Submitted by:

Tushar Soni
IMNU, Nirma University
At a glance
ADITYA BIRLA GROUP Business Sectors Vision & Values People Vision Research & Development Sustainability Social Responsibility
 “Life Insurance is like a parachute – If you don’t
have it when you need it, you will never need it
again!”

ADITYA BIRLA GROUP

 INSURANCE INDUSTRY

The insurance industry of India consists of 57 insurance companies of which 24 are in life
insurance business and 33 are non-life insurers. Among the life insurers, Life Insurance
Corporation (LIC) is the sole public sector company. Apart from that, among the non-life
insurers there are six public sector insurers.

Fig. 1- MAJOR PLAYERS

IN THE INDIAN
INSURANCE INDUSTRY

Figure 1
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 LIFE INSURANCE INDUSTRY

Life insurance is one of the fastest growing sectors in India since 2000 as Government
allowed Private players and FDI up to 26% and recently Cabinet approved a proposal to
increase it to 49%. Government owned LIC which is the biggest player of the market
capturing major portion of the market

Fig.2- MAJOR LIFE

INSURANCE PLAYERS
IN THE INDIAN MARKET

Figure 2
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 CURRENT TRENDS

•Indian Insurance Industry is considered as one of the fastest growing insurance industry
in the world.

•The Indian insurance industry is expected to grow to US$ 280 billion by Financial Year
2020.

•Insurance penetration rate is steadily increasing and has reached 3.70 % in FY 2018 from
2.71 percent in 2001.

•Government insurance schemes like Pradhan Mantri Fasal Bima Yojana, Pradhan Mantri
Suraksha Bima Yojana, and Pradhan Mantri Jeevan Jyoti Bima Yojana assume importance
as they push coverage to healthier levels by spreading knowledge of insurance products
to otherwise isolated segments of the population

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 ADITYA BIRLA CAPITALS

Aditya Birla Capital Limited (ABCL) provides financial services. The Company offers
life and health insurance, private equity, corporate lending, structured finance, asset and
wealth management, currency and commodity brokerage, online personal finance
management, housing finance, pension funds, and other financial services. Ajay
Srinivasan is the CEO of ABCL and it is headquartered in Mumbai.

Through its subsidiaries and joint ventures ABCL, manages aggregate assets worth more
than Rs3000 billion and has a lending book of Rs601 billion (including housing) as of
December 31, 2019. ABCL is among the top five private diversified NBFCs in India.

ADITYA BIRLA GROUP

 ADITYA BIRLA CAPITAL LIMITED HOLDINGS
1.Birla Sun Life Insurance limited
2. Birla Sun Life Asset
Management Company
3. Aditya Birla Finance Limited
4. Aditya Birla Insurance Brokers
Limited
5. Aditya Birla Money Limited
6. Aditya Birla PE advisor limited
7. Aditya Birla MyUniverse Ltd.
8. Aditya Birla Housing Finance Ltd.
9. Aditya Birla health insurance
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10. Aditya Birla mutual fund
11. Aditya Birla pension
management
12. Aditya Birla asset reconstruction
company Limited
13. Aditya Birla motor insurance
14. Aditya Birla travel insurance
15. Aditya Birla life insurance
16. Aditya Birla wealth
management
17. Aditya Birla wellness
 ADITYA BIRLA SUN LIFE INSURANCE

Aditya Birla Sun Life Insurance Company Limited (ABSLI), is a life insurance subsidiary
of Aditya Birla Capital Ltd (ABCL). ABSLI was incorporated on August 4th, 2000 and
commenced operations on January 17th, 2001. ABSLI is a 51:49 a joint venture between
the Aditya Birla Group and Sun Life Financial Inc., a leading international financial
services organization in Canada.

ABSLI is one of India’s leading life insurance companies offering a range of products
across the customer’s life cycle, including children future plans, wealth protection plans,
retirement and pension solutions, health plans, traditional term plans and Unit Linked
Insurance Plans (“ULIPs”). ABSLI was primarily focused on ULIP policies, with almost
100% of new premiums sourced from ULIP policies in FY10. 

