Aditya Birla Sun Life Insurance launches

 Aditya Birla Sun Life Insurance launches 

Vision LifeIncome Plus,

a plan to suit customer’s money needs at all life stages

~ A customizable savings plan offering regular income
and additional bonus ~

Aditya Birla Sun Life Insurance (ABSLI), the life insurance subsidiary of Aditya Birla Capital Limited (ABCL), announced the launch of a hyper-flexible savings plan - ABSLI Vision LifeIncome Plus Plan that provides guaranteed regular income plus flexible bonus pay outs.

This non-linked participating individual plan has been designed to offer various plan options which can be tailor-made to perfectly suit customers’ unique financial needs across different life-stages. This savings plan provides a customer with the comfort of a guaranteed regular income for up to 30 years to help them achieve their evolving life goals while reaping the benefits of a comprehensive life insurance cover. Additionally, the plan also brings an upside through completely flexible bonus pay-outs which can be accumulated for wealth creation or withdrawn at the customer’s convenience for an instant access to their money.

ABSLI Vision LifeIncome Plus Plan offers tax-free guaranteed additional income for life, besides providing the benefit of liquidity or cash in hand whenever one requires funds.

Commenting on the launch, Mr. Kamlesh Rao, MD & CEO, Aditya Birla Sun Life Insurance, said, “Amid the uncertainty caused by the pandemic, ups and downs in the economy and the markets, saving sufficiently for the future —tomorrow or three decades from now — has become extremely crucial. Individuals today need plans which can be personalized to fit their unique needs at different life stages and can assure complete security of future financial goals. ABSLI Vision LifeIncome Plus Plan will cater to this immediate need of customers by maximizing their income and minimizing risk. This holistic solution will not only help individuals meet their short and long-term financial requirements, do legacy planning but will also offer bonus income to further increase wealth or build contingency fund.”

ABSLI Vision LifeIncome Plus Plan offers the following benefits, thereby providing enough flexibility to customize the product as per customer’s requirements:

·         Choice of 3 Benefit options: Flexibility to choose amongst three Benefit Options i.e. Short-Term Income, Long Term Income and Whole Life Income (Till Age 100 or Till Age 85) to cater to customers’ needs across all life stages.

o    Short Term Income - Guaranteed Monthly Income Payable for 10 years + Bonuses This can be an ideal solution for salaried individuals below 45 years, who can plan for secured income or early retirement.

o    Long Term Income - Guaranteed Annual Income Payable for 20, 25, 30 years + Bonuses. This can help individuals cater to specific milestones and build legacy.

o    Whole Life Income - Guaranteed Annual Income Payable for till Age 85 or Age 100 + Bonuses. This is an ideal plan for retirement and legacy planning.

 ·         Guaranteed Regular Income: A regular flow of guaranteed income for the customers’ chosen Benefit Pay-out Period to safeguard their savings

·         Flexible Bonus Payouts: Bonus declared in the form of ‘Paid Up Additions’, that can be accrued to build a wealth corpus or a contingency fund. The ‘Paid Up Additions’ can also be availed as cash pay-outs from first policy year onwards for instant liquidity needs. The plan shall also come with the additional flexibility to partially/fully withdraw the accrued Paid Up Additions anytime during the Policy Term.

 ·         Comprehensive Life Cover: The plan offers life insurance cover until age 100 years. This plan shall offer a lump-sum benefit to the nominee, in case of unfortunate death of the life insured anytime during the Policy Term. Additionally, on opting for the Short Term Income option, this customizable plan will offer an inbuilt policy continuance benefit, which shall waive off remaining premiums in case of the unfortunate death of the life insured and thereby safeguard the customer’s family’s future in his/her absence.

 ·         Customizable Benefits: Option to hyper-personalize this comprehensive plan by enhancing it with riders to suit customer’s requirements at a nominal cost.

Aditya Birla Sun Life Mutual Fund launches

Aditya Birla Sun Life Mutual Fund launches Aditya Birla Sun Life ESG Fund

An open-ended equity scheme investing in companies following
Environment, Social & Governance (ESG) theme

 

NFO opens on December 04, 2020 and closes on December 18, 2020

 

1.      Fund house has partnered with leading global ESG research provider Sustainalytics for ESG scores and ratings

2.      Each company will be scored on 3 pillars of ESG. Non-conforming sectors like Cluster Munitions, Anti-Personnel Mines, Chemical and Biological Weapons, Coal & Tobacco etc. to be excluded

3.      Can invest in international securities adhering to ESG practices up to 35% of the fund’s net assets

 

Aditya Birla Sun Life AMC Limited, a subsidiary of Aditya Birla Capital Limited (a significant non-bank financial services’ conglomerate), and investment manager to Aditya Birla Sun Life Mutual Fund (ABSLMF) announced today the launch of Aditya Birla Sun Life ESG Fund, an open-ended equity scheme investing in companies following Environment, Social & Governance (ESG) theme. The Fund endeavours to participate in ESG aligned existing and emerging opportunities, eliminate risky companies and invest in high quality & sustainable growth compounders to generate better risk adjusted returns.

