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THE CASE STUDY




1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
     Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
     the selected organization
ACKNOWLEDGEMENT
              We would like to express the deepest appreciation to manager
              human resources Mr:Rukmal Bandaranayke, who has the
              attitude and the substance of a genius. He continually and
              convincingly conveyed a spirit of adventure in regard to this
              “case study” effort. Without his guidance and persistent help this
              assignment would not have been possible.
              We would like to thank my course facilitators of integrative
              studies (BUS4306) Mr Rukmal Weerasingha and special
              gratitude for Mrs Gayani Samarakoon, who always transcend
              academia and provide a quest for our times. In addition, a thank
              for my group colleagues for being the strategic partners of
              “CASE STUDY”, and whose enthusiasm for the “TWICE THE
              VALUE OF THE CASE STUDY” had lasting effect




1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
     Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
     the selected organization
Insurance Industry
The insurance industry was nationalized in 1961, by the government taking over a number of
insurance companies operating in the country at that time. These included a large number of
local as well as representative offices of foreign insurance companies. The state monopoly of the
insurance industry continued till 1986 with the Sri Lanka Insurance Corporation acting as the
only supplier of insurance. This was converted to a state controlled oligopoly with the creation of
the National Insurance Corporation. In 1987 as a result of the adoption of a market based
economic policy by the Government, the insurance sector was opened out to the private sector.
The industry was previously regulated by a Controller of insurance, but now is under purview of
the Insurance Board of Sri Lanka which has been vested with greater powers to regulate the
industry.
The insurance industry has performed well despite the global recession recording growth in the
long term and general insurance sectors. In 2009, the long term insurance contributed for Rs.
62,078,117 million and general insurance Rs. 15,441,944 million. In comparison in 2008 long
term insurance contributed for Rs. 48,405,115 million and general insurance Rs. 15,955,553
million. The insurance industry penetration is 10 percent.
The insurance industry is regulated in terms of the provisions of the Regulation of Insurance
Industry Act, No.43 of 2000 (RII Act). The Insurance Board of Sri Lanka (IBSL) was established
under this Act in order to develop, supervise and regulate the insurance industry in Sri Lanka.
Over the past year, the IBSL has embarked upon several activities to develop, supervise and
regulate the insurance industry with a view to ensuring that the best interest of the policyholders
and potential policyholders. During the previous year (2009), the IBSL has strengthened its
monitoring process in order to ensure the financial stability of insurance companies and
insurance brokers. Eleven of them are composite companies, five of them engage in General
Insurance business and two companies engage only in Long Term (Life) Insurance business.
When a company is registered to transact in both Life Insurance and General Insurance business,
those companies are recognized as composite companies. During the period under review, 43
insurance broking companies were registered. This economic performance has to be considered

   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
as a very satisfactory achievement considering the global economic recession that was prevalent
during the last year. However, the overall gross written premium on insurance has not increased
accordingly. The Gross Written Premium (GWP) from Long Term (Life) and General Insurance
Business in 2009 is added up to Rs. 57,919 million. In the year 2008, the overall gross written
premium was Rs.58, 166 million in Sri Lankan insurance industry. (Annexure 01)



History
Aviva NDB Insurance PLC, former known as Eagle Insurance PLC. It is a life and general
insurance company in Sri Lanka and its parent company is Aviva NDB Finance Lanka (PVT)
Ltd. The Group's principal activities are to provide Life and Non-life Insurance Services, Asset
Management, Trustee and Administration Services. It provides Non-life Insurance for Accident,
Fire, Marine, Motor and Terrorism etc.


Eagle Insurance commenced the business when industry is open to private sector in Sri Lanka.
Eagle Insurance Company had been founded in 1988 as a subsidiary of Ceylon Tobacco
Company (CTC) who is the main shareholder and with the collaboration of British American
Tobacco (BAT) Insurance Business in UK. It underwent a number of changes in ownership until
Aviva acquired the majority shareholding.


In 1999, the Eagle Insurance Company became part of the Zurich Financial Services Group
based in Switzerland, when BAT Industries divested its financial services businesses to Zurich as
part of its global strategy. So Eagle joined with Zurich Financial Group who is the world leader
in providing financial services. Zurich Financial Services Company was founded in 1872 as
subsidiary of the Schweiz Marine Insurance Company. The Company changed its name to
Zurich General Accident and Liability Insurance in 1894. In 1998 the Company acquired British
American Financial Services; a business owned by BAT Industries.




   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
The National Development Bank (NDB) – Sri Lanka‟s leading development bank – became the
major local shareholder since 1997. NDB Group offers project finance, corporate banking, SME
lending, retail banking, investment banking, stock broking, wealth management and insurance
solutions under one roof. The shareholding changed once again in 2003 when NDB Bank,
through its investor company, the Capital Development and Investment Company (CDIC)
acquired the majority shareholding of Eagle Insurance due to the withdrawal of Sri Lankan
operations by Zurich Financial Services group.


Eagle Insurance Plc‟s second-largest shareholder NDB Bank, through its investment arm CDIC,
took up 100% control in Eagle Insurance by acquiring the partnership share of Zurich in NDB
Finance Lanka in 1997 and controlling stake in Eagle Insurance‟s fully owned subsidiary, Eagle
NDB Fund Management Company (ENDB). How ever on 1st February 2006, CDIC divested a
58.4% stake of in NDB Finance Lanka to Aviva International Holdings (AVIVA) while handing
over the management to AVIVA.


Aviva is the world's oldest insurance group, with a history dating back nearly 300 years to 1696.
Today it is the world's fifth-largest insurance group and the biggest in the UK. They are the
leading providers of life and pension products in United Kingdom. Aviva has 59,000 employees
serving over 50 million customers across Europe, North America and the Asia Pacific. Aviva's
principal business activities are long-term savings, fund management and general insurance and
their aim is make the global brand. Aviva's long-term savings products and services are
distributed through a multi-channel network, which includes a direct sales force, insurance
intermediaries and banc assurance partners.


Since February 2006, Aviva and NDB have been the main shareholders of Eagle with 51% and
41.15% holding respectively when they took a majority stake in Eagle Insurance. The principal
minority share was held by Eagle's new bancassurance partner, National Development Bank
(NDB).The combined expertise resulting from this unique partnership offers the confidence of
world class financial solutions while upholding Sri Lankan values.

   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
This new acquisition emphasizing that Eagle's customers will continue to enjoy the
professionalism, prudence, good governance, transparency and corporate responsibility that have
been the cornerstones since the company's inception in 1988
Aviva NDB Plc is the fifth-largest insurer in the Sri Lankan general insurance market with a 6%
market share and also has a 19% share of the life insurance market and enjoy bancassurance
agreements with National Development Bank (NDB) and Standard Chartered Bank. Aviva also
noted that its new acquisition has "entered into a bancassurance agreement with National
Development Bank Limited (NDB), Sri Lanka's biggest development bank and Eagle's other
major shareholder."


Presently Eagle and Union Assurance Limited (UAL) control about 29.0% and 73.0% of Sri
Lanka‟s Life and general insurance business respectively.


Mid Career of the Organization
Eagle Insurance Plc


The Proud Wings of The Eagle have symbolized an unweaving and strong commitment towards
customer service excellence in Sri Lanka. As a composite Insurer and Fund Manager, the
company offers wide portfolio of Life, Non life, Fund management and Mutual Fund/Unit Trust
Solutions for individual and corporate customers. The company has earned a commendable
reputation for its prudent, professional management and demonstrated a high level of social
responsibility and good governance in all its endeavors.




Vision – “To be a world class provider of financial solutions for protection and wealth creation”
Mission – “To be the most sought after Insurer and Fund Manager in Sri Lanka for security,
Return Optimization and Excellence in Services, Achieving Leadership in identified segments of
the market
   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
Core Values
       Accepting Risk with Responsibility
       Being Ethical and Social Responsibility
       Innovation
       Dedication to Customers
       Encouraging Everybody to contribute and Excel



Rebuilding the Business - Transformation

Eagle Insurance Plc transform in to AVIVA NDB Insurance plc

Eagle Insurance PLC has transformed in to AVIVA NDB Insurance Plc as a reposition entity. It
was a decisive and timely step that they take and this transformation could be able to create a
milestone in the history of Insurance Industry in Sri Lanka.


In this transformation process AVIVA took the major step. Because they need to strength their
global brand strategy of, becoming “one AVIVA” across the globe. Therefore they proposed to
combine the name “NDB” together with the name AVIVA to transform Eagle Insurance Plc into
AVIVA NDB Insurance Plc.


There were some few reasons behind that strategy formulation process. Eagle Insurance Plc had
a purpose to meet the challenges of a rapidly changing and far more demanding environment.
Therefore this transformation in to a repositioned entity with global brands gave strength to them
on their journey. Global brands have greater opportunity to deliver benefits to their stakeholders
than local entities because of their worldwide expertise and financial power. Therefore the
company could be able to combine the strength of its major shareholders of AVIVA and NDB.
Since February 2006, AVIVA and NDB have been the major shareholders of Eagle with 51%
and 41.15% holdings respectively.


   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
The NDB Group is the second largest shareholder of the company. When considering operational
performances and financial power NDB group positioned as one of the largest financial
performer in Sri Lanka. Specially NDB Bank has taken the place of highest capitalized Sri
Lankan Commercial Bank. They offer Project Finance, Corporate Banking, SME Lending, Retail
Banking, Investment Banking, Stock broking, Wealth Management, Insurance solutions under
one roof. Therefore NDB created significant brand equity to Eagle‟s reposition process.


As well as NDB Group, AVIVA contributed greatly to the transformation process as mentioned
above. Because AVIVA is the world‟s fifth largest Insurance group operating in Europe, North
America & Asia Pacific. Currently they offer long-term savings, fund management and general
Insurance activities.
Few comments made by the top people on this transformation,


Former Managing Director of Eagle Insurance Plc, Deepal Sooriyaarachchi said: “The
transformation does not change the close relationship we have with our valued clients as their
insurer. Our clients can now look forward to a series of globally aligned, more innovative
products and services on the wake of this historic transformation.”


Chief Executive Officer of NDB Bank, Eran Wickramaratne said: “As the fastest growing
highest capitalized Sri Lankan commercial bank, NDB bank enjoys a wide network and strong
ties with customers and our name epitomizes Sri Lankan values as a world class Sri Lankan
Bank.
We are therefore confident that we will instill greater customer trust towards AVIVA NDB. We
have diversity of resources, offering a wide ranging portfolio of financial solutions that maintain
the highest standards of competence and profitability and this will be further enhanced by our
focus on insurance with this transformation.”




