BHARTI AXA LIFE INSURANCE LTD . Bharti AXA Life Insurance is a joint venture between Bharti, India's leading private telecom company and AXA, world leader in financial protection and wealth management. Their philosophy is to build around the promise of making people "Life Confident"... Bharti Enterprises and AXA Asia Pacific Holdings Limited (AXA) signed an agreement to establish a joint venture named Bharti AXA Life Insurance Company Limited to carry on life insurance business in India. August 26, 2005, New Delhi : Bharti Enterprises and AXA Asia Pacific Holdings Limited (AXA) signed an agreement to establish a joint venture named Bharti AXA Life Insurance Company Limited to carry on life insurance business in India. Under the agreement AXA has a 26% equity interest in the joint venture, while Bharti holds the balance. AXA, a global leader in insurance business, enabled the company to have access to AXA’s global life insurance and asset management expertise. Bharti brought its strong local market knowledge, reputation and India-wide retail presence. “The insurance sector in India provides a mega opportunity for private players like Bharti Axa Despite the strong growth witnessed by the sector in the recent years, nearly 80% of the Indian population is without life insurance coverage. As one of India’s leading business conglomerates having an established brand and a significant presence in the retail space, Bharti has inherent advantages in being a part of this growth story. In AXA, Bharti has a global leader as its partner, one that is known for its expertise and best practice across the world. More importantly, this new venture also fits into our strategy of taking on projects that make a difference to the society at large. This joint venture is an opportunity for AXA to enter the Indian life insurance market, one of the most attractive emerging insurance markets. India is a fast growing economy and a huge market with more than 1.1 billion people. This coupled with a large middle class and increasing income levels will drive growth in the insurance market. Bharti is a well-established and financially strong group whose capabilities and network will be of significant value to the joint venture. The joint venture invested in the region of Rs. 500 crores (115 Million USD) over the
first three to four years of operations, reflecting both partners’ commitment to quickly establish a strong foothold in the Indian market. The joint venture commenced business in the first half of 2006, subject to IRDA, FIPB and other statutory approvals. Vision To be a leader and the preferred company for financial protection and wealth management in India Strategy To achieve a top 5 market position in India through a multi-distribution, multi-product platform. To adapt AXA's best practice blueprints as a sound platform for profitable growth. To leverage Bharti's local knowledge, infrastructure and customer base. To deliver high levels of shareholder return. To build long term value with our business partners by enhancing the proposition to their customers. To be the employer of choice to attract and retain the best talent in India. To be recognized as being close and qualified by our customers Strategic differentiators · Strong partner Bharti - provides access to customer base of more than 20 million · Multi channel execution capability · Current Asia product range which is a strong match to products sold to the mass and mass affluent · Global scale providing cost effective and speedy re-use of systems, products and business capability · Strong AXA and Bharti brands which can be leveraged to attract and retain a high quality management team.
SWOT ANALYSIS OF BHARTI AXA
Strengths · Use of brand affinity of Airtel to promote insurance sales. · Bharti brought its strong local market knowledge, reputation and India. · Associated with AXA world leader in financial protection and wealth management, ranked No 13 in the Fortune 500 list of global companies and has enabled the company to have access to AXA’s global life insurance and asset management expertise. · Strong partner Bharti - provides access to customer base of more than 20 million Weakness · Late entrant in the insurance sector · Thin distribution network all over the nation · Very less number of product offering in comparison to its competitors · Lack of confidence among the customers as parent company does not have a financial background. Opportunities · Strong growth of unit linked market at the mass affluent end. · Potentially with 20% insurance cross sale only to new telecom customers, this network can yield 48 lac policies per year with sum assured of nearly Rs 58000 crores. Threats · Many more companies are lining up to enter into Indian Insurance Industry. · Consumer’s preference is still more towards public sector insurance companies