Gross Premium of the insurer up 31% in Q1FY25
FinTech BizNews Service
Mumbai, August 6, 2024: Shriram General Insurance Company (SGIC) has announced that its Gross Written Premium (GWP) during Q1 FY25 has increased by 31% to Rs 733 crore, over the same period last year surpassing the industry growth of 13%. The company wrote 1282017 policies in Q1FY25 and earned a net profit of Rs. 114 crores during the first quarter of FY25, a growth of 17% from Rs 98 crores a year ago period. The company has settled 48290 claims during Q1 FY25, compared to 39076 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 Lakhs in Q1FY25 from 57 Lakhs in the same period a year ago.
Segment wise GWP (in Cr) till June 2024:
Particulars | For the Quarter ended on 30-Jun-2024 | For the Quarter ended on 30-Jun-2023 |
in FY25 | ||||
Motor | 663.86 | 496.72 | 34 % | ||||
Fire | 28.27 | 23.84 | 19% | ||||
Engineering | 5.96 | 4.35 | 37% | ||||
Others Miscellaneous | 35.00 | 34.68 | 0.92% | ||||
Total | 733.08 | 559.59 | 31% |
Business line growth as against industry during Q1 FY25:
Line of Business | SGI | Industry |
Motor | 34 % | 12 % |
Non-Motor | 10% | 14% |
Total | 31% | 13% |
Anil Aggarwal, MD & CEO, Shriram General Insurance Company said,
“Shriram General Insurance has achieved a notable overall growth of approximately 31% in Gross Written Premium (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.”
Future Plans
Crop Insurance
Shriram General Insurance is targeting a market with an estimated industry premium potential of INR 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” says Anil Aggarwal.
New foray:
Last year, SGI took a significant step by launching benefit-based health insurance products such as Hospital Daily Cash and Critical Illness Insurance. In Q1FY25, the insurer has sold more than 5000 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” says Anil Aggarwal.
Tapping MSME
India has over 63 million MSMEs, of which fewer than 10% are currently insured. MSMEs ought to realise the importance of insurance to sustain business during any unforeseen circumstances. With the aim of addressing this knowledge gap and recognizing the potential of this segment, SGI is developing customized insurance solutions tailored to the diverse needs of this sector.
As the lead insurer for Odisha:
The company has been appointed as the lead insurer by IRDAI to achieve the vision of “Insurance for All by 2047”. The objective for SGI is to increase the insurance penetration in Odisha – bringing every member of the community within the insurance safety net. The company is deploying its agents at the Gram Panchayats to accomplish this mission.
