A Training Report on Ratio Analysis of

Ageas Federal Life Insurance Corporation

vs.
Life Insurance Corporation of India for the year 2023
Submitted in partial fulfilment of the requirement of the degree of
Bachelor of Business Administration – BBA(IIFSB)
To
J. C. Bose University of Science and Technology
YMCA, FARIDABAD
by
Ashutosh Singh
21020304018
Batch: - 2021-2024
Under the Supervision of
Dr. Richa Khugshal
Assistant Professor

DEPARTMENT OF MANAGEMENT STUDIES

SATYUG DARSHAN INSTITUTE OF ENGINEERING &
TECHNOLOGY
FARIDABAD
DECEMBER, 2023
 DECLARATION

I hereby declare that this training report retitled Ratio Analysis of Ageas
Federal Life Insurance Company vs. Life Insurance Corporation of India
for the year 2023 by Ashutosh Singh, being submitted in partial fulfilment of
the requirement for the Degree of the Bachelor of Business Administration –
BBA(IIFSB) in under Department of Management Studies of Satyug Darshan
Institute of Engineering and Technology, Faridabad, during the academic year
2021-24, is a bona fide record of my original work carried out under guidance
and supervision of Dr. Richa Khugshal, Assistant Professor and has not been
presented elsewhere.

I further declare that the thesis does not contain any part of my work which has
been submitted for the award of any degree either in this college/university or in
any other university.

Ashutosh Singh
21020304018

2|Page
 CERTIFICATE

This is certified that Ashutosh Singh of Satyug Darshan Institute of

Engineering and Technology has successfully completed the Report title “Ratio
Analysis of Ageas Federal Life Insurance Company vs. Life Insurance
Corporation of India for the year 2023” in partial fulfilment of requirement for
the completion of Bachelors of Business Administration (BBA-IIFSB) course as
prescribed by the J C Bose University of Science and Technology, YMCA,
Faridabad.

This project report is the record of the authentic work carried out by him during
the period from Aug-2023 to Nov-2023 he has worked under my guidance.

(Signature) (Signature)

Dr. Richa Khugshal Paras

Sharma

Assistant Professor, Industry

Experts

Management Studies Project

Guide

Project Guide

Date:

3|Page
 ACKNOWLEDGEMENT

I would like to express my sincere gratitude to my Industry Mentor & Internal

faculty Guide Paras Sharma & Dr. Richa Khugshal for giving me the
opportunity to work in this area. It would never be possible for me to take my
understanding to this level without his/her innovative and his/her relentless
support and encouragement.

I hereby express my gratitude to my parents and friends for being a strong

source of encouragement and motivation.

Ashutosh Singh

4|Page
 PREFACE

Many Students may have work on this project in different way, I have also tried
to work on this project in a different way. It was for the first time I got the
opportunity to work in such a prestigious and well-known organization and
things which I have experienced in my training time are going to help
throughout my life time. I have worked on this project with great enthusiasm
and zeal.

Ashutosh Singh

Date:

5|Page
 Index

Page
S No. Particulars Remarks
No.

1 Introduction to Topic

2 Company Profile

3 Research Methodology
Chapters

4 Data Analysis and Interpretation

5 Findings of the Study

6 Conclusion

7 Suggestions

8 Bibliography

9 Annexure

6|Page
 Chapter – 1
Introduction to Topic
What Is Insurance?
Insurance is a contract, represented by a policy, in which a policyholder receives
financial protection or reimbursement against losses from an insurance
company. The company pools clients’ risks to make payments more affordable
for the insured. Most people have some insurance: for their car, their house,
their healthcare, or their life.

Insurance policies hedge against financial losses resulting from accidents,

injury, or property damage. Insurance also helps cover costs associated with
liability (legal responsibility) for damage or injury caused to a third party.

KEY TAKEAWAYS
 Insurance is a contract (policy) in which an insurer indemnifies another
against losses from specific contingencies or perils.
 There are many types of insurance policies. Life, health, homeowners,
and auto are among the most common forms of insurance.
 The core components that make up most insurance policies are the
premium, deductible, and policy limits.

How Insurance Works

Many insurance policy types are available, and virtually any individual or
business can find an insurance company willing to insure them—for a price.
Common personal insurance policy types are auto, health, homeowners, and life
insurance. Most individuals in the United States have at least one of these types
of insurance, and car insurance is required by state law.

