Financial Institutions and Markets

(FIM)

Group Assignment – 2

1st Phase Submission

Submitted to

Prof. R. Ravi Sankar

Submitted by

Group – B14
Anirudh Thulsi 17003
Manikanta S 17067
Saurabh Singh 17084
Vishnu Choudhary 17144

Date of Submission: 07th August 2018

Batch: 2017-19
Outline of the Study: -

1. Overview of Insurance Industry.

2. Detail About Life insurance and Non-Life Insurance.
3. How insurance organisation makes profit. (General Detail)
 Income from Underwriting (Underwriting Profit)
 Income from Investments (Investment Profit)
4. Organisation selected and products and services of each organisation.
5. The structure of the financial statements of selected companies
6. Analysis and comparison
 Financial performance evaluation for past 3 years
7. Conclusion

Companies selected for the study

 Aditya Birla Life Insurance and Reliance Life Insurance (Life insurance Companies)
 HDFC ERGO General Insurance Company and Cholamandalam MS General Insurance
(Non-Life Insurance Companies)

Group View and Understanding

Income from Underwriting

Underwriting Profits are those profits earned through accepting the proposals for insurance
providing protection for unforeseeable instances. For the cover provided by the company the
company charges premium for the services, so these profits are called as Underwriting Profits.

In this section we will be seeing through which insurance plans and interest rates the company is
generating profits.
Income from Investments

Here the existing money with the Insurance Company is invested into either money market or
securities market so that the insurance companies can gain through interests, dividends, capital
gains through market. Through this process the company will be able to meet expenses which is
incurred by the company.

Our team has planned to go through the Annual reports of these insurance providing companies
and analyse how the companies are able to maintain profits.