Shriram General Insurance Reports 31% Growth In Gross Premium For Q1 FY25
During Q1 FY25, SGIC recorded a net profit of Rs 114 crore, up 17 per cent from Rs 98 crore in the same period last year
Shriram General Insurance Company (SGIC) has announced a robust 31 per cent year-on-year increase in its Gross Written Premium (GWP) for the first quarter of the fiscal year 2025, totaling Rs 733 crore. This growth surpasses the industry average of 13 per cent, showcasing SGIC's strong performance in a competitive market.
During Q1 FY25, SGIC recorded a net profit of Rs 114 crore, up 17 per cent from Rs 98 crore in the same period last year. The company’s Assets Under Management (AUM) grew by 8.74 per cent, reaching Rs 12,268 crore as of June 30, 2024, compared to Rs 11,282 crore a year ago. SGIC's solvency ratio stands at an impressive 3.87, the highest in the country, far exceeding the regulatory requirement of 1.5.
The motor insurance segment led the growth, with a 34 per cent increase in GWP, while the non-motor segment grew by 10 per cent. The company issued 1,282,017 policies and settled 48,290 claims in Q1 FY25, compared to 39,076 claims in the same period last year. The number of live policies increased to 62.85 lakh from 57 lakh a year ago.
Segment-wise GWP till June 2024 includes Motor at Rs 663.86 crore with a 34 per cent growth, Fire at Rs 28.27 crore with a 19 per cent growth, Engineering at Rs 5.96 crore with a 37 per cent growth, and Others Miscellaneous at Rs 35 crore with a 0.92 per cent growth, totaling Rs 733.08 crore with an overall growth of 31 per cent.
In comparison to the industry, SGIC's motor segment grew by 34 per cent against the industry's 12 per cent, while its non-motor segment grew by 10 per cent, slightly below the industry's 14 per cent growth rate.
Anil Aggarwal, MD & CEO of Shriram General Insurance Company, commented, “Shriram General Insurance has achieved a notable overall growth of approximately 31 per cent in Gross Written Premium (GWP). This growth has been significantly driven by our Motor Line of Business. In the recent quarter, SGI introduced several new products, including Shri Cyber Insurance. We are also planning to launch more innovative products in the upcoming quarter to further expand our offerings.”
Future plans for Shriram General Insurance Company (SGIC) include targeting the crop insurance market, which has an estimated industry premium potential of Rs 30,000 crore. SGIC aims to enhance efficiency and innovation to boost non-motor premiums and achieve a balanced business mix.
In its new foray into health insurance, SGIC launched benefit-based products such as Hospital Daily Cash and Critical Illness Insurance last year, selling over 5,000 policies in Q1 FY25. The company plans to introduce Arogya Sanjeevani, an indemnity-based product, to further expand its health insurance portfolio.
Recognising the importance of insurance for sustaining businesses, SGIC is developing customised solutions for India's 63 million MSMEs. As part of the "Insurance for All by 2047" initiative, SGIC has been appointed by IRDAI as the lead insurer for Odisha, aiming to increase insurance penetration in the state by deploying agents at Gram Panchayats.
