MetLife Alico

Internship Report
1
MetLife Alico
ACKNOWLEDGMENT
In the name of ALLAH, the Most Beneficial and the Merciful. I have completed my
internship in MetLife Insurance Corporation of Pakistan. I am very pleased to have
practical insiht of the professional !orld. My internship proved to "e a very informative
learnin e#perience.
My internship !as consisted on si# !eeks and durin these si# !eeks I !orked in
different departments of the company. I am very much thankful to all of the staff
mem"ers !ho helped me a lot to make my internship a !onderful learnin e#perience.
I am also rateful to my honora"le teacher Mr. $adeem Altaf $asir !ho motivated me to
!ork hard and tauht me the techni%ues to learn from the practical life.

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MetLife Alico
Table of Contents
Introduction------------------------------------------------------------------------------------05
'ypes of Insurance((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((()*
'ypes of Insurance Companies((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((()+
History of Insurance Industry in Pakistan((((((((((((((((((((((((((((((((((((((((((((((((((()+
MetLife Insurance Cororation------------------------------------------------------------0!
,ision -tatements((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((1)
Mission -tatements((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((1)
History(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((11
$ature of .rani/ation((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((1&
Business ,olume(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((10
Product Line((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((11
Or"ani#ational $tructure--------------------------------------------------------------------%&
Main .ffices((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((&)
.rani/ational -tructure((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((&1
'ractical E(erience and Anal)sis--------------------------------------------------------**
2inancial Analysis((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((0)
,ertical Analysis(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((0)
Hori/ontal Analysis((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((01
3atio Analysis((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((0&
Marketin -tratey((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((1*
Ma4or H3 policies(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((15
6epartments((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((1+
M) Interns+i----------------------------------------------------------------------------------5,
6uties((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((*1
Accomplishments((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((*1
Pro"lems 7ncountered((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((*1
Ho! internship e#perience impacts my career((((((((((((((((((((((((((((((((((((((((((((**
-eco..endations----------------------------------------------------------------------------55
Conclusion-------------------------------------------------------------------------------------5/
-eferences 0 $ources used----------------------------------------------------------------5&
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MetLife Alico
List of Tables
1
Table %--------------------------------------------------------------------------------,0
Table *--------------------------------------------------------------------------------,%
Table ,--------------------------------------------------------------------------------,1
Table 1--------------------------------------------------------------------------------,5
Table 5--------------------------------------------------------------------------------,/
Table /--------------------------------------------------------------------------------,&
Table &--------------------------------------------------------------------------------,2
Table 2--------------------------------------------------------------------------------,!
Table !--------------------------------------------------------------------------------10
Table %0-------------------------------------------------------------------------------1%
Table %%-------------------------------------------------------------------------------1*
MetLife Alico
'he story of life insurance is very inspirin. 'he idea aainst uardin of risk is all most
as old as mankind. Centuries ao in 7nland, little roups "anded toether in uild and
societies. Mem"ers of those uilds and societies "y payin small sums !ere assured that
a certain measure of relief !ould "e iven to their families if the "read!inner !ere taken
a!ay. In 1+)*, Amica"le -ociety for a Perpetual Assistance .ffice !as esta"lished and it
"ecame 7nland8s first Life insurance company.
Accordin to the 9.- Life Insurance Association Inc. Life Insurance is defined as:
;Life Insurance provides a sum of money if the person !ho is insured dies !hilst the
policy is in effect.<
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MetLife Alico
;Insurance is a contract "et!een t!o parties !here"y one party called insurer undertakes
in e#chane for a fi#ed amount of money called premium, to pay the other party called
insured a fi#ed amount of money on happenin of an event.<
Insurance is a contract "et!een t!o parties !here"y one party arees to undertake the
risk of another in e#chane for consideration kno!n as premium and promises to pay a
fi#ed amount of money to the other party on happenin of an uncertain period =death> or
after e#piry of a certain period in case of life insurance or to indemnify the other party at
an uncertain event in case of a eneral insurance
T)es of Insurance
Life Insurance
?roup Insurance
?eneral Insurance
Health Insurance
T)es of Insurance Co.anies
'here are t!o types of insurance companies
Life Insurance Co.anies
'he principal event that Life Insurance Company insures aainst is death. 9pon the death
of a policyholder a life insurance company arees to pay a lump sum amount or a series
of installment to the "eneficiary of the policy.
