PNB Metlife India Insurance Unlisted Share
PNB Metlife India Insurance Co. Ltd
INE207O01014
Listing Status: DRHP Not Filed
About PNB Metlife India Insurance Unlisted Share
Overview of PNB Metlife India Insurance Unlisted Share
PNB MetLife Insurance Company Ltd. is a leading life insurance company in India, formed as a joint venture between MetLife International Holdings LLC and Punjab National Bank (PNB), along with other private investors. Established in 2001, the company offers a wide range of life insurance and protection solutions to individuals and groups. PNB MetLife is known for its customer-centric approach, leveraging both digital and traditional channels to meet the diverse needs of its customers.
Business Model:
1. Product Portfolio: PNB MetLife offers a wide range of products, including protection plans, savings and investment plans, retirement plans, and group insurance. These products cater to various life stages and financial needs of individuals and organizations.
2. Distribution Channels: The company uses multiple channels to reach customers, including bancassurance through its partnership with Punjab National Bank (PNB), a large network of individual agents, brokers, and digital platforms. This multi-channel approach helps it access a broad market base.
3. Investment Strategy: PNB MetLife maintains a diversified investment portfolio, balancing equity and debt instruments to generate steady, long-term returns while managing risk. This ensures the company can meet its policyholder obligations.
Achievements:
2019- PNB MetLife collaborates with ESAF Small Finance Bank; PV Sindhu - Olympic Medalist and Badminton champion is onboarded as Brand Ambassador; The Economic Times lists PNB MetLife among ‘Top 10 trusted Life Insurers of India’ and among 2019 Best Brands
2020- PNB MetLife recognized among the Best Brands, second year in a row by The Economic Times; Claims Assure – 3 hours claims decisioning initiative for eligible claims launched; ‘e-branch next’ – a digital customer onboarding device agnostic platform with modern and adaptive user interface launched
2023- Partnership with Unity Small Finance Bank; Awarded “Best Credit Protection 2023” by Insure Next; Awarded winner in the category “Customer Service and Customer Experience” at the Future of Insurance Summit Award 2023
Growth Drivers:
1. Healthy GDP Growth: Despite global challenges, India's GDP grew around 7% in FY 2022-23, supported by domestic demand, government capital expenditure, and a normal monsoon. This growth improved income prospects across rural and urban areas, boosting consumer confidence and access to credit.
2. Rising Middle Class: The middle-class population, defined by households with annual incomes between ₹0.2 to ₹1 million, has been steadily increasing. This demographic shift, along with urbanization and rising affluence, is expected to drive demand for life insurance and other financial services, especially in semi-urban and rural areas.
3. Urbanization: With India's urban population growing, significant investments in infrastructure are expected, creating jobs, modern consumer services, and enhancing the ability to mobilize savings, which will further support the life insurance industry.
4. Increasing Insurable Population: India's large, young population is becoming increasingly aware of life insurance products, driven by rising incomes and financial literacy. This growing awareness, combined with a middle-class population, is expected to boost the life insurance sector.
5. Changing Customer Needs: The pandemic has shifted consumer attitudes towards financial security, leading to increased demand for life insurance. Insurers have responded by offering customized policies, enhanced protection plans, and improved digital access and claim settlement processes.
Management Team:
Insights of PNB Metlife India Insurance Unlisted Share
Key Performance Metrics:
Key performance metrics |
FY 2022 |
FY 2023 |
Value Metrics: |
|
|
Operating return on embedded value |
17.9% |
14.6% |
VNB Margin |
21.3% |
23.7% |
Shareholders Profit |
112 |
(71) |
Growth Metrics: |
|
|
Retail new business premium |
2295 |
1881 |
Total new business premium |
3219 |
2468 |
Total Premium |
8785 |
7348 |
Efficiency and quality metrics |
|
|
Admin expenses to total premium |
16.9% |
16.7% |
13th month persistency |
81% |
80% |
Sectorwise Percentage of business:
Rural Sector:
- Gross Premium Underwritten: ₹7,197,380,000 in FY 2022-23, up from ₹6,528,694,000 in FY 2021-22.
- Number of New Policies: 89,627 in FY 2022-23, up from 86,767 in FY 2021-22.
- % of Rural Policies to Total Policies: 31.14% in FY 2022-23, down from 33.71% in FY 2021-22.
- Required % as per Regulations: 20.00% (met and exceeded).
