The turnover/sales data for the last 5 years. the Trend Line & the Exponential Growth Rate Turnover/ Sales 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 .

06.88 1.NET PROFITS/(LOSSES) FOR THE LAST 5 YEARS Net Profits/(Losses) 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 63.462.158.59 95.362.071.01 77.03 84.734.68 .

01 Net Profits/(losses) Ex o . GROWTH RATE Net Profits/(Losses) 120000 100000 80000 60000 40000 20000 0 63158.68 95734.03 84462.TREND LINE & THE EXPON.59 106071. (Net Profits/(losses)) 77362.88 .

32 2.59 30784.Profit to Net Worth (last 3 years) 2007-2008 2008-2009 2009-2010 Profit/loss after tax Net Worth Profit to Net Worth 84462.90 .60 2.91 2.68 36587.88 33607.85 106071.74 95734.

Capital Turnover ratio (last 3 years) 2007-2008 2008-2009 2009-2010 Sales Capital Employed Capital Turnover Ratio .

59 =net profit after tax-preference dividend No. of equity shares 2008-2009 95734.88 2009-2010 106071.68 Preference Dividend Number of equity shares Earning Per Share .Earnings per share (last 3 years) 2007-2008 Profit/loss after tax 84462.


Geographical Expansion plan .

Product expansion/diversification plan PRODUCT DEVELOPMENT In a competitive market. During the year Corporation introduced 5 new plans viz. . LIC therefore offers a wide variety of products which fulfills the needs of different segments of the society. Jeevan Sathi Plus. Jeevan Nischay & Wealth Plus Plan. the Corporation had54 plans available for sale. Health Protection Plus. out of which Jeevan Nischay & Wealth Plus were close ended plans. As at the end of the financial year 200910. there is a greater need to provide insurance products that meet the needs of our customers. Jeevan Mangal.

The major strategic issue at the moment .

PESTEL Analysis Political Factors Increased service tax on premium Hike in FDI limit Pricing control in general insurance Favourable regulation for rural insurance Economic Factors Increase in Gross Domestic Savings Illiteracy .

Social Factors Low insurance coverage Rise in elderly population Changing Indian perception Increase in lifestyle diseases Technological Factors Automation of processes Increase in CRM solutions Internet driven information era .

Environmental Factors Effect of Climate change Legal Factors Enactment of acts such as Insurance Regulatory and Development Authority Act. 1999 .

Increasing expenses & lower profit margins will hit hard on the smaller agencies & insurance companies. Pension market Health insurance. New innovations in technology.measuring weather variables. Threats Weather cycles. New substitute product emerging.Opportunities & Threats Opportunities Like mobile banking mobile insurance could be a hit. Security factor. .

It needs to apply different set of rules and treatment strategies to different customer segments. insurers are required to capture customer information in an integrated system. However. to personalize interactions. The Group Insurance scheme is required to be promoted. .Suggestions LIC can capture market share through better pricing and client segmentation.

If the insurers are willing to take advantage of India's large population and reach a profitable mass of customers. . Effective promotional measures must be taken. then new distribution avenues and alliances will be necessary.The Crop Insurance is required to be expanded and the new schemes and policies for the villagers or the rural population are to be included.

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