Shriram General Insurance Company (SGIC) has reported a 31% increase in its Gross Written Premium (GWP) during Q1 FY25, reaching Rs 733 crore, outpacing the industry growth of 13%. The company achieved a net profit of Rs 114 crore in the first quarter, marking a 17% increase from Rs 98 crore in the same period last year.
As of June 30, 2024, SGIC’s Assets Under Management (AUM) stood at Rs 12,268 crore, reflecting an 8.74% growth from Rs 11,282 crore a year ago. The company’s solvency ratio reached an impressive 3.87, the highest in the country, compared to the regulatory requirement of 1.5. The number of live policies increased from 57 lakh in Q1 FY24 to 62.85 lakh in Q1 FY25.
Segment-Wise GWP Growth
Motor Insurance: Rs 663.86 crore, a 34% increase from Rs 496.72 crore
Fire Insurance: Rs 28.27 crore, a 19% increase from Rs 23.84 crore
Engineering Insurance: Rs 5.96 crore, a 37% increase from Rs 4.35 crore
Miscellaneous Insurance: Rs 35 crore, a 0.92% increase from Rs 34.68 crore
Overall, SGIC’s total GWP for Q1 FY25 was Rs 733.08 crore, compared to Rs 559.59 crore in Q1 FY24, marking a 31% growth.
Industry Comparison
Motor Insurance: SGI growth at 34% vs. industry growth at 12%
Non-Motor Insurance: SGI growth at 10% vs. industry growth at 14%
Total GWP: SGI growth at 31% vs. industry growth at 13%
Anil Aggarwal, MD & CEO of Shriram General Insurance, expressed pride in the company’s performance. “Shriram General Insurance has achieved notable overall growth of approximately 31% in GWP, significantly driven by our Motor Line of Business. In the recent quarter, SGI introduced several new products, including Shri Cyber Insurance, and we plan to launch more innovative products in the upcoming quarter.”
Future Plans
Crop Insurance: Targeting a market with an estimated industry premium potential of INR 30,000 crore, SGIC aims to enhance efficiency and innovation to increase non-motor premiums and achieve a balanced business mix.
Health Insurance: Following the successful launch of benefit-based health insurance products, SGIC sold over 5000 policies in Q1 FY25. The company plans to introduce Arogya Sanjeevani, an indemnity-based product, to further expand its health insurance portfolio.
MSME Insurance: Recognizing the potential of the MSME segment, SGIC is developing customized insurance solutions to cater to the diverse needs of India’s over 63 million MSMEs, less than 10% of which are currently insured.
Odisha Initiative: Appointed by IRDAI as the lead insurer to achieve “Insurance for All by 2047,” SGIC aims to increase insurance penetration in Odisha by deploying agents at Gram Panchayats to bring the community under the insurance safety net.
Shriram General Insurance’s Q1 performance sets a promising tone for the future, showcasing robust growth and strategic expansions across various insurance segments.
