2009-10 - Aditya Birla Nuvo, Ltd

BIRLA SUN LIFE INSURANCE COMPANY LIMITED
The attendance of the Investment Committee members at the Investment Committee meetings
during FY 2009-10 is given in Table 14:
Name of the Committee Member
No. of Investment Committee meetings
during FY 2009-10
Held
Attended
Mr. Ajay Srinivasan 04 04
Mr. Bishwanath N. Puranmalka 04 02
Mr. Ernest Chiu* 03 02@
Mr. Eugene Lundrigan** 01 01
Mr. Fabien Jeudy 04 03
Ms. Keerti Gupta 04 04
Mr. Mayank Bathwal 04 04
Mr. Venkatesh S. Mysore# 01 01
Mr. Vikram Kotak 04 04
Table 14
* Appointed as Member w.e.f. July 22, 2009. He ceased to be a member w.e.f. January 23, 2010
** Ceased to be Member w.e.f. June 3, 2009
@ inclusive of meeting attended via telephone conference
# appointed as Member w.e.f. January 23, 2010
III.5. ASSET LIABILITY MANAGEMENT COMMITTEE
Pursuant to the nature of products sold by the Company it is crucial to have an Asset Liability
Committee to manage the various risk and arising on account of product guarantees, interest rates
movements, duration mismatches, cash flow mismatch, capital market, market liquidity etc.
As per IRDA CG Guidelines constitution of “Asset Liability Management Committee” is mandatory
for life insurance companies. In view of the foregoing provision, BSLI’s Board had constituted an
“Asset Liability Management Committee” at its meeting held on November 10, 2009.
Asset Liability Management Committee sets policy framework and operating guidelines for asset
liability matching to safeguard the interest of Shareholders and Policyholders. This Committee
insures that the assets are created in line with the liabilities. The Committee monitors, reviews &
evaluates all possible variant that can have an impact on the ALM and insures requisites measures
are placed to manage risk arising out of these variants.
The documented charter, duly approved by the Board, holds the Investment Committee responsible,
inter-alia, for the following:
a) Setting the insurer’s risk/reward objectives and assess policyholder expectations;
b) Quantifying the level of risk exposure and assessing the expected rewards and costs associated
with the risk exposure;
c) Formulating and implementing optimal ALM framework, policies, guidelines, strategies (both
at product level and enterprise level) and meeting risk/reward objectives;
d) Laying down the risk tolerance limits;
e) Monitor, assess and simulate various scenario on interest rates, capital markets, Liquidity
scenarios etc. that can have impact on capital requirements;
f) Monitoring risk exposures at periodic intervals and revising ALM strategies where required;
g) Placing the ALM information before the Board at periodic intervals; and
h) Carrying out any other functions as is mentioned in the terms of reference of the Asset Liability
Management Committee and as may be specified by the IRDA by way of notifications or
necessary amendments in applicable statutes and/or guidelines, from time to time.
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