Index

Sr. No.
1. 2 3 4 5 6 7 8 Introduction

Particular
Executive summary Background of insurance sector TATA AIG Profile Distribution channels of insurance industry in India Factors that are responsible to growth in TATA AIG Conclusion Bibliography

Page No.
1 3 5 9 19 39 45 47

HISTORY
1997 The company started operation as a software developer and consulting provider to banks in Budapest, Hungary. Albert Fekete founded the company and was known as FX Software Ltd. Our first client was the European Commercial Bank owned by Bank Austria and Banca Cariplo Milano. Different modules of treasury front office system were developed

for Citibank Hungary. Initial focus was on Treasury Management Solution. 1998 Asset Management solution was added to our suite of products and enhanced the Treasury Management Solution to cover treasury operations of conventional banks and large corporates. 1999 The first fully integrated and straight trough processing Treasury system was implemented for Hungarian Post Bank; the major modules implemented were Foreign Exchange, Money Market, Fixed Income, Derivatives and settlement management. Treasury front office system implemented for KELER (Central Clearing House - Budapest). 2000 First Custody and Depositary Management system implemented for Citibank Hungary. We won the first contract for Asset Management with CA-IB, Hungary. Oracle Technology was introduced in our development as we converted our solution to browser based, 3 tier architecture based, scalable and robust application. 2001 Compaq Inc. selected us as their preferred vendor for Treasury and Capital Market solutions. First central bank project was implementation of Treasury and Loro account Management in Bank of Albania 2002 We developed a complete suite of products for Treasury and Asset Management areas. Treasury Solution catering to Central Banks, Commercial Banks, Government Debt Management and Large Corporate and Asset Management Solution for Banks, Pension Funds, Investment and Insurance Companies. National Bank of Hungary selects our Treasury System for bank-office and settlement purposes. Split of the original FX Software in two companies: FX Software Co., which continues the development on Microsoft platform while 21st Century Financial Systems Co. (TRASSET Co.) develops Oracle platform based solutions. 2003 We had 30+ sites using its suite of products including multinational banks, asset management, pension fund and insurance companies in its client list. By this time our operation was spread directly and through strong partnership alliance across 7 countries in Europe. Software Development Centre established in Budapest, Hungary, a centre dedicated mainly for product research and development. It has 50+ developers, economists and programmers. 2004 - 2006 Hewlett Packard Inc. selected 21st Century Financial Systems Co. as their preferred vendor for Treasury and Capital Market solutions. In 2005 together under HP main contracting we have won the international tender to implement the Central Banking Treasury system for the National Bank of Serbia and the Government Debt Management solution for the Ministry of Finance of Serbia. We continued to establish presence in Europe and had operations in 11 countries in Europe including Italy and Germany directly and through partners. Our customer base grew rapidly; we had more than 90+ sites across the globe. Our solution was rated among top 3 in Central Europe Region. In 2005, we changed our name from 21st Century Financial Systems Co. to TRASSET Co. In 2006, we got our first client in Middle East; we won the tender to implement Treasury and Asset Management solution in world's largest Islamic Bank - Al Rajhi Bank. 2006-07 Our suite of products was made completely Shariah compliant to cater for Islamic Banking needs, while enabling the co-existence of Islamic banking and conventional banking on the same platform. TRASSET added corporate banking solution to its suite of products covering both conventional and Islamic banking products.TRASSET tied-up with China Systems - worlds' no. 1 trade finance solution provider to offer a completely integrated comprehensive corporate banking solution. In 2007 TRASSET expanded beyond Europe. As part of our Global expansion plans, we started our operations in Middle East with the office in United Arab Emirates. 2008 Financial Institutions over 100+ sites in 15+ countries started using TRASSET suite of products, which included big banners like ING Bank, Raiffesen Bank, AXA, Allianz, Al Rajhi Bank etc. Today TRASSET has geographic coverage in Europe, Middle East, Asia and Far East regions with a plan to have a worldwide coverage by 2009-10. 2009 2009 is the year of further expansion: TRASSET opened new office in USA, in Los Angeles, and office will be opened soon in Panama City and Mexico City. R&D Center as well as local support office will be also opened in Malaysia. We have closed major projects (Ministry of Finance, National Bank

of Serbia) and we have started new ones in different regions of the world, like ACCESS Fund Management in Hungary or Al Rajhi Kuwait Branch - covering treasury, asset management and corporate suite of products. At the same time TRASSET entered into alliance with several major system integrators and system providers, like S&T Worldwide or zeb/information.technology. We believe that the new alliances will bring mutual benefits to both our partners and us by opening new opportunities on different markets. We at TRASSET are continuously trying to extend our suite of products - that is why we have purchased the software development business unit of our partner company, Menas Ltd. This process brings in-house new products (i.e.: factoring, agent system, automated reporting system for mandatory banking reports) which TRASSET will offer to its clients fully integrated into the existing modules. Over the past couple of years, we've enjoyed steady growth and a rising share of the market. It is thanks to our employees that we have been able to come so far, so fast.

TREASURY MANAGEMENT: AN OVERVIEW.

By Teigen, Lee E. Publication: Business Credit Sunday, July 1 2001

What is treasury? Webster defines treasury as "a place where stores of treasures are kept; the place of deposit, care, and disbursement of collected funds." Moreover, if you consider the treasury function in your own organization, this definition would most likely broadly describe it. This article will expand on this definition and describe the scope of responsibilities in a typical treasury function. Treasury and its responsibilities fall under the scope of the Chief Financial Officer. In many organizations, the Treasurer will be responsible for the treasury function and also holds the position of Chief Financial Officer. The CFO's responsibilities usually include capital management, risk management, strategic planning, investor relations and financial reporting. In larger organizations, these responsibilities are usually separated between accounting and treasury, with the controller and the treasurer each leading a functional area. Generally accepted accounting principles and generally accepted auditing standards recommend the division of responsibilities in areas of cash control and processing. Accounting will create the entries for treasury to process payments, treasury will advise accounting of receipts of cash, so accounting can make the proper entries, and reconciliation of bank accounts under the control of treasury will be completed by accounting. The working relationship between the managers of t hese two financial functions must be very close and ethical. High-level treasury responsibilities will normally include capital management, risk management and relationship management. Treasury is a staff service function that supports many different areas of the organization. As an internal consultant to the teams in the different functional areas, treasury provides advice in the areas of cost of capital, risk analysis and mitigation, and the effects of the teams' actions on vendors, customers or investors.

MEANING OF TREASURY MANAGEMENT

Treasury management (or treasury operations) includes management of an enterprise's holdings, with the ultimate goal of maximizing the firm's liquidity and mitigating its operational, financial and reputation al risk. Treasury Management includes a firm's collections, disbursements, concentration, investment and funding activities. In larger firms, it may also include trading in

bonds, currencies, financial derivatives and the associated financial risk management. Most larger banks have whole departments devoted to treasury management and supporting their clients' needs in this area. Until recently, larger banks had the stronghold on the provision of treasury management products and services. However, smaller banks are increasingly launching and/or expanding their treasury management functions and offerings, because of the market opportunity afforded by the recent economic environment (with banks of all sizes focusing on the clients they serve best), availability of (recently displaced) highly-seasoned treasury management professionals, access to industry standard, third-party technology providers' products and services tiered according to the needs of smaller clients, and investment in education and other best practices. For non-banking entities, the terms Treasury Management and Cash Management are sometimes used interchangeably, while, in fact, the scope of treasury management is larger (and includes funding and investment activities mentioned above). In general , a company's treasury operations comes under the control of the CFO, Vice-President / Director of Finance or Treasurer, and is handled on a day to day basis by the organization's treasury staff, controller, or comptroller. Bank Treasuries may have the following departments: A Fixed Income or Money Market desk that is devoted to buying and selling interest bearing securities A Foreign exchange or "FX" desk that buys and sells currencies A Capital Markets or Equities desk that deals in shares listed on the stock market. In addition the Treasury function may also have a Proprietary Trading desk that conducts trading activities for the bank's own account and capital, an Asset liability management or ALM desk that manages the risk of interest rate mismatch and liquidity; and a Transfer pricing or Pooling function that prices liquidity for business lines (the liability and asset sales teams) within the bank. Banks may or may not disclose the prices they charge for Treasury Management products, however the Phoenix Hecht Blue Book of Pricing may be a useful source of regional pricing information by product or service.

INDUSTRY OVERVIEW
Over the last few years treasury management functions in banks have evolved from managing operational cash flows across the enterprise into a more strategic function responsible for the management of enterprise -wide risk. This change is in part due to the recent financial crisis, which has shifted the focus of the treasury landscape to managing liquidity and market risks. Treasury departments often rely on separate systems in the front -office, middleoffice and back-office. This can result in data discrepancies and inefficiencies

which directly impact the ability of the bank to understand enterprise risk, establish suitable controls and understand liquidity and risk in real -time. In addition, companies worldwide are insisting that banks provide value -add services to help them obtain complete visibility into their risk and cash positions and to assist with understanding current and future liquidity requirements. The opportunity for banks to acquire new corporate customers and strengthen existing relationships is enormous. However, competition is fierce and successful banks will be those that can act now

THE SOLUTION
SunGard can help. SunGards Ambit Treasury Management solution provides a centralized front-to-back-office solution with straight-through processing (STP) for cash, liquidity and risk management. With Ambit Treasury Management banks can forecast both known and projected cash flows based on real -time data as well as improve transparency with real -time risk and regulatory reporting. The broad range of asset classes available enables a bank to easily extend their service to their customers as their business expands. And given that Ambit Treasury Management can be provided on a software -as-a-service basis, the

burden of tighter IT budgets can be overcome and a quick -time-to-market solution installed.

KEY BENEFITS
FLEXIBILITY ACROSS ALL ASSET CLASSES
 Respond to market conditions quickly with sophisticated strategies involving multiple asset classes  Extensive instrument coverage across all markets: Foreign Exchange, Money Markets, Capital Market, Interest Rate, Equity, Commodity and Structured Derivatives

IMPROVED RISK MANAGEMENT

 A complete and accurate view of risk exposure.

 Fully integrated risk management throughout the system allows treasuries to monitor and manage a consolidated array of risk, including credit, market and operational exposure to improve forecasting.  Real-time visibility into cash and risk positions facilitates faster and better decision making and a greater return on liquid assets. Real -time limit. management improves audit and compliance and counterparty risk management

Reduced Operational Costs& Increased Productivity

 Automate transaction flows and seamlessly connect business processes with both internal and external systems  One integrated platform: helping to achieve a high level of automation and lower cost per transaction through a single STP solution. This eliminates the use of multiple systems and removes the need to reconcile front and back-office  Reduce operational risk using best-of-breed risk and position management tools