chapter 2 full of

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chapter-2

Aviva India is a joint venture between one of the

countrys oldest and largest groups, Dabur, and Aviva

Group, one of the UK's largest insurance group, whose

association with India dates back to 1834.

Our vision is to be amongst Indias leading life

insurers with a quality business model, focused on

sustainable growth. We seek to build a robust product

portfolio meeting all customer lifecycle needs related

to Protection, Retirement, Savings and Investments.

With a strong sales force of over 20,000 Financial

Planning Advisers (FPAs), we have initiated and

pioneered many innovative sales approaches,

including the concept of Bancassurance and Financial

Health Check services. We are among the first

companies to introduce the contemporary unit-linked

products.

A seasoned team of fund managers make our fund

management one of the key differentiators. With a

wide distribution network of 140 branches and strong


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Bancassurance partnerships, we are spread across

nearly 3,000 towns and cities in India.

Keeping with our commitment of social responsibility,

we have been successful in reaching out to the

underprivileged strata through our Microinsurance

initiatives.

Dabur Group

Founded in 1884, Dabur Group is one of India's oldest

and largest group of companies with a consolidated

annual turnover in excess of Rs 2,834 crores. A

professionally managed company, it is the country's

leading producer of traditional healthcare products.

Corporate website: http://www.dabur.com

parteners of aviva

Royal Bank of Scotland Group

In 300 years, The Royal Bank of Scotland Group has

grown to become one of the largest financial services

groups in the world. They operate around the globe to

provide banking services for individuals, businesses
http://www.dabur.com/http://www.dabur.com/


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and institutions.

RBS offers a broad range of transaction banking, fixedincome and foreign exchange products and services,

including sales and trading, fixed income origination,

derivatives, structured lending and commodity

financing.

Additionally, they provide a diverse range of product

offerings including personal loans, credit cards,

savings accounts, financial planning, investment and

insurance services, to meet the everyday financial

needs of over a million Personal Banking clients in

India.

Aviva's relationship with RBS commenced in June2002 when the bank was known as ABN AMRO.The

Bank introduces its customers to Aviva for insurance

and provides access to its affluent customer base

across the country through its operations in 31

branches at 22 locations.

Visit the RBS websitewww.rbs.in

Punjab & Sind Bank


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The Punjab & Sind Bank was established in the year

1908. Based on the principles of social commitment to

the people, to help the farmers, and the weaker

sections of the society to raise their standard of livingand play a significant role in the development of the

country. Even after 100 years of its inception, the

Punjab & Sind Bank stands committed to honour the

high ideals of its founding fathers. Punjab and Sind

Bank has a network of 915 branches spread all over

the country with close to 9400 employees. Fifty one

per cent of its branches are in the rural and semi-

urban areas.

Aviva signed Corporate Agency Agreement with PSB in

September 2004 under which the bank deployed its

Insurance Officers (SPs) to sell the Life Insurance

products to its customers through vast network of

branches spread over 175 Districts ,25 States and

Union Territory of Chandigarh.

Visit the Punjab & Sind Bank websitewww.psbindia.com

IndusInd BankIndusInd Bank Ltd., is one of the leading new-generation private-sector banks in India. Itcommenced operations in 1994 and had a net worthof Rs.866 crore as of March 31, 2006. At present, theBank has a network of 148 branches and 87 offsite
http://www.psbindia.com/http://www.psbindia.com/


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ATMs spread over 118 geographical locations in 24states and Union Territories.

Visit the IndusInd Bank Ltd. website

www.indusind.com

DBSDBS is one of the largest financial services groups inAsia with operations in 16 markets. Headquartered inSingapore, DBS is a well-capitalised bank with "AA-"and "Aa1" credit ratings that are among the highest inthe Asia-Pacific region.

Headquartered in the commercial capital of Mumbai,DBS operates via a network of 12 bank branchesacross India in Bengaluru, Chennai, Cuddalore,Kolkata, Kolhapur, Moradabad, Mumbai, Nashik, NewDelhi, Pune, Salem and Surat. DBS was recentlyacknowledged as "India's Best Small Bank" andIndia's Fastest Growing Small Bank (Business Today

- KPMG Survey India's Best Banks 2009) and is therecipient of the "Rising Star Cash Management BankAward" (The Asset AAA transaction Banking Awards2009)

A reputed name in the wholesale banking domain,DBS provides a wide range of corporate andinvestment banking services, including corporate

lending, treasury services, transaction services andmergers and acquisitions (M&A) advisory services tocorporates, financial institutions and small and mid-tier clients across industries and segments.
http://www.indusind.com/http://www.indusind.com/


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Aviva GroupAviva is a leading provider of life and pensionproducts in Europe (including the UK) with substantialpositions in other markets around the world, making it

the worlds sixth largest insurance group based ongross worldwide premiums at 31 December 2009.Avivas principal business activities are long-termsavings, fund management and general insurance,with worldwide total sales* of 47.1 billion and fundsunder management of 402 billion at 31 December,2010.

