AVIVA LIFE INSURANCE INDIA PVT.

LTD

Where exceeding expectations through innovative solutions is "our" way of life

Flow of the presentation

What is Insurance? Need for Insurance History of insurance in India Importance of Insurance About Aviva Products and services Unit linked Plans Financial instruments Vs ULIP Competitive analysis Financial Analysis Findings from the study Recommendations Internship at Aviva

What is Insurance?
Concerned with the protection of the economic value of assets It compensates the economic or financial loss resulting to the asset from damage or destruction All assets, including the human life have economic value

Need For Insurance

Assets are likely to be destroyed or made non functional due to accidental occurrences called perils Risk and uncertainty Consequences of risk are difficult to be borne by an individual

Insurance Industry in India

The first Indian insurance company was the Bombay Mutual Assurance Society formed in 1870 1st September 1956 Nationalization of life insurance companies formation of the Life Insurance Corporation of India (245 companies)

Insurance industry was privatized in the year 1999

On December 1999 IRDA was formed which regulated insurance companies in India

At present there are 14 private parties ICICI Prudential, HDFC Standard, Birla Sun life, Tata Aig, Bajaj Allianz to name a few

Importance of Insurance
Acts as a social security tool Mobilizes public savings

Compulsory savings Compensates losses

Economic Development

About Aviva
UKs largest and the worlds 5th largest insurance group Customer base of over 35 million customers 364 billion pounds of assets under management In India - joint venture between Dabur and Aviva Plc Pioneered concept of Banc assurance Aviva has 113 branches in India supporting its distribution network Offers Unit linked Plans apart from Traditional insurance products Over 16000 financial planning advisors

Products & Services

Easy Life Plus Save guard Life Bond 5

Life Long
Young achiever

Freedom Life Plan

Pension Plus

Unit linked plans How do they work?

COLLECT PREMIUM

DISTRIBUTE

NAV INCREASES

GIVE UNITS WITH NAV

INVEST IN FUND

FUND VALUE INCREASES

Financial Instruments Versus ULIPs

Parameters RBI Bonds Fixed Deposits Mutual Funds Unit linked

Safety

High

High

Medium

High

Liquidity

None

High

High

High

Returns

Low

Low

High

High

Life Cover

1 time amount

1 time amount

1 time amount

10 times

Tax benefits

Tax free

Taxed

Taxed

Tax free

Competitive Analysis
Stiff Competition from LIC Competition from other private players Market share of 5.1% in India (according to annual premiums collected survey) Current ranking for the year 2006 7th

Financial Analysis
Stock price of Aviva as on May 1, 2007 Rs. 33.5 Earnings per share have fallen from Rs. 7.12 to Rs. 0.13

Operating profit is down to Rs. 0.3 million from Rs. 10.67 million (2004 2005)
Aviva is not comparable with other private players as they have highly diversified portfolios

Findings from the study

ANNUAL PREMIUM PAYED BY RESPONDENTS The study was conducted mostly for males below the age of 35 years

Rs. 5000 - Rs. 10000

4% 10% 39% 2% 3%

Rs. 10001 - Rs. 15000 Rs. 15001 - Rs. 24900 Rs. 25000 - Rs. 50000

17%

Rs. 50001 - Rs. 60000

25%

Rs.60001 - Rs. 80000 Rs. 80001 - Rs. 100000

Findings from the study

AWARENESS OF UNIT LINKED INSURANCE PLANS

43%
Yes

57%

No

Findings from the study

WILLINGNESS TO SPEND ON LIFE INSURANCE PREMIUM

60 50 40 30 20 10 0 Less than Rs. 6000 Rs. 6001 - Rs. 10000 Rs. 10001 - Rs. 25000 Rs. 25001 - Rs. 50000 Rs. 50001 - Rs. 100000

Findings from the study

PREFERRED COMPANY TYPE

80 70 60 50 40 30 20 10 0 Government Owned Company Public Limited Company Private Company Foreign Company

Findings from the study

IDEAL POLICY TERM

1% 2% 9%

5% 19%

3 - 5 years 6 - 9 years 14% 15% 10 - 15 years 16 - 20 years 21 - 25 years 26 - 30 years More than 30 years Whole life Policy

35%

Findings from the study

EXPECTED RETURN ON INVESTMENT

8% 5%

2% 15% Less than 5%

8%

5% - 10% 11% - 15% 16% - 20% 21% - 25%

10%

17%

26% - 30% 31% - 40% 41% - 50% More than 50%

17% 18%

Recommendations
Advertise about the company and its products Showcase association with Dabur build trust Use modern sales techniques Diversify product portfolio Reduce premiums on certain policies Offer general insurance travel insurance, fire insurance, shop insurance Improve operational efficiency Tap the rural market better

Internship at Aviva
Prospecting customers Seeking an appointment Presentation about various plans

Filling an application form

Medical and Financial documents

Age proof, address proof and pan card

Market Segmentation study