SHRIRAM LIFE INSURANCE COMPANY LIMITED UNLISTED SHARE
ABOUT SHRIRAM LIFE INSURANCE COMPANY LIMITED
SHRIRAM LIFE INSURANCE COMPANY LIMITED is a subsidiary company of Shriram Group. Shriram Group was established in 1974. It is one of the leading corporate houses in India and is major player in Indian financial services sector. Shriram group focuses more on common people rather than on institutional clients. Shriram group consist a diversified portfolio of financial services including Commercial Vehicle Financing, Retail Financing, Enterprise Financing to small business, Housing Finance, Equipment Financing, Life Insurance, General Insurance, Retail Stock Broking, Distribution of Financial Products and Wealth Advisory Services. In 2005, Shriram Life Insurance Company Limited was established. It offers wide range of insurances distributed in 3 main segments, Online Plans, Individual Plans and Group Plans.
Shriram Life Insurance Company Limited has entered into partnership with “Sanlam”, a leading financial services group and one of the largest insurers in South Africa, in life and non-life insurance ventures.
Shriram Life Insurance Company Limited has shown strong growth pattern and track records, which have attracted a large number of private equity funds and partners.
Shriram Life Insurance Limited has a network of 529 branches and advisor force of 4436 people.
INCORPORATION DETAILS
CIN | U66010TG2005PLC045616 |
Registration Date | 15 March 2005 |
Category / Sub-Category of the Company | Company Limited by Shares |
Address of the Registered office and contact details | Plot No 31 & 32, 5th Floor, Ramky Selenium, Beside Andhra Bank Training Centre, Financial District, Gachibowli, Hyderabad-500032. Phone: +91 40 23009400 |
Name, Address and Contact details of Registrar and Transfer Agent, if any | Integrated Enterprises (India) Limited 5A ,5th floor,Kences Towers,1 Ramakrishna Street, North Usman Road,T.Nagar, Chennai-600017 Phone:044-28140645 |
PARTICULARS OF SUBSIDIARY AND ASSOCIATECOMPANIES
SHRIRAM LIFE INSURANCE COMPANY LIMITED does not have any subsidiary or associate company.
BOARD OF DIRECTORS
Mr. T S Krishnamurthy (Chairman)
Mr. Casparus Jacobus Hendrik Kromhout (Managing Director & CEO)
Mrs. Akhila Srinivasan (Managing Director)
Mr. Manoj Kumar Jain (Managing Director)
Mr. S Lakshminarayanan (Director)
Mr. Stephanus Philipus Mostert (Director)
Mr. Gaurav Trehan (Director)
Mr. R S Krishnan (Director)
Mr. Duruvasan Ramachandra (Director)
Mr. Daniel Hermanus Gryffenberg (Director)
Mr. Umesh Govind Revanker (Director)
PRINCIPAL BUSINESS ACTIVITES OF THE COMPANY
Name and Description of main products/services | NIC Code of the product/service | % to total turnover of the Company |
Insurance (Life) | 6511 | 100% |
SHRIRAM LIFE INSURANCE COMPANY LIMITED UNLISTED SHARE DETAILS
Total Available Shares: | 17,93,75,000 |
Face Value: | Rs. 10 Per Equity Share |
ISIN: | INE227H01016 |
Pan No. | AAJCS1033P |
Lot Size: | 100 |
Current Price: | 500 |
Market Capitalisation: | Rs. 8968.75 Crore |
SHAREHOLDING PATTERN
As on 31-03-2020
S. No. | Shareholders’ Name | No. of Shares | % of total Shares of the company |
1 | R. Thyagarajan | 1 | 0.00 |
2 | Shriram Capital Limited | 13,37,43,744 | 74.56 |
3 | Sanlam EmergingMarkets (Mauritius)Limited | 4,12,56,250 | 23 |
4 | Public Shareholding | 43,75,005 | 2.44 |
| Total | 17,93,75,000 | 100.00 |
INDUSTRY OUTLOOK
After liberalization, Indian Insurance industry has recorded a significant growth. Gross premium collected by life insurance companies in India reached Rs. 7.31 trillion in FY 2020. And premium from new business of life insurance companies in India increased to Rs. 2.13 trillion in FY 2020.
In India, there are 24 life insurance, 33 non-life insurance and 2 reinsurance companies. Private companies hold a major market share of 56% in non-life insurance market as on 31st March 2020. However, in Life insurance segment private players had a market share of 31.3% in new business in FY2020.
On July 09, 2020, Union Cabinet approved capital infusion of Rs. 12,450 crores, including Rs. 2,500 crores infused in FY20, in three public sector general insurance companies - Oriental Insurance Company Limited, National Insurance Company Limited (NICL) and United India Insurance Company Limited.
Life insurance companiesregistered growth of 14% on year-on-year basis in individual annualised premium equivalent (APE) in October 2020, compared with 4% growth in September 2020.
In October 2020, health insurance witnessed an increase in premiums at Rs. 4,074.8 crore, registering 6% growth on year-on-year basis. Retail health also witnessed a 30% increase in premiums to Rs. 1,982.6 crore.
Among the life insurers, Life Insurance Corporation (LIC) is the sole public sector company. There are six public sector insurers in the non-life insurance segment. In addition to these, there is a sole national re-insurer, namely General Insurance Corporation of India (GIC Re).
Before Covid 19 Pandemic, India’s individual health insurance penetration was only around 3%. But COVID 19 helped health insurance to become a priority of the individual. The demand of these policies began uprising in the end of April 2020. Due to the urgency of COVID 19, health insurance policies were able to satisfy the immediate need of consumers. In July 2020, health insurance premiums accounted for 32.7% of the General Insurance market.
Finance Minister Nirmala Sitharaman in the Union Budget for 2021-22, proposed to liberalize foreign direct investment (FDI) in Indian insurance companies to 74% from the existing 49%.
The scope of IoT in Indian insurance market continues to go beyond telematics and customer risk assessment. Currently, there are 110+ Insur-Tech start-ups operating in India.
PROFIT & LOSS STATEMENT OF SHRIRAM LIFE INSURANCE COMPANY LIMITED (In Rs. Crores)
Particulars | 2021 | 2020 | 2019 | 2018 |
Premium Income: (Rs. in Crores) | ||||
New Business Premium | 880 | 700 | 813 | 810 |
Renewal Premium | 1,138 | 1,029 | 886 | 687 |
TOTAL PREMIUM INCOME | 2,018 | 1,729 | 1,699 | 1,497 |
Sum Assured in force (Rs. in Crores) | 1,22,866 | 1,05,770 | 1,06,456 | 96,070 |
Funds under Management (including Share holders’ Funds) (Rs. in Crores) | 6,261 | 4,801 | 4,196 | 3,544 |
Expense ratio % | 30% | 36% | 31% | 34% |
Profit Before Tax (Rs. in Crores) | 111 | 26 | 55 | 93 |
Profit After Tax (Rs. in Crores) | 106 | 35 | 63 | 88 |
BALANCE SHEET OF SHRIRAM LIFE INSURANCE COMPANY LIMITED (In Rs. Crores)
Particulars | 2021 | 2020 | 2019 |
SOURCES OF FUNDS | |||
SHAREHOLDERS’ FUