INTRODUCTION:

The insurance sector in India governed by Insurance Act, 1938, the Life insurance corporation Act, 1956 and General insurance Business Act, 1972, Insurance Regulatory and Development Authority(IRDA) Act, 1999 and other related Acts. With such a large population and the untapped market area of this population Insurance happens to be a very big opportunity in India. Economy Today it stands as a business growing at the rate of 15-20 percent annually. Together with banking services, it adds about 7 per cent to the countrys GDP. All this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without Life insurance cover and the Health insurance. This is an indicator that growth potential Life insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation Malhotra Committee was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was participation of overseas insurance companies with 26% capital. Creating a more efficient and competitive financial system suitable for the requirements of t he was the main idea behind this reform.

Insurance Definition
A promise of compensation for specific potential future losses in exchange for a periodic payment. Insurance is designed to protect the financial wellbeing of an individual, company or other entity in the case of unexpected loss. Some forms of insurance are required by law, while others are optional. Agreeing to the terms of an insurance policy creates a contract between the insured and the insurer. In exchange for payments from the insured (called premiums), the insurer agrees to pay the policy holder a sum of money upon the occurrence of a specific event. In most cases, the policy holder pays part of the loss (called the deductible), and the insurer pays the rest. Examples include car insurance, health insurance, disability insurance, life insurance, and business insurance.

Insurance Advantages
River Forest Yachting Centers have been recognized by several of the large insurance companies and designated as pre-approved hurricane coded marine facilities. The insurance companies' engineers and safety inspectors have concluded that based on the inland locations, construction methods, and meticulous maintenance; RFYC facilities are superior to other options making it an excellent insurance risk.RFYC offers inside storage to protect your boat not only from the sun and wind, but also from lightning which is a major cause of claims during the summer months. RFYC also offers outside land storage with tie down cleats and straps your boat down in the event of a wind storm to keep it safe and secure.

RFYC has also developed a members only Hurricane Club to protect the boats of local customers who choose to stay in Florida and need a refuge from the storm. As a result of storing with RFYC, qualified boat owners may receive up to a 20% credit off of their hull premium while maintaining full Florida coverage which we have been informed is a highly unusual credit, never before provided in the State of Florida. RFYC is happy to provide insurance referrals upon reque

Some Areas of Future Growth: Life Insurance:

The traditional life insurance business for the LIC has been a little more than a savings policy. Term life (where the insurance company pays a predetermined amount if the policy holder dies within a given time but it pays nothing if the policy holder does not die) has accounted for less than 2% of the insurance premium of the LIC (Mitra and Nayak, 2001). For the new life insurance companies, term life policies would be the main line of business

Life Insurance Plans

Life insurance products assure your family will receive financial support, even in your absence. Put simply, when you buy insurance you provide your family with a sum of money, should something happen to you. It thus permanently protects your family from financial crises.

In addition to serving as a protective cover, when you buy insurance you create a flexible money-saving scheme, which empowers you to accumulate wealth to buy a new car, get your children educational solutions, and even retire comfortably. Today, there is no shortage of investment options for a person to choose from. Given the plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money, and online insurance is an ideal choice in todays technology driven world. Buying Life insurance online is a way to make a unique investment that helps you to meet your dual needs - saving for life's important goals, and protecting your assets. `From an investor's point of view, an investment can play two roles - asset appreciation or asset protection. While most financial instruments have the underlying benefit of asset appreciation, buying life insurance online gets you the unique reassurance of asset protection, along with a strong element of asset appreciation. When you buy life insurance online the core benefit is that the financial interests of ones family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, buying life insurance online gives a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and online insurance products occupy a unique space in the landscape of investment options available to a customer. As your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage. Online insurance products are the only investment option that offer specific products tailor-made for different life stages. You are thus ensured that the

benefits offered to the customer reflect the needs of the customer at that particular life stage, and hence ensures that the financial goals of that life stage are met. On the basis of which life stage you are in and the corresponding insurance needs, ICICI prudential plans can be categorized into the following three types: Education Insurance Plan Wealth creation plan Protection Plan

Health Insurance:
The Health insurance expenditure in India is roughly 6% of GDP, much higher than most other countries with the same level of economic development. Of that, 4.7% is private and the rest is public. What is even more staking is that 4.5% are out of pocket expenditure there has been an almost total failure of the public health care system in India. This creates an opportunity for the new insurance companies. Thus, private insurance companies will be able to sell health insurance to a vast number of families who would like to have health care cover but do not have it.

Pension:
The pension system in India is in its infancy. These are generally three forms of plans: provident funds, gratuities and pension funds. Most of the pension schemes are confined to government employees (and some large companies). The vast
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majority of workers are in the informal sector. As a result, most workers do not have any retirement benefits to fall back after retirement. Total assets of all the pension plans in India amount to less than USD 40 billion. Therefore, there is a huge scope for the development of pension funds in India. The finance minister of India has repeatedly asserted that a Latin American style reform of the privatized pension system in India would be welcome. Given all the pros and cons, it is not clear whether such a wholesale privatization would really benefit India or not.

CHANGES IN INSURANCE PRODUCTS AND PLANS IN 2010:

By the end of 2010, IRDA made far reaching changes in ULIP plans. ULIP have become more stable and better as IRDA has capped the charges, extended the minimum period, assured. There is also discussion on giving banks more autonomy by implementing an open architecture so that banks can act as an agent for insurance products from different insurance providers. The decision has not been taken yet. Cashless schemes got the beating from the insurance companies and they refused to honor cashless hospitalization because of high charges. IRDA has refused to intervene in this dispute.

TRENDS IN 2011:
The changes made in 2010 and other discussions initiated will set the trend of insurance industry in 2011 and beyond.

Life insurance:
The changes in ULIP structure will make it more popular in 2011.However, there is concern that insurance providers will discourage selling ULIPs and they may back to traditional plans. There will be emphasis on traditional plans such as whole life insurance, endowment plan, and money back plan. The term insurance may get cheaper as the premium is inversely proportional to the life expectancy. Additionally we will see banks increasing their focus on insurance related business. Till now, banks have been allowed to sell insurance from one provider from one provider only. The banking sector may open up and act as agent for multiple insurance providers. Customers will have another channel to buy insurance from.

NEED OF THE STUDY:

India with about 200 million middle class household shows a huge untapped potential for players in the in the insurance industry. Saturation of markers in many developed economies has made the Indian market even more attractive for global insurance majors. The insurance sector in India has come to a position of very high potential and competitiveness In the market. Indians, have always seen life insurance as a tax saving device, are now suddenly turning to the private sector that are providing them new products and variety for their choice.

Consumers remain the most important centre of the insurance sector. After the entry of the foreign players the industry is seeing a lot of competition and thus improvement of the foreign players the industry is seeing a lot of competition and thus improvement of the customer service in the industry. Computerization of operations and updating of technology has become imperative in the current scenario. Foreign players are bringing in international best practices in service through use of latest technologies.

OBJECTIVES OF THE STUDY: Marketing objectives:

Increase repeat customers. Decrease customer acquisition costs. Generate brand equity, quantified by an increase in unsolicited

service requests.

Financial Objectives:
Profitability by the end of year one. Steady, sustainable growth. Decrease training costs by 2% a quarter.

SCOPE OF THE STUDY:

The study is basically made to analyze the various schemes to

highlight the diversity of investment that mutual fund offer Through the study one would understand how common man could

fruitfully convert pittance into great penny by wisely investing into the right scheme according to his risk abilities.

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METHODOLOGY OF THE STUDY:

The data collection methods include both the primary and secondary collection methods.

Primary collection method: This method includes the data

collection from the personal discussion with the authorized clerks and members of the ICICI Prudential Life Insurance

Secondary collection method: The lectures of the superintend of the

department of market operations and so on., also the data collected from the news, magazines of the Angel Broking and different books issue of this study.

LIMITATIONS OF THE STUDY:

This is a theoretical study only based on various sources such as news

papers websites, articles, college faculty an ICICI Prudential staff. Study availability of secondary data. The time constraint was one of the major problems. The study is limited to selected insurance fund schemes.

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INDUSTRY PROFILE:
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 Muttylal 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 19051907 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 Cooperative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian
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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 by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January 1956 that life insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating in India at the time of nationalization.

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Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.

Indian Insurance Industry:

The insurance business is growing at an annual rate of 21.9 per cent. Together with banking services, it accounts for about 7.1 per cent to the countrys GDP. However Insurance penetration tends to rise as income increases, particularly in life insurance. India with about 200 million middle class households shows a potential for insurance industry. Saturation of markets in many developed economies has made in the Indian market even more attractive for global insurance majors. The insurance sector was opened up for private participation four years ago and the private players are active in the liberalized environment. The insurance market have witnessed dynamic changes which includes presence of a fair number of insurers both life and non-life segment.

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Most of the private insurance companies have formed joint venture partnering well with recognized foreign players across the globe. The Indian insurance market accounts only for 0.59 per cent of USD 2,627 billion global insurance market.

COMPANY PROFILE ICICI PRUDENTIAL ASSET MANAGEMENT COMPANY LIMITED

ICICI Prudential Mutual Fund is one of the largest mutual fund houses in India. ICICI Prudential Mutual Fund is a joint venture between prudential plc, one of UK's largest players in the insurance & fund management sectors and ICICI Bank, a well-known and trusted name in financial services in India. ICICI and Prudential came together in 1993 to provide mutual fund products in India and today are the largest private sector mutual fund company in India. ICICI Prudential Asset Management Company, in a span of just over eight years, has forged a position of pre-eminence in the Indian Mutual Fund industry as one of the largest asset management companies in the country with assets under management of Rs.50,742.07 crores (as on May 31, 2007). The Company manages a comprehensive range of schemes to meet the varying investment needs of its investors spread across 68 cities in the country.

PRUDENTIAL:
Established in London in 1848, Prudential plc, through its businesses in the UK, US and Asia, provides retail financial services products and services to more
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than 21 million customers, policyholders and unit holders worldwide with over US$400 (as of 31st December, 2005) billion in funds under management. Prudential employs some 23,000 staff worldwide. In Asia, Prudential has life insurance and funds management operationsacross across twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam. Prudential has championed customer-centric products and services for over 80 years, supported by an extensive network of over 145,000 staff and agents across the region.

Key Indicators:
At inceptionMay1998(as on may31,2007)

Asset Under Management Number of Funds Managed

Rs.160 crores

Rs59,573.08crores 241

Statutory:
ICICI Prudential Mutual Fund (erstwhile Prudential ICICI Mutual Fund) (the Fund) was set up as a Trust sponsored by Prudential plc (through its wholly owned subsidiary namely Prudential Corporation Holdings Ltd) and ICICI Bank Ltd. ICICI Prudential Trust Limited (erstwhile Prudential ICICI Trust Limited) (Trust company) is the Trustee to the Fund and ICICI Prudential Asset Management Company Ltd. (erstwhile Prudential ICICI Asset Management Company Limited) (AMC) is the Investment Manager to the Fund.
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ICICI Bank Ltd (ICICI Bank) and Prudential Plc (acting through its wholly owned subsidiary namely Prudential Corporation Holdings Ltd) are the promoters of the AMC and the Trust Company. ICICI Bank currently holds 51% stake in both the companies and the balance 49% stake in both the companies is held by Prudential plc (acting through its wholly owned subsidiary namely Prudential Holdings Corporation Ltd).

Prudential Plc (acting through its wholly owned subsidiary namely Prudential Corporation Holdings Ltd) transferred 6% of its shareholding in both the companies to ICICI Bank w.e.f August 26, 2005. Subsequently in accordance with the approval granted by the Board of Directors and the shareholders of the AMC and the Trust Company the name of the AMC has been changed to ICICI Prudential Asset Management Company Limited and the name of the Trust Company has been changed to ICICI Prudential Trust Limited. SEBI has vide its letter no IMD/PM/84968/07 dated January 23, 2007 conveyed its no objection to the said change of names of the AMC & the Trust company.

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The said change of names has also been approved by the Registrar of Companies, NCT of Delhi & Haryana, Ministry of Company Affairs, Govt of India. The Board of Directors of the Trust company have at their meeting held on 20th February 2007 accorded approval for the change of name of the Mutual Fund to ICICI Prudential Mutual Fund as well as of the various schemes /plans/options there under. SEBI has vide its Letter Nos IMD/PM/90168/07 & IMD/PM/90170/07 dated April 02, 2007 accorded approval for the same.

Award:
ICICI Prudential Dynamic Plan has been ranked ICRA MFR 1 in the category Diversified Equity Defensive for its 1 year performance till December 31, 2006. There were 69 schemes in the category. The rank is an outcome of an objective and comparative analysis against various parameters including: risk adjusted returns, fund size, sector concentration, portfolio turnover, liquidity, company concentration and average maturity. The ranking methodology did not take into account entry and exit loads. Ranking Source and Publisher: ICRA Online.)

NEW PLANS OF ICICI PRUDENTIAL: ICICI Prudential launched TOP UP THE SIP
ICICI was the first AMC which has launched TOP UP THE SIP, in this the feature allows an investor to increase his periodic investment through an automated route in multiples of Rs.500.Till now; investors could not increase their SIP amounts. They had to go in for a fresh plan. Why TOP UP?
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A Systematic Investment Plan (SIP) allows an investor to achieve his financial goal by saving for it regularly Nilesh Shah.Deputy Managing Director, ICICI Prudential AMC says: An SIP with TOP-UP gives the investors the advantage of power of compounding which will enable them to reach their financial goal faster.

Products of ICICI Prudential mutual Fund:

ICICI Prudential mutual Fund schemes consist of various categories like Debt Funds, Equity Funds and Balanced Funds.

Equity Funds:
Equity funds seek to provide maximum growth of capital with secondary emphasis on dividend or interest income. They invest in common stocks with a high potential for rapid growth and capital appreciation. An equity fund gives an exposure to the stock market. The fund would have long-term growth potential but provide low current income. They are not suitable for investors who are risk averse and are focused on maximizing current income or conserving principal.

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INVESTMENT PHILOSOPHY:
The overriding objective of the AMC in managing its investments is to produce a consistently above average long-term performance. The AMC believes in a bottom-up approach to stock picking. This means that the focus is on the fundamental quality of companies as opposed to a focus on favored sectors and market movements. The AMC will follow a structured investment process in order to identify the best stocks for inclusion in the portfolio. This would involve consistently examining all stocks under an internally developed research framework. A stock would be considered or inclusion in the portfolio when the valuation does not adequately capture its underlying fundamental value in the AMC's opinion based on the above factors. The AMC's portfolio management style is conducive to a low portfolio turnover rate. However, the AMC will take advantage of the opportunities that present themselves from time to time because of inefficiencies of the securities markets.

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The AMC will endeavor to balance the increased cost on account of higher portfolio turnover with the benefits derived there from. The funds offered under this category are: ICICI Growth Plan ICICI Prudential Tax Plan ICICI Prudential FMCG Plan ICICI Prudential Technology Plan ICICI Prudential Power ICICI Prudential Index Fund ICICI Prudential Dynamic Plan ICICI Prudential Discovery Fund ICICI Prudential Emerging STAR Fund ICICI Prudential Infrastructure Fund ICICI Prudential Service Industries Fund

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Balanced Funds:
Balanced funds are more evenly invested in equities and income securities. Balanced and equity-income funds are suitable for conservative investors who want high current yield with some growth. If you seek to generate long-term capital appreciation and current income, an investment in the balanced fund would be ideal. It gives you an exposure to the stock market without the entire risk of the stock market

INVESTMENT PHILOSOPHY:
The AMC proposes to invest in a mix of equities and fixed income securities with the aim of generating capital appreciation, while at the same time minimizing the volatility inherent in pure equity schemes. With this aim, the AMC would allocate the assets between equity and fixed income instruments within the limits laid down for each scheme. The funds offered under this category are: ICICI Prudential Balanced Fund

ICICI Prudential Child Care Plan-Stud Plan ICICI Prudential Child Care Plan - Gift Plan ICICI Prudential Blended Plan

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Debt Funds:
The funds are suitable for investors who want to maximize current income and who do not wish to assume a high degree of capital risk in order to do so. Since bond prices fluctuate with changing interest rates, there is some principal risk involved despite the fund's conservative nature.

INVESTMENT PHILOSOPHY:
The AMC aims to identify securities, which offer superior levels of yield at lower levels of risks. With the aim of controlling risks, the investment team of the AMC will carry out rigorous in-depth credit evaluation of the securities proposed to be invested in. The credit evaluation includes a study of the operating environment of the company, the past track record as well as the future prospects of the issuer, the short as well as longer-term financial health of the issuer. Rated debt instruments in which the Scheme invests will be of investment grade as rated by a credit rating agency. In case a debt instrument is not rated, specific approval of the Board of the AMC will be obtained for such an investment. In addition, the investment team of the AMC studies the macro economic conditions, including the politico-economic environment and factors affecting liquidity and interest rates. The AMC would use this analysis to attempt to predict the likely direction of interest rates and position the portfolio appropriately to take advantage of the same.

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The funds offered under this category are

ICICI Prudential Liquid Plan ICICI Prudential Liquid Plan- Dividend Option ICICI Prudential Income Plan ICICI Prudetial Gilt Fund Investment Plan ICICI Prudetial Gilt Fund ICICI Prudetial Monthly Income Fund ICICI Prudetial Fixed Maturity Plan ICICI Prudetial Short Term Plan ICICI Prudetial Long Term Plan ICICI Prudetial Flexible Income Plan ICICI Prudential Sweep Plan

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Features of ICICI Prudential Mutual Fund schemes:

objective Each Fund Scheme has its own portfolio. Each Fund scheme is managed by a specified Fund Manager Almost every Fund Scheme has a feature of SIP (Systematic Each Fund scheme of ICICI Prudential is diversified based on its

Investment Plan). For the SIP investors there is an additional advantage that they can

avail the facility of Auto Debit of the amount every month. Most of the fund schemes are given plans like Growth, dividend and

Dividend reinvestment. Trigger option is one of the additional features of ICICI Prudential

Fund schemes where the investors can direct AMC to withdraw their funds when the NAV is down. Every investor will be sent his/her Account information before the

third working days of the market. The investor is also provided with the additional feature i.e. Switch

option. Therefore the customer can switch from one fund scheme to another.