'roert) and Casualt) Insurance Co.anies
Property and Casualty Insurance Companies insure aainst !ide variety of occurrences
such as:
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MetLife Alico
2ire
Atmospheric 6istur"ances
7arth%uake
3iot -trike damaes
7#plosion
'heft
.ther damaes
3istor) of insurance Industr) in 'a4istan
At the time of Independence Pakistan had ++ Insurance companies out of + !ere local
and +) !ere forein resident companies. 'hese companies !ere reulated under the
Insurance Act of 1@0A 'here !as neither reinsurance nor pu"lic sector in that time. 'he
?overnment of Pakistan in 1@1A esta"lished a 6epartment of Insurance under the domain
of Commerce Industry to protect the rihts of Insured. 'his situation remained till
1@*&.In 1@*&B ?overnment of Pakistan esta"lished Pakistan Insurance Corporation as a
reinsurance company and asked all other insurance companies to cede 1)C of all their
"usinesses to Pakistan Insurance Corporation. 2or these reasons and due to some other
factors 1) forein companies !ound up their "usiness and left Pakistan.
$ational Coinsurance scheme !as initiated to promote insurance culture in Pakistan and
to assist small insurance companies in meetin financial re%uirements. Moreover, it
aimed to have checks on the ?overnment e#penditure on insurance and to assist in the
settlement in !hich overnment !as the "eneficiary. 'he formation of $C- yielded
favora"le results In 1@*A ?overnment of Pakistan for the first time amended the
Insurance Act keepin in vie! the re%uirement of the domestic market and to have
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MetLife Alico
effective control over insurance premium rates. 7conomic ro!th in 1@5)s further
promoted the insurance "usiness in Pakistan and the num"er of Pakistani insurance
companies increased to &5 and reached to 1+ "y 1@+1.Ho!ever, num"er of forein
companies decreased from ++ in 1@1+ to &* in 1@+&. In 1@@0, there !ere *+ insurance
companies in private sector and 0 in pu"lic sector.
'he department of Insurance further created the Controller of Insurance for reulatin the
premium rates that !as a"olished in &))) !hen -ecurity and e#chane Commission of
Pakistan =-7CP> made responsi"le for supervisin insurance "usiness in the country.
A
MetLife Alico
Vision Statement
To be most innovate, fnest and socially
responsible insurance company providing
best value to customers, partners,
employees and shareholders
Mission Statement
@
MetLife Alico
To build value for our policyholders, feld
force, employees and shareholders, by
providing quality products and services
through multiple distribution channels for
the Pakistani market and through investing
in Pakistani fnancial institutions, thereby
serving the Pakistani people.
3I$TO-5
MetLife Alico !as esta"lished in 1@*& in Pakistan. It continued its operation until
1@+&, !hen the life insurance industry !as nationali/ed. -ince that time, the
company had issued +&))) policies and had invested more than 9-6 05 million
in country8s economy. After denationali/ation, MetLife Alico "ecame the first
forein life insurer that had "een ranted a license in 1@@1 to operate in Pakistan.
It started the operations on May &*, 1@@* !ith a paid up capital of PD3 10)
million. 'oday it is the larest capitali/ed private sector multinational company in
1)
MetLife Alico
Pakistan !ith a paid up capital of *)) million. MetLife Alico Pakistan is a listed
company 4ointly o!ned "y its American parent and the Pakistan pu"lic. Alon
!ith commitment, it "rins to Pakistan e#tensive international e#perience and
modern technoloy to conduct the insurance "usiness in a sophisticated and
professional manner.
