Kotak Life Insurance launched unit-linked Invest Maxima

Private insurer Kotak Life Insurance today launched Invest Maxima, an investment oriented Unit Linked Insurance Plan (ULIP).

The plan offers zero premium allocation charge feature that maximises the investible component and the choice of three different portfolio management strategies which affords customers tremendous flexibility in managing their portfolio, Kotak Mahindra Old Mutual Life Insurance said in a release issued here.

Customers are given the flexibility to choose from two options, one which offers a choice of five attractive fund options, or the other that enables them to invest in the equity market in a systematic manner over a period of time or a customized combination of the two.

In the last policy year, customers can choose to exit the policy in a secure and systematic manner, by selecting the Systematic Exit Strategy option, which gradually diverts all fund balances into a lower risk money market fund, to avoid volatility and safeguard returns on maturity.

Apart from regular premium payment option, the plan also offers limited and single premium payment options.

The minimum age is 0 years and the maximum age is 65 years.

The maturity of the plan is minimum 10 years and the maximum is 75 years.

There are three premium options, in regular the minimum amount is Rs 50,000, in limited Rs 75,000 and in single premium it is Rs 1, 00,000.

Kotak Mahindra Old Mutual Life Insurance is a 74:26 joint venture between Kotak Mahindra Bank, its affiliates and South Africa's Old Mutual, which is also listed on the London Stock Exchange.

The plan will provide tax benefits to customers.

There is a shift from Ulips to traditional products

SBI Life, the life insurance subsidiary of State Bank of India, has expanded its operations despite Insurance Regulatory and Development Authority's sweeping changes in the norms of unit-linked insurance plans from September last year.

MN Rao, managing director and chief executive officer of SBI Life speaks to FE about his strategies to cope up with regulatory challenges. Excerpts:

How SBI Life is faring in the days when the life insurance industry's numbers are falling?

Business so far has remained satisfactory at SBI Life though falling in line with industry. We have done R2,050 crore of business in the new business premium until August 31 in this financial year, as against R2,390 crore in the corresponding period of the last financial year, thus witnessing a fall by 14% during the period. Now the product mix has changed. We have shifted to low-ticket size product. Still, the total product portfolio remains unchanged from July last year to July this year. Till July during this financial year, our premium has gone up by 3% year-on-year. However, from August 2010 to August 2011, our performance is down by 14%. It has happened as August 2010 (the sales were very good during that particular month) was the last month for all of our old products and we had launched new products in September 2010 in line with the new regulations of regulator Irda. In total business premium, we are growing over last financial year on yield-to-date (YTD) basis in August 2011 when we achieved a sum of R3,983 crore, as compared to R3,706 crore in the corresponding period of the last financial year, thus recording a growth of 7.5%. Going forward, we do expect to show a growth on new business front and total business premium which are expected to go up by 10% and 15-16% respectively by the fiscal-end, as compared to our performance during the last financial year.

While the current volatile capital markets which may nots be conducive for Ulips, how are you trying to push traditional products?

As of now, our product mix-Ulip and traditional and corporate solutions plan (or group plans) is in the ratio 55:45. Total numbers of Ulips have fallen by 10% during August this financial year, when compared to the level of August 2010. Again, our traditional products have gone up by 125% during the period. Our group fund alone has increased by 15% during the same period.

Do you think the highest NAV products launched by insurance companies are misleading and Irda should take some action?

We do have highest NAV product, named as Smart Performer and it is doing well. The regulator is worried about administrative issue related to the product and how to make the disclosures to the customers about such products so that they get a fair deal. Life Insurance Council is working on it.

Has your investment portfolio fallen? Do you think that investment income will fall this year?

Nearly 55% corpus of our total assets under management (AUM) has been invested in equities. In majority of funds, our fund performance has been well so far. In most of the funds, we are in the top performer. In case the same market condition continues, we would invest R6,000-7,000 crore additionally in equities during the remaining part of this financial year. The balance amount would be invested in either G-sec or corporate bonds. There is a shift from Ulips to traditional products happening now. I think, it will stabilise after a year from now.

Do you have any capital infusion plans?

We had our last capital infusion to the tune of R500 crore in SBI Life in 2007-08. It was jointly done by the promoters like SBI and BNP. After that, there has been no requirement of capital infusion because of profitability. We first broke even in 2005-06. Except for a marginal loss, which was incurred by us in 2008-09 thanks to the market crash, we have continued to make profits constantly since then.