Businesses obtain insurance policies for field-specific risks, for example, a fast-
food restaurant's policy may cover an employee's injuries from cooking with a
deep fryer. Medical malpractice insurance covers injury- or death-related
liability claims resulting from the health care provider's negligence

7|Page
or malpractice. Businesses may be required by state law to buy specific
insurance coverages.
There are also insurance policies available for very specific needs, such as
kidnap, ransom and extortion insurance (K&R), identity theft insurance, and
wedding liability and cancellation insurance.

Insurance Policy Components

Understanding how insurance works can help you choose a policy. For instance,
comprehensive coverage may or may not be the right type of auto insurance for
you. Three components of any insurance type are the premium, policy limit, and
deductible.
Premium
A policy’s premium is its price, typically a monthly cost. Often, an insurer takes
multiple factors into account to set a premium. Here are a few examples:
 Auto insurance premiums: Your history of property and auto claims,
age and location, creditworthiness, and many other factors that may vary
by state.
 Home insurance premiums: The value of your home, personal
belongings, location, claims history, and coverage amount.
 Health insurance premiums: Age, sex, location, health status, and
coverage levels.
 Life insurance premiums: Age, sex, tobacco use, health, and amount of
coverage.

Much depends on the insurer's perception of your risk for a claim. For example,
suppose you own several expensive automobiles and have a history of reckless
driving. In that case, you will likely pay more for an auto policy than someone
with a single midrange sedan and a perfect driving record. However, different
insurers may charge different premiums for similar policies. So, finding the
price that is right for you requires some legwork.

Policy Limit
The policy limit is the maximum amount an insurer will pay for a covered
loss under a policy. Maximums may be set per period (e.g., annual or policy

8|Page
term), per loss or injury, or over the life of the policy, also known as the lifetime
maximum.
Typically, higher limits carry higher premiums. For a general life insurance
policy, the maximum amount that the insurer will pay is referred to as the face
value. This is the amount paid to your beneficiary upon your death.
The federal Affordable Care Act (ACA) prevents ACA-compliant plans from
instituting a lifetime limit for essential healthcare benefits such as family
planning, maternity services, and paediatric care.

Deductible
The deductible is a specific amount you pay out of pocket before the insurer
pays a claim. Deductibles serve as deterrents to large volumes of small and
insignificant claims.
For example, a $1,000 deductible means you pay the first $1,000 toward any
claims. Suppose your car's damage totals $2,000. You pay the first $1,000, and
your insurer pays the remaining $1,000.
Deductibles can apply per policy or claim, depending on the insurer and the
type of policy. Health plans may have an individual deductible and a family
deductible. Policies with high deductibles are typically less expensive because
the high out-of-pocket expense generally results in fewer small claims.

Types of Insurance
There are many different types of insurance. Let’s look at the most important.
Health Insurance
Health insurance helps covers routine and emergency medical care costs, often
with the option to add vision and dental services separately. In addition to an
annual deductible, you may also pay copays and coinsurance, which are your
fixed payments or percentage of a covered medical benefit after meeting the
deductible. However, many preventive services may be covered for free before
these are met.
Health insurance may be purchased from an insurance company, an insurance
agent, the federal Health Insurance Marketplace, provided by an employer, or
federal Medicare and Medicaid coverage.

9|Page
The federal government no longer requires Americans to have health insurance,
but in some states, such as California, you may pay a tax penalty if you don't
have insurance.
Home Insurance
Homeowners insurance (also known as home insurance) protects your home,
other property structures, and personal possessions against natural disasters,
unexpected damage, theft, and vandalism. Renter's insurance is another type of
homeowners insurance.
Homeowner insurance won't cover floods or earthquakes, which you'll have to
protect against separately.
Your lender or landlord will likely require you to have homeowners’ insurance
coverage. Where homes are concerned, you don't have coverage or stop paying
your insurance bill, your mortgage lender is allowed to buy homeowners
insurance for you and charge you for it.

Auto Insurance
Auto insurance can help pay claims if you injure or damage someone else's
property in a car accident, help pay for accident-related repairs on your vehicle,
or repair or replace your vehicle if stolen, vandalized, or damaged by a natural
disaster.
Instead of paying out of pocket for auto accidents and damage, people pay
annual premiums to an auto insurance company. The company then pays all or
most of the covered costs associated with an auto accident or other vehicle
damage.
If you have a leased vehicle or borrowed money to buy a car, your lender or
leasing dealership will likely require you to carry auto insurance. As with
homeowners’ insurance, the lender may purchase insurance for you if necessary.

