Growth Profile

The turnover/sales data for the last 5 years; the Trend Line & the Exponential Growth Rate

Turnover/ Sales

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

Net profits/(Losses) for the last 5 years

Net Profits/(Losses)

2005-2006 63,158.01

2006-2007 77,362.03

2007-2008 84,462.59

2008-2009 95,734.88

2009-2010 1,06,071.68

Trend Line & the Expon. Growth Rate

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

0

20000

40000

60000

80000

100000

120000

63158.01

77362.0384462.59

95734.88106071.68

Net Profits/(Losses)

Net Profits/(losses)Exponential (Net Profits/(losses))

Profit to Net Worth (last 3 years)2007-2008 2008-2009 2009-2010

Profit/loss after tax 84462.59 95734.88 106071.68

Net Worth 30784.60 33607.91 36587.32

Profit to Net Worth 2.74 2.85 2.90

Capital Turnover ratio (last 3 years)

2007-2008 2008-2009 2009-2010

Sales

Capital Employed

Capital Turnover Ratio

Earnings per share=net profit after tax-preference dividend (last 3 years)

No. of equity shares

2007-2008 2008-2009 2009-2010

Profit/loss after tax 84462.59 95734.88 106071.68

Preference Dividend

Number of equity shares

Earning Per Share

Strategic Profile

Geographical Expansion plan

Product expansion/diversification plan

PRODUCT DEVELOPMENTIn a competitive market, there is a greater need to provide insurance products that meet the needs of our customers. LIC therefore offers a wide variety of products which fulfills the needs of different segments of the society. As at the end of the financial year 2009-10, the Corporation had54 plans available for sale.During the year Corporation introduced 5 new plans viz. Jeevan Sathi Plus, Jeevan Mangal, Health Protection Plus, Jeevan Nischay & Wealth Plus Plan, out of which Jeevan Nischay & Wealth Plus were close ended plans.

The major strategic issue at the moment

PESTEL Analysis Political Factors

Increased service tax on premiumHike in FDI limitPricing control in general insuranceFavourable regulation for rural insurance

Economic FactorsIncrease in Gross Domestic SavingsIlliteracy

Social Factors

Low insurance coverageRise in elderly populationChanging Indian perceptionIncrease in lifestyle diseases

Technological Factors

Automation of processesIncrease in CRM solutionsInternet driven information era

Environmental Factors Effect of Climate change

Legal Factors Enactment of acts such as Insurance Regulatory and Development Authority Act, 1999

Opportunities & Threats

OpportunitiesLike mobile banking mobile insurance could be a hit.New innovations in technology- measuring weather variables.Pension marketHealth insurance.

ThreatsWeather cycles.New substitute product emerging.Security factor.Increasing expenses & lower profit margins will hit hard on the smaller agencies & insurance companies.

Suggestions

•LIC can capture market share through better pricing and client segmentation.

•It needs to apply different set of rules and treatment strategies to different customer segments. However, to personalize interactions, insurers are required to capture customer information in an integrated system.

•The Group Insurance scheme is required to be promoted.

•The Crop Insurance is required to be expanded and the new schemes and policies for the villagers or the rural population are to be included.

•If the insurers are willing to take advantage of India's large population and reach a profitable mass of customers, then new distribution avenues and alliances will be necessary.

•Effective promotional measures must be taken.