With SBI as the parent body, it was expected that SBI Life would emerge as a leader in the life insurance industry soon?

We started our operation some 10 years ago. We are the life insurer with the lowest operating ratio. Also, we are the largest player in the private sector in terms of total business premium as on July-end. The strength of SBI Life is primarily due to the support provided by the SBI. Most of the SBI branches are selling our products through bancassurance channel. On the selling of products of more than one insurers (which is permitted now) by the banks, a report has been submitted before Irda. We are in favour of selling two products each from life insurance and non-life insurance companies. We believe that sale of insurance product is a long term relationship with any bank. There should be close coordination between bank and insurance companies, not only for the sale of their products, but also for servicing of product and grievance redressal so that customers of the bank should have a choice.

Now you have 2 years to revive a lapsed Ulip

A lapsed policy is the last thing a responsible person would want in his/her balance sheet. Imagine the scenario. A policyholder forgets to pay the premium on the due date. He/she fails to pay the premium even after reminders from the company asking him/her to renew the policy within the grace period. The reasons for not paying the premium may be a temporary financial crunch or something serious and unanticipated.

But he/she would lose the insurance cover. In the process, the policyholder's worst nightmare could come true if something were to happen (euphemism for death) to him/her during the period. The whole purpose of buying a life cover - to support the family financially when one is not around - would be entirely defeated.

However, some Ulip (unit-linked insurance plan) holders would get more breathing space now thanks to the recent decision of the Insurance Regulatory and Development Authority (IRDA) to allow policyholders to revive their policies within two years from the premium due date.

The new guideline will be applicable only to Ulips issued after September 1, 2010, when the course-altering norms for Ulips were put in place by the regulator. However, Ulips that have crossed the lock-in threshold of five years will not get any benefit from these regulations.

Relaxed rules

The revised norms, which will become effective from November 1, are aimed at making it easier for policyholders to reinstate their policies that have lapsed. "Under the earlier guidelines, one could not revive their policy once it lapsed 60-75 days after the premium due date. The policy was treated as withdrawn and the balance amount moved to the discontinued policy fund. With the new guidelines, one has the option of reviving the policy for a period of two years (but within the lock-in period of five years)," says Gaurav Rajput, director, marketing, Aviva India.

Until now, if premiums were not paid within the grace/notice period, the accumulated funds were transferred to the discontinued policy fund and remained locked in till the end of the fifth year of the policy, after which it would become payable to the policyholder.

"After this circular, once monies are moved to the discontinued policy fund in the first five years, the policy can be reinstated for up to two years. In which case, the cover will be reinstated subject to underwriting, and the client will again get a choice of investment funds," explains Andrew Cartwright, chief actuary, Kotak Mahindra Old Mutual Life Insurance. For policies more than five years old, reinstatement is not possible, as the funds become payable immediately after discontinuance.

ICICI Prudential Life launched two new Ulips

ICICI Prudential Life Insurance has launched two unit-linked insurance plans (Ulips) – ICICI Pru Elite Life and Elite Wealth - aimed at the high net worth individuals. The features of both the plans are similar, save the premium. The minimum premium for Elite Life is Rs 2 lakh, while it goes up to Rs 5 lakh for ICICI Pru Elite Wealth. The premiums can be paid either in one go or over a period of five years.

Under the one-pay option, the life cover for those aged till seven years and over 60 years is limited to 1.25% of the premium. Those between eight and 60 years can opt for a minimum sum assured of 1.25 times the premium, with the upper limit being five times the premium amount.

If the premium is paid over five years, then policyholders aged between 8 and 45 can secure a sum assured that is either 10 times the annual premium or an amount equal to the policy term multiplied by half of the annual premium, whichever is higher. For those over 45, the sum assured will be seven times the annual premium or an amount equal to the policy term multiplied by one-fourth of the annual premium, whichever is higher.

If policyholders chooses a life cover of 1.25 times the premium, the deduction available under 80c of the I-T Act will be limited to only 20% of the total premium and not the entire premium amount. What's more, the returns generated by the product will be taxable, too.

FUND OPTIONS, MATURITY PROCEEDS
The products offer eight fund options, and also the option to invest systematically through the automatic transfer strategy. In case of the insured's death during the policy term, the amount payable will be the sum assured reduced by the partial withdrawal, if any, or the fund value, whichever is higher. Partial withdrawals are allowed after five years of the policy, subject to limits.