Life Insurance
A life insurance policy guarantees that the insurer pays a sum of money to your
beneficiaries (such as a spouse or children) if you die. In exchange, you pay
premiums during your lifetime.
There are two main types of life insurance. Term life insurance covers you for a
specific period, such as 10 to 20 years. If you die during that period, your

10 | P a g e
beneficiaries receive a payment. Permanent life insurance covers your whole
life as long as you continue paying the premiums.

Travel Insurance
Travel insurance covers the costs and losses associated with traveling, including
trip cancellations or delays, coverage for emergency healthcare, injuries and
evacuations, and damaged baggage, rental cars, and rental homes.

Benefits of Insurance
Insurance policies benefit people as well as society as a whole in various ways.
Along with the obvious benefits of insurance, others are not much discussed or
talked about.
1. Cover against Uncertainties
It is one of the most prominent and crucial benefits of insurance. The insured
individual or organizations are indemnified under the insurance policies against
losses. Buying the right type of insurance policy is indeed, a way to get
protection against losses arising from different uncertainties in life.
2. Cash Flow Management
The uncertainty of paying for the losses incurred out of pocket has a significant
impact on cash flow management. However, with an insurance policy by your
side, you can tackle this uncertainty with ease. The chosen insurance provider
pays in the event of happening of an insured event whenever they occur.
3. Investment Opportunities
Unit linked insurance plan, invest a part of the premium into several market
linked funds. This way, they enable you to invest money regularly to benefit of
market linked returns and fulfil your life goals.

Tax Benefits of Insurance

Other than the protection benefits of insurance policies, you can also avail
income tax benefits.

Section 80C

11 | P a g e
The premium paid to buy life insurance policies are eligible for deduction from
the taxable income, Under Section 80C of the Income Tax Act. The upper limit
for these deductions is Rs. 1.5 Lakh.

Section 80D
Health insurance premium paid to buy policies for yourself and your parents is
also tax-deductible under Section 80D of income tax Act 1961
Section 10(10D)
The life insurance benefits that you or the insurance policy nominee will receive
from the insurer are tax-exempted under this section.
You can claim these tax benefits of insurance at the time filing your income tax
returns.

FAQ?

Is Insurance an Asset?
Depending on the type of life insurance policy and how it is used, permanent or
variable life insurance could be considered a financial asset because it can build
cash value or be converted into cash. Simply put, most permanent life insurance
policies have the ability to build cash value over time

The Bottom Line

Insurance helps to protect you and your family against unexpected financial
costs and resulting debts or the risk of losing your assets. Insurance helps
protect you from expensive lawsuits, injuries and damages, death, and even total
losses of your car or home.
Sometimes, your state or lender may require you to carry insurance. Although
there are many insurance policy types, some of the most common are life,
health, homeowners, and auto. The right type of insurance for you will depend
on your goals and financial situation.

Regulatory Authority
Insurance Regulatory and Development Authority of India (IRDAI), is a
statutory body formed under an Act of Parliament, i.e., Insurance Regulatory
and Development Authority Act, 1999 (IRDAI Act 1999) for overall supervision
and development of the Insurance sector in India.
12 | P a g e
13 | P a g e
 Chapter – 2
Company’s Profile

 This focus on human relationships has bolstered our growth over the
years. It has helped us make a positive difference in the lives of all our
stakeholders, be it our customers, employees, shareholders, or the
community in general.

 While we have experienced some challenging times, our willingness to

prepare, perform and persevere has helped us to push through any
obstacles that the road to success presents. We have declared profit for
eleven consecutive years while continuing to strengthen our performance
on all key parameters. Our commitment to staying attuned to customers’
needs and preferences has helped us consistently remain in the top
quartile of all persistency buckets.

 We have been consistently recognized as a Great Place to Work®,

proving the success of our employee development and employee
engagement programs.

 As we continue on our journey of transformation, we are confident of

being able to leverage our strengths, so that we stay ahead of the curve in
today’s constantly changing landscape and remain truly.

14 | P a g e
Our Values
Our four values – Care, Dare, Deliver and Share – are the cornerstones that guide our
journey. Our values reflect who we are and the principles that guide us. They serve as
a foundation for our identity and shape the way we conduct ourselves, and most
importantly, our business.