NAT6-E O7 86$INE$$
'he company is a su"sidiary of American Life Insurance Corporation =incorporated in
9nited -tates of America> that holds 55.15C =&))@: 55.15C> of the share capital of the
company. 'he ultimate parent of the company is MetLife Inc.
'he company is enaed in life insurance, carryin on "oth participatin and non(
participatin "usinesses. In accordance !ith the Insurance .rdinance, &))), the company
esta"lished a -hareholder8s 2und and separate statutory funds in respect of each class of
life insurance "usiness. 'he statutory funds esta"lished "y the company, in accordance
!ith the advice of the appointed Actuary are as follo!s:
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MetLife Alico
Life =Participatin>
Life =non(Participatin>EIndividual
Life =non(Participatin>E?roup
Accident FHealth E Individual
AccidentF Health E ?roup
Pension Business 2und
Investment Linked
86$INE$$ 9OL6ME
Business volume of an orani/ation refers to the num"ers of items sold
By company or the num"ers of shares sold on -tock 7#chane.
?limpses of MetLife Business volume are in the follo!in charts:
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MetLife Alico
10
MetLife Alico
'-OD6CT LINE
Indi:idual Life Insurance 'lan
Individual Life Insurance plan includes:
I?P Plus
-hareek(e(-afar
,ision for 3etirement
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MetLife Alico
-uper -aver
6auhter8s Marriae
Collee 7ducation Plan
3etirement
,ision for 7ducation
Accelerated -avin Plan
,ision for Marriae
,ision for 2inancial -ecurity
'ersonal Accident 'lan
Personal accident plans include:
Circle of Protection
-afe 3oad(Car
-afe 3oad(Motor Cycles
My Child
-ecure 0
8anc Assurance 'lan
Banc insurance is the 4oint effort of the "anks and insurance companies to provide
insurance products to "ank customers usin "anks8 distri"ution channels. Banc insurance
!as oriinated from 2rance and no! it has spread all over the !orld includin Pakistan.
Banc assurance not only provides the cost effective distri"ution channels for insurance
companies "ut it also proved to "e very useful for "anks "ecause of follo!in reasons:
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MetLife Alico
Intense competition amon "anks has led to an increased marketin and
administrative costs. $e! Banc Assurance can enhance profita"ility and increase
productivity.
Increased risk free income enerated in the form of commissions.
3eduction of the effects of the "anks fi#ed costs as they are no! spread over Banc
Assurance relationship.
-taff productivity is increased as !ith Banc Assurance they can offer !ider rane
of services to their clients.
Customer8s investment preferences are chanin specially for medium to lon
term there is a trend to!ards mutual funds and insurance products !here the
return is usually hih than the return on traditional deposits productsB Banc
assurance helps "anks meet this chanin need of their customers.
Goin needs("ased "ankin and insurance products can "e "etter for the customers
as they provide more complete solution than traditional "ankin products
Hiher customer turnover is one of the challenes faced "y modern "anks. Buyin
"ankin and insurance products from one source ="anks> helps retainin the
customer.
MetLife Alico Pakistan has esta"lished successful Banc assurance campains !ith
leadin Pakistani and multinational "anks and provided innovative products "est
fittin customers re%uirements.
-ome of the successful Banc assurance products of MetLife include:
-armaya Plus
Income Ma#
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MetLife Alico
Capital -ure
3etire 7asy
2uture -ecure
-avin Plans
Acci-hields
1+
MetLife Alico
MetLife Insurance Corporation is head "y the chairman !ho is Chief 7#ecutive of the
company.