CHARGE STRUCTURE
Premium allocation charges amount to 3% of a single premium and 2% under the five-pay option. Policy administration charges are Rs 60 per month for one-pay and Rs 500 per month under the five-pay option. Any alterations in the policy, besides switching funds, will cost Rs 250 per transaction. "The initial charges are lower compared with other Ulips, but they still cannot beat mutual funds which don't have an entry load," says Pankaj Mathpal, CFP.

Upside: Long-term insurance cover with a limited premium payment term. Also, the policyholder can choose between eight funds options and switching between them is free.

Downside: Like all Ulips, financial planners feel the charges are higher vis-a-vis other comparable financial products like mutual funds.

New Ulip rules rob market of insurance

With flows for Ulips drying, life insurance companies invest just a fraction of what they did last year.

Indian bulls are missing their earlier close allies in the fight against the latest bear onslaught. Domestic life insurance companies, which had acted as a counterweight to fleeing foreign investors in the past, do not have enough dry powder now, as inflows into unit-linked insurance plans (Ulips) have fallen sharply.

Ulips, which used to account for 80 per cent of industry sales, have sunk since September 2010, when the Insurance Regulatory and Development Authority’s new rules made the selling of these hybrid plans less lucrative for both life companies and agents.

SHRINKING FLOWS Net investments by domestic institutions other than mutual funds
(Sep to Aug)	DII*	MF#	Difference
2006-07	18,683.03	6,884.50	11,798.53
2007-08	55,566.48	13,134.70	42,431.78
2008-09	47,806.61	8,373.00	39,433.61
2009-10	4,576.28	-26,067.50	30,643.78
2010-11	-128.93	-5,744.40	5,615.47
Figures in Rscrore # Source SEBI Data Compiled by BS Research Bureau * Source Exchanges

Lack of support from insurance companies adds to the woes of equities battered by foreign institutional investors (FIIs), say experts. Gaurav Dua, head of research, Sharekhan, said: “Insurance flows have slowed. This has impacted to the extent that there is no domestic support to absorb the selling by FIIs.”

FIIs have net-sold stock worth Rs 11,000 crore since the end of July. The BSE Sensex has lost a fifth of its value since January. According to the Business Standard Research Bureau, investments by life insurance companies in equities are down by 80 per cent since the Irda move. In the period between September 1, 2010 and August 31, 2011, net investment by the life companies was Rs 5,616 crore. That is a fall of 81 per cent from the Rs 30,642 crore deployed by these companies in the one-year period before the move.

Since there are no direct numbers in the public domain, this figure was derived by deducting the investments by mutual funds reported by the Securities and Exchange Board of India from the aggregate of domestic institutional investors reported on the exchanges. Domestic institutional investors refers to banks and financial institutions, but insurance companies constitute a major portion.

Insurance officials say equity inflows have fallen as the sales mix has shifted in favour of traditional policies. Unlike Ulips, where up to 95 per cent of the funds can be deployed in equity, traditional plans cap equity exposure at 25 per cent. After the new guidelines came into force, the traditional plans, which earn a relatively higher commission, have gained the attention of sellers. The mix between Ulips and traditional policies, which used to be 80:20, has, therefore, reversed. During April-July this year, life insurance companies collected Rs 26,794 crore by writing new policies and traditional plans accounted for nearly 80 per cent of these.

“Equity investments depend on various parameters like premium collection, sales of unit-linked plans, term plans and interest income, among other things. Across the industry, the premium collection has been down so far in the current financial year, largely due to the dip in sales in unit-linked plans. Looking at the present trend, it is highly unlikely that we would be able to match last year's investment figures during 2011-12,” said a senior official from Life Insurance Corporation (LIC).

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Not surprisingly, LIC, the largest institutional investor, has revised its equity investment plan for 2011-12. It expects to invest Rs 35,000-40,000 crore in the equity markets, as against an earlier target of Rs 60,000 crore. Equity investments by the insurance behemoth during 2010-11 shrunk 30 per cent to Rs 43,000 crore, compared to Rs 61,500 crore in the previous year. However,the official added, since prices are low, investors are able to shore up their stock portfolios by spending lower amounts of money.

“The measures taken by the regulator have changed the focus of insurers towards traditional plans. Though it is a temporary aberration, the slowdown in the sales of unit-linked plans has impacted the equity investments of all life insurance companies,” said Saravana Kumar, chief investment officer at Tata AIG Life.

