HYDERABAD: Shriram Life Insurance on Thursday said it registered a profit after tax (PAT) of Rs 35.4 crore in Q1FY24. The company earned Rs 717 crore of total premium, a surge of 82% over the year ago period.
Jointly promoted by Shriram Group and Africa’s Sanlam Group, the company reported Assets Under Management (AUM) for Q1FY24 at Rs 9,688 crore, growing 23% from Rs 7,866 crore in Q1FY23. The insurer sold 56,493 policies during its first quarter.
Its new business premium – which includes both individual policies as well as group policies – stood at Rs 488 crore, rising from Rs 207 crore in the year-ago period. For group premiums, the new business stood at Rs 354 crore from Rs 93 crore last fiscal. For individual business the company grew at 18%, higher than the industry growth of 8%. Growing individual new business would be a key focus area for the current fiscal with the company expecting to grow by 20-25% in this segment.
Casparus J Kromhout, MD-CEO, Shriram Life Insurance, said, “We are focused on reaching more customers and exploring newer markets to increase insurance penetration in the rural and middle-income segment.”
The company has launched a Golden Jubilee Plan this financial year, commemorating Shriram Group’s 50th year of operations. The plan allows policyholders to cover their whole life or a specified period enabling them to achieve their goals with flexibility. Last year, the company launched two plans – Early Cash Plan and Premier Assured Benefit.
Shriram Life Insurance reported robust earnings of Rs 156 crore in the fiscal ended March and a retail annualised premium equivalent (APE) growth 24% YoY. The company focuses on providing life insurance to the common man; approximately 45% of its policies were sold in the rural segment.
The company’s claims settlement ratio for last fiscal was 97.4%, with over 91% of its non-investigated claims (claims arising after three years of policy inception) settled through the Rapid Claims Settlement process, ensuring settlement within 12 hours from last document received. Approximately 46% of Shriram Life’s retail claims during the last fiscal were from the rural segment.