Transcript
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The Goldman Sachs Group, Inc.
Goldman Sachs Research
Ind ian Insurance t each-in
eg ecte or too ong, mer ts a re oo
July 2011
Tabassum Inamdar Goldman Sachs India Securities +91-22-6616-9052 tabassum.inamdar@gs.com
The Goldman Sachs Group, Inc. does and seeks to do business with companies covered in its research reports. As a result, investors should be awarethat the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in
making their investment decision.
For Reg AC see the end of the text. For other important disclosures, see the Disclosure Appendix, or go to www.gs.com/research/hedge.html.
Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.
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Som e Bas ics
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Prem ium inc om e: Types of po l ic ies so ld
Types of policies sold i.e. Term/risk policies or endowment (savings product)
erm po c es s prov es pure r s cover on ea
Endowment = is savings products with risk cover/term attached
Endowment can be of two t es - ULIP or traditional roduct
ULIPs - are transparent products where a policy holder is informed about
(a) funds allocated to AUM, (b) cost allocated, (c) AMC fees, (d) othermiscellaneous charges, (e) mortality charges, (f) asset allocation
Traditional product A non-transparent product. The investment guidelinesare provided by IRDA. As per current rules, 65% of funds have to beinvested in government securities.
Goldman Sachs Global Investment Research 3
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Prem ium inc om e: Types of po l ic ies so ld
and Class i f ic a t ion d i f ferenc eTypes of policies sold i.e. Individual, group, single or regular
Single policy holder pays premiums only once. Minimum holding period is now five years
egu ar po cy o er pays prem um on regu ar n erva s e.g. quar er y, a -year y, year y e c.
Minimum policy term is now five years. Top-ups both the above policy holders can pay additional premium over and above contracted
amounts at their convenience. Now considered as single premium. Policyholder is required to buy risk.
Group term policies these are typically policies bought by companies to insure employees, will alsoinclude policies against mortgages, credit cards
Group superannuations fund based
Classifying premiums
FYP - when a new policy is sold the premium collected is classified as first year premium
Renewal premium premium income received from existing policy holders
Annualized premium equivalent (APE) FYP + 10% of single premium. Companies generally classifyall group premiums as single premium irrespective of whether this is received on regular intervals oras single premium
Minimum risk cover has to be 10 X annual premium on regular premium products and 125% of SP
Goldman Sachs Global Investment Research 4
policy or top-up premium exceptions are pension/annuity products
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Most po l ic y sa les now are ULIP
Ex.1: 70% of incremental sales are ULIP
94 94 96100.0%
120.0%
85
6963
90
82
70 67
77
82
88
70
80.0%
40.0%
60.0%
20.0%
Goldman Sachs Global Investment Research 5Source: Company data.
.
Bajaj Allianz HDFC Standard Life ICICI Prudential Life Max New york Life SBI Life
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w i t h s ign i f i c an t invest m ent in equ i t ies
Ex.1: Significant investment in equity portfolio Ex.2:which has risen sharply with the rise in equity markets
Others2%
Dec-10
33.934.6 34.8
36.9
35.936.0
38.0
5,000
6,000
Equity (MarketValue)
36%
Fixed income (Bookvalue)
28.1 28.0 28.127.5
25.9
28.0
30.0
32.0
.
3,000
4,000
62%
21.4
23.8
20.0
22.0
24.0
.
0
1,000
,
Mar-08 Jun-08Sep-08Dec-08Mar-09 Jun-09Sep-09Dec-09Mar-10 Jun-10 Sep-10Dec-10
Equity AUM (Rs bn) % of To tal AUM (RHS)
Goldman Sachs Global Investment Research 6Source: Life Insurance council.
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Prem ium income: Lapsa t ion and surrenders
Policy lapsation
-.
30% in the first/second year of policy. On policies sold till August 2010 insurance companies can retain the amount receivedfrom policy holder on lapsed policies and not refund the same.
New regulations permit companies to retain only a smaller amount, and this will impactmargins earned by companies. Refunds can be made only after the fifth year.
Over the long term, it is important to have lower lapsations in order to gain size/scale..
Policy surrender
Policy holders surrender policies prior to/ before maturity of the term.
Charges on surrender also are now regulated, unlike in the past when companies couldretain significant amount on surrenders.
Policy-holders are not allowed to surrender for the first five years.