“Also, in a high interest rate scenario, people tend to shift more to non-unit linked products. Hence, the equity investment tends to be lower,” an official added.

Tata AIG launches 2nd InvestAssure Apex Supreme ULIP series

Private insurer Tata AIG Life Insurance today announced the launch of the second series of its 'Tata AIG Life Insurance InvestAssure Apex Supreme' unit-linked insurance scheme.

"The introduction of the Series II of funds for Tata AIG Life Insurance InvestAssure Apex Supreme will once again give our customers the opportunity to invest in this unique product that is targeted at customers with medium to low risk appetite, who want to gain from the upside potential of the market whilst safeguarding their investments," Tata AIG Life Managing Director and CEO Suresh Mahalingam said in a release issue here.

Tata AIG Life Insurance InvestAssure Apex Supreme is a five-year limited pay plan with a policy term of 10 years and comes with the benefit of a guaranteed maturity unit price ( GMUP )) achieved under the product during the 100 reset dates.

It also provides a guaranteed maturity addition that is payable on maturity and death benefit for the financial protection. Click to know about Insurance

The policy is for individuals between the ages of 18-65 years and is eligible for tax benefits.

ULIP helps get to long-term goal

Mahesh earns Rs 10 lakhs per annum. Categorized as high risk customer with work involving extensive travel, Mahesh has little time towards investment planning. Due to the risky nature of his work, he knows it is important to own a risk cover to benefit his family. He needs to save enough money to meet his children's higher education and marriage expenses.

Perhaps, Mahesh should consider a unit-linked insurance plan (ULIP). These are investment products bundled with an insurance component. These products are ideal to achieve long-term goals for investors who have little time to manage their finances.

Here are some features that make ULIPs a class apart from other instruments:

Long tenure products

Investors can systematically invest in ULIPs at periodic intervals where the investor benefits from rupee cost averaging. To ensure that ULIPs are treated as long-term insurance products, the Insurance Regulatory and Development Authority (IRDA) has increased the lock-in period for ULIPs from three to five years. The lock-in period of five years affects its liquidity coordinate.

Further, a host of charges are deducted from the premium component and also the fund value. Since these products are burdened with high quantum of front loads, it only makes sense to stay invested for longer tenures. Otherwise, these charges can eat into your returns.

Flexibility

The life cover component of ULIPs that a nominee receives is the higher of the fund value and sum assured or both, in the event of unfortunate death. The investment component of ULIP can be in debt, equity or a mix of both according to the risk appetite of the investor.

As one ages the insurance needs change and ULIPs take into account this need. Investors have the option to increase or decrease the extent of protection over the term of the plan. One can also pep up the insurance component by including critical illness riders.

You can top up the existing fund value whenever you choose to. Usually, ULIPs also allow fund houses to switch between funds at no extra fees in the form of switching costs. Since these are long-term investment products, it makes more sense to have a greater exposure to equity than debt. ULIP products with debt concentration with their relatively lower returns, can succumb to inflation risk in the long run.

Tax benefit

ULIP products qualify for tax deduction. The returns are tax-free after the five year holding period.

Choose ULIP with potential

Though ULIPs can boast of achieving long-term financial targets, you must exert caution when selecting the scheme. Nobody can truly predict the economic climate, inflationary pressures and market conditions over a distant future. Carefully select an asset mix that is not only in sync with your risk appetite but also has the potential to generate good returns in the long run.

Before buying any ULIP product, get to know the various charges and fees. Any penalty like premature redemption charges must not come as a surprise to you later. Finally, if you have good financial discipline and the time, build a portfolio of insurance cover, handpicked equity funds and retirement products such as PPF.

ULIPs lose polish for investors insurance companies equity holdings plunge

Equity investments by insurance companies plunged to less than a tenth as policyholders surrendered some unsuccessful old ones to shift to more attractive new products, and regulatory changes took sheen off the unit-linked plans.

LIC missed its annual target of buying shares by a huge margin as policy surrenders jumped more than three-fold during the year. Insurance industry's net investment in equities tumbled to Rs 3,138 crore in the fiscal 2011, from Rs 34,809 crore a year earlier, data from the Securities & Exchange Board of India show.

"Drop in equity investments is because of lower inflows, people are moving towards traditional plans," said Prashant Sharma CIO of Max New York Life. Insurance companies are hit by lower flows into once famous unit-linked insurance plans (Ulips) that had an option to invest a huge corpus into equities unlike traditional insurance plans, where the regulation forced more debt holdings.