CSR Initiatives
 Helping needy patients with quality medical care

GSBS Medical Trust is a charitable entity operating in Central Mumbai,

offering diagnostic services and treatment to needy patients at extremely
reasonable rates on a ‘no profit-no loss’ basis. We assist the Trust in
various medical activities and projects including procurement of
diagnostic equipment, enhancement of medical and general infrastructure,
and running of the four diagnostic centres.

 Supporting our nation’s budding cricketers

We support the Dilip Vengsarkar Foundation, a prominent sports Trust

run by former Indian cricketer Dilip Vengsarkar. We provide financial
support to meritorious players in the age group of 8-18 years from
disadvantaged financial backgrounds who are enrolled with the Cricket
Academy run by the Foundation at Mahul in Mumbai. In addition to free
coaching, we also cover their other expenses such as the cricketing kit,
clothing, and nutritious food during practice and matches, as well as
arrange wellness programs like physiotherapy sessions. Our support also
helps the young athletes to gain experience by participating in local and
international tournaments. In an effort to contribute to the environment
and community, with our support, the Dilip Vengsarkar Foundation has
also undertaken plantation of hundreds of trees.

15 | P a g e
 Working towards the upliftment of rural India

We are associated with this Foundation which works for the upliftment of
rural India in multiple areas including education, sports, and healthcare.
We have financially assisted the Foundation in setting up a multi-
specialty hospital on its premises with 100 beds, Emergency Critical Care
ward and Cardiac Care Centre. This hospital serves the people of 20-30
nearby villages who do not have access to decent medical facilities. The
Trust has also initiated various environmental projects on its premises
including tree plantation, capacity enhancement and maintenance of the
freshwater pond, and water harvesting for conservation of water during
the summer months when there is scarcity.

 Enhancing the mental wellbeing of our nation’s athletes

We have partnered with the Abhinav Bindra Foundation Trust (ABFT), a

non-profit organization that has dedicated itself to sporting excellence.
The main pillars on which ABFT works are based on - Mental Wellness,
Intervention, Education, and Social Upliftment. The initiative – Athlete
Mental Wellness (AMW) is aimed at curating workshops and sessions for
athletes, coaches and administrations. ABFT aims to incorporate AMW
into the Indian sporting ecosystem. This will benefit 200+ athletes,
between the ages of 12-25 years, across the ABFT sporting ecosystem in
Karnataka, Maharashtra, Odisha, Punjab and New Delhi at all levels of
sport. The Trust also has specific programs for empowerment of female
athletes in the country.

16 | P a g e
 Life Insurance Corporation of India

Life Insurance in its modern form came to India from England in the year 1818.
Oriental Life Insurance Company started by Europeans in Calcutta was the first
life insurance company on Indian Soil. All the insurance companies established
during that period were brought up with the purpose of looking after the needs
of European community and Indian natives were not being insured by these
companies. However, later with the efforts of eminent people like Babu Motilal
Seal, the foreign life insurance companies started insuring Indian lives. But
Indian lives were being treated as sub-standard lives and heavy extra premiums
were being charged on them. Bombay Mutual Life Assurance Society heralded
the birth of first Indian life insurance company in the year 1870, and covered
Indian lives at normal rates. Starting as Indian enterprise with highly patriotic
motives, insurance companies came into existence to carry the message of
insurance and social security through insurance to various sectors of society.
Bharat Insurance Company (1896) was also one of such companies inspired by
nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance
companies. The United India in Madras, National Indian and National Insurance
in Calcutta and the Co-operative Assurance at Lahore were established in 1906.
In 1907, Hindustan Co-operative Insurance Company took its birth in one of the
rooms of the Obasanjo, house of the great poet Rabindranath Tagore, in
Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later
Bombay Life) were some of the companies established during the same period.
Prior to 1912 India had no legislation to regulate insurance business. In the year
1912, the Life Insurance Companies Act, and the Provident Fund Act were
passed. The Life Insurance Companies Act, 1912 made it necessary that the
premium rate tables and periodical valuations of companies should be certified

17 | P a g e
by an actuary. But the Act discriminated between foreign and Indian companies
on many accounts, putting the Indian companies at a disadvantage.

