Shriram Life Posts Excellent Results For 2011-12
Shriram Life Insurance Company Limited, a joint venture of the financial services major, Shriram group and Sanlam of South Africa, has announced its annual results for the financial year ended 31st March, 2012. During the 6th full year of commercial
Online, June 16, 2012 (Newswire.com) - Shriram Life Insurance Company Limited, a joint venture of the financial services major, Shriram group and Sanlam of South Africa, has announced its annual results for the financial year ended 31st March, 2012. During the 6th full year of commercial operations Shriram Life has declared a pre-tax profit of Rs.67 crores and PAT of Rs.56 crores. During this period Shriram life has collected a gross premium of Rs.644 crores on 1.3 Lakh policies, covering almost 1.2 lakh lives under individual life policies and another 9.5 lakh lives under group policies.
Commenting on the results, Mrs. Akhila Srinivasan, Managing Director, Shriram Life Insurance Company Limited, said that the company has posted excellent results despite a challenging environment. She said that the company's focus is on the lower and middle affluent segment, in alignment with the Shriram Group philosophy; and to take life insurance to those sections where it is needed most. In line with this philosophy, the individual life policies sold in rural areas stood at 43% (up from 38% during the previous year). The number of lives covered in the socially weaker segment was 1.37 lakh lives. The products designed by the company and the services offered to the customers are aligned with this basic philosophy. The net benefits paid during the period stood at Rs.426 crores.
Shriram Life Insurance, like other companies in the Shriram group, is always sensitive about being cost effective in handling business. The operating expenses in the year 2011-12 stood at 130 crores. Despite a challenging business environment, the operational expenses of the company are within the laid down limits; and the company registered an impressive growth in profits. Mrs. Akhila Srinivasan added, "During the current year the company aims to achieve a premium income of Rs.1000 crores; despite market volatility, tough business conditions and competitive pressures the company is confident of achieving this". The solvency of the company is a very comfortable 5 times - the regulatory minimum is 1.5 times - and is among the best in the industry.
Shriram Life is now offering 4 products on ULIP platform and 10 Traditional products. The latest from the company, 'Shriram Money Back Term Plan' is one such product that aims to address the insurance needs of the middle class community in the country. The company also offers five group products that are customized to meet different needs of the customers.
A lot of emphasis is being given to customer education and customer service. The South African partner in the joint venture, Sanlam which is a 94 year old company and the second largest Life Insurance Company in South Africa, has taken the responsibility of taking customer service standards to the highest level through professionally managed customer care and call center teams. The company is also focusing on under insured customers and educating them on the significance of being adequately covered.