Social Sector:
- Gross Premium Underwritten for New Lives: ₹334,372,000 in FY 2022-23, up from ₹199,825,000 in FY 2021-22.
- Number of New Policies (Including Group Business): 1 in FY 2022-23, down from 17 in FY 2021-22.
- Number of New Lives Covered: 569,610 in FY 2022-23, up from 349,970 in FY 2021-22.
- Social Sector Lives as % of Total Lives: 21.23% in FY 2022-23, up from 12.79% in FY 2021-22.
- Required % as per Regulations: 5.00% (met and exceeded).
Total:
- Total Number of New Policies: 287,854 in FY 2022-23, up from 257,429 in FY 2021-22.
- Total Number of New Lives Covered: 2,682,530 in FY 2022-23, slightly down from 2,736,209 in FY 2021-22.
Key Takeaway:
- PNB MetLife exceeded regulatory requirements for both rural and social sectors.
- The rural sector saw growth in both premium underwritten and the number of new policies, although the percentage of rural policies to total policies slightly declined.
- The social sector saw a significant increase in premium underwritten and lives covered, with a sharp rise in the percentage of social sector lives to total lives.
Performance Highlights:
Total Premium: ₹8,785 Crores, reflecting a growth of 20%.
Number of Individual Policies: 2,87,742 policies, with a growth of 12%.
Value of New Business Margin: 21.3%.
Persistency (13th Month): 81%.
Embedded Value: ₹6,115 Crores.
Assets Under Management: ₹39,777 Crores.
Claim Settlement Ratio (Retail): 99.1%.
Total New Business Premium: ₹3,219 Crores, showing a growth of 30%.
SWOT Analysis
Strengths:
1. Strong Brand Association: PNB MetLife benefits from the strong brand recognition of both Punjab National Bank (PNB) and MetLife, which provides credibility and trust among customers.
2. Extensive Distribution Network: Through its partnership with PNB, the company has access to a vast distribution network across India, reaching both urban and rural markets effectively.
3. Diverse Product Portfolio: PNB MetLife offers a wide range of insurance products, including term plans, savings plans, retirement plans, and unit-linked insurance plans (ULIPs), catering to various customer needs.
4. High Claim Settlement Ratio: The company boasts a strong claim settlement ratio, which enhances customer trust and satisfaction.
Weaknesses:
1. Dependence on PNB: The heavy reliance on PNB's distribution channels might limit the company's ability to diversify its customer acquisition strategies.
2. Market Positioning: Despite being a well-known brand, PNB MetLife faces stiff competition from other established life insurance companies in India, which may limit its market share growth.
3. Limited Global Presence: Unlike some competitors with a more extensive global footprint, PNB MetLife's operations are primarily focused in India, which could limit its growth opportunities outside the country.
Opportunities:
1. Growing Middle-Class Population: The expanding middle-class population in India presents a significant opportunity for PNB MetLife to offer tailored insurance products to meet their evolving financial needs.
2. Digital Transformation: Increasing digital penetration provides an opportunity for PNB MetLife to enhance its digital offerings, improve customer experiences, and reduce operational costs through technology-driven solutions.
3. Government Initiatives: Government initiatives promoting financial inclusion and insurance coverage, such as the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), can help expand the company’s customer base in underserved markets.
Threats:
1. Intense Competition: The Indian life insurance industry is highly competitive, with both public and private sector players striving for market share, which could pressure PNB MetLife's margins.
2. Regulatory Changes: Changes in regulations governing the insurance sector could impact PNB MetLife's operations, requiring adjustments to product offerings or distribution strategies.
3. Economic Uncertainty: Economic downturns or slowdowns could reduce the disposable income of potential customers, leading to lower demand for life insurance products.
Industry Overview:
The Indian life insurance market is a significant yet underpenetrated segment, ranking as the tenth-largest globally and fourth-largest in Asia by premium as of 2021, according to a Swiss Re report. Despite its size, the market has seen a decline in penetration, dropping from 4.4% of GDP in 2010 to 3.2% in 2021, due to regulatory changes and slower growth in the early part of the decade. This penetration rate is lower than that of several Asian countries, including South Korea (5.8%) and Singapore (7.5%).
