Marketing Strategies and Financial Statement Analysis

(SBI LIFE INSURANCE)

Submitted in partial fulfillment of the requirements

for the award of the degree of

Bachelor of Business Administration (BBA)

To
GuruGobindSinghIndraprasthaUniversity, Delhi

Guide: Ms. Shachi Submitted by: Ishita Mogha

Roll No. 14490301721

Institute of Innovation in Technology& Management,

New Delhi– 110058
Batch (2021-2024)

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 Certificate
I, Ms. ISHITA MOGHA , Roll No. 14490301721 certify
that the Project Report (BBA-114) entitled “Marketing
Strategies and Financial Statement Analysis on SBI Life
Insurance” is done by me and it is an authentic work carried out
by me at Institute of Innovation in Technology& Management.
The matter embodied in this project work has not been
submitted earlier for the award of any degree or diploma to the
best of my knowledge and belief.
Signature of the Student
Date:

Certified that the Project Report (BBA-311) entitled “ SBI LIFE

INSURANCE ” done by Ms. ISHITA MOGHA , Roll No.
14490301721 , is completed under my guidance.
Signature of the Guide
Name of the Guide: Ms. Shachi
Designation:
Date:

Countersigned
(Director/Project Coordinator)

2
 FORMAT FOR CONTENTS & LIST OF TABLES/FIGURES/ SYMBOLS

CONTENTS

S No Topic Page No
1 Certificate (s)
2 Chapter-1: Company Profile
3 Chapter-2: Marketing Strategies of The Company
4 Chapter-3: Financial Ratios
5 Chapter-4: CSR initiatives and Unique Practices
6 Chapter-5: Conclusion and Suggestions
7 References
8 Appendices

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 A PROJECT REPORT
ON
MARKETING STATREGIES
AND
FINANCIAL STATEMENT
ANALYSIS
ON

4
 Chapter 1 : Company Profile

The Company

SBI Life Insurance ('SBI Life' / 'The Company'), one of the

most trusted life insurance companies in India, was
incorporated in October 2000 and is registered with the
Insurance Regulatory and Development Authority of India
(IRDAI) in March 2001.
Serving millions of families across India, SBI Life's diverse
range of products caters to individuals as well as group
customers through Protection, Pension, Savings and Health
solutions.
Driven by 'Customer-First' approach, SBI Life places great
emphasis on maintaining world class operating efficiency and
providing hassle-free claim settlement experience to its customers
by following high ethical standards of service. Additionally, SBI
Life is committed to enhance digital experiences for its customers,
distributors and employees alike.
SBI Life strives to make insurance accessible to all, with its
extensive presence across the country through its 952 offices,
18,515 employees, a large and productive individual agent network
of about 146,057 agents, 50 corporate agents, a widespread
bancassurance network of 14 partners, more than 29,000 partner
branches, 114 brokers and other insurance marketing firms.

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Major Milestones

From humble beginning in 2001. SBI Life Insurance has

grown to become one of the largest Life Insurance companies
worldwide. Following are the major milestones in their
journey (year-wise) :
2001

 New Business Premium written in the year Rs 14.69

crores.
 Policies sold only through agency channel with 719
Advisors working for the company at the end of the
year.
2004

 AUM (Assets Under Management) crosses Rs. 1000 crores

for the first time.
 Horizon unit linked product launched in Jan 2005.

2005

 First new generation Private Life Insurance Company to

make profit: PAT for the year is Rs 2.03 crores.
2007

 Gross Written Premium crosses milestone of Rs 5000

crores - Rs 5622 crores.
 Company achieves cumulative breakeven wiping out all
accumulated losses.

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  Share capital increased by Rs 500 crores to Rs 1000
crores.
2010

 The number of branches of our Company exceeded 500

branches.
2011

 Achieves milestone of Profit after Tax of Rs 500 crores

– Rs 556 crores.
 Declared Maiden Dividend of 5%.

2016

 Renewal Premium Collection crosses milestone of Rs

10,000 crores – Rs 10,871 crores.
 Value Line Pt Ltd and McRitchie Investments Pt Ltd.
Bought stake of 1.95% each from SBI.
2017

 Achieves AUM (Assets Under Management) milestone of

Rs 1,00,000 crores – Rs 1,01,226 crores.
 Pan - India presence with network of 801 branches as
on March 31, 2017.
2018

 SBI Life got listed on BSE and NSE.

 Total Asset under Management (AuMs) of our Company
crossed Rs. 1 trillion
 Our Company clocked in profit after tax of Rs. 10
billion.
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2020

 New Business Annualised Premium Equivalent (APE) &

Individual New Business Premium crosses ₹ 100 billion
mark.
2021

 Gross written premium crosses ₹ 500 billion mark.

