Shriram Life Insurance, the life insurance arm of Shriram Group announced its results for the first quarter ended June 30, 2015.
Highlights for FY16-Q1 ended 30th June, 2015:
|New Business Premium||115||76||52|
|Profit Before Tax-RA||13||7|
|Profit Before Tax ndash;PL||7||7|
|Total Profit Before Tax||20||14||54|
|Profit After Tax-RA||11||6|
|Profit After Tax ndash;PL||6||6|
|Total Profit After Tax||17||12||42|
|Policy Count (in Thousands)||55||24||129|
Growth driven by strong retail distribution network, witnessed a steady 129% growth in Number of policies at 55,000 sold as on June 30, 2015, compared to 24,000 as on June 30, 2014. On Policy Count for Q1, Shriram Life is among the top 6 Private Life Insurers in the country.
Mr. Manoj Jain, CEO and Whole time director at SLIC, said, This exponential increment in Policy count is attributable to expansion made in last couple of years; where we added more than 200 branches in Tier III and Tier IV cities of the country. These expansion efforts are in line with Shriram group philosophy of Inclusive growth. SLIC shall continue taking life insurance to the section where it is needed the most ndash; the AAM AADMI.
SLIC reported a healthy profit after tax (PAT) which grew by 42% y-o-y % at INR 17 Cr as on June 30, 2015 as compared to INR 12 Cr as on June 30, 2014.
A sturdy growth in financial parameters was observed. Though, the average ticket size was recorded at INR 13,000 in contrast to industry at Rs 35,000. This reflects company focus on penetrating into rural and semi-urban segment of society.
Performance Details for the first quarter ended June 30, 2015:
- Profit before tax increased by 54% to INR 20 Cr for the quarter ended June 30, 2015 as against INR 14 Cr in the corresponding quarter of the previous year.
- New Business Premium grew 52% to INR 115 Cr for the quarter ended June 30, 2015 as against INR 76 Cr in the corresponding quarter of the previous year.
- Accumulated Profit at INR 312 Cr, against INR 245 Cr in the corresponding quarter of the previous year;
- Growth of Individual business revenue by 38%. However, overall industry witnessed de-growth of 8% in individual business revenue.
- An Annual Premium Equivalent (APE) of Rs 69 crores as compared to Rs 28 crores last year where as the industry has de-growth of 2% Y-o-Y. Recurring premium was a major contributor to this increase.
Commenting on results, Mrs. Akhila Srinivasan, Managing Director at SLIC said, An exponential growth in recurring premium at INR 77 crores for the quarter ended June 30, 2015 against INR 26 Cr in the corresponding quarter of the previous year, showcases SLIC customer centricity to promote plans with flexible payment options.
Last quarter, SLIC won the prestigious MMA award for Management Excellence in Services Sector. SLIC also bagged Indian Insurance Award for Best Insurance Company for Non-Urban Coverage – Life Insurance. These awards are a testimony to Shriram Life quality and commitment towards customer centricity and professional excellence.
About Shriram Life Insurance:
Shriram Life Insurance Co. Ltd. (SLIC) commenced its operations in 2006, and the Company has already insured more than 1 Crore lives. The cumulative new business premium crossed INR 3600 Crores. We have been able to achieve these landmarks at modest operating expenses in the process, as we are one of the few profit making private life insurance companies. In fact, Shriram Life Insurance is the only private life insurer to have made profits in the very first year of operations and for the first three consecutive years of operations. SLIC has also declared bonus for policy holders in line with IRDA guidelines without additional infusion of capital. Shriram Life Insurance offers a bouquet of products in both the individual and group lines which include Traditional Plans, ULIPs, Single and Regular Premium Products, Group Term Plan, Group Gratuity, EDLI and Micro Insurance plans. Shriram forte has been lending / supporting to SME segment and has played a catalytic role in the overall development of society. SLIC hopes to take this forward through group plans aimed at SME segment.