Shriram General Insurance Company (SGI), the general insurance arm of financial services conglomerate Shriram Group, is targeting a listing in two to three years, a senior company executive told Business Standard on Tuesday.
SGI plans to strengthen its advisor network by adding 20,000 financial agents, raising the total from 79,832 to 90,000 by the end of this fiscal. The company has set an ambitious goal to grow this network to 200,000 agents by 2030, the company’s managing director and chief executive officer Anil Aggarwal told Business Standard.
The company reported a 17 per cent rise in net profit during the second quarter of the current financial year to Rs 254 crore, compared to Rs 217 crore during the July to September quarter of 2023-24. SGI reported a 15 per cent year-on-year increase in Gross Written Premium (GWP) for Q2 FY25, reaching Rs 861 crore, up from Rs 750 crore in the same quarter last year. For the first half of the financial year, GWP grew by 22 per cent, rising from Rs 1,310 crore to Rs 1,594 crore, significantly outperforming the general insurance industry’s growth rate of 7 per cent.
Currently, 92 per cent of SGI’s GWP is derived from the motor insurance segment, with the remaining 8 per cent coming from non-motor lines such as fire, engineering, and other insurance products. To diversify its portfolio, the company plans to re-enter the crop insurance market and introduce new health insurance products. SGI aims to reduce its reliance on motor insurance by lowering its share from 92 per cent to 85 per cent and increasing the contribution from non-motor segments from 8 per cent to 15 per cent by 2030.
The company issued 2,732,906 policies during the first half of FY25. Shriram General Insurance settled 102,449 claims in HY1 FY25, a significant increase from 86,708 claims in the year-ago period. The company’s solvency ratio stands strong at 3.93 as of September 30, 2024, well above the regulatory requirement of 1.50. The number of live policies grew to 62.83 lakh in HY1 FY25, up from 60.19 lakh in the same period last year.
"Our robust GWP growth underscores our dedication to customer-centric solutions, particularly in the motor segment. As we strategically expand into health and MSME insurance, we are committed to leveraging innovation and operational efficiency to enhance our offerings and achieve sustainable growth," Aggarwal added.
“Our financial advisors are the backbone of our operations, acting as ambassadors to drive insurance awareness across both urban and rural India. Through large-scale recruitment, we are expanding our presence in underserved markets, ensuring that insurance products reach the last mile of the population," he added.