 Assets under Management achieves milestone of ₹ 2
trillion.
 Included in Benchmark index of NSE - NIFTY 50.

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Organizational Structure
SBI Life Insurance is a joint venture between State Bank of
India and BNP Paribas Assurance , the insurance arm of BNP
Paribas - the largest French company in the Euro Zone that
ranks fifth in the banking industry globally. It is 6th most
valuable international banking brand according to Brand
Finance 2008.
SBI Life's growth has been attributed to its affiliation to the
country's largest bank, the government owned State Bank of
India group, which along with its six associate banks has
arguably the world's largest branch network of over 16,000
across the country.
SBI Life has a multi - distribution model encompassing
bancassurance, retail agency channel of 68,000 insurance
advisors, institutional alliances and corporate distribution
channels.

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 Board of Directors

 Mr. Dinesh Kumar Khara Chairman

 Mr. Ashwini Kumar Tewari Non-Executive, Nominee Director

 Mr. Deepak Amin Independent Director

 Ms. Usha Sangwan Independent Director

 Mr. Mahesh Kumar Sharma Managing Director& CEO

 Mr. Ravi Krishnamurthy President Operations& IT

 Mr. Abhijit Gulanikar President Business Strategy

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  Mr. Sangramjit Sarangi President& Chief Financial Officer

 Mr. Prithesh Chaubey Appointed Actuary

 Mrs. Seema Trikannad EVP& Management Services

Product and Services

SBI Life, a leading life insurance company in India, offers a
range of life insurance plans and policies to help you, protect
you and your family.
Such plans are :
AROGYA SHIELD

 Health and Pure Term Life Cover under a single plan

 Affordable premiums
 Sum assured of Rs 5,00,000 to Rs 25,00,000 under Life
insurance cover
 Cashless claims for Health cover
 Avail tax benefits under section 80D of the Income Tax
Act, 1961 for payment of health insurance premium
 141 Day care procedures covered under Health Insurance
Coverage.
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SARAL JEEVAN BIMA
 Sum assured amount to the nominee in the event
of unfortunate death.

 It comes with a waiting period 45 days from the

date of commencement of risk. The waiting period
is not applicable if the policy is revived.

 Premium paid is eligible for tax deductions under

Section 80 C of Income Tax Act, 1961.

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POORNA SURAKSHA

 Life stage rebalancing

 Comprehensive critical illness coverage

 Waiver of premium on diagnosis of any of the

covered critical illness

 Fixed premium throughout the term of the policy.

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GRAMEEN BIMA
 Life cover with one time premium payment

 In the unfortunate event of death of the life assured

during the policy term, the nominee or legal heir will
receive on death as lump sum.

 Surrender is allowed after the first year of cover

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SMART SWADHAN PLUS
 Life insurance coverage

 100% return of total premium paid at maturity

 Option of regular, limited or single premiums and to choose

policy term

 Short application process

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SAMPOORN CANCER SURAKSHA
 Pay-outs independent of actual expenses

 Option of monthly income benefit

 Medical second opinion

 No medical examination

 Choice of three benefit structure

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  Sum assured reset benefit

 In built premium waiver benefit

Chapter 2 : Marketing Strategies of the Company

Market Share of the company (annual 2020-21)

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Comparison with major competitors

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 SWOT Analysis

SBI Life Insurance Strength

Diverse Revenue models

Over the years SBI Life Insurance has ventured into various businesses outside the
financial sector.

This has enabled the company do develop a diversified revenue stream beyond
Financial sector and Insurance (Life) segment.

Success of new product mix

SBI Life Insurance provides exhaustive product mix options to its customers.

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It helps the company in catering to various customers segments in the Insurance
(Life) industry.

SBI Life Insurance Weakness

Low investments oriented services

This can lead to competitors gaining advantage in near future.

SBI Life Insurance needs to increase investment into research and development
especially in customer services oriented applications.

Declining per unit revenue for SBI Life Insurance –

Competitiveness in the Insurance (Life) industry is putting downward pressure on

the profitability.

A starting guide to manage this situation for company name is objectively

assessing the present value propositions of the various products.

SBI Life Insurance Opportunities

Increasing customer base in lower segments

As customers have to migrate from un-organized operators in the Financial

industry to licensed players.

It will provide SBI Life Insurance an opportunity to penetrate entry level market
with a no-frill offering.

Local Collaboration

Tie-up with local players can also provide opportunities of growth for the SBI Life
Insurance in international markets.

The local players have local expertise while SBI Life Insurance can bring global
processes and execution expertise on table.

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SBI Life Insurance Threats
Changing demographics

As the baby boomers are retiring and new generation finding hard to replace
their purchasing power.

