SIP COMPANY

BAJAJ ALLIANZ LIFE INSURENCE

INTIRIM REPORT

SUBMITTED TO

MRS.SUJATA SURESH

SUBMITTED BY

NIKHILESH PRAKASH

(8NBHD006)

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INTRODUCTION

Bajaj Allianz Life Insurance Company is India’s one of the fastest growing insurance
company .Bajaj Allianz has a strong presence in most of the cities in India and providing
customized services to the customer.

At present in India twenty two insurance companies are providing their services.LIC is
leading with highest market share and Bajaj Allianz is holding second position after ICICI
prudential life insurance company.

After 3days training program in Bajaj Allianz I am selling three life insurance and one health
insurance policies .All policies consist different terms ,premium ,sum assured amount and
conditions.

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Industrial profile

With an annual growth rate of 15-20% and the largest number of life insurance policies in
force, the potential of the Indian insurance industry is huge. Total value of the Indian
insurance market (2004-05) is estimated at Rs. 450 billion (US$10 billion). According to
government sources, the insurance and banking services’ contribution to the country's gross
domestic product (GDP) is 7% out of which the gross premium collection forms a
significant part. The funds available with the state-owned Life Insurance Corporation (LIC)
for investments are 8% of GDP.

Till date, only 20% of the total insurable population of India is covered under various life
insurance schemes, the penetration rates of health and other non-life insurances in India is
also well below the international level. These facts indicate the of immense growth potential
of the insurance sector.

The year 1999 saw a revolution in the Indian insurance sector, as major structural changes
took place with the ending of government monopoly and the passage of the Insurance
Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private
players and allowing foreign players to enter the market with some limits on direct foreign
ownership.

Though, the existing rule says that a foreign partner can hold 26% equity in an insurance
company, a proposal to increase this limit to 49% is pending with the government. Since
opening up of the insurance sector in 1999, foreign investments of Rs. 8.7 billion have
poured into the Indian market and 21 private companies have been granted licenses.

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Key firms in the industry (competitors)

At present 22 insurance companies are operating their business in India .some of them are:

ICICI Prudential LIC SBI life Reliance life

Tata Aig Birla Sun life Kotak Mahindra Max Newyork

HDFC life Met life Bhart axa

At present 22 life insurance companies providing their services to customer but these are
some major players in insurance field they are holding major market share. ICICI is in
number one position in private player and Bajaj Allianz is holding second position.

Sales of last three years of Bajaj Allianz life insurance

Year Sales(000)
2005-06 7,81,685
2006-07 20,79,217
2007-08 37,44,742

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Profits of last three years of Bajaj Allianz life insurance

Year 2005-06 2006-07 2007-08

Profit 985442 717033 1056179

Industry index ratio of life insurance

1 day price change – 5.88

Market capitalization - 5289.48

P/E - 11.63

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ROE % - 12.89

Dividend yield % - 4.74

Long term debt to equity - NA

Price to book value - 1.33

Net profit margin % - 8.67

Price to free cash flow - 4.75

Interpretation:
Life insurance companies have strong market capitalization and companies are giving good returns
on equity. Most of the companies are in profit and this slowdown only few sector are shown positive
growth insurance industry is one of them

What are the features of Fair Value?

1) F.V is measured for a specific asset or liability, or a group of assets and/or liabilities.

2) It is a market specific measure, not an entity-specific measure.

3) F.V is measure in the principal, or most advantageous, market for the asset or
liability.

It is an exit price rather than an entrance price

5) A F.V measure should reflect all of the assumptions that market participants would use in
pricing the asset or liability, including assumptions about risk.

6) F.V does not include transaction costs.

7) F.V of an asset assumes the highest and best use of the asset.

Assumptions for fair value

1) Orderly Transaction: Not a “Fire Sale”

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 2) Market Participants: Buyers and Sellers who are independent

3) Principal Market: Greatest volume or level activity

4) Most Advantageous Market: Use if no principal market Available

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