8oard of Directors
Arif -ultan Mufti Chairman and Chief 7#ecutive
Dhalid Anis(ur(3ehman 6irector
-hahid -idd%ui 6irector
Michel Dhalaf 6irector
Murul Islam 6irector
Arif A"dul A/i/ 6irector
Hasim 3a""ani 6irector
Co.an) $ecretar)
Asim Iftikhar
1A
MetLife Alico
Aointed Actuar)
-hoai" -oofi
Audit Co..ittee
Arif A"dul A/i/
Dhalid Anis(ur(3ehman
-hahid -idd%ui
-hahid Hussain
8an4ers
MCB Bank Limited
-tandard Chartered Bank
Hon Don -hanhai Bankin Corporation
$ational Bank of Pakistan Limited
Citi Bank $.A
Ha"i" Bank Limited
$IB Bank Limited
Bank Al(Ha"i" Limited
6eutsche Bank
Barclays Bank
-ummit Bank Limited
Le"al Ad:isor
-urride and Beecheno
Auditor
M. Iousaf Adil -aleem F Co Chartered Accountants mem"er firm of 6eloitte 'ouche
'ohmatsu
1@
MetLife Alico
MAIN O77ICE$
3ead Office

10 2loor 6olmen 7#ecutive 'o!er
Block 1, Clifton, Darachi +*)))
7mail: alicoJcy"er.net.pk
8ranc+ Net;or4
Gu<ran;ala
%= Mr. Dhurram - A!an
Aency 7#ecutive .ffice
2loor 1, ?houri Center
?.' 3oad ?u4ran!ala
2a#: )**(0A10*A0
'elephone: )**(0A10*A1
7mail:ae(khrramJalicopakdist.com
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MetLife Alico
*= Asif Bilal Aency
2loor 1, 'rade Centre
?.' 3oad ?u4ran!ala
'elephone: )**(11111*1
2a#: )**(1111115+
7mail: u4(asifaencyJalicopakdist.com
,= A!ais Ikram Aency
2loor 1, ?houri Centre
?.'. 3oad ?u4ran!ala
'elephone: )**(0A10*A0
2a#: )**(0A10*A*
7mail:u4(a!iasaencyJalicopakdist.com
O-GANI>ATIONAL $T-6CT6-E
&1
MetLife Alico
&&
Distribution 0'roducts
A"enc)
Director
A03
Mana"er
C+ief Mar4etin"
Officer
C+air.an0 C+ief
E(ecuti:e
Co.liance
Officer
Co.an)
$ecretar)
3-
Coordinator
Internal
Auditor
7inancial
Controller
MetLife Alico
&0
MetLife Alico
&1
MetLife Alico
&*
MetLife Alico
&5
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MetLife Alico
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MetLife Alico
7INANCIAL ANAL5$I$
9E-TICAL ANAL5$I$
Table? %
*0%0 *00!
3s =)))> C 3s =)))> C
8ALANCE $3EET
$et -hareholder8s 7%uity 55@,1@0 1*C *A1,)5* 1+C
Balance of -tatuary 2unds 0,&0A,A50 +*C &,01A,11& 5@C
6eferred Lia"ilities ( )C ( )C
Creditors F Accruals 10),*@@ 1)C 105,A15 10C
6ividend &+ )C 15,5)0 1C
Total E@uit) and Liabilities 1A,,2A/2* %00B ,A,5*A/5/ %00B
Cash and "ank deposits 51,)&* 1C 1)5,*&5 0C
-ecured Loans A0,)*1 &C 5A,0)5 &C
Investments 0,+@*,+)) AAC &,A*5,)5@ A*C
Current Assets 00+,0*0 AC &**,@&0 AC
6eferred 'a#ation ( )C ( )C
2i#ed Assets *A,**0 1 5*,A0& &
Total Assets 1A,,2A/2* %00B ,A,5*A/5/ %00B
-E9EN6E AND '-O7IT 0 LO$$ ACCO6NT
$et Income &,&@+,&&1 1)) 1,5A*,+*1 1))
Claims F 7#penditures =1,&11,51A> =*1> =1,)@1,@0> =5*>
Movement in Policy holder8s lia"ility =A+A,A05> =0A> =1*),))5> =&+>
-urplusKProfit "efore 'a# 1+5,+)1 A 111,*** A
'a#ation =15,5@1> =&> =00,51@> =&>