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The investor is also having Dividend redemption as and when it is

declared. All the investors who opted for Dividend redemption will be sent cheques. An investor can redeem the amount he invested any time he wants.

(Only if it is open ended scheme) Where as the investor will be charged a certain percent as entry/exit load. ICICI Prudential also provides an option to investors i.e. SWP

(Systematic withdrawal plan). Every investor is been provided with the information of NAV (Net

Asset Value) as and when he wants. The investor can also get required information on the website of www.icicipruamc.com

2010 AWARDS:
Ms Chanda Kochhar, Managing Director & CEO, conferred the

Outstanding Woman Business Leader of the Year award by CNBC TV18 Business World Ms Chanda Kochhar featured in Business Today's list of 30 most ICICI Bank awarded the most Tech-friendly Bank award by

powerful women leaders for the 8th consecutive year Ms. Chanda Kochhar, Managing Director & CEO, ranked 92nd in

Forbes list of the Most Powerful Women in the world Ms.Chanda Kochhar, Managing Director & CEO was ranked 10th

in the International Fortune list of 50 most powerful women in business

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ICICI Bank was voted as the Most Trusted Brand among private

sector banks in the 2010 Economic Times - Brand Equity Most Trusted Brands Awards and ranked 7th in the list of Top 50 service brands ICICI Bank received the 2010 World Finance UK award for:

Excellence in Remittance Business, Worldwide

Excellence in NRI Services, Worldwide

Excellence in Private Banking Business, APAC Region

ICICI Bank UK, HiSAVE has been awarded 'Best Online Savings

Account Provider 2010 ' by Your Money ,direct consumer awards,UK ICICI Bank UK, HiSAVE has been commended for 'Best Internet

Account Provider 2010' and 'Best Fixed Rate Account Provider 2010' by Moneyfacts, an independent consumer finance leading aggregator Ms.Chanda Kochhar, MD & CEO was awarded the Financial

Express Best Banker Award For the sixth time in a row, ICICI Bank has received the Most

Preferred Auto Loan Brand in the Financials Services category at the CNBC Consumer Awards ICICI Bank has won Gold in the Readers Digest Trusted Brands

2010 Consumer award in the Finance category for a) Best Bank and b) Best Credit Card Issuing Bank

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ICICI Bank won the Best Trade Finance Bank and Best Foreign

Exchange Bank, India at the Finance Asia Country Awards for Achievement, Hong Kong Review, UK ICICI Bank won the Best Local Bank by Trade and Forfaiting

2011 AWARDS:
ICICI Bank received the "Best Foreign Exchange Bank (India)", by Finance Asia ICICI Bank won the "Vanilla hedging instruments and Structured hedging instruments India Winner, 2011" for "Interest Rate and Currency Products", by Asia Risk Corporate Rankings Awards,UK. Mr. N. Vaghul, Former Chairman, ICICI Bank, received the "Lifetime ICICI Bank won the Best Lokal Bank- Gold by Trade and forfaiting

Achievement Award", by Businessworld

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Ms. Chanda Kochhar, Managing Director & CEO was ranked 10th in

the list of "Top 50 Women In World Business 2011", by Financial Times Ms. Chanda Kochhar, Managing Director & CEO, featured in the Hall

Of Fame of Most Powerful Women in Indian business by Business Today Ms. Chanda Kochhar, Managing Director & CEO, awarded the Skoch

Challenger Awards 2011, for Banking. The Skoch awards recognizes best practices in people, projects and institutions for inclusive growth Ms. Chanda Kochhar, Managing Director & CEO, in the list of 25

most powerful professional Association in the following categories: "Best Financial Inclusion Initiative" (first prize) "Best Online Bank" ( runner up) "Best use of Business Intelligence" ( runner up) "Technology Bank of the year" ( runner up)

2012 AWARDS:

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Insurance:
In financial sence: The financial definition focuses on an arrangement
that redistributes the cost of unexpected losses.That is the collectin of a small

premium pament from all exposed and distributed to those suffering loss.

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In legal sence: The legal definition focuses on a contractual arrangement

whereby one party agress to compensate another party for losses. The financial definition provides for the losses whereas the legal definition for the legally enforceble contract that spells out the legal rights, duties and obligations of all the parties to the contract.

Costs and Benefits of Insurance

The purpose of insurance mode of risk transfer is to provide economic against the losses that may be incurred but to chance events such as Death Disability Economic losses

One party (the insure) for a set amount of money,(premium) agrees to pay the other party (insured or beneficiary),a sum of money (benefit ) upon the occurrence of an event which may or may not occur. Insurance provides economic protection against losses that may be incurred due to chance events that may or may not occur during the effective time of the contract called a policy. The insurance of business organisations is essential in the sence that advertisements, if not guarded, may affect the business itself the business owners personal property and may also threaten the continued operation of the business and threaten the continued operation of the business and threaten he owners financial well-being.

Insurance Device

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The fundamental characteristics of insurance are:

It involves transfer of risk from the individual to the group,and There is sharing (pooling) of losses on some equitadle basis such that fortuitous losses will be indemnified(paid). More specifically, the cost and benefits of insurance are:

Benefits:
return. of wealh Prevention of losses Credit multiplication Costs of insurance to society Cost of Business operations- social wastage of resources Fraudulent and exaggerated claims- Malacious and undesirable transfer Reimbursement for losses Reduction in tension and fear Avenue for investment life insuarance investment officer attractive

FINANCIAL SYSTEM

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Meaning of Financial System:

The economic development of any country depends upon the existence of a well organized financial system. A financial system is a complex. Well-integrated set if sub-system of financial institution, market, instruments and services which facilitates the transfer and allocation of funds efficiently and effectively. A financial system of financial sector functions as an intermediary and facilitates the flow of funds from the areas of surplus to the areas of deficit. A financial system is a composition of various institutions, markets, regulations and laws, practices, money manager, analysts, transactions and claims and liabilities.