   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
Chairman of AVIVA NDB Insurance Plc, Bill Lisie said: “Sri Lanka with a focused
development outlook is an important Asian market for AVIVA and we are confident that this
transformation would result in tangible improvements in every way.
The new strategies envisaged are designed to impact favorably on the transformed company. The
first of a series of many value added services that AVIVA as a global brand is poised to offer
customers in Sri Lanka is the concept of insurance advisors becoming “Wealth Planners” with
skills to satisfy both life and general Insurance needs and in the near future asset management
needs as well.”




Management Change


Top management commitment becomes a major factor towards development of AVIVA NDB
Insurance Plc. Therefore the management changes after reposition was given high impact on the
company‟s operations.
Before the reposition Eagle Insurance as AVIVA NDB Insurance Plc, Mr. Deepal
Sooriyarachchi acts as the Managing Director of the company. He joined with the Eagle
Insurance before 20 years ago and made a dedicated service to the company. During that period
he could able to achieve career and personal aspirations as well.
After leaving of Former Managing Director, Mr. Shah Rouf has appointed as the Chief Executive
Officer (CEO) of AVIVA NDB Insurance Plc. Before his appointments as CEO, he has
performed as member of the AVIVA NDB Insurance Plc‟s board and as an Executive Director.
Mr. Shah Rouf has over 16 years of experience with in the AVIVA Group. He has held
leadership positions in both life and general insurance in AVIVA‟s operations in the UK, India,
Middle-East and Europe.
AVIVA NDB Insurance Plc‟s management changes have made considerable influence on their
business strategies, policies & procedures utilize in the Insurance Industry in Sri Lanka.
(Annexure 04)


   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
AVIVA NDB – ORGANISATION CULTURE & EMPLOYEES


New Organization culture based on Family Oriented and Learning culture strengthen the AVIVA
NDB Insurance Plc‟s financial performances. They believe that their strength lies on the family
oriented culture and it‟s core values. Their core values reflect what is important to them. They
are the cornerstone that encourage and motivate all their employees to work together with
commitment and dedication to give their best to their valued customers. They are,
Progressiveness - Being progressiveness is the vision of the future. It encourages innovation,
improvements and championing continuous learning. It‟s about leading the industry by listening
and responding to customers and keeping ahead the competition.
Performance – Having clear goals and achieving them by everyone working towards in an
efficient manner.
Integrity – Behave in a way consistent with professional and ethical standards. It‟s being open,
honest, keeping commitments, personal responsibility, trust and respect.
Teamwork - Teamwork is their lifeblood. Commit to a common vision and objectives; depend
on one another, pulling together, share knowledge and learning.


Because those core values encourage every one to contribute to the organization success and
excel in the insurance industry in Sri Lanka. Therefore they consider every employee in the
company as a member of the AVIVA NDB family.


In AVIVA NDB Insurance Plc everyone have opportunity for learning and growth. Therefore the
workforce commits to reach that higher level of performance in short time period than before.


Training and Development
According to the top management view the most valuable resource of the company is their work
force. Therefore they place a high emphasis on Human Resource Development. They hold a
policy to build a highly qualified, skilled and motivated team. Base on that goal the company
assigns considerable resources for the Training & Development. Because of that factor the

   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
company renowned as a best employer in Sri Lanka. They believe that the ultimate result of that
HR Development is the company success through providing maximum services to its customers.
(Table 05)


After reposition the Eagle Insurance Plc as AVIVA NDB Insurance Plc, there were some
changes in their Human Resource Development Policies. The major change was introduced in to
their sales force.
Managing Director, Shah Roufe explained, “Our Wealth Planners” are a new category in the
industry and will be competent to offer the best possible advice and solutions to satisfy most of
financial needs of clients.”


Under that new policy AVIVA NDB Insurance Plc, empowered their sales force in order to meet
the both life and general insurance needs and needs of build and protect wealth of their existing
and new customers. As mentioned above they called as “Wealth Planners”. By using that
strategy the company expects to provide all the insurance solutions to their customers by a single
wealth planner. It may be a life insurance; home insurance, motor insurance or unit-linked
investment based insurance products.


Transformation of Eagle Insurance Plc‟s, nearly 3000 sales force, as wealth planners became a
major factor throughout their success story after the reposition as AVIVA NDB Insurance Plc in
order to achieve planned outcomes from their wealth planners the company offer specific level of
world class training and guidance programs.


A noticeable factor is that the company has entered in to a MOU with the University of
Wayamba. Through this MOU they developed a University accredited course to provide a
certificate in Personal Financial Management to their Wealth Planners. Through this they able to
provide a competent professional financial advises to their clients.




    1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
    2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
         Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
    3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
         the selected organization
Director life Distribution, Upul Wijesinghe, explained,” This tie up with the University has
created an opportunity for career development where our “wealth Planners” would have the
opportunity to further progress by acquiring academic qualifications, laying the foundation for a
professionally competent sales force driving the company‟s sustainable performance. This also
seeks to ensure that the sales force designing financial solutions for our clients are equipped to
provide world class professional financial advice.”


Other than that they receive continuous training and skills development programs through their
“Center for Excellence”. This is an in house training facility, which can be considered as the first
In-company training center out side United Kingdom, accepted by CIM- UK. Here they receive
training for professionalism, integrity and dedication to their customers. Regularly the company
sent their top performers for training abroad to gain exposure on sales and customer care
techniques practice around the world. This is benefit they gain from AVIVA‟s global expertise.


The company has proposal to employ their wealth planners with laptops. This generates
advantages of utilizing advance technology through providing efficient and effective services to
their customers. Because that is the important part of the company reposition. The laptops enable
wealth planners to build a sound business relationship with their customers by providing
instantly design financial solutions for unique needs.


AVIVA NDB Insurance plc provides different types of motivational schemes not only for their
wealth planners but also to their entire work force. They offer regular rewords scheme for
recognizing excellence, Annual Quill Award for Quality enhancing teamwork and Managing
Director‟s awards for noticeable individual performances. The main reason behind that
motivational scheme is that they want to build a motivated and committed team in their company
as a path to success. In addition to that they offer regular In- House publications and programs.
As an example Quizzes Programs to enhance knowledge.




   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
Annually they organized several welfare events through their sports club such as Sports Day,
Theatre Day, Christmas Party, Picnics and Social Services Projects. As mention above because
of that family oriented culture with in the company, every employee enjoys world-class offers as
a member of AVIVA NDB family without any discrimination.


Recruitment Process
There are specific processes for recruitment of each type of employees such as management
staff, non management staff and contractual staff.


Management Staff
At that point Staff Requisition Form and the Job Description should be sent by the Hiring
Manager to Senior Executive HR and all new positions should be approved by General Manager-
HR. if there are any replacements should be approved by the Head of the Division.
Recruitment process for management staff consist of four steps. Process begins with a first
interview with Senior Executive-HR and the respective Line Manager. Then successful
candidates from the first interview will under go an assessment center. In this point GM-HR and
the Line Manager will assess the candidate.
Then there is a final interview as the third step. At the last step successful candidate is offered
employment by HRM.


Non Management Staff
Staff Requisition Form should be sent by the Hiring Manager to Senior Executive –HR and all
new positions should be approved by General Manager -HR. if there are any replacements
should be approved by the Head of the Division.
Recruitment process consists of five steps. At the first step there is an Evaluation Test which
consists of English Test and IQ Test. Then successful candidates will have the first interview
with the Senior Executive HR and the Line Manger. At the third step there is an interview with
Manager HR for successful candidates after first interview. Then there is a final interview with


   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
GM-HR and the General manger of the relevant department. Then successful candidate is offered
employment by HRM.


Contractual Staff
At hat point Staff Requisition Form should be sent by the Hiring Manager to senior Executive –
HR and all new positions should be approved by General Manager- HR. if there are any
replacements should be approved by the head of the Division.
There are four steps in recruitment process. At the first step there is an evaluation test consist of
English test and IQ Test. In this case the candidate must obtain a minimum of 50% for each
paper. Then successful candidate will have the first interview with the Senior Executive –HR and
the Line Manager. At the third step there is a final interview with Manager HR and the manager
representative if the outsourced client. Then successful candidate is offered employment by the
outsourced client.


Product Range

AVIVA NDB Insurance Plc arranges their production categories with the focus on individual
and corporate customers needs. Based on those factors they provide professional life and general
insurance needs. With use of new category of insurance sales professional called, “Wealth
Planners”. This is a new feature in their production outcome as well as in the insurance industry
in Sri Lanka.


Before repositioned as AVIVA NDB Insurance Plc, Eagle Insurance Plc provided those life and
general insurance solutions through their sales forces. That was not more talkative feature in the
insurance industry. But nowadays AVIVA NDB Insurance Plc production outcomes are more
innovative and advantageous because of strategic alliance between two global brands that
provides global exposure and stability.




   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
In present, AVIVA NDB Insurance Plc‟s Personal Solutions include Financial Protection Plans,
Dividend Plans, Car Protect Plans, Home Insurance Policies, Title and Travel Insurance Policies.
As well as personal solutions, business solutions also modified because of the new reposition
entity. Aviva NDB Insurance at that moment provides total solution to their corporate customers.
This total solutions combined the important elements such as assets protection, risk management,
employee well being and protection from liabilities.


Therefore the business solutions include Employee Life Insurance Policies, Surgical and
Hospitalization Insurance Policies, Workmen‟s Compensation Insurance, Group life Insurance,
Gratuity Planning Solutions for Employees, Protect from liabilities, E-marine Insurance Services
for Importers & Exporters, Industrial Risk Management Advices & Services, Assets Protection
Insurance, Third Party Liability for Life & Property Insurance. (Annexure 07)




Customer Relationship Management (CRM)

AVIVA NDB Insurance Plc offer best value to its customers. The customer group of the
company includes both individuals as well as business customers. The Customer Relationship
Management (CRM) System of the AVIVA NDB Insurance Plc provides many services to its
customers. They are , practicing the call center customer problem resolution methods, resolving
queries of the first call of the customer, resolving online customer queries, providing customer
guidance counseling, using the well defined grievances address procedures which aim to
resolving complaints within 15 days, providing facilities to download policy statements &
premium renewal receipts through the internet, proving the softcopy of the customers policy
documents before policy goes in force, proving the services of online premium payment through
visa and establishing the self-help kiosks at branch and non-branch locations to facilitate
premium payments & query handling of the customers.



