Xyz insurance company

Insurance company marketing plan

1. Assignment
International Business Strategies


XYZ Insurance Company
Business Plan


Executive Post Graduate Diploma in Industrial Marketing
SUBMITTED TO
Prof. Umang Gupta


INDIAN INSTITUTE OF FOREIGN TRADE
NEW DELHI

SUBMITTED BY
 
Hitesh Bharti: 24
Akansha Jain: 6
Anjali kumari: 11
Varun Bakshi: 64
Viraj Dua: 65

2. Table of Contents

I. Table of Contents................................................................................................... 2

II. Executive Summary............................................................................................... 3

III. Business Description.............................................................................................. 5

IV. Business Environment Analysis……..................................................................... 7

V. Marketing Plan.......................................................................................................9

VI. Operational Plan................................................................................................ 11

VII. Financial Plan..................................................................................................... 13

XI. Appendix………………………………………………………………………………..19

XI. References...….....................................................................................................21

3. Executive Summary

XYZ Insurance Company is JSC “XYZ Corporation” captive company. It will be formed as
an open joint-stock company. This plan is written as a guide for financing, start-up and
management of this new business and will also serve as the basis for measurement. The
following is a summary of the main points of this plan.

 XYZ Insurance Company is a start-up provided insurance services for JSC XYZ
Corporation and small business companies.

 Attracting of the new client provided by efficient marketing plane which was
made by top managers of the company and some specialists and experts who
was engaged to analyze market situation and create marketing plan.

 The keys to success for XYZ Insurance Company are quality of business services
and products, personal contact, timely and accurate service, development of
one-to-one relationships, and a reputation of honesty and integrity.

 XYZ Insurance Company has efficient structure. It is not many employee in the
company, so it is very efficient-controlled organization.

1.1 Objectives

The main objectives XYZ Insurance Company are:

 Profit - to create enough prosperity for the owner and employees to have a
secure and comfortable lifestyle.
 Growth - to grow the business at a rate that is both challenging and
manageable.
 Assistance - to assist in JSC «XYZ Corporation» further growth.

1.2 Mission

 XYZ Insurance Company is dedicated to providing insurance products and
business services that provide high quality, protection, and value pricing. We
wish to establish a successful cooperation with our mother company that
respects its interests and goals.

1.3 Keys to Success


The keys to the success XYZ Insurance Company are:

 A high quality of business services and insurance products that are affordable,
available and understandable.
 Personal contact and service that meets or exceeds the expectations of our
clients.
 Services and products that are delivered with accuracy and timeliness.
 Relationships with our clients that fosters renewal business.
 A reputation in the community for its honesty and integrity.

4. In conclusion, as shown in the highlights chart below, this plan projects rapid growth over
the next three years with a profit forecasted in the second year of operation and
continuing into future years of operation. Based on the realistic sales projections and
conservative forecasts, XYZ Insurance Company will achieve profitability in the second
year of operation. Monthly profitability is first achieved in the next year, but due to reserve
fund’s accumulation and developing a customer base, the first year of operations reflect
a loss. After the second year of operation, the reserve fund will reach 324 million rupees.
The amount of insurance payments is assumed to be 150 million rupees Net profit will
reach 104 million rupees. Implementing this plan, will ensure that XYZ Insurance Company
becomes a profitable venture.






0
0.5
1
1.5
2
2.5
3
3.5
4
Year 1Year  2Year  3
Chart Title
Yearly net profit, thousand rupeesGross margin, thousand rupeesReserves, thousand rupees

5. Business Description

XYZ Insurance Company is a start-up company located in New Delhi, New Delhi Region.
Captive XYZ provides insurance services for JSC «XYZ Corporation» and small business
organizations.

Company Ownership

XYZ Insurance Company is open joint-stoc k company. Authorized capital of the
Company divided into shares 90% of which are owned by JSC «XYZ Corporation». 10% of
the shares divided between 3 top Managers of the company.

Start-up Summary

XYZ Insurance Company start-up costs include different kinds of expenses.

 Marketing Services costs include research and analyzing of the market and
business environment; different kinds of promotion and positioning.
 Website Development: professionally developed business website on the Internet.
 Business Cards: the printing of business cards with company logo.
 Brochures: development and printing of brochures for marketing the business.
 Exhibitions one of the most important part of our promotion. That’s why organizing
of the impressive pavilion is important part of costs.
 Office inventory.
 Other costs

Services

XYZ Insurance Company provides insurance services for:

 Its mother company - JSC «XYZ Corporation»;
 Small business companies of the New Delhi Region.


