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

Net Profits/(Losses)
120000
106071.68
100000
95734.88
84462.59
80000 77362.03 Net Profits/(losses)
Exponential (Net Profits/
60000 63158.01 (losses))

40000

20000

0
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
 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
No. of equity shares

(last 3 years)
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 DEVELOPMENT
In 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 premium

Hike in FDI limit
Pricing control in general insurance
Favourable regulation for rural insurance

Economic Factors
Increase in Gross Domestic Savings
Illiteracy
Social Factors

Low insurance coverage

Rise in elderly population
Changing Indian perception
Increase in lifestyle diseases

Technological Factors

Automation of processes
Increase in CRM solutions
Internet 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

Opportunities
Like mobile banking mobile insurance could be a hit.
New innovations in technology- measuring weather variables.
Pension market
Health insurance.

Threats
Weather 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.