Flows into ULIPs fell due to a longer lock-in period that deterred investors and lower incentives made distributors' interest wane. At the beginning of the fiscal year, LIC said it would invest up to Rs 75,000 crore. "Surrenders in the industry is high,'' says Bajaj Allianz chief investment officer Sashi Krishnan. "Policyholders are surrendering from their existing policies or not paying renewal premium as the new set of guidelines is better."

SBI Life's chief investment offer Abhijit Gulanikar said that the increase in surrender has reduced the net investment of the industry in equity. SBI Life had seen policy surrenders of over Rs 1,000 crore. The new guidelines on Ulips that were issued by the Insurance Regulatory and Development Authority (Irda) had capped the surrender charges that one needs to pay while withdrawing from a policy.

The policy had come in force since September 2010. "Insurers are focusing more on single premium and guaranteed products. In these cases, the equity component is not high," said Krishnan. Earlier, there was no cap on surrender charges and companies levied up to 100% at the time of surrender.

The lockin period has been increased to 5 years. Therefore, people are not renewing their existing policies. While all 100% premium can be invested in Ulips, policyholders have the option to choose between the funds and the proportion. In the case of traditional products, with opaque investment plans, the insurance regulator regulates investment norms.

SBI launched New ULIP – Smart Wealth Assure

SBI Life Insurance launched a unit linked plan -- Smart Wealth Assure-- aiming to provide guaranteed fixed returns to the policyholder.

Smart Wealth Assure guarantees at beginning a pre-specified NAV applicable at the end of the 10-year term, SBI Life said in a statement.

SBI Life Smart Wealth Assure is a single premium plan and offers policyholders optional Accidental Death benefit and partial withdrawal ability from 6th policy year onwards.

The scheme would be available at a minimum amount of Rs 50,000, and would cover policyholders from 8 years to a maximum 65 years of age with a policy term of 10 to 30 years.

With launch of Smart Wealth Assure, SBI Life now has a bouquet of eight Ulips catering to the long-term wealth creation and life insurance needs of different customer segments.
"Our aim is to assemble a large and attractive suite of Simple and Smart products so as to allow our customers to choose relevant solutions that best meet their needs, aligned to their income and risk profile," SBI Life Insurance MD & CEO M N Rao said.

The fund would provide guaranteed fixed returns, which provide the policy holder to choose for either of equity fund or P/E Managed Fund or Bond Fund, it added.
Usually the Return Guarantee Fund aims to provide guaranteed fixed return by investing mostly in fixed income securities, namely debt instruments.

As of January, 2011, SBI Life''s market share among private life insurers stood at 18.9(%) per cent, while it was 5.6(%) per cent when it came to total market share.

ULIPs to get costlier with boost in service tax

The projected increase in the service tax on life insurance products will make both traditional and unit-linked insurance plans, or Ulips, more expensive. The industry expects the costs to go up by 50-75 basis points (one bps = 0.01%).

Although companies are yet to figure out the crash of the proposed increase, most insurance executives said premiums may go up by as much as 75 basis points.

"Policies are going to get costlier with the increase in service tax. While traditional plans will cost nearly 50 basis points more, Ulips may see a 75 basis points increase," said SB Mathur, secretary general, Life Insurance Council.

The budget for FY12 has proposed a 50(%) per cent increase in service tax for traditional plans - where investments from the premium collected are made as per the regulatory rule. Currently, policyholders of traditional endowment or money back plans need to pay 1(%) per cent of the total premium as service charge.

In Ulips, where the policyholder chooses the investment mix (how much to put in equity or debt), the service tax will be charged on the portion of the premium not allocated for investment, like premium allocation and policy administration charges. At present, the service tax is only on humanity and fund management charges.

"This taxing of the allocation charges and policy administration charges will affect the yield, and we imagine at least 20-25 bps reduction in yield for the policyholder," said G Srinivasan, CFO, Bharti Axa Life Insurance.

A senior executive of a life insurance company said efforts made by the Insurance Regulatory and Development Authority, or Irda, to increase the returns for policyholders by capping the charge will get neutralized to an extent.

Insurers, however, are not clear whether the service tax will be part of the 3(%) per cent cap on the total charges.

Last year, Irda had put a cap on various charges, including surrender and fund management charges. The difference between the gross and the net yield is capped at 3(%) per cent for policies with less than 10 years of maturity; for policies with a maturity of more than 10 years, the difference is capped at 2.25(%) per cent.