 

Aditya Birla Sun Life Mutual Fund has partnered with leading global ESG research provider ‘Sustainalytics’ for ESG scores and ratings which will be the filter for defining the investment universe. Each company will be scored on 3 pillars of ESG and non-conforming sectors will be excluded. This will further be screened basis fundamental analysis and financial parameters with a combination of top-down and bottom-up approach. The fund will be market cap agnostic.

 

Commenting on the new fund, A. Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC Limited said: “Environment, Social and Governance factors, or ESG have become increasingly important parameters of investment decisions worldwide, beyond the traditional financial factors. This has gained further importance after Covid-19, an insight that also our survey across 1600 plus respondents shows. The majority of respondents felt their attitude towards ESG in investment decision making had changed after the pandemic. This is an important shift in mindset. ESG concept is at a very nascent stage in India and is widely unexplored, though it’s an established theme globally. With the Indian Government too emphasising its ESG focus recently and global flows into ESG focused sectors and companies seeing consistent increase, there is potential for this theme to play out secularly”.

 

Historically ESG compliant companies have been found to be less risky, have better operational performance and generated better returns too. The portfolio looks to benefit from rising flows into ESG compliant companies which increases the possibility of re-rating and augurs well for longer term market performance. From large institutional to individual investors, there is a growing consideration of non-financial risks in investment decisions. ESG lens enables to look beyond the traditional investment parameters to identify high quality socially responsible companies for investing. 

 

The minimum application amount for this fund is Rs.500/- and in multiples of Re. 1/- thereafter, during the New Fund Offer period. Investors can come into this fund both in the SIP or Lumpsum route.

Aditya Birla Capital reports results for

Aditya Birla Capital reports results for the quarter ended 30th June, 2020

Resilience across businesses despite lockdown, with focus on balanced growth, liquidity, technology enhanced processes and cost control

▪ 91% of overall Aditya Birla Capital branches operational with strict health protocols

▪ Consolidated Net Profit at Rs. 198 Crore (grew 1.4 times over previous quarter)

▪ Consolidated Revenue: Rs. 4,293 Crore (grew 9% year on year)

Aditya Birla Capital Limited (“The Company”) announced its unaudited financial results for the quarter ended 30th June 2020.

The Consolidated Revenue of the Company grew 9% year on year to Rs. 4,293 Crore. The Company,
through its subsidiaries, continued its consistent delivery of profit through its diversified business model.

The consolidated profit after tax (after minority interest) grew 1.4 times over Q4 FY20 to Rs. 198 Crore, marked by resilience across businesses. This is after providing an additional Rs. 62 Crore as COVID provisions in its lending businesses in Q1 FY21.

With 91% of its branches operational with strict health protocols, the company looked to normalise its perations through Q1 FY21. The Company will continue to monitor developments in the market as
lockdowns get lifted. Aggregated2 operating expenses (excluding volume linked and Health Insurance business) have reduced 10% over the last quarter.

The performance highlights of the key subsidiaries of Aditya Birla Capital Ltd. were:
Lending:

• Overall lending book (NBFC and Housing Finance) stood at Rs. 58,073 Crore

• Maintained Core operating profit in NBFC and Housing Finance despite slow recovery under
lockdown

• Lending book is backed by well-matched asset and liability mix with adequate liquidity

• Raised over Rs. 1,500 Crore of long-term funds during the quarter

• Continue to have strong focus on quality of book with reduced ticket sizes across the board
ramp up of activity, currently 100% branches operational

o Maintained Core operating profit with pre provision operating profit at Rs. 392 Crore, during the quarter

o Additional COVID related provisions of Rs. 50 Crore in Q1 FY21

o Cost to income ratio reduced by 223 bps from 33.5% in Q4 FY20 to 31.3% in Q1 FY21

o The Net profit after tax stood at Rs. 140 Crore vis-à-vis Rs. 137 Crore in previous quarter
Housing Finance business

o Loan book at Rs. 12,134 Crore, with 96% retail

o Net interest margins expanded by 29 bps to 3.27% over previous year

o Maintained core operating profit with pre provision operating profit at Rs. 52 Crore

o Additional COVID related provisions of Rs. 12 Crore in Q1 FY21

o Strong drive towards technology deployment to drive sales and customer engagement with 85% of sourcing digital in July ’20

o The Net profit after tax for the quarter stood at Rs. 28 Crore vis-à-vis Rs. 21 Crore in Q4 FY20 and Rs. 27 Crore in Q1 FY20

Asset Management

• Overall closing assets under management grew by 8% to Rs. 2,17,643 Crore from March 20 to June 20

