 "Shriram General Insurance plans to re-enter crop insurance business")
Shriram General Insurance Company Ltd announced plans to re-enter the crop insurance portfolio as part of its diversification strategy.
Shriram General Insurance, jointly owned by the diversified Shriram Group and Africa-based Sanlam Ltd, offers a range of general insurance products.
In a statement on Tuesday, the company reported its financial performance for the July-September 2024 quarter, stating it achieved a 15 per cent year-on-year increase in Gross Written Premium (GWP), rising to Rs 861 crore from Rs 750 crore in the same quarter of the previous financial year.
The company plans to add 20,000 financial agents during the current financial year, bringing the total to 90,000.
For the six-month period ending September 30, 2024, the Gross Written Premium grew to Rs 1,594 crore, up from Rs 1,310 crore in the same period last year.
Net profit for the six-month period ending September 30, 2024, increased to Rs 254 crore, compared to Rs 217 crore in the same period the previous year.
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The total assets under management (AUM) rose to Rs 12,627 crore, an 8.75 per cent increase from Rs 11,610 crore during the same period last year.
To strengthen its advisor network, the company plans to recruit an additional 20,000 financial agents, increasing the total number from 79,832 by the end of this financial year.
Shriram General Insurance aims to reduce the contribution of its motor insurance business to 85 per cent from 92 per cent and increase the contribution from non-motor business to 15 per cent from the current 8 per cent.
"In a move to diversify its portfolio, the company plans to re-enter the crop insurance market and introduce new health insurance products," it stated.
"Our robust GWP growth underscores our dedication to customer-centric solutions, particularly in the motor segment. As we strategically expand into health and MSME (micro, small, and medium enterprises) insurance, we are committed to leveraging innovation and operational efficiency to enhance our offerings," managing director and CEO Anil Aggarwal said.
As of September 30, 2024, Shriram General Insurance operates 278 branches across the country. The employee base increased to 4,049 from 3,837 last year, the company noted.