P Nandagopal, managing director of IndiaFirst Life Insurance, said there is no clarity on whether the service tax will come under the charges prescribed for Ulips. "In case it is outside the 3(%) per cent cap, the premium will go up for policyholders. If it is within the prescribed cap, insurers will have to control expenses well."

"The increase in service tax will increase the cost of insurance for policyholders," said GV Nageswara Rao, managing director and CEO of IDBI Federal Life Insurance Company.

Increase your life cover with LIC Samridhi Plus

LIC Samridhi Plus was launched by India’s Life Insurance Corporation under the range linked with insurance based on security, protection and growth.
This is mostly directed towards policy holders protection the investments from any fluctuations that may hit the market.
This was also confirmed by the corporation stating that Samridhi Plus is a protection plan policyholders investments.
Another important feature of this policy is the life cover plan that stretches across a plan term of 10 years and covers around Rupees 50 lakh based under positive terms and conditions of the policy.
To avail Samridhi Plus an entrant’s minimum age limit should be 8 years while the maximum should be 65 years.
The range of minimum premium of this policy depends and can vary between Rs 1500 (through ECS) to Rs30, 000(by premium in a single go). It may also be in the form of a yearly payment of Rs 1 lakh for a payment period of 5 years.
The sale of this plan will be available throughout a term of 3 months from the launch date. Dual withdrawals are also sanctioned after the completion of the 5th anniversary.
Under the situation of death of the policy holder within the term of policy particularly when the life cover is at its full application, the person held as nominee will get a higher sum during the policy over the fund value of the policy holder.
Accident benefit as mentioned is also a part of this effective policy. The range of sum over the annualized premium ranges between 10-20 times below the age limit of 45 years under the premium term of 5 years of this policy.
Know more about LIC

New ULIP Plan Lunched by LIC

Life Insurance Corporation of India launched 'Samridhi Plus' under its unit linked portfolio offering insurance protection, safety and growth.

Samridhi Plus safeguards policyholders' investment from market fluctuations, LIC said in a statement here.

Accident benefit option is also available under this plan that will be equivalent to the life cover up to a maximum of Rs 50 lakh, subject to positive conditions.

The policy term for the plan is fixed for 10 years, it said.

The minimum age at entry level for Samridhi Plus is 8 years while the maximum age is 65 years.

The minimum premium ranges from Rs 1500 (monthly - ECS) to Rs 30,000 (single premium) depending on the mode of payment while the maximum is Rs 1 lakh per annum under any mode for the 5 year premium paying term.

Ulips to be a third of our products

With a focus on long-term savings plan and protection, Max New York Life Insurance has planned its traditional and Ulip products to suit the changing market dynamics. In an interview with FE’s Debojyoti Ghosh, the company's chief executive and managing director, Rajesh Sud, says the insurance company is looking at a healthy 33:67 mix of Ulip versus traditional over the next few years.
In the current market what kind of business do you foresee?
The year 2011 will be a year of change and adaptation for the life insurance industry. Life insurance industry will need to focus on and be sold as long term contractual savings and protection tool. It will also need to focus on providing consumers with a much more balanced product portfolio. The true value of a professional dedicated agent advisor will become truly visible since the product changes and disclosure requirements will ensure a higher seller and customer engagement at the time of the sale. Some select customer segments may also use the internet for simple products such as term plans.
Distribution trends may also under go changes. Much of the growth in life insurance is expected from increased agents' productivity.
Are you looking at a change in product mix and cost rationalisation?
A sustainable profitable growth is only possible through customer centricity. We will drive profitability in the business by reducing acquisition expenses and increasing persistency. We will enhance our focus on renewal income which obviously comes at a lower cost. For the period January to August, our product mix has been 30:70 (traditional: lips) and 85:15 for September to December. This significant skew toward traditional products has been mainly due to the limited Ulip offerings. We currently do not have pension and growth Ulips in our range which contributed 40(%) per cent in the first 8 months of 2010. We are looking at a healthy 33:67 mix of Ulip versus traditional over the next few years.
Is there any change in your investment scheme?
There has been no change in our investment philosophy. We follow a prudent investment philosophy to minimise risk.
The investments made by the company are in safe instruments – top 5 debt investments are AAA rated and majority of equity investment are in large cap, which are safe and provide good returns in the long run....