Depending of the companies XYZ Insurance Company provides:

 For JSC «XYZ Corporation» we insure Actives of the company, production lines,
some trade actions and trade contracts with suppliers and customers, different
kinds of risks.
 For small business our main insurance services are insure of trade actions and trade
contracts with suppliers and customers and some kind of risks.

In the future we intend to offer the following services:

 Making of the concrete recommendations to deal with risks.
 Control of the recommended actions execution and making adjustments.
 Risk management system in the company.

6. Our principles of risk management:

 create value
 be an integral part of organizational processes
 be part of decision making
 explicitly address uncertainty
 be systematic and structured
 be based on the best available information
 be tailored
 take into account human factors
 be transparent and inclusive
 be dynamic, iterative and responsive to change
 be capable of continual improvement and enhancement

Business Philosophy:

Efficiency of work. XYZ Insurance Company should make profit not only for itself, but for
every client.
New technologies. Using of the new technologies should make XYZ Insurance Company
work faster.
Economic. Only economic methods of making business.
Range of options. All clients can choose different kinds of services.
Gain of work. Good work – good payment.
Original. Original and innovation area of work and methods of work.
Market. Market oriented work.
Ease of work. Only ease atmosphere of work can create efficient nice impression.
Risks. Risks – one of the main factor which we consider every day.
Actual. All our work must be interesting for the market.

The most important strength of XYZ Insurance Company is situation when this company is
only one company in New Delhi Region which main specialty and alignment is small
business (now we don’t speak about JSC «XYZ Corporation»).

Even if new companies choose the same business, XYZ Insurance Company would have
a big advantage – time.

XYZ Insurance Company top managers are one of the best specialists. And their skill
would play great role in XYZ Insurance Company business.

7. Business Environment Analysis

JSC «XYZ Corporation» is our mother company which is the main sphere of our activity.

Joint-Stock Company “XYZ Corporation” was founded in 2010, in the north of India in New
Delhi. Today there are more than 600 people working at enterprises. The Corporation
consists of top-rated Indian enterprises: measuring equipment factory “XYZ”, electronic
materials factory “Mon crystal” and, finally, electro-technical factory “XYZ”.

Product portfolio includes complete model range of electronic devices and energy
measuring systems, service and metrology equipment, equipment for electrochemical
protection of underground pipelines from corrosion. It has gained the leading positions in
India in terms of sales revenue and technical level of the products.

Here are its main financial results of activity:

Results of Activity

Thousand rupees
Revenue 4 728 911
Gross margin 1 481 493
% from revenue 31.3%
Operating income 874 623
% from revenue 18.4 %
EBITDA 1 143 892
% from revenue 24.2 %
Net profit per ordinary share, rupees 0.48 %


Basic Data of Consolidated Balance Sheet

Thousand rupees

Non-current assets 3 344 315
Fixed assets 2 526 253
Intangible assets 811 887
Current assets 4 186 927
Funds and their equivalents 402 043
Total assets 7 531 242
Total: commitment, taking into account the minority
interest
4 672 229
Total: loans and credits, including short-term 4 077 667

8. Insurance market of New Delhi Region is in a complex contradictory development
reflecting and reacting to all the processes occurring both in politics and economy of
the region and India.

In the 1991 as a result of de-monopolization of the insurance business the number of
insurance companies’ branches increased, insurance services market was created.
Reinsurance and investment activities of insurance companies have developed. At the
same time, it is worth noting that the de-monopolization was carried out without a clear
program of market development, without sufficient prorated insurance legislation and
government regulation. In this regard, currently the regional insurance market is
characterized by a number of problems:

 Minor of the capital in insurance companies;
 Low degree of their self-organization;
 Weak insurance culture of the potential consumers;
 Low purchasing power of people and companies.

New Delhi Region has high percent of the compulsory insurance in the structure of
insurance payments – 72.3%.

Insurance companies realize their activities by 41 thousand of agreements, three quarters
of which were concluded with companies.

About 50% of insured generally not satisfied with the quality of services of their insurance
company. In basically, this dissatisfaction is associated with bureaucracy and a large
number of documents that must be completed, as well as the excessive length of
proceedings. Two other fairly significant factor of dissatisfaction with insurers - partial
payment of insurance money and lack exactly those services that are needed to insured.

