rajiv projec

8/12/2019 Rajiv Projec

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PART-I


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BRIEF HISTORY OF

ORGANIZATION


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BRIEF HISTORY OF ORGANIZATION

MetLife History

For 140 years, MetLife has been insuring the lives of the people who depend on us. Our

success is based on our long history of social responsibility, strong leadership, sound

investments, and innovative products and services.

MetLife Begins

Organized by a group of New York City businessmen in 1863, the National Union Life

and Limb Insurance Company began business in July 1864 insuring Civil War sailors and

soldiers against wartime-related disabilities. It was a difficult beginning. By the end of

1864, National Union had written only 17 life and 56 accident policies, and was in last

place among the 27 life companies operating in New York State and was running a

deficit of $1,400.

After five difficult years in business and several reorganizations and name changes,

President James R. Dow, (a medical doctor) and the board of directors decided to drop

the casualty business and focus solely on life insurance business. And so began

Metropolitan Life Insurance Company.

When MetLife opened for business on March 24, 1868 (selling a small number of

policies on that date) the telephone had not yet been invented and electric lights were still

uncommon. The population of the United States was approximately 37 million, and there

were 37 states in the country. The companys first home office consisted of two rooms -

enough space for its six employees.


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This new venture also faced difficulties. A severe business depression that began in the

early 1870s rapidly put half of the 70 life insurance companies operating in New York

State out of business. Only very large, long-established ordinary life insurance companies

remained strong. Policy lapses over successive years forced the company to contract until

it reached its lowest point in the late 1870s.

In 1879, MetLife President Joseph F. Knapp turned his attention to England, where

"industrial" or "workingmen's" insurance programs were widely successful. American

companies had not bothered to pursue industrial insurance up to that time because of the

expense involved in building and sustaining an agency force to sell policies door to door

and to make the weekly collection of five- or ten-cent premiums.

By importing English agents to train an American agency force, MetLife quickly

transferred successful British methods for use in the United States. By 1880, the company

was signing up 700 new industrial policies a day. Rapidly increasing volume quickly

drove down distribution costs, and the new program proved immediately successful.

The MetLife agent became an important person in the lives of these striving families.

Manuals instructed agents to call at a home at the same time each week to ensure

familiarity and contact. In the process of collecting premiums, insurance agents listened

to the problems, concerns, and hopes of their clients. So successful was this approach that

by 1909, MetLife became the nation's largest life insurer in terms of insurance in force, a

leadership position we continue to hold today in North America.

Helping and Healing People


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In 1909, MetLife Vice President Haley Fiske announced that "insurance, not merely as a

business proposition, but as a social program," would be the future policy of the

company. As a first step, Fiske hired the pioneering industrial social worker Lee Frankel

to work at MetLife. Frankel envisioned insurance as a powerful means toward improving

the lot of the underprivileged. To this end, he established MetLife's Welfare Division.

Frankel's early work centered on th e prevention of tuberculosis ,

the 'white plague' responsible for 20 percent of all death claims. Public education was the

key. In 1909, 10,000 MetLife agents delivered Frankel's pamphlet 'A War Upon

Consumption' to millions of urban poor, who were most at risk for tuberculosis . This

document was the first of an ongoing series of MetLife health publications; by 1929, the

company was distributing more than 50 million such brochures and pamphlets a year.

The Welfare Division's most visible and memorable program was the Metropolitan Life

Visiting Nurse Service. Lillian Wald, noted social reformer and director of the Henry

Street Settlement on Manhattan's Lower East Side, had issued a challenge to Frankel to

integrate MetLife's business objective - to insure America's workers - with a larger

humanitarian perspective. He responded with a program that mobilized Henry Street

nurses to visit acutely ill industrial policy holders. The service began in 1909 with a three

month experiment on New York City's West Side that was later extended throughout the
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five boroughs. Insurance agents, who had day-to-day contact with the insured, urged

policyholders to report illnesses at the earliest possible opportunity and left cards with

information identifying the closest visiting nurse. The New York City program became a

model for urban health reform, which MetLife then expanded to 13 other cities.

The company's vigorous public health campaign, conducted through its

agents, was the largest such endeavor launched by a public or private entity. For nearly a

half century, approximately 20 million policyholders in more than 7,000 cities and towns

in the U.S. and Canada received free nursing care. At its peak of service in 1935, 35 out

of 1,000 policyholders were treated for illnesses such as diphtheria, influenza, smallpox,

and tuberculosis .

War on Tuberculosis

MetLife began working with the National Tuberculosis Association in 1916 to

control TB, America's number one killer at that time. The company donated

$200,000 to sponsor a "town health demonstration" in Framingham, Mass.

The campaign enlisted every local club, church, organization, and society,

and set up committees with representatives from every block in the city.

Over the next seven years, the 17,000 Framingham residents served as a

laboratory for testing the efficiency of public health measures.
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Welfare Division director Lee Frankel led MetLife's research and treatment

work at Framingham, and his assistant and successor, Donald B. Armstrong,

lived in Framingham with his wife and children.

By encouraging reasonable health rules and periodic physical examinations,

and by providing health education in schools and factories, MetLife achieved

its aim of reducing the ravages of TB in Framingham. Over the life of the

project, the incidence of tuberculosis in this city was reduced 68 percent.

Infant mortality decreased, as well, by 40 percent. After 1923, Framingham

city officials continued the work, and the Framingham model became

incorporated in county and city tuberculosis programs nationwide.

Supporting Country and Community

Over the years, MetLife has made a difference by supporting urban renewal projects and

community financing. The company's social commitment and its commitment to the

security of its policyholders have proven to be good business.

Concern for the financial security of its policyholders led the company to shy away from

investing in the stock market. This policy resulted in MetLife surviving the crash of 1929

relatively unscathed while countless other financial institutions collapsed with

devastating effects on the American people. The financial strength of the company

allowed MetLife to pay out cash surrenders to its policyholders, and the Company even


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honored requests from policy holders whose premiums had lapsed. For many, these

payments made the difference between financial failure and survival.

Beginning in the 1930s, the company broadened its tradition of public service from

promoting individual health to fostering national social and economic goals. In 1930,

MetLife was the undisputed leader of the insurance industry, insuring every fifth man,

woman, and child in the United States and Canada. Traditionally, the company had

invested a substantial portion of its assets in urban and farm mortgages and in loans to

individuals. But the collapse of real estate values during the Great Depression and the

decline of interest rates made these customary investment options less attractive.

n response to changing conditions, the company reduced the percentage of individual

mortgages in its portfolio in favor of public utility bonds, investments in government

securities, and loans for commercial real estate. In 1931 MetLife provided the outside

capital to build Rockefeller Center. It also lent money to construct the Empire State

Building in 1929, and virtually saved this project from bankruptcy. The company'shousing program begun in the 1920s and completed after World War II -- at the time the

most extensive housing program undertaken by either public or private enterprise- was in

part driven by the need for investment vehicles that would bring greater returns to

policyholders. During World War II, the company placed more than 51 percent of its total

assets in war bonds, and was the largest single private contributor to the Allied cause.

As the "world's wealthiest private company," MetLife entered the postwar period in a

strong and secure position. This era in the company's history changed MetLife in a

number of fundamental ways. To bring its products and services closer to customers, it

expanded its suburban presence, decentralized operations, and refocused its career agency


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system to serve all segments of the market. MetLife also developed new group products

and marketed them to employers and institutions. By the end of 1979, MetLife

concentrated on four businesses: group insurance, personal insurance, pensions, and

investments.