Features of financial system:

1. Financial system provides an ideal linkage between depositors and investors, thus encouraging both savings and investments. 2. Financial system facilitates expansion of financial markets over space and time. 3. Financial system promotes efficient allocation of financial resources for socially desirable and economically productive purposes. 4. Financial system influences both the quality and the pace of economic development.

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FINANCIAL MARKETS:
The financial market plays a crucial role in the economic development of a country by facilitating the allocation of scarce resources. By transferring resources from the savers to the borrowers, it directs resources from the idle to the productive sector, thus accelerating investment activities in the economy. The allocation function of the financial market has been described succinctly by Stiglitz (1994): Financial markets essentially involve the allocation of resources. This can be thought of as the brain of the entire economic system, the locus of central decision-making; if they fail. Not only will the sectors profit be lower than would otherwise have been, but the performance of the entire economic system may be impaired. The importance of financial development was amply acknowledged by classical economists (Adam Smith and others), who believed that there is a close relationship between capital accumulation and the process of economic development. However, the importance of financial factors in the development process was largely ignored and forced saving were considered the best means of financing development. But the resultant financial repression is thought to be a major cause of low savings rates and the underdevelopment of the financial sector.

Meaning of Financial Market:

A financial market is a mechanism that allows people to easily buy and sell financial securities, commodities and other fungible items of value at low transaction costs and at prices that reflect the efficient market hypothesis. Financial markets have evolved significantly over several hundred years and are undergoing constant innovation to improve liquidity

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Insurance Trends in India:

With the de-regulation in Indian Insurance industry, the monopoly of public sector companies in life insurance and general insurance has come to an end. This has augmented the innovative practices initiated by the private players. Growth in the interactive technology such as internet has further created a wave of excitement in the insurance market. Indian economy and Indian Insurance sector is committed to a double digit growth. Heres a glimpse of Insurance Industry over 190 years.

Insurance Regulatory & Development Authority

Background:

LIC,GIC,private Capital market insurance intermediaries companies & reinsurance

Insurance is a Rs450 billion industry in India. The value of the market is determined by gross premium incomes. The life insurance segment writes about 80% *Stock exchange of the overall market value. Indian Insurance market was at its all time high in 2003 bankers *Merchant with a growth of about 17.4% over the pervious year. Since 2001 Insurance is *Underwriters growing at the rate of 15-20 % annually. The growth in the insurance industry is *Stockbrokers

*Retail investors affected by volatility in real estate rates, GDP rates and long term interest rates.
Fluctuations in exchange rates also affect the growth in this sector. *Flls The gross premium as a percentage of the GDP has gone up from 2.3 in the year 2000 to 4.8 in 2006. Together with banking services, it adds about 7% to the countrys GDP.

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History of Indian Insurance:

The ancient origin of insurance is Emersion, whose brilliant and learned Traits des Assurances, first published in 1783, is still read with respect and admiration. The result shows that insurances were known to the ancients such as Romans, Phoenicians Rhodians, although the business of underwriting commercial risks was probably not highly developed. The histories of Livy and Suetonius shows that the contractors who undertook to transport provisions and military stores to the troops in Spain stipulated that the government should assume all risk of loss by reason of perils of the sea or capture and this was probably the first time when insurance process was known. There were friendly societies organized, for the purpose of extending aid to their unfortunate members from a fund made up of contributions from all. These societies undoubtedly existed in China and India in the earliest times. The earliest traces of Insurance in the ancient Indian history was in the form of marine trade loans or carriers contracts, which can be found in Kautilyas Arthashastra, Yajnyavalkyas Dharmashastra and Manus Smriti. These works show that the system of credit and the law of interest were well developed in India. They were based on clear appreciation of hazard involved and the means of safeguarding against it.

36

British-India Period:
Insurance in India without any regulations started in the nineteenth century. It was a typical story of a colonial era where a few British insurance companies dominated the market serving mostly large urban centers. Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. Bombay Mutual Life Assurance Society indicated the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. 1930s was the last of the old-style crises in the Indian economy because it marked the beginning of the end of the colonial state and an acceleration of the pace of industrialization as entrepreneurs moved their capital out of the countryside. Independent India reduced its vulnerability to external economic shocks by close control of foreign exchange and by promoting a massive change in the export schedule. Till the end of nineteenth century insurance business was almost entirely in the hands of overseas companies. Post Independence era of Indian Insurance:

The insurance business grew at a faster pace after independence. Indian companies strengthened their hold on this business but despite the growth that was witnessed, insurance remained an urban phenomenon. During Mrs. Gandhis tenure (from 1966-1968), there was a split within the business community of protectionists and those who wanted more open trade. But what maintained the momentum was the commitment of Two Ministers, Ashok Mehta and Subramaniam towards liberalization of the economy. This was seconded with high hope of getting increased foreign aid.

37

Deregulation actually helped the poorest in India as it would eventually create more employment and faster growth. Yet the intense fears of liberalization in the lower middle class and among working class employees of the state sector, pose serious risks in freeing the economy. It might be preferable to introduce liberalization during an economic upswing when the risk of switching jobs is less traumatic. The three liberalization episodes in Indian economic policy have followed clear cyclical patterns. Economic policy has swung broadly between controls and greater openness, with a tendency toward decontrolling larger and more important segments of the economy.

Nationalization Phase of Indian Insurance: 1944: The Nationalization of insurance industry gathered momentum in 1944
when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly.

1956: 154 Indian insurance companies, 16 non-Indian companies and 75

provident societies were taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs.5 Crore from the Government of India.

1972: The General Insurance Business (Nationalization) Act, which

nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National

38

Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership too was taken by means of a comprehensive bill. However, it was only in 1956, LIC was nationalised, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.And as of 2007, LIC is Indias leading Insurance company, with 2000 branches, which probably is the highest number of branches across India insurance sector.

Liberalization of Indian Insurance: 1994: Insurance sector invited private participation to induce a spirit of
competition amongst the various insurers and to provide a choice to the consumers.

