Shriram General Insurance Q1 net up to Rs 114 crore

CHENNAI: Shriram General Insurance Company (SGIC) has announced that its Gross Written Premium (GWP) during Q1 FY25 has increased by 31 per cent to Rs 733 crore, over the same period last year surpassing the industry growth of 13 per cent.

The company wrote 12,82,017 policies in Q1FY25 and earned a net profit of Rs 114 crore during the first quarter of FY25, a growth of 17 per cent from Rs 98 crore a year ago period. The company has settled 48,290 claims during Q1 FY25, compared to 39,076 in the year ago period.

The solvency ratio was 3.87 as of 30 June 2024 against the regulatory requirement margin of 1.5. The number of live policies has gone up to 62.85 lakh in Q1FY25 from 57 lakh in the same period a year ago.

Anil Aggarwal, MD-CEO, SGIC, said, “Shriram General Insurance has achieved a notable overall growth of approximately 31 per cent in GWP. This growth has been significantly driven by our Motor Line of Business. In the recent quarter, SGI introduced several new products, including Shri Cyber Insurance. We are also planning to launch more innovative products in the upcoming quarter to further expand our offerings.”

Growth Strategy

Shriram General Insurance is targeting a market with an estimated industry premium potential of Rs 30,000 crore. “The strategy for is centred on efficiency and innovation, aiming to increase our non-motor premiums and achieve a more balanced business mix” said Aggarwal.

Last year, SGIC launched benefit-based health insurance products such as hospital daily cash and critical illness Insurance. In Q1FY25, the insurer has sold over 5,000 policies under Health Insurance Line of Business. “Building on this momentum, we are preparing to introduce Arogya Sanjeevani, an indemnity-based product, to enhance our health insurance portfolio,” said Aggarwal.

SGIC, jointly owned by Shriram Group and Sanlam, Africa, offers a range of general insurance products, such as motor, home and personal accidents.

HIGHLIGHTS

GWP during Q1 FY25 was Rs 733 cr, 31% growth YoY

Net profit up to Rs 114 cr in Q1 FY25, 17% growth from year ago period

AUM stands at Rs 12,268 cr as on 30 June 2024, 8.74% growth from

Rs 11,282 cr same period a year ago

Has over 62 lakh live policies

Solvency ratio stands at 3.87 as of 30 June 2024, highest in the country

Motor business grows by 34% and non-motor by 10% in Q1FY25

No of live policies has risen to 62.85 lakh in Q1FY25

from 57 lakh in Q1FY24

SGIC has 278 branches across 26 states