Goldman Sachs Global Investment Research 7
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Foc us on pers is tenc y increas ing
Ex.1: Companies need to focus on persistency (13th Month FY11)
81
80
90
56
6670
53
69
40
50
60
70
thpersistency(%)
0
10
20
30
13thMo
Ex.2: Compared with this, persistency ratios are clearly high inAsia ranging between 82.3%-95.7%
BajajAllianz HDF CStandardLife ICICIPrudential
Life
KotakOldMutual
MaxNewyorkLife
RelianceLife S BILife
13-month
persistency
(latest available)
Lapse rate
AIA 94.1% NAAXA AP (HK) 86.0% NACathay 95.7% NAChina Life 93.8% NA
- -
Goldman Sachs Global Investment Research 8Source: IRDA, Company data.
. .Korea Life 82.3% 2.5%Ping An 90.0% NA
Samsung Life 82.3% 2.5%
Sony Financials (12-month) 95.2% 4.8%T&D (12-month) 93.0% 7.0%
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New regula t ions have reduced the amount t ha t a
c om pany c an re t a in on sur render /lapsed po l ic ies
Surrender Prescribed norm for Prescribed norm for ICICI Max New Reliance Life SBI Life HDFC Kotak Birla Sunlife Bajaj Allianz
Ex.3: Revised surrender charge ceiling significantly lower than those existed before the guidelines came into effect
charges policies having
annualized premium of
upto Rs25000
policies having
annualized premium
>Rs25000
Prudential
Life
Insurance
York Life
Insurance
Insurance Insurance Standard
Life
Insurance
Mahindra Old
Mutual Life
insurance
Insurance Life
Insurance
Year 1 *Lower of 20% of APE/ FV
*Maximum of Rs3000
*Lower of 6% of APE/
FV
*
70% NIL-40% 100% 15%-20% 100% 20%-100% 40%-100% 50%
Year 2 *Lower of 15% of APE/ FV
*Maximum of Rs2000
*Lower of 4% of APE/
FV
*Maximum of Rs5000
70% 15%-40% 100% 10%-12% 50% 15%-80% 20%-50% 50%
Year 3 *Lower of 10% of APE/ FV
*Maximum of Rs1500
*Lower of 3% of APE/
FV
*
10% 10%-30% 100% 7.5%-9% 30%-50% 10%-70% 13%-25% 50%
Year 4 *Lower of 5% of APE/ FV
*Maximum of Rs1000
*Lower of 2% of APE/
FV
*Maximum of Rs2000
5% 5%-20% 20% 2%-5% 15% 4%-10% 5%-17.5% 20-40%
Year 5 onwards NIL NIL NIL NIL-10% NIL -10% NIL- 5% NIL NIL-5% NIL-13% NIL-26%
Goldman Sachs Global Investment Research 9Source: Company data.
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Ex pens ing based on s t eady st a t e
Key cost elements for insurance companies
Commissions paid will vary depending on: (a) types of policies sold ULIP/traditional,
(b) single vs. regular premium, (d) distribution channel and the effectiveness of such channel
Other expenses Salaries
Training of agents Advertising
All cost are written-off under Indian accounting
Policyholders charges assumes scale, the excess cost therefore is funded by
policyholders
Insurance companies thus report losses in the initial years
Over time, cost ratios for companies will fall as the regular premium exceeds new
Goldman Sachs Global Investment Research 10
premium
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Cost c u t t ing is t he new m ant ra , insurers have
m ore rat iona l iza t ion room ahead
Ex.1: Cost ratios are reducing, but still significantly higher than LICand Asian peers
Ex.2: Asian companies have fairly low cost of operations, reflectingtheir maturity cycle and/or amortization of cost for some (2011E)
7.5%
7.9%
7.2%
7.8%
6.0%
7.0%
8.0%
9.0%
31.6
41.7
39.0
31.0
30.0
35.0
40.0
45.0
2.4%
4.6%
5.0%5.3%
3.0%
4.0%
5.0%
.