With a history dating back to 1696, Aviva Group has a44.5 million customer base worldwide.

Corporate website: http://www.aviva.com

fact sheet

JV partner: Dabur (74% stake)

Foreign partner: Aviva plc (26% stake). The world's

6th largest Insurance groups and the biggest in theUK. It is one of the leading providers of life and

pensions products to Europe. Aviva has a 44.5 million-

customer base worldwide with 402 billion assets

under management at 31 December 2010.
http://www.aviva.com/http://www.aviva.com/


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Managing Director & Chief Executive Officer: Mr. TR

Ramachandran

Paid up Capital: Rs 2004 crores

Locations: 159 branches, close to 3,000 locations

Bank partners: RBS, Punjab & Sind Bank, IndusInd

Bank and more than 30 Cooperative Banks and

Regional Rural Banks

awards and recgnition

We believe that our employees are our greatest

strength and the only asset that can be replicated. It

is the passion of our people which continues to help us

achieve the 'impossible' and make Aviva India great

place to work.

Aviva India has received the 6th Indys awards for

the Street to School programme. As a part of the

Street to School programme, Aviva India has impacted

the lives of millions of children in projects supported

by NGO partners- CRY and Save the Children, and

through the Aviva Great Wall of Education. Aviva India

has won the award for the category Community and

Social Welfare.

Aviva Great Wall of Education has been recognized


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yet again for the outstanding work that it has been

doing towards the education of underprivileged

children. The Bookwall won a Silver at Effies 2011

( Effective Advertising Awards) where it collectedmore than 9,50,000 books impacting the lives of close

to 500,000 children across the country. This is the

second consecutive time that the mega book donation

drive has won an Effies- one of the top award

platforms for the advertising community in India and

worldwide.

Aviva India won a Bronze at the Effies 2010 for theAviva Great Wall of Education, part of Aviva's Street to

School Program. The Effies are among the top award

platforms for the advertising community in India and

worldwide. Aviva Great Wall of Education was

awarded this elite recognition for the marketing

effectiveness displayed during this campaign.

Aviva India has won a Gold at the SPIKES Asia

Awards, 2010 for the 'Aviva Great Wall of Education'

which is part of the Street to School programme. The

SPIKES Awards is one the most prestigious awards for

creative advertising across the Asia Pacific region.

Aviva Great Wall of Education was awarded this elite

recognition for the category- 'Best use of Ambient

Media'.

Aviva India has won the "Corporate Social

Responsibility Award" at the prestigious Asia

Insurance Industry Awards 2010 for its corporate

social responsibility programme 'Street to School' for


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demonstrating how corporate social responsibility can

be closely and successfully tied with business

strategy.

Aviva Life Insurance India was selected from anumber of high profile companies competing for the

honour of receiving the award.

Aviva India has won two major awards, at the CMO

Asia Awards held in Singapore Excellence in

Branding and Marketing in Banking and Financial

services, and Social Marketing. Aviva India was

selected for the two prestigious awards from among

more than 200 nominations from across Asia.

Aviva has been felicitated with the "Bronze Award

for Excellence in People Management" by Grow Talent

Company Limited and Businessworld. This honour was

given based on our ranking amonst the top 25

companies as per the Grate Place to Work survery inthe last four years.

Aviva was ranked 4th in the Best Workplaces in

India study for the year 2008 by the Great Place to

Work Institute. We were the only Insurance company

in the top 10 ranking that year.

Aviva India won the coveted Award for TalentManagement during the national round of Asia Pacific

HRM Congress

Aviva India was also felicitated by the HR

Excellence Award by Amity Business School


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Useful Links

Office Locator

Premium Payment

Fund Performance

Customer Services

corporate responsibility

At Aviva we believe Education is Insurance. There is

no greater education than insurance in the world than

a good education. It is an investment that never

depreciates. An Investment that yields guaranteed

returns and can never be taken away.

We see education as a tool that empowers individuals.

But above all else, we see education as the right of

every child. The right to a strong foundation that


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enables them to escape the vicious circle of

ignorance, disease and poverty.

It is our belief in the power of education that has

fueled our endeavors to guarantee it, most

importantly to those who cannot afford it. Through our

Corporate Responsibility initiatives we wish to

empower as many children as we can.