The year 2001 was a true test of the qualities that define MetLife. The companys core

values, brought to life in what MetLife does every day, were never more evident than in

MetLifes response to the terrorist attacks of September 11. MetLife not only paid claims

extraordinarily quickly, but also invested $1 billion in a broad array of publicly-traded

common stocks to help rebuild confidence in shaken financial markets.

MetLife Today

MetLifes vision of being the leading global life insurance and employee benefits

company guides the companys response to peoples growing need for first -rate financial products and services through various life stages and econ omic cycles. MetLifes trusted

brand, capital strength, and existing relationships with millions of individual and

institutional customers around the globe uniquely position MetLife among its

competitors.

On November 1, 2010, MetLife added significant scale and reach to its international

footprint by acquiring American Life Insurance Company (Alico) from American

International Group, Inc. (AIG) for $16.4 billion. Starting in 1921, Alico grew to become

one of the largest and most diversified international insurance companies in the world

and the first foreign life insurance company licensed to sell in Japan. The acquisition of


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Alico transformed MetLife into a global life insurance and employee benefits

powerhouse, with 90 million customers in more than 60 countries around the globe.

Today, a time when consumers are feeling a greater financial burden than ever before,

MetLife is helping millions of customers create their own personal safety net. At no time

in the companys history has MetLife been as well posit ioned to capitalize on its history,

its reputation for security and stability, and its innovative products and services as it is

today.

In the future, MetLife will continue to grow its business with focus, innovation and

profitability. This will be accomplished by drawing on the reservoir of history that has

produced an enduring set of corporate values based on more than 140 years of integrity,

social responsibility, strong leadership and financial strength.

What we do

For individuals

Around the world, the MetLife companies offer insurance, retirement and savings

products. We work directly with customers as well as offer our products through agents,

third party distributors, and brokers. We provide:

Flexible insurance options to protect you and your family.

Life Insurance Maintain your familys standard of living no matter what the

future holds. Our life insurance products help take care of whats most important,from home mortgage payments and day-today expenses, to a childs education or

a partners reti rement


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Accident & Health Insurance Our products give you one less thing to worry

about should the unthinkable happen. We protect against eventualities with

flexible levels of coverage, cash payouts, treatment expenses, etc.

Disability Income Insurance If you are unable to work due to sickness or

injury, disability income insurance can help you meet expenses and maintain your

standard of living by providing financial security until you get back on your feet.

Credit Insurance Our debt protection products can help take the strain off you

and your loved ones should you become unable to repay financial commitments

due to death or illness. Auto & Home Insurance You can protect your car and residence as well as the

precious belongings inside with the right insurance policy.

Retirement and Savings plans to help you reach your financial goals.

Retirement Planning - Our pension and savings products help you plan ahead for

a financially secure retirement and allow you to enjoy the best years of your life.

Savings - Our selection of savings products help you act today to achieve the

lifestyle you want tomorrow.

For Business

Our name is recognized and trusted by 90 million customers worldwide in more than 50

countries as well as by over 90 of the top 100 FORTUNE 500 companies. We offer

businesses:


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First class benefits packages to help attract and retain valuable

employees. We provide flexible, best -in-class solutions to help you meet the

diverse needs of your employees in a cost-effective way. Core insurance products

include: life, disability, critical illness, hospitalization and involuntary loss of

employment.

Customized pension administration and benefits funding solutions for

employers. We have a long history of pension administration and benefits

funding for local and multinational corporations with a market-leading position in

many countries. We also offer executive benefits solutions such as supplementalretirement plans and deferred compensation arrangements.

Advertising

Insurance and financial services don't have to be confusing and complicated. Advertising

from MetLife is focused on helping people take simple steps to start building their

financial safety net with guarantees* from a premier global life insurance company. And,

as you've probably come to expect from MetLife, Snoopy and the Peanuts gang will help

make sure that the message is clear, friendly and approachable.

See our latest advertising here

Peanuts
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Back in 1985, MetLife launched a new advertising campaign in the

United States featuring the PEANUTS gang. These ads were initially

inspired by Linus and his security blanket, which symbolized the

dependability, comfort and peace of mind that MetLife provides its

customers.

Before long, Snoopy had won the hearts of MetLife customers and employees to become

our brand ambassador. He and the rest of the PEANUTS characters are reminders that

insurance and financial services dont have to be complicated or scary .

*Guarantees apply to certain insurance and annuity products or contractual riders (not

securities, variable or investment advisory products) and are subject to product terms,

exclusions and limitation and the insurers claims paying ability and financia l strength.

One MetLife: Celebrating last year's acquisition of Alico, a major international insurance

company, MetLife has become the global insurance company with the unique ability to

help more people protect themselves and their families.

View a selection of ads from around the globe:

Argentina

Brazil

Cyprus

France

Italy

Japan
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For decades, weve shared the same trust, the same values, the same vision.

View Ad

Weve become the premier global life insurance company overnight.

View ad

Only 90 of the 'top one hundred' FORTUNE 500* companies are insured with us.

Based on Facts: This campaign is based on true stories of our commitment to our

customers. MetLife has grown to be one of the worlds largest insurance companies

because we never forget the little human things.

Before we can help you build a financial safety net, we work hard to figure out how we

can help make complicated financial matters easier for you. Whether through life

insurance, annuities, or just understanding your values, MetLife works with you to help

you get started.
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COMPANY PROFILE


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COMPANY PROFILE

Corporate Governance

Corporate Governance

Board of Directors

Board of Director biographies and Board Committee information.

Executive Officers

Biographies of MetLife's Executive Officers.

Corporate Conduct

MetLife and its family of companies are committed to providing the highest quality

products and services through the integrity and ethical practices of its employees and

business partners.

Board of Directors

Collapse All

Kandarian, Steven A.

Chairman, President & Chief Executive Officer

MetLife, Inc.

Steven A. Kandarian is chairman of the board, president and chief executive officer of

MetLife, Inc. (NYSE: MET), a leading provider of insurance, annuities and employee

benefit programs to 90 million customers in more than 50 countries worldwide. He

became president and CEO on May 1, 2011 and chairman of the board of directors on

January 1, 2012. For 2011, MetLife had $70.3 billion in revenue and ranked 46 th on the

most recent FORTUNE 500.
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Kandarian joined MetLife in April 2005 as executive vice president and chief investment

officer (CIO). Since 2007, he has also overseen MetLife's enterprise-wide strategy, which

identified key areas of focus for the company. Specifically, his direction contributed to

MetLife's recent global expansion and led to significant cost savings as well as efforts to

address the insurance needs of the underserved U.S. middle market.

As CIO, Kandarian oversaw the company's more than $450 billion general account

portfolio and led a number of initiatives that strengthened the portfolio and contributed to

MetLife's bottom line. He enhanced the company's focus on effective risk management

and diversified MetLife's investment portfolio, in part through the $5.4 billion sale of

Peter Cooper Village/Stuyvesant Town in 2006. Under Kandarian's leadership, MetLife

identified the housing bubble early and reduced its exposure to sub-prime mortgage-

backed securities, raised the overall quality of its corporate credit portfolio, and increased

its focus on low loan-to-value commercial and agricultural mortgages. His efforts helped

MetLife emerge from the 2008 credit crisis with the financial strength to complete the

companys $16 billion purchase of Alico.

From 2001 to 2004, Kandarian was executive director of the Pension Benefit Guaranty

Corporation (PBGC). During his tenure, he made the public case for comprehensive

reform of the pension funding rules to put the defined benefit system and the PBGC on a

sound financial footing, helping to lay the groundwork for the enactment of the Pension

Protection Act of 2006.