India's life insurance market remains poised for growth, driven by increasing awareness, government initiatives for financial inclusion, and a broadening distribution network. The sector has grown at an 11% CAGR from FY 2017-18 to FY 2022-23, despite challenges such as economic slowdowns and global uncertainties. With improving economic conditions, increased customer sentiment, and a strong government focus on infrastructure and rural development, the life insurance sector in India is expected to see continued expansion, particularly in the protection and health insurance segments. However, the market's low insurance density and high protection gap highlight the untapped potential and the need for further market penetration.
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Balance Sheet of PNB Metlife India Insurance Unlisted Share
Profit and Loss of PNB Metlife India Insurance Unlisted Share
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Peers
Industry Benchmarking
Segment Revenue
Subsidaries
Security Allotment
Corporate Governance
Team Management Details
FAQs of PNB Metlife India Insurance Unlisted Share
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How to buy PNB Metlife India Insurance Co. Ltd?
Below are three ways through which you can purchase PNB Metlife India Insurance Co. Ltd:
- We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to buy PNB Metlife India Insurance Co. Ltd, please click on the trade button at the top of this page
- Additionally, you can download our app from your play store or app store, register on our application, and engage in active trading there.
Download the Altius App here https://onelink.to/hf4m72 - You can also reach out to us at : +91 8240614850 / +91 8240861716
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How to sell PNB Metlife India Insurance Co. Ltd?
Below are three ways through which you can sell PNB Metlife India Insurance Co. Ltd:
- We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to sell PNB Metlife India Insurance Co. Ltd, please click on the trade button at the top of this page
- Additionally, you can download our app from your play store or app store, register on our application, and engage in active trading there.
Download the Altius App here https://onelink.to/hf4m72 - You can also reach out to us at : +91 8240614850 / +91 8240861716
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What is the price of PNB Metlife India Insurance Co. Ltd?
We provide a two way quote on all the shares we deal in. Your buy price for PNB Metlife India Insurance Co. Ltd is ₹70 and your sell price for PNB Metlife India Insurance Co. Ltd is ₹25. The price is based on our estimates and market conditions.
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What is the lock-in period of PNB Metlife India Insurance Co. Ltd?
The lock-in period for PNB Metlife India Insurance Co. Ltd varies depending on the category of investors:
- For retail Investors, HNIs, or Body Corporates, the lock-in period is 6 months from the date of the listing of PNB Metlife India Insurance Co. Ltd
- For Venture Capital Funds or Foreign Venture Capital Investors, there is a lock-in period of 6 months from the date of acquisition of PNB Metlife India Insurance Co. Ltd
- For AIF-II (Alternative Investment Funds - Category II), there is no lock-in period
August 2021 saw the introduction of this regulation by SEBI. The purpose of the regulation change, which lowered the lock-in period from a year to six months, was to incentivize additional investments in firms getting ready for initial public offerings, or IPOs. Since its introduction, a number of Portfolio Management Services (PMS) have advised their clients to purchase Pre-IPO shares in order to take advantage of the advantages associated with early-stage investments. This reduction in the lock-in period is considered as a significant step forward.
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How is the PNB Metlife India Insurance Co. Ltd price calculated?
Fundamental & Comparative valuation models and the forces of demand and supply in the market for unlisted shares dictate the price. These prices are based on our estimates and transaction history of PNB Metlife India Insurance Co. Ltd. The price is also determined from the most recent funding round for PNB Metlife India Insurance Co. Ltd. This provides us with a benchmark valuation, offering a clear indication of the company's current market value as perceived by investors and industry experts.
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What are the lot sizes of PNB Metlife India Insurance Co. Ltd?
We can generally arrange lot sizes starting with an investment of INR 20,000. To confirm the lot sizes of PNB Metlife India Insurance Co. Ltd with us kindly click here.
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What are the financials of PNB Metlife India Insurance Co. Ltd?
The financials of PNB Metlife India Insurance Co. Ltd which includes the P/L of PNB Metlife India Insurance Co. Ltd and the Balance Sheet of PNB Metlife India Insurance Co. Ltd is in the financials section (Click on link).
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Where can I find the annual report of PNB Metlife India Insurance Co. Ltd?
The annual report of PNB Metlife India Insurance Co. Ltd is available in the annual report section (Click on link).
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Is buying PNB Metlife India Insurance Co. Ltd legal in India?
Yes, buying and selling unlisted shares in India is indeed 100% legal. This activity is regulated and governed under the guidelines provided by the Securities and Exchange Board of India (SEBI). Investors and traders must adhere to these regulations and guidelines to ensure compliance with legal and financial standards. It's important for participants in the unlisted share market to be aware of and understand these regulations to engage in transactions legally and securely.