1997: Insurance regulator IRDA was set up as there felt the need:
a) To set up an independent regulatory body, that provides greater autonomy to insurance companies in order to improve their performance, b) To enable them to act as independent companies with economic motives. c) To protect the interest of holders of insurance policies. d) To Amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the General insurance Business (Nationalization) Act, 1972

39

e) To end the monopoly of the Life Insurance Corporation of India and General Insurance Corporation and its subsidiaries. In the first year of insurance market liberalization (2001) as much as 16 private sector companies including joint ventures with leading foreign insurance companies have entered the Indian insurance sector. Of this, 10 were under the life insurance category and six under general insurance. Thus in all there are 25 players (12-life insurance and 13-general insurance) in the Indian insurance industry till date.

Indian Insurance in 21st Century: 2000: IRDA starts giving licenses to private insurers: ICICI prudential and
HDFC Standard Life insurance first private insurers to sell a policy

2001: Royal Sundaram Alliance first non life insurer to sell a policy 2002: Banks allowed tosell insurance plans. As TPAs enter the scene,
insurers start setting non-life claims in the cashless mode

2007: First Online Insurance portal, www.insurancemall.in set up by an

Indian Insurance Broker, Bonsai Insurance Broking Pvt Ltd.

The Government of India liberalised the insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill,
40

lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. Minimum capital requirement for direct life and Non-life Insurance company is INR1000 million and that for reinsurance company is INR 2000 million. In the 2004-05 budgets, the Government proposed for increasing the foreign equity stake to 49%, this is yet to be effected. Under the current guidelines, there is a 26 percent equity cap for foreign partners in direct insurance and reinsurance Company. (World Bank Economic Review-2000).

Online Insurance in India:

Internet access in India has doubled every year over the last five years and forecasts predict this growth to quadruple every year over the next three years. According to marketer report on India online, in 2007, about 33.2 million people in India accessed internet and thats about 2.9% of Indian population. This figure is going to be 71.6 million people, which will be about 6% of population by 2011. Considering limited access of human-insurance agents in rural areas, there will more demand of purchasing insurance online from these areas, followed by semi-urban areas.

The

insurance

portals

that

are

active

in

online

distribution

are

www.icicilombard.com,www.bajajallianz.co.in,www.insurancemall.in,www.bimaonli
41

ne.com,www.insurancepandit.com.Recently,Compare Choose Buy portals like Bonsai Insurance Brokers www.insurancemall.in, have been developed for providing comparison of different types of insurance policies, their premiums and their purchase online. The policy details are stored digitally and all transactions are made over secure channels. E-insurance offers a new gateway of incomes and provides additional market penetration, which is a need of an hour for Indian Insurance Segment. The First Movers in Distribution of Insurance goes to 3 companies in India : 1. ICICI Lombard General Insurance 2. Bajaj Allianz General Insurance 3. www.insurancemall.in (Created by Bonsai Insurance Broking.)

INVESTMENT OF ICICI PRUDENTIAL LIFE IN THE YEAR 1987: (In Crores)

42

PERCENTAGE TYPES OF INVESTMENT 1. Central Govt. Sec. 2. State Govt. & other Govt. Guaranteed Marketable Sec. 3. Electricity (SEBs) 4. Housing 5. Water Supply & Sewerage (Mun + Z.P) 6. State Road Transport Corpn. 7. Loans to Industrial Est. 8. Loans to Sugar Co-op 9. Development Authority 10. Roadways, Port, Railways 11. Power Generation (Pvt. Sector) 12. Municipal Cop. Total :31-3-87 4675 1683 2603 1872 718 180 37 37 1 11806 OF TOTAL 39.60 14.26 22.05 15.86 6.08 1.52 0.31 0.31 0.01 100.00

OUT

ANALYSIS OF INVESTMENTS IN 1987:

43

1)

Major portion of the investment of the ICICI PRULIFE were captured

by the state Govt. securities. 2) Life Insurance Corporation concentrated only in the ICICI PRULIFE

sector and the Private sector was completely neglected. 3) securities. 4) 45.52% (3+4+5+6+9) of ICICI PRULIFE Investments were invested 53.86% (1+2) of ICICI PRULIFES Investments are invested in the

in the Development of Infrastructure of the Country. 5) 0.62% (7+8) was given as loans for the growth of Industries in India.

ICICI PRULIFE INVESTMENTS IN THE YEAR 1997(In Crores)

PERCENTAGE TYPES OF INVESTMENT 1. Central Govt. Sec. 2. State Govt. & other Govt. Guaranteed Marketable Sec. 3. Electricity (SEBs) 4. Housing 5. Water Supply & Sewerage (Mun + Z.P) 31-3-97 37330 8906 8214 10967 2028 OUT OF TOTAL 54.84 13.08 12.07 16.10 3.00

44

6. State Road Transport Corpn. 7. Loans to Industrial Est. 8. Loans to Sugar Co-op 9. Development Authority 10. Roadways, Port, Railways 11. Power Generation (Pvt. Sector) 12. Municipal Cop. Total :-

540 45 37 1 68068

0.79 0.06 0.05 0.01 100.00

ANALYSIS OF INVESTMENTS IN 1997:

1) This year ICICI PRULIFES investment in central Govt. securities

increased drastically. 2) ICICI PRULIFES investments in central Govt. securities increased

from 39.6% - 54.84%.

45

3)

But there was a decline in the investment in State Govt. and other

Govt. securities; it reduced from 14.26% - 13.08%. 4) How ever there was an increase in the net investment in securities, it

increased by 26.10% (when compared to 1987) and at the end was 67.92% of the total investments. 5) Investment in the development of infrastructure was 31.97% of the

total when compared to 45.52% in the previous year that means there was a decline of 29.77% when compared to 1987. 6) This year loans to industrial estate's and sugar co-op increased from

marginal 0.62% to 1.1% and showed an increase of 77.42% 7) On the whole the ICICI PRULIFE showed a very good growth rate in

their investments in 1987 their total investments were 11806 crores but in this year it showed an increase of 476.55% 8) ICICI PRULIFE's investments increased by almost 5 times in 10 years

which showed a great increase of 50% per year on an average. 9) Looking at the speed growth of ICICI PRULIFE OF INDIA it was

quite clear for every one that ICICI PRULIFE OF INDIA was heading towards becoming the worlds no 1 insurance company. 10) Looking at current year the expected performance of the corporation

was increasing at a rapid pace.