-urplusKProfit after 'a# 10),)10 5 1)+,@)5 5
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MetLife Alico
3O-I>ONTAL ANAL5$I$
Table?*
*0%0 *00! A.ount 'ercenta"e
8ALANCE $3EET
-s -s -s B
$et -hareholders8 7%uity 55@,1@0 *A1,)5* AA,1&A 1*C
Balance of -tatuary 2unds 0,&0A,A50 &,01A,11& @&),+&1 1)C
6eferred Lia"ilities ( ( )C
Creditors F Accruals 10),*@@ 105,A15 =5&1+> (1C
6ividend &+ 15,5)0 =15*+5> (1))C
Total E@uit) and Liabilities 1A,,2A/2* ,A,5*A/5/ !2/A0*/ *!B
Cash and "ank deposits 51,)&* 1)5,*&5 =1&,*)1> (1)C
-ecured Loans A0,)*1 5A,0)5 11,+1* &&C
Investments 0,+@*,+)) &,A*5,)5@ @0@,501 00C
Current Assets 00+,0*0 &**,@&0 A110) 0&C
6eferred 'a#ation ( ( )C
2i#ed Assets *A,**0 5*,A0& =+,&+@> (11C
Total Assets 1A,,2A/2* ,A,5*A/5/ !2/A0*/ *!B
-E9EN6E AND '-O7IT 0 LO$$ ACCO6NT
$et Income &,&@+,&&1 1,5A*,+*1 511,1+) 05C
Claims F 7#penditures =1,&11,51A> =1,)@1,@0> =110&,1**> 10C
Movement in Policy holder8s lia"ility =A+A,A05> =1*),))5> =1&A,A0)> @*C
-urplusKProfit "efore 'a# 1+5,+)1 111,*** 0*,11@ )&C
'a#ation =15,5@1> =00,51@> =10,)1&> 0@C
-urplusKProfit after 'a# 10),)10 1)+,@)5 &&,1)+ &)C
0)
MetLife Alico
-atio Anal)sis
In order to analysis the financial performance of the "ank, investors and manaement use
the ratio analysis in !hich follo!in ratios are calculated:
1. Li%uidity 3atios
&. Profita"ility 3atios
0. Market 3atios
1. Activity 3atios
*. Leverae 3atios
%= Li@uidit) -atios
'hese 3atios are used to measure the a"ility of a firm to met short term o"liations.
'hese ratios compare the short term o"liations !ith short term assets to meet the
o"liations. Li%uidity ratios ive an insiht of present cash solvency of a firm !hich can
determine the firm8s a"ility to remain solvent in the time of adversity. 'here are follo!in
types of li%uidity ratios:
A> Current 3atio
B> Huick 3atio
AC=Current -atio
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MetLife Alico
Current ratio is the comparison of current assets !ith currents lia"ilities. In other !ords
current ratio measures that current assets are sufficient for meetin current lia"ilities or
not. If the result is 1 then it means that firm8s current assets are sufficient to meet the
lia"ilities "ut it should try to improve the financial position.
Current LiabilitiesDCreditors0 AccrualsE Di:idend
*00!L105,A15M155)0L1*011@
*0%0L10),*@@M&+L10),5&5
*0%%L15+,@10M&+
Table? ,
Current -atioDCurrent AssetsFCurrent Liabilities
5ear *00! 5ear *0%0 5ear *0%%G%
st
HuarterC
L&**,@&0K1*011@
L).*A:1
L00+,0*0K10),5&5
L).+@:1
L1)0,)01K15+,@1)
L).A5:1
8C=Huic4 -atio
0&
Current -atio
MetLife Alico
Huick ratio measures a firm8s a"ility to use its %uick assets to retire its lia"ilities. Huick
ratio is computin "y divin current assets !ith total lia"ilities e#cludin share capital.