Previously, Kandarian was founder and managing partner of Orion Partners, LP, a private

equity firm based in the Boston area. Earlier he was managing director of Lee Capital


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Holdings. Kandarian began his career as an investment banker with Houston-based Rotan

Mosle, Inc.

Kandarian is a board member of the Damon Runyon Cancer Research Foundation and a

member of the Economic Club of New York and the Financial Services Forum. He

earned his B.A. from Clark University, J.D. from Georgetown University Law Center,

and M.B.A. from Harvard Business School.

Burwell, Sylvia Mathews

Sylvia Mathews Burwell , age 46, is President of the Global Development Program at

The Bill and Melinda Gates Foundation. Ms. Burwell joined the Foundation in 2001 as

Executive Vice President and served as its Chief Operating Officer from 2002 to April

2006. Prior to joining the Foundation, she served as Deputy Director of the Office of

Management and Budget in Washington, D.C. from 1998. Ms. Burwell served as Deputy

Chief of Staff to President Bill Clinton from 1997 to 1998, and was Chief of Staff to

Treasury Secretary Robert Rubin from 1995 to 1997. She also served as Staff Director forthe National Economic Council from 1993 to 1995. Ms. Burwell was Manager of

President Clintons economic transition team. Prior to that, she w as an Associate at

McKinsey and Company from 1990 through 1992.

She is a member of the Board of Directors of the Council on Foreign Relations, a

member of the Aspen Strategy Group, the Trilateral Commission and the Nike

Foundation Advisory Group, a member of the Board of the Alliance for a Green

Revolution in Africa, an Advisory Board member for the Next Generation Initiative and

the Peter G. Peterson Foundation, and a member of the Professional Advisory Board for

the ALS Evergreen Chapter.


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Ms. Burwell rece ived a bachelors degree in government, cum laude, from Harvard

University in 1987 and a bachelors degree in philosophy, politics and economics from

Oxford University, where she was a Rhodes Scholar.

Ms. Burwell has been a Director of MetLife and Metropolitan Life Insurance Company

since 2004.

Castro-Wright, Eduardo

Eduardo Castro-Wright, age 56, has been Vice Chairman of Wal-Mart Stores, Inc.

since November 2008 and President and Chief Executive Officer of its Global.com and

Global Sourcing organizations since June 2010. Mr. Castro-Wright joined Wal-Mart in

2001 and worked in Mexico through 2005, first as President and later as Chief Executive

Officer of Wal-Mart de Mexico. He then joined Wal-Mart in the U.S. as Chief Operating

Officer of the Wal-Mart Stores division in early 2005 and served as President and Chief

Executive Officer of the Wal-Mart Stores division from 2005 to 2010. Previously, he was

the President and Chief Executive Officer of Honeywell Transportation and Power

Systems Worldwide. Prior to that, he was President of Honeywell Asia/Pacific. Mr.

Castro-Wright also held several leadership positions at Nabisco, Inc., including President

of Nabisco Asia/Pacific, as well as President and Chief Executive Officer of the

companys businesses in Venezuela and Mexico.

Mr. Castro-Wright is a member of the Boards of Directors of the Retail Industry Leaders

Association, and CARE USA. He previously served as a Director of Dow Jones &

Company from 2006 to 2007.

He received a bachelor of science degree in mechanical engineering from Texas A&M

University.


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Economics and Finance since 1994. Dr. Hubbard has been a professor of the Graduate

School of Business at Columbia University since 1988 and a professor of the Faculty of

Arts and Sciences of Columbia University since 1997. From 2001 to 2003, Dr. Hubbard

served as Chairman of the Presidents Council of Economic Advisers and Chairman of

the Economic Policy Committee of the Organization for Economic Cooperation and

Development. He was Deputy Assistant Secretary of the Treasury for Tax Analysis from

1991 to 1993.

Dr. Hubbard is a member of the Boards of Directors of Automatic Data Processing, Inc.,

BlackRock Closed-End Funds and KKR Financial Holdings LLC. He also is a member ofthe Panel of Economic Advisors for the Federal Reserve Bank of New York, member of

the Council on Foreign Relations, and a member of the Advisory Board of the National

Center on Addiction and Substance Abuse, and serves as an Elder of Fifth Avenue

Presbyterian Church, New York. He previously served as a Director of Capmark

Financial Corporation (2006-2008), Information Services Group, Inc. (2006-2008), Duke

Realty Corporation (2004-2008), Dex Media, Inc. (2004- 2006), and R.H. Donnelley

Corporation (2006).

Dr. Hubbard holds a Ph.D. and masters degree in economics from Harvard University,

and a bachelor of arts degree and a bachelor of sciences degree from the University of

Central Florida.

He has been a Director of MetLife and Metropolitan Life Insurance Company since

February 2007.


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Keane, John M.

John M. Keane , age 69, is a Senior Partner of SCP Partners, a venture capital firm, and

President of GSI, LLC, an independent consulting firm. General Keane served in the U.S.

Army for 37 years. He was Vice Chief of Staff and Chief Operating Officer of the Army

from 1999 until his retirement in October 2003.

He is a Director of General Dynamics Corporation, MacAndrews & Forbes Holdings,

Inc. and Cyalume Technologies Holdings, Inc. He also is a military contributor and

analyst with Fox News, member of the United States Department of Defense Policy

Board, member of the Council on Foreign Relations, and Chairman of the Senior

Executive Committee of the Army Aviation Association of America. He also serves on

the Boards of the Knollwood Foundation, the Army Heritage Foundation, the George C.

Marshall Foundation, the Rand Corporation, the Welcome Back Veterans Foundation,

American Corporate Partners, the Center for Strategic and Budgetary Assessments, and

the Institute for the Study of War. He previously served as a member of the Board of

Managers of Allied Security Holdings LLC from 2005 to 2008.

General Keane received a bachelor s degree in accounting from Fordham University and

a masters degree in philosophy from Western Kentucky University. General Keane has

received honorary doctorate degrees in law and public service from Fordham University

and Eastern Kentucky University, respectively.

General Keane has been a Director of MetLife and Metropolitan Life Insurance Company

since 2003.

Kelly, Jr., Alfred F.


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Alfred F. Kelly, Jr., age 53, is the CEO of the NY/NJ 2014 Super Bowl Host

Committee. Previously, he was the President of American Express Company, where he

had responsibility for the companys global consumer businesses, including consumer

and small business cards, customer service, global banking, prepaid products, consumer

travel and risk and information management, until his retirement in April 2010 after 23

years of service. Before his appointment as President, he was a Group President

responsible for several key businesses, including U.S. consumer and small business

cards, U.S. customer service and risk management. From 1985 to 1987, Mr. Kelly served

as head of information systems at the White House where he oversaw the information processing functions for several government agencies that comprise the Executive Office

of the President. Prior to that, he held various positions in information systems and

strategic and financial planning at PepsiCo.

He is a member of the Boards of Trustees of New York-Presbyterian Hospital and St.

Josephs Seminary and College, and a member of the Board of Di rectors of the New

York Catholic Foundation. He also serves as Vice Chairman of the Wall Street Charity

Golf Classic, an event that benefits the Cystic Fibrosis Foundation. He previously served

as a Director of The Hershey Company from 2005 to 2007.

Mr. Kelly holds bachelor of arts and masters degrees in business administration from

Iona College.

Mr. Kelly has been a Director of MetLife and Metropolitan Life Insurance Company

since June 2009.

Kilts, James M.


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from 1998 to 2005, and Director of The New York Times Company from 2005 to 2008.

He also is a past Chairman of the Grocery Manufacturers Association.

He is a graduate of Knox College and earned a master of business administration degree

from the University of Chicago.