46

INVESTMENT OF ICICI PRULIFE IN THE YEAR 2004(In Crores)

PERCENTAGE TYPES OF INVESTMENT 1. Central Govt. Sec. 2. State Govt. & other Govt. Guaranteed Marketable Sec. 3. Electricity (SEBs) 4. Housing 5. Water Supply & Sewerage (Mun + Z.P) 6. State Road Transport Corpn. 7. Loans to Industrial Est. 8. Loans to Sugar Co-op 9. Development Authority 10. Roadways, Port, Railways 11. Power Generation (Pvt. Sector) 31-3-04 45876 10471 9153 12242 2264 551 45 37 1 25 276 OF TOTAL 56.68 12.94 11.31 15.12 2.8 0.68 0.05 0.04 0.01 0.03 0.34

OUT

47

12. Municipal Cop. Total :-

4 80945

0.049 100.00

ANALYSIS OF INVESTMENTS IN 2004:

1) Like the previous year this year also the major portion of the

investments was captured by central government securities. 2) There was an increase in investment in central Govt. securities from

54.84% - 56.68, it showed an Increase of 3.35% 3) Following the trend of past 11 years this year also the net investment

in securities increased, it was 54.84 in the previous year and rose to 56.68 in this year, showing an increase of 2.5%. 4) Investment in the development of infrastructure at the beginning was

45.52% and at the end was 29.92%, which showed a decline of 34.27% which was quite considerable

48

5)

Loans to industries was stable at 0.9% of the total investments.

6)

There is an important point to be seen in this year as this is the first

time ICICI PRULIFE started to invest in power generation of private sector. 7) private sector. 8) The investment in the power generation of private sector was 0.34% It is from this year ICICI PRULIFE started directly investing in the

of the total investment. 9) From this year ICICI PRULIFE started investing in developing

transport i.e., railways, ports, roadways. The percentage of investment in this was 0.03% which was quite marginal. 10) ICICI PRULIFE started to help the municipal councils and

corporations from this year and the percentage of investment stood at 0.004% and the amount invested was 4 crores.

49

INVESTMENT OF ICICI PRULIFE IN THE YEAR 2005(In Crores)

PERCENTAGE TYPES OF INVESTMENT 1. Central Govt. Sec. 2. State Govt. & other Govt. Guaranteed Marketable Sec. 3. Electricity (SEBs) 4. Housing 5. Water Supply & Sewerage (Mun + Z.P) 6. State Road Transport Corpn. 7. Loans to Industrial Est. 8. Loans to Sugar Co-op 9. Development Authority 10. Roadways, Port, Railways 11. Power Generation (Pvt. Sector) 12. Municipal Cop. Total :31-3-2005 56185 12928 10591 14207 2508 671 45 37 1 25 801 4 98003 OF TOTAL 57.33 13.19 10.81 14.50 2.56 0.68 0.05 0.03 0.001 0.03 0.82 0.004 100.00

OUT

50

ANALYSIS OF INVESTMENTS IN 2005:

1) Total net investment in securities was 56.68% which raised to 70.52%

showing a growth rate of 24.41%. 2) A total investment in development activity in this year was Rs.27978

crores which was 28.54%of the total investment, remaining almost stable who compared to 29.92% in the previous year. 3) Percentage of investments granted as loan has declined by 27.3% and

stood at 0.08% of the total investment. 4) Direct investment in private sector has raised by 141.17% and was

0.82% of the total when compared to 0.34% in the previous year.

51

INVESTMENT OF ICICI PRULIFE IN THE YEAR 2006(In Crores)

PERCENTAGE TYPES OF INVESTMENT 1. Central Govt. Sec. 2. State Govt. & other Govt. Guaranteed Marketable Sec. 3. Electricity (SEBs) 4. Housing 5. Water Supply & Sewerage (Mun + Z.P) 6. State Road Transport Corpn. 7. Loans to Industrial Est. 8. Loans to Sugar Co-op 9. Development Authority 10. Roadways, Port, Railways 11. Power Generation (Pvt. Sector) 12. Municipal Cop. Total :31-3-06 70533 14156 11931 15885 2997 736 45 37 1 85 1478 4 117888 OF TOTAL 59.83 12.01 10.12 13.22 2.54 0.62 0.04 0.03 0.001 0.07 1.25 0.003 100.00

OUT

52

ANALYSIS OF INVESTMENTS IN 2006:

1) Total net investment in securities was 70.52% which raised to 71.84%

showing a growth rate of 1.87%, but the growth rate declined by 92.3%. 2) Total investments in development activity in this year were Rs.31150

crores which was 26.42% of the total investment, remaining almost near when compared to 28.54% in the previous year. 3) Percentage of investments granted as loan has declined by 12.5% and

stood at 0.07% of the total investment. 4) Direct investment in private sector has raised by 45% and was 1.25%

of the total when compared to 0.82% in the previous year.

53

INVESTMENT OF ICICI PRULIFE IN THE YEAR 2007(In Crores)

PERCENTAGE TYPES OF INVESTMENT 1. Central Govt. Sec. 2. State Govt. & other Govt. Guaranteed Marketable Sec. 3. Electricity (SEBs) 4. Housing 5. Water Supply & Sewerage (Mun + Z.P) 6. State Road Transport Corpn. 7. Loans to Industrial Est. 8. Loans to Sugar Co-op 9. Development Authority 10. Roadways, Port, Railways 11. Power Generation (Pvt. Sector) 12. Municipal Cop. Total :31-3-07 85181 17877 12402 17998 3657 784 45 37 1 325 1615 4 139926 OF TOTAL 60.88 12.78 8.86 12.86 2.61 0.56 0.03 0.03 0.001 0.23 1.15 0.003 100.00

OUT

54

ANALYSIS OF INVESTMENTS IN 2007:

1) Total net investment in securities was 71.84% which raised to 73.65%

showing a growth rate of 2.52%, showing a good increase when compared to the previous year. 2) Total investments in development activities in this year were Rs.34842

Crores which was 24.90% of the total investment, showing a decline of 6.95% when compared to 26.76% in the previous year. 3) Percentage of investments granted as loan has declined by 14.3% and

stood at 0.06% of the total investment. 4) Direct investment in private sector has decreased by 8% and was

1.15% of the total when compared to 1.25% in the previous year.