Table? 1
Huic4 -atioDTotal AssetsFTotal LiabilitiesI
5ear *00! 5ear *0%0 5ear *0%%G%
st
HuarterC
L0,0*&,5*5K&,++1,*@1
L1.&:1
L1,00A,5A&K0,55@,1A@
L1.1A:1
L*,50&,)++K1,AA+,0&@
L1.1*:1
*= Le:era"e -atios
00
Huic4 -atio
MetLife Alico
'hese ratios sho! the capital structure of the firms. Leverae ratios can help in findin
ho! the orani/ation finances its activities. It is more important for lender to assess that
the firm can repay the loan amount or not. Leverae ratios can "e classified as:
A. 'ime Interest 7arned
B. 6e"t 3atio
C. 6e"t to 7%uity 3atio
6. 6e"t to 'ani"le $et North
7. 'otal Capitali/ation 3atio
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MetLife Alico
AC= Ti.e Interest Earned
'ime Interest 3atio tells ho! !ell a company can cover its interest payments on preta#
"asis.
Table? 5
Ti.e Interest EarnedD'rofit before Ta(E Interest Earned
5ear *00! 5ear *0%0 5ear *0%%G%
st
HuarterC
L111,***M1,01@,1A&
L1,1@1,)0+
L1+5,+)1M1,A@0,A1@
L&,)+),**0
L1,150,&AM1+,+A1,@*
L1,A@1,A&0
8C= Debt -atio
6e"t 3atio indicates !hat proportion of de"t a company has relative to its assets. Hiher
the ratio, the reater !ill "e the risk.
0*
Ti.e Interest Earned
MetLife Alico
Table? /
Debt -atioDTotal DebtFTotal AssetsI%00
5ear *00! 5ear *0%0 5ear *0%%G%
st
HuarterC
L01,+10K0,0*&,5*5O1))
L).@1
L1*,*A*K1,00A,5A&O1))
L1.)*
L*A,1@*K*,50&,)++O1))
L1.)0
C= Tan"ible Net Wort+
'ani"le $et NorthL'otal Assets(Lia"ilities(Intani"le Assets
*00! L0,0*&,5*5(&,++1,*@1(*A,55*
L*&&,1))
*0%0L1,00A,5A&(0,55@,1A@(*+,151
05
Debt -atio
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L511,@1*
*0%%L*,50&,)++(1,AA+,0&@(*&,*&+
L5A5+A1
Table? &
Debt to tan"ible Net Wort+DTotal DebtFTan"ible Net Wort+
5ear *00! 5ear *0%0 5ear *0%%G%
st
HuarterC
L 01,+10K*&&,1))
L).)5
L1*,*A*K511,@1*
L).)+
L*A,1@*K5A5+A1
L).)A
CC 'rofitabilit) -atios
It is e#tremely important for investors to kno! the profita"ility of the firm. Profita"ility
ratios are used to measure the profita"ility of a firm. 2ollo!in ratios come under the
cateory of Profita"ility 3atios:
A. ?ross Profit 3atio
B. $et Profit 3atio
0+
Debt to Tan"ible Net
Wort+
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C. 3eturn on assets
6. 3eturn on 7%uity
7. 3ates paid on fund
Gross 'rofit -atio
?ross Profit ratio tells us a"out the ross profit marin a firm can enerate throuh its
sales.
Table? 2
Gross 'rofit Mar"inDGross 'rofitFTotal -e:enue
5ear *00! 5ear *0%0 5ear *0%%G%
st
HuarterC
L111,***K1,&5+,@*0
L).11
L1+5,+)1K1,A)5,*&*
L).)@
L115,&0AK1,@@+,*)&
L).)*
0A
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Net 'rofit -atio
$et Profit 3atio indicates the amount of profit enerated throuh sales after deductin
ta#es.
Table? !
Net rofit Mar"inDNet 'rofitFTotal re:enue
5ear *00! 5ear *0%0 5ear *0%% G%
st
HuarterC
L1)+,@)5K1,&5+,@*0
L).)A
L10),)10K1,A)5,*&*
L).)+
L+*,***K1,@@+,*)&
L).)0
0@
Gross 'rofit -atio
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-eturn on Assets
3eturn on assets is an indicator of ho! a company is profita"le relative to its assets. 3.A
ives an idea as ho! efficient a manaement is at its assets to enerate earnins
Table? %0
-OADNet Inco.eFTotal Assets
5ear *00! 5ear *0%0 5ear *0%%G%
st
HuarterC
L1,5A*,+*1K0,0*&,5*5
L).*C
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Net 'rofit -atio
MetLife Alico
-eturn on E@uit)
3.7 means amount of net income returned as a percentae of shareholder8s e%uity. 3.7
measures a corporation8s profita"ility "y sho!in ho! much profit a company enerates
!ith the money shareholders have invested.
11
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MetLife Alico
Table? %%
-eturn on E@uit)DNet Inco.eF$+are+oldersJ E@uit)
5ear *00! 5ear *0%0 5ear *0%%G%
st
HuarterC
L1,5A*,+*1K*A1,)5*
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MA-KETING $T-ATEG5
A"enc) Trainin" and Monitorin" 'ro"ra.s
Principal stratey of the MetLife has "een to strenthen its market share, !hile
continuin to emphasi/e its core values of discipline in under!ritin, efficient claims
administration, tiht manaement of e#penses and innovation in products and client
services. 'o achieve this, it continuously seeks to "roaden distri"ution and intensify
aency trainin and monitorin prorams.
1&
-OE
MetLife Alico
Mar4et $e".entation
Its aency force is cornerstone of its "usiness. MetLife Alico relies on a three(tiered
distri"ution operation for .rdinary life !hich focuses on sementin the market into
three income classes. By developin products !hich cater to the specific needs of each
market !e continue to make inroads in the local market and strive to make MetLife Alico
household name.
'ersonal Accident 'lans
6evelopin and promotin Personal Accident products is an interal part of its market
stratey. 'hrouh Individual Accident F Health products and 6iet Marketin initiatives
!e strive not only to increase the premium income, "ut also improve the commission
earnins of the aents.
MAKO- 3- 'OLICIE$ AND '-ACTICE$
E.lo)ee Trainin"
Company recruits staff on merit "asis and provide the necessary trainin to develop
professional e#pertise and "elieve in retention of "est talent. 'he trainin is provided to
local as !ell as reional level in all spheres of "usiness activities, includin technical and
operational support.
10
MetLife Alico
Company also has online trainin prorams !hich provides online trainin to the
employees accordin to their 4o" re%uirement and enhances their skills.
-ecruit.ent of Local 'ersonnel
Company is staffed !ith the local personnel !ho are constantly studyin the need of
individuals and developin innovative products to the specific need of each market
sement.
E.lo)ee 8enefits
'he company provides full financial assistance and encouraes employees to appear in
the insurance diploma e#ams of the Life .ffice Manaement Association and the -ociety
of Actuaries, 9-A
11
MetLife Alico
Ad.inistration Deart.ent
'he duties of the administration department include:

Providin e%uipment
.penin ne! "ranch
Lookin after ne! "ranch
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MetLife Alico
Implementin 3ules F3eulations
?uidin the staff to perform their duties.
Checkin clients and proposals
3eceive the cash from clients and maintainin the accounts.
Accounts Deart.ent
Calculation of 're.iu.
An insurance company sets a policy8s premium "y multiplyin the rate for each unit of
insurance coverae "y the total num"er of coverae "ein purchased. Most people pay
premium once or t!ice a year. .ther people choose to pay monthly installments.
Accounts department is responsi"le to calculate premium on policies.
'rearin" -eorts
Huarterly and Annual reports of the company are prepared "y the Accounts department.
Custo.er $er:ices
2ront 6esk Manaement
3eceivin uests
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MetLife Alico
Manain postal mails
Listenin to customer8s complaints
7#plainin the procedure of the insurance policies.
Clai. Deart.ent
Claim department handles all the claims and maintain the record of all the claims. 'here
are three types of claims handled "y this department:
6eath Claims
Actuarial Claims
Medical Claims
Deat+ Clai.s
6eath claims are further divided into t!o cateories that are early death claims and $on(
early death claims. 6eath claim !ithin early t!o years is kno!n as early death and after
that it is kno!n as non(early death claim.
In case of early death claim department do in%uiry from eneral pu"lic, hospital and
police station etc.
