1.

Industry Profile
1.1 An overview & Importance of the insurance sector
Insurance is a risk transfer mechanism whereby the individual or the business enterprise
can shift some of the uncertainties of life on the shoulder of the other. All the people will
desire to live a cleaner, healthier, comfortable and easy life. To meet this requirement
different enterprises produce and provide goods and services. They make innovation and
inventions, which take great risk. Large responsibility falls on the shoulder of innovators
and inventors. A small error or lapse may cause numerous side effects and cause death or
disability. These types of risks highlight the importance of insurance. If there had not been
insurance at the back of all innovators the world would have never progressed. After
assuring this in security factor the enterprises started looking for new and more high-tech
machines, robots and gadgets, atomic technology, space travelling, computers, deep sea
exploration, development of Concords and Jumbos and medical technology. All these
developments could be possible with the support of insurance.
In peace the insurance provides protection to trade and industry, which ultimately
contributes towards human progress. Thus insurance is the most lending force contributing
towards economics, social and technological progress of man. Without insurance cover all
industrial, economic and social activity of the world will come to a grinding halt. We may
have our life, body or property insured. The insurance company makes good our losses as
we pay the insurance premium regularly. Insurance is clearly of great advantage and
importance. It plays following micro economics roles:

Firstly, insurance, like banking, promotes savings to individuals.

Secondly, insurance promotes investment. The insurance company can easily

invest its funds in industry, agriculture and commerce.

Thirdly, the insured person can get loans against the security of insurance policy

from insurance company or from banks.

Fourthly, insurance as we all know, protects against dangers to life and property. If
a person has got his life insured, his family will get enough money on his death. If

he had an insurance policy for a shop, he can get compensation for fire, theft etc.
To be aware of the importance of insurance in our economy one must know roles
performed by insurance in macro-economic development.

The role of Insurance for Economic Development:

1. Risk Transfer:
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One of insurance's key roles is safeguarding the financial health of small and mediumsized enterprises. Insurance cover is crucial for people to insure themselves against
inability to work, set aside money for retirement or protect themselves against the loss of
their assets. This is where insurance comes in as a key component in ensuring the healthy
development of small and medium-sized enterprises.

2. Information Role:
Insurance plays an additional role in the economy by providing information. The level of
insurance premiums provides an indication of existing risks and of how probable it is that a
loss will occur. This helps companies make a comparison of the risk/return profiles of projects,
thereby ensuring that the available resources are put to the best possible use. Insurance
companies also offer consultancy services, advising on how to improve safety standards and a
product's quality.

3.Capital Market Role:

As well as stabilizing the financials of individuals, companies and the state. In their role as
institutional investors, insurance companies contribute to the development of a wellfunctioning capital market thanks to the huge amount of assets they have to invest. Insurance
companies receive premiums and set them aside as provisions for the payment of future
claims. They proceed to invest them in the capital market, which gives them the status of
major investors. From a macro-economic point of view, the insurance market could help to
mobilize national savings and narrow the investment gap of emerging economies. Insurance
companies as important long-term institutional investors therefore function as financial
intermediaries contribute to bringing together savers and borrowers. Life insurance, in
particular, can make savings available although life insurers are themselves dependent on a
functioning capital market if they are to play their role in the area of risk transfer.

1.2 Factors influencing the growth of Insurance Sector

Insurance sector in India has played a vital role in development of Indian economy. In the
last decade, total premium grew at a CAGR of 25% and reached from----to a total of $67
billion in 2012. Indian Life insurance industry (which contributes 88% of total Life and
General insurance premium in India) has emerged as the 9th largest life insurance market
in the world. This growth in insurance sector is not the result of a single factor. A variety
of macroeconomic factors such as Population, GDP, Per Capita Income, Inflation and
Unemployment have put positive and negative impact on the growth in demand of life
2

insurance. A significant relationship has been observed between various modern terms of
insurance i.e. insurance penetration, insurance density and indicators of macroeconomics
It is observed that Population, GDP, Per Capita GDP, Inflation, and Unemployment are the
main factors affecting growth of insurance penetration, insurance density growth and
growth in total insurance premium in India. The results of correlation analysis reveal that
population growth GDP growth and per capita GDP growth exhibit a positive relationship
(pull factors) with insurance growth indicators while inflation and unemployment rate
exhibit a negative relationship (restrictive forces) with insurance growth indicators.
The insurance sector is very significant to every developing country like India. It develops
the saving habits which leads to generate long-term funds for investment and ultimately
improves infrastructural facilities. The life insurance business is ominously influenced by
the economic conditions of the economy of a country and major factors that influence it
are the rate of growth of GDP, the levels of per capita GDP, household savings, disposable
income, literacy and employment rate. It has been observed that economies in which GDP,
per capita income, financial knowledge have been steadily improving experience a higher
insurance penetration and density. Market competition exerts a very positive influence on
market expansion, life insurance penetration as well as insurance density. The recent
upsurge in the Indian economy and market reforms leading to the competition has created
tremendous opportunities for the growth of the life insurance industry. Hence there is a
close relationship and interdependence between macroeconomic variables and life
insurance. The growth of insurance sector in an economy can be assessed not only by
assessing the growth in aggregate amount of insurance premium but also by examining the
trend analysis of insurance penetration and insurance density in the economy for a long
period. Insurance penetration refers to premium as a percentage of GDP. It
explains the role of insurance in GDP of a Country. Insurance density refers to
insurance premium per capital

Insurance Density
3

Trend of Insurance density are similar to that of total life insurance premium. From 1990
to 2007, it also increased at a increasing rate. past 2010 it started turn down which may
perhaps be endorsed to the slowdown in the overall economy

Insurance Penetration
Insurance penetration, one of the most important indicators of role of insurance in GDP
also initially increases at a slow rate. Then 2000 onwards it increased at an extreme rate.
Subsequently from 2010 onwards it started falling.

1.3 ROLE OF INSURANCE IN ECONOMIC DEVELOPMENT

For economic development, investment are necessary, investments are made out of
savings. Life Insurance Company is a major instrument for the mobilization of savings of
people particularly from the middle and lower income groups. These savings are
channeled into investment for economic growth .The insurance act has strict provisions to
ensure that insurance funds are invested in safe avenues, like government bonds,
companies with record of profit and so on.
As on 31.3.2006, the total investment of L.I.C exceeded Rs 5, 20,000 crores of which
nearly Rs 300000 crores were directly in government (both state and centre) related
securities, nearly Rs 16000 crores in the state electricity Boards nearly Rs 22000 crores in
housing loans, Rs 19000 crores in the power generation (private) sector and Rs 10000
4

crores in water supply and sewage system. The L.I.C is not an exception .All good life
insurance companies have huge funds
accumulated through the payments of small amounts of premia of individuals. These funds
are invested in ways that contribute substantially for the economic development of the
countries in which they do business.
Apart from insurance business and trade benefits through insurance. Without insurance,
business and trade and commerce will find difficult to face the impact of major perils like
fire, earthquake, and floods etc. Financiers like banks would collapse if the factory
financed by it is reduced to ashes by a terrible fire. Financiers like, banks would collapse if
the factory financed by it, is reduced to ashes by a terrible fire. Insurers cover also the loss
to financiers, if their debtors default.
Insurance plays an important role in an economy and a strong pillar of financial market. A
well-developed insurance sector promotes economic growth by encouraging more
industrial activities through risk-taking. After liberalization and privatization, insurance
industry is able to achieve a double digit growth and the deepening of insurance markets
makes a positive contribution to economic growth. Growth in life insurance penetration is
strongly associated with rising incomes for the reason that demand for life insurance
products will be more at higher income. The contribution of life insurance is also very
imperative in rural development, poverty alleviation and welfare of the poor. Life
insurance industry has a significant role in socio-economic development of nation and
together with banking industry it contributes more than seven percent GDP of an economy
and the gross premium collected contributes to about 4 percent of the total GDP of the
country. Insurance and economic growth mutually influences each other. The present study
was undertaken with an objective to study the developments in life insurance sector and its
role in economic growth of India. A secondary data has been used from the period 2001
2002 to 20092010. There is no significant difference between growth of life insurance
sector and economic growth of India is the main hypothesis of the study. Data has been
analyzed by using various statistical tools like student's t-test and karl's pearson correlation
method and presented in the form of tables. There is a moderate positive relationship exist
between life insurance and economic growth of India, life insurance sector provides huge
employment, accelerate the rate of capital formation and boost industrial growth are some
of the main findings of the study. The present paper concludes that a sound financial sector
is the backbone of healthy economy and the insurance industry as a financial service is

considered as one of the important segments in an economy for its growth and
development.

1.4 Contribution of this Sector to National Economy & to GDP in India

The insurance industry promotes economic growth and structural development
through the following channels:
1. Providing broader insurance coverage directly to firms, improving their financial
soundness.
2. Fostering entrepreneurial attitudes, encouraging investment, innovation,
market dynamism and competition.
3. Offering social protection alongside the state, releasing pressure on public
sector finance.
4. Enhancing financial intermediation, creating liquidity and mobilizing savings.
As major institutional investors, insurers gather dispersed financial resources,
and channel them towards investment opportunities, facilitating companies
access to capital.
5. Promoting sensible risk management by households and firms, contributing to
sustainable and responsible development.
6. Fostering stable consumption throughout life.

