Shriram Life plans three-fold rise in AUM by 2030, bets on rural India

Insurance company's managing director says company expanding in rural India faster than its private competitors

Shriram Life Insurance Company plans a three-fold rise in assets under management (AUM) by 2030, growing from Rs 13,000 crore by focusing on rural India and using technology, said the top executive of the insurer.

 

The company, which is promoted by Chennai-based Shriram Group and Africa’s Sanlam Group, in Financial Year 2024-25 (FY25) grew faster in rural India than the private industry in terms of adding subscribers.

 

The company’s retail new business was seen at Rs 865 crore in April-December 2024, growing 49 per cent over the same period in the previous year. The company’s Individual New Business APE, a focus area, grew 49 per cent – faster than private industry (19 per cent). Shriram Life’s total premium for April-December 2024 stood at Rs 2,782 crore, growing 21 per cent from the year before. The company expects its AUM to cross Rs 15,000 crore in FY26.

 

 

“We expect to grow three-fold rise in our AUM by 2030, if we continue with the present growth of 20 per cent CAGR (compound annual growth rate) in the next five years,” said Casparus J H Kromhout, managing director and chief executive officer, Shriram Life Insurance.

 

“This year, we are able to reach more families through our rise in rural sales, which was up by 43 per cent, versus a degrowing industry. We are also witnessing good growth in group insurance. We serve (those) mostly underserved by the industry; (people) who are in the lower-middle bracket, and as a result our average premium is around Rs 20,000, much less than the industry,” he said in an interview.

 

According to Kromhout, the company is focusing on 15 states to achieve its targets for 2030. “We want to grow in states where we are having a lower presence, like Maharashtra, Karnataka, Gujarat and even Tamil Nadu,” he said.

 

Sequentially, the company’s premium from group insurance in the third quarter of FY25 more than doubled from Q2: From Rs 174 crore to Rs 336 crore. The insurer reported individual new business premium income of Rs 322 crore for the third quarter. Renewal premiums for individual and group policies stood at Rs 494 crore, compared to Rs 447 crore in the second quarter. Total premium increased by 21 per cent: Rs 1,151 crore in Q3 FY25 and Rs 952 crore in Q2.

 

New individual business premium grew 36 per cent to Rs 322 crore in Q3 FY25, from Rs 237 crore in Q3 FY24. New Individual Business APE (Annual Premium Equivalent) rose 36 per cent to Rs 301 crore in Q3 FY25, from Rs 221 crore in Q3 FY24.

 

“Our quarterly results show our commitment to reaching and securing more customers, which also reflects the need for affordable life insurance solutions among various segments of the society. This success highlights effectiveness of our approach to providing accessible, comprehensive solutions, ensuring more families, especially in rural areas, have financial security,” he said.

 

“At Shriram Life, we remain dedicated to meet the unique needs of the customers, ensuring that no family in the rural segment is left behind. We go above and beyond to ensure seamless service delivery, no matter where our policyholders live.”

 

The company’s claim settlement ratio for FY24 was at 98 per cent, with non-investigated claims being settled within 12 hours from the time of full document submission. (The ratio is a measure of claims an insurance company settles in a year compared to the total number of claims received.)