STRENGTHS Reliance insurance Company is considered to be a very sound insurance company in the insurance market.

An insurance company, where the customers can easily insured their a s s e t a s l o n g a s t h e y w a n t . I a m p o i n t i n g s o m e o f t h e m a j o r s t r e n g t h s o f t h e R e l i a n c e insurance company: CONSIDERATE CUSTOMER SERVICE The officers of RICL are considered as one of the most able professionals i n t h e insurance world (some of them are CII). However, they have added some local flavor in accordance with their targeted segmented. I observed that they interact with their clients as if they are their personal friends and discuss about their problems as their own. GOODWILL & TRUST As a result of the considerate and modified services of the officers, the clients perception for RICL is very high. They have trust and feel themselves to be secure while insurance with RICL. LOCATION Reliance Insurance Company has opened all its branches at commercial areas so that the customers or clients face no problems in reaching to the office of the insurance company. For example, Eden centre branch being situated in business and commercial hub of Eden Centre. BRANCH NETWORK
Reliance Insurance company objective has been to expand its branch network to meet clients needs. Company open new branches In Lahore to provide better services to their clients. And, due to the growing business requirements, there are more proposed branches in different cities. The expansion program is strategically important to increase customer base and to approach different customer segments.

THE COMPUTERIZED SYSTEM Reliance insurance has got a reliable and easy to use internal computer s y s t e m . E v e r y information regarding the policies and claims has been computerized. For this purpose company designed new advanced software to improve their current procedures. Now In branches these advance software are in working. Reliance Insurance Company is financially strong and has huge premiums. Its cost of expense is less as compared to many of its competitors. Personnel of Reliance insurance are well trained and highly skilled. Majority of employees has many years of experience in insurance sector and are an asset for the insurance company.

 Reliance Insurance Company has a network of branches at the ideal locations, catering the insurance needs of its clients. Travel insurance is the focus of Reliance insurance company. It has become an ideal insurance company for the travelers. RICL has close relationships with their customers. RICL staff is very innovate and creative. Reliance insurance Company saved all his past record in well manner way. WEAKNESSES Perfection is only the claim of Allah Almighty. No other being living or dead can say this for itself. Similarly, Reliance Insurance Company also has some shortcomings that need to be mentioned I observed during my internship that some of the employees were burdened with over work. So I think that the work should be distributed according to their post and capabilities. Companys marketing department is not very strong. Advertising done by the insurance company is less than the requirement. It is a step behind in using new technology as compared to other insurance companies. Most of the employees are overloaded with work. There is uneven distribution of work and promotions are not very timely. It is slow in the introduction of new services. New employees of Reliance insurance company are too inexperienced. There is shortage of some skills persons. OPPORTUNITIES Reliance Insurance Company has grown up its business with a very high pace and it has got tremendous popularity, even with in a very short span of time. T h e r e a r e m a n y opportunities for the Reliance insurance company and by availing that it can stand amongst the top local insurance companies. INFORMATION TECHNOLOGY All the opportunities of the 21st century are to be availed in the information technology. Information technology is the future. Therefore RICL should emphasize much on IT, especially the E-Insurance. Reliance insurance Company can design a corporate claim philosophy like other foreign insurance companies, to enhance claim facilities. EXTENSION OF BRANCH NETWORK Reliance Insurance company growing business requires an extensive branch network. There are great opportunities for Reliance insurance for the expansion of its business.

GROWTH IN NEW INSURANCE POLICIES RICL has introduced a number of new insurance covers including special T r a v e l insurance. These covers have their unique features (discussed earlier). During the last three years, Reliance premiums have been increasing which is a very healthy sign. Therefore, with the commencement of new insurance covers there can even be a greater increase in its premiums. It can enhance its profitability by making use of new technology. It has the opportunity to introduce new products and services. It can adopt E-insurance and provide online facility to its customers. New technology can help it enhance profitability. THREATS ECONOMIC CONDITIONS Despite the difficult circumstances that confronted the insurance sector in particular and the country in general, Reliance Insurance Company has been still highly profitable. but, the facts cant be denied and there might be an adverse impact of such situation. COMPETITORS Reliance Insurance Company is facing a strong competition by its m a j o r competitors; United Insurance, Alfalah Insurance Company and Habib Insurance Company. Business of these insurance companies is also growing with very high paces Reliance Insurance C o m p a n y h a s b e e n p e r f o r m i n g v e r y w e l l i n t h e p r e s e n c e o f u n s t a b l e p o l i t i c a l a n d economic situation but this uncertainty is a continuous threat for the insurance company. Reliance Insurance Company is facing intense competition from other local and foreign insurance companies. Although it is ahead of many insurance companies but insurance companies like United Insurance are a constant threat to Reliance Insurance Company. There is also chance of loss of key personnel. Continued growth of Reliance insurance company will stretch them too far and lead to inefficiencies. The SWOT analysis of the Reliance insurance Company signifies that its S t r e n g t h s overcome its weaknesses and its opportunities are more than its threats. This is a positive sign for any organization.

TABLE OF DIFFERENT RATIOS

2009 Leverage Ratios: 2009 2009

Debt Equity Ratio Interest Cover Ratio (times)

Liquidity Ratios: Current Ratio Acid Test(Quick) Ratio Efficiency Ratios: Total Assets Turnover Ratio (Times) Fixed Asset turnover(times) Profitability Ratios: Gross Profit Ratio 10.46% Net Profit Ratio Inventory Turnover(times) Return on Capital Employed 16.85% Market Value Ratios:Per Share (Rs.) Break-up Value Cash Dividend Earning Per Share

57:43 1.52

57:43 2.00

47:53 2.52

51:49 0.37

52:48 0.31

49:51 0.20

1.29 2.01

1.32 2.07

1.40 2.40

15.30% 2.66% 7.91 16.66%

12.90% 4.15% 5.76 4.21% 5.00 16.48%

22.84 0.75 2.82 4.54

26.63 0.75 5.64

32.27