Shriram General Insurance Q1FY24 Net Profit Rises 37% on Digital Sales, Better Product Mix

Shriram General InsuranceChennai, August 2023: Shriram General Insurance Company (SGIC) on Tuesday said it wrote 13,03,340 policies driven by higher digital selling of traditional and new combo products. The company earned a net profit of Rs 98 crore during the first quarter of FY24, a 37% increase YoY.

The insurer, jointly owned by Shriram Group and Africa’s Sanlam Group, said that 82% of all its policies now come from online purchases and the company introduced three new products during the quarter. Its Gross Written Premium (GWP) stood at Rs 560 crore, a rise of 39% over the same period last year.

The company’s solvency at the end of June 2023 was 4.83, from 4.48 a year ago. The statutory solvency requirement is 1.5.

Segment-wise GWP as of Q1 FY24

  • Motor: Rs 496.72 Cr (Rs 369.05 Cr in Q1FY23)
  • Personal Accident: Rs 28.09 Cr (Rs 5.78 Cr in Q1FY23)
  • Fire: Rs 23.84 Cr (Rs 17.69 Cr in Q1FY23)
  • Engineering: Rs 4.35 Cr (Rs 3.44 Cr in Q1FY23)

The company has settled 39,076 claims in Q1 FY24, compared to 33,811 in the year-ago period.

Anil Aggarwal, MD & CEO, of Shriram General Insurance Company said, “Our phygital approach is the main driver during the quarter. While we remain focussed on existing business streams, we believe newer areas like EV insurance and developing a stream of combo insurance plans will help the market and drive growth for us. Additionally, we are looking at expanding into the non-motor segment for SMEs.”

The company has a workforce strength of 3,716 and 243 branches across the country. The insurer plans to increase its workforce by an additional 750 and branch numbers by 20% in the current year.