Corporate Responsibility is deeply embedded in the

culture at Aviva and reflects our social conscience and

commitment to the society. At Aviva, we strongly

believe in proactively promoting public interest by

behaving ethically and contributing to the economic

growth and welfare of the society we live in.

Making a difference

Some of our ongoing projects supporting education for

underprivileged children are:

CRY

Save the Children

Arpana Trust


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Aviva Street to School Recognizing

Education is Insurance

Education is pivotal to human progress. It is the main

tool that empowers individuals to make informed

choices. Every child has the right to basic education

so that their future is built on a strong foundation;

enabling them to free themselves from the vicious

circle of ignorance, poverty and disease.

At Aviva, we recognize that education is insurance for

a better future. In line with this thought, Aviva Street

to School, our new, international charity partnership

programme, aims to improve the lives of thousands of

street children and young people around the world by

helping them off the streets and into education and

training.

Children living and working on the streets is a global

issue. Aviva Street to School is about recognising that

Education is Insurance not only doing the right

thing, but also standing by our brand promise and

improving the lives of young people and helping themdevelop their full potential.

In India, we have partnered with CRY (Child Rights


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and You) and Save the Children to facilitate

education (including other related factors that could

prevent a child from attending school) ) for

underprivileged children. Globally, our mission is toreach out to close to 500,000 children through our

Street to School projects in several countries.

We seek to better the lives of underprivileged children

and thereby contribute towards building a brighter

future for the country.

Aviva Great Wall of

Education

Aviva India collects around 9,50,000 books for

underprivileged children

Aviva Great Wall of Education, launched last year as a

part of the Street to School programme has collected

around 9,50,000 books for underprivileged children

this year.


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The Aviva Great Wall of Education is a mega book

donation drive, launched in Delhi last year, where

people donate books for underprivileged children

supported by our partner NGOs. This year, thebookwall expanded its footprint to three more cities,

and managed to collect around 9,50,000 books to help

thousands of underprivileged children, supported by

our partner NGOs -Save the Children, Sarva Shiksha

Abhiyan (government of West Bengal), Sarva Shiksha

Abhiyan (government of Tamil Nadu), Sarva Shiksha

Abhiyan (government of Maharashtra), CINI Asha,

Vidyarambam and Khushii, come closer to education.

The journey of the Aviva Great Wall of Education

began this year in Kolkata on September 1st. From

there, it moved to Chennai on September 5th, then

Delhi on November 11 and finally made a stop at

Mumbai on December 2nd. Not only did the bookwall

collect a large number of books from these cities, but

touched the hearts of people wherever it went. While

the people of Kolkata donated 4,50,000 books for

underprivileged children, the people of Chennai came

forward to donate 2,52,000 books. People from Delhi

also contributed to the cause by donating 1,36,000

books higher from the previous years figures, andMumbai added 1,11,506 books to the bookwall.

Schoolchildren participated in large numbers in the


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drive through drop boxes placed in around 200

schools in each city. Drop boxes were also placed in

corporates and residential apartments. Many

individuals also come forward and donated books forthe underprivileged children. Those, who did not have

relevant books to donate brought books from our

Book Store partners Starmark and Landmark, at the

venue.

The Aviva Great Wall of Education not only had the

support of the people, but was also supported by the

government agencies, celebrities and Aviva

employees.

Several eminent people came to donate books and

support the noble cause of moving children from

street to school. Some of them were: MK Naraynan,Governor of West Bengal, actors like Mithun

Chakraborty, Kamal Hassan, Deepika Padukone,

Amrita Rao, cricketers like Kris Srikkant, musicians

Sivamani, Shibani Kashyap and Kamal Sabri, and

renowned authors like Advaita Kala, Anuja Chauhan

and Meenakshi Madhavan Reddy.

Aviva employees also participated in large numbers,

donating close to 40,000 books to the bookwall in all

four cities.


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This year, we partnered with the leading publications

in each city Telegraph in Kolkata, Hindu in Chennai

and Hindustan Times in Delhi and Mumbai.

We received a phenomenal response on the digitalarena, with more than 38257 followers on Facebook,26,617 unique visits to the www.educationisinsurancemicrosite, 26 story driven posts on blogs, which had1779 page views, 196 tweets and 980 followers.

