Shriram General Insurance sees surge in premiums
Shriram General Insurance sees surge in premiums | Insurance Business Asia
Motor & Fleet
Shriram General Insurance sees surge in premiums
Business plans outlined by head
Motor & Fleet
By
Roxanne Libatique
Shriram General Insurance Company (SGIC) has announced a significant 31% increase in its gross written premium (GWP) for the first quarter of fiscal year 2025 (Q1 FY25), reaching Rs 733 crore. This growth exceeds the industry average of 13%.
According to its latest financial report, SGIC issued 1,282,017 policies and achieved a net profit of Rs 114 crore, marking a 17% increase from Rs 98 crore in the same period last year. The company processed 48,290 claims in Q1 FY25, compared to 39,076 in the previous year.
The solvency ratio was 3.87 as of June 30, 2024, above the regulatory requirement of 1.5. Live policies grew to 6.285 million from 5.7 million a year ago.
SGIC’s segment-wise GWP (in Cr)
Particulars
For the Quarter ended on 30-Jun-2024
For the Quarter ended on 30-Jun-2023
Growth
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%
SGIC’s business line growth compared to industry
Line of Business
SGI
Industry
Motor
34 %
12 %
Non-Motor
10%
14%
Total
31%
13%
Commenting on SGIC’s performance, managing director and CEO Anil Aggarwal (pictured) 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.”
SGIC’s growth plans
Crop insurance
SGIC 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,” Aggarwal said.
Health insurance expansion
Last year, SGIC launched benefit-based health insurance products such as Hospital Daily Cash and Critical Illness Insurance. In Q1 FY25, the company sold over 5,000 policies in this line.
“Building on this momentum, we are preparing to introduce Arogya Sanjeevani, an indemnity-based product, to enhance our health insurance portfolio,” Aggarwal said.
MSME sector focus
With over 63 million MSMEs in India, less than 10% are currently insured. SGIC aims to address this gap by developing customised insurance solutions for this sector.
Lead insurer for Odisha
Appointed by the Insurance Regulatory and Development Authority of India (IRDAI), SGIC aims to increase insurance penetration in Odisha as part of the “Insurance for All by 2047” initiative.
The company plans to deploy agents at Gram Panchayats to achieve this goal.
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