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Short-term Capital Gain taxes to be paid on PNB Metlife India Insurance Co. Ltd?
When you sell unlisted shares within a period of two years from the date of acquisition, any profit earned from the sale is classified as Short-term Capital Gain (STCG). This gain is then added to your total income for that financial year. The tax on this short-term capital gain is calculated based on your applicable individual income tax slab rates. Therefore, the rate at which you will pay tax on the STCG from unlisted shares depends on your total income, including this gain, and the tax slab it falls under as per the prevailing income tax laws in India. It's important for investors to consider these tax implications when engaging in transactions involving unlisted shares.
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Long-term Capital Gain taxes to be paid on PNB Metlife India Insurance Co. Ltd and how are They Taxed?
Long-term Capital Gains (LTCG) on unlisted shares in India refer to the profits earned from the sale of unlisted shares that have been held for more than two years. The key aspects of LTCG on unlisted shares include:
- Tax Rate: LTCG on unlisted shares is taxed at a rate of 20%.
- Indexation Benefit: This is a significant advantage for investors. Indexation allows for adjusting the purchase price of the shares for inflation, which can reduce the taxable gain.
- Importance for Investors: Understanding LTCG is crucial, especially for High Net-worth Individuals (HNIs) and retail investors, as it impacts their investment strategy and tax planning. Knowing these details helps in making informed investment decisions.
- Calculation: LTCG is calculated by subtracting the indexed cost of acquisition (the purchase price adjusted for inflation) from the sale price of the shares. The profit thus calculated is subject to a 20% tax.
- Applicability: LTCG tax is applicable to profits from the sale of unlisted shares held for more than two years.
- Relevance: This tax is particularly relevant to investors in the unlisted share market, including those considering selling their holdings after a period of more than two years.
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Applicability of Taxes on PNB Metlife India Insurance Co. Ltd once it is listed?
When shares initially bought in the unlisted market become listed, the taxation rules change significantly if these shares are sold through a stock exchange. Here's what investors need to know:
Transition to Listed Market Tax Rates: Once unlisted shares are listed on the stock exchange and subsequently sold, the tax rates applicable to listed securities come into effect. This shift means that the favourable tax treatments for listed shares, as per the prevailing tax laws, will apply.
Taxation Based on Holding Period: The crucial factor in determining the type of capital gains tax (Long-term or Short-term) is the holding period of the shares. Importantly, this period is calculated from the original purchase date when the shares were unlisted.
Long-term vs. Short-term Capital Gains: If the shares are sold after being held for more than one year from the date of purchase (including the period when they were unlisted), they are subject to Long-term Capital Gains (LTCG) tax.
Conversely, if sold within one-year, Short-term Capital Gains (STCG) tax rates apply.
Significance for Investors: This information is vital for investors in the unlisted market, as it impacts their tax planning and decision-making process. Understanding these nuances ensures that investors can strategically plan the sale of their shares post-listing to optimize tax implications.
Advice for Investors: It's advisable for investors to keep a record of their purchase dates and monitor the listing dates closely. Additionally, staying updated with the latest tax regulations or consulting with a financial advisor is recommended for accurate tax calculations and compliance. -
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Employees of the Company: Employee stock option plans (ESOPs) or other compensation packages frequently include shares for firm employees. For a various reasons, such as including portfolio diversification or financial considerations, some of these employees may eventually choose to sell their shares. We engage with these employees, providing them a platform to sell their shares.
Initial Investors: These are the angel or early-stage investors who provided capital to the business in its early stages. These original investors may look to sell all or part of their ownership position in the company as it develops and flourishes. This might be done for various reasons such as in order to maximise their investment, reallocate resources, or make other calculated financial decisions.
Funding rounds and VC funds: Altius Investech sources the shares from private placement rounds in which private companies seek to obtain capital from the market. Through our platform, venture capital funds can liquidate their shares and we receive the inventory from them when they decide to sell a portion of their ownership through block trades.
By establishing connections with these groups, Altius Investech guarantees our clients a steady and dependable supply of Boat Unlisted Share (Imagine Marketing). This process not only makes it easier for employees and initial investors in liquidating their assets, but it also gives our clients access to shares that aren't often found on the open market. Our platform effectively facilitates a win-win situation for both buyers and sellers. -
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