The Aviva Great Wall of Education showcased thatAviva, as a brand is Human to customers, is Pride ofemployees, and is known to Doing things differentlyto influencers. It has also won several awards thisyear both externally and internally. Aviva India wonthe CMO Asia Award for Excellence in SocialMarketing for its exemplary work towards education

of the underprivileged children through its initiative -Aviva Great Wall of Education under the Street toSchool programme. Aviva India also won theCorporate Social Responsibility Award at the AsiaInsurance Industry Awards 2010 for Street to School,for demonstrating how corporate social responsibilitycan be closely and successfully tied with businessstrategy. The Spikes Asia Awards 2010 appreciated

the work done by Aviva India and BBDO India in thefield and rewarded its efforts with a Gold. Aviva Indiawas awarded a bronze Effie in the Financial ServicesCategory for the Aviva Great Wall of Education.Internally, we received the Global CR award at the CRSummit in Turkey.
http://www.educationisinsurance/http://www.educationisinsurance/


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the different products provided by aviva

life insurance are -

1)aviva young scholar plan-childeducation plan-

Aviva Young Scholar Advantage is a comprehensive

plan that enables you to secure your childs future in

any eventuality through:

All future premiums being waived off and invested

as a lump sum amount in to the funds, so the policy

continues even in the unfortunate event of the

parents death while the Life Cover (Sum Assured) is

paid out immediately. These benefits are also

applicable upon disability or critical illness if the

Comprehensive Health Benefit (CHB) Rider is opted

Provision of a regular income for the minor child, in

the event of parents death if Aviva Child Education

(CE) Rider is opted for

An additional lumpsum being paid in the event of

parents death if Aviva Term Plus Rider is opted

Loyalty Additions to enhance your Fund ValueA choice of 9 fund options; Investment flexibility

through Automatic Asset Allocation (AAA) and

Systematic Transfer Plan (STP)

The product will be offered only to those who have


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atleast one child

savings-

a)aviva dhan vriddhi-

Aviva Dhan Vriddhi is a traditional money back plan

that provides you a guaranteed amount of money at

regular intervals along with protection through the

Life Cover (Sum Assured), in the event of death

Guaranteed returns: Guaranteed Additions @7% of

Life Cover for each completed policy year till maturity

Limited premium payment: Premiums are not

required to be paid during the last five years of the

policy

Additional protection: You can opt from 5 riders toenhance protection with the benefits ranging from

additional Sum Assured for the incident covered,

waiver of future premiums and also a regular income

for your beneficiary in case you are not around

Rebate for high Sum Assured: Rebate on basic

premium is allowed if your Sum Assured is Rs. 1 Lac or

higher

aviva money back policiy-

Aviva Money Back Policy is a


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comprehensive policy that allows you

to accumulate savings along with

valuable life cover protection through:

A percentage of the Life Cover is

paid out, depending on the policy

term, at the end of pre-defined years

Guaranteed Additions and Simple

Reversionary Bonuses

Specifications

Policy term: 12, 15, 18 or 21years

Premium Payment Frequency:

Annually, Half yearly, Quarterly or

MonthlyAnnual Premium: Minimum Rs

5000; Maximum- depends on Sum

Assured (Service tax will be payable


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over & above the applicable premiums

as per the tax laws)

Riders Available: AccidentalDeath Benefit rider (ADB)

Eligibility:

Maximum age at maturity is 70

years for all terms.

aviva life shieldadvantage

Aviva LifeShield Advantage provides

comprehensive protection for your family

incase you are not around. Additionally, all the

money paid as premium will be returned to youon survival at the end of the Policy Term

through:


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Payment of Life Cover (Sum Assured) to your

family in the event of your death (Option A)

Additional protection against Accidental

Permanent Total Disability (Option B)

Return of the money paid towards the base

premium on your survival at the end of the

policy term

Additional protection against Permanent

Total Disability (PTD) and 18 Critical Illnesscovered by the Aviva Dread Disease (DD) Rider

(available with Option A regular premium

mode)

A rebate on your premium for higher levels

of Sum Assured

Specifications:

Entry age: 18-55 years (Maximum age at

the expiry of the policy is 65 years)

Policy term: 10 years to 30 years

Minimum Sum Assured: Rs 2 lacs

Premium Payment Frequency: Single


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Premium (for Option A); Yearly, Half-Yearly,

Quarterly and Monthly (for both Options)

Riders: Aviva Dread Disease (DD) Rider

(with Option A, Regular Premium)

aviva life shield platinum-

At Aviva we are constantly innovating because

we believe that each one of us is different and

so is our expectation from our life insurance

plan. Presenting Aviva Life Shield PlatinumTM,

a unique protection plan to help you plan for

your family in case you are not around.

