Shriram General Insurance, which derives more than 90 percent of its income from auto segment premiums, plans to wean itself off this heavy reliance by moving aggressively to rural areas from where it envisions an income of at least 16 percent. by fiscal year 2024-25.
The Shriram Group expects a profit of around Rs 750 crore for this fiscal year, up from Rs 700 crore last year, as it expects the gross income from written premiums to reach 2,200 to 2,300 Rs crores this year.
He has set himself the goal of increasing the assets under his management to Rs 15,000 crore by fiscal year 25, against Rs 10,000 crore now.
Shriram General Insurance is the seventh largest private sector general insurer in the automotive segment which recovers over 90 percent of its assets under management at present and even for the general insurance industry, the automobile is bread and butter.
“We are targeting a gross written premium of Rs 550 crore or 16% of total rural market premium income by FY 25. Rural sales were only Rs 90 crore in FY 21 and are expected to to earn Rs 175 crore this fiscal year, “Anil Aggarwal, chief executive and managing director of Shriram General Insurance told PTI.
The company expects rural expansion in talukas, where insurance penetration is minimal, driving its overall growth strategy by fiscal year 25 and as part of this it will recruit at least 1,500 employees to make its products available in 25,000 outlets over the next three years, Aggarwal said.
As part of the rural push, he plans to target 600 talukas in the next year when the population is below 1 lakh and hopes to sell policies with a relatively low sum insured, he said.
For distribution, it plans to use state government electronic kiosks in addition to employing contractors, life insurance agents, common service centers, bank branches and other informal methods, did he declare.
Chennai-based Shriram Group closed the first half of the year with around Rs 800 crore in premium income and expects it to almost triple in the second half thanks to the better-than-expected economic recovery, Aggarwal said.
He said Shriram General was the first private sector general insurer to only write auto premiums when it started 13 years ago.
Shriram General is a joint venture between Shriram Capital, the holding company of the Shriram group, and the South African financial services group Sanlam and was established in 2009. It is today the seventh largest private sector auto insurer.
In the first half of the year, over 43 percent of total auto blanket sales, down sharply from 80 percent a few years ago, came from group company Shriram Transport Finance, the world’s largest independent truck financier. from the country. It manages over 40 lakhs of outstanding policies through 200 branches in 24 states.
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