Providing broader insurance coverage directly to firms, improving their

financial soundness
Insurance allows firms to expand and take on economic risks without the need
to set aside capital in liquid contingency funds.
The absence of adequate business insurance cover tends to be particularly harmful
for small firms. Limited capital and difficulty in accessing financial markets make
them vulnerable to adverse events.
Without insurance, large contingency funds would be needed to protect firms
against risk. For many small firms this would represent more capital than they
presently employ in total. Therefore, without insurance, the population of firms
would decrease rapidly.
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It is difficult to assess the exact extent of the positive effect of business insurance
on economic activity. Whereas comparison of insurance premiums to GDP
conveys information on the performance of the insurance industry, it overlooks
the wider contribution to the economy

Fostering

entrepreneurial

attitudes,

encouraging

investment,

innovation, market dynamism, and competition

Being innovative presupposes the willingness to take risks. Since (potential)
entrepreneurs, much like ordinary people, are characterized by risk aversion,
the willingness to take risks can be considered as a scarce resource (Since 1986,
1988). The more willingness to take risk is available, the more will be produced.
Even if the insurance industry cannot change the overall willingness of actors in an
economy to take risks (risk aversion does not change with insurance), it does play
a key role in freeing entrepreneurial spirit. Insurance decreases the risk supported
by entrepreneurs through mitigating and pooling procedures and allows them
to take additional risks. Well developed insurance markets contribute by helping
to optimize the allocation of the scarce resource of risk-taking by shifting it
from conservative to innovative and high-profit activities. Underinsured firms, in
contrast, usually do not exploit new business opportunities; they invest less in
innovation and their degree in participation in global markets is low.
The relationship between insurers and their business customers should be
considered at least as important as the relationship between banks and their
business customers

Offering social protection alongside the state, releasing pressure on

public sector finance
In all industrialized countries, the debate about the need to revise the social
protection offered by the state is increasing. The population structure is changing
fundamentally with a longer life expectancy, an increase in elderly people and
a falling birth-rate. At the same time people expect to receive a high level of
healthcare, pensions, unemployment allowance and other social benefits.
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This evolution raises general concern for the future if reform is not rapidly
introduced. A 2006 study prepared by the European Commission and the
Economic Policy Committee notes that without a change in policy, public finance
will be put under extreme pressure and the EU potential economic growth will be
almost cut in half by 2030. Moreover, this situation will push wages upwards and
reduce the propensity to consume or, in other words, it will depress demand and
erode competitiveness. In addition, a large part of the population does not seem
to be fully aware of the reduced prospects for social protection.
Significant reform of the current social security system is therefore needed in
most Members States. Private insurers are naturally willing to contribute in the
development of an additional pillar alongside the protection offered by the state.
For instance, insurance products such as Payment Protection Insurance play a
vital role in protecting households from the consequences of unemployment in
the event of an economic downturn

Enhancing financial intermediation, creating liquidity and mobilizing

savings
With more than 5,000bn invested in the economy, insurers figure prominently
in the ranks of institutional investors (graph 8 & 9). They therefore see benefit in
the development of a modern, competitive financial market that facilitates firms
access to capital and offers a wide range of investment opportunities.
In this respect, insurance companies look favourably upon the initiatives taken by
the European Commission to ensure shareholder rights in the EU and to maintain
high standards of corporate governance.

1.5 TRENDS OF GROWTH OF THIS SECTOR IN LAST 5 YEARS

Growth of Indian General Insurance Industry
After liberalization of the Indian insurance industry in the year 1999- 2000, the Indian
general insurance industry has witnessed rapid growth. The industry, in terms of gross
direct premium, has grown from INR 11,446 crore in FY02 to INR 57,964 crore in FY12,
which corresponds to a compounded annual growth rate (CAGR) of 17.6 percent.
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Insurance density, which is defined as the ratio of premium underwritten in a given year to
the total population, has increased from USD 2.4 in 2001 to USD 10 in 2011. The growth
in the general insurance industry has kept pace with the nominal GDP growth rate
resulting in general insurance penetration remaining stable in the range of 0.55% to 0.75%
over the last 10 years.

Changes in the regulatory environment substantially impacted the

industry dynamics
Apart from macro-economic, social, and demographic growth drivers, the evolving
regulatory landscape had a significant impact on the growth and profitability trends in the
industry. The most notable of them was the price detariffication in 2007 which
significantly impacted the premium rates and growth for commercial lines and health
insurance.

Though the overall insurance penetration has remained in a narrow

range, coverage of underlying risks has increased considerably
The insurance penetration statistics may not represent the true perspective on coverage of
the underlying risk due to changes in the premium rates across segments which were
significantly influenced by the regulations. In our estimates, the risk coverage has grown
at an annual growth rate of approximately 25 percent. For example, in the health insurance
segment, the number of persons covered has increased from approximately 80 lakhs in
9

FY04 to approximately 7.3 crore without taking into consideration the Rashtriya Swasthya
Bima Yojna (RSBY) which has additionally covered more than 16 crore people by FY12.
Even in commercial lines business, the premium growth over the years indicates
considerable increase in the underlying risk coverage, especially considering the impact of
price detariffication.

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Future growth and profitability trends in the General Insurance Industry

General insurance industry in India presents significant headroom for growth. While the
Indian general insurance industry has evolved significantly over the past decade or so, the
insurance penetration and insurance density levels are significantly lower than the
developed as well as comparable developing countries. The under-penetration is driven by
lack of overall financial awareness, lack of understanding of general insurance products,
low perceived benefits, and propensity to purchase insurance based on reactive drivers
such as insistence by financers, statutory requirements, etc.

Study of global benchmarks reveals a strong correlation between GDP per capita and
insurance penetration. The correlation suggests that the insurance penetration may increase
up to 1 percent to 1.2 percent by FY20 considering the likely increase in the GDP per
capital.

2 .COMPANY PROFILE

2.1 History of Met Life Insurance Company, Founders &

Current Board of

Directors

History of the company

MetLife, Inc. is the holding corporation for the Metropolitan Life Insurance Company,
or MetLife, for short, and its affiliates. MetLife is among the largest global providers of
insurance, annuities, and employee benefit programs, with 90 million customers in over 60
countries. The firm was founded on March 24, 1868.

11

On January 6, 1915, MetLife completed the mutualization process, changing from a stock
life insurance company owned by individuals to a mutual company operating without
external shareholders and for the benefit of policyholders. The company went public in
2000. Through its subsidiaries and affiliates, MetLife holds leading market positions in the
United States, Japan, Latin America, Asias Pacific region, Europe, and the Middle
East. MetLife is the largest life insurer in the United States and serves 90 of the largest
Fortune 500 companies. The companys principal offices are located at 1095 Avenue of the
Americas in Midtown Manhattan, New York City, though it retains some executive offices
and its boardroom in the MetLife Building, located at 200 Park Avenue, New York City,
which it sold in 2005.

Early years
The predecessor company to MetLife began in 1863 when a group of New York City
businessmen raised $100,000 to found the National Union Life and Limb Insurance
Company. The company insured Civil War sailors and soldiers against disabilities due to
wartime wounds, accidents, and sickness. On March 24, 1868, it became known as
Metropolitan Life Insurance Company and shifted its focus to the life insurance business.
A severe business depression that began in the early 1870s forced the company to contract,
until it reached its lowest point in the late 1870s. After observing the insurance industry in
Great Britain in 1879, MetLife President Joseph F. Knapp brought industrial or
workingmens insurance programs to the United States insurance issued in small
amounts on which premiums were collected weekly or monthly at the policyholders
home. By 1880, sales had exceeded a quarter million of such policies, resulting in nearly
$1 million in revenue from premiums. In 1909, MetLife had become the nations largest
life insurer in the U.S., as measured by life insurance in force (the total value of life
insurance policies issued).
In 1907, the Metropolitan Life Insurance Company tower was commissioned to serve as
MetLifes 23rd Street headquarters in Lower Manhattan. Completed two years later, the
building was the world's tallest until 1913 and remained the company's headquarters until
2005. For many years, an illustration of the building (with light emanating from the tip of
its spire and the slogan, "The Light That Never Fails") featured prominently in MetLifes
advertising. By 1930, MetLife insured every fifth man, woman, and child in the United
States and Canada. During the 1930s, it also began to diversify its portfolio by reducing
the percentage of individual mortgages in favor of public utility bonds, investments in
12

government securities, and loans for commercial real estate. The company financed the
construction of the Empire State Building in 1929 as well as provided capital to
build Rockefeller Center in 1931. During World War II, MetLife placed more than 51
percent of its total assets in war bonds, and was the largest single private contributor to
the Allied cause.

Postwar
During the postwar era, the company expanded its suburban presence, decentralized
operations, and refocused its career agency system to serve all market segments. It also
began to market group insurance products to employers and institutions. By 1979,
operations were segmented into four primary businesses: group insurance, personal
insurance, pensions, and investments. In 1981, MetLife purchased what became known as
the MetLife building for $400 million from a group that included Pan American World
Airways.

Current era
In 1998, the board of directors authorized demutualization. Eighteen months later in April
2000, MetLife held an IPO, resulting in the issuance of 202,000,000 shares at the price of
$14.25 per share. At the time of the IPO, MetLife, Inc. had nine million shareholders and
was the most widely held stock in North America. In 2001, MetLife was the first insurance
company to establish a financial holding company with a nationally chartered bank
through its purchase of Grand Bank, which was renamed MetLife Bank. The company
also invested $1 billion in the U.S. stock market during 2001, immediately after
the September 11th terrorist attacks.
MetLife acquired Travelers Life & Annuity and substantially all of Citigroups
international insurance businesses for $12 billion. At the time of the deal, which was
completed on July 1, 2005, the Travelers acquisition made MetLife the largest individual
life insurer in North America based on sales. Current MetLife chairman C. Robert (Rob)
Henrikson was appointed chairman of the board of directors, president and chief executive
officer of MetLife in 2006. In 2008, MetLife Bank, N.A., a division of MetLife Inc.,
purchased the residential mortgage business of Memphis-based First Horizon National
Corporation. The purchase included the home loan unit of First Tennessee Bank National
Association (outside Tennessee), with 230 offices in the US. The same year, MetLife also
purchased the reverse mortgage division of Florida-based Ever bank Financial Corp. Both
13

transactions were completed in order to expand the company's stake in the US housing
market. Later that year, MetLife split-off substantially all of its 52% stake in Reinsurance
Group of America, Inc. MetLife had received the majority stake in RGA as a result of its
2000 acquisition of GenAmerica. The split-off gave MetLife shareholders the option to
exchange MetLife shares for shares of RGA.
In 2010, MetLife completed its purchase of American Life Insurance Company (Alico),
from American International Group (AIG). The $16.2 billion acquisition of Alico
expanded the companys life insurance and employee benefits business into more than 60
countries compared to 17 countries before the acquisition. On March 21, 2011, MetLife
announced that Steven Kandarian, who had headed MetLife's investment department
would succeed Robert Henrickson as President and CEO as of May 1, 2011.

Board of Directors
Steven A. Kandarian
(Chairman, President & Chief Executive Officer MetLife, Inc.)
Steven A. Kandarian is chairman of the board, president and chief executive officer of
MetLife, Inc. (NYSE: MET), a leading provider of insurance, annuities and employee
benefit programs to 90 million customers worldwide. He became president and CEO on
May 1, 2011, and chairman of the board of directors on January 1, 2012. For 2013,
MetLife had $68.2 billion in revenue and ranked 40th on the FORTUNE 500.

Campbell, Kurt M.
Kurt M. Campbell, 55
(Founding Partner, Chairman and Chief Executive Officer, The Asia Group, LLC)
Professional Highlights:

Founding Partner, Chairman and Chief Executive Officer, The Asia Group (Feb.
2013 Present)

Assistant Secretary of State for East Asian and Pacific Affairs, United States
Department of State (Jun. 2009 Feb. 2013)

Gris, Cheryl W.
Cheryl W. Gris, 60
(Retired Executive Vice President)
14

Professional Highlights:

Northeast Utilities, a public utility holding company (1980 2007)

Executive Vice President (Dec. 2005 Jul. 2007)

Chief Executive Officer of principal operating subsidiaries (Sep. 2002

Jan. 2007)

Gutierrez, Carlos M.
Carlos M. Gutierrez, 59
(Vice Chairman, Albright Stonebridge Group)
Professional Highlights:

Vice Chairman, Albright Stonebridge Group, a global strategy firm (Apr. 2013
present)

Chairman, Republicans for Immigration Reform

Hubbard, R. Glenn
R. Glenn Hubbard, Ph.D., 54
(Dean and Russell L. Carson Professor of
Economics and Finance, Graduate School of Business, Columbia University)
Professional Highlights:

Columbia University

Dean, Graduate School of Business (2004 Present)

Russell L. Carson Professor of Economics and Finance, Graduate

School of Business (1994 Present)

Professor of Economics, Faculty of Arts and Sciences (1997 Present)

Keane, John M.
Gen. John M. Keane (Ret.), 69
(Retired General, United States Army;
Senior Partner, SCP Partners; President GSI, LLC)
Professional Highlights:

Senior Partner, SCP Partners, a venture capital firm (Mar. 2009 Present)
15

President, GSI, LLC, a consulting firm (Feb. 2004 Present)

Alfred F. Kelly, Jr.

(Chairman of the Board, President and Chief Executive Officer)
NY/NJ Super Bowl Host Company

Chairman of the Board, President and Chief Executive Officer, NY/NJ Super Bowl
Host Company (Apr. 2011 Present)

Head of Information Systems, White House (1985 1987), with oversight of the
information processing functions for several government agencies that comprise
the Executive Office of the President

William E. Kennard
(Former U.S. Ambassador to the European Union)
Professional Highlights:

United States Ambassador to the E.U. (Dec. 2009 Aug. 2013)

Managing Director, The Carlyle Group, an asset management firm (May 2001
Dec. 2009)

James M. Kilts,
(Partner, Centerview Partners Management, LLC)
Professional Highlights:

Partner, Centerview Partners Management, LLC, a private equity and financial

advisory firm (Oct. 2006 Present)

Vice Chairman, Board of Directors, The Procter & Gamble Company (Oct.
2005 Oct. 2006)

Catherine R. Kinney
(Retired President and Co-Chief Operating Officer)
New York Stock Exchange, Inc.
Professional Highlights:

Retired from NYSE Euronext in March 2009, after serving in Paris, France,
with responsibility for overseeing the global listing program, marketing and
branding (Jul. 2007 Mar. 2009)

President and Co-Chief Operating Officer, New York Stock Exchange, Inc.
(2002 2008)

16

Hugh B. Price
John L. Weinberg/Goldman Sachs Visiting Professor of Public and International
Affairs, Woodrow Wilson School, Princeton University
Professional Highlights:

John L. Weinberg/Goldman Sachs Visiting Professor of Public and

International Affairs, Woodrow Wilson School, Princeton University (Aug.
2008 Present)

Senior Fellow, The Brookings Institution, an independent research and policy

center (Feb. 2006 Present)

Kenton J. Sicchitano
Retired Global Managing Director,
PricewaterhouseCoopers LLP
Other Professional and Leadership Experience:

Other Public Company Directorships:

PerkinElmer, Inc.; Analog Devices, Inc.

Education:

B.A., Harvard College

M.B.A., Harvard Business School

Wang, Lulu C.
Lulu C. Wang, 68
Founder and Chief Executive Officer,
Tupelo Capital Management LLC
Professional Highlights:

Founder and Chief Executive Officer, Tupelo Capital Management LLC, an

investment management firm (1997 Present)

Director and Executive Vice President, Jennison Associates Capital

Corporation (1988 1997)

17

2.2 Vision, Mission, Core values, Quality policy, Corporate philosophy,

Corporate Objectives, etc
Vision
We are a world class financial services firm comprised of a team of dynamic leaders,
financial professionals and representatives focused on client advocacy and dedicated to
outstanding service to our clients.

Integrity - In all aspects of our professional and personal lives

Leadership - Locally recognized leader in financial products, services and solutions

Citizenship - Loyally serving our community, clients, families and associates

Respect - Maintaining open communication and valuing the opinions of others

Excellence - Commitment to the highest standards

Professionalism - Exhibiting the highest levels of ethics, accountability and

reliability in all our endeavors

Mission Statement
Our team of financial professionals is committed to providing personalized strategies and
solutions for our clients. We achieve lasting relationships by maintaining our
uncompromised devotion to our values, families and communities.

Core Values
Our vision is to be a premier life insurer in building financial freedom for the people in
Hong Kong. That means customers who vary in life stage, lifestyle and financial needs.
To achieve this challenging goal, we must stay true to the values that we believe should
govern all our relationships with each other, as well as our customers:

People Count

18

We acknowledge that people are our key resource. We want to be known for
empowering people to feel protected, guided and hopeful about their lives.
Integrity and Honesty

We conduct our business endeavors with truth, sincerity and fairness.

Innovation

We are continuously creating and introducing new and original ideas and ways of doing
things.
Financial Strength

We operate with an intense dedication to managing monetary resources for strong

business results.
Partnership

We work productively in teams toward a common purpose and we value the collective
power of diverse work groups.
Personal Responsibility

We encourage our associates to perform as leaders by acting and making decisions

independently to get results.
These values are more than ideals to which we aspire. They are the force that underlies
everything we do. And they reflect our rich tradition that has always emphasized
developing innovative solutions for our customers, exercising sound business practices
and serving the communities in which we do business.

Corporate Philosophy
Today's clients are looking for security, knowing that they have enough money, and that
their needs are taken care of. Freedom to do what they want, when they want. As a
Financial Professional with over 20 years of knowledge and experience in the financial
service industry, clients who gain the most benefit from my areas of focus have the
following characteristics:

They want a trusting relationship with a financial professional.

19

They are financially motivated and serious about personal financial success.

They are active professionals, business owners, or retirees that are accustomed to
delegating their financial matters to competent, trustworthy professionals.

They are not influenced by the daily ups and downs reported by the financial
media.

They are sharing people, who like to help others and who are influential.

They enjoy the simplicity of having all of their assets in one place.

They understand that having a strategy is important, and sticking to that strategy is
what makes it work.

2.3 Size of the company operations

Geographical Spread in World & in India

Argentina
The MetLife companies have been offering life insurance solutions to Argentinean
consumers since 1994. Today, we also offer investment, disability and personal
accident products to individuals and companies through professional agents,

brokers, banks and direct marketing.

