Shriram Life Insurance Company Ltd on Friday announced a net profit of Rs 50 crore in the third quarter (Q3FY24), up 61 per cent compared to Rs 31 crore during Q3FY23.
The company’s premium from group business up to Q3FY24 more than doubled to Rs 693 crore from Rs 324 crore in the year-ago period. The insurer reported individual new business premium income of Rs 237 crore for its third quarter, raising its total premium income to Rs 842 crore in Q3FY24. Buoyed by diversification in sales and new corporate partnerships, Shriram Life Insurance has entered newer markets in northern, western, and north-eastern India.
“Our quarterly results reiterate our commitment to rural families by enabling them with comprehensive life cover that also doubles up as an investment solution. At Shriram Life, we focus on delivering our financial products as per the needs of the customer so that no family in the rural segment is left behind. We also walk the extra mile to make service delivery a seamless exercise, no matter where our policyholders reside. Our efforts towards claim settlement also echo the same commitment. We are dedicated to bolstering customer care services in vernacular languages and across platforms so that we are at the top of industry best practices,” said Casparus J Kromhout, managing director and chief executive officer, Shriram Life Insurance.
Promoted by Shriram Group and Africa’s Sanlam Group, Shriram Life serves the rural and middle-income segment where its customers are mostly first-time insurance buyers. In Q3FY24 alone, the company wrote 127,115 policies, a 45 per cent increase over last quarter and settled 12,330 claims in both individual and group policies. The company’s solvency ratio stands at 1.95.
Shriram Life Insurance’s renewal premiums for both individual and group policies stood at Rs 427 crore compared to Rs 374 crore last quarter. It sources 44 per cent of its business from the rural segment with an average ticket size of around Rs 20,000. The company is looking to grow aggressively through its extensive sales networks going forward. Additionally, Shriram Life Insurance has been appointed as lead life insurer for Telangana by IRDAI. The company has started several campaigns in Telangana with partner companies on spreading life insurance awareness and the importance of bringing families into the safety net of insurance.
In FY23, the company reported profits worth Rs 156 crore, a steep rise from Rs 3 crore in FY22. Its claims settlement ratio for FY23 was at 97.4 per cent, with non-investigated claims being settled within 12 hours from the time of full document submission.
First Published: Feb 09 2024 | 12:25 PM IST