Mr. Kilts has been a Director of MetLife and Metropolitan Life Insurance Company since

2005.

Kinney, Catherine R.

Catherine R. Kinney , age 59, retired from NYSE Euronext in March 2009. She had

served in Paris, France from July 2007 until 2009, responsible for overseeing the

companys global listing program, marketing and branding. She was President and Co -

Chief Operating Officer of the New York Stock Exchange from 2002 to 2008. Ms.

Kinney joined the New York Stock Exchange in 1974 and held management positions in

several divisions, including responsibility for all client relationships from 1996 to 2007,

trading floor operations and technology from 1987 to 1996, and regulation from 2002 to

2004.

Ms. Kinney serves on the Boards of Directors of NetSuite, Inc., MSCI, Inc., Georgetown

University, Catholic Charities, The New York City Ballet, and Sharegift USA. She

served on the Board of Directors of Depository Trust Company from 2003 to 2007. She is

a member of the Economic Club of New York.

Ms. Kinney graduated Magna Cum Laude from Iona College and completed the

Advanced Management Program, Harvard Graduate School of Business. She has


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received honorary degrees from Georgetown University, Fordham University, and

Rosemont College.

Ms. Kinney became a Director of MetLife and Metropolitan Life Insurance Company in

April 2009 after having previously served on those Boards from 2002 to 2004.

Price, Hugh B.

Hugh B. Price , age 70, has been the John L. Weinberg/Goldman Sachs Visiting

Professor of Public and International Affairs at the Woodrow Wilson School of Princeton

University since August 2008. He also has been a Senior Fellow of the Brookings

Institution since February 2006. Previously, he was a Senior Advisor to the law firm of

DLA Piper Rudnick Gray Cary US LLP from September 2003 until September 2005 and

served as President and Chief Executive Officer of the National Urban League, Inc. from

1994 to April 2003.

Mr. Price is a Director of Verizon Communications, Inc. and a Director of the Jacob

Burns Film Center.

Mr. Price received a bachelors degree from Amherst College and received a law degree

from Yale Law School.

He has been a Director of MetLife since 1999 and a Director of Metropolitan Life

Insurance Company since 1994.

Satcher, David

David Satcher , M.D., Ph.D., age 70, is the Director of the Satcher Health Leadership

Institute and the Center of Excellence on Health Disparities at the Morehouse School of

Medicine (MSM), where he also occupies the Poussaint-Satcher-Cosby Chair in Mental


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Health. From December 2004 to July 2006, Dr. Satcher served as the President of MSM.

From September 2002 to December 2004, Dr. Satcher was the Director of the National

Center for Primary Care at MSM. Dr. Satcher completed his four-year term as the 16th

Surgeon General of the United States in February 2002, after which he served as a Senior

Visiting Fellow with the Kaiser Family Foundation until he assumed the post of Director

of the National Center for Primary Care. Dr. Satcher served as the U.S. Assistant

Secretary for Health from 1998 to January 2001, and from 1993 to 1998, he was the

Director of the Centers for Disease Control and Prevention and the administrator of the

Agency for Toxic Substances and Disease Registry.Dr. Satcher is a member of the Boards of Directors of Johnson & Johnson, the Kaiser

Family Foundation, the Community Foundation of Greater Atlanta and the United Way

of Metropolitan Atlanta.

Dr. Satcher has been a Director of MetLife and Metropolitan Life Insurance Company

since February 2007.

Sicchitano, Kenton J.

Kenton J. Sicchitano, age 67, was a Global Managing Partner of

PricewaterhouseCoopers LLP, an audit/assurance, business advisory and tax services

firm, until his retirement in June 2001. Mr. Sicchitano joined Price Waterhouse LLP, a

predecessor firm of PricewaterhouseCoopers LLP, in 1970, and after becoming a partner

in 1979, held various leadership positions within the firm until he retired in 2001.

He is a Director of PerkinElmer, Inc. and Analog Devices, Inc. At various times from

1986 to 1995, he served as a Director and/or officer of a number of not-for-profit

organizations, including as President of the Harvard Business School Association of


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Boston, Director of the Harvard Alumni Association and the Harvard Business School

Alumni Association, Director and Chair of the Finance Committee of New England

Deaconess Hospital and a Trustee of the New England Aquarium.

Mr. Sicchitano received a bachelors degree from Harvard College and a masters degree

in business administration from Harvard Business School.

Mr. Sicchitano has been a Director of MetLife and Metropolitan Life Insurance Company

since 2003.

Wang, Lulu C.

Lulu C. Wang, age 67, is Chief Executive Officer of Tupelo Capital Management LLC,

an investment management firm which she founded in 1997. Ms. Wang has been engaged

in professional money management since 1972. Prior to founding Tupelo Capital

Management, she served as Director and Executive Vice President of Jennison Associates

Capital Corporation. Before joining Jennison in 1988, Ms. Wang oversaw equities

management at Equitable Capital Management as Senior Vice President and Managing

Director.

Ms. Wang serves on the Boards of the Asia Society, Columbia Business School,

Metropolitan Museum of Art, Rockefeller University, New York Public Radio and the

Committee of 100. She also serves as Trustee Emerita of Wellesley College and as a

Consulting Director of the New York Community Trust.

Ms. Wang received her bachelor of arts degree from Wellesley College and her masters

in business administration from Columbia Business School.


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Ms. Wang has been a Director of MetLife and Metropolitan Life Insurance Company

since March 2008.

Executive Officers

Kandarian, Steven A.

Chairman, President and Chief Executive Officer

Goulart, Steven J.

Executive Vice President and Chief Investment Officer

Hijkoop, Frans

Executive Vice President and Chief Human Resources Officer

Hirschhorn, Beth M.

Executive Vice President, Global Brand, Marketing and Communication

Khalaf, Michel

President, EMEA

Latrenta, Nicholas D.

Executive Vice President and General Counsel

Lippert, Martin

Executive Vice President, Global Technology & Operations

Morris, Maria R.

Executive Vice President, Global Employee Benefits

Steigerwalt, Eric T.

Executive Vice President & Interim Chief Financial Officer

Wheeler, William J.

President, The Americas
http://global.metlife.com/about/corporate-governance/executive-officers/steven-a-kandarian.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/steven-a-kandarian.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/steven-j-goulart.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/steven-j-goulart.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/frans-hijkoop.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/frans-hijkoop.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/beth-m-hirschhorn.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/beth-m-hirschhorn.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/michel-khalaf.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/michel-khalaf.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/nicholas-d-latrenta.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/nicholas-d-latrenta.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/martin-lippert.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/martin-lippert.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/maria-r-morris.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/maria-r-morris.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/eric-t-steigerwalt.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/eric-t-steigerwalt.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/william-j-wheeler.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/william-j-wheeler.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/william-j-wheeler.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/eric-t-steigerwalt.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/maria-r-morris.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/martin-lippert.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/nicholas-d-latrenta.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/michel-khalaf.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/beth-m-hirschhorn.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/frans-hijkoop.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/steven-j-goulart.htmlhttp://global.metlife.com/about/corporate-governance/executive-officers/steven-a-kandarian.html


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Corporate Conduct

MetLife and its family of companies are committed to providing the highest quality

products and services through the integrity and ethical practices of its employees and

business partners.

Any employee, customer, shareholder or other interested party aware of or with reason to

believe a violation of practices exists involving the Company's financial accounting,

internal accounting controls or auditing matters, or suspects the existence of fraud or

unethical behavior, should notify MetLife.