Brazil
The MetLife companies have been operating in Brazil since 1999. We are a
recognized leader in the local market, offering solutions such as life, dental,
accident and health as well as retirement plans for individuals and groups. We have
a diverse distribution platform including brokers, banks partners, direct marketing,
affinity and professional agents. With a presence in 23 locations, we have a
footprint in all major cities with 13,400 corporate clients, over 5 million customers

and R$ 115 billion underwritten policies.

Chile
Present in Chile since 2001, the MetLife companies offer group and individual life
and health insurance products, as well as retirement savings and mortgage
products. We are number one in life and annuity premiums as of September 2012,
and distribute products through an agency force, bank partners, direct marketing
and brokers.

Colombia
Present in Colombia for more than 50 years, MetLife offers a broad portfolio of

products for protection, savings and retirement. This includes individual, traditional
and variable insurance as well as employee benefits, credit life, personal accident,
20

pensions and annuities. MetLife has diverse distribution channels through professional
agents, brokers, sponsors and direct marketing. We have offices in 6 main cities of the
country, with more than 700 employees.
Dominica
The first MetLife Company in Latin America was established in Mexico in 1992,
offering life insurance and retirement savings products to groups and individuals in the
private market. With the acquisition of Aseguradora Hidalgo, S.A. in June of 2002,
MetLife became a market leader in life insurance for government institutions in
Mexico. With about 15% market share, we are presently the largest life insurer in
Mexico, covering nearly 7.5 million customers (insurance) and 1.1 million customers
(AFORE). We offer group and individual life insurance, medical expense insurance as
well as retirement savings and investment products.
St. Kitts, Nevis
Established in 1868, MetLife is the largest life insurer in the United States based on

life insurance in force. The MetLife companies offer life insurance, annuities, auto and
home insurance and other financial services to individuals. We also offer group
insurance and retirement and savings products and services to corporations and other
institutions.
Uruguay
Since 1998, the MetLife companies offer individual and group life insurance
products through career agents and brokers in Uruguay.

Asia Pacific

Australia
The MetLife companies provide life, credit, disability and accident and health
insurance solutions to groups and individuals through superannuation funds and

direct marketing channels in Australia.

Bangladesh
With close to 1.2 million customers, MetLife Alico in Bangladesh has been
operating since 1952. We started our full service branch operations in Bangladesh
in 1974 and have since been marketing a range of individual and group insurance
products. In 1997, MetLife Alico became the life insurance market leader, a title

the company holds through present day.

China
21

Sino-US United MetLife Insurance Company Limited (MetLife) was incorporated

as a joint venture company formed by a subsidiary of MetLife, Inc. and Shanghai
Alliance Investment Ltd (SAIL). MetLife is committed to provide trusted and
professional insurance solutions to consumers in China. We offer life and accident
insurance as well as savings products to individuals in over twenty cities all over

China through agents, bank partners and direct marketing channels.

Hong Kong
Metropolitan Life Insurance Company of Hong Kong Limited and MetLife
Limited are wholly-owned subsidiaries of MetLife, Inc. and are the insurers
authorized by the Office of the Commissioner of Insurance to carry on long term

business in Hong Kong.

India
MetLife India Insurance Company Limited (MetLife) has been operating in India
since 2001 and is an affiliate of MetLife, Inc. Headquartered in Bangalore and
Gurgaon, MetLife is one of the fastest growing life insurance companies in the
country. We offer a range of innovative products to individual and group customers
through bank partners, a broker network and an agency force of over 30,000
financial advisors. We also have an employee benefits business that serves over
800 top corporate companies.

Japan
MetLife Alico started operations in 1973 as the first foreign life player in Japan.
The company offers a broad range of products including life, accident and health
and asset formation products to individual and institutional customers through
diverse distribution channels such as career agents, independent agents, direct

marketing and banks.

Nepal
MetLife Alico started operations in 2002 and is the only foreign life insurance
company with a branch in Nepal. The company offers a broad range of innovative
life, accident and health, employee benefit and micro-credit insurance products to
individuals and institutional customers through a highly trained professional

agency force and bank partners.

Pakistan
MetLife Alico was established in 1952 and was one of the leading players in 1972
when the entire life insurance industry was nationalized to form a public sector
corporation called, State Life Insurance. The company re-entered the market in
1995 as the first foreign insurer that was granted a life license. Today we offer a
22

range of individual and group insurance products through agents, brokers, banks
and direct channels.

South Korea
MetLife in Korea was first established in 1989 as a joint venture, and MetLife
acquired 100% of ownership in 1998. Today we offer life, accident and health
insurance and retirement saving products to individuals and companies. We were
the first insurer to provide the variable universal life product in the Korea market
and continue to offer innovative solutions through a highly trained professional
agency force and bank partners.

Europe

Belgium
Bulgaria
Cyprus
Czech Republic
France
Greece
Hungary
Ireland
Italy
Latvia
Lithuania
Poland
Portugal
Romania
Russia
Serbia
Slovakia
Spain
Turkey Ukraine
United Kingdom

Middle East and Africa

Bahrain
MetLife Alico has been operating in Bahrain since 1961 and has been providing
the residents of the Kingdom of Bahrain with a range of individual and group

insurance products through agents, brokers, banks and direct channels.

Egypt
MetLife Alico was established in Egypt in 1997. We are the first life insurance

company to enter the Egyptian market with a major shareholding by an international

life insurance company.
Jordan and PNA
23

In 1958, MetLife Alico opened its first branch office in Amman and thereby
pioneered the issuance of life insurance products in Jordan. In 1996, MetLife Alico
expanded operations into PNA, becoming the only international insurer in both locations.
Today, we are positioned as one of the leading providers of individual and group life,
health, personal accident, and medical insurance products in both markets.

Kuwait

MetLife Alico has been operating in Kuwait since 1954 and has been providing its
residents with a range of individual and group insurance products through agents, brokers
and direct channels.

Lebanon

MetLife Alico has been the leading life insurer in Lebanon since 1953 with a range of
individual and group insurance products marketed through agents, brokers, banks and
direct channels.

Oman

MetLife Alico has been operating in Oman since 1971 and has been providing the
residents with a range of individual and group insurance products through agents, brokers,
banks and direct channels.

Qatar

MetLife Alico has been operating in State of Qatar since 1962, offering a range of
individual and group insurance products through agents, brokers, banks and direct
channels.

UAE
MetLife Alico arrived in the UAE in 1962 as the first company to be granted an

insurance license and has been providing the residents of the UAE with a range of
individual and group Insurance products through agents, brokers, banks and direct
channels.
Other MetLife subsidiaries and affiliates include MetLife Investors, MetLife Bank,
MetLife Securities, Metropolitan Property and Casualty Insurance Company and its
subsidiaries, General American, Hyatt Legal, MetLife Insurance Company of Connecticut,
24

MetLife Resources, New England Financial, Walnut Street Securities, Inc., Safeguard
Health Enterprises, Inc., and Tower Square Securities, Inc.

Major CSR Initiatives of the company

Corporate Social Responsibility is one of our core values. As such the MetLife Foundation
was created in 1976 to continue MetLife's longstanding tradition of corporate
contributions and community involvement. Since it was established, MetLife Foundation
has provided more than $530 million in grants.
MetLife is also a major sponsor of Red kite, which supports children and young people
with cancer and their families. MetLife has supported Red kite since 2007 and is the major
contributor of the Red kite Tutoring program.
The Red kite Tutoring program provides educational and special interest grants to children
and young people with cancer who have had to deal with long absences from school. The
program means that education can continue in challenging times.
The strength of the MetLife and Red kite partnership is built on consistent staff
engagement and volunteering opportunities, information presentations for MetLife staff
about the charity and year-round staff initiated fundraising activities. MetLife matches
funds raised by staff, doubling our donations.

Mental Health & Wellbeing

MetLife is proud to support Super Friend, a national mental health promotion foundation
that helps industry superannuation funds promote and support improved mental health and
wellbeing for their members, through the workplace.

Australia's Under-Insurance Issue

Australia is one of the most underinsured nations in the developed world.
More than three in four Australians will be diagnosed with a serious illness in their
working life. Lack of insurance and under-insurance means a significant proportion of
Australian families would face serious financial hardship if a family member had an
accident, became sick or passed away.
25

A 2008 survey by the Australian Institute of Superannuation Trustees (AIST) and Industry
Funds Forum (IFF) found that "one in two industry fund members were underinsured by
$100,000 or more".
MetLife is committed to addressing the under-insurance issue facing Australia by working
with our partners to bring compelling life insurance products and offers to their customers.
We work with our partners to provide life insurance education to help their customers
make the right decisions for themselves and their families.
MetLife is proud to be a supporter of Life wise, an initiative of the Australian life
insurance industry aimed at addressing the issue of underinsurance.

2.4 Organization Structure & Organogram

The company recently reshaped its organizational structure following the purchase of
Alico from AIG. Thanks to the transaction, Latin America became MetLife's third largest
business region outside the US and Japan. In 2011, MetLife created the Americas region.
MetLife is the largest life insurer in Mexico and also holds leading market positions in
Chile. It provides life insurance, accident and health insurance, credit insurance, annuities,
endowment and retirement, and savings products to both individuals and groups in
Argentina, Brazil, Chile, Colombia, Mexico, Panama and Uruguay. The company was
founded in 1868 and is headquartered in New York.