55

INVESTMENT OF ICICI PRULIFE IN THE YEAR 2010(In Crores)

PERCENTAGE TYPES OF INVESTMENT 1. Central Govt. Sec. 2. State Govt. & other Govt. Guaranteed Marketable Sec. 3. Electricity (SEBs) 4. Housing 5. Water Supply & Sewerage (Mun + Z.P) 6. State Road Transport Corpn. 7. Loans to Industrial Est. 8. Loans to Sugar Co-op 9. Development Authority 10. Roadways, Port, Railways 11. Power Generation (Pvt. Sector) 12. Municipal Cop. Total :31-3-10 109938 21463 13447 19054 4000 893 45 37 1 681 3797 14 173370 OF TOTAL 63.41 12.38 7.76 10.99 2.31 0.52 0.03 0.02 0.001 0.39 2.19 0.008 100.00

OUT

56

ANALYSIS OF INVESTMENTS IN 2010:

1) Even this year investment in the central Govt. securities

increased like the past trend, it increased by 4.15% and stood at 63.41% out of the total investments. 2) The total net investments in securities stood at 75.79% i.e.,

more than percentage of the total investments, shoeing a growth of 2.89%. 3) Total investment in the development of infrastructure

Rs.37395 crores, which is 21.56% of the total investment. 4) Investment in the private sector was 2.19% of the total

investment in 2008, showing a growth rate of 90.43%. 5) There is an important point to be noted that from past 4

years ICICI PRULIFE of India was investing 4 crores in the Municipal Corporation but from this year this amount increased to 14 rores.

57

investment in development authority remains constant for the whole period.

NVESTMENT OF ICICI PRULIFE IN THE YEAR 2011(In Crores)

PERCENTAGE TYPES OF INVESTMENT 1. Central Govt. Sec. 2. State Govt. & other Govt. Guaranteed Marketable Sec. 3. Electricity (SEBs) 4. Housing 5. Water Supply & Sewerage (Mun + Z.P) 6. State Road Transport Corpn. 7. Loans to Industrial Est. 8. Loans to Sugar Co-op 9. Development Authority 10. Roadways, Port, Railways 11. Power Generation (Pvt. Sector) 12. Municipal Cop. Total :31-3-11 137276 28988 14508 19944 4420 1358 45 37 1 781 6105 14 213477 OF TOTAL 64.30 13.58 6.80 9.34 2.07 0.64 0.02 0.02 0.0005 0.37 2.90 0.01 100.00 OUT

58

ANALYSIS OF INVESTMENTS IN 2011:

1) Investment in central Govt. securities goes up even further

from 63.41% - 64.3%, showing growth rate of 1.4% 2) Net investment in securities increased 75.79% - 78.88%,

showing a net increase of 4.08% 3) Investment in the development of infrastructure was

21.56%, which reduced to 18.84%. 4) 5) Loans granted reduced by 20% and stood at 0.04%. Direct investment in Pvt. Sector was 2.19% in the

previous year and raised by 32.42% and stood at 2.9% of the total investment.

59

GRAPH SHOWING NET INVESTMENTS YEARY

60

FINDINGS
1) ICICI PRUDENTIAL LIFE has invested Rs.4675 crores in the year

1987 which is 39.60% of its profits in the central govt. sector and the investment has increased to 37330 crores in the next decade i.e. in the year 1997 which is 54.84% out of profits. 2) 3) It has drastically increased its investments in the central government. There was a decline in the investment in state government. It has

reduced from 14.26% to 13.08%. 4) ICICI PRULIFE has decreased its investment in the year 1997 in

infrastructure from45.02% to 31.97%. 5) Looking at the speed growth of ICICI PRULIFE it is quite clear that

ICICI PRULIFE is heading towards becoming the worlds no 1 insurance company. 6) As the years passing on the investment of ICICIPRULIFE in central

government is increasing compared to other avenues of investment. 7) The net investment in the securities has been increased.

61

SUGGESTIONS
1) ICICI PRULIFE is also investing a certain part of its profits in the state

road transport corporation and power generation (Pvt. Sector) but there is a stable growth in these investments. 2) In the year 2005 the total investment in securities has increased to

70.52%, which shows a tremendous growth rate of 24.42%. 3) ICICI PRULIFE has decreased giving loans, and the percentage

decrease by 27.3%. 4) The investments in the private sector also raised drastically from the

year 2004-2005, which is 141.17%.

62

CONCLUSIONS
1) sectors. 2) generation etc. 3) More Insurance policies need to be introduced that suit all There is a need of increase it investments in Housing, Power ICICI PRUDENTIAL is suggested to expand its portfolio to other

classifications of people. 4) Well qualified Investment analyst need to be appointed in order to

proper allocation of portfolio for companys growth. 5) More plans have to be introduced by ICICI PRULIFE in order to

compete with competitors. 6) ICICI Prulife has to introduce more tax benefits plans in order to

attract more policy holders in the market.

63

BIBLIOGRAPHY Books
Securities Analysis and Portfolio Management by Prasanna

chandra. (Tata McGraw Hill production) Securities Analysis and Portfolio Management by

V.A.Avadhani. (Himalaya Publishing House) Education) Financial Management by M.Y. Khan & P.K. Jain (Tata McGraw-Hill The Indian Financial System by Bharat V. Pathak.(Pearson

Publishing Co. Ltd.) Sons) Financial Management by Dr .S.N. Maheshwari.(Sultan Chand &

Websites
www.iciciprulife.com www.Irdaonline.org www.moneycontrol.com

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65