Shriram Life Posts 62% Surge In New Business Premium FY24

Shriram Life Insurance Company reported earnings for the year ending 31 March 2024 (FY24), with total new business premiums growing by 62 per cent at Rs 1,871 crore compared to Rs 1,152 crore last fiscal. 

Individual new business premiums grew 39 per cent to close the year at Rs 938 crore from Rs 675 crore in FY23.

In the fourth quarter from January to March 2024 (Q4 FY24), the company posted a total new business income of Rs 596 crore, up 50 per cent from Rs 397 crore year-on-year (YoY). The total premium for Q4 FY24 stood at Rs 1,205 crore as against Rs 912 crore in Q4 FY23.

The number of policies also increased 2 times 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 per cent in FY24, making Shriram Life one of the fastest-growing life insurers in the country.

In FY24, group premium income rose 95 per cent 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 per cent 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 per cent increase from Rs 9,012 crore in the year-ago period.

Casparus J H Kromhout, managing director (MD) and chief executive officer (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 per cent for individual policies while its solvency ratio stood at 2.06 per cent.

The company ensures prompt claims settlement for customers with 93 per cent 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.