17.7 17.8
25.9
8.6
15.5
21.5
15.5
20.0
24.8
6.5
16.7 16.6
12.2
19.5
24.823.8
6.810.0
15.0
20.0
25.0
0.0%
1.0%
2.0%
C ath ay C hi na Li fe Dai -i ch i (1 2-
month)
Korea L ife P ing An Samsung Life Sony Financials
(12-month)
T&D (12-month)
0.0
5.0
BajajAllianz HDFCStandardLife ICICIPrudentialLife KotakOldMutual MaxNewyorkLife RelianceLife SBILife
FY09 FY10 FY11
Goldman Sachs Global Investment Research 11Source: IRDA, Company data
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Im ply ing h igher pro f i t s
Ex.1: Companies now likely to make profit/lower losses as they moderate growth, focus on cost cuts
5
3
11
3
8
2
10.0
.
Accumulated losses FY10 Profi t (Loss) in FY10 Profi t (Loss) in FY11
0-3
-10
-4-3
0
-3-1 -1
(10.0)
-
-20
-15
-27(30.0)
(20.0)
-35
(40.0)
Bajaj Allianz
Life
Birla Sunlife HDFC
Standard Life
ICICI
Prudential
Kotak Life Max New York
Life
Reliance Life
Goldman Sachs Global Investment Research 12Source: IRDA, Company data
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What dr ives insuranc e c om pany m arg ins ,
rof i t s / ro f i t a bi l i t ?
AMC fees/ Investment spread
Impacted by economic cycles, types of policies sold and investment philosophy AMC fees charged could vary between products
Persistency ratio - higher ratio, for higher profitability
Profits are realized gradually and it is important to retain customers over the term of the
Lapse ratio could range around 10-30% in the first two years Well-trained agency force helps in keeping the persistency ratio high
-
For new companies, the expense spread is negative as companies do not have scale Long-term expenses should move with inflation or company will need to revisit pricing
Mortalit s read - sco e for ositive s read
Currently, using outdated LIC (94-96) mortality tables, companies likely enjoying positivespread
IRDA rules require insurance companies to share profit on traditional products in the
Goldman Sachs Global Investment Research 13
rat o o 90:10 .e 90 or nsure an 10 or nsurer/s are o er. n t e case oproducts, 100% of profit is retained by shareholders of the insurance company.
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Regu lat ions c ont inued
Ex.1: Flexibility to recoup margins on account of lower surrender charges hampered by ceiling on reduction in gross
yields of policies surrendered/ lapsed in different years
Annualized Premiums Paid in (years)
Maximum reduction in yield (Difference
between Gross and Net Yield (% pa))5 4.00%
6 3.75%
7 3.50%
8 3.30%
9 3.15%
10 3.00%
11 and 12 2.75%
13 and 14 2.50%
an t erea ter .
Sum assured Entry age < 45 years Entry age > 45 years
Single premium 125% of premium 110% of premium
Ex.2: All unit-linked products (other than pension and annuity products) to have a mandatory mortality cover or a health cover
Regular premium
10 times Annualized premiums or
(0.5 * (70 - age) * Annualised premium)
whichever is higher with a floor at 105%
of total premiums paid
7 times Annualized premiums or
(0.25 * (70 - age) * Annualised premium)
whichever is higher with a floor at 105%
of total premiums paid
Health cover Entry age < 45 years Entry age > 45 years
Goldman Sachs Global Investment Research 15
Regular premium5 times annualized premiums or
Rs. 100,000 p.a whichever is higher with afloor at 105% of total premiums paid
5 times annualized premiums or
Rs. 75,000 p.a whichever is higher with afloor at 105% of total premiums paid
Source: IRDA, Company data.
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How t o va lue insurance c ompan ies?
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Appra isa l m et hod
Appraisal Value = New Business Value X Multiple + Embedded Value
m e e a ue = e wor + o ro on po c es n orce
New Business Achieved profit (NBAP) New Business Value (NBV) PV of profitsold on new policies sold
NBV / FYP = New Business Margin
Goldman Sachs Global Investment Research 17
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Appraisa l va lue= EV + st ruc t ura l va lue
Embedded Value
Ad usted net asset value = market value of Value of in-force business i.e olicies alread sold =shareholders assets market value of
shareholders liabilities
Present value (PV) of transfers to shareholders expense
overrun adjustments solvency margin adjustment
PV of transfer to shareholders = PV ofany amounts projected to be availablefor distribution to shareholders (10% of
surplus in case of participating policies-
Expense overrunadjustment = Excess of
projected actualexpenses over long term Solvency margin adjustment
participating business. IN case of unit
linked business, shareholders earn fees
unit costs
PV of transfer to shareholders from one years new business X Capitalisation factor
tructura va ue
Goldman Sachs Global Investment Research 18Source: Watson, Wyatt Insurance Consulting Private Ltd , Goldman Sachs Research.
the profitability of the new businessdone over the past one year. This is
post cost of capital
multiple reflecting how stable thefranchise is and how fast it is expected
to grow
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New Bus iness Marg in - c a lcu lat ion
No. of Premium per Premiums The margin companies earn willde end on
0 1000 100 100,000 -200
1 950 100 95,000 -1002 900 100 90,000 0
3 800 100 80,000 200
4 750 100 75,000 700
1. Persistency
2. Tenure of policy assumed
3. Tax rate assumed5 700 100 70,000 2,000
6 650 100 65,000 3,000
7 600 100 60,000 4,000
8 550 100 55,000 6,0009 500 100 50,000 8,500
4. Opex assumption
5. Capital required
6. Discount rate assumed10 475 100 47,500 10,000
Discount rate 13.5%
NPV of Profits 12,101
NPV of profits/1st year Premium 12.1%
7. Returns assumed onequity/debt
Companies do not disclose theabove info except for the taxrate.
Goldman Sachs Global Investment Research 19Source: Goldman Sachs Research.
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Margins dow n on new regula t ions
Ex.1: Margin of Indian companies has been falling
ICICI Pru Life 19.2 18.9 19.0 19.0 18.7 16.1 17.9
Bajaj Allianz 20.1 18.6 18.4 - 18.5 11.9 16.6
Max India 21.8 21.0 20.0 - - - 19.5Reliance Life - 20.9 19.1 17.9 18.0 - 16.7HDFC Life - - 25.8 28.3 - 10.1 18.8
Goldman Sachs Global Investment Research 20Source: Company data
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Em bedded Value c a lc u la t ion
Calculation of EV (Rs mn) FY2007 FY2008 FY2009 FY2010 FY2011 FY2012E
Embedded Value
Opening EV 6,700 13,160 22,840 27,230 32,160
NW 2,060 3,620 7,670 8,800 12,320
VIF 4,640 9,540 15,170 18,430 19,840
Unwinding of Discount 1,020 1,900 2,610 3,360 3,268
% 14.4 11.4 12.3 12.0New business premium income (APE) 7,690 13,080 15,952 16,676 18,036 19,537
. . . . .
Value of New Business 2,670 3,120 2,670 2,350 2,344
% of Premium income 20.4 19.6 16.0 13.0 12.0
Other adjustments (230) (2,840) (2,800) (780) 0
Operating Variance 220 90 1,220 790
Maintenance Expenses Over runs (350) (3,920) (3,770) (2,550)
t er a ustments 980
Market value movement 440 (560)
New Capital Infusion 3,000 7,500 1,910 0 0Closing EV 13,160 22,840 27,230 32,160 37,772
YoY change (%) 100 42 16 15 15Note: This is a generic illustration and not representative of any company.
Goldman Sachs Global Investment Research 21Source: Company data, GS estimates
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Despi te shor t -t erm c oncerns, Ind ian com panies li k e ly
t o t rade at a p remium, given long-t e rm grow t h po ten t ia l
Valuation comparison Vs. regional peers
Asian Life Insurers
Multiple on
NBV (X)
Implied
value to EV
(X)
Implied
value to
NBV (X)China Life 19.4 2.2 35.2
Ping An 21.6 2.9 32.8
Samsung Life 1.2 27.8
Korea Life 0.9 19.0
Dai-ichi 0.5 14.0
Sony Financials 0.8 15.0
T&D 0.5 16.7
Indian Life Insurers
Bajaj Allianz Life 14.0 1.6 39.3HDFC Standard Life 14.0 2.1 26.7
ICICI Prudential Life 14.0 1.7 34.5
Kotak Life 14.0 1.8 30.5
Max Newyork Life 14.0 1.9 30.5
SBI Life 14.0 2.1 27.1
Goldman Sachs Global Investment Research 23Source: Company data, Goldman Sachs Research estimates
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K ey par t i c ipan ts
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Indust ry in a c onso l idat ion/reassessm ent
hase marke t sha res f luc t uat i n
Ex.1: Industry led by private players has shrunk in FY11 Ex.2: Driven by decline in regular premium products
FY11Individual Single
PremiumIndividual Non
Sin le Premium Total rou TotalRetail APE - % yoy FY2008 FY2009 FY2010 FY2011
Total Premium
collection Rs mn
y-o-y
(%) Rs mn
y-o-y
(%) Rs mn
y-o-y
(%) Rs mn
y-o-y
(%)
7,798 -2.9 18,087 -41.3 8,739 54.5 34,624 -22.2454 7.1 15,955 -28.9 4,363 -35.1 20,771 -29.8
5,889 120.1 29,057 16.8 5,709 13.0 40,654 24.7
19,294 1489.2 34,920 -31.4 24,395 117.7 78,610 24.1
Birla Sunlife
Bajaj Allianz
HDFC Standard Life
ICICI Prudential
Bajaj Allianz 79.6 -32.8 -14.2 -39.5
Birla Sunlife 138.8 42.9 -6.5 -29.1
HDFC SL 78.6 3.5 10.2 17.8
ICICI Pru 68.1 -22.3 -1.4 -24.7
Max NY 70.4 21.8 -0.3 9.02,804 49.3 6,850 -25.9 2,878 30.0 12,531 -6.1
2,333 20.3 17,007 8.7 1,255 40.1 20,596 11.4
7,197 171.8 19,389 -37.9 3,763 -29.3 30,350 -22.6
19,363 245.2 28,514 -27.5 27,830 9.3 75,707 7.5
82,534 163.0 221,976 -22.1 89,303 31.7 393,813 2.6
276,202 4.1 245,835 4.3 342,411 64.8 864,447 21.9
Private players
LIC
Kotak Life
Max NY
Reliance Life
SBI Life
Kotak Life 87.8 24.3 -19.0 -23.2
SBI Life 106.8 12.2 37.2 -21.7
Private 85.1 1.6 7.8 -19.0
LIC 0.2 -20.6 31.3 8.7
Industry 29.8 -9.5 18.2 -5.4
Ranking based on retail
Ex.4: and ranking for key players
Market
share in
retail APE
Bajaj
Allianz
Reliance
Life
SBI Life HDFC
Standard
Life
ICICI
Prudential
Birla
Sunlife
Kotak
life
Max NY LIC
Ex.3: Changes in strategies has influenced market share (%)
358,735 20.9 467,811 -10.1 431,714 56.7 1,258,260 15.1Industry
ICICI Prudential 1 1 1 1 1 1SBI Life 9 3 3 4 2 2
HDFC Standard Life 3 4 4 6 5 3
Reliance Life 11 7 5 3 4 4
Ba a Allianz 2 2 2 2 3 5
FY2003 0.5 0.0 0.5 1.2 3.4 1.2 0.3 0.7 91.4FY2004 1.2 0.2 0.4 1.0 4.8 2.0 0.7 1.0 86.4
FY2005 2.9 0.2 0.7 2.3 8.7 3.3 1.2 1.4 74.7
FY2006 6.4 0.4 1.5 3.7 10.1 2.7 1.7 2.1 65.8
FY2007 7.8 1.7 3.1 3.1 9.9 1.7 1.3 1.9 64.5
Goldman Sachs Global Investment Research 25
Max NY 5 5 7 7 7 6
Birla Sunlife 4 6 6 5 6 7
Kotak-Old Mutual Life 8 10 9 8 9 9
. . . . . . . . .
FY2009 8.0 6.3 6.1 4.9 10.9 5.2 2.5 3.4 43.0
FY2010 5.7 5.7 7.3 4.6 9.3 4.1 1.7 2.9 47.7
FY2011 3.7 4.0 6.0 5.9 7.3 3.2 1.4 3.4 54.3
Source: IRDA.
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Companies c onsol idat ing ne t w ork
Agents Branches Employees
FY08 FY09 FY10 FY11 FY08 FY09 FY10 FY11 FY08 FY09 FY10 FY11
BajajAllianz 250,239 204,941 167,741 170,000 1,007 1,164 1,151 1,050 20,764 21,038 20,000 14,938HDFCStandardLife 144,000 207,626 198,879 148,713 572 595 568 514 15,411 14,506 14,397 12,094ICICI
Prudential
Life 291,000 299,879 241,830 176,076 1,956 2,104 1,921 1,400 16,317 28,900 20,000 13,000
KotakOldMutual 34,723 42,082 35,897 39,171 150 197 214 202 5,000 5,200 6,400 4,300MaxNewyorkLife 36,896 84,355 72,813 43,692 242 705 715 500 7,648 15,402 10,454 7,000Reliance Life 184 201 149 613 195 565 189 304 744 1 145 1 247 1 248 14 781 21 688 16 656 13 183
SBILife 40,643 68,993 65,532 72,085 200 433 494 494 3,738 5,910 5,985 5,985
Goldman Sachs Global Investment Research 26Source: Company data.