The level of awareness about insurance is low: less than half insurance services to assess
their knowledge in this area as satisfactory.

When choosing an insurance company for the insured the most important criteria are the
personal recommendations, the duration of the company in the market, clarity insurance
conditions, reliability and known company.

9. Marketing Plan

The main aim of our company is to keep financial resources of the JSC «XYZ Corporation»
in the company. Another aim is to attract new clients from small business in our region.
So we have two markets: JSC «XYZ Corporation» and small businesses in New Delhi
Region.

All in all small business market in New Delhi Region is 12.7 thousands companies. But we
are interesting more in manufacturing industry. And this market is much smaller – 1.7
thousands companies. If we could attract a third of this companies it would be a great
success.

And we have big chance to achieve this aim because niche of the insurance in the small
business is not very developed in New Delhi region.

The main idea of our marketing strategy to attract new client.

Product of our company is insurance services of business sales, cargo, equipment and
responsibility of contract members.

If we draw attention on the today situation on the market, we can see that many
companies make many deals with big risk. If one side of the contract haven’t done
conditions of contract, it is a big problem to restore rights of another.

But if client came in our company, made a contract and choose interesting for him
services, we would help him to restore all his rights.

How our company would attract clients?

We must say that our business is quite new for our region and many potential clients know
nothing about it. That’s why direct marketing is the most efficient way to attract clients.
More than that for the initial period we can ourselves invite those client whom we are
interested in.

Another way to attract clients is to take part in different conferences and fairs. Only when
we could explain all pluses for our clients we can attract them to trust our company.

And one of the main systems which would help us to contact with our clients would be
website of our company. Full information about our business, different economic articles,
including articles of our managers, system question-answer and more would be available
for our clients and people who are interested in.

10. SWOT-Analysis

If we speak about different sides of our business we must say some words about Strengths
and Weaknesses.

As we said one of the main strength of XYZ Insurance Company is its new services in New
Delhi Region. That’s why at the beginning our company would be only one insurance
company with same specialty.

Another strength is that every time we have a constant client – JSC «XYZ Corporation».
That’s why we would have a real profit always.

XYZ Insurance Company is not very big. That’s why it is efficient and well controlled.

What about weaknesses? The main weakness is that XYZ Insurance Company is a new
company and we should do big work to attract new clients.

But XYZ Insurance Company has real opportunities to open new services if it would be
necessary. Real opportunities of growth are other strengths.

Main threats of our company depend mainly on the economic and political situation.
Different crises or new laws can make big organization problem.

Calculation of expenses on marketing campaign

Type of marketing

Quantity per year, pcs.

Price, Rs

Costs, Rs


Web-site 1 40000 40000
Brochures 200 11 2200
Business cards

1000 2 2810
Exhibitions

4 15000 60000
TOTAL:

105010

11. Operational Plan
Location

The office of XYZ Insurance Company will be situated in Cannought Place the New
Delhi business center. Required space is going to be 192 m
2. There is going to be 3
private offices for chief officers, 3 rooms for managers, 1 reception room, 1 canteen, 1
WC (Water Closet) and 1 pantry. The estimated rent cost is 78 000 Rupees per month,
maintenance is 10 000 Rupees per month, the business hours – from 9 a.m. to 6 p.m. 5
day business week.

Legal Environment

Licensing and bonding requirements:

 documents confirming state registration;
 approved charter of the company;
 decision of founders on firm establishing;
 business plan;
 documents confirming payment of at least 50% of the share capital of the firm;
 evidence of payment of state taxes;
 layout of insurance reserves;
 Rules for the types of insurance according to the insurance laws and the general
conditions of the validity of deals.
 samples of insurance contracts and certificates

Personnel

Organizational structure

12. Calculations of annual payroll of the staff of XYZ Insurance Company

# Post Category Number of Staff Unit Monthly wages
in INR
Annual Payroll
(INR) 1 CEO Chief 1 45000 540000
2 CAO Chief 1 40000 480000
3 CFO Chief 1 40000 480000
4 Office Manager Employee 2 25000 600000
5 Marketing Manager Employee 1 20000 240000
6 Sales Manager Employee 1 20000 240000
7 Assistant Manager Specialist 2 15000 360000
Total : 9 205000 2940000
Bonuses 30% of Annual Payroll 882000
TOTAL : 3822000


Inventory
Calculations of depreciation deduction per year

Name of
equipment

Cost INR

Standard period of
usage, years

Quantity of
equipment, pcs.