This can lead to higher profits in the short run but reducing margins over the
long run as young people are less brand loyal and more open to
experimentation.

Competitive pressures

As the new product launch cycles are reducing in the Financial industry and has
put additional competitive pressures.

Given the large customer base, SBI Life Insurance can't respond quickly to the
needs of the niche markets that disruptors are focusing on.

MARKETING STRATEGIES OVER 5 YEARS

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Chapter 3 : Financial Ratio
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1) WORKING CAPITAL RATIO

The working capital ratio, like working capital, compares current assets to
current liabilities and is a metric used to measure liquidity. The working
capital ratio is calculated by dividing current assets by current liabilities.
Current Assets
Working Capital Ratio = Current Liabilities

Interpretation
Assessing the health of a company in which you want to invest involves
measuring its liquidity. Liquidity refers to how easily a company can turn
assets into cash to pay short-term obligations. The working capital ratio can
be useful in helping you measure liquidity. A working capital ratio of 2 or
higher can indicate healthy liquidity and the ability to pay short-term
liabilities.

2) RETURN ON EQUITY

Return on equity is a measure of financial performance calculated by

dividing net income by shareholders' equity. Because shareholders'
equity is equal to a company’s assets minus its debt.
Net Income
ROE = Shareholde r ' s Equity

Interpretation
Return-on-equity, or ROE, is a metric used to analyse investment returns. It's a
measure of how effectively a company uses shareholder equity to generate
income. It can be consider a good ROE one that increases steadily over time.
That could indicate a company does a good job using shareholder funds to
increase profits. In turn, that company can increase shareholder value.

3) DEBT TO EQUITY RATIO

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The debt-to-equity (D/E) ratio compares a company’s total liabilities to its
shareholder equity and can be used to evaluate how much leverage a
company is using.
Total Liabilities
Debt / Equity = '
Total Shareholde r s Equity

Interpretation
The D/E ratio is an important metric used in corporate finance. It is a
measure of the degree to which a company is financing its operations
through debt versus wholly owned funds. More specifically, it reflects the
ability of shareholder equity to cover all outstanding debts in the event of a
business downturn.

4) GROSS MARGIN RATIO

Gross profit margin is a metric analysts use to assess a company's financial

health by calculating the amount of money left over from product sales after
subtracting the cost of goods sold (COGS).
Net Sales−COGS
Gross Margin Ratio = Net Sales

Interpretation

A low gross margin ratio does not necessarily indicate a poorly performing
company. It is important to compare gross margin ratios between companies
in the same industry rather than comparing them across industries. If a
company sells its products at a premium, with all other things equal, it has a
higher gross margin.

5) RETURN ON ASSESTS

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Return on Assets (ROA) refers to a financial ratio that indicates how
profitable a company is in relation to its total assets. Corporate
management, analysts, and investors can use ROA to determine how
efficiently a company uses its assets to generate a profit.
Net Profit
ROA = Total Assets

Interpretation

The metric is commonly expressed as a percentage by using a company's

net income and its average assets. A higher ROA means a company is more
efficient and productive at managing its balance sheet to generate profits
while a lower ROA indicates there is room for improvement.

6) INVENTORY TURNOVER RATIO

Inventory turnover is a financial ratio showing how many times a company

has sold and replaced inventory during a given period. Calculating
inventory turnover can help businesses make better decisions on pricing,
manufacturing, marketing, and purchasing new inventory.
Cost Of Goods Sold
Inventory Turnover Ratio = Average Value of Inventory

Interpretation

Inventory turnover measures how fast a company sells inventory. A low

turnover implies weak sales and possibly excess inventory, also known as
overstocking. It may indicate a problem with the goods being offered for
sale or be a result of too little marketing. On the other hand, a high turnover
implies either strong sales or insufficient inventory.

Chapter 4 : CSR Initiatives and Unique Practices

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The Corporate Social Responsibility Policy (hereafter referred to
as ‘Policy’) of SBI Life Insurance (“the Company”) has been
designed in consonance with Companies Act, 2013 and the rules /
directions made there under.
Aligning to national priorities and critical areas of community
development, SBI Life’s CSR initiatives are focussed on
education and healthcare, enabling mainstreaming of
underserved communities towards inclusive and sustainable
growth.
In the year 2020-21, SBI Life impacted over 4,30,000
beneficiaries and positively engaged with communities through
its CSR activities across India.

FOR EDUCATION
Education is one of the most powerful tools for ensuring a nation’s
development. At SBI Life, we believe holistic education:-
 Not only helps individuals nurture their hidden potential, but
also equips them with life skills

 Enhances employability

 Create equal opportunities

 Empowers weaker section of communities.