Interested parties may communicate concerns to MetLife's Audit Committee or Non-

Management Directors, or to Company associates responsible for investigating such

matters. All concerns, whether submitted in writing or by calling the MetLife Compliance

& Fraud Hotline, will be treated confidentially, with correspondence accepted

anonymously if desired.

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Audit Committee Communications

The MetLife Audit Committee has established procedures for the receipt, retention and

treatment of complaints regarding accounting, internal accounting controls or audit

matters. Any interested party may address such concerns, and suspected fraud or

unethical behaviors to the Audit Committee by writing to:

MetLife, Inc. Audit Committee

c/o Corporate Secretary


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1095 Avenue of the Americas

New York, NY 10036

Interested parties may also contact the Audit Committee by calling the MetLife

Compliance & Fraud Hotline at 1-800-462-6565. Callers should specify when a

communication is for the attention of the Audit Committee.

All communications, whether in writing or when contacting the Compliance & Fraud

Hotline, will be treated confidentially. Interested parties can remain anonymous when

addressing their concerns.

Non-Management Director Communications

Interested parties may communicate known or suspected concerns that may include, but

are not limited to, accounting, internal accounting controls or audit matters, or fraud and

unethical behaviors to specific Non-Management Directors of MetLife, or as a group, by

writing to:

MetLife, Inc. Non-Management Directors

c/o Corporate Secretary

1095 Avenue of the Americas

New York, NY 10036

Any correspondence should specify when a communication is for the attention of the

Non-Management Directors as a group, or should reference the specific director to whose

attention the matter is directed.


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reputation are reinforced by our pledge to deliver value and world-class service to all who

do business with us and to always keep in mind what is best for our customers.

Values

A continued tradition of integrity and corporate responsibility.

Ethics and Integrity

For more than a century, MetLife has built a reputation as a company that believes in fair

dealing, integrity, and trustworthiness. We firmly believe that adherence to the highest

standards of ethical conduct is the only acceptable way of doing business and is the

personal responsibility of every one of our associates. The company's well-known name

and good reputation are reinforced by our pledge to deliver value and world class service

to all who do business with us, always keeping in mind what is best for our customers.

The importance of ethics and compliance to the Company is demonstrated by the

Companys extensive efforts and resources directed to this area. We are committed to our

compliance vision of having MetLife be the world's most trusted company.

Supporting these efforts are the MetLife core values of integrity and honesty, the

fundamental building blocks of our long and successful history, that shape the way we do

business. These values are central to our efforts to achieve the MetLife vision to build

fi nanci al f reedom for everyone and emphasize our outward focus on customers and

their needs. We recognize that our ongoing success will spring from these values and, as

we look to the future, we remain committed to the highest standards of ethics, integrity

and trustworthiness, while continuing to pursue a strategy of building financial freedom

for everyone. This defines who we are.


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contributing to a growing global effort that will benefit our planet today and into the

future.

As a leading global provider of insurance, annuities and employee benefit programs

serving 90 million customers in more than 60 countries, we know that green initiatives

can potentially have a significant impact on the global environment.

MetLife is poised to address climate change, embracing the challenges that it and the

environment present. We are committed to adapting our business model in the face of

climate change by increasingly adapting to emerging technologies, green products and

environmentally-friendly services. MetLife prides itself on being a good corporate

citizen, and we are dedicated to increasing our use of renewable energy and conserving

energy throughout our facilities around the globe.

MetLife Foundation

MetLife Foundation is committed to building a secure future for individuals and

communities worldwide, through a focus on empowering older adults, preparing young

people and building livable communities. The Foundation was established in 1976 to

carry on MetLifes longstan ding tradition of corporate contributions and community

involvement. MetLife Foundation is proud of its history of working closely with

organizations meeting the many challenges facing todays global society.

Since it was established, the Foundation has provided over $500 million in funding to

hundreds of global organizations and has been at the forefront on important issues In

classrooms, playgrounds, community centers, research labs and concert halls across the

globe, the foundations grants improve the q uality of life for millions.


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MetLife Foundation

MetLife Foundation was created in 1976 by MetLife to continue its longstanding

tradition of contributions and community involvement. The goal is to empower people to

lead healthy, productive lives and strengthen communities. Underlying the Foundation's

programs is a focus on education at all ages and a commitment to increasing access and

opportunity.

The Foundation makes grants in health, education, civic affairs and culture. Learn more

about each below:

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Health

The health program supports nonprofit groups that help people of all ages lead healthy

lives and make informed decisions about their health. The focus areas are:

Alzheimer's Disease

Support Alzheimers disease research and increase public awareness and understanding

of the disease.

The national Alzheimer's Association is conducting outreach to raise awareness

and provide vital education on Alzheimer's disease for the Hispanic community.

Its outreach includes Spanish-language materials, workshops and radio spots.

Meet Me at MoMA , an award-wining initiative of the renowned Museum of

Modern Art (MoMA), makes art accessible by bringing people with Alzheimer's

and other dementia, along with their caregivers, to the museum for interactive
http://www.metlife.com/about/corporate-profile/citizenship/metlife-foundation/alzheimers-and-aging.htmlhttp://www.metlife.com/about/corporate-profile/citizenship/metlife-foundation/alzheimers-and-aging.htmlhttp://www.metlife.com/about/corporate-profile/citizenship/metlife-foundation/alzheimers-and-aging.html


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MetLife Foundation continues to address the issue of substance abuse among

young people through its award-winning national radio campaign on the

importance of effective parenting in preventing substance abuse. The Partnership

for a Drug-free America campaign, which airs in major cities across the country,

features educational messages in English and Spanish and free brochures in

English, Spanish and Chinese.

Civic Affairs

The civic affairs program supports nonprofit groups working to build socially and

economically viable communities. The focus areas are:

Revitalize Urban Neighborhoods

Revitalize urban neighborhoods through affordable housing, financial literacy and

programs that address basic needs of the economically disadvantaged.

Thirteen community development corporations (CDCs) won MetLife Foundation

Community Development Initiative grants to increase affordable housing and

economic development in lower- income neighborhoods of Boston, Chicago,

Hartford, New York and the San Francisco Bay area. The grants, awarded through

a national competition, support transit-oriented development and multilingual

financial counseling, among other vital activities.

Since 1995, MetLife Foundation has partnered with the Trust for Public

Land (TPL) to bring parks and playgrounds to lower-income neighborhoods in

cities nationwide. With a new leadership grant, TPL will work with local public


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agencies and community groups to create parks and playgrounds in New York,

Denver, San Francisco, Los Angeles, Chicago, Cleveland, Dallas and New

Orleans.

After-School and Mentoring

Increase after-school and mentoring opportunities for young people.

Through the MetLife Foundation Out-of-School Time Initiative , youth-serving

organizations in Boston, Chicago, Dallas and New York were awarded funding to

provide enriching out-of-school activities for low-income middle school youth.

The Big Brothers Big Sisters Hispanic Mentoring Program works to engage and

sustain the involvement of greater numbers of Latino children, families and

volunteers in Big Brothers Big Sisters' proven mentoring program. MetLife

Foundation is supporting the program in 20 cities.

Civic Engagement and Volunteerism

Promote civic engagement and volunteering, particularly among young people and older

adults.

The MetLife Foundation Older Volunteers Enrich America Awards recognize the

outstanding contributions of volunteers age 50 and older to local communities.

2010 winners, selected through a national competition administered by

the National Association of Area Agencies on Aging , range in age from 59 to 95

years.

Culture and Public Broadcasting


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The culture program supports nonprofit organizations working to strengthen education,

promote understanding of diverse cultures and build livable communities through access

to the arts. The focus areas are:

Access and Inclusion in the Arts

Make the arts more accessible for people of all ages and backgrounds.

