COURSE NAME

MANAGERIAL POLICY
SUBMITTED TO

COMPANY NAME

NEW JUBILEE LIFE INSURANCE COMPANY LIMITED

PREPARED BY

TABLE OF CONTENTS
TABLE OF CONTENTS....................................................................2

About Company
New Jubilee Life Insurance Company Limited (NJLI) is a subsidiary of Aga Khan Fund for Economic Development. The company is principally engaged in providing a wide range of insurance products such as life insurance, health insurance, loans and investment services to individual and corporate customers. It operates through three business segments, namely, Individual Life (unit linked), Bankassurance, Group Insurance.

History of NJI Life

New Jubilee Life Insurance Company Limited (NJI Life) is a subsidiary of the Aga Khan Fund for Economic Development (AKFED), Switzerland. Incorporated in Pakistan on 29 June 1995, under the Companies Ordinance 1984, as Commercial Union Life Assurance Company (Pakistan) Limited, the Company commenced operations in 1996 as a Public Limited Company , listed in the Karachi Stock Exchange. Commercial Union was then acquired by AKFED (Aga Khan Fund for Economic Development) in 2003, as New Jubilee Life Insurance Company Limited (NJI Life). NJI life is governed by an independent Board of Directors comprised of industry stalwarts. AKFED is the economic development arm of the Aga Khan Development Network (AKDN) - a group of private non-denominational development agencies seeking to improve opportunities and living conditions in specific regions of the developing world, especially Asia and Africa 2

AKFED is active in the fields of Industry, Financial Services, Tourism Development and Infrastructure in South and Central Asia and sub-Saharan Africa. Some of the sister concerns of NJI Life in Pakistan are: The Aga Khan University Hospital New Jubilee Insurance Company (carrying out general insurance business) The Aga Khan Health Services Tourism Promotion Services (Chain of Serena Hotels) First Micro Finance Bank Limited Habib Bank Limited The Aga Khan Education Services Focus Humanitarian Assistance

Vision Statement
To be Pakistans leading and most highly reputed life insurance company, enjoying the confidence and trust of its Shareholders, Policyholders, Business Partners and the Communities in which it operates.

Mission Statement
Shareholders are the backbone of our business. They provide the initial capital which enables the Company to commence the business and to grow the business through retention of profits and by investing additional capital when required. We will strive to achieve above average earnings on their invested capital. Our Policyholders are our most valuable assets. We will strive to provide them with a full range of life insurance and other products, security of their investment, a satisfactory return on their investments and efficient personal service. Employees are our partners enabling us to fulfill our vision and mission. We will endeavor to provide them a fair reward based on their performance and achievements, a good working environment, adequate training and opportunities for self development to empower them to grow and prosper with the company.

The community in which we exist along with our Shareholders, Policyholders, Employees, etc also deserves our consideration. We will participate and contribute to the uplift and welfare of the community and the improvement of the environment.

Core Values
Ethical and Legal Behavior Customer Focus Profitability & Cost Consciousness Employee Development Teamwork Positive Attitude Continuous Improvement Innovation Speed & Responsiveness

Board of Director
Masood Noorani Javed Ahmed Aly Noor Mahomed Rattansey John Joseph Metcalf Shahid Mahmood Loan Sultan Allana Towfiq H. Chinoy Chairman Managing Director/CEO Director Director Director Director Director

Board Committee Audit

Aly Noor Mahomed Chairman

Human Resources
Towfiq Habib Chinoy Chairman

Finance & Investment

Masood Noorani Chairman

Management Committee Claims

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Javed Ahmed

Chairman

Reinsurance
Javed Ahmed Chairman

Underwriting
Javed Ahmed Chairman

Procurement & Disposal

Nurallah Merchant Chairman

Products
SECURE LIFE PLAN EDUCATION PLAN ZAMIN PLAN WED SMART PLAN EXCEL PLAN SAVE N PROTECT PLAN POONJI PLAN JOINT LIFE PLAN SARMAYA PLAN PENSION PLAN LOAN PLAN

External Factor Evaluation

Factor Industry Average 0.06 0.07 0.05 Rating Weighted Average 0.12 0.21 0.10

Opportunities
1 2 3 Population Savings/investing Awareness of people about insurance benefits 2.00 3.00 2.00

4 5 6 7 8

Large scale viable rural market Tariff free market Corporate Sector Low Penetration Rate Growth in Insurance Sector Unlawful conditions Unemployment trend Ethical concerns Price fluctuations Political Stability Competition in Insurance Company Free Market Banks offering more structured financial products