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MetLife Alico
Actuarial Deart.ent
'ask of Actuarial department is to
Calculate premium on the policies
6ealin and maintainin all types of the products of the company
Computin Interest 3ates
A"enc) $er:ice Deart.ent
3esponsi"ilities of the Aency -ervice departments are:
Deep the record of all the /onal and sector offices
Issue code num"ers to the field !orkers and maintainin the record of their
"usiness.
-endin and receivin licenses of field !orkers.
Arrane trainins for the sales force.
6nder;ritin" Deart.ent
'asks of this department are:
'o collect the information of all clients
,erifyin the information provided "y the clients
Investiation of clients8 personal information
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MetLife Alico
Co.liance Deart.ent
Compliance department keep the record of the activities of every department of the
company. After every si# months, Auditors visits and check the data maintained "y the
compliance departments.
Wea4nesses and $+ort 7alls
3i"+er -ate of Turno:er
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MetLife Alico
As the sale force of the orani/ation is commission "ased do there is a hiher rate of
turnover. 7mployees !ho fail to sho! the re%uired outcome leave the orani/ation rather
improvin their performance.
Increasin" -ate of $urrender
Business of the company is dependent on the savins of the people. Nhen there is an
economic meltdo!nB savins of the people o do!n so they find themselves una"le to
continue the policy.
Lac4 of A;areness
A larer part of the population in Pakistan is livin in the rural area, they are not a!are
a"out the insurance "usiness. Beside this people livin in the ur"an area are also not !ell
a!are.
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MetLife Alico
Duties
My duties include:
Makin 6ata 7ntries
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MetLife Alico
2illin Intervie! 2orms
6ocumentation
Makin calls to the customers
Contactin the reference persons of the sales force
Collectin and verifyin the information provided "y sales representatives.
Acco.lis+.ents
Completed the assinment of ;1)) pro4ect forms<
Collected &* references.
Contacted !ith customers on telephone and arraned meetins !ith them
Ne; Kno;led"e Ac@uired
Marketin e#perience
6ealin !ith Customers
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MetLife Alico
Better Communication
?uidelines a"out sales
'roble.s Encountered
Biest pro"lem for me as internees !as that there !asn8t any culture in the
company to conduct internship. -o I !as the first internee in the company.
I.act on Career
I ained a chance to have practical insiht of the professional !orld.
I have ained e#perience of marketin "y dealin !ith customers !hich !ill "e
very "eneficial for me in my professional career.
-ECOMMENDATION$ 7O- IM'-O9EMENT
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MetLife Alico
1. Better trainin prorams should "e introduced in the company "y conductin
trainin need assessment of the employees.
&. Nork overload should "e lessenin and responsi"ilities should "e divided e%ually
so that employees can !ork effectively.
0. -ystem and operations should "e more defined and orani/ed.
1. Better incentive plans should "e introduced so that employees can "e motivated.
*. I' infrastructure should "e improved.
5. 7#penditures must "e controlled.
+. Attractive and Appealin advertisement is needed to a!are the pu"lic a"out
MetLife and its products.
A. Islamic mode of insurance is emerin rapidly so MetLife should introduce pure
Islamic products or interest free "usiness.
@. 'he company should create a culture suita"le for internees.
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MetLife Alico
CONCL6$ION
My internship in MetLife Insurance Corporation proved to "e a very informative and
learnin e#perience. I ot a chance to understand the professional !orld in a very short
span of time. MetLife is providin life security coverae in all over Pakistan. Beside this
it is also "ecomin a cause of providin employment to many fresh raduates and
unemployed youth.
My internship e#perience has "uilt my confidence. $o! I am ready to face the challenes
of professional life !hich is !aitin for me ahead.
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MetLife Alico
-E7E-ENCE$ 0 $O6-CE$ 6$ED
NNN.M7'LI27ALIC..C.M
Annual and Huarterly reports
Pamphlets
Brochures
Company8s -ales ?uide Book
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MetLife Alico
1. A$$7P7-
*+