SHRIRAM LIFE INSURANCE PROFIT AFTER TAX JUMPS 43% IN Q3FY24

Steered by robust sales and new partnerships, Shriram Life Insurance Company Ltd. on Friday announced that it earned a profit after tax (PAT) of Rs 50 crore in its October to December 2023 quarter, a 43% rise over its second quarter this fiscal. 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. Shriram Life reported a PAT of Rs 31 crore for Q3FY23.

The insurer reported individual new business premium income of Rs 237 crore for its third quarter, elevating 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.

Casparus J Kromhout, MD & CEO, Shriram Life Insurance said, “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 practises.”

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 1,27,115 policies, a 45% 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% 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%, with non-investigated claims being settled within 12 hours from the time of full document submission. 

Customers can use Shriram Life’s chatbot ShriA and apply for the Shriram Smart Suraksha Card to access policy bond and renew premiums in a short time. Shriram Life also offers first time customers e-KYC facial recognition and allows agents to use Astra app for seamless customer onboarding.

All figures in Rs Crores