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.
Chart Title
4
3.5
3
2.5
2
1.5
1
0.5
0
Year 1
Yearly net profit, thousand rupees
Year 2
Gross margin, thousand rupees
Year 3
Reserves, 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-stock 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
Fixed assets
Intangible assets
Current assets
Funds and their equivalents
Total assets
Total: commitment, taking into account the minority
interest
Total: loans and credits, including short-term
3 344 315
2 526 253
811 887
4 186 927
402 043
7 531 242
4 672 229
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
Brochures
Business cards
1
200
1000
40000
11
2
40000
2200
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 m2. 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
1
2
3
4
5
6
7
CEO
CAO
CFO
Office Manager
Marketing Manager
Sales Manager
Assistant Manager
Total :
Bonuses
TOTAL :
Chief
Chief
Chief
Employee
Employee
Employee
Specialist
1
1
1
2
1
1
2
9
30% of Annual Payroll
Monthly wages
in INR
45000
40000
40000
25000
20000
20000
15000
205000
Annual Payroll
(INR)
540000
480000
480000
600000
240000
240000
360000
2940000
882000
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
Dell Laptops
HP Printer
Lighting system
Office furniture
Canteen furniture
50 000
55600
11 550
20 000
20 000
80 000
Total :
4
5
8
10
10
10
2
6
1
1
7
1
25 000
66 720
1 443
2 000
14 000
8 000
117 163
Risk assessment
Risk assessment in insurance activity
Risk factor
Probability
Time loss
(persondays)
Expected
damage,
INR
Damage,
taking into
account the
probability INR
Actions to reduce
damage
Natural disasters
25%
40
44000
11000
Armed conflicts
Failure of conditions
of contacts by
contactors
Strikes
20%
15%
80
15
88000
16500
17600
2475
Creation of
equalization payments
Expansion of services
Penalties in contracts
with contractors
10%
100
110000
11000
Insufficient
information to form a
business plan
Changing the tax
code
TOTAL
15%
180
198000
29700
15%
100
110000
16500
100%
88275
Penalties in contracts
with supporting firms
Informational system
improvement
Creation of
equalization payments

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
1
Industry risks:

supply and demand
fluctuations;

sales and profit decline;

competitors' positions'
strengthen;
2
3
Country and regional risks
Financial risks:

currency risks;

changing of interest
rate;

inflation;

timeliness of consumers’
payments;
Legal risks:

imperfection of Russian
legal system;

imperfection of judicial
remedies;

unreasonable actions
of state institutions;
4
5
Expected
physical
damage,
thousand INR
Expected
damage,
thousand INR
Damage,
taking into
account
the
probability
and
insurance
rates,
thousand
INR
Property risks
7
Time loss
(persondays)
Production risks

spoilage;

production breaks;
6
Insurance
rates
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
77656
Unearned premiums reserve
156976
293969
Losses reserve
TOTAL:
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.
Net Profit Monthly,
Thousand INR
0
‐200
Month Month Month Month Month Month Month Month Month Month Month Month
1
2
3
4
5
6
7
8
9
10
11
12
‐400
‐600
‐500
‐500
‐500
‐500
‐500
‐500
‐500
‐500
‐500
‐500
‐500
‐800
‐1000
‐1200
‐1400
‐1600
‐1600
Series 1
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

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.
Net Profit Yearly,
Thousand INR
140000
120000
100000
80000
60000
40000
20000
0
‐20000
Year 1
Year 2
Year 1
Year 2
Year 3
Year 3
Reserve Funds Yearly
Thousand INR
400000
350000
300000
250000
200000
150000
100000
50000
0
Year 1
Life insurance reserve
Year 2
Unearned premiums reserve
Year 3
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.
Chart Title
7000
6000
5000
4000
3000
2000
1000
0
‐1000
Month Month Month Month Month Month Month Month Month Month Month Month
1
2
3
4
5
6
7
8
9
10
11
12
‐2000
Net Cash Flow, thousand INR
Cash Balance, thousand INR

