Shriram Life Insurance New Business Premium Up 88% in H1FY24
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Shriram Life Insurance announced an 88% increase in new business premium for retail and group policies in H1FY24 at Rs 860 crore compared to the year-ago period. The company sold 1,42,914 individual policies in the first half of the year, pushing the insurer to the 7th position in number of policies sold among private insurers in the country. The company recorded a profit after tax (PAT) of Rs 70 crore for H1FY24.
For Q2FY24 alone, the insurer’s gross premium stood at Rs 745 crore. The company sold 87,575 policies in the July to September 2023 quarter. The company’s Assets Under Management (AUM) up to September stood at Rs 10,146 crore, a rise of 25% Y-o-Y.
Casparus J H Kromhout, MD & CEO, Shriram Life Insurance said, “With every quarter, we are intensifying our focus on rural families, reaching out to them with the right kind of solutions and easy-to-use technology. This is also a priority segment for our regulator and as a 17-year-old company serving this category ourselves, we are keenly looking at supporting and educating these first-time policyholders besides making their whole policy journey seamless. Our appointment as lead life insurer in Telangana will help us achieve greater strides in voicing IRDAI’s mission of ‘Insurance for All’ by 2047.”
Shriram Life has already kickstarted a series of insurance awareness campaigns in the state. On Oct 20th 2023, the company convened its first State Level Insurance Committee meeting with members from IRDAI, State Administration, and SPOCs of other insurers in Hyderabad post its appointment as lead insurer for Telangana.
Shriram Life Insurance will be building a roadmap for insurance penetration in Telangana, focusing on underpenetrated regions, ensuring inclusion among all demographics, building insurance distribution channels, and even addressing grievance redressal gaps through training. The company will also join hands with other private insurers and set milestones to cover lives of rural families.
Shriram Life Insurance provides policyholders with accessible technology to bridge the gap between them and the company. Its annuity policies are also gaining traction after its empanelment as Annuity Service Provider last year.
Shriram Life Insurance, promoted jointly by Shriram Group and Africa’s Sanlam, embarked on a series of partnerships with regional financial institutions across the country to boost its business growth particularly in rural segments. The company also boosted its distribution strength to increase its presence in the deep rural, along with superior in-house built tech capabilities to ensure faster reporting of claims and improving persistency. The company sources 45% of its business from the rural segment.
Definitions & Abbreviations:
Annualized Premium Equivalent - Sum of annualized first year regular premiums & 10% weighted single premiums and single premium top-ups.
Assets under Management - Total value of Shareholders’ & Policyholders’ investments managed by the insurer.
New business received premium - Sum of first year premium and single premium, reflecting the total premiums received from the new business written.
Solvency ratio - Ratio of available solvency margin to required solvency margin.
Total premium - Total received premiums during the year including first year single and renewal premiums for individual and group business.
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