However, in spite of understanding the importance of education

and despite having an act that makes education a fundamental right
of every child up to 14 years. India still has millions of children
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who do not have access to education, on account of various socio-
cultural and economic reasons. Through its various CSR projects,
SBI Life ensures quality education for children, youth and women
from disadvantages of society through the following approaches:-
 Project TARA Girls for education & holistic development
of lesser privileged girl children | Delhi

 Prevention of child sexual abuse through awareness and

training to both children as well as adults across
multiple Indian States

 Upliftment of children with special needs through

education and holistic development | Odisha

 Prevention of child sexual abuse through awareness and

training to both children as well as adults across
multiple Indian States.

FOR HEALTSH

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With the outbreak of the novel coronavirus pandemic in 2020,
India’s healthcare sector was challenged not only to fight the
COVID-19 crisis, but also to find a balance to improve the existing
healthcare facilities. With the aim of serving the unprivileged, SBI
Life through its CSR-healthcare initiatives ensured affordable and
accessible healthcare services through:-

 Support with medical aid/ cost of treatment

 Screening camps for early detection of disabilities among

children

 Support to medical institutes with essential equipment and

infrastructure

 Support towards healthcare of the elderly residing in old age

homes

In addition to regular healthcare initiatives, there are some more

approaches across multiple states as follows:-

 Improving health of pregnant and lactating women through a

1000 days program for ensuring healthy new lives of babies
& children up to 5 years | Rajasthan & Madhya Pradesh

 Medical treatment of underprivileged children | Telangana

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 COVID-19 testing and vaccination to underprivileged people
through AI enabled mobile clinics | New Delhi

 Joining nation’s fight against the pandemic, by providing

protective gears to the frontline workers, government
authorities like Police department, medical authorities etc. |
16 Indian states

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 FOR ENVIRONMENT And DISASTER

India has been subjected to its own share of natural disaster that
includes drought, flood, cyclone, earthquakes. As a part of its
disaster relief efforts, SBI Life extended support to:-

 Underprivileged families affected by Cyclone Amphan in

west Bengal.

 Families affected by Cyclone Nisarg in Maharashtra.

SBI Life also contributed towards the PM CARES FUND, with the
primary objective of dealing with any kind of emergency/ distress
situation, like the current pandemic situation.

SBI Life also works towards environment conservation with

initiatives like:-

 Plantation

 Ensuring maintenance of green belts in urban areas

 Promoting renewable energy.

There are 2 approaches in which SBI Life took the initiative:-

 Relief support during Cyclone Amphan, West Bengal and

Cyclone Nisarg, Maharashtra

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 Promoting renewable energy, plantations, maintenance of
green belts in urban areas | Maharashtra & Odisha

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 Chapter 5: CONCLUSION AND SUGGESTION

CONCLUTION

Economic growth & development has been widely accepted as

major goal of national policy in country. Economic growth is today
decided more by human capital than material capital. Therefore
Human Resources is significant asset for country but this human
life is full of uncertainties & risks.

Preparing for uncertainties SBI life Insurance company is came out

with the different insurance policy as a solution for delegating
worries. It reimburses people for levered losses in the event of an
unfortunable occurrence such as illness, accident, & death. At the
sometime, it can encourage safety measure, provide investment
capital, lend money, & help to reduce anxiety for society at large.
SBI Life Insurance is to emerged as leading company offering a
comprehensive range of life Insurance & pension product at
competitive price, ensuring high standard of customer service &
world class operating efficiency. Different products are designed to
a suitable in different life event stage.

Bancassurance said, adding other channels too showed good

growth over the corresponding period last year. The company
plans to make insurance buying process quick, simple based on
well-informed judgment, which will satisfy customer in all
manners. As looking growing function of SBI Life Insurance
sector we assume that 100% function of human will become
insured in coming 2030 with different product in low cost.

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SUGGESTIONS

SBI Life Insurance can improve their sales by giving

advertisement in larger amount. They can launch some new
practices for poor people or below poverty line people. They can
also improve by changing marketing strategies such as to give
discounts at premiums. They can also provide loan at good price to
help the needy families or low paid workers.

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BIBLIOGRAPHY

www.sbilife.co.in

https://www.business-standard.com/company/sbi-life-insuran-
22045/financials-overview

https://economictimes.indiatimes.com

https://www.capitalmarket.com/Company-Information/
Information/Management/SBI-Life-Insurance-Company-Ltd/
22045

https://www.investopedia.com

https://www.domain-b.com/finance/insurance/sbi_life_insurance/
20100826_ranking.html

https://www.bseindia.com/stock-share-price/sbi-life-insurance-
company-ltd/sbilife/540719

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