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Append ix Insurance Marke t penet ra t ion
16.0 5.0
Ex.1: Life premium to GDP (%) Ex.2: Non Life premium to GDP (%)
13.8
10.0 10.09.610.0
12.0
14.0
4.5 4.5
3.9 3.7
3.13.0 3.0 3.0
2.93.0
3.5
4.0
4.5
.7.2
6.5
5.4 5.14.6
3.5
2.0
4.0
6.0
8.0
0.6
0.5
1.0
1.5
2.0
2.5
0.0 0.0United
States
Switzerland South Korea Germany France Taiwan United
Kingdom
Austral ia South Afr ica Ind ia
Goldman Sachs Global Investment Research 28Source: IRDA, Company data, Swiss Re
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Techn ic a l ac c ount o f po l icy ho lder
Proforma Revenue account for a Life Insurance CompanyNon-
Participating participating Linked Total
Premiums earned - net of reinsurance
Income from investments (including profit/loss on sale of investments)
Other income (to be specified)
Commission
Operating expenses relating to insurance business
Provision for tax
Other provisions
Total (B)
Benefits paid (net)
Interim bonuses paid
Change in valuation of liability in respect of life policies / Reserves
Total (C)
Surplus / (Deficit) (D=A-B-C)
Goldman Sachs Global Investment Research 29Source: Goldman Sachs Research estimates.
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MCEV HDFC St andard Li fe
Change in MCEV 1H 2H FY2011
Opening MCEV 33.80 40.20 33.80Change in assumptions (0.20) (0.70) (0.90)
New business profit (before over-run) 3.90 1.50 5.40
Expense overruns (0.70) (0.70) (1.40)
Return on in-force 0.90 1.00 1.90
Other income and variances 0.60 (0.40) 0.20
EV operating profit 4.50 0.70 5.20
Investment variances and economic assumption 0.90 0.30 1.20
EV profit 5.40 1.00 6.40ap ta n ect on . . .
Closing MCEV 40.20 42.10 42.10
New business profit 3.90 1.50 5.40
New business EPI 13.70 14.90 28.60
. . .
New business margin post impact of acquision cost 23.60 5.56 14.20New business profit post impact of acquisition cost 3.23 0.83 4.06
Goldman Sachs Global Investment Research 30Source: Company data, Goldman Sachs Research
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Disc losure Appendix
u y ,
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Disc losure Appendix
RegAC
I, Tabassum Inamdar, hereby certify that all of the views expressed in this report accurately reflect my personal views about the subject company or companies and
. , , , ,expressed in this report.
Coverage group(s) of stocks by primary analyst(s)Compendium report: please see disclosures at http://www.gs.com/research/hedge.html. Disclosures applicable to the companies included in this compendium can be
oun n e a es re evan pu s e researc .
Company-specific regulatory disclosuresThe following disclosures relate to relationships between The Goldman Sachs Group, Inc. (with its affiliates, "Goldman Sachs") and companies coveredby the Global Investment Research Division of Goldman Sachs and referred to in this research.
Compendium report: please see disclosures at http://www.gs.com/research/hedge.html. Disclosures applicable to the companies included in this compendium can befound in the latest relevant published research.
.
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Disc losure Appendix
Distribution of ratings/investment banking relationships
Goldman Sachs Investment Research lobal covera e universe
Rating Distribution Investment Banking Relationships
Global
Buy Hold Sell
32% 54% 14%
Buy Hold Sell
52% 41% 37%
, , , .
Sachs assigns stocks as Buys and Sells on various regional Investment Lists; stocks not so assigned are deemed Neutral.
Such assignments equate to Buy, Hold and Sell for the purposes of the above disclosure required by NASD/NYSE rules. See
'Ratings, Coverage groups and view s and related definitions' below.
Price target and rating history chart(s)
Compendium report: please see disclosures at http://www.gs.com/research/hedge.html. Disclosures applicable to the companies included in this
compendium can be found in the latest relevant published research.
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