Life Insurance Corporation continues to be the dominant life insurer even in the
liberalized scenario of Indian insurance and is moving fast on a new growth
trajectory surpassing its own past records. Life Insurance Corporation has
issued over one crore policies during the current year. It has crossed the
milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a
healthy growth rate of 16.67% over the corresponding period of the previous
year.
Objectives
 Spread Life Insurance widely and in particular to the rural areas and to
the socially and economically backward classes with a view to reaching
all insurable persons in the country and providing them adequate financial
cover against death at a reasonable cost.
 Maximize mobilization of people's savings by making insurance-linked
savings adequately attractive.
 Bear in mind, in the investment of funds, the primary obligation to its
policyholders, whose money it holds in trust, without losing sight of the
interest of the community as a whole; the funds to be deployed to the best
advantage of the investors as well as the community as a whole, keeping
in view national priorities and obligations of attractive return.
 Conduct business with utmost economy and with the full realization that
the moneys belong to the policyholders.
 Act as trustees of the insured public in their individual and collective
capacities.
 Meet the various life insurance needs of the community that would arise
in the changing social and economic environment.
 Involve all people working in the Corporation to the best of their
capability in furthering the interests of the insured public by providing
efficient service with courtesy.
 Promote amongst all agents and employees of the Corporation a sense of
participation, pride and job satisfaction through discharge of their duties
with dedication towards achievement of Corporate Objective.

18 | P a g e
MISSION

 "Ensure and enhance the quality of life of people through financial

security by providing products and services of aspired attributes with
competitive returns, and by rendering resources for economic
development."

Vision
 "A trans-nationally competitive financial conglomerate of significance
to societies and Pride of India."

19 | P a g e
 Operations
Life Insurance Vs. Other Savings

Contract Of Insurance:
A contract of insurance is a contract of utmost good faith technically known as
uberrima fides. The doctrine of disclosing all material facts is embodied in this
important principle, which applies to all forms of insurance. At the time of
taking a policy, policyholder should ensure that all questions in the proposal
form are correctly answered. Any misrepresentation, non-disclosure or fraud in
any document leading to the acceptance of the risk would render the insurance
contract null and void.

Protection:
Savings through life insurance guarantee full protection against risk of death of
the saver. Also, in case of demise, life insurance assures payment of the entire
amount assured (with bonuses wherever applicable) whereas in other savings
schemes, only the amount saved (with interest) is payable.

Aid To Thrift:
Life insurance encourages 'thrift'. It allows long-term savings since payments
can be made effortlessly because of the 'easy instalment' facility built into the
scheme. (Premium payment for insurance is either monthly, quarterly, half
yearly or yearly). For example: The Salary Saving Scheme popularly known as
SSS, provides a convenient method of paying premium each month by
deduction from one's salary. In this case the employer directly pays the deducted
premium to LIC. The Salary Saving Scheme is ideal for any institution or
establishment subject to specified terms and conditions.

Liquidity:
In case of insurance, it is easy to acquire loans on the sole security of any policy
that has acquired loan value. Besides, a life insurance policy is also generally
accepted as security, even for a commercial loan.

Tax Relief:
Life Insurance is the best way to enjoy tax deductions on income tax and wealth
tax. This is available for amounts paid by way of premium for life insurance
subject to income tax rates in force. Assesses can also avail of provisions in the
law for tax relief. In such cases the assured in effect pays a lower premium for
insurance than otherwise.
20 | P a g e
Money When You Need It:
A policy that has a suitable insurance plan or a combination of different plans
can be effectively used to meet certain monetary needs that may arise from
time-to-time. Children's education, start-in-life or marriage provision or even
periodical needs for cash over a stretch of time can be less stressful with the
help of these policies. Alternatively, policy money can be made available at the
time of one's retirement from service and used for any specific purpose, such as,
purchase of a house or for other investments. Also, loans are granted to
policyholders for house building or for purchase of flats (subject to certain
conditions).

21 | P a g e
 Chapter – 3
Research Methodology
Research
Research takes place with the purpose of acquiring knowledge to contribute to
further investigation or process to inform action, to prove a theory, or to reach a
result. To produce fruitful experience, the Research must be of high quality.

 Research is a way to build knowledge.

 It is an essential requirement to start analyzing, writing, reading, and
distributing information.
 It nourishes and opens up the minds.
 With Research, different understanding issues seem easy.
 Research helps to build confidence and positivity to try on
opportunities.

Research Methodology
Research methodology refers to the systematic process used by researchers to
design, conduct, and analyze research studies. It involves a set of procedures,
techniques, and tools that are employed to collect and analyze data in a rigorous
and scientific manner. Research methodology is an important aspect of any
research study, as it determines the reliability, validity, and generalizability of
the findings.