Depreciation
deduction per
year INR

HP Computer 50 000 4 2 25 000
Dell Laptops 55600 5 6 66 720
HP Printer 11 550 8 1 1 443
Lighting system 20 000 10 1 2 000
Office furniture 20 000 10 7 14 000
Canteen furniture 80 000 10 1 8 000
Total : 117 163

Risk assessment
Risk assessment in insurance activity

Risk factor

Probability

Time loss
(person-
days)

Expected
damage,
INR

Damage,
taking into
account the
probability INR

Actions to reduce
damage

Natural disasters 25%

40 44000 11000 Creation of
equalization payments
Armed conflicts 20% 80 88000 17600 Expansion of services
Failure of conditions
of contacts by
contactors
15% 15 16500 2475 Penalties in contracts
with contractors
Strikes 10% 100 110000 11000 Penalties in contracts
with supporting firms
Insufficient
information to form a
business plan
15% 180 198000 29700 Informational system
improvement
Changing the tax
code
15% 100 110000 16500 Creation of
equalization payments
TOTAL

100% 88275

13. Financial Plan

The most important part of our plan is calculation of insurance premiums of JSC «XYZ
Corporation». These premiums will be the base of our insurance and financial activity.
After the identification of potential risks we assessed them as to their potential severity of
loss and to the probability of occurrence.

The table below is combined project of calculations of expected damages and
insurance payments for the first year.

# Groups of risk factors Insurance
rates
Time loss
(person-
days)
Expected
physical
damage,
thousand INR
Expected
damage,
thousand INR
Damage,
taking into
account
the
probability
and
insurance
rates,
thousand
INR
1 Industry risks:
 supply and demand
fluctuations;
 sales and profit decline;
 competitors' positions'
strengthen;


2 Country and regional risks
3 Financial risks:
 currency risks;
 changing of interest
rate;
 inflation;
 timeliness of consumers’
payments;

4 Legal risks:
 imperfection of Russian
legal system;
 imperfection of judicial
remedies;
 unreasonable actions
of state institutions;


5 Production risks
 spoilage;
 production breaks;


6 Property risks


7 Life insurance


TOTAL :


To ensure that the implementation of insurance obligations of insurance company on
such terms and conditions established by the legislation of the Indian Federation, we
will form the following insurance reserves:

14. 1. Life insurance reserve
2. Unearned premiums reserve
3. Losses reserve

Insurance reserves formed according to the methods of forming insurance reserves,
regulated by Federal Service for Insurance Supervision. Reserves are determined on the
basis of information on the flow of insurance premiums, pay structures and other
indicators of the insurance company.

Insurance reserves structure for the first year (in thousand INR):

Cost item:

Thousand rupees

Life insurance reserve 59337
Unearned premiums reserve
77656
Losses reserve 156976
TOTAL: 293969


12-Month Profit and Loss Projection

Based on the realistic sales projections and conservative forecasts, XYZ Insurance
Company will achieve profitability in the second year of operation. Monthly profitability
is first achieved in the next year, but due to reserve fund’s accumulation and developing
a customer base, the first year of operations reflect a loss.



Three-Year Profit Projection

After the second year of operation, the reserve fund will increase on 10% and reach 324
million Rupees. The amount of insurance payments is assumed to be 150 million Rupees
‐1600
‐1400
‐1200
‐1000
‐800
‐600
‐400
‐200
0
Month
1
Month
2
Month
3
Month
4
Month
5
Month
6
Month
7
Month
8
Month
9
Month
10
Month
11
Month
12
‐500‐500‐500‐500‐500‐500‐500‐500‐500‐500‐500
‐1600
Net Profit Monthly, 
Thousand INR
Series 1

15. Net profit will reach 104 million Rupees. In the second year of operation, the reserve fund
will increase on 11% and reach 360 million Rupees. The amount of insurance payments is
assumed to be 165 million Rupees Net profit will reach 104 million Rupees.










‐20000
0
20000
40000
60000
80000
100000
120000
140000
Year 1Year  2Year  3
Net Profit Yearly, 
Thousand INR
Year 1Year 2Year 3
0
50000
100000
150000
200000
250000
300000
350000
400000
Year 1Year  2Year  3
Reserve Funds Yearly
Thousand INR
Life insurance reserve Unearned premiums reserve Losses reserve

17. Projected Cash Flow

Start-up costs come to 69 million Rupees of which 62 million Rupees are Authorized capital
which will be on 90% financed by JSC “XYZ Corporation” and on 10% by the XYZ Insurance
Company top managers. 7 million Rupees will be borrowed from bank.