26

27

Different departments in the Company like Finance, HR, Production,

Marketing, IT, Quality Mgt.
In Finance it Works with individuals, families and business owners to analyze their current
financial situation through various financial products and advisory services. Develop
appropriate solutions to help people reach financial independence and attain financial
success using a comprehensive portfolio of top quality insurance and investment products.
Lead your clients through the process of identifying personal and financial goals, taking
stock of their existing situation, developing and implementing a plan, and monitoring and
reviewing it to assure that progress continues.
A dynamic & result-oriented professional with proven experience of over 16 years in the
field of Marketing across various industry verticals like Consumer Electronics, FMCG,
Optical industry, Fashion accessories, Lifestyle, Luxury, Gems & Jewellery, Real Estate
and Retail. Worked with Bausch & Lomb (both Lenses as well as Rayban), Philips India,
Metlife, Triumph International (Lingerie) & Fine Jewellery Group (Brand - Nirvana
Diamonds). Currently, working for a real estate division of a large conglomerate. Handled
diverse roles in the field of Corporate Brand Promotion & Marketing, Budgeting, Product
Promotions, Digital Marketing, PR, Media Planning, Market Research and
Communication as a planner, strategist and implementer. Proficient at leading fragmented
teams (located at different locations) for running successful operations with experience of
formulating and Implementing the advertising strategy/communication for Corporate
Branding and MARCOM.An effective communicator & team leader combined with
flexible & detail oriented attitude with the ability to interact effectively An out-of-the-box
thinker with a flair for charting out marketing strategies and contributing towards
enhancing business volumes & growth and achieving revenue and profitability norms.
Built and established Corporate Profile of the Company by creating synergy of
communication towards internal and external audiences. Launched a MNC in India Other
Skills & abilities include: Devising strategies for entering new & emerging channels.
Strong analytical skills coupled with excellent Man management approach. Relevant
consumer understanding, knowledge on market dynamics and an eye for spotting
consumer trends.

28

2.5 Growth trends of Company

MetLife has announced the sale of its U.K. based specialist bulk annuity pension provider,
MetLife Assurance, to Rothesay Life. The transaction is expected to close in the second
quarter of 2014 with Rothesay assuming $5 billion (3 billion) in assets under
management. MetLife is expected to record a loss of about $350 million to $390 million
on the transaction, but it should have no long term impact on the companys earnings.
MetLife has operations in 31 countries across the Europe, Middle East and Africa region,
including Poland, the U.K., France, Italy and the United Arab Emirates. The company
earns less than 5% of its revenues from these operations. During the last quarter of 2013,
MetLife reported a 51% increase in operating income from the region, helped by the
strengthening of the Euro against the U.S. dollar.
Having been designated as a non-bank systemically important financial institution by the
Financial Stability Oversight Council, the company is looking to cut down on capital
intensive products, and this might be part of the reason for the sale of the U.K. subsidiary.
We expect MetLifes Asia Pacific operations to drive future earnings. Our $49 price
estimate for MetLifes stock is about in line with the current market price.
More than half of MetLifes operating income comes from the U.S., where it is the largest
life insurance company, with a market share of over 10%. MetLife was also once the
highest seller of equity linked variable annuity products but has been cutting down on
sales for the last two years. For the September quarter, the company reported a 49% yearon-year decline in sales of variable annuities. As a result of its strategy, MetLife is now the
sixth largest seller of variable annuities, behind AIG, which has been capitalizing on
MetLifes exit with a sales push of its own. This move will limit MetLifes exposure to the
volatile equity markets. Currently, only 1% of its invested assets are invested in equity
securities while 72% are in fixed maturity securities like bonds.
We calculate the annualized spread earned by MetLife on the average account balance by
subtracting the interest credited to policyholder account balances from the net investment
income. According to our analysis, MetLifes annualized spread in the U.S. is around
4.15%. We expect a moderate long term increase in the annualized spread as bond yields
increase.
29

3. Metlife products and services

3.1 Metlife Major products and Services
Insurance products accounted for 53% of MetLifes 2009 $49 billion of revenue.MetLife
is the largest life insurer in the United States and Mexico and is the second-largest
foreign provider of insurance in Japan and worldwide its customers total 90 million
individuals.

Life insurance
MetLifes individual life insurance products and services comprise term life insurance and
several types of permanent life insurance, including whole life, universal life and
variable universal life. The company also offers group life insurance, provided through
employers, which consists of term life, group variable universal life and group
universal life. MetLife is the largest life insurer in the United States, based on life
insurance in-force.

Dental
MetLife offers group dental benefit plans for individuals, employees, retirees and their
families and provides dental plan administration for over 20 million people. Plans
include MetLifes Preferred Dentist Program (PPO) and the Safeguard DHMO
(available for both individuals and employees in CA, FL, and TX). As of May 2010,
MetLifes dental PPO network included over 135,000 participating dentist locations
nationwide while the dental HMO network included more than 13,000 participating
dentist locations in California, Floridaaand Texas. MetLife also administers dental
continuing education program for dentists and allied health care professionals, which
are recognized by the American Dental Association (ADA) and the Academy of
General Dentistry.(AGD).

Disability
MetLife provides disability products for individuals as well as employee and association
groups who receive them through their employer. For individuals, the companys
30

individual disability income insurance can replace a portion of lost income if an

individual is unable to work due to sickness or injury. For groups, MetLife offers short
term disability insurance and long term disability insurance. Short term disability
insurance is structured to replace a portion of an individuals income during the initial
weeks of a disabling illness or accident. Long term disability Insurance serves to
replace a portion of an individuals income during an extended period of a disabling
illness or accident. The company also maintains an absence management product
which allows employers to track and manage both planned and unplanned employee
absences. The product, which MetLife calls MetLife Total Absence Management, is
structured for businesses with 1,000 or more employees.

Annuities
MetLife is among the largest providers of annuities in the world, recording $22.4 billion in
sales during 2009. MetLife offers annuities which consist of fixed annuities, variable
annuities, deferred annuities and immediate annuities. In 1921, MetLife was the first
company to issue a group annuity contract. More recently in 2004, it was the first
insurer to introduce a longevity insurance product. As of December 31, 2009, MetLife
globally managed group annuity assets of $60 billion with $34 billion of transferred
pension liabilities and provided benefit payments to over 600,000 annuitants per
month.

Auto & Home

MetLife Auto & Home is the brand name for MetLifes nine affiliate personal lines
insurance companies. Collectively these companies offer personal lines property and
casualty insurance policies in all 50 states and the District of Columbia. The flagship
company in the MetLife Auto & Home group, Metropolitan Property and Casualty
Insurance Company, was founded in 1972. MetLife Auto & Home companies
presently have over 2.7 million active policies and service 58 of the Fortune 100
companies.
According to its website, MetLife Auto & Home offers auto policies and home insurance,
whether the policy owner lives in a house, condo, mobile home, or apartment. The
companies also sell RV, ATV, boat, mobile home, collectible vehicle, and motorcycle
31

policies and offers flood insurance policies as a participant in the National Flood
Insurance Program (NFIP), which is managed by the federal government. Through an
arrangement with Hyatt Legal Plans, a subsidiary of MetLife, MetLife Auto & Home
underwrites group legal plans in many states.
It was the first national insurer in the U.S. to offer identity-theft resolution services at no
extra premium and as of 2012 continues to do so today in most U.S. states. In 2010,
MetLife Auto & Home began offering their GrandProtect plan in most states. This
GrandProtect policy simplifies complex insurance needs by combining a client's home,
valuable items, autos, RVs, and boats into one comprehensive policy package. The
ultimate benefits to the consumer are having one bill, only one deductible,
comprehensive coverage, and typically lower rates than trying to get each policy
individually.

Other products
MetLifes products also include critical illness insurance. Financial services include feebased financial planning, retirement planning, wealth management, 529 Plans,
banking, and commercial and residential mortgages.The company also provides
retirement plan and other financial services to healthcare, education, and not-for-profit
organizations. The MetLife Center for Special Needs Planning is a group of planners

3.2 Distribution Channels

ALICO Bulgaria JZD EAD, a MetLife Inc. company serves its clients through a network
of professional insurance consultants, with group department

services for corporate

clients, alternative distribution and the financial institutions department, as well as

brokers Currently the company offers a complete range of insurance and financial
products covering individual as well as corporate clients, through structured but
flexible needs identification processes.
Life products provide the opportunity for long-term saving, combined with specialized
risk insurance coverage of the insured persons both children and adults.
Regarding corporate clients, special products on Group Life, Personal Accident and
Group Medical Plans are offered, accompanied by a complete administration and

32

performance monitoring system.Special products exclusively designed for bank clients

are being offered providing loan borrowers protection, among others.

Agency
Serving our individual and corporate clients with a well-developed network of competent
insurance consultants is our primary objective.More than 200 consultants, who have
passed through a special selection procedure and thorough specialized training, are
currently contacting potential customers and offering flexible solutions to best serve
their present and future needs for security and protection.The companys unique
consultancy service built upon world-proven standards of work makes our direct sales
force a serious and trustworthy human resource.As almost everyones needs for
security and guaranteed income we place great emphasis on this. We develop our client
base by professional means, through a system of obtaining introductions and
referrals.Last but not least, we distinguish ourselves through our long-term quality
service and responsibility towards our clients. Our insurance consultants do their best
to keep our clients satisfied and to sustain the companys image and customers
security in times to come.

