Shriram Life posts 29% dip in H1 net profit on record volume, premium

Company reports assets under management of Rs 12,310 cr, expects number to be around Rs 13,500 by end of FY25

Shriram Life Insurance Company (SLIC) on Friday said it made a net profit of Rs 50 crore in the first half of financial year 2024-25 (H1 FY25), down 29 per cent from Rs 70 crore in the same period of FY24.

 

The unlisted insurer sold 283,000 individual policies in H1 FY25, up 96 per cent. The half-year numbers were the best ever in terms of volume and premium, said the company. SLIC's individual new business annual premium equivalent (APE) grew 57 per cent in H1 FY25. The private life insurance industry grew by 24 per cent.

 

The company’s renewal premiums reached Rs 715 crore, up 19 per cent from Rs 603 crore in H1 FY24. Retail new business premium income rose 57 per cent to Rs 542 crore, compared to Rs 344 in H1 FY25.

 

 

“Our primary focus has been on expanding in focus states. The feet-on-the-street model has enabled us to reach more customers directly,” said Casparus J H Kromhout, managing director and chief executive officer, SLIC.

 

“As we look ahead to H2, we are committed to continuing this expansion and reaching more customers across geographies. Our goal is to ensure that we provide accessible and relevant insurance options for everyone.”

 

SLIC had assets under management (AUM) of Rs 12,310 crore, up 21 per cent from Rs 10,146 crore on September 30, 2023. "We expect our AUM to be around Rs 13,500-14,000 crore by the end of this year," said Ajit Banerjee, president and chief investment officer, SLIC.

 

SLIC, which is Jointly promoted by Shriram Group and Sanlam Group of South Africa, sold 155,000 individual policies in the second quarter of FY25, up 22 per cent from Q1.

 

Retail new business premium growth from Q1 to Q2 was approximately 55.66 per cent, increasing from Rs 212 crore to Rs 330 crore. The insurer registered a PAT of Rs 23 crore in Q2FY25.

 

“Our ticket size for non-single individual premium policies is about Rs 18,000, as we are committed to catering to underserved segments. By offering affordable premiums, we ensure that life insurance remains accessible to those who need it most. Despite this, we have maintained profitability by focusing on sustainable growth and efficient operations,” said Kromhout.