The research methodology typically includes the following steps:

1. Research design: This involves identifying the research problem,
formulating research questions, and selecting an appropriate research
design such as quantitative, qualitative, mixed-methods, or case study.
2. Data collection: This involves identifying the sources of data, selecting
appropriate sampling techniques, and collecting data using methods such
as surveys, interviews, observations, or experiments.

22 | P a g e
 3. Data analysis: This involves processing and analyzing the collected data
using appropriate statistical or qualitative analysis techniques.
4. Results: This involves reporting the results of the analysis in a clear and
concise manner, often in the form of tables, graphs, or charts.
5. Conclusion: This involves interpreting the results and drawing
conclusions about the research questions and objectives.
6. Limitations and future directions: This involves identifying the
limitations of the study and suggesting future directions for research.

In summary, research methodology is the systematic and scientific process used

by researchers to design, conduct, and analyze research studies. The
methodology is designed to ensure the rigor and validity of the research findings
and to enable other researchers to replicate the study.

What is a Research Design?

By the term ‘research’, we can understand that it’s a collection of data that
includes critical information by taking research methodologies into
consideration. In other words, it is a compilation of information or data explored
by setting a hypothesis and consequently coming up with substantive findings in
an organized way. Research can be done on an academic as well as on a
scientific basis as well. Let’s first understand what a research design actually
means.
A Research Design is simply a structural framework of various research
methods as well as techniques that are utilized by a researcher.

Types of Research Design

1. Descriptive Research Design
2. Analytical Research Design
3. Fundamental Research Design
4. Conceptual Research Design
5. Applied Research Design
6. Qualitative Research Design
7. Quantitative Research Design

23 | P a g e
  Descriptive Research is a type of research that is used to describe the
characteristics of a population.
 Analytical Research is a specific type of research that involves critical
thinking skills and the evaluation of facts and information relative to the
research being conducted.
 Fundamental Research is defined as basic and applied research in the
areas of science and engineering where the resulting information is
intended to be published and shared broadly.
 Conceptual Research as the name suggests, is research that relates to
abstract concepts and ideas.
 Applied research refers to scientific study and research that seeks to
solve practical problems. Applied research is used to find solutions to
everyday problems, cure illness, and develop innovative technologies,
rather than to acquire knowledge for knowledge's sake.
 Qualitative research is research dealing with phenomena that are
difficult or impossible to quantify mathematically, such as beliefs,
meanings, attributes, and symbols.
 Quantitative research refers to the systematic empirical investigation of
any phenomena via statistical, mathematical or computational techniques.
The objective of quantitative research is to develop and employ
mathematical models, theories and/or hypotheses pertaining to
phenomena.

My Design “Analytical Research Design”

Analytical research definition: Analytical research is a specific type of research

that involves critical thinking skills and the evaluation of facts and information
relative to the research being conducted. A variety of people including students,
doctors and psychologists use analytical research during studies to find the most
relevant information.

Importance of analytical research

24 | P a g e
  The goal of analytical research is to develop new ideas that are more
believable by combining numerous minute details.
 The analytical investigation is what explains why a claim should be
trusted. Finding out why something occurs is complex. You need to be
able to evaluate information critically and think critically.
 This kind of information aids in proving the validity of a theory or
supporting a hypothesis. It assists in recognizing a claim and determining
whether it is true.

Sample Design: - In research methodology, sample design refers to the process

of selecting a sampling design is definite plan for obtaining a sample from a
given population. It refers to the technique or the procedures the researcher
would adopt in selecting items for the sample. Sample design may as well lay
down the number of items to be included in the sample i.e., the size of the
sample.

Types of Sampling
1. Random
2. Non-random

Random: - Random sampling is a part of the sampling technique in which each

sample has an equal probability of being chosen. A sample chosen randomly is
meant to be an unbiased representation of the total population.
Non- Random Sampling: - Non-random sampling is a sampling technique
where the sample selection is based on factors other than just random chance. In
other words, non-random sampling is biased in nature. Here, the sample will be
selected based on the convenience, experience or judgment of the researcher.
In this project we have taken the random sample for taking the comparative
analysis of Life Insurance Company.

Sample Size: - In statistics, the sample size is the measure of the number of
individual samples used in an experiment. For example, if we are testing 50
samples of people who watch TV in a city, then the sample size is 50. We can
also term it Sample Statistics.

25 | P a g e
Data Collection method: -
1. Primary
2. Secondary data

In this report we have use the secondary data for the study on the

“Ratio Analysis of Ageas Federal Life Insurance Company vs.

Life Insurance Corporation of India for the year 2023”

26 | P a g e
 Objective of the study-

 To analyses the company’s position in different year.