0.09 0.05 0.08 0.07 0.09 0.07 0.04 0.05 0.06 0.04 0.08 0.04 0.06 1.00

1.00 2.00 3.00 2.00 4.00 2.00 1.00 2.00 3.00 3.00 4.00 2.00 2.00

0.09 0.10 0.24 0.14 0.36 0.14 0.04 0.10 0.18 0.12 0.32 0.08 0.12 2.46

Threat
1 2 3 4 5 6 7 8 Total

Internal Factor Evaluation

Factor Industry Average 0.06 0.08 0.07 0.06 0.08 0.07 Rating Weighted Average 0.24 0.32 0.28 0.18 0.24 0.21

Strengths
1 2 3 4 5 6 Backed by AKFED Fast growing company Product Differentiation Highest ratio of customer loyalty Quality of Staff Operational Efficiency 4.00 4.00 4.00 3.00 3.00 3.00

7 7 9

Expanding Market Share in Sector Strong capital and reserve base Timely Claim Covered Quantity of Sales Force Infrastructure in Pakistan Weak advertisement policy Unaware population of Pakistan about their security Less coverage in Rural Areas

0.08 0.07 0.06 0.08 0.09 0.06 0.05 0.09 1.00

3.00 3.00 3.00 2.00 2.00 1.00 2.00 1.00

0.24 0.21 0.18 0.16 0.18 0.06 0.10 0.09 2.69

Weakness
1 2 3 4 5 Total

BCG Matrix
Stars High Question Marks

M A R K E T

Secure life Plan Education Plan Zamin Plan

Wed Smart Plan Excel Plan Save n Protect Plan Poonji Plan

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G R O W T H

Loan Plan Personal Accident Plan Investment Plan

Joint Life Plan Pension Plan Sarmaya Plan

Low Cash Cows High Dogs Low MARKET SHARE

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Grand Strategy Matrix

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RAPID MARKET GROWTH Quadrant II Market development Market penetration Product development Horizontal integration Divestiture Liquidation WEAK COMPETITIVE POSITION Quadrant I Market development Market penetration Product development Forward integration Backward integration Horizontal integration Concentric diversification STRONG COMPETITIVE POSITION

Quadrant III Retrenchment Concentric diversification Horizontal diversification Conglomerate diversification Liquidation

Quadrant IV Concentric diversification Horizontal diversification Conglomerate diversification Joint ventures

SLOW MARKET GROWT

New Jubilee Life Insirance lies in Quadrant I

IMPLEMENTATION STRATEGY
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Focus
Program tied to technical direction Link to personal objectives

Marketing
High-level sponsorship Broad organizational support Proactive leadership/champion Proactive marketing program

Operations
Optimized facilities Well-documented policies and procedures Wide accessibility Evaluation and measurement of learning systems

EVALUATION STRATEGY
Reviewing Bases of Strategy Measuring Organizational Performance Quantitative criteria commonly used to evaluate strategies are financial ratios Key financial ratios for measuring organizational performance

SUGGESTIONS AND RECOMMENDATIONS

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New Jubilee Life Insurance Company Limited (NJLI) is one of the leading Insurance companies in Pakistan. the company is well-managed, well organized. The management has complete control over its working staff. All the departments in the company are well designed. And the Human resource is quite efficient, which is the major cause of success of the company in the market. But in spite of all the factors; there are certain areas on which the company needs to give more concentration. On the basis of their market place, SWOT Analysis the following recommendations are suggested: Employees are less, should hire more people to lessen the over burden of workload. Salary should be revised. Technical training must be conducted periodically. They should hire more educated sales force to enhance the customer supplier relationship The management of New Jubilee Insurance Company should pay concentration to the insurance expenses and commission which are the major causes of low profitability. Although company is efficient in controlling its general expenses but it is very effective. Because it accounts for a few percentage of premiums volume and insurance expenses is the major portion of the income statement after net claims. More and more branches should be opened, particularly in the rural areas. More and more focus should be given to enhance public image and goodwill through superior customer services and interaction

Conclusion
NJLI is very strong insurance company that has recently introduced two of new insurance plans which are monthly based savings and banks insurance. This is first time in the history of Pakistan that any insurance company has introduced the insurance plans for banks. NJLI employees are very hard working; they are selected after a fifteen days testing period. They are providing better satisfaction as compared to other customers and their customers are loyal to them. NJI has very strong financial position and strong management.

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