Group Insurance
Group employee benefit plans have proved to be very effective and relatively inexpensive
personnel management tools compared to other alternatives.For this reason the
company has created a separate division called the Group Management Division,
which, for the past three years in Bulgaria and for many years worldwide, has
specialized in the development and distribution of employee benefits, products and
services to corporate business on a local and a multinational level.

Multi-Agency Relations
One of the channels that MetLife strongly supports is distribution through brokerage
companies.In Bulgaria the company works with many dynamic multi-agencies. Good
co-operation is based on trust and partnership. Joint product solutions, incentive
33

systems and employee and management training programs demonstrate the high value
the

company

places

in

its

relations

with

multi-agencies.

Existing experience in using innovative solutions and joint customer service proves
that

MetLife

is

seriously

involved

in

the

development

of

distribution

channels.Together we react to market opportunities and changing conditions.

We are ready to co-operate with new partners who are eager to accept our standards
and use our solutions. We have clear rules for co-operation and partnership, defining
the attractive compensation of co-operation.

Financial Institutions
Also the company has a range of insurance products to offer customers from financial
institutions in the form of group credit life and accident insurance.Our insurance
products are offered through insurance intermediaries as well as via advanced
communication channels, such as bank assurance and direct marketing.We join forces
with various financial institutions, offering a range of insurance plans; on one hand
covering borrowers raising money for a car, consumer and mortgage loans, credit card
holders, etc. and on the other, depositors in financial institutions. Specific life
insurance programs combined with savings elements are designed for different types
of bank portfolio segments.

3.3 Metlife additional products / services

A number of MetLife Group Life's products and services provide a "living benefit" to
employees today, and as their needs evolve.

Value Added Services for Participants

Portability: In addition to our portable Permanent Life products, we offer a

Portability option on Group Term Life and AD&D coverages, so employees can
take their coverage with them if they leave your company.

34

Accelerated Benefits Option (ABO): The Accelerated Benefits Option

permits terminally ill insureds to receive a portion of their life insurance in advance to
minimize the financial burden of medical and other expenses - up to 80% of the total
insured amount.

Waiver of Premium: Disabled employees may qualify to have their life

insurance premiums waived while they are unable to work.

Will Preparation: Supplemental Term coverage provides participants and their

spouse/domestic partner face-to-face access to will preparation services to prepare and
update a will, living will and power of attorney through a nationwide network of more
than 13,000 participating Hyatt Legal Plan attorney.

WillsCenter.com: All customers have access to WillsCenter.com, an online

document service to prepare and update a will, living will, power of attorney or
HIPAA authorization in a secure environment at no additional cost.4

Employee Assistance Programs (EAP): Employees and their immediate

families may receive confidential, professional counseling for behavioral, health and
life issues.

Grief Counseling: Offered as an option on Basic Term coverage at no

additional cost, Grief Counseling can help employees, their dependents, and their
beneficiaries cope with a loss. It helps to provide the support, comfort, tools and
services employees need to get back to a productive life - at work and home.

Transition Solutions: Focuses on offering insurance and other financial

products and services to help employees and their families better prepare for their
future. Event-based financial solutions include employee transitions, corporate
transitions, financial education and executive and beneficiary assistance.

MetLife Center for Special Needs Planning: A program that provides a

variety of planning services to families with dependents with special needs. The
Center provides a complimentary service which is committed to helping families

35

through the maze of legal and financial complexities surrounding planning for the
future of dependents with special needs.

Travel Assistance: Travel Assistance offers employees and their families access
to emergency services while traveling domestically or internationally. Services
Include:
- Toll-free 800 #, where service providers are available
24 hours a day, 365 days a year.
- Emergency services, including medical assistance, hospital
admission coordination and critical evacuation
- Non-emergency services, such as help with visa and/or
passport requirements, financial assistance and
locating lost luggage

Identity Theft Solutions: Identity Theft Solutions educates employees on

preventing an identity theft occurrence. In addition, it provides personal assistance and
guidance to help alleviate the stress and time burden that victims often face.
Employees are provided with:
- Education, including the Identity Theft Risk & Prevention tool
kit and resolution guide
- Personal Guidance, including advice for filing and obtaining
police and credit reports, contacting creditor fraud
departments and taking inventory of lost or stolen items
Toll-free 800 #, where service providers are available
24 hours a day, 365 days a year.

Concierge Services: Travel Assistance includes concierge assistance designed

to fulfill various travel and entertainment requests as well as arrangements for business
related services. Concierge services for upcoming and current travel include:
- Restaurant, shopping, hotel and airline
recommendations/reservations
- Destination transport (rental car/limousine, etc.) information
and reservations
- Destination Information
36

- Sporting, theater, night life and event information,

recommendations and information
- Golf course information, referrals, recommendations and
tee times
- City calendar and event schedules
- Private drivers and guides
- Driving directions
Before you travel, you can obtain information about your visa, passport, inoculation
requirements and local customs. You can also obtain 24-hour pre-departure
information on weather, currency or holidays through the toll free number or by
visiting the AXA website.

Value Added Services for Beneficiaries

We provide not only the claims service that beneficiaries need and expect in their time
of need, but we have also created programs to support them in making important
financial and personal decisions.

Estate Resolution Services (ERS)

It Offered as an option on Supplemental Term coverages, beneficiaries and estate
representatives of an employee's estate have access to valuable legal assistance through
face-to-face consultations with a Hyatt plan attorney to discuss matters related to settling
the insured's will and estate. Services include preparation of documents for court
proceedings and completion of correspondence necessary to transfer non probate assets.
Beneficiaries who are not executors may receive a consultation about the probate process.

The Total Control Account (TCA): A life settlement option that helps
beneficiaries manage life insurance proceeds and provides easy access to their funds.

Delivering the Promise: Professional and caring services for beneficiaries

who have financial questions and personal needs for assistance and information.

3.4 Metlife business stake holders

37

Since their arrival in the Raleigh area, MetLife Global Technology & Operations has made
an effort to get to know its neighbors. In addition to participating in community service
initiatives, MetLife GTO representatives have met with local business leaders,
universities, and regional associations in order to build relationships and make connections
for future opportunities.
Everyone has been extremely helpful by introducing us to their network and including us
in events," says Geoff Lang, Vice President and General Manager of the Global
Technology & Operations facility in the Research Triangle area. "When we first arrived,
we met with several site managers for major corporations who shared their experience and
helped us understand the environment while getting to know key players."
These relationships have yielded several invitations to events and opportunities to
showcase what MetLife GTO is up to. Recently, North Carolina State University hosted
President Obama who spoke about how research innovation can be commercialized to
benefit society. While there, President Obama announced a public-private initiative
between businesses, universities, and the government focused on manufacturing
innovation for next generation power electronics. speech on economic development at a
National Association of Chief Executive Officers event in early January.
"Being able to attend the event with the President and North Carolina State University was
an honor," says Geoff Lang. "It shows the impact we've made in nurturing relationships;
we want to really immerse ourselves in the culture here and contribute to the progress and
growth of the local economy. We want people to know that we're invested in what goes on
in the area, not just what pertains to MetLife."
As part of ongoing recruitment efforts with top universities, MetLife GTO representatives
have participated in a range of panel discussions, career fairs, and other technologyfocused activities. In 2013, Geoff Lang was asked to participate in Duke University's
TechConnect panel and shared insight on GTO's Research Triangle hub and employment
opportunities. GTO representatives will also connect with local university students at the
upcoming NC State College of Engineering Career Fair on February 5th.
As we build our workforce here, we plan to deepen our relationships with universities in
the area to source the best young talent and to provide world-class internship and entrylevel employment opportunities," says Geoff Lang. "We're here for the long-term and look
forward to growing and deepening our ties with all this community has to offer.

38

Punjab National Bank (PNB) and US-based MetLife today signed a deal wherein the staterun lender picked up 30% stake in the insurance company for an undisclosed amount. The
new company has been branded PNB Metlife India Insurance Company Ltd.
Metlife will continue to hold 26% stake in the company. Other stakeholders in the
company include J&K Bank (5%), Elpro International (21%) and M Pallonji & Co (18%).
Partnering with MetLife will give us access to global products and the risk management
expertise of MetLife, said KR Kamath, Chairman & Managing Director, PNB. He said
the acquisition would make PNB Metlife ninth largest insurance company in India in
terms of new business premium.
Kamath refused to disclose the amount paid by PNB for acquiring 30% ownership interest
in the company saying other shareholders wanted to keep the information confidential. He
said, if required, the bank would infuse more capital into the company.
PNB will bring to MetLife its 5,900 branches and over 78 million customers across the
nation. MetLife, with 90 million customers worldwide, has been operating in India since
2001.
Christopher Townsend, President, Asia, MetLife, said; As a dynamic emerging market,
India is a key strategic focus for MetLife, and we are proud to be partnering with PNB.
In October last year the Insurance Regulatory and Development Authority (Irda) had
approved transfer of shares from existing shareholders of MetLife Insurance to PNB on
the condition that shares held by the bank would be locked in for five years from the date
of transfer.
Earlier the regulator had expressed concerns that the deal was not consistent with Indian
Accounting Standards as PNB had reportedly planned to buy the stake for Re 1 only.
MetLife India has been re-branded as PNB MetLife India Insurance after Punjab National
Bank (PNB) acquired 30% stake in the life insurance company.