The MetLife Foundation Arts Connects All initiative, administered by VSA arts ,

recognizes and supports arts programs that create educational access and

inclusion. Grants are awarded to cultural organizations that partner with public

schools to use the arts to develop students social, cognitive, and artistic skill and

foster learning environments where students with and without disabilities learn

alongside one another.

The MetLife Foundation/Arts Presenters Awards for Arts Access recognizes

performing arts venues that have consistently demonstrated the implementation

and evolution of arts access strategies for older adults, immigrants, people withdisabilities and underserved communities.

Reach broad audiences through inclusive programming.

The MetLife Community Connections initiative at the New England Foundation

for the Arts/National Dance Project supports the national tours of dance

companies with well-developed community engagement components, including

workshops, lecture-demonstrations and other forms of collaboration with local

schools and community centers.


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The MetLife Foundation Museum and Community Connections program awarded

grants to 15 museums for exhibitions, artist residencies, and other programs that

extend their reach into diverse communities and make art a part of people's lives.

Arts Education

Enhance education and lifelong learning.

The MetLife Learning for Life initiative focuses on integrating arts across the

school curriculum to foster creativity and critical thinking in young people. The

initiative is being implemented in partnership with Young Audiences in 15 cities

across the country and focuses on students in grades 4 through 8.

The MetLife Foundation Creative Aging Program awarded grants to 12 cultural

organizations across the country to develop and expand participatory arts

programs for older adults. The program, administered by the National Guild of

Community School of the Arts , is designed to increase the capacity of community

arts education providers to serve older adults, provide models of high quality

creative aging programs to the field and raise public awareness about the benefits

of creative aging.

Public Broadcasting

The public broadcasting program supports informative and entertaining programming on

television and radio featuring the arts, health and aging issues and financial literacy.

MetLife Foundation is supporting National Public Radios coverage on national

social and economic issues faced by older Americans.

MetLife Foundation is partnering with the New York Philharmonic on its weekly

radio broadcast series New York Philharmonic This Week and with Orpheus


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Chamber Orchestra on the live radio broadcast of its performances from Carnegie

Hall.

With MetLife Foundation support, Sesame Workshop is promoting healthy habits

in India and Mexico among children and families, through specially-themed

episodes, public service announcements, online content, educational materials and

community events.

Education

The education program supports national nonprofit organizations working to improve

student achievement in the classroom and prepare students for success in college andcareers. The focus areas are:

Teaching and Learning

Strengthen teacher effectiveness, school leadership and community collaboration.

Communities in Schools helps students stay in school and make right choices by

connecting schools, students and families with needed community resources. National Staff Development Council is developing the Learning School Alliance

using research-based and practice-tested resources and technical assistance to help

teachers, principals and schools work and learn together more effectively day-to-

day to increase student achievement.

New Teacher Center is a pioneer in strengthening the capacity of education

leaders, schools and districts to nurture and retain new teachers. The Center has

developed the National Teacher Induction Network to encourage collaboration

among districts.


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College Access and Success

Increase preparation for, access to and success in college, particularly the critical first

year.

College Summit works with schools and communities, students, teachers and

principals to inspire and prepare larger numbers of disadvantaged students for

college access and success.

Education Trust works alongside educators, parents, students, policymakers, and

civic and business leaders nationwide, providing practical assistance in their

efforts to transform schools and colleges into institutions that serve all students

well.

MetLife Initiative for Student Success , Community College Leadership Program,

University of Texas, is assisting colleges in using results from the Survey of

Entering Student Engagement (SENSE) and related best practices to increase

early student success.

Employee Volunteer Programs

MetLife encourages employees to contribute time and effort to their communities.

Foundation-supported programs, such as Volunteer Ventures and the MetLife Volunteer

Service Awards, provide grants to nonprofit organizations for which MetLife employees

volunteer. In addition, the Volunteer Project Fund assists team volunteer activities in

MetLife communities in which MetLife employees, their friends and families work

together for a worthwhile purpose.

For more information on MetLife Employee Volunteer Programs, please

email [email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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PRODUCTS AND POLICIES


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PRODUCTS AND POLICIES

TYPES OF LIFE INSURANCE POLICIES

TERM INSURANCE

Term life insurance is the simplest and least expensive type, as it pays benefits only upon

the policy holder's death. With annual renewable term insurance, the policy holder pays a

low premium at first, which increases annually as he or she gets older. With level term

insurance, the premium amount is set for a certain number of years, then increases at the

end of each time period. Experts recommend that people who select term insurance make

sure that their policies are convertible, so they can switch to a cash-value plan later if

needed. They also should purchase a guaranteed renewable policy, so that their coverage

cannot be terminated if they have health problems. Term insurance typically works best

for younger people with children and limited funds who are not covered through an

employer. This type of policy enables such a person's heirs to cover mortgage and college

costs, estate taxes, and funeral expenses upon his or her death.

WHOLE LIFE INSURANCE

With whole life insurance, the policy holder pays a level premium on an annual basis.

The policy usually covers until the end of the person's life age 90 or 100. In most cases,

the policy holder is overcharged for the premium, and the extra amount goes into an

interest-bearing dividend account known as a cash value account. The individual can use

the money in this account to pay future premiums, or can withdraw it or borrow against it

to cover living expenses. With a variable whole life policy, the individual controls the

investments made with his or her cash value account. Selecting certain types of

investments, such as mutual funds, may allow the policy holder to increase the balance in


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the account significantly. Regardless of the performance of the investments, however, the

amount of the insurance benefit can never drop below its original value. When choosing a

whole life policy, experts note, it is important to analyze the fund's past performance and

inquire about commissions and hidden costs. Although whole life insurance can provide

added security upon retirement, it should not be considered a replacement for retirement

savings. In fact, Janecek revealed that, on the average, whole life policy holders only

yielded between 2 and 4.5 percent on their investments over a twenty-year period.

UNIVERSAL LIFE INSURANCE

Universal life insurance was introduced in the 1980s as a higher-interest alternative to

whole life insurance. Universal life premiums are based not only on the cost of the

insurance, but also on the interest rate offered on investments. Still, they are usually less

expensive than whole life policies. Universal life policies provide individuals with a

wider array of investment choices and higher projected interest rates. They are essentially

similar to a term policy with a fixed rate of interest guaranteed for a year at a time.

CURRENT ASSUMPTION LIFE INSURANCE.

Current assumption life insurance features a fixed annual premium for the duration of the

plan. This type of policy pays a set interest rate on premiums received, less the actual cost

of the insurance. They can be useful as a tax-deferred investment vehicle, since they

usually pay 2 to 4 percent more than banks. Policy holders may elect to overpay their

premiums early in the plan period to accumulate cash value. They can withdraw or

borrow from the funds later for any purpose, including retirement income, or can use the

cash value to pay the premiums for the remainder of the plan period.

RIDERS AND OPTIONS


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Most types of life insurance policies give individuals the opportunity to add optional

coverage, or riders. One popular option is accelerated benefits (also called living

benefits),

which pays up to 25 percent of the policy value to the holder prior to their death if they

are struck by a serious illness. Another option, known as a waiver of premium, allows an

individual to continue coverage without paying premiums if he or she becomes disabled.

Many policies also provide an accidental death and dismemberment option, which pays

twice the amount of the policy if the insured dies or loses the use of limbs as a result of

an accident.

HISTORY OF LIFE INSURANCE

Some of the important milestones in the life insurance business in India are:

1818: Oriental Life Insurance Company, the first life insurance company on Indian soil

started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company

started its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate

the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect

statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the

objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over by the


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central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act,

1956, with a capital contribution of Rs. 5 crores from the Government of India.

