Shriram Life Insurance posted a profit after tax (PAT) at Rs 156 crore in FY-23 on the back of growth in individual non-single premiums. A year ago, the company reported Rs 3 crore PAT in the financial year 2021-22 due to the impact of pandemic.
A statement by the company said, for the year-ended March 2023, it posted a retail Annualized Premium Equivalent (APE) growth 24% YoY, underscoring faster growth than the total industry for Individual New Business APE. For the period April 2022 to February 2023, while private industry grew 19% on Retail APE, Shriram Life showed stable growth at 22%. Even as private industry experienced an additional boom in March owing to the Budget announcement on taxation of higher premiums, Shriram Life continued to report steady growth at 31% (for March 2023).
APE is the sum of annualized first year regular premiums and 10% weighted single premiums and single premium top-ups.
The company, promoted by Shriram Group and South Africa's Sanlam Group, sold 2,90,156 policies in FY23, . Including group business, provided life cover to over 5.3 million new lives during the year. Shriram Life sources 45% of its retail business from the rural sector.
The company saw a 9% increase in renewal premium to Rs 1,394 crore alongside a 17% rise in asset under management (AUM) at Rs 9,012 crore. In FY-22, the AUM stood at Rs 7,683 crore.
Claims settlement for individual policies was at 97.4%, with over 91% of its non-investigated claims (claims arising after three years of policy inception) settled through the rapid claims settlement process that includes claim settlement within 12 hours, the statement added.
Approximately 48% of Shriram Life's retail claims were from the rural segment.
Casparus J Kromhout, Managing Director and CEO, Shriram Life said, “Our growth has advanced thanks to the adoption of technology and innovation, enabling more rural policy holders to complete their paperless statement. We've strengthened our digital capabilities with a focused approach to solve customer needs and, at the same time, maintain engagement with our customers,”
“We saw the regulator introduce critical reforms that had a positive impact on the industry. The industry is at a stage with high potential to grow due to diverse market demographics, increasing awareness and technological advancements. Shriram Life looks forward to continuing the growth momentum in the coming years and continue its purpose to provide life insurance protection to more families in the rural segment,” he added.
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