Option A Life Protection

Choose this option if you foresee a need for

lump sum payment of large sum of money to

your family in case you are not around. You

can opt for additional health and Accidental

Death Benefit rider. We offer differential rates

for Smokers, Non-smokers and preferred ratesfor (Healthy) Non-smokers.

The special rates for non-smokers is subject to

Cotinine test, which is available in select cities.


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Option B Income Replacement

Choose this option if you want to provide aregular monthly income to your family in your

absence. This amount increases by 5% p.a.

compounded annually from the very first year

of your policy to beat inflation. Your premium

obligation is limited to about 2/3rd of the policy

term.

Option C Loan Protection.

Choose this option to cover for higher financial

liabilities and family responsibilities in the early

years of your life, the Life Cover decreases

evenly across the policy term. Your premium

obligation is limited to about 2/3rd of the policy

term.

This Insurance plan offers rebate on your

premium for higher levels of Sum Assured.

Specifications:


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Entry age : 18-60 years, 55 years with

Aviva Dread Diseases Rider, 50 years with

Accidental Death Benefit Rider

Policy Term : 10 to 52 years, subject to

the maximum maturity age of 70 years

60 years with Accidental Death Benefit

Rider

65 years with Aviva Dread Disease Rider

Premium Payment Term :

Option A equal to Policy Term

Option B & Option C 2/3rd of policy

term, rounded down to nearest integer

e.g. for a 16 years term, paying term will

be 10 years

Premium Payment Frequency: Annualy,

Half-yearly, Quarterly or Monthly

Sum Assured: Minimum Rs 50,00,000,

maximum no limit subject to underwriting

Riders Available (Option A only):Accidental Death Benefit and Aviva Dread

Disease(DD) Rider (offered to non-smokers

only).


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the companies profile for the year-

Year Ended 31 December 2010 20092008 2007 2006

millions Turnover 36274.0 34690.0 36206.0

30991.0 27234.0Operating Profit 3966.0 3892.0 307.0

3368.0 3685.0Net Interest -1422.0 -1519.0 -1547.0

-1217.0 -847.0Profit Before Tax 2834.0 2022.0 -2368.0

1847.0 3323.0Profit After Tax 1892.0 1315.0 -885.0 1498.0

2389.0Total Dividend n/a n/a n/a n/a n/aRetained Profit / Loss n/a n/a n/a n/a n/aBalance Sheet Year Ended 31 December

2010 2009 2008 2007 2006


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millionsIntangible Assets 6197.0 6241.0 7616.0

6279.0 5638.0

Tangible Assets 750.0 753.0 964.0942.0 904.0Fixed Investments 255925.0 241661.0

233243.0 220192.0 207968.0 Total Fixed Assets 319010.0 302156.0

298486.0 280715.0 258207.0Stocks n/a n/a n/a n/a n/aDebtors n/a n/a n/a n/a n/aCash at Bank and in Hand 25455.0

25176.0 23643.0 16089.013117.0

Total Assets 370107.0 354391.0354562.0 321326.0 294851.0

Creditors Amount Within 1 year n/a n/a n/a18060.0 n/a

Creditors Amount After 1 year n/a n/a n/a n/an/a

Total Liabilities 352382.0 339305.0339989.0 305395.0 280787.0

Net Assets 17725.0 15086.0 14573.015931.0 14064.0

Net Current Assets n/a n/a n/a n/a n/a

Called Up Share Capital 705.0 692.0664.0 655.0 841.0Share Premium Account 1194.0 1207.0

1234.0 n/a n/aOther Reserves 5684.0 5232.0 5379.0


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5953.0 5453.0Profit and Loss Account 5411.0 3425.0

3902.0 6338.0 5082.0

Shareholders Funds 12994.0 10556.011179.0 12946.0 11376.0Minority Interests 4731.0 4530.0 3394.0

2985.0 2688.0Key Figures Year Ended 31 December 2010

2009 2008 2007 2006Earnings Per Share Basic (p) 50.40 37.80

-36.80 51.00 87.50Earnings Per Share Diluted (p) 49.60 37.50

-36.80 50.54 86.60Earnings Per Share Adjusted (p) 55.10

45.10 62.90 52.80 87.50Earnings Per Share Growth (%) 22 -28 19 -40

19 Total Dividend (p) 25.50 24.00 33.00

33.00 30.00Operating Margin (%) -49 -61 -30 11 14ROCE (%) 14 12 -3 11 16Dividend Cover 2.16 1.88 1.91

1.60 2.92Dividend Yield 6.50 6.00 8.50 4.90

3.60

Price / Earnings Ratio 7.10 8.80 6.2012.70 9.40Dividend Per Share Growth (%) 6 -27 n/a 10

10In this section...


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