Shriram General Insurance, which manages an AUM of Rs 10,500 crore which is expected to cross Rs 50,000 crore in the next five years, is a joint venture between? Shriram Capital, the holding company of the group, and the South African financial services group Sanlam, and was established in 2009.
Today it is the seventh largest motor insurance company in the private sector.
During the first half, over 43 per cent of total motor cover sales, down from 80 per cent a few years ago, came from conglomerate firm Shriram Transport Finance, the largest standalone truck financier in the country.
It has made losses only three times since it began operations in 2009, making it the third largest general insurer in terms of profitability.
It reported a net income of Rs 1,000 crore on premium income of Rs 2,466 crore and Rs 770 crore on premium income of Rs 1,100 crore in FY 2010, of which about 92 per cent came from the motor vertical, and Agarwal said, Rest from all other verticals, Agarwal, who has been leading the company since inception, said that he wants to reduce motor dependence by around 70 per cent and expects the upcoming rural thrust to help achieve this. , Agarwal said.
“Our focus has always been on profitable growth. One can do aggressive underwriting and forget the profits. Our premium income has crossed Rs 800 crore in the first half, which we are looking to close with Rs 2,200-2,300 crore. And expect to earn around Rs 750 crore in net income by March,” Agarwal told PTI.
Agarwal said the company’s AUM at the end of September was Rs 10,500 crore and he expects it to cross the Rs 50,000 crore mark in the next five years.
He expects higher targeted earnings and returns from its rural thrust, which plans to get a quarter of its sales earnings from rural markets by FY25, which is less than 10 per cent now.
This will enable them to employ a sales force of 1 lakh rural people in the next three years out of the current 35,000.
Its rural sales currently account for only 10 per cent of the total, but Agarwal expects it to grow from 24 to 15 per cent in FY20 and over 25 to 25 per cent in FY20.
He added that for aggressive rural play, they will have more rural-focused products that will be available at 25,000 electronically operated points of sale over the next three years. The general insurance firm currently employs 2,800 of whom 1,500 are sales agents.
In the first year, they plan to target 600 talukas. The next target would be to reach areas with a population of 20,000 to 1 lakh, he said, adding the distribution would be through electronic kiosks.
Although primarily a motor insurer that too commercial vehicles Since no one was writing motor policies – it was the only insurer to underwrite motor policies, Shriram also offers travel, home and personal accident cover in the general retail space and customized fire, engineering, marine products in the corporate space.
It serves over 40 lakh outstanding policies through 200 branches in 24 states.