BIRLA SUN LIFE INSURANCE

FUNDAMENATAL & TECHNICAL ANALYSIS OF OIL & GAS SECTOR

SOUMYA KATIYAR
JN180245
PGDM-SM
INSURANCE INDUSTRY
• The insurance industry of India consists of 57
insurance companies
• Among the life insurers, LIC is the sole public
sector company
• In FY19 premium from life insurance business
increased 3.66% to Rs 1.09 trillion
• Insurance industry is expected to reach US$
280 billion by 2020
• Tax incentives on insurance products makes
it more attractive
• Insurance sector divides into two categories:
o Life Insurance
o Non - life Insurance
TOP 10 INSURANCE COMPANY OF INDIA
• Life Insurance Corporation of India (LIC)
• ICICI Prudential Life Insurance
• SEBI Life Insurance
• HDFC Standard Life Insurance
• Max Life Insurance
• Bajaj Allianz Life Insurance
• Birla Sun Life Insurance
• Reliance Nippon Life Insurance
• Tata AIA Life Insurance
• PNB Met life India Insurance
BIRLA SUN LIFE INSURANCE
• ABSLI is a 51:49 joint venture between the Aditya
Birla Group and Sun Life Financial Inc
• It’s headquartered is in Mumbai
• It is one of India’s leading life insurance companies
• Incorporated on August 4th, 2000 and commenced
operations on January 17th, 2001
• ABSLI has a nation-wide distribution presence
through 425 branches
• The company has over 10,000 employees and more
than 16 lac active customers
• It has 6 distribution channels and over 83000 sale
agent
• Total AUM of ABSLI stood at Rs. 389,548 million on
December 2018
SWOT ANALYSIS
STREAGHTS WEAKNESS
• Customer centric products and • There is no plan for low income
services group
• Training process of the company • Fees for the advisor is higher
is very strong than the other companies
• Different plans for different • Less presence in rural marketing
people • No. of advertisement is very less
• Very strong customer base

OPPORTUNITIES SWOT THREATS

• Insurance market is very big, • Still competition from LIC

where company can expand • Entry of new firms in insurance
• Huge potential in rural market sector
• Government insurance schemes
being launched at very low price
 JOB DESCRIPTION
DESCIPTION OF
POSITION
ROLES AND RESPONSIBILITIES
Organization Name Aditya Birla sun Life Insurance • To spread the awareness of insurance of this
company to people
Job Title Finance Intern • To recommend the insurance to the
customers according to their needs
• To collect all the details from the customers
Location / Base Madan Giri, New Delhi when they agree to buy insurance
• Handling the queries of the clients
• Updating the share price of large-cap
Department Finance Department companies of the oil & gas sector
• Finding out the present and future trends in
short & long term of selecting companies
Reporting To Mr. Nikesh Ruparel • To ask some questions from customers to
know their risk profile
Tenure Two Months (1st May 2019 to • Finding the risk profile of the customers
30th June 2019)
 JOB SUMMARY
• Trading (Sensex & Nifty)
o Sale
o Short Sale
• Analysis of Oil & Gas Sector
o Upstream - Search for underwater and underground natural
gas fields or crude
o Midstream - Transportation, storage and processing of oil and
gas
o Downstream - filtering of the raw materials
• Selling of Insurance
o Child Plan (For Twenty years)
o Wealth Plan (For Twenty years)
o Retirement Plan (For Twenty years)
o Vision Money Back Plus Plan (For Twelve years)
o Monthly Income Plan (For Twelve years)
TECHNICAL ANALYSIS OF OIL & GAS

For technical analysis, I have chosen large-cap

companies of Oil & Gas sectors and those are:
• ONGC
• GAIL
• Petronet LNG
• IGL
• Oil India
• Gujrat Gas
• Guj State Petro
MARKET INDEX & NAV
• This market index and NAV(Net Asset Value) are calculated by updating shares
price of large-cap companies od Oil & Gas sector on daily basis

1000
MARKET INDEX NAV
1001.82
10 10.05
10.01

1000.71 971.37
969.57 970.16 963.72 9.61 9.58
958.54 968.7 9.57
965.21 954.82 9.45 9.47
INDEX

949.11 9.58 9.43

9.29 9.28 9.40

NAV
960.02 959.83
951.01 9.48
957.85 9.44
949.75 948.63 9.37 9.26
941.6 9.35
939.52
9.23 9.20

DATE
DATE
LONG TERM ANALYSIS (CANDLESTICKS CHART)

There are some reversal trends, which is helpful to find out the future
trend, and those are:
• Rounding Bottom
• Cup with Handle
• Bump and Run
• Double Top
• Double Bottom
• Triple Top
• Triple Bottom
• Head and Shoulder
• Head and Shoulder Bottom TREND = SIDEWAYS
DOUBLE BOTTOM = BUY
HEAD & SHOULDER = SHORT
SHORT TERM ANALYSIS (CANDLESTICKS CHART)

In short term analysis, we try to find out some positions like:

• Star Position

• Harami Positions

• Doji

• Hammer Hanging Man

PRESENT TREND = UP TREND
• Inverted Hammer Shooting Star FUTURE TREND = DOWN TREND
SHORT TERM = DOWN TREND
 SELLING THE INSURANCE
I have dealt 5 types of insurance in my internship so, In my team the
data of the sale of the insurance was following below
PLANS NO. OF REVENUE
UNIT SOLD (PREMIUM)
Child Plan 5 Rs.2,50,000 INSURANCE PLAN
Child Plan
Wealth Plan 2 Rs.1,00,000 5, 11%
Wealth Plan
2, 4%
Retirement Plan 8 Rs.4,00,000
21, 47%
8, 18%
Retirement Plan