18. Balance Sheet for the first year

19. Appendix
Sales Forecast
Jan
Sales
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Sales
0%
$54,000
$28,500
$44,500
$45,000
$57,000
$65,000
$67,000
$65,000
$70,000
$80,000
$55,000
Other
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
Direct Cost
of Sales
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
$46,600
$0
$46,600
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
Personnel Plan
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
0%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
0%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
0%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
0
$0
0
$0
0
$0
0
$0
0
$0
0
$0
0
$0
0
$0
0
$0
0
$0
0
$0
0
$0
Name or Title or
Group
Name or Title or
Group
Name or Title or
Group
Total People
Total Payroll
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Sales
Direct Cost of Sales
$54,000
$0
$28,500
$0
$44,500
$0
$45,000
$0
$57,000
$0
$65,000
$0
$65,000
$0
$70,000
$0
$80,000
$0
$55,000
$0
$46,600
$0
Other Costs of Sales
Total Cost of Sales
Gross Margin
Gross Margin %
Expenses
$0
$0
$54,000
100.00%
$0
$0
$28,500
100.00%
$0
$0
$44,500
100.00%
$0
$0
$45,000
100.00%
$0
$0
$57,000
100.00%
$0
$0
$65,000
100.00%
$67,000
$0
$0
$0
$67,000
100.00%
$0
$0
$65,000
100.00%
$0
$0
$70,000
100.00%
$0
$0
$80,000
100.00%
$0
$0
$55,000
100.00%
$0
$0
$46,600
100.00%
Payroll
Marketing/Promotion
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$65,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$67,000
$0
$0
$0
$0
$0
$0
$0
$65,000
$0
$0
$0
$0
$0
$0
$0
$70,000
$0
$0
$0
$0
$0
$0
$0
$80,000
$0
$0
$0
$0
$0
$0
$0
$55,000
$0
$0
$0
$0
$0
$0
$0
$46,600
$65,000
$3,767
$18,370
$42,863
65.94%
$67,000
$3,767
$18,970
$44,263
66.06%
$65,000
$3,767
$18,370
$42,863
65.94%
$70,000
$3,767
$19,870
$46,363
66.23%
$80,000
$3,767
$22,870
$53,363
66.70%
$55,000
$3,767
$15,370
$35,863
65.21%
$46,600
$3,767
$12,850
$29,983
64.34%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Other
Total Operating Expenses
Profit Before Interest and
Taxes
$0
$0
$0
$0
$0
$0
$0
$54,000
$0
$0
$0
$0
$0
$0
$0
$28,500
$0
$0
$0
$0
$0
$0
$0
$44,500
$0
$0
$0
$0
$0
$0
$0
$45,000
$0
$0
$0
$0
$0
$0
$0
$57,000
EBITDA
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales
$54,000
$3,767
$15,070
$35,163
65.12%
$28,500
$3,767
$7,420
$17,313
60.75%
$44,500
$3,767
$12,220
$28,513
64.07%
$45,000
$3,767
$12,370
$28,863
64.14%
$57,000
$3,767
$15,970
$37,263
65.37%
Pro Forma Cash Flow
Jan
Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from
Operations
Additional Cash Received
Sales Tax, VAT, HST/GST
Received
New Current Borrowing
$13,500
$127,970
$141,470
0.00%
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
$7,125
$129,320
$136,445
Oct
$11,125
$39,863
$50,988
$11,250
$21,775
$33,025
$14,250
$33,388
$47,638
$16,250
$34,050
$50,300
$16,750
$42,950
$59,700
$16,250
$48,800
$65,050
$17,500
$50,200
$67,700
Nov
Dec
$20,000
$48,875
$68,875
$13,750
$52,750
$66,500
$11,650
$59,375
$71,025
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0

20. New Other Liabilities
(interest-free)
New Long-term Liabilities
Sales of Other Current
Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from
Operations
Cash Spending
Bill Payments
Subtotal Spent on
Operations
Additional Cash Spent
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$141,470
Jan
$0
$0
$136,445
Feb
$0
$0
$50,988
Mar
$0
$0
$33,025
Apr
$0
$0
$47,638
May
$0
$0
$50,300
Jun
$0
$0
$59,700
Jul
$0
$0
$65,050
Aug
$0
$0
$67,700
Sep
$0
$0
$68,875
Oct
$0
$0
$66,500
Nov
$0
$0
$71,025
Dec
$0
$11,347
$11,347
$0
$15,992
$15,992
$0
$16,257
$16,257
$0
$19,817
$19,817
$0
$22,157
$22,157
$0
$22,717
$22,717
$0
$22,187
$22,187
$0
$26,387
$26,387
$0
$19,053
$19,053
$0
$0
$336,628
$336,628
Sales Tax, VAT, HST/GST
Paid Out
Principal Repayment of
Current Borrowing
Other Liabilities Principal
Repayment
Long-term Liabilities
Principal Repayment
Purchase Other Current
Assets
Purchase Long-term
Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance
$0
$18,582
$18,582
$0
$23,737
$23,737
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$336,628
($195,158)
$207,482
$0
$18,582
$117,863
$325,345
$0
$11,347
$39,641
$364,986
$0
$15,992
$17,033
$382,019
$0
$16,257
$31,381
$413,400
$0
$19,817
$30,483
$443,883
$0
$22,157
$37,543
$481,426
$0
$22,717
$42,333
$523,759
$0
$22,187
$45,513
$569,272
$0
$23,737
$45,138
$614,410
$0
$26,387
$40,113
$654,523
$0
$19,053
$51,972
$706,495
Pro Forma Balance Sheet
Jan
Assets
Starting
Balances
Current
Assets
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
$706,495
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
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
Total 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
$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 Longterm 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
$1,374,381
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Liabilities and
Capital
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
Subtotal
Current
Liabilities
Long-term
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
$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
$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
$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
$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
$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
Paid-in
Capital
Total
Liabilities and
Capital
Net Worth

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