THE KEY FEATURES OF LIFE INSURANCE

INDUSTRY

Nomination:- When one makes a nomination, as the policyholder you continue to be the

owner of the policy and the nominee does not have any right under the policy so long as

you are alive. The nominee has only the right to receive the policy monies in case of your

death within the term of the policy.

Assignment :- If your intention is that your policy monies should go only to a particular

person, you need to assign the policy in favor of that person

Death Benefit :- The primary feature of a life insurance policy is the death benefit it

provides. Permanent policies provide a death benefit that is guaranteed for the life of the

insured, provided the premiums have been paid and the policy has not been surrendered.

Cash Value :- The cash value of a permanent life insurance policy is accumulated

throughout the life of the policy. It equals the amount a policy owner would receive, after

any applicable surrender charges, if the policy were surrendered before the insured's

death.

Dividends :- Many life insurance companies issue life insurance policies that entitle the

policy owner to share in the company's divisible surplus.

Paid-Up Additions :- Dividends paid to a policy owner of a participating policy can be

used in numerous ways, one of which is toward the purchase of additional coverage,

called paid-up additions.

Policy Loans :- Some life insurance policies allow a policy owner to apply for a loan


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life insurance schemes can be utilized for educational needs of the insurer or his children.

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE

ECONOMY

The Life Insurance Industry has an enviable track record among public sector units. It has

a Consistent profit and dividend paying record accompanied by a steady growth in its

financial resources. Through investments in the Government sector and socially- oriented

sectors the Industry has contributed immensely to the nation's development. The industry

is recognized as one of the largest financial Institutions in the country. The ventures

initiated by the industry in the areas of Mutual Fund, Housing Finance has done

exceedingly well in recent years. To protect the country's foreign exchange reserves, the

reinsurance arrangement are so organized that maximum retention is made possible

within the country while at the same time protecting interests of the policy holders.

INDIA AGAINST THE GLOBAL MARKETS

India is an under- insured market Indias insurance market is still at an early stage of

development. This is reflected in low penetration rates and low premiums per capita.

Insurable population only 10% of Indias population have life insurance According to

ING only 10% of the population is insured, which represents around 30% of the insurable

population. This suggests more than 300m people, with the potential to buy insurance,

remain uninsured

Global perspective India ranks 19th on the global stage


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India represents only around 0.66% market share (ranked 19th) of global insurance

premiums. As of 2004 the largest markets in size are the US (50x bigger than India),

Japan and the UK. Out of the Asian countries (ex Japan), South Korea is the largest

insurance market, Comprising 2.12% of global premiums, followed by China with

1.61%.

While insurance continues to reach out to the masses, I ndias insurance penetration

(premiums as a percentage of GDP) still remains very low at 3.2%. This can be split

between life penetration of 2.6% and non-life of 0.6%. On the world stage, penetrationrates are significantly below developed markets such as the US (9.4%), UK (12.6%) and

Australia (8%). Compared with Asian markets, India still falls well short of its nearest

peers with countries such as Japan, South Korea and Taiwan having some of the highest

penetration rates in the world (between 9% and 14%). Nevertheless, despite current low

spend on insurance, the trends in India remain positive. Since the opening up of the

market to foreign players in 2000, penetration has more than doubled from 1.5%. With

foreigners gaining momentum and building the insur ance, coupled with Indias favorable

macro overlay, we expect penetration rates to continue to expand.

FUTURE OF LIFE INAURANCE SCHEMES

The Indian Life insurance sector will register a high growth rate in the future years to

come says the report prepared by Fitch Ratings. This will be due to the innovative

products, better distribution network, better services coupled with other never-before

changes that have taken place in the insurance sector. The report laid stress on branding,


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services. Insurance companies view full-service brokers as a potentially new distribution

channel as well.

Discount Brokers and Online Financial Services

Direct sales of life insurance are growing rapidly, but many of the traditional full-serve

players seem to be letting it go. Across all financial services, consumers are expressing a

willingness to deal with a variety of providers on the web. Web sites are starting to pop

up offering consumer insurance products especially designed for distribution over the

web.

Independent Advisors

To gain a better understanding of the demand amongst independent advisors for trust

services and to gain a better feel for how independent advisors handle trust services, a

research was performed with independent advisors across several broker/dealers and

custodians. The interviews revealed that demand is greatest for living trusts among

independent advisors, followed by demand for corporate trustee services.

Life Insurance Agents, CPAs, & Lawyers

Independent insurance agents represent a number of companies and can research these

companies products to find the right combination for their clients. Independent agents &

insurance producer groups are growing in prevalence. Although producer groups are in

their infancy, their emergence may potentially be realignment in the distribution of

financial services. Independent shops realized that by pooling production and funding a


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central support office, they had increased buying power.

PRESENT SITUATION

A robust 36 percent increase in business by country's largest insurer LIC and strong

performance by most of the private players pushed the overall life insurance growth to 46

per cent in April-November 2005. With competition intensifying, the 14 life-insurers

collected Rs 16,604 crores in new premium in the first eight months of 2005-06

compared to Rs 11,337 crores in the year ago period, according to data compiled by

regulator IRDA. State-owned Life Insurance Corporation gave a tough fight to private players, who were fast increasing their market share, to collect Rs 12,271 crores in new

premium by selling over 1.3 crores policies.

LIC also improved its market share to 73.91 per cent from 73.82 per cent a month ago as

two private players - Birla Sunlife and SBI Life - continue to see fall in business. As

market continues to grow and more new players enter the space, LIC has rolled out

innovative products and doing aggressive marketing to attract more business.

The 13 private players led by ICICI Prudential and Bajaj Allianz are leaving no stones

unturned to expand business by netting more policyholders to increase their market share.

Among private players, ICICI Prudential ranked at the top by collecting about Rs 1,180

crores after logging 73 per cent growth, followed by Bajaj Allianz, which increased

business by 264 per cent to collect Rs 1,016 crores in premium. ICICI Prudential had a

market share of 7.11 per cent while Bajaj Allianz increased its market pie to 6.12 per


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cent.

Metalife had a market share of 2.96 per cent, followed by Birla Sunlife (1.84 per cent),

Tata AIG (1.78 per cent), SBI Life (1.52 per cent), Max New York Life (1.32 per cent)

and Aviva (1.12 per cent). Other players -- Kotak Mahindra Old Mutual, ING Vysya,

AMP Sanmar, Met Life and Sahara Life -- each had less than one per cent of the market.

Metalife Standard collected Rs 491 crores in premium income till November, followed

Birla Sunlife (Rs 305 crores), Tata AIG (Rs 296 crores), SBI Life (Rs 252 crores), Max New York Life (Rs 219 crores) and Aviva (Rs 186 crores).

In group insurance, LIC continued to dominate with a market share of about 81.32 per

cent by covering 8.638 million lives till November this fiscal. Among the private

insurers, SBI Life was at the top with a market share of 5.27 per cent, followed by Tata

AIG (4.16 per cent), ICICI Prudential (2.34 per cent), Met Life (1.9 per cent), Aviva

(1.16 per cent) and Bajaj Allianz (1.14 per cent).