39

With the change in shareholding pattern, Jammu and Kashmir Bank will hold 5%,
Shapoorji Pallonji 17.15%, Elpro group 21.46%, while MetLife would continue to hold
26% stake in the life insurance joint venture.
Apart from PNB, MetLife India has two other banks, Karnataka Bank and Jammu and
Kashmir Bank as their distribution partners.
At present, around 60% business of the company is coming from bank channels and
company is expecting to grow it further over the next few years.
MetLife India had started its operations in India in 2001. The company had collected new
business premium of Rs 551.57 crores during April-December 2012 as against Rs 643.77
crores in corresponding period last year, a decline of 14.32%.
Fair trade regulator, Competition Commission of India (CCI) has approved 30 % stake
purchase by state-owned Punjab National Bank (PNB) in MetLife India Insurance
Company.
The CCI said that the deal would not have any adverse impact on the competition
scenario. In its order on December 26, the CCI noted that operations of PNB and MetLife
India are not similar or identical. It also said that although PNB provides services to
MetLife India as a distribution agent, the share of MetLife India in the life insurance is
relatively insignificant and is not likely to raise any adverse effect on competition in India.
Both PNB and MetLife India had approached CCI for its approval on 7 December 2012.
In 2011, PNB had announced picking up of 30% stake or about 60.38 crores shares in
MetLife India for an undisclosed amount.
Besides, PNB and MetLife India had reached an agreement following which PNB is acting
as an agent of MetLife India for the distribution of its insurance products.
MetLife India is a joint venture between MetLife international (an affiliate of U.S.A.
based MetLife Inc) and group of Indian investors.
Punjab National Bank (PNB) has restructured the agreement to buy 30% stake in MetLife
India to adhere to the recommendations of the insurance regulator.
40

According to the new proposal, the existing partners except MetLife International will sell
stake to MetLife, which will be offered to PNB. That will ensure that equity capital base of
the MetLife is not increased so that the efficiency ratios are kept unchanged.
According to the deal, over 5,600 branches of PNB will sell insurance products of MetLife
and for which bank will earn fee. After PNBs stake acquisition, the new company will be
called PNB MetLife India ltd.
The previous proposal envisaged stake dilution by existing partners by issuing fresh shares
and PNB buying stake from the expanded equity base. In former proposal PNB had
proposed to buy 30% stake in MetLife for Rs 1.
Former proposal was approved by the Reserve Bank of India (RBI) but hit a roadblock
with Insurance Regulatory and Development Authority (IRDA) over the valuation. IRDA
was not comfortable with the original structure, as per IRDA structure was not in
accordance with Indian Accounting Standards. As per Indian Accounting Standards,
companies just cannot sell any part of the stake for free.
MetLife is a joint venture between Jammu & Kashmir Bank holding 11.32% stake, M
Pollanji group holding 25% stake, U.S.A. based MetLife International holding 26% stake
and other private investors holding remaining 37.68% stake. In FY12 companys new
business premium stood at Rs 1,074 crore which is the rise of 52% over last year.
Proposed deal of Punjab National Bank (PNB) buying 30% stake in MetLife India for Rs.
1 has run into a regulatory hurdle. Though Reserve Bank of India (RBI) has given its nod
to PNB for the deal but Insurance Regulatory and Development Authority (IRDA) is
looking into the contours of the deal as it is not comfortable with the valuations.
As it did not have any implication on banks capital hence, RBI gave its nod to the deal.
As per IRDA as a regulator it will have issues with any deal which is not consistent with
Indian accounting standards. And as per standards companies can not just sale any part of
stake for free.
In reply of which PNB has said that it has determined the value by taking in account its
over 5,000 branches spread across the country and future business that MetLife will bring
41

in. As per the deal branches of PNB will be used to sale the insurance products of MetLife
for which bank will earn a fee. New Company was proposed to be named as PNB MetLife
India Ltd.
Since 2008-09 MetLifes first-year premium collections dropped by 38% from Rs
1,144.70 crore to Rs 706.22 crore. However, MetLifes has performed well in current
fiscal as it has posted a growth of 35.61% in new premium collection which stood at Rs
643.77 crore against Rs 474.72 crore. In terms of first-year premium collection MetLife
stood at 15th position among 23 life insurers at the end of 31 March 2011.
IRDAs biggest concern is that banks are entering the insurance sector without pumping in
any capital so insurance sector as whole will not benefit from it. Whenever a company
dilutes a stake then there should be capital infusion but recent transactions indicates that
insurance companies dilutes there stake in addition to advance commission to the banks
for tying-up with a bank as a bancassurance hence, it does not bring any equity.
This deal already has started showing its impact on future deals as Syndicate bank with
over 2,500 branches across the country is asking for a premium of Rs 350 crore to pick up
minority stake in Birla Sun Life. And IndusInd bank is also asking for premium to pick up
minority stake in Aviva Life.

3.5 Metlife services during last 5 years

Insurance products accounted for 53% of MetLifes 2009 $49 billion of revenue. MetLife
is the largest life insurer in the United States and Mexico and is the second-largest foreign
provider of insurance in Japan and worldwide its customers total 90 million individuals.

Life insurance
MetLifes individual life insurance products and services comprise term life insurance and
several types of permanent life insurance, including whole life, universal life and variable
universal life. The company also offers group life insurance, provided through employers,
which consists of term life, group variable universal life and group universal life. MetLife
is the largest life insurer in the United States, based on life insurance in-force.

42

Dental
MetLife offers group dental benefit plans for individuals, employees, retirees and their
families and provides dental plan administration for over 20 million people. Plans include
MetLifes Preferred Dentist Program (PPO) and the Safe Guard DHMO (available for both
individuals and employees in CA, FL, and TX). As of May 2010, MetLifes dental PPO
network included over 135,000 participating dentist locations nationwide while the dental
HMO network included more than 13,000 participating dentist locations in California,
Floridaan and Texas. MetLife also administers dental continuing education program for
dentists and allied health care professionals, which are recognized by the American Dental
Association (ADA) and the Academy of General Dentistry (AGD).

Disability
MetLife provides disability products for individuals as well as employee and association
groups who receive them through their employer. For individuals, the companys
individual disability income insurance can replace a portion of lost income if an individual
is unable to work due to sickness or injury. For groups, MetLife offers short term disability
insurance and long term disability insurance. Short term disability insurance is structured
to replace a portion of an individuals income during the initial weeks of a disabling illness
or accident. Long term disability Insurance serves to replace a portion of an individuals
income during an extended period of a disabling illness or accident. The company also
maintains an absence management product which allows employers to track and manage
both planned and unplanned employee absences. The product, which MetLife calls
MetLife Total Absence Management, is structured for businesses with 1,000 or more
employees.

Annuities
MetLife is among the largest providers of annuities in the world, recording $22.4 billion
in sales during 2009. MetLife offers annuities which consist of fixed annuities, variable
annuities, deferred annuities and immediate annuities. In 1921, MetLife was the first
company to issue a group annuity contract. More recently in 2004, it was the first insurer
to introduce a longevity insurance product. As of December 31, 2009, MetLife globally

43

managed group annuity assets of $60 billion with $34 billion of transferred pension
liabilities and provided benefit payments to over 600,000 annuitants per month.

Auto & Home

MetLife Auto & Home is the brand name for MetLifes nine affiliate personal lines
insurance companies. Collectively these companies offer personal lines property and
casualty insurance policies in all 50 states and the District of Columbia. The flagship
company in the MetLife Auto & Home group, Metropolitan Property and Casualty
Insurance Company, was founded in 1972. MetLife Auto & Home companies presently
have over 2.7 million active policies and service 58 of the Fortune 100 companies.
According to its website, MetLife Auto & Home offers auto policies and home insurance,
whether the policy owner lives in a house, condo, mobile home, or apartment. The
companies also sell RV, ATV, boat, mobile home, collectible vehicle, and motorcycle
policies and offers flood insurance policies as a participant in the National Flood Insurance
Program (NFIP), which is managed by the federal government.Through an arrangement
with Hyatt Legal Plans, a subsidiary of MetLife, MetLife Auto & Home underwrites group
legal plans in many states.
It was the first national insurer in the U.S. to offer identity-theft resolution services at no
extra premium and as of 2012 continues to do so today in most U.S. states. In 2010,
MetLife Auto & Home began offering their GrandProtect plan in most states. This
GrandProtect policy simplifies complex insurance needs by combining a client's home,
valuable items, autos, RVs, and boats into one comprehensive policy package. The
ultimate benefits to the consumer are having one bill, only one deductible, comprehensive
coverage, and typically lower rates than trying to get each policy individually.

44

4. Metlife insurance Company Analysis

4.1 SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)
Financial strength:
MetLife Assurances ability to offer financial security is one of our greatest strengths, and
maintaining that strength is among our highest priorities. We recognise that insurance
guarantees are backed by the financial strength and sustainability of the provider our
organisation is well capitalised.
This stability, coupled with our custom solutions approach, allows us to help clients meet
their pension risk transfer needs and financial goals. Our financial strength safeguards the
benefits secured for our policyholders, and enables them and their dependents to count on
us for their lifetimes.
As a subsidiary of MetLife, Inc., the largest life insurer in the United States1, MetLife
Assurance is an extension of over 140 years of strength, stability and commitment by the
MetLife Group to its clients.