   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
The concept of insurance advisors becoming 'Wealth Planners' is satisfied both Life and General
insurance needs and Asset Management needs of the customers. They also called as “The team
customers can trust”. The Wealth Planners are trained and well equipped to meet both Life and
General insurance needs of the customers. So the Wealth Planners offer the best possible advice
and solutions to satisfy needs of clients. The company will soon start equipping Aviva NDB
Wealth Planners with laptops. This initiative will keep them to providing better services with
advancing technology to serve customers more efficiently and effectively as an integral part of
the Company‟s transformation. The laptops will enable the Wealth Planners to instantly design
the financial solution that meets the unique needs of a customer.


„Bancassurance Awards Night‟ was held in Colombo for the period 2006/2007 for the purpose of
recognize the employees who has high achievement and dedication toward the company and well
served to the customers. Since Eagle became a member of the AVIVA group they pioneered in
Bancassurance in Sri Lanka and it reflect the commitment of providing wider opportunities to the
customers.




Growth & Challenges-Reassuring the public

We know that almost all the insurance companies have same kind of insurance policies. But here
we see that AVIVA NDB Insurance Plc has given higher perceived value than the competitors to
its policies. Other than the normal insurance policies AVIVA NDB Insurance Plc have
introduced an investment planning system. It has 4 unit linked investment fund options. This
gives the flexibility of choosing how the money should be invested in terms of the risk and the
security investment. Customers can choose one or a combination of funds based on the risk and
return mix they would like to utilize for. And also customer can change the funds for investments
twice a year. Those funds are protected fund, secure fund, Balance fund and Growth fund. For
this investment plan customers is getting a life cover up to 2-6 times.


   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
AVIVA NDB Insurance Plc has changed the perception of insurance agent by naming them as
“Wealth planners”. Now known as the “Team you can trust” the wealth planners are trained and
well equipped to meet both life and general insurance needs of customers. These will empowered
AVIVA NDB Insurance Plc‟s sales personal with skills to handle the entire spectrum of
insurance solutions as individual is likely require. The newly transformed wealth planners have
been armed with world class training and guidance, building on the investments the company has
made over the decades to professionalize the sales force. Wealth planners are a new category in
the insurance industry and will be competent to offer the best possible advice and solutions to
satisfy most financial needs of clients. Customers can have the advantage of a single wealth
planner providing whatever insurance solutions they need.


Company has to compete not only with other insurance companies but also with Banks, Finance
Companies etc. That is because of different forms of substitutions. Those are Product – for
Product substitution, Substitution of need and Generic substitution. We can also see that some
companies have divided their market and compete on different bases. These strategic groups can
be seen as Motor Vehicle Insurance, Life Insurance, Marine Insurance, Fire insurance etc. In Sri
Lanka most of the companies have focused on motor vehicle insurance and life insurance.
Janashakthi Full Option, Ceylinco on the Spot and Sri Lanka Insurance Motor Plus are three
competitors for the motor insurance. But we can see that AVIVA NDB Insurance Plc is mainly
focusing on the life insurance and wealth management. When we take life insurance they have to
compete with Ceylinco Life, Sri Lanka Insurance Life Insurance, Janashakthi Life Insurance and
Union Assurance etc. But they have to compete with Banks and other financial institutions for
their wealth management plan. Most of the banks and financial institutions have introduced
pension plans for the same strategic group people who do not have pension, gratuity, provident
fund and Employee‟s Trust Fund. In Sri Lanka most of the people save their money in banks.


Now banks also giving the insurance coverage for their account holders. NSB Pension + and
BOC Infinity are two examples for the same kind of AVIVA NDB Insurance Plc‟s Future gain,
Life bond and Live smart investment plans. Therefore AVIVA NDB Insurance Plc has to change

   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
the perception of Sri Lankan people towards the investment in insurance company. So there is a
tendency that people may select government banks to invest their funds because of the bad
experiences about the private institutions. Therefore AVIVA NDB Insurance Plc has to capture
the market by winning the hearts of the Sri Lankan people.


Aviva NDB uses several methods to advertise their products and services. For example they do
promotions through Television advertisements, Newspaper advertisements, Cutouts, Brochures,
Web, T-Shirts and Caps etc. Aviva NDB‟s core brand values represented in the tri colored logo
that will drive Aviva NDB is Progressiveness, Integrity, Performance and Teamwork.



Corporate Social Responsibility (CSR)

AVIVA NDB Insurance Plc designed its CSR projects strategically in order to provide benefits
to all of its stakeholders, employees, customers and society as a corporate role model and pioneer
of CSR in the Sri Lanka. At the period of Eagle Insurance the company allocates a minimum of
1% of annual profits for CSR projects and after strategic alliance as Aviva NDB, they hope to
continue this policy. As pioneers in the insurance industry they are prudent fund managers.
Because of that they have set up a trust fund to continue their CSR projects in Sri Lanka.


Former Managing Director Eagle Insurance Plc, Deepal Sooriyarachchi, explained,”CSR is
part of the value system which our corporate culture pivots in and our way of life. It goes beyond
business objectives to create a continuous impact on society. Being ethical and socially
responsible is a fundamental core value of the company.”


Head of Marketing & Planning, Amal Perera Explained,” The Company CSR-endeavors are
designed to be relevant to each stage of a person‟s life cycle, driving the nation forward as a
whole.”



   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
The company received Asia Industry Awards foe CSR and has been ranked amongst “Ten Best
Corporate Citizens of Sri Lanka” for the third successive year. This was the only company which
received such award in Insurance Industry. Other than that the company was awarded number
one in Sri Lanka in “Customer Relations” presented by the Ceylon Chamber of Commerce.


The company has given its corporate commitment especially to the area of safety and education
through their CSR projects, the main farsighted focus behind their CSR is the well being of our
society.
As an insurance company, safety is always aligned with the company‟s involvement in risk
management. Therefore this area of activity has recorded many success stories through several
awareness programs. So the company organized their safety awareness programs in order to
identify and address issues relating to personal safety in day to day life and corporate safety
practices.
The company organized safety awareness programs for individual/ families such as Pre school
Teachers seminar on safety, use of fire crackers and fire works, road safety, poster competition
on safety and gave sponsors on safety awareness.


In order to initiate corporate safety the company introduces “National Safety Awards “for the
safest work place, in collaboration with Labor Department and Employee Trust Fund. This was a
tremendous event and this has highly contributed to support and promote safety standards and
work morale .Other than that they distribute educational materials such as posters, booklets,
safety news letters and conduct seminars on safety. Through those programs the company
engages to encourage the corporate sector that “Accidents are Avoidable”. As a responsible
corporate entity AVIVA NDB Insurance Plc give their maximum commitment to contribute
towards the betterment of society. Therefore they put continuing effort on CSR with its policy of
“CSR – SANS – FANFARE”.




   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
In order to promote their corporate commitment towards education sector they organized several
CSR projects such as promoting early childhood intellectual development through “Guru
Pubuduwa Seminars”, Developing Adults by positive thinking through seminars and
sponsorships of TV & Radio Programs, Offering placement opportunities to university students,
developing entrepreneurial skills, recognizing excellence in Arts-“AVIVA NDB Excellence
Awards”, Sponsoring “National Civilian Bravery Awards”.




Corporate Governance

The company awarded 1st place in "Good Corporate Governance Disclosures" in Sri Lanka and
treated as runner-up in the Insurance companies sector. The Awards were presented by the
Institute of Chartered Accountants of Sri Lanka. It is a testimony and a reflection of what their
company stands for, their transparency and ethical stand in society.


Det Norske Veritas (DNV), a leader in third party certification and assessment services including
Corporate Governance (CG), with a global reputation for excellence is headquartered in Norway
and operates in over 100 countries. The review process of corporate governance of AVIVA NDB
Insurance Plc was evaluated under the seven key areas. They are governance policy and business
ethics, risk management, board and management organization, board and executive
compensation, ownership structure and control, investor rights and relations and financial
disclosure and audit.


In the report DNV states that it is their view that Eagle's board and management has a sound
understanding of good governance practices and they are committed to governance as a way of
enhancing brand value; corporate reputation and shareholder value. Ethical aspects are well
addressed and there is a strong emphasis on integrity within the company. Equally, strong risk
management, policies and systems are in place and are embedded throughout the company's
operations.
   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
The process DNV adopted to determine the rating included analysing the preliminary profile of
the company, review of documentation and interviews with the chairman, and other board
members..


Eagle has earned a high overall rating of 8 which DNV stated "reflects both the quality of its
board of directors, the management process and the pro-active approach the company has taken
to establish good governance practices. In now a days AVIVA NDB Insurance Plc continues
those good governance procedures in order to satisfy the expectations of their stakeholders,
employees and customers as well.



Service Standards on key services
AVIVA NDB Insurance plc maintains the service standards for national distribution in three
areas such as sales administration, Intermediary services and management information. Because
they believe that the service standards will be the key to success. Those service standards are
practised during providing key services mention as follows.


Key Service                                     Service Standard
-New Appointments                               All completed applications received from 1st to 20th of a
                                                month will be processed within 2 days of receipt at Sales
                                                Administration Unit (SAU). Activation of codes will be
                                                made within 1 day of receipt of the signed contract copy at
                                                SAU.
-Promotions/Demotions                           All completed request will be processed within 5 working
                                                days.
-Policy Transfers                               Application received at SAU during 1st to 20th of a month
                                                will be processed with in 3 working days. An extended



   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
period of 5 working days will be required for the request
                                                 received during peak period.
-Superannuation Withdrawals                      Will be processed and forwarded for payment with in 4
                                                 working days of receipt of the request sent from regional
                                                 office.
-Loans                                           All completed loan application received during 6th to 31st of
                                                 a given month, will be issued with in 3 working days.
                                                 Loans will not be processed with in the first 5 working days
                                                 of a month due to system limitations. However urgent
                                                 payment will be processed with in this period upon special
                                                 approval, on a case by case basis.
-Management Information (MI)                     Before 12th day of the month.
 Reports
-Competitions                                    1.5 months to 2 months
    -Realising the final list after probable
    -Provide MI and knowledge based on past experience to design new competitions
    -Suggest the competitions by analysing the business patterns


-Orphan Policy Management                        With in 5 working days should cover all processes
-Production Transfer                             Within 5 working days should cover all processes




   1.    This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.    We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
         Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.    This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
         the selected organization
Future Direction- a sound future Strategy

Banc-assurance Partnership

As an extension of Eagle‟s banc-assurance partnership with Sampath Bank, two Life Insurance
products were launched for Sampath Bank customers who were previously able to obtain
General Insurance products underwritten by Eagle. Now both Life and General Insurance
products are available at Sampath Bank Branches.