Vision Money 9 Rs.4,50,000 9, 20% Vision Money

Back Plus Plan Back Plus Plan
Monthly Income
Monthly Income 21 Rs.10,50,000 Plan
Plan
TOTAL 45 Rs. 22,50,000
BCG MATRIX & COMPETITOR PROFILE MATRIX
COMPETITOR PROFILE
BCG MATRIX MATRIX (CPM)
BIRLA LIC BAJAJ

Critical Success Weight Score Weighted Score Weighted Score Weighted

Factor Score Score Score
QUESTION
Security 0.25 3 0.75 5 1.25 3 0.75
STAR MARK
Returns 0.20 4 0.80 2 0.40 3 0.60
Market Share 0.15 4 0.60 5 0.75 4 0.60
Insurance Tenure 0.12 3 0.36 3 0.36 3 0.36

Brand Reputation 0.10 3 0.30 4 0.40 3 0.30

(BIRLA SUN LIFE Financing Position 0.07 4 0.28 4 0.28 3 0.21
INSURANCE) DOGS Range of Products 0.06 4 0.24 3 0.18 3 0.18
CASH COW Customer Retention 0.05 3 0.15 3 0.15 3 0.15

TOTAL 1.00 3.48 3.77 3.15

PORTFOLIO MANAGEMENT
There are three steps in the process of portfolio (II) GOAL SETTING
management and those are:
For the goal setting process, I have chosen the person of 30
years old and his risk profile is moderate investor and ask his
goals for short-term, mid-term and long-term and asked the
(I) RISK PROFILING present price of those goals are following:
There are six types of risk profiles of investors
and those are:
Short-Term Mid-Term Long-Term
1. Very Cautious Investor (7% Return) (Age – 35) (Age – 40) (Age – 45)
 Car (PV-  Medical  Retirement
2. Cautious Investor (10% Return) Rs.1000000) Insurance Fund (PV-
(PV- Rs.50000pm)
 House (PV-
Rs.1000000)
3. Moderate Investor (12% Return) Rs.1500000)  Child
 Imported Car Education
4. Aggressive Investor (15% Return) (PV- (PV-
Rs.5000000) Rs.3000000)
5. Very Aggressive Investor (18% Return)
(III) ASSETS ALLOCATION
Short-Term Mid-Term Long-Term
(5 years) (10 Years) (15 Years)
CAR MEDICAL INSURANCE RETIREMENT FUND

PV- Rs.10,00,000 PV- Rs.10,00,000 PV of Annual income –

50,000*12 =Rs. 6,00,000
FV- Rs.12,16,652.90 (4% FV- Rs.14,80,244.28 (4% Inflation)
Inflation) FV- Rs. 19,46,038.51 (4%
PV- Rs.4,76,599.04 (12% Return)
Inflation)
PV- Rs.8,67,456.7 (7%
Return) Principle Amount of the
TOTAL AMOUNT
TOUR Interest- Rs.1,62,16,987.6 = Short-Term Amount + Mid-Term Amount +
HOUSE
PV- Rs.5,00,000 PV- Rs.5,41,289.38 long-Term Amount
PV- Rs.15,00,000
FV- Rs.7,40,122.14 (4% Inflation) = 21,68,641.75 + 30,97,893.78 + 13,92,391.43
FV- Rs.18,24,979.35 (4%
PV- Rs.2,38,299.52 (12% Return) CHILD EDUCATION = Rs. 66,58,926.96
Inflation) PV- Rs.30,00,000

PV- Rs.13,01,185.05 (7% IMPORTED CAR FV- Rs.58,43,701.49 (4%

Return) Inflation)
PV- Rs.50,00,000
PV- Rs.8,51,102.05 (12%
FV- Rs.74,01,221.42 (4% Inflation) Return)
PV- Rs.23,82,995.22 (12% Return)

RS. 21,68,641.75 RS. 30,97,893.78 RS. 13,92,391.43

LEARNING OUTCOMES
• Convincing the customers to buy insurance
• Learnt which type of product I should recommend to the customers
according to their need
• Learnt the policies of different investment plans of this Birla Sun Life
Insurance
• Comparative study between this company with its competitors
• Learnt to analyses the stock market by calculating index and NPV of Oil
& Gas sector
• Learnt about the sectors and their top line and bottom line
• Manage the portfolio of the customers according to their short-term,
mid-term and long-term goals
• Learnt how to trade, when to trade and in which company, money should
be invested
SUGGESTIONS
• After the analysis of customers review it is suggested to give more
advertisements in new papers and internet for the increasing the
customer knowledge and investment part also
• Now a days most of the customers need health insurance so, company
should provide the details of this plans to their interns, so that they can
recommend it to the customers to increase the revenue of the company
• Company should make their customers full body check-up in case of any
fraudulent created the customers at the time of the insurance
• Company should start the new plans for low income group and rural
market
SPECIAL THANKS TO
Mr. Nikesh Ruparel (Industry Mentor)
Dr. A. K. Puri (Academic SIP Mentor)
All Penalty Members