‐2000
‐1000
0
1000
2000
3000
4000
5000
6000
7000
Month
1
Month
2
Month
3
Month
4
Month
5
Month
6
Month
7
Month
8
Month
9
Month
10
Month
11
Month
12
Chart Title
Net Cash Flow, thousand INR Cash Balance, thousand INR

18. Balance Sheet for the first year

19. Appendix




Personnel Plan

  Jan Feb MarAprMay Jun JulAug Sep Oct Nov Dec
Name or Title or
Group
0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Name or Title or
Group
0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Name or Title or
Group
0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 0 0 0 0 0 0 0 0 0 0 0 0
Total Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0




Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sales $54,000 $28,500 $44,500 $45,000 $57,000 $65,000 $67,000 $65,000 $70,000 $80,000 $55,000 $46,600
Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Gross Margin $54,000 $28,500 $44,500 $45,000 $57,000 $65,000 $67,000 $65,000 $70,000 $80,000 $55,000 $46,600
Gross Margin % 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Expenses
           
Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Marketing/Promotion $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Payroll Taxes $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Profit Before Interest and
Taxes
$54,000 $28,500 $44,500 $45,000 $57,000 $65,000 $67,000 $65,000 $70,000 $80,000 $55,000 $46,600
EBITDA $54,000 $28,500 $44,500 $45,000 $57,000 $65,000 $67,000 $65,000 $70,000 $80,000 $55,000 $46,600
Interest Expense $3,767 $3,767 $3,767 $3,767 $3,767 $3,767 $3,767 $3,767 $3,767 $3,767 $3,767 $3,767
Taxes Incurred $15,070 $7,420 $12,220 $12,370 $15,970 $18,370 $18,970 $18,370 $19,870 $22,870 $15,370 $12,850
Net Profit $35,163 $17,313 $28,513 $28,863 $37,263 $42,863 $44,263 $42,863 $46,363 $53,363 $35,863 $29,983
Net Profit/Sales 65.12% 60.75% 64.07% 64.14% 65.37% 65.94% 66.06% 65.94% 66.23% 66.70% 65.21% 64.34%




Pro Forma Cash Flow

 
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash Received
      
Cash from Operations
         
Cash Sales $13,500 $7,125 $11,125 $11,250 $14,250 $16,250 $16,750 $16,250 $17,500 $20,000 $13,750 $11,650
Cash from Receivables $127,970 $129,320 $39,863 $21,775 $33,388 $34,050 $42,950 $48,800 $50,200 $48,875 $52,750 $59,375
Subtotal Cash from
Operations
$141,470 $136,445 $50,988 $33,025 $47,638 $50,300 $59,700 $65,050 $67,700 $68,875 $66,500 $71,025
Additional Cash Received
         
Sales Tax, VAT, HST/GST
Received
0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales Forecast
 
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
       
Sales 0% $54,000 $28,500 $44,500 $45,000 $57,000 $65,000 $67,000 $65,000 $70,000 $80,000 $55,000 $46,600
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $54,000 $28,500 $44,500 $45,000 $57,000 $65,000 $67,000 $65,000 $70,000 $80,000 $55,000 $46,600
Direct Cost
of Sales
Jan Feb Ma r Ap r May Jun Jul Aug Sep Oct Nov Dec
Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal
Direct Cost
of Sales
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

20. New Other Liabilities
(interest-free)
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current
Assets
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $141,470 $136,445 $50,988 $33,025 $47,638 $50,300 $59,700 $65,050 $67,700 $68,875 $66,500 $71,025
Expenditures Jan Feb Ma r Apr May Jun Jul Aug Sep Oct Nov Dec
Expenditures from
Operations

         
Cash Spending $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Bill Payments $336,628 $18,582 $11,347 $15,992 $16,257 $19,817 $22,157 $22,717 $22,187 $23,737 $26,387 $19,053
Subtotal Spent on
Operations
$336,628 $18,582 $11,347 $15,992 $16,257 $19,817 $22,157 $22,717 $22,187 $23,737 $26,387 $19,053
Additional Cash Spent
         