• Closing equity AUM grew by 19% to Rs. 78,017 Crore from March 20 to June 20

• Keeping its continued focus on building retail customer franchise, the retail AAUM grew by 12% over the last quarter; while the SIP AUM increased by 27%, quarter on quarter

• Maintained profitability with Profit before tax/AAUM at 24 bps vis-à-vis 22 bps in Q4 FY20

• Digital transactions account for 94% of overall transactions as compared to 81% in previous quarter
Insurance:

• Total gross premium of life insurance and health insurance grew 38% year on year to Rs. 1,936 Crore


Life Insurance business

o Individual First Year Premium (FYP) grew 5% year on year to Rs. 309 Crore, significantly ahead of industry year on year degrowth of 23%

o Consistent improvement in quality with 13th month persistency by 200 bps, year on year, to 81%, from 79%

o Strong focus on digital with 96% individual business sourced digitally

o Maintained gross margin at 33.1% despite falling interest rate scenario

o Sharp reduction in Opex to premium ratio, year on year, from 23.1% to 16.3% growth of 16% for Stand Alone Health Insurers, with Retail business contributing 73%

o Covering 8.9 million lives out of which over 5 million lives covered through micro and byte size products

o Business continues to build scale with significant improvement in combined ratio at 132% vs. 146% in the previous year

o Robust digital enablement with 98% digital issuance in Q1 FY21 vs. 93% in FY20 and digital renewals at 92% vs. 65% in previous year

Other businesses

• Profit before tax grew 64% year on year to Rs. 41 Crore from Rs. 25 Crore

o General Insurance broking profit before tax grew 20% year on year to Rs. 29 Crore driven by technology adoption

o ARC platform continues to scale up with AUM at Rs. 2,500+ Crore

Aditya Birla Capital has a diversified portfolio of businesses catering to the lifetime money needs of its customers. This diversification also allows the company to capture opportunities in different segments of the market and deliver consistent growth.

Brand Aditya Birla Capital touches over

Brand Aditya Birla Capital touches over 52 million people through their ‘MoneyForLife’ and ‘HealthFromHome’ campaigns

Campaigns encourage people to focus on their physical and financial well-being

Aditya Birla Capital is the common brand used by financial services subsidiaries of Aditya Birla Capital Limited (ABCL). During these unprecedented COVID times, social media initiatives were undertaken by the brand to connect with people to help them with their two biggest worries - health and financial wellbeing. The campaigns had two vital spokes #MoneyforLife and #HealthfromHome. Collectively through both these initiatives, the brand Aditya Birla Capital reached over 52 million people within the first quarter of FY 20-21. The campaigns saw over 100 Facebook Live sessions garnering close to 11.1 million engagements including video views.

As the nationwide Covid-19 lockdown started, social life took a backseat affecting physical and mental well-being of people all over. Even though working from home made life easier, it also had adverse effects on people’s mental, physical and emotional health. Dwindling markets, decline in businesses and job losses made people wary about their wealth. In this regard, with a purpose to influence people and to help them focus on maintaining a healthier life while managing their money better, the brand started an initiative under the aegis #MoneyForLife and #Healthfromhome. The campaigns were based on one of the most important pillars of the brand – Advise, which underlines the brand’s behavior across all the solutions offered by ABCL’s subsidiaries.

#MoneyForLife was aimed at motivating people to live life without any financial stress by managing their money better. People tuned to the virtual platforms like Facebook live, podcasts etc. to seek advice on how they could manage their finances with ease and simplicity with the help of an expert. Appointments were made available to the larger audience wherein they could consult wealth managers who were experts in this domain and could offer useful advice. High engagement testified that the campaign was liked by customers and prospects alike.

On the other hand, #Healthfromhome a Facebook live series included yoga, home workouts, healthy nutritional cooking and doctor Q&A sessions by several health experts and enthusiasts. The sessions were aimed at improving mental, physical and emotional health and well-being of people to combat stress and sustain a healthy life whilst at home.

Facebook acknowledged the Money Advice campaign, which was supported by FB Lives by Advisors of ABCL’s subsidiaries, and considered it for a case study, for using the platform to drive exemplary results. Facebook also bestowed the Hall of Fame recognition to the #Healthfromhome campaign for engaging with millions.

Mr. Ajay Kakar, Chief Marketing Officer, Aditya Birla Capital Limited said, “COVID-19 has brought health and wealth to the fore as two key concerns and needs of every Indian. Aditya Birla Capital Limited, the Financial Services group that offers solutions through its subsidiaries for both health and wealth under one brand, considered this time to reach out to people with relevant information and expert advice, without any direct sales pitch. We realized that during such conditions people feel uncertain and directionless especially with their health and finances – this guided us to choose the social media platform to reach out to as many people as we could and stand by them. We took this opportunity to live up to our purpose of enabling every individual to live the life they truly desire, through money solutions that are easy to understand and implement.”

These campaigns helped the brand Aditya Birla Capital to touch many lives while helping and supporting many to navigate through their health and wealth worries during the pandemic.