Weakness:
Small
Business

45

 Units
Productivity
tax structure
Threats:

increasing costs

government regulations

rising cost of raw materials

financial capacity

increasing rates of interest

growing competition and lower profitability

price changes

Opportunities

new acquisitions

global markets

new markets

venture capital

income level is at a constant increase

growing demand

4.2 COMPETITIOR ANALYSIS

46

American International Group,

American International Group Inc

Prudential Financial, Inc.

Allianz se
American International Group Inc
Even to this day American International Group (AIG) is one of the world's largest
insurance firms. While it held the spotlight for staggering losses and government bailouts,
the company's subsidiaries have steadily provided general property/casualty insurance, life
insurance and retirement services, financial services, and residential mortgage guaranty
insurance to commercial, institutional, and individual customers in the US and more than
130 countries around the world. In exchange for $161.3 billion in bailouts, at one point
the US government held more than 90% of AIG. An exit plan of repayments and stock
sales gradually shrunk that number, with the US Treasury announcing the final sale of AIG
shares in late 2012.

Prudential Financial, Inc.

Prudential Financial wants to make sure its position near the top of the life insurance
summit is set in stone. Prudential, known for its Rock of Gibraltar logo, is one of
the top US life insurers and also one of the largest life insurance companies worldwide.

Allianz se
One of the world's biggest insurers, Allianz SE offers a range of insurance products and
services -- including life, health, and property/casualty coverage for individuals and
businesses -- through more than 1,000 subsidiaries, ventures, and affiliates operating all
over the globe (though its key markets are France, Germany, Italy, and the US). The
company serves some 78 million customers. In addition to selling insurance, Allianz
provides retail and institutional asset management services through Allianz Global
Investors, private equity investment through Allianz Capital Partners, and banking services
through Allianz Bank.
47

Few strategies to overcome competition

MetLife, through its participation with MAXIS, a global employee benefits network of
insurers in over 75 countries, is well positioned to examine trends and challenges in
managing global benefits. Through qualitative and quantitative research, this paper
examines the key global benefits challenges facing
multinational employers and provides recommendations and action plans to help meet
their benefits needs. Challenges include:
1. Developing a global benefits strategy while providing benefits that meet the varied
needs of multinational employees.
2. Creating a competitive benefits program to help attract and retain talent.
3. Finding cost-effective ways to attain and administer multinational benefits
4. Building recognition for the value that global benefits management brings to a
company.

The unique selling proposition (USP)

unique selling product or unique selling price is a marketing concept first proposed as a
theory to explain a pattern in successful advertising campaigns of the early 1940s. The
USP states that such campaigns made unique propositions to the customer that convinced
them to switch brands. The term was developed by television advertising pioneer Rosser
Reeves of Ted Bates & Company. Theodore Levitt, a professor at Harvard Business
School, suggested that, "Differentiation is one of the most important strategic and tactical
activities in which companies must constantly engage.The term has been used to describe
one's "personal brand" in the marketplace. Today, the term is used in other fields or just
casually to refer to any aspect of an object that differentiates it from similar objects.

Advertising and marketing strategies for achieving success in business by

managing competition
A by-product of the emergence of social media in recent years is the explicit commitment
of companies to become a more customer-centric. These companies, on average,

48

outperform their peers with more than double the rate of revenue growth and 15% lower
expenses.
MetLife has set up a centralized team to develop this capability with the goal of driving
customer-centric practices throughout the company and to create desirable customer
experiences that improve financial outcomes.

4.3 Company and factors responsible for metlife

Nra Insurance Royalties

Cigna

Affinity insurance Marketing

Socially responsible investing

5 . Details of Career Opportunities for Fresh MBAs in the Company

Job description (JD) Duties & responsibilities

Specific responsibilities will vary by location but may include support of:

Commercial mortgage risk analysis and rating

Equity and commercial mortgage portfolio risk analysis and surveillance reporting

Tracking Mortgage and Equity transaction pipelines

Assisting with marketing strategy, including prospecting and implementation

Real estate valuation and underwriting of new commercial mortgage transactions

Equity property valuation, lease analysis and capital budget planning /

implementation

49

Collection, compilation and reporting of real estate market, economic and

demographic information

Credit analysis of existing or prospective tenants and/or borrowing entities

Reviewing and identifying risks within property condition reports

Special projects, ad hoc requests and miscellaneous administrative duties as needed

Portfolio (mortgage and equity) surveillance and asset management activities

Lease review and abstracts

ARGUS modeling

Investment valuation

Property inspections

Capital and operating budget preparation

Investment committee presentations

Job specification (JS) Entry criteria

The MetLife Real Estate Investors summer internship will provide an excellent
introduction to the various aspects of institutional real estate investment. The internship
will provide an introductory exposure to career options in commercial real estate lending,
equity investing and investment management. The internship will enhance personal
credentials and establish relationships with industry professionals.

Skills & competencies (Essential & Desirable)

Candidates must be enrolled in and actively pursuing a graduate degree in the

finance, economics or real estate fields

Prior finance or real estate related work experience is strongly preferred

Working knowledge of traditional methods for valuing commercial real estate

projects, including direct capitalization and discounted cash flow analysis, is
required

Excellent written and verbal communication skills

Strong analytical and organizational skills to manage several projects concurrently

Excellent PC skills with Microsoft Word, Excel and Powerpoint experience

required
50

ARGUS and advanced Excel skills are strongly preferred

Ability to problem solve, prioritize and work well in a small team environment

Salary structure

Salaries in USD

Financial Services Representative

53 MetLife Salaries in US
Information Systems Consultant
52 MetLife Salaries in US
Systems Analyst
48 MetLife Salaries in US
Director
35 MetLife Salaries in US
Actuary
23 MetLife Salaries in US
Financial Advisor
22 MetLife Salaries in US
Underwriter
22 MetLife Salaries in US
Manager
20 MetLife Salaries in US
Senior Actuarial Associate
20 MetLife Salaries in US
Senior Financial Analyst
19 MetLife Salaries in US
Financial Analyst
17 MetLife Salaries in US
Business Consultant
14 MetLife Salaries in US
IT Manager
13 MetLife Salaries in US

Avg. Salary

$22,235

$94,328

$79,176

$118,747

$114,556

$32,545

$47,733

$86,858

$96,916

$68,211

$55,116

$59,971

$115,269

$0
$70k
$77k
$121k

$55k
$103k

$88k
$150k

$75k
$138k

$0
$65k

$38k
$67k

$55k
$115k

$86k
$114k

$52k
$86k

$38k
$74k

$42k
$80k

$90k
$150k

51

Internal Wholesaler
13 MetLife Salaries in US
Customer Service Representative
12 MetLife Salaries in US

$42,462

$30,383

$40k
$48k

$24k
$36k

6. Summary
MetLife, Inc., through its subsidiaries, provides insurance, annuities, and employee benefit
programs in the United States, Japan, Latin America, the Middle East, Asia, and Europe. It
operates in six segments: Retail; Group, Voluntary & Worksite Benefits; Corporate Benefit
Funding; Latin America; Asia; and Europe, the Middle East and Africa. The company
offers variable, universal, term, and whole life products; individual disability income
products; personal lines property and casualty insurance, such as private passenger
automobile, homeowners, and personal excess liability insurance; and variable and fixed
annuities for asset accumulation and distribution needs, as well as mutual funds and other
securities products. It also provides group insurance products comprising variable,
universal, and term life products; dental, group short- and long-term disability, and
accidental death and dismemberment coverages; and voluntary and worksite products
consisting of personal lines property and casualty insurance, as well as LTC, prepaid legal
plans, and critical illness products. In addition, the company provides annuity and
investment products, such as guaranteed interest products and other stable value products,
income annuities, and separate account contracts for the investment management of
52

defined benefit and defined contribution plan assets. Further, it offers products to fund
postretirement benefits and company-, bank- or trust-owned life insurance, as well as
health insurance, group medical, credit insurance, endowment, retirement, and savings
products. The company serves individuals and corporations, as well as other institutions
and their employees. MetLife, Inc. sells its products through sales forces, third-party
organizations, independent agents, and property and casualty specialists, as well as
through career agency,direct marketing, brokerage and e-commerce channels. The
company was founded in 1863 and is based in New York, New York.

Conclusions
MetLifes individual life insurance products and services comprise term life insurance and
several types of permanent life insurance, including whole life, universal life and variable
universal life. The company also offers group life insurance provided through employers,
which consists of term life, group variable universal life and group universal life MetLife
is the largest life insurer in the United States, based on life insurance in-force.

53

7. Reference
United States Securities and Exchange Commission.
MetLife Expands Beyond 'Slow Growth' U.S. Market Tulsa World. 11 March
2010. Retrieved 14 March 2011

"MetLife and Fidelity Introduce New Retirement Income Solution: A Variable

Annuity Designed to Provide Lifetime Income for Those Nearing or in
Retirement" (Press release). Business Wire. 16 November 2009.

Botti, Timothy (2006). Envy of the world: a history of the U.S. economy & big
business. New York, NY: Algora Publishing.

Shine, Dan (29 December 1994). "The Love Float". The Dallas Morning News
MetLife Joins Forces with Believe In Tomorrow Children's Foundation".
Wireless News. August 2010
54

 MetLife Inflates Blimp Fleet". National Underwriter: 7. August 2007

MetLife to Be the First Major Marketing Partner of the New Meadowlands
Stadium in NJ (Press release). Web Wire. 17 June 2008. Retrieved 24 August 2010.

55