Shriram Life insurance posts Rs 35 crore net profit in first quarter

Despite a slight drop in profits, the company sees an 82% surge in total premium earned compared to the previous year

Shriram Life Insurance announced on Thursday that it had registered a profit after tax (PAT) of Rs 35.4 crore in the first quarter of 2023-24. This figure represents an 11 per cent decrease compared to the same period in the previous financial year, during which it posted Rs 39.6 crore.

However, the company saw its total premium earned skyrocket by 82 per cent, bringing in Rs 717 crore compared to the previous year's Q1 earnings of Rs 394 crore. Jointly promoted by Shriram Group and Africa's Sanlam Group, Shriram Life Insurance reported assets under management (AUM) for Q1FY24 at Rs 9,688 crore, a 23 per cent growth from Rs 7,866 crore in Q1FY23. During the first quarter, the insurer sold 56,493 policies.

The company's new business premium – encompassing both individual and group policies – stood at Rs 488 crore, up from Rs 207 crore in the same period last year. Group premiums for new business increased to Rs 354 crore from Rs 93 crore in the previous fiscal year. The company reported an 18 per cent growth in individual business, which outpaced the industry growth rate of 8 per cent. The company cited increasing new individual business as a key focus for the current financial year, projecting growth of 20-25 per cent in this segment.

"We are committed to reaching more customers and tapping into new markets to boost insurance penetration in the rural and middle-income segment," stated Casparus J Kromhout, Managing Director and Chief Executive Officer, Shriram Life Insurance. "Our goal is to ensure that our customers receive the right solutions to meet their objectives. We are striving to be solution partners rather than encouraging customers to buy insurance policies impulsively."

Marking Shriram Group's 50th year of operations, the company launched the Golden Jubilee Plan this financial year. This plan offers policyholders the flexibility to cover their entire lives or a specific period, enabling them to achieve their goals. Last year, the company introduced two plans – the Early Cash Plan and the Premier Assured Benefit.

For the fiscal year ending in March, Shriram Life Insurance posted strong earnings of Rs 156 crore and reported a 24 per cent YoY increase in retail annualised premium equivalent (APE). The company aims to make life insurance accessible to the average person, with approximately 45 per cent of its policies sold in rural areas.

In the last fiscal year, the company's claims settlement ratio was 97.4 per cent. Over 91 per cent of its non-investigated claims (claims arising after three years of policy inception) were settled through the Rapid Claims Settlement process, guaranteeing settlement within 12 hours of receiving the final document. Approximately 46 per cent of Shriram Life's retail claims in the last fiscal year originated from rural areas.

Shriram Life makes extensive use of technology to connect with customers and deliver end-to-end services to those residing in rural areas. Its agents' app, Astra, chatbot ShriA, and the Shriram Smart Suraksha Card all contribute to seamless premium renewal, policy bond access, and policy purchasing. Furthermore, Shriram Life deploys facial recognition technology for e-KYC authentication, which minimises paperwork during customer onboarding. Its Smart Suraksha Card, a pocket-friendly card, provides instant access to policy bonds through a QR code.