 By using ratio analysis, found the premium growth of the
company.
 To analyses the changes in their premium, expense, commission
etc.
Limitations of the Study: -
 Data limitations: The study may be limited by the availability and
quality of data by the company.
 Sample selection bias: The study may be affected by the bias in the
selection of the sample of financial statements of companies that are
being analyzed.
 Methodological limitations: The study may be limited by the use of
inappropriate research methods, sampling techniques, or statistical
analyses.
 Reliability and validity of data: The study may be limited by the
reliability and validity of the data collected, particularly if the data is self-
reported or subject to bias.
 Generalizability of findings: The findings of the study may be limited in
their generalizability to other contexts, depending on the sample and
methods used.
 Time limitations: The study may be limited by the time frame within
which the research is conducted, which may not be long enough to
capture all relevant factors.

27 | P a g e
 Chapter – 4
Data Analysis and Interpretation

In this training report, we delve into a comprehensive data analysis comparing

the performance of two prominent life insurance companies, LIC (Life
Insurance Corporation of India) and HDFC Life Insurance. The analysis
encompasses various critical metrics and key performance indicators, including
premium revenue, policyholder growth, claims settlement efficiency, and
market penetration. By meticulously scrutinizing their financial reports,
customer feedback, and market share, we aim to provide an insightful and data-
driven assessment of these insurers' competitive positions. This analysis will
offer valuable insights into the strengths and weaknesses of both LIC and
HDFC Life, aiding stakeholders in making informed decisions within the
dynamic and highly competitive life insurance industry.

In this Report We are going to Compare the Companies on the basis of

their performance in the market and their financial statements we will
compare the on the basis of certain Ratios:-
1. Premium Growth Ratio
2. Persistency Ratio
3. Claim Settlement Ratio
4. Solvency Ratio
5. Loss Ratio
6. Expense Ratio
7. Commission Expense Ratio
8. Combined Ratio

Data analysis is the cornerstone of modern decision-making, offering a window

into the hidden insights and trends that underpin various aspects of business,
science, and daily life. In this report, we embark on a journey of exploration
through data, with the goal of extracting meaningful patterns and actionable
information. By employing advanced analytical techniques and tools, we aim to
unlock the potential of the data at hand, enabling us to make informed choices,
solve complex problems, and unearth opportunities for improvement and
growth. In the pages that follow, we will dive into the intricacies of our dataset,

28 | P a g e
drawing out insights that will drive our understanding and decision-making
processes.
1. Premium Growth Ratio
The growth in premiums collected over the years may be accomplished by
selling more policies or increasing the rates of existing policies (Barth &
Eckles, 2009 ). Premium growth may imply a higher rate of market penetration,
customer confidence, and better performance of an insurer.

Formula for Premium Growth Ratio is:-

Gross Premium Written ( Y 1 ) −Gross Premium Written(Y 0)
¿ × 100
Gross PremiumWritten (Y 0)

Ratio:-
Premium Growth Ratio (in
Company
%)
LIC 10.91%

Arega Life 21.67%

Premium Growth Ratio

22.50%

17.50%

12.50%

7.50%

2.50%

LIC Arega Life

Premium Growt Ratio 0.1091 0.2167

29 | P a g e
2. Persistency Ratio
This ratio helps you understand how persistent customers have been in
renewing their policies every year. It is measured at different intervals —13th
month, 25th month, 37th month and 61st month. It gauges the trust of the
customers which they have in the long-term products and services being offered
by the insurer.

Formula for Persistency Ratio is: -

Number of Policyholders payingthe premium
¿ × 100
Net Active Policyholders
Ratio:-
Persistency Ratio (in%)
Company
13th 61th

LIC 78.37% 62.73%

Ageas Life 87% 52%

Persistency Ratio
95.00%
85.00%
75.00%
65.00%
55.00%
45.00%
35.00%
25.00%
15.00%
5.00%
LIC Ageas
13th 0.7837 0.87
61th 0.6273 0.52

30 | P a g e
3. Claim Settlement Ratio
A higher CSR indicates that an insurance company is more likely to honor its
commitments to policyholders and efficiently settle claims. It is a critical
transparency tool for customers, helping them gauge the reliability and
performance of insurance providers.

