Shriram Life Posts 62% Surge in New Business Premium
4 min read
Driven by focussed selling and pan India partnerships, Shriram Life Insurance Company reported impressive earnings for the year ending March 31, 2024, with total new business premium growing by 62% at Rs. 1,871 crore compared to Rs. 1,152 crore last fiscal. Individual new business premium grew 39% to close the year at Rs. 938 crore from Rs. 675 crore in FY23.
In the fourth quarter from January to March 2024, the company posted total new business income of Rs. 596 crore, up 50% from Rs. 397 crore YoY. Total premium for Q4FY24 stood at Rs. 1,205 crore as against Rs. 912 crore in Q4FY23. The number of policies also increased 2x in Q4FY24 to 1,76,701 from 88,355 in Q4FY23.
Shriram Life’s individual new business premium growth was significantly higher than the private life insurance sector, which grew at only 7% in FY24, making Shriram Life one of the fastest-growing life insurers in the country.
In FY24, group premium income rose 95% to reach Rs 932 crore from the previous fiscal’s Rs. 477 crore. Renewal premium stood at Rs. 1,637 crore as against Rs. 1,394 crore YoY. The insurer posted a total premium income of Rs. 3,508 crore, a 38% rise from Rs. 2,546 crore in FY23. The number of individual policies rose to 4,46,730 from 2,88,222 during FY24 at 55%.
The company earned a Profit After Tax (PAT) of Rs. 158 crore this fiscal compared to Rs. 156 crore YoY. Its Assets Under Management (AUM) in FY24 rose to Rs. 11,282 crore, a 25% increase from Rs. 9,012 crore in the year-ago period.
Casparus J H Kromhout, MD & CEO, Shriram Life Insurance said, “Shriram Life’s commitment to driving life insurance for the rural and urban middle class is led by a combination of innovative strategies and technology. These results aptly reflect the work we started a year ago by bolstering sales and aggressively expanding across rural India. By closing the gap between the need for coverage and the availability of affordable plans, we will continue to increase reach and become the most trusted insurance provider for our customer segments.”
During FY24, the company supported 58,800 claims in both individual and group policies compared with 48,528 claims settled last fiscal. The company reported a claim settlement ratio of 98% for individual policies while its solvency ratio stood at 2.06%. The company ensures prompt claims settlement for customers with 93% of all non-investigated claims settled within 12 hours of last document received.
Shriram Life is expanding its business across geographies with an initial focus on 15 states. In these target states, the company will focus on customer segments where the need for life cover is the highest yet have been financially underserved. The insurer embarked on sales diversification by developing in-house sales capacity as well as partnerships with banks and other institutions.
Shriram Life has also amplified its tech capabilities to meet its growing customer base. Initiatives such as the issuance of Shriram Smart Suraksha Card (its policy bond in a ‘pocket’), ShriMithra app, chatbot ShriA and WhatsApp service channels provide enhanced customer service in the language of choice. Shriram Life is licensed to use Aadhaar eKYC with facial recognition for hassle-free and paperless customer onboarding. This service along with ShriMithra app has enabled approx. 90% paperless proposals across channels.
The company was appointed as lead life insurer for Telangana by IRDAI, helping to increase awareness and participation in remote areas. With Term plans starting at Rs. 100 per month and Endowment plans starting at Rs. 500 per month, Shriram Life aims to provide its customers with cost-effective and innovative financial solutions that offer coverage as well as savings options. Shriram Life’s empanelment as an Annuity Service Provider with PFRDA has also been a crucial step towards providing holistic solutions to the customer.
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All figures in Rs. Crores
About Shriram Life Insurance Company
Shriram Life Insurance Company offers term, endowment, ULIPs and annuities for the rural and urban middle-class at affordable premiums. The average ticket size of the company for individual policies stands at around Rs. 23,000. The company’s protection and long-term savings plans help it give working-class families comprehensive life cover besides offering stable investment solutions for their key life goals. The company has an in-force policyholder base of over 10 lakh.
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