Sales Tax, VAT, HST/GST
Paid Out
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of
Current Borrowing
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal
Repayment
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities
Principal Repayment
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current
Assets
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term
Assets
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $336,628 $18,582 $11,347 $15,992 $16,257 $19,817 $22,157 $22,717 $22,187 $23,737 $26,387 $19,053
Net Cash Flow ($195,158) $117,863 $39,641 $17,033 $31,381 $30,483 $37,543 $42,333 $45,513 $45,138 $40,113 $51,972
Cash Balance $207,482 $325,345 $364,986 $382,019 $413,400 $443,883 $481,426 $523,759 $569,272 $614,410 $654,523 $706,495



Pro Forma Balance Sheet

 
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets Starting
Balances

     
Current
Assets

         
Cash $402,640 $207,482 $325,345 $364,986 $382,019 $413,400 $443,883 $481,426 $523,759 $569,272 $614,410 $654,523 $706,495
Accounts
Receivable
$255,940 $168,470 $60,525 $54,038 $66,013 $75,375 $90,075 $97,375 $97,325 $99,625 $110,750 $99,250 $74,825
Other
Current
Assets
$309,137 $309,137 $309,137 $309,137 $309,137 $309,137 $309,137 $309,137 $309,137 $309,137 $309,137 $309,137 $309,137
Total Current
Assets
$967,717 $685,089 $695,007 $728,160 $757,168 $797,912 $843,095 $887,938 $930,221 $978,034 $1,034,297 $1,062,910 $1,090,457
Long-term
Assets

      
Long-term
Assets
$465,575 $465,575 $465,575 $465,575 $465,575 $465,575 $465,575 $465,575 $465,575 $465,575 $465,575 $465,575 $465,575
Accumulated
Depreciation
$181,651 $181,651 $181,651 $181,651 $181,651 $181,651 $181,651 $181,651 $181,651 $181,651 $181,651 $181,651 $181,651
Total Long-
term Assets
$283,924 $283,924 $283,924 $283,924 $283,924 $283,924 $283,924 $283,924 $283,924 $283,924 $283,924 $283,924 $283,924
Total Assets $1,251,641 $969,013 $978,931 $1,012,084 $1,041,092 $1,081,836 $1,127,019 $1,171,862 $1,214,145 $1,261,958 $1,318,221 $1,346,834 $1,37 4,381
Liabilities and
Capital
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Current
Liabilities

      
Accounts
Payable
$336,000 $18,209 $10,814 $15,454 $15,599 $19,079 $21,399 $21,979 $21,399 $22,849 $25,749 $18,499 $16,063
Current
Borrowing
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other
Current
Liabilities
$100,362 $100,362 $100,362 $100,362 $100,362 $100,362 $100,362 $100,362 $100,362 $100,362 $100,362 $100,362 $100,362
Subtotal
Current
Liabilities
$436,362 $118,571 $111,176 $115,816 $115,961 $119,441 $121,761 $122,341 $121,761 $123,211 $126,111 $118,861 $116,425
Long-term
Liabilities
$452,036 $452,036 $452,036 $452,036 $452,036 $452,036 $452,036 $452,036 $452,036 $452,036 $452,036 $452,036 $452,036
Total
Liabilities
$888,398 $570,607 $563,212 $567,852 $567,997 $571,477 $573,797 $574,377 $573,797 $575,247 $578,147 $570,897 $568,461
Paid-in
Capital
$100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Retained
Earnings
$88,096 $363,143 $363,143 $363,143 $363,143 $363,143 $363,143 $363,143 $363,143 $363,143 $363,143 $363,143 $363,143
Earnings $275,047 $35,163 $52,476 $80,989 $109,852 $147,116 $189,979 $234,242 $277,105 $323,468 $376,831 $412,694 $442,677
Total Capital $363,243 $398,406 $415,719 $444,232 $473,095 $510,359 $553,222 $597,485 $640,348 $686,711 $740,074 $775,937 $805,920
Total
Liabilities and
Capital
$1,251,641 $969,013 $978,931 $1,012,084 $1,041,092 $1,081,836 $1,127,019 $1,171,862 $1,214,145 $1,261,958 $1,318,221 $1,346,834 $1,374,381
Net Worth $363,243 $398,406 $415,719 $444,232 $473,095 $510,359 $553,222 $597,485 $640,348 $686,711 $740,074 $775,937 $805,92

21. Reference


Volume: 2 | Issue: 2 | November 2012 | ISSN - 2249-555X Life Assurance Industry
in India: A Study on Marketing Strategies of Indian Insurance Companies

Chapter IV: Reform Process of Insurance Sector in India

http://www.bplans.com/insurance_company_business_plan