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 PLANS UNDER ADITYA BIRLA SUN LIFE INSURANCE

WEALTH WITH
PROTECTION PROTECTION

• ABSLI life shield plan. • ABSLI wealth secure plan.

• ABSLI income shield plan. • ABSLI wealth assure plus.
• ABSLI wealth max plan etc.

CHILDREN’S FUTURE

• ABSLI vision start plan

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 PLANS UNDER ADITYA BIRLA SUN LIFE INSURANCE

HEALTH RETIREMENT

• ABSLI Cancer Shield Plan • ABSLI Empower Pension Plan

• ABSLI Hospital Plus Plan • ABSLI Immediate Annuity Plan.
• ABSLI CritiShield Plan • ABSLI Empower Pension - SP Plan

SAVINGS WITH PROTECTION

• ABSLI SecurePlus Plan

• ABSLI Vision MoneyBack Plus Plan
• ABSLI Vision LifeIncome Plan etc.

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 PRODUCT MIX OF ADITYA BIRLA SUN LIFE INSURANCE

•ULIPs occupy the major chunk of the life insurance market of ABSLI followed by no
participating insurance and term insurance.
•Participating insurance is the least sold product as the below chart indicates.

EXHIBIT 1

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 MARKETING MIX OF ADITYA BIRLA SUN LIFE INSURANCE

•As the exhibit 2 shows ABSL uses agents as the major source for its marketing.
•Other marketing tools include third part marketing and direct marketing through
personal or door to door selling.

EXHIBIT 2

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 YEAR-ON-YEAR PERFORMANCE OF ABSLI

Had you invested Rs 10,000 in ABSL Equity Fund five years back on July 15, 2014, it would
have grown to Rs 18,383 as on July 15, 2019. This translates in to a compounded
annualized growth rate of 12.95%. In comparison, a simultaneous investment of Rs
10,000 in its benchmark - S&P BSE 200 - TRI index would now be worth Rs 16,762 (a
CAGR of 10.88%).

Data as on July 15, 2019

Source: ACE MF

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 Investment objective of Aditya Birla Sun Life Equity Fund

The objective of the scheme is to generate long-term capital growth with a target
portfolio allocation of 90% equity and 10% debt and money market securities.

Table 1: Fund Facts Aditya Birla Sun Life Equity Fund

Category Multi cap Funds Style Blend
Type Open ended Market Cap Bias Multi Cap Fund
Launch Date 14-Sep-98 SI Return (CAGR) 22.67%
Corpus (Cr) Rs 11,223 Min./Add. Inv. Rs 100 / Rs 100
Expense Ratio
1.03% / 1.98% Exit Load 1%
(Dir/Reg)

Portfolio Data as on June 30, 2019.

SI Return as on July 15, 2019.
(Source: ACE MF)

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 SWOT ANALYSIS OF ABSLI

STRENGTH
1. Has Network of 600 branches
and advisors spread over 1500
towns in India having over 130,000
advisors.
2. Backed By Aditya Birla Brand and
Sun Life financial services
3.  Emphasis on Customer
Satisfaction through Transparent
Functioning
4. Strong Capital Base
WEEKNES S
1. Low Presence in Rural Market
2. Lesser advertising as compared
to competitors
OPPORTUNITIES
1.  Growing potential in the Rural
Market
2.  Alignment with Government
Schemes
3. Better awareness amongst
people for getting insurance

THREATS
1.  Economic crisis and economic
instability
2.  Entry of new NBFCs in the sector
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 WHY ABSLI?

• Claim Settlement Ratio

It is often said that higher the claim settlement ratio, better it is. ABSLI has an astounding
claim settlement ratio of 97.15%.

• Strong legacy
Aditya Birla Capital is one of the most trusted brands & its joint venture with Sun Life
Insurance has gained accolades in the industry with the name Aditya Birla Sun Life
Insurance.

• Simple & need based products

ABSLI aims to make savings and living easier for each individual. So, each product has
been made in accordance with the basic and simple needs of every customer.

ADITYA BIRLA GROUP