Average for next 6 months 95% 99% -6.59234 -0.Variance-Covariance Method Table 4. value at risk & maximum loss Standard Deviation Value at Risk 95% 99% 127 0.8c Table showing standard deviation.59599 -9.358992 -0.

59234% and at 99% we get the VaR value as -0.9a Table showing range of returns 128 .Max.83645% The maximum loss that can occur at 95% confidence is -6.8003 1.1749 -2. returns in a day Min.59599% and at 99% confidence the maximum loss is -9.31434% 6) BUILD INDIA FUND Table 4. returns in a day Range Interpretation 3.7495 At 95% we get the VaR value as -0.

8 to 3.6 3.8 Frequency 0 0 0 0 4 49 69 1 0 0 0 129 .4 -5.9b Table showing frequency distribution Class Interval -9 to -7.6 to 5.8 -1.6 to -1.6 -3.4 5.2 -7.Table 4.8 1.2 7.2 to 9 9 to 9.4 to -3.4 to 7.8 to 0 0 to 1.2 to -5.

8% Graph 4. So we can say that approximately (4/124*100) =3.Historical Method From the table above the number of days when we get a return less than or equal to zero is 4.23% of the times the daily returns will be less than 0.77% confidence level that the daily return on this fund will not exceed -1.6 Graph showing distribution of daily returns 130 . Thus we can say with a 96.

769 Interpretation At 95% we get the VaR value as -1.63876 -2.63876% and at 99% we get the VaR value as -2.Variance-Covariance Method Table 4.31413 -18.993187 -1.2485% and at 99% confidence the maximum loss is -25.769% 131 .2485 -25.31413% The maximum loss that can occur at 95% confidence is -18. value at risk & maximum loss Standard Deviation Value at Risk 95% 99% Maximum Loss Below Expected Average for next 6 months 95% 99% 0.9c Table showing standard deviation.


63151% Safe Money Fund 133 .44721% At 99% it is -0.28857% Save ‘n’ Grow Money Fund At 95% it is -0.5.20435% At 99% it is -0.1 SUMMARY OF FINDINGS Objective 1: To calculate Value at Risk The value at risk for the six funds varies as follows: Steady Money Fund At 95% it is -0.

63876% At 99% it is -2.27557% and at 99% confidence it is -3.83645% Build India Fund At 95% it is -1.21338% 134 .14901% Grow Money Plus Fund At 95% it is -0.87221% Growth Opportunities Plus Fund At 95% it is -0.At 95% it is -0. at 95% confidence it is -2.31413% Objective 2: To calculate maximum loss below expected loss The maximum loss that one might incur in the next six months is as follows: For Steady Money Fund.59234% At 99% it is -0.61766% At 99% it is -0.10552% At 99% it is -0.

03%. Growth Opportunities Plus Fund and Build India Fund.59599% and at 99% confidence it is -9. liquidity. Given the mushrooming Indian insurance industry and the increasing number of life insurance companies and various insurance schemes and products this sector is regarded as a perfect substitute for direct investment in the capital 135 .9787% and at 99% confidence it is -7.31434% For Build India Fund.2 SUGGESTIONS ULIPs as an investment avenue and as an asset class has gained immense popularity among the financially savvy Indian investors in the last decade due to many factors such as objective based investment. at 95% confidence it is -4. professional management.17502% and at 99% confidence it is -1.For Save ‘n’ Grow Money Fund. For Steady Money Fund and Save ‘n’ Grow Money Fund it was -0.71255% For Growth Opportunities Plus Fund. at 95% confidence it is -1. at 95% confidence it is -6.24855% and at 99% confidence it is -25.769% Objective 3: To determine the worst daily loss The worst daily loss possible was -1.87799% and at 99% confidence it is -9. 5.8% for Grow Money Plus Fund.65927% For Grow Money Plus Fund.03218% For Safe Money Fund. For Safe Money Fund it was -0. favorable returns.08%. at 95% confidence it is -18. etc. investor protection. at 95% confidence it is -6.

e. as well as sector-wise allocation has a great impact on performance of the fund. the risk involved is very high. Although.e. both these instruments are safe to invest in. The objectives of the study were to calculate value at risk. It was found from descriptive statistics that the Equity had the highest Standard Deviation i. On the other hand. Standard Deviation of Debt and Balanced is low i. since there has been an increase in the cost of living. be it an equity fund. however. An investor can easily achieve for the “small”. 5. the recommendations would include:  ULIP investment is one of the best available investment alternatives available for the investors who want to make more returns by taking comparatively lower levels of risk. a debt fund or a balanced fund.  All the funds have not performed well. if right investment is made in the right kind of ULIP thus helping him to trade off between risk and return and life security. 136 . it depends on the investor ability to take risk and invest in funds. investors should start saving early so as to get maximum returns. “medium” and “large” investors both individuals and corporates. It is suggested to do a careful study about the fund before deciding about investing in them. thus investment should be made with care in the Equity.  Fund manager should be very careful about the asset holding as it makes the impact on the fund’s performance.  Lastly. It was found that allocation.3 CONCLUSION This study entitled “Risk Analysis of Bharti AXA Life Insurance ULIP funds” was carried out from the investor’s point of view to help them in selecting the funds which suits their investment objectives in these highly volatile markets. calculate maximum loss below expected loss and to determine the worst daily loss.

