Shriram Life aiming at threefold growth in annual premium equivalent by FY30

Shriram Life Insurance aims for 3x growth in premium by 2030, focusing on market share and quick claim settlements.

Shriram Life Insurance Co Ltd., (SLIC) is aiming at a threefold increase in annual premium equivalent (APE) as part of its Vision 2030, said MD and CEO Casparus J.H. Kromhout.

“We ended FY24 with over ₹900 crore of individual APE and are aiming for about 3x of that by FY30,” Mr. Kromhout told The Hindu.

“We have a long way to go to achieve the vision. It requires us to do about 25% compound annual growth rate on FY22 data. Can we get to a 25%? Doing 25% year-on-year for seven years, seems tough as the base keeps growing,” he said.

In FY23, Shriram Life posted a 24% growth, which was just below its target. In FY24, it did 40% in terms of run rate and slightly ahead of the curve. In the first half of FY25, the company posted 50% growth and 131% rise in individual policy sales mostly driven by rural and urban population, he said.

Explaining further, he said: “We were hoping to end FY25 close to 50%, but now there’s a lot of uncertainty surrounding the special surrender value regulation, which comes into force from October 1. I think 30% will be possible, but we’ll have to now wait and see.”

He also said that the company’s market share in individual new business premium in the private industry was still low. Shriram Life has presence in 15 States. Andhra Pradesh has a market share of 5.2%, followed by Telangana 3.6%.

“It is less than 1% in Maharashtra, Karnataka and Gujarat. Our next goal is to reach 1% market share in these three States in a year or two and take it to 2%,” he said.