metlife ppt

Fundamental Analysis Of Life Insurance Industry & Valuation Of MetLife Insurance Limited :

Fundamental Analysis Of Life Insurance Industry & Valuation Of MetLife Insurance Limited Presented By; Kajol Jaju M.B.A. (2 nd year)

Life Insurance Industry:

Life Insurance Industry Flourishing, competing and growing at rapid rates. 2010-2015 projected to be the ‘Golden Age’ for the Indian insurance industry. Due to growing demand for insurance more and more insurance companies are now emerging in the Indian insurance sector. The Indian Insurance Companies Act was passed in 1928. The IRDA Act of 1999 brought about several crucial policy changes in the insurance sector of India. It led to the formation of the IRDA in 2000 .

Important Milestone in Life Insurance business in India:

Important Milestone in Life Insurance business in India 1818 : Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning. 1870 : Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business. 1912 : The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928 : The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938 : Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956 : 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalized .

Present Scenario of Insurance Industry:

Present Scenario of Insurance Industry Private sector providing new products and variety for choice. Lot of competition and improvement of the customer service in the industry. Computerization of operations and updating of technology has become imperative in the current scenario. Rural consumer is now exhibiting an increasing propensity for insurance industry. Liberalization and Privatization Competition Information Technology Product Innovations Distribution Network Customer Education and Services

Forecasting:

Forecasting India’s life insurance industry is expected to grow by around 10% in 2010 over the previous year. Unit linked insurance policies (ULIP) and non-ULIP. ULIP contribution coming down to 85% from the high 90s. Innovative low cost structures will be used for expansion especially in interior locations, a potentially lucrative market. Reducing policy lapse rate or increasing the policy persistency ratio is the big challenge for the industry. Commissions as percent of premiums have also declined to 6.71% during fiscal 2009-2010. Branch expansion to continue at semi-urban and the larger of rural centers by private players.

Company Profile:

Company Profile The origins of Metropolitan Life Insurance Company go back to 1863,found the National Union Life and Limb Insurance Company. In 2000.Metropolitan Life Insurance Company launched the 7 th largest IPO ever held in the United States. MetLife India Insurance Co. Pvt. Ltd is a joint venture between MetLife Group and its Indian partners, including J&K Bank, Dhanalakshmi Bank, Karnataka Bank, Karvy Consultants, Geojit Securities, Way to Wealth, and Mini Muthoothu. MetLife was the first insurance company which established a financial holding company with a nationally chartered bank.

Market Share of MetLife:

Market Share of MetLife

Facts and Findings:

Facts and Findings MetLife’s financial planning services No Obligation Discovery Interview Gather Information Analysis and Development Plan Presentation and Delivery Implementation Monitor and Update as Needed Insurance seekers are specifically looking for ULIPs Pension &Children are in the preference

Analysis and Interpretation:

Analysis and Interpretation MetLife is a leader in savings and retirement products and services for individuals, small businesses and large institutions. The company conducts its business operations through five segments namely, institutional, individual, international, auto and home, as well as the corporate. Global Markets Directs MetLife, Inc –Financial and Strategic Analysis Review is an in-depth business, strategic and financial analysis of MetLife,Inc.

Conclusion:

Conclusion The Company’s strengths and weaknesses and areas of development or decline are analyzed. The opportunities open to the company are considered and its growth potential assessed. Competitive or technological threats are highlighted. Performance on the basis of liquidity ratio is not in good position due to ratio below the standard. The turnover ratios the performance of MetLife Insurance ltd. Is in neutral condition .

Forecasting:

Forecasting MetLife Inc. expects its profits to decline in 2011,though MetLife does not expect the impact to be adverse. The interest rate on the 10-year Treasury note remains 2.5% through 2011,MetLife’s earnings might reduce by about 20% per share in 2011. Management of MetLife expects operating earnings to grow by about 50% in 2010 and fall in the range of $3.3 billion to $3.6 billion or $4.00 to $4.40 per share. MetLife’s bottom line will be significantly less sensitive to equity market movements and interest rates. MetLife is poised to propel its growth as the economy rebounds in the near to medium term.

Suggestions:

Suggestions It has strong distribution network reaching wide range of customers through multiple channels including direct marketing, banc assurance, agents and internet. The company anticipates large closeout business to come up in future which would increase the demand for the company’s services. Understand strengths, weaknesses, opportunities and threats along with business strategy and value chain. Enhance business/sales activities by understand consumers' businesses better. Capitalize on competitor's weaknesses and target the market opportunities available to them. Scout for potential acquisition targets, with detailed insight into the companies’ strategic, financial and operational performance.

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