TOP TEN INSURERS (LIFE)

Insurer

Market Share (%)

LIC

74.87

ICICI Prudential


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7.53

Bajaj Allianz

4.18

Metlife Standard

3.20

Tata AIG

1.93

Birla Sun life

1.84

SBI Life

1.69

Max New York life

1.44

Aviva

1.14

Kotak Mahindra old mutual

0.77


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STRUCTURE, PERFORMANCE PRODUCTS/SERVICES AND

PROBLEM FACED

The right investment strategies won't just help plan for a more comfortable tomorrow --

they will help you get Sar Utha ke Jiyo . At Metlife, life insurance plans are created

keeping in mind the changing needs of family. Its life insurance plans are designed to

provide you with flexible options that meet both protection and savings needs. It offers a

full range of transparent, flexible and value for money products. Metlife products are

modern and contemporary unitized products that offer unique customer benefits like

flexibility to choose cover levels, indexation and partial withdrawals. (Source:

www.hdfcslic.com)

PLANS THAT ARE OFFERED BY METLIFE STANDARDS LIFE INSURANCE

TERM PLAN-

Term Plan is a pure risk product that aims to cover your life at a nominal cost. You may

want to take this plan to cover your outstanding debts like a mortgage, a home loan etc.

Since this is a pure risk cover product, there is no maturity benefits payable on survival.

This is a non-participating plan.

Term life insurance is normally the most inexpensive form of life insurance. Term life

insurance provides protection for a specified period of time, or the term of the policy. A

benefit is paid only if the insured dies during the term of the policy. If the insured is still

living at the end of the term, the policy expires without value.


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ENDOWMENT PLAN-

Form of Life Insurance where the face value is paid out to the insured or a beneficiary

after a specified contract period. For example, an endowment policy that provides

benefits for 20 years until the insured is 65, pays its face value after 20 years whether the

insured lives or dies.

Endowment Plan is a protection plan that covers your life and at the same time ensures

that your money does not lie idle. It invests a portion of your premium in financial

instruments and ensures a considerable growth in savings.

ULIP PLAN-

ULIP is life insurance solution that provides for the benefits of protection and flexibility

in investment. The investment is denoted as units and is represented by the value that it

has attained called as Net Asset Value (NAV).

PROTECTION PLAN

Protection Plans help you shield your family from uncertainties in life due to financial

losses in terms of loss of income that may dawn upon them incase of your untimely

demise or critical illness. Securing the future of ones family is one of the most important

goals of life. Protection Plans go a long way in ensuring your familys financial

independence in the event of your unfortunate demise or critical illness. They are all the

more important if you are the chief wage earner in your family. No matter how much you

have saved or invested over the years, sudden eventualities, such as death or critical

illness, always tend to affect your family financially apart from the huge emotional loss.


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For instance, consider the example of Amit who is a healthy 25 year old guy with a

income of Rs. 1,00,000/- per annum. Let's assume his income increases at a rate of 10%

per annum, while the inflation rate is around 4%; this is how his income chart will look

like, until he retires at the age of 60 years. At 50 years of age, Amits real income would

have been around Rs. 10,00,000/- per annum. However, in case of Amits unfortunate

demise at an early age of 42 years, the loss of income to his family would be nearly Rs.

5,00,000/- per annum.

RETIREMENT PLANS

Retirement Plans provide you with financial security so that when your professional

income starts to ebb, you can still live with pride without compromising on your living

standards. By providing you a tool to accumulate and invest your savings, these plans

give you a lump sum on retirement, which is then used to get regular income through an

annuity plan. Given the high cost of living and rising inflation, employer pensions alone

are not sufficient. Pension planning has therefore become critical today.

Indias average life expectancy is slated to increase to over 75 years by 2050 from the

present level of close to 65 years. Life spans have been increasing due to better health

and sanitation conditions in the country. However, the average number of years of

employment has not been rising commensurately. The result is an increase in the number

of post-retirement years. Accordingly, it has become necessary to ensure regular income

for life after retirement, so that you can live with pride and enjoy your twilight years


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Metlife Pension Supreme

Today, you are busy climbing the ladder of success and realizing your dreams. Today,

time is with you. Just take a moment and think. Will your income be the same forever?

Will you be able to live life on your own terms even after you retire? The Metlife Pension

Supreme is Unit Linked plan, designed to provide a post-retirement income for life with

the freedom to choose your retirement date. This plan gives you with an outstanding

investment opportunity to maximise your savings by providing you a choice of

thoroughly researched and selected investments. This plan also gives Bumper Addition tothe fund value at vesting

Why do I need Savings & Investment Plans?

You have always given your family the very best. And there is no reason why they

shouldnt get the very best in the future too. As a judicious family man, your priority is t o

secure the well-being of those who depend on you. Not just for today, but also in the long

term. More importantly, you have to ensure that your familys future expenses are taken

care, even if something unfortunate were to happen to you.

A big factor that you need to consider while building your wealth is inflation. It has a

dual impact on your hard-earned savings. Inflation not only erodes your current

purchasing power but also magnifies your monetary requirements for the future. Sample

this: An 35 Year individual needs to invest Rs. 36,000/- per year with 8% returns to build

a corpus of Rs. 10,00,000/- by the age of 50 Years.Types of Savings & Investment Plans.

Metlife Endowment Super Suvidha


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As a judicious family man, your priority is to secure the well-being of those who depend

on you. Not just for today, but also for the long term. With our Metlife Endowment Super

Suvidha, you can start building your savings today and ensure that your family remains

financially independent, even when you are not around. It is a convenient plan, which

saves you from the need of going for Medicals. This Unit Linked Plan gives you with an

outstanding investment opportunity to maximise your savings by providing you a choice

of thoroughly researched

Advantages.

1. No need to go for medicals. Just filling a Short Medical Questionnaire will do .

2. This plan gives you Bumper Addition to the fund value at Maturity.

3. Your fund value will be augmented by addition of Bumper Addition, which is a

percentage of your original annualised premium In the long term, the key to

building great maturity values is a low Fund Management Charge (FMC). We

have a low FMC of only 1.25% per annum (of the funds value) You can choose

to pay your premium as either Half Yearly or Annually.

4. You also have a range of convenient auto premium payment options

5. You can change your investment fund choices in two ways:

a. Switching: You can move your accumulated funds from one fund to

another anytime Premium Redirection:

b. You can pay your future premiums into a different selection of funds, as

per your need and selected investments. This plan also gives Bumper


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You have always given your family the very best. And there is no reason why they

should not get the best in future too. With rising costs, ensuring the best got your family

will need some financial planning. With our Metlife Endowment Super, you can start

building your savings today and ensure that your family remains financially independent,

even when you are not around. This Unit Linked Plan also gives you with an outstanding

investment opportunity to maximise your savings by providing you a choice of

thoroughly researched and selected investments.Metlife SimpliLife

You have always believed in living life on your own terms. So why let the changingrealities of everyday life overwhelm you and make your aspirations take a back seat?

With our Metlife SimpliLife Plan, you can plan now to maximize your savings and

secure your and your familys future. It is a convenient plan, which saves you from the

need of going for Medicals. This Unit Linked Plan gives you with an outstanding

investment opportunity to maximize your savings by providing you a choice of

thoroughly researched and selected investments

CHILDRENS PLANS

Childrens Plans helps you save so that you can fulfill your childs dreams and

aspirations. These plans go a long way in securing your childs fut ure by financing the

key milestones in their lives even if you are no longer around to oversee them. As a

parent, you wish to provide your child with the very best that life offers, the best possible

education, marriage and life style.

Most of these goals have a price tag attached and unless you plan your finances carefully,


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you may not be able to provide the required economic support to your child when you

need it the most. For example, with the high and rising costs of education, if you are not

financially prepared, your child may miss an opportunity of a lifetime.

Today, a 2-year MBA course at a premiere management institute would cost you nearly

Rs. 3,00,000/- At a assumed 6% rate of inflation per annum, 20 years later, you would

need alm

rajiv projec

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