Kothari (New Age International Publishers) 137 . and boundaries of life insurance as an investment avenue. It also gave me an opportunity to analyze various schemes. I got a clear knowledge about the functioning of ULIP. I understood various aspects of research in a more practical manner.  The project also provided me with the information regarding allocation of different funds in different sectors. benefits.MY LEARNING  I got an insight of how an organization works and the factors that influence it.  As I have undergone the process of research in a systematic way. the process.  During the internship. I learnt about the insurance industry. I clearly understood how to carry out a research. I also understood the various types of life insurance products available. starting from identifying a problem to eliciting the solutions to that problem. R. BIBLIOGRAPHY BOOKS  Research Methodology – C. present market and the future potential of this particular sector. the risk and the returns associated with every scheme. OTHER SOURCES Company’s internal records have also been referred to get the required       www.economywatch. ANNEXURE Net Asset Values of the six funds for six months 138 .in

6946 14.343 10.216 13.5953 10.0014 10.7894 10.8711 10.3919 10.7079 10.646 14.7133 14.4527 10.0774 11.3294 10.3417 10.6715 10.6988 14.9793 10.3549 10.5459 10.3601 10.5992 10.3306 10.2561 13.2226 10.3522 10.2545 13.694 14.5584 14.2113 13.6088 10.3535 10.3998 10.7474 10.6036 10.7275 10.6544 14.3719 10.8548 10.373 10.8481 10.4795 14.0092 10.3508 10.6857 14.6241 10.6286 14.7705 14.3879 10.5436 14.3456 10.3712 10.2204 13.2536 13.3627 10.7085 10.2563 13.5892 10.0011 11.4964 10.2263 13.4663 10.5912 10.2203 13.3892 10.2356 13.4622 10.2638 13.2133 13.7923 10.6366 14.225 13.2375 13.4984 10.833 10.7511 10.3773 10.7067 10.3905 10.011 11.3826 10.3495 10.4943 139 .3028 10.7426 14.3706 10.763 10.8924 10.52 14.2442 13.3354 11.2294 13.2616 13.6704 14.2583 13.4011 10.9358 10.8894 10.5948 10.3971 10.2422 Build India Fund 08-12-2010 08-11-2010 08-10-2010 08-09-2010 08-06-2010 08-05-2010 08-04-2010 08-03-2010 08-02-2010 07/30/2010 07/29/2010 07/28/2010 07/27/2010 07/26/2010 07/23/2010 07/22/2010 07/21/2010 07/20/2010 07/19/2010 07/16/2010 07/15/2010 07/14/2010 07/13/2010 07-12-2010 07-09-2010 07-08-2010 07-07-2010 07-06-2010 07-02-2010 07-01-2010 06/30/2010 06/29/2010 06/28/2010 06/25/2010 06/24/2010 06/23/2010 06/22/2010 06/21/2010 06/18/2010 06/17/2010 13.2267 13.2562 13.041 11.5681 10.2165 13.6561 14.2354 13.7171 14.9138 10.6162 10.7075 14.8209 10.3984 10.447 14.646 10.5782 10.572 10.2057 13.0132 11.6965 10.8821 10.2553 13.975 10.0777 11.4789 14.2206 13.8239 10.5209 10.5499 10.5815 10.6582 14.3194 10.2606 13.4846 14.3679 10.6593 14.Created Date Steady Money Fund Save`n`Grow Money Fund Safe Money Fund Grow Money Plus Fund Growth Opportunities Plus Fund 10.8431 10.2237 13.9042 10.9598 10.0312 11.5508 10.3614 10.7108 14.5504 14.6937 10.7417 14.2047 14.4806 10.2607 13.9818 10.915 10.2628 13.616 10.3119 10.2281 13.8121 10.2517 13.4064 10.567 10.7754 10.4453 10.5937 10.5295 14.9467 10.631 10.367 10.5482 14.0886 10.6033 10.4636 14.8396 10.4064 10.6326 10.5768 10.3693 10.5553 11.7205 14.8392 10.6705 10.364 10.409 10.3813 10.252 13.3404 10.3786 10.6059 14.6819 10.7092 10.8129 10.3866 10.6651 14.6447 14.5318 14.3443 10.8937 10.2639 13.3993 10.4124 10.0191 11.4687 10.4077 10.3412 10.7876 10.4763 14.88 10.2494 13.3958 10.6892 10.7755 10.599 10.3367 10.7388 10.8067 10.7567 10.8114 10.2538 13.6753 10.1082 11.7151 14.6058 10.5435 10.9702 11.9904 10.2181 13.2314 13.6222 14.5565 14.0631 11.4051 10.841 10.2597 13.2574 13.535 10.3637 10.8971 10.38 10.8517 10.993 10.

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