This is a value added services to Sampath bank‟s customers. Now General Insurance banc-
assurance products are already being marked successfully through the branches. Customers now
have the added facility to obtain Life Insurance products for investments and financial protection
needs. The banc-assurance partnership with Sampath Bank will make things so much easier for
customers who wish to enjoy banking services whilst obtaining Life and General Insurance
products without a hassle.
With the launch of the Life insurance range, customers can avail themselves of two financial
solutions. One financial solution offered, is ideal for customers who cannot commit for a long
term premium outlay. Premium payment is only for five years for a policy that spans 10 to 30
years. Life covers five times the annual premium .with this product one can now ensure that his
or her child‟s dream of higher education is secure or plan ahead for a comfortable retirement.


The other financial solution available through this banc-assurance partnership is a product which
ensures adequate financial protection of policyholders who may presently own an insurance
policy. This product also offers customers a limited premium paying period. This non premium
paying period helps policyholders enjoy peace of mind, allowing them to meet other financial
commitments with complete confidence.




   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
Our Journey from “GOOD TO GREAT”
“Hedgehog” is their main differentiating capability, which will be the ability to maximize the
value from each and every customer contact we have, at which point we make a new sale, up
sale, cross sale or collect the information and relevant with future sale with a moment of truth.




   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
Annexure
01. Insurance Industry




                                      (Source- IBSL Annual report 2009)




   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
(Source- IBSL Annual report 2009)
Table -01




        (Source- IBSL Annual report 2009)




                        (Source- IBSL Annual report 2009)

   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
(Source- IBSL Annual report 2009)




Table – 02
Insurance Industry GWP
Industry GWP (LKR.Mn)                    2005              2006                2007                   2008
          Life                          14,806           17,104               20,729                23,613
         General                        22,410           25,931               31,156                34,555
       Growth (%)
          Life                             18               16                   21                    14
         General                           32               16                   20                    11

                                         (Source- IBSL Annual report, 2009)
  1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
  2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
       Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
  3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
       the selected organization
02. Financial Condition

FINANCIAL STATEMENT -2009
BALANCE SHEET                                                           2009                2008
As at 31st December
                                                                    LKR '000            LKR '000
ASSETS

Investments                                                         17,757,035          14,739,110

Investments - Unit Linked                                            1,330,852            473,706

Intangible Assets                                                      86,173             104,144

Investments In Subsidiaries                                            1,000               51,000

Property, Plant & Equipment                                           237,772             271,976

Other Fund Assets                                                     190,769             187,501

Policy Loans & Other Loans                                           1,634,964           1,530,502

Deferred Tax Asset                                                    128,157              57,044

Reinsurance Receivable                                                502,704             492,291

Amount Due From Subsidiaries                                           1,863                 858

Trade Receivable                                                      846,970             575,487

Other Assets                                                         1,132,147            802,178

Cash & Cash Equivalents                                               540,566             419,546

Cash & Cash Equivalents- Unit Linked                                   30,214              21,054

TOTAL ASSETS                                                       24,421,186          19,726,397
LIABILIES AND SHAREHOLDERS
EQUITY
Liabilities

Insurance Provision- Long Term Conventional                         16,686,639          13,989,661
   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
Insurance Provision- Long Term Unit Linked                           1,361,066            494,760

Provision For Life Funs Solvency                                      175,000             175,000

Insurance Provision- General                                         1,865,820           1,447,620

Other Funds                                                           190,769             187,501

Amount Due To Subsidiaries                                                 -                7,552

Reinsurance Creditors                                                 290,298             309,869

Income Tax Liability                                                  236,238             115,686

Other Liability                                                      1,039,869            835,081

Total Liabilities                                                   21,845,699          17,562,730
Shareholders’ Equity

Stated Capital                                                        300,000             300,000

Capital Reserve                                                        39,916              39,916

Revenue Reserve                                                      2,235,571           1,823,751

 Total Shareholders' Equity                  2,575,487    2,163,667
 TOTAL LIABILIES AND
 SHAREHOLDERS EQUITY                        24,421,186    19,726,397
(Source- Annual Report of the AVIVA NDB Insurance Plc, 2009)




INCOME STATEMENT
 For the year ended 31st December                          2009                  2008
                                                         LKR '000              LKR '000

Revenue                                                   9,702,796            7,224,859


Gross Written Premium                                     7,136,118            6,387,470

Reinsurance Premium                                      (1,014,659)           (1,060,685)
   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
Net Written Premium                                      6,121,459           5,326,785
Net Change in Reserve For Unearned
Premium                                                  (436,755)            (67,653)

Net Earned Premium                                       5,684,704           5,259,132
Benefits, Losses & Expenses

Net Claims & Benefits                                   (2,661,492)         (2,373,154)

Commission (Net of Reinsurance
Commission)                                              (602,319)           (552,499)

Deferred Commission                                        41,916               8,074

Increase In Long Term Insurance Fund                    (3,563,284)         (2,178,018)

                                                        (1,100,475)           163,535
Other Revenue
Asset Management fees & Related
Income                                                         -                   -

Investment Income                                        3,811,093           1,716,752

Other Income                                              206,999             248,975
Expenses

Operating & Administration Expenses                     (1,910,897)         (1,559,349)


Profit Before Taxation                                   1,006,720            569,913


Tax Expenses                                             (219,900)           (126,274)


Net Profit For The Year                                   786,820             443,639


Basic Earnings Per Share (LKR)                              26.23               14.79

Dividend Per Share(LKR)               12.50         3.00
(Source- Annual Report of the AVIVA NDB Insurance Plc, 2009)

  1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
  2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
       Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
  3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
       the selected organization
Table – 03
Financial Condition

  Year                 Profit                Basic               Market         Share                      Dividend
                                             Earnings            Capitalization Holder
                                             Per Share           (LKR.Mn)       Equity
                                             (LKR.)
                       Before Tax                                                       (LKR.Mn)           Per
                                                                                                           Share(LKR)
        2005                  528                 17.18                2,550                1,467              4.17
        2006                  539                 17.45                4,065                1,743              8.25
        2007                  546                 17.57                4,523                2,025              9.5
        2008                  570                 14.79                3,450                2,224               3
        2009                 1007                 26.23                5,340                2,565              12.5

(Source- Annual Report of the AVIVA NDB Insurance Plc, 2009)


Table – 04
Gross Written Premium

                              Year                    Gross Written
                                                      Premium(LKR.Mn)
                                                      General                  Life
                                                      Insurance                Insurance
                                     2005                    1,211                  2,832
                                     2006                    1,468                  3,150
                                     2007                    1,867                  3,788
                                     2008                    2,045                  4,342
                                     2009                    2,504                  4,632

                (Source- Annual Report of the AVIVA NDB Insurance Plc, 2009)




   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
Table – 05
Individual Premium

                                                                         As at June         As at June
                                                      Plan 2007             2007               2006             Growth %


FYP(Mn)                                                1,077.00            410.00              374.80                9.4


Bancassuransce(Mn)                                       171.00            144.00                7.10                  -


Renewal(Mn)                                            2,520.00           1,132.00            1,039.90               8.9


GWP(Mn)                                                3,768.00           1,686.00            1,421.80               18.6
(Source- Web Site of the AVIVA
NDB Insurance Plc)




Table - 06
Corporate Premium-GWP

                                                            Plan         As at June         As at June
                                                            2007            2007               2006             Growth %

New                                                          6.00            0.30                1.80               -83.3

Renewal                                                    140.40           27.70               42.90               -35.4

Total                                                      146.40           28.00               44.70                37.4
(Source- Web Site of the AVIVA NDB
Insurance Plc)



  1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
  2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
       Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
  3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
       the selected organization
Table -07
Total Premium(Individual)


                                               Target                       Achieve                 %


                                         3,914.00                        1,714.00                 43.7




(Source –Web Site of the AVIVA NDB Insurance Plc)

Table -08
Comparison Of Business Performance As at June

                                             2007                       2006                  Growth %

APE                                           694                        504                       38

1st YY Premium                                410                        375                        9

GWP                                          1714                       1466                       17

No of Policies                               30208                      21933                      38

Average Premium                              22966                      22985                       0




(Source- Web Site of the AVIVA NDB Insurance Plc


03. Milestones of AVIVA NDB Insurance Plc in year 2009

       April - Reduced festival accidents from fire crackers.
       Mar 22 - Awards of excellence.
       June 2 - Celebrating AVIVA Day.
       June3 - Employee volunteer leave program.
       June9 - Extending AVIVA Samana.
       June7 - Poson Safety Campaign in Anuradhapura.
       July 16- Life Protect.
       October 01 – Customers can pay life insurance premiums at National Savings Bank.
       October 05- Expansion of the life products range at Sampath Bancassurance.
       October 26- Jaffna, now covered by AVIVA NDB Insurance.
   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
    November 19- AVIVA NDB bring up peace of mind to Batticaloa.
       November 25- A Silver Award for the Annual Report.
       November 30- 9th batch of Highfliers receive scholarship benefits.
       December 19- AVIVA NDB expands further to Vauniya.

        (Source- Annual Report of the AVIVA NDB Insurance Plc, 2009)


04. Board of Directors of AVIVA NDB Insurance Plc

       Mr. Bill Lisle – Chairman
       Mr. Shah Rouf – Managing Director
       Mr. Deepal Sooriyaarchchi – Executive Director
       Mr. Harvey Chamberlain – Non Executive Director
       Mr. David Hope– Non Executive Director
       Mr. Eran Wickramarathne– Non Executive Director
       Mr. Sarath Wickremanayake
       Mr. Lal De Mel– Non Executive Director
       Mr. Indrajith Wickramasinghe– Non Executive Director

        (Source- Annual Report of the AVIVA NDB Insurance Plc, 2009)

05. Senior Management

       Mr. Shah Rouf
       Mr. Upul Wijesinghe
       Mr. Ainsley Alles
       Mr. Kelum Senanayake
       Ms. Chathuri Munaweera
       Mr. Gehan Rajapaksha
       Ms. Leilamani Perera

        (Source- Annual Report of the AVIVA NDB Insurance Plc, 2009)



06. Employees of AVIVA NDB Insurance Plc

        Table -05 -Employees of AVIVA NDB Insurance Plc

                                         Year                 No of Employees
                                         2005                       447
                                         2006                       531
                                         2007                       638
   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
2008               725
                              2009               786
         (Source- Web Site [www.avivandb.com] of the AVIVA NDB Insurance Plc)




07. Business Solutions

   1.   Employee Life Insurance
   2.   Surgical and Hospitalization Insurance
   3.   Workmen‟s Compensation Insurance
   4.   Group Life Insurance
   5.   Gratuity Planning Solutions for Employees
   6.   Protection from Liabilities(Public, Product and Employee)
   7.   E-marine Insurance Services for Importers and Exporters
   8.   Industrial Risk Management Advices and Services
           a) Property Risk Assessment
           b) Loss Investigation
           c) Hazard Analysis
           d) Occupational Health and Safety Management
           e) Risk Management Communication
           f) Safety Training Programs
           g) Claims Management Services
                       -Surgical and Hospitalization Claims
                       -Workmen‟s Compensation
                       -Personal Accident Claims
                       -Marine Claims
                       -Property Claims