Formula for Claim Settlement Ratio is: -

Total no . of Claims Settled∈a year
¿ ×100
Total no . of Claims ∈a year
Ratio: -
Company Claim Settlement Ratio (in%)

LIC 96.02%

Ageas Life 99.07%

Claim Settlement Ratio

99.50%

98.50%

97.50%

96.50%

95.50%

94.50%

LIC Ageas
Claim Settlement Ratio 0.9602 0.9907

31 | P a g e
4. Solvency Ratio
The Available Solvency Margin (ASM) is the value of the company’s assets
over liabilities, and Required Solvency Margin (RSM) is based on net premiums
and defined as per IRDAI guidelines. It defines how good or bad an insurance
company’s financial situation is on defined solvency norms. Solvency ratio is
calculated as the amount of Available Solvency Margin (ASM) in relation to the
amount of Required Solvency Margin (RSM).

Available Solvency Margin( ASM )

Formula for Solvency Ratio is: Required Solvency Margin(RSM ) × 100
Ratio: -
Company Solvency Ratio (in%)

LIC 189%

Ageas Life 203%

Solvency Ratio
203%

198%

193%

188%

183%

LIC Ageas
Solvency Ratio 1.89 2.03

32 | P a g e
5. Loss Ratio
The ratio measures the company’s loss experience as a proportion of premium
income earned during the year. The loss ratio is a reflection on the nature of risk
underwritten and the adequacy or inadequacy of pricing of risks.

Net Claim incurred

Formula for Loss Ratio: - Net Premium Earned × 100

Ratio: -
Company Loss Ratio (in%)

LIC 71.48%

Ageas Life 64.02%

Loss Ratio
73.00%

71.00%

69.00%

67.00%

65.00%

63.00%

61.00%

LIC Ageas
Loss Ratio 0.7148 0.6402

33 | P a g e
6. Expense Ratio
Expense ratio reflects the efficiency of insurance operations. Expense ratio for
an insurer would be analyzed by class of business, along with the trend of the
same.

Formula for Expense Ratio: -

Management Expense+ Net Commission paid
× 100
Net Premium Earned
Ratio: -
Company Expense Ratio (in%)

LIC 15.53%

Ageas Life 19.68%

Expens e R ati o
22.50%

17.50%

12.50%

7.50%

2.50%

LIC Ageas
Expense Ratio 0.1553 0.1968

34 | P a g e
 Chapter – 5
Findings of the Study
There are more than 12 companies but due to limitation of time we have
perform only ratio analysis between SBI Life Insurance and LIC and on the
basis of it I will explain that I have found during report work.

 There is one ratio that indicates how much net premium earned is
increased from the last financial year and SBI has higher premium ratio.
 To check the efficiency of the management in the insurance companies
the ratio is the loss ratio which tell us how much part of the total premium
earned is given in the claim amount and SBI has a lower Loss ratio.
 Solvency Ratio defines how good or bad an insurance company’s
financial situation is on defined solvency norms. SBI has a higher
Solvency Ratio compared to LIC.
 Claim Settlement Ratio is a critical transparency tool for customers,
helping them gauge the reliability and performance of insurance
providers.

35 | P a g e
36 | P a g e
 Chapter – 7
Suggestion
In this report we have find some problematic situation while working on
this report that leads to drive some suggestion: -

An ease going software that help to calculate the ratios

A specific website all companies are compared
All companies have to compare itself from last data and published on
their website
IRDAI needs to uniform all the data as per standards
There are proper workshops for the general awareness of the public
Industry needs to work on general awareness
In India only 37% people are insured that means companies has lots of
potential
Simplify the terms and condition for the users of the policy that they not
feel scammed
Improve digitalization
Create add on services quickly to complement other offerings
Connect sales & marketing data silos
Improve and expand distribution strategies

37 | P a g e
 Chapter – 8
Bibliography
Websites:-

• https://irdai.gov.in/
• https://www.screener.in/
• https://www.google.com/
• https://chat.openai.com/c/ab5660f4-19a4-4eba-9689-8213ed735ee7
• https://bard.google.com/?utm_source=sem&utm_medium=paid-
media&utm_campaign=q4enIN_sem6
• https://finmin.nic.in/
• https://financialservices.gov.in/insurance-divisions
• https://www.mca.gov.in/content/mca/global/en/home.html
• https://www.quora.com/
• https://twitter.com/
• https://www.instagram.com/
• https://www.policybazaar.com/reviews/

Books & Mentors:-

• Respected Industry Training Mentor
• Project Guide
• Project Allot
• Training Books
• IC38
• Online Study Material
• PPTs and Reports

38 | P a g e