Aravali Institute of Management, Jodhpur

Project Management
Assignment on SWOT Analysis of

RELIANCE GENERAL INSURANCE COMPANY

Submitted To:- Submitted By:-

Mr. Abhilash Parekh Girish Harsha
Roll No. 16
PGDBA (PGP-II)
 Reliance Capital

Reliance
Reliance Reliance General Reliance Life Reliance Consumer
Mutual fund Insurance Insurance Money Finance
Mutual Fund

Reliance money is a part of the reliance Anil Dhirubai Ambani Group and is
promoted by Reliance capital, the fastest growing private sector financial services
company in India, ranked amongst the top 3 private sector financial companies in
terms of net worth. Reliance money is a comprehensive financial solution provider
that enables you to carry out trading and investment activities in a secure, cost-
effective and convenient manner. Through reliance money, you can invest in a wide
range of asset classes from Equity, Equity and commodity Derivatives, Mutual Funds,
insurance products, IPO’s to availing services of Money Transfer & Money changing.
Reliance Money offers the convenience of on-line and offline transactions through a
variety of means, including its Portal, Call & Transact, Transaction Kiosks and at it’s
network of affiliates.

Some key steps of the company that are as…..

“Success is a journey, not a destination.” If we

look for examples to prove this quote then we can find many but there is none like
that of Reliance Money. The company which is today known as the largest financial
service provider of India.
 • Success sutras of Reliance Money:
The success story of the company is driven by 8 success sutras adopted by it namely
trust, integrity, dedication, commitment,
enterprise, hard work and team play,
learning and innovation, empathy and
humility. These are the values that bind success with Reliance Money.
• Vision of Reliance Money
To achieve & sustain market leadership, Reliance Money shall aim for complete
customer satisfaction, by combining its human and technological resources, to provide
world class quality services. In the process Reliance Money shall strive to meet and
exceed customer's satisfaction and set industry standards.

Mission statement:
•
“Our mission is to be a leading and preferred
service provider to our customers, and we
aim to achieve this leadership position by
building an innovative, enterprising , and
technology driven organization which will set
the highest standards of service and
business ethics.”

Reliance General Insurance, a part of the Reliance - Anil Dhirubhai Ambani Group
and a Subsidiary of Reliance Capital, is one of the first non-life companies to get the
license from the IRDA. Reliance General Insurance is India's fastest growing general
insurance company and the top 3 private sector insurers.
Reliance General Insurance has 200 branches across 171 cities and over 20,000
intermediaries. Reliance General Insurance offers an exhaustive range of insurance
products that covers most risks including Auto, Health, Property, Marine, Casualty
and Liability. Insurance Indemnifies Assets & Income. Every Asset has a value and
generates Income to its Owner. There is a normally expected Life-time for the Asset
during which time it is expected to perform. If the Asset gets lost earlier, being
destroyed or made Non-functional through an Accident or other unfortunate event the
Owner is Prejudiced. Insurance helps to reduce CONSEQUENCES of such Adverse
Circumstances which are called Risks
Reliance General Insurance is one of the fastest growing general insurance companies
in India with innovative product offerings and customer service standards that are
benchmarked to the best in the world.
The Company aims to increase its presence in the retail and corporate sector with a
focus on customer centric products, multi distribution channels and technology.
• Insurance is the SCIENCE OF SPREADING OF THE RISK. It is the system
of spreading the losses of an Individual over a group of Individuals
• Insurance is a Method of sharing of financial losses of a FEW from a
COMMON FUND formed out of Contribution of the MANY who are equally
exposed to the same loss
• What is UNCERTAIN for an Individual becomes a CERTAINTY for a Group.
This is the basis of All Insurance Operations. Thus INSURANCE
CONVERTS UNCERTAINTY TO CERTAINTY

RGICL PRODUCTS
HEALTH
• Individual Mediclaim Insurance Policy
• Group Mediclaim Insurance Policy
• Overseas Travel Care Insurance Policy
• Reliance Health Wise Policy (inclusive of PED & Critical Illness) – NEW
- a specialized retail product
PERSONAL ACCIDENT
• Personal Accident Insurance (Individuals) Policy
• Group Personal Accident Insurance

FIRE
• Standard Fire and Special Perils Policy
• Industrial All Risks Insurance Policy
• Consequential Loss (Fire) Insurance Policy

ENGINEERING
 • Erection All Risks/Storage-cum-Erection Insurance Policy
• Contractor’s All Risks Insurance Policy
• Contractor’s Plant and Machinery Policy
• Machinery Breakdown Insurance Policy
• Machinery Loss of Profits Insurance Policy
• Boiler & Pressure Plant Insurance Policy
• Electronic Equipment Insurance Policy

MARINE
• Marine Cargo Insurance Policy
• NEW - Marine Turnover based Policy
• NEW - Multi Transit Policy

MOTOR
• Private Car Comprehensive Insurance Policy

LIABILITY
• Directors and Officers Liability Insurance Policy
• Public Liability (Act) Insurance Policy
• Public Liability Insurance Policy
• Product Liability Insurance Policy
• Professional Indemnity Insurance Policy

• Workmen’s Compensation Insurance Policy

PACKAGED POLICIES FOR CORPORATES

• Industry Care Insurance Policy
• Commercial Care Insurance Policy
• Office Package Insurance Policy
• Fidelity Guarantee Insurance Policy
• Burglary and Housebreaking Policy
• Money Insurance Policy
• Householder’s Package Insurance Policy
• Shopkeeper’s Package Insurance Policy
Following are ratios highlighting profitability of the company:
Year 2007-08 Ratios
Gross Profit Ratio -15%
Net Profit Ratio -17%
Operating Expenses Ratio 29%
ROI 11.27%
ROE -34%
EPS -15.92
Dividend Per Share* Not given by company this year

SWOT Analysis
Strengths
 One of India’s leading and fastest growing private sector financial services
companies, and ranks among the top 3 private sector financial services and
banking companies, in terms of net worth.
 Strong position in the financial services category.
 It is India’s first insurance company to be awarded the ISO 9001:2000
certification across all functions, processes, products and locations pan-India.
The quality assurance provides an edge over other players.
 Company issued 36.57 Lac policies during the year as compared to 14.60 Lac in
the previous year thereby registering a growth of 150%.
 RGIC has been able to give highest ROI of 11.27% in last five years. The net
worth has doubled to Rs.4.94 billion from last year’s Rs.2.59 billion.
 Excellent outreach with a large distribution network.
-It has 200 branches across 171 cities and over 20,000 intermediaries. The
setup provides the company is very strong and very effective distribution
network, and consequently a strong penetration in the market.
 Expert’s and research team to make strategies and products for company as well
as clients base to resolve the problem.
 Capture the 17% of the Private Sector Share & 7% share of the General
Insurance Industry
 Reserves and Surplus has increased five times to Rs.4.998 billion from Rs.1.04
billion previous year
  The Company has earned Rs.1034 crore of New Premium Business in Financial
Year 2008 which is 41% share of the Private Sector Industry & 33% of the
Industry as whole
-Company is ranked number one in the New Premium Business in Financial
Year 2008.

Weaknesses
 Dependence on fellow subsidiaries for various supplies.
-Extra control or interference from fellow subsidiaries.
 Sudden expansion in year 2007-08 by establishing more than 125 branches has
increased operations and administration expenses due to which losses incurred.

Opportunities
 Detariffing
-IRDA has removed controls on pricing in General Insurance business with
effect from 1st January, 2008. IRDA had notified that except for Motor Third
Party risks, all other new insurances and renewals effective on or after 1st
January, 2008, insurers shall be free to quotes rates of premium in accordance
with file and use guidelines.
 General insurance industry in India has grown at 15% CAGR in terms of gross
premium collection
 The company has moved to 3rd position amongst Private Sector Insurers in
Financial Year 2008 & is ranked 7th amongst the Industry with 14 General
Insurance players.

Threats
 New Entrants
-Future General India Life Insurance Company Limited -Sep. 2007
-IDBI Fortis Life Insurance Company Ltd. –Dec 2007
 -Bharti Axa General Insurance Company Ltd. -June 2008
 New joint ventures (JVs) by industry giants
- Max India forms JVC with Bupa Finance to foray into Health Insurance
-Shriram Group is to enter General Insurance Market