   9. Assets Protection Insurance
         a) Engineering Class Insurance (Protection against Fire/Lighting, Explosion,
             Malicious, Damage, Floods, Storms, Theft, Accidental Damage, Riot/Strike,
             Terrorism, Clearance of Debris)

   10. Third Party liability for Life and Property
          a) Fire Class Insurance (Fire and Allied peril Insurance)
          b) Business Protection Insurance
          c) Marine Class Insurance (Marine Cargo)
          d) Miscellaneous Class (Business premises, Glass, Money in Transit)
   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
(Source- Web Site [www.avivandb.com] of the AVIVA NDB Insurance Plc)




08. AVIVA NDB Insurance Plc- Branches




   1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
   2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
        Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
   3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
        the selected organization
(Source- Web Site [www.avivandb.com] of the AVIVA NDB Insurance Plc)




1.   This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S.
2.   We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal
     Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon.
3.   This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of
     the selected organization

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Transformation aviva ndb

  • 1. THE CASE STUDY 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 2. ACKNOWLEDGEMENT We would like to express the deepest appreciation to manager human resources Mr:Rukmal Bandaranayke, who has the attitude and the substance of a genius. He continually and convincingly conveyed a spirit of adventure in regard to this “case study” effort. Without his guidance and persistent help this assignment would not have been possible. We would like to thank my course facilitators of integrative studies (BUS4306) Mr Rukmal Weerasingha and special gratitude for Mrs Gayani Samarakoon, who always transcend academia and provide a quest for our times. In addition, a thank for my group colleagues for being the strategic partners of “CASE STUDY”, and whose enthusiasm for the “TWICE THE VALUE OF THE CASE STUDY” had lasting effect 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 3. Insurance Industry The insurance industry was nationalized in 1961, by the government taking over a number of insurance companies operating in the country at that time. These included a large number of local as well as representative offices of foreign insurance companies. The state monopoly of the insurance industry continued till 1986 with the Sri Lanka Insurance Corporation acting as the only supplier of insurance. This was converted to a state controlled oligopoly with the creation of the National Insurance Corporation. In 1987 as a result of the adoption of a market based economic policy by the Government, the insurance sector was opened out to the private sector. The industry was previously regulated by a Controller of insurance, but now is under purview of the Insurance Board of Sri Lanka which has been vested with greater powers to regulate the industry. The insurance industry has performed well despite the global recession recording growth in the long term and general insurance sectors. In 2009, the long term insurance contributed for Rs. 62,078,117 million and general insurance Rs. 15,441,944 million. In comparison in 2008 long term insurance contributed for Rs. 48,405,115 million and general insurance Rs. 15,955,553 million. The insurance industry penetration is 10 percent. The insurance industry is regulated in terms of the provisions of the Regulation of Insurance Industry Act, No.43 of 2000 (RII Act). The Insurance Board of Sri Lanka (IBSL) was established under this Act in order to develop, supervise and regulate the insurance industry in Sri Lanka. Over the past year, the IBSL has embarked upon several activities to develop, supervise and regulate the insurance industry with a view to ensuring that the best interest of the policyholders and potential policyholders. During the previous year (2009), the IBSL has strengthened its monitoring process in order to ensure the financial stability of insurance companies and insurance brokers. Eleven of them are composite companies, five of them engage in General Insurance business and two companies engage only in Long Term (Life) Insurance business. When a company is registered to transact in both Life Insurance and General Insurance business, those companies are recognized as composite companies. During the period under review, 43 insurance broking companies were registered. This economic performance has to be considered 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 4. as a very satisfactory achievement considering the global economic recession that was prevalent during the last year. However, the overall gross written premium on insurance has not increased accordingly. The Gross Written Premium (GWP) from Long Term (Life) and General Insurance Business in 2009 is added up to Rs. 57,919 million. In the year 2008, the overall gross written premium was Rs.58, 166 million in Sri Lankan insurance industry. (Annexure 01) History Aviva NDB Insurance PLC, former known as Eagle Insurance PLC. It is a life and general insurance company in Sri Lanka and its parent company is Aviva NDB Finance Lanka (PVT) Ltd. The Group's principal activities are to provide Life and Non-life Insurance Services, Asset Management, Trustee and Administration Services. It provides Non-life Insurance for Accident, Fire, Marine, Motor and Terrorism etc. Eagle Insurance commenced the business when industry is open to private sector in Sri Lanka. Eagle Insurance Company had been founded in 1988 as a subsidiary of Ceylon Tobacco Company (CTC) who is the main shareholder and with the collaboration of British American Tobacco (BAT) Insurance Business in UK. It underwent a number of changes in ownership until Aviva acquired the majority shareholding. In 1999, the Eagle Insurance Company became part of the Zurich Financial Services Group based in Switzerland, when BAT Industries divested its financial services businesses to Zurich as part of its global strategy. So Eagle joined with Zurich Financial Group who is the world leader in providing financial services. Zurich Financial Services Company was founded in 1872 as subsidiary of the Schweiz Marine Insurance Company. The Company changed its name to Zurich General Accident and Liability Insurance in 1894. In 1998 the Company acquired British American Financial Services; a business owned by BAT Industries. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 5. The National Development Bank (NDB) – Sri Lanka‟s leading development bank – became the major local shareholder since 1997. NDB Group offers project finance, corporate banking, SME lending, retail banking, investment banking, stock broking, wealth management and insurance solutions under one roof. The shareholding changed once again in 2003 when NDB Bank, through its investor company, the Capital Development and Investment Company (CDIC) acquired the majority shareholding of Eagle Insurance due to the withdrawal of Sri Lankan operations by Zurich Financial Services group. Eagle Insurance Plc‟s second-largest shareholder NDB Bank, through its investment arm CDIC, took up 100% control in Eagle Insurance by acquiring the partnership share of Zurich in NDB Finance Lanka in 1997 and controlling stake in Eagle Insurance‟s fully owned subsidiary, Eagle NDB Fund Management Company (ENDB). How ever on 1st February 2006, CDIC divested a 58.4% stake of in NDB Finance Lanka to Aviva International Holdings (AVIVA) while handing over the management to AVIVA. Aviva is the world's oldest insurance group, with a history dating back nearly 300 years to 1696. Today it is the world's fifth-largest insurance group and the biggest in the UK. They are the leading providers of life and pension products in United Kingdom. Aviva has 59,000 employees serving over 50 million customers across Europe, North America and the Asia Pacific. Aviva's principal business activities are long-term savings, fund management and general insurance and their aim is make the global brand. Aviva's long-term savings products and services are distributed through a multi-channel network, which includes a direct sales force, insurance intermediaries and banc assurance partners. Since February 2006, Aviva and NDB have been the main shareholders of Eagle with 51% and 41.15% holding respectively when they took a majority stake in Eagle Insurance. The principal minority share was held by Eagle's new bancassurance partner, National Development Bank (NDB).The combined expertise resulting from this unique partnership offers the confidence of world class financial solutions while upholding Sri Lankan values. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 6. This new acquisition emphasizing that Eagle's customers will continue to enjoy the professionalism, prudence, good governance, transparency and corporate responsibility that have been the cornerstones since the company's inception in 1988 Aviva NDB Plc is the fifth-largest insurer in the Sri Lankan general insurance market with a 6% market share and also has a 19% share of the life insurance market and enjoy bancassurance agreements with National Development Bank (NDB) and Standard Chartered Bank. Aviva also noted that its new acquisition has "entered into a bancassurance agreement with National Development Bank Limited (NDB), Sri Lanka's biggest development bank and Eagle's other major shareholder." Presently Eagle and Union Assurance Limited (UAL) control about 29.0% and 73.0% of Sri Lanka‟s Life and general insurance business respectively. Mid Career of the Organization Eagle Insurance Plc The Proud Wings of The Eagle have symbolized an unweaving and strong commitment towards customer service excellence in Sri Lanka. As a composite Insurer and Fund Manager, the company offers wide portfolio of Life, Non life, Fund management and Mutual Fund/Unit Trust Solutions for individual and corporate customers. The company has earned a commendable reputation for its prudent, professional management and demonstrated a high level of social responsibility and good governance in all its endeavors. Vision – “To be a world class provider of financial solutions for protection and wealth creation” Mission – “To be the most sought after Insurer and Fund Manager in Sri Lanka for security, Return Optimization and Excellence in Services, Achieving Leadership in identified segments of the market 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 7. Core Values  Accepting Risk with Responsibility  Being Ethical and Social Responsibility  Innovation  Dedication to Customers  Encouraging Everybody to contribute and Excel Rebuilding the Business - Transformation Eagle Insurance Plc transform in to AVIVA NDB Insurance plc Eagle Insurance PLC has transformed in to AVIVA NDB Insurance Plc as a reposition entity. It was a decisive and timely step that they take and this transformation could be able to create a milestone in the history of Insurance Industry in Sri Lanka. In this transformation process AVIVA took the major step. Because they need to strength their global brand strategy of, becoming “one AVIVA” across the globe. Therefore they proposed to combine the name “NDB” together with the name AVIVA to transform Eagle Insurance Plc into AVIVA NDB Insurance Plc. There were some few reasons behind that strategy formulation process. Eagle Insurance Plc had a purpose to meet the challenges of a rapidly changing and far more demanding environment. Therefore this transformation in to a repositioned entity with global brands gave strength to them on their journey. Global brands have greater opportunity to deliver benefits to their stakeholders than local entities because of their worldwide expertise and financial power. Therefore the company could be able to combine the strength of its major shareholders of AVIVA and NDB. Since February 2006, AVIVA and NDB have been the major shareholders of Eagle with 51% and 41.15% holdings respectively. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 8. The NDB Group is the second largest shareholder of the company. When considering operational performances and financial power NDB group positioned as one of the largest financial performer in Sri Lanka. Specially NDB Bank has taken the place of highest capitalized Sri Lankan Commercial Bank. They offer Project Finance, Corporate Banking, SME Lending, Retail Banking, Investment Banking, Stock broking, Wealth Management, Insurance solutions under one roof. Therefore NDB created significant brand equity to Eagle‟s reposition process. As well as NDB Group, AVIVA contributed greatly to the transformation process as mentioned above. Because AVIVA is the world‟s fifth largest Insurance group operating in Europe, North America & Asia Pacific. Currently they offer long-term savings, fund management and general Insurance activities. Few comments made by the top people on this transformation, Former Managing Director of Eagle Insurance Plc, Deepal Sooriyaarachchi said: “The transformation does not change the close relationship we have with our valued clients as their insurer. Our clients can now look forward to a series of globally aligned, more innovative products and services on the wake of this historic transformation.” Chief Executive Officer of NDB Bank, Eran Wickramaratne said: “As the fastest growing highest capitalized Sri Lankan commercial bank, NDB bank enjoys a wide network and strong ties with customers and our name epitomizes Sri Lankan values as a world class Sri Lankan Bank. We are therefore confident that we will instill greater customer trust towards AVIVA NDB. We have diversity of resources, offering a wide ranging portfolio of financial solutions that maintain the highest standards of competence and profitability and this will be further enhanced by our focus on insurance with this transformation.” 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 9. Chairman of AVIVA NDB Insurance Plc, Bill Lisie said: “Sri Lanka with a focused development outlook is an important Asian market for AVIVA and we are confident that this transformation would result in tangible improvements in every way. The new strategies envisaged are designed to impact favorably on the transformed company. The first of a series of many value added services that AVIVA as a global brand is poised to offer customers in Sri Lanka is the concept of insurance advisors becoming “Wealth Planners” with skills to satisfy both life and general Insurance needs and in the near future asset management needs as well.” Management Change Top management commitment becomes a major factor towards development of AVIVA NDB Insurance Plc. Therefore the management changes after reposition was given high impact on the company‟s operations. Before the reposition Eagle Insurance as AVIVA NDB Insurance Plc, Mr. Deepal Sooriyarachchi acts as the Managing Director of the company. He joined with the Eagle Insurance before 20 years ago and made a dedicated service to the company. During that period he could able to achieve career and personal aspirations as well. After leaving of Former Managing Director, Mr. Shah Rouf has appointed as the Chief Executive Officer (CEO) of AVIVA NDB Insurance Plc. Before his appointments as CEO, he has performed as member of the AVIVA NDB Insurance Plc‟s board and as an Executive Director. Mr. Shah Rouf has over 16 years of experience with in the AVIVA Group. He has held leadership positions in both life and general insurance in AVIVA‟s operations in the UK, India, Middle-East and Europe. AVIVA NDB Insurance Plc‟s management changes have made considerable influence on their business strategies, policies & procedures utilize in the Insurance Industry in Sri Lanka. (Annexure 04) 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 10. AVIVA NDB – ORGANISATION CULTURE & EMPLOYEES New Organization culture based on Family Oriented and Learning culture strengthen the AVIVA NDB Insurance Plc‟s financial performances. They believe that their strength lies on the family oriented culture and it‟s core values. Their core values reflect what is important to them. They are the cornerstone that encourage and motivate all their employees to work together with commitment and dedication to give their best to their valued customers. They are, Progressiveness - Being progressiveness is the vision of the future. It encourages innovation, improvements and championing continuous learning. It‟s about leading the industry by listening and responding to customers and keeping ahead the competition. Performance – Having clear goals and achieving them by everyone working towards in an efficient manner. Integrity – Behave in a way consistent with professional and ethical standards. It‟s being open, honest, keeping commitments, personal responsibility, trust and respect. Teamwork - Teamwork is their lifeblood. Commit to a common vision and objectives; depend on one another, pulling together, share knowledge and learning. Because those core values encourage every one to contribute to the organization success and excel in the insurance industry in Sri Lanka. Therefore they consider every employee in the company as a member of the AVIVA NDB family. In AVIVA NDB Insurance Plc everyone have opportunity for learning and growth. Therefore the workforce commits to reach that higher level of performance in short time period than before. Training and Development According to the top management view the most valuable resource of the company is their work force. Therefore they place a high emphasis on Human Resource Development. They hold a policy to build a highly qualified, skilled and motivated team. Base on that goal the company assigns considerable resources for the Training & Development. Because of that factor the 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 11. company renowned as a best employer in Sri Lanka. They believe that the ultimate result of that HR Development is the company success through providing maximum services to its customers. (Table 05) After reposition the Eagle Insurance Plc as AVIVA NDB Insurance Plc, there were some changes in their Human Resource Development Policies. The major change was introduced in to their sales force. Managing Director, Shah Roufe explained, “Our Wealth Planners” are a new category in the industry and will be competent to offer the best possible advice and solutions to satisfy most of financial needs of clients.” Under that new policy AVIVA NDB Insurance Plc, empowered their sales force in order to meet the both life and general insurance needs and needs of build and protect wealth of their existing and new customers. As mentioned above they called as “Wealth Planners”. By using that strategy the company expects to provide all the insurance solutions to their customers by a single wealth planner. It may be a life insurance; home insurance, motor insurance or unit-linked investment based insurance products. Transformation of Eagle Insurance Plc‟s, nearly 3000 sales force, as wealth planners became a major factor throughout their success story after the reposition as AVIVA NDB Insurance Plc in order to achieve planned outcomes from their wealth planners the company offer specific level of world class training and guidance programs. A noticeable factor is that the company has entered in to a MOU with the University of Wayamba. Through this MOU they developed a University accredited course to provide a certificate in Personal Financial Management to their Wealth Planners. Through this they able to provide a competent professional financial advises to their clients. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 12. Director life Distribution, Upul Wijesinghe, explained,” This tie up with the University has created an opportunity for career development where our “wealth Planners” would have the opportunity to further progress by acquiring academic qualifications, laying the foundation for a professionally competent sales force driving the company‟s sustainable performance. This also seeks to ensure that the sales force designing financial solutions for our clients are equipped to provide world class professional financial advice.” Other than that they receive continuous training and skills development programs through their “Center for Excellence”. This is an in house training facility, which can be considered as the first In-company training center out side United Kingdom, accepted by CIM- UK. Here they receive training for professionalism, integrity and dedication to their customers. Regularly the company sent their top performers for training abroad to gain exposure on sales and customer care techniques practice around the world. This is benefit they gain from AVIVA‟s global expertise. The company has proposal to employ their wealth planners with laptops. This generates advantages of utilizing advance technology through providing efficient and effective services to their customers. Because that is the important part of the company reposition. The laptops enable wealth planners to build a sound business relationship with their customers by providing instantly design financial solutions for unique needs. AVIVA NDB Insurance plc provides different types of motivational schemes not only for their wealth planners but also to their entire work force. They offer regular rewords scheme for recognizing excellence, Annual Quill Award for Quality enhancing teamwork and Managing Director‟s awards for noticeable individual performances. The main reason behind that motivational scheme is that they want to build a motivated and committed team in their company as a path to success. In addition to that they offer regular In- House publications and programs. As an example Quizzes Programs to enhance knowledge. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 13. Annually they organized several welfare events through their sports club such as Sports Day, Theatre Day, Christmas Party, Picnics and Social Services Projects. As mention above because of that family oriented culture with in the company, every employee enjoys world-class offers as a member of AVIVA NDB family without any discrimination. Recruitment Process There are specific processes for recruitment of each type of employees such as management staff, non management staff and contractual staff. Management Staff At that point Staff Requisition Form and the Job Description should be sent by the Hiring Manager to Senior Executive HR and all new positions should be approved by General Manager- HR. if there are any replacements should be approved by the Head of the Division. Recruitment process for management staff consist of four steps. Process begins with a first interview with Senior Executive-HR and the respective Line Manager. Then successful candidates from the first interview will under go an assessment center. In this point GM-HR and the Line Manager will assess the candidate. Then there is a final interview as the third step. At the last step successful candidate is offered employment by HRM. Non Management Staff Staff Requisition Form should be sent by the Hiring Manager to Senior Executive –HR and all new positions should be approved by General Manager -HR. if there are any replacements should be approved by the Head of the Division. Recruitment process consists of five steps. At the first step there is an Evaluation Test which consists of English Test and IQ Test. Then successful candidates will have the first interview with the Senior Executive HR and the Line Manger. At the third step there is an interview with Manager HR for successful candidates after first interview. Then there is a final interview with 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 14. GM-HR and the General manger of the relevant department. Then successful candidate is offered employment by HRM. Contractual Staff At hat point Staff Requisition Form should be sent by the Hiring Manager to senior Executive – HR and all new positions should be approved by General Manager- HR. if there are any replacements should be approved by the head of the Division. There are four steps in recruitment process. At the first step there is an evaluation test consist of English test and IQ Test. In this case the candidate must obtain a minimum of 50% for each paper. Then successful candidate will have the first interview with the Senior Executive –HR and the Line Manager. At the third step there is a final interview with Manager HR and the manager representative if the outsourced client. Then successful candidate is offered employment by the outsourced client. Product Range AVIVA NDB Insurance Plc arranges their production categories with the focus on individual and corporate customers needs. Based on those factors they provide professional life and general insurance needs. With use of new category of insurance sales professional called, “Wealth Planners”. This is a new feature in their production outcome as well as in the insurance industry in Sri Lanka. Before repositioned as AVIVA NDB Insurance Plc, Eagle Insurance Plc provided those life and general insurance solutions through their sales forces. That was not more talkative feature in the insurance industry. But nowadays AVIVA NDB Insurance Plc production outcomes are more innovative and advantageous because of strategic alliance between two global brands that provides global exposure and stability. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 15. In present, AVIVA NDB Insurance Plc‟s Personal Solutions include Financial Protection Plans, Dividend Plans, Car Protect Plans, Home Insurance Policies, Title and Travel Insurance Policies. As well as personal solutions, business solutions also modified because of the new reposition entity. Aviva NDB Insurance at that moment provides total solution to their corporate customers. This total solutions combined the important elements such as assets protection, risk management, employee well being and protection from liabilities. Therefore the business solutions include Employee Life Insurance Policies, Surgical and Hospitalization Insurance Policies, Workmen‟s Compensation Insurance, Group life Insurance, Gratuity Planning Solutions for Employees, Protect from liabilities, E-marine Insurance Services for Importers & Exporters, Industrial Risk Management Advices & Services, Assets Protection Insurance, Third Party Liability for Life & Property Insurance. (Annexure 07) Customer Relationship Management (CRM) AVIVA NDB Insurance Plc offer best value to its customers. The customer group of the company includes both individuals as well as business customers. The Customer Relationship Management (CRM) System of the AVIVA NDB Insurance Plc provides many services to its customers. They are , practicing the call center customer problem resolution methods, resolving queries of the first call of the customer, resolving online customer queries, providing customer guidance counseling, using the well defined grievances address procedures which aim to resolving complaints within 15 days, providing facilities to download policy statements & premium renewal receipts through the internet, proving the softcopy of the customers policy documents before policy goes in force, proving the services of online premium payment through visa and establishing the self-help kiosks at branch and non-branch locations to facilitate premium payments & query handling of the customers. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 16. The concept of insurance advisors becoming 'Wealth Planners' is satisfied both Life and General insurance needs and Asset Management needs of the customers. They also called as “The team customers can trust”. The Wealth Planners are trained and well equipped to meet both Life and General insurance needs of the customers. So the Wealth Planners offer the best possible advice and solutions to satisfy needs of clients. The company will soon start equipping Aviva NDB Wealth Planners with laptops. This initiative will keep them to providing better services with advancing technology to serve customers more efficiently and effectively as an integral part of the Company‟s transformation. The laptops will enable the Wealth Planners to instantly design the financial solution that meets the unique needs of a customer. „Bancassurance Awards Night‟ was held in Colombo for the period 2006/2007 for the purpose of recognize the employees who has high achievement and dedication toward the company and well served to the customers. Since Eagle became a member of the AVIVA group they pioneered in Bancassurance in Sri Lanka and it reflect the commitment of providing wider opportunities to the customers. Growth & Challenges-Reassuring the public We know that almost all the insurance companies have same kind of insurance policies. But here we see that AVIVA NDB Insurance Plc has given higher perceived value than the competitors to its policies. Other than the normal insurance policies AVIVA NDB Insurance Plc have introduced an investment planning system. It has 4 unit linked investment fund options. This gives the flexibility of choosing how the money should be invested in terms of the risk and the security investment. Customers can choose one or a combination of funds based on the risk and return mix they would like to utilize for. And also customer can change the funds for investments twice a year. Those funds are protected fund, secure fund, Balance fund and Growth fund. For this investment plan customers is getting a life cover up to 2-6 times. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 17. AVIVA NDB Insurance Plc has changed the perception of insurance agent by naming them as “Wealth planners”. Now known as the “Team you can trust” the wealth planners are trained and well equipped to meet both life and general insurance needs of customers. These will empowered AVIVA NDB Insurance Plc‟s sales personal with skills to handle the entire spectrum of insurance solutions as individual is likely require. The newly transformed wealth planners have been armed with world class training and guidance, building on the investments the company has made over the decades to professionalize the sales force. Wealth planners are a new category in the insurance industry and will be competent to offer the best possible advice and solutions to satisfy most financial needs of clients. Customers can have the advantage of a single wealth planner providing whatever insurance solutions they need. Company has to compete not only with other insurance companies but also with Banks, Finance Companies etc. That is because of different forms of substitutions. Those are Product – for Product substitution, Substitution of need and Generic substitution. We can also see that some companies have divided their market and compete on different bases. These strategic groups can be seen as Motor Vehicle Insurance, Life Insurance, Marine Insurance, Fire insurance etc. In Sri Lanka most of the companies have focused on motor vehicle insurance and life insurance. Janashakthi Full Option, Ceylinco on the Spot and Sri Lanka Insurance Motor Plus are three competitors for the motor insurance. But we can see that AVIVA NDB Insurance Plc is mainly focusing on the life insurance and wealth management. When we take life insurance they have to compete with Ceylinco Life, Sri Lanka Insurance Life Insurance, Janashakthi Life Insurance and Union Assurance etc. But they have to compete with Banks and other financial institutions for their wealth management plan. Most of the banks and financial institutions have introduced pension plans for the same strategic group people who do not have pension, gratuity, provident fund and Employee‟s Trust Fund. In Sri Lanka most of the people save their money in banks. Now banks also giving the insurance coverage for their account holders. NSB Pension + and BOC Infinity are two examples for the same kind of AVIVA NDB Insurance Plc‟s Future gain, Life bond and Live smart investment plans. Therefore AVIVA NDB Insurance Plc has to change 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 18. the perception of Sri Lankan people towards the investment in insurance company. So there is a tendency that people may select government banks to invest their funds because of the bad experiences about the private institutions. Therefore AVIVA NDB Insurance Plc has to capture the market by winning the hearts of the Sri Lankan people. Aviva NDB uses several methods to advertise their products and services. For example they do promotions through Television advertisements, Newspaper advertisements, Cutouts, Brochures, Web, T-Shirts and Caps etc. Aviva NDB‟s core brand values represented in the tri colored logo that will drive Aviva NDB is Progressiveness, Integrity, Performance and Teamwork. Corporate Social Responsibility (CSR) AVIVA NDB Insurance Plc designed its CSR projects strategically in order to provide benefits to all of its stakeholders, employees, customers and society as a corporate role model and pioneer of CSR in the Sri Lanka. At the period of Eagle Insurance the company allocates a minimum of 1% of annual profits for CSR projects and after strategic alliance as Aviva NDB, they hope to continue this policy. As pioneers in the insurance industry they are prudent fund managers. Because of that they have set up a trust fund to continue their CSR projects in Sri Lanka. Former Managing Director Eagle Insurance Plc, Deepal Sooriyarachchi, explained,”CSR is part of the value system which our corporate culture pivots in and our way of life. It goes beyond business objectives to create a continuous impact on society. Being ethical and socially responsible is a fundamental core value of the company.” Head of Marketing & Planning, Amal Perera Explained,” The Company CSR-endeavors are designed to be relevant to each stage of a person‟s life cycle, driving the nation forward as a whole.” 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 19. The company received Asia Industry Awards foe CSR and has been ranked amongst “Ten Best Corporate Citizens of Sri Lanka” for the third successive year. This was the only company which received such award in Insurance Industry. Other than that the company was awarded number one in Sri Lanka in “Customer Relations” presented by the Ceylon Chamber of Commerce. The company has given its corporate commitment especially to the area of safety and education through their CSR projects, the main farsighted focus behind their CSR is the well being of our society. As an insurance company, safety is always aligned with the company‟s involvement in risk management. Therefore this area of activity has recorded many success stories through several awareness programs. So the company organized their safety awareness programs in order to identify and address issues relating to personal safety in day to day life and corporate safety practices. The company organized safety awareness programs for individual/ families such as Pre school Teachers seminar on safety, use of fire crackers and fire works, road safety, poster competition on safety and gave sponsors on safety awareness. In order to initiate corporate safety the company introduces “National Safety Awards “for the safest work place, in collaboration with Labor Department and Employee Trust Fund. This was a tremendous event and this has highly contributed to support and promote safety standards and work morale .Other than that they distribute educational materials such as posters, booklets, safety news letters and conduct seminars on safety. Through those programs the company engages to encourage the corporate sector that “Accidents are Avoidable”. As a responsible corporate entity AVIVA NDB Insurance Plc give their maximum commitment to contribute towards the betterment of society. Therefore they put continuing effort on CSR with its policy of “CSR – SANS – FANFARE”. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 20. In order to promote their corporate commitment towards education sector they organized several CSR projects such as promoting early childhood intellectual development through “Guru Pubuduwa Seminars”, Developing Adults by positive thinking through seminars and sponsorships of TV & Radio Programs, Offering placement opportunities to university students, developing entrepreneurial skills, recognizing excellence in Arts-“AVIVA NDB Excellence Awards”, Sponsoring “National Civilian Bravery Awards”. Corporate Governance The company awarded 1st place in "Good Corporate Governance Disclosures" in Sri Lanka and treated as runner-up in the Insurance companies sector. The Awards were presented by the Institute of Chartered Accountants of Sri Lanka. It is a testimony and a reflection of what their company stands for, their transparency and ethical stand in society. Det Norske Veritas (DNV), a leader in third party certification and assessment services including Corporate Governance (CG), with a global reputation for excellence is headquartered in Norway and operates in over 100 countries. The review process of corporate governance of AVIVA NDB Insurance Plc was evaluated under the seven key areas. They are governance policy and business ethics, risk management, board and management organization, board and executive compensation, ownership structure and control, investor rights and relations and financial disclosure and audit. In the report DNV states that it is their view that Eagle's board and management has a sound understanding of good governance practices and they are committed to governance as a way of enhancing brand value; corporate reputation and shareholder value. Ethical aspects are well addressed and there is a strong emphasis on integrity within the company. Equally, strong risk management, policies and systems are in place and are embedded throughout the company's operations. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 21. The process DNV adopted to determine the rating included analysing the preliminary profile of the company, review of documentation and interviews with the chairman, and other board members.. Eagle has earned a high overall rating of 8 which DNV stated "reflects both the quality of its board of directors, the management process and the pro-active approach the company has taken to establish good governance practices. In now a days AVIVA NDB Insurance Plc continues those good governance procedures in order to satisfy the expectations of their stakeholders, employees and customers as well. Service Standards on key services AVIVA NDB Insurance plc maintains the service standards for national distribution in three areas such as sales administration, Intermediary services and management information. Because they believe that the service standards will be the key to success. Those service standards are practised during providing key services mention as follows. Key Service Service Standard -New Appointments All completed applications received from 1st to 20th of a month will be processed within 2 days of receipt at Sales Administration Unit (SAU). Activation of codes will be made within 1 day of receipt of the signed contract copy at SAU. -Promotions/Demotions All completed request will be processed within 5 working days. -Policy Transfers Application received at SAU during 1st to 20th of a month will be processed with in 3 working days. An extended 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 22. period of 5 working days will be required for the request received during peak period. -Superannuation Withdrawals Will be processed and forwarded for payment with in 4 working days of receipt of the request sent from regional office. -Loans All completed loan application received during 6th to 31st of a given month, will be issued with in 3 working days. Loans will not be processed with in the first 5 working days of a month due to system limitations. However urgent payment will be processed with in this period upon special approval, on a case by case basis. -Management Information (MI) Before 12th day of the month. Reports -Competitions 1.5 months to 2 months  -Realising the final list after probable  -Provide MI and knowledge based on past experience to design new competitions  -Suggest the competitions by analysing the business patterns -Orphan Policy Management With in 5 working days should cover all processes -Production Transfer Within 5 working days should cover all processes 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 23. Future Direction- a sound future Strategy Banc-assurance Partnership As an extension of Eagle‟s banc-assurance partnership with Sampath Bank, two Life Insurance products were launched for Sampath Bank customers who were previously able to obtain General Insurance products underwritten by Eagle. Now both Life and General Insurance products are available at Sampath Bank Branches. This is a value added services to Sampath bank‟s customers. Now General Insurance banc- assurance products are already being marked successfully through the branches. Customers now have the added facility to obtain Life Insurance products for investments and financial protection needs. The banc-assurance partnership with Sampath Bank will make things so much easier for customers who wish to enjoy banking services whilst obtaining Life and General Insurance products without a hassle. With the launch of the Life insurance range, customers can avail themselves of two financial solutions. One financial solution offered, is ideal for customers who cannot commit for a long term premium outlay. Premium payment is only for five years for a policy that spans 10 to 30 years. Life covers five times the annual premium .with this product one can now ensure that his or her child‟s dream of higher education is secure or plan ahead for a comfortable retirement. The other financial solution available through this banc-assurance partnership is a product which ensures adequate financial protection of policyholders who may presently own an insurance policy. This product also offers customers a limited premium paying period. This non premium paying period helps policyholders enjoy peace of mind, allowing them to meet other financial commitments with complete confidence. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 24. Our Journey from “GOOD TO GREAT” “Hedgehog” is their main differentiating capability, which will be the ability to maximize the value from each and every customer contact we have, at which point we make a new sale, up sale, cross sale or collect the information and relevant with future sale with a moment of truth. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 25. Annexure 01. Insurance Industry (Source- IBSL Annual report 2009) 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 26. (Source- IBSL Annual report 2009) Table -01 (Source- IBSL Annual report 2009) (Source- IBSL Annual report 2009) 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 27. (Source- IBSL Annual report 2009) Table – 02 Insurance Industry GWP Industry GWP (LKR.Mn) 2005 2006 2007 2008 Life 14,806 17,104 20,729 23,613 General 22,410 25,931 31,156 34,555 Growth (%) Life 18 16 21 14 General 32 16 20 11 (Source- IBSL Annual report, 2009) 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 28. 02. Financial Condition FINANCIAL STATEMENT -2009 BALANCE SHEET 2009 2008 As at 31st December LKR '000 LKR '000 ASSETS Investments 17,757,035 14,739,110 Investments - Unit Linked 1,330,852 473,706 Intangible Assets 86,173 104,144 Investments In Subsidiaries 1,000 51,000 Property, Plant & Equipment 237,772 271,976 Other Fund Assets 190,769 187,501 Policy Loans & Other Loans 1,634,964 1,530,502 Deferred Tax Asset 128,157 57,044 Reinsurance Receivable 502,704 492,291 Amount Due From Subsidiaries 1,863 858 Trade Receivable 846,970 575,487 Other Assets 1,132,147 802,178 Cash & Cash Equivalents 540,566 419,546 Cash & Cash Equivalents- Unit Linked 30,214 21,054 TOTAL ASSETS 24,421,186 19,726,397 LIABILIES AND SHAREHOLDERS EQUITY Liabilities Insurance Provision- Long Term Conventional 16,686,639 13,989,661 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 29. Insurance Provision- Long Term Unit Linked 1,361,066 494,760 Provision For Life Funs Solvency 175,000 175,000 Insurance Provision- General 1,865,820 1,447,620 Other Funds 190,769 187,501 Amount Due To Subsidiaries - 7,552 Reinsurance Creditors 290,298 309,869 Income Tax Liability 236,238 115,686 Other Liability 1,039,869 835,081 Total Liabilities 21,845,699 17,562,730 Shareholders’ Equity Stated Capital 300,000 300,000 Capital Reserve 39,916 39,916 Revenue Reserve 2,235,571 1,823,751 Total Shareholders' Equity 2,575,487 2,163,667 TOTAL LIABILIES AND SHAREHOLDERS EQUITY 24,421,186 19,726,397 (Source- Annual Report of the AVIVA NDB Insurance Plc, 2009) INCOME STATEMENT For the year ended 31st December 2009 2008 LKR '000 LKR '000 Revenue 9,702,796 7,224,859 Gross Written Premium 7,136,118 6,387,470 Reinsurance Premium (1,014,659) (1,060,685) 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 30. Net Written Premium 6,121,459 5,326,785 Net Change in Reserve For Unearned Premium (436,755) (67,653) Net Earned Premium 5,684,704 5,259,132 Benefits, Losses & Expenses Net Claims & Benefits (2,661,492) (2,373,154) Commission (Net of Reinsurance Commission) (602,319) (552,499) Deferred Commission 41,916 8,074 Increase In Long Term Insurance Fund (3,563,284) (2,178,018) (1,100,475) 163,535 Other Revenue Asset Management fees & Related Income - - Investment Income 3,811,093 1,716,752 Other Income 206,999 248,975 Expenses Operating & Administration Expenses (1,910,897) (1,559,349) Profit Before Taxation 1,006,720 569,913 Tax Expenses (219,900) (126,274) Net Profit For The Year 786,820 443,639 Basic Earnings Per Share (LKR) 26.23 14.79 Dividend Per Share(LKR) 12.50 3.00 (Source- Annual Report of the AVIVA NDB Insurance Plc, 2009) 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 31. Table – 03 Financial Condition Year Profit Basic Market Share Dividend Earnings Capitalization Holder Per Share (LKR.Mn) Equity (LKR.) Before Tax (LKR.Mn) Per Share(LKR) 2005 528 17.18 2,550 1,467 4.17 2006 539 17.45 4,065 1,743 8.25 2007 546 17.57 4,523 2,025 9.5 2008 570 14.79 3,450 2,224 3 2009 1007 26.23 5,340 2,565 12.5 (Source- Annual Report of the AVIVA NDB Insurance Plc, 2009) Table – 04 Gross Written Premium Year Gross Written Premium(LKR.Mn) General Life Insurance Insurance 2005 1,211 2,832 2006 1,468 3,150 2007 1,867 3,788 2008 2,045 4,342 2009 2,504 4,632 (Source- Annual Report of the AVIVA NDB Insurance Plc, 2009) 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 32. Table – 05 Individual Premium As at June As at June Plan 2007 2007 2006 Growth % FYP(Mn) 1,077.00 410.00 374.80 9.4 Bancassuransce(Mn) 171.00 144.00 7.10 - Renewal(Mn) 2,520.00 1,132.00 1,039.90 8.9 GWP(Mn) 3,768.00 1,686.00 1,421.80 18.6 (Source- Web Site of the AVIVA NDB Insurance Plc) Table - 06 Corporate Premium-GWP Plan As at June As at June 2007 2007 2006 Growth % New 6.00 0.30 1.80 -83.3 Renewal 140.40 27.70 42.90 -35.4 Total 146.40 28.00 44.70 37.4 (Source- Web Site of the AVIVA NDB Insurance Plc) 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 33. Table -07 Total Premium(Individual) Target Achieve % 3,914.00 1,714.00 43.7 (Source –Web Site of the AVIVA NDB Insurance Plc) Table -08 Comparison Of Business Performance As at June 2007 2006 Growth % APE 694 504 38 1st YY Premium 410 375 9 GWP 1714 1466 17 No of Policies 30208 21933 38 Average Premium 22966 22985 0 (Source- Web Site of the AVIVA NDB Insurance Plc 03. Milestones of AVIVA NDB Insurance Plc in year 2009  April - Reduced festival accidents from fire crackers.  Mar 22 - Awards of excellence.  June 2 - Celebrating AVIVA Day.  June3 - Employee volunteer leave program.  June9 - Extending AVIVA Samana.  June7 - Poson Safety Campaign in Anuradhapura.  July 16- Life Protect.  October 01 – Customers can pay life insurance premiums at National Savings Bank.  October 05- Expansion of the life products range at Sampath Bancassurance.  October 26- Jaffna, now covered by AVIVA NDB Insurance. 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 34. November 19- AVIVA NDB bring up peace of mind to Batticaloa.  November 25- A Silver Award for the Annual Report.  November 30- 9th batch of Highfliers receive scholarship benefits.  December 19- AVIVA NDB expands further to Vauniya. (Source- Annual Report of the AVIVA NDB Insurance Plc, 2009) 04. Board of Directors of AVIVA NDB Insurance Plc  Mr. Bill Lisle – Chairman  Mr. Shah Rouf – Managing Director  Mr. Deepal Sooriyaarchchi – Executive Director  Mr. Harvey Chamberlain – Non Executive Director  Mr. David Hope– Non Executive Director  Mr. Eran Wickramarathne– Non Executive Director  Mr. Sarath Wickremanayake  Mr. Lal De Mel– Non Executive Director  Mr. Indrajith Wickramasinghe– Non Executive Director (Source- Annual Report of the AVIVA NDB Insurance Plc, 2009) 05. Senior Management  Mr. Shah Rouf  Mr. Upul Wijesinghe  Mr. Ainsley Alles  Mr. Kelum Senanayake  Ms. Chathuri Munaweera  Mr. Gehan Rajapaksha  Ms. Leilamani Perera (Source- Annual Report of the AVIVA NDB Insurance Plc, 2009) 06. Employees of AVIVA NDB Insurance Plc Table -05 -Employees of AVIVA NDB Insurance Plc Year No of Employees 2005 447 2006 531 2007 638 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 35. 2008 725 2009 786 (Source- Web Site [www.avivandb.com] of the AVIVA NDB Insurance Plc) 07. Business Solutions 1. Employee Life Insurance 2. Surgical and Hospitalization Insurance 3. Workmen‟s Compensation Insurance 4. Group Life Insurance 5. Gratuity Planning Solutions for Employees 6. Protection from Liabilities(Public, Product and Employee) 7. E-marine Insurance Services for Importers and Exporters 8. Industrial Risk Management Advices and Services a) Property Risk Assessment b) Loss Investigation c) Hazard Analysis d) Occupational Health and Safety Management e) Risk Management Communication f) Safety Training Programs g) Claims Management Services -Surgical and Hospitalization Claims -Workmen‟s Compensation -Personal Accident Claims -Marine Claims -Property Claims 9. Assets Protection Insurance a) Engineering Class Insurance (Protection against Fire/Lighting, Explosion, Malicious, Damage, Floods, Storms, Theft, Accidental Damage, Riot/Strike, Terrorism, Clearance of Debris) 10. Third Party liability for Life and Property a) Fire Class Insurance (Fire and Allied peril Insurance) b) Business Protection Insurance c) Marine Class Insurance (Marine Cargo) d) Miscellaneous Class (Business premises, Glass, Money in Transit) 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 36. (Source- Web Site [www.avivandb.com] of the AVIVA NDB Insurance Plc) 08. AVIVA NDB Insurance Plc- Branches 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization
  • 37. (Source- Web Site [www.avivandb.com] of the AVIVA NDB Insurance Plc) 1. This case was prepared by Srinath H.P.G, Sumanarathna T.D.C.L, Suraweera U.S.and Suraweera M.N.S. 2. We would like to express the deepest appreciation to Manager HR (AVIVA NDB Insurance Plc), Mr.Rukmal Bandaranayke and BUS4306 Course facilitators of Mr. Rukmal Weerasinghe and Ms.Gayani Samarakoon. 3. This case is intended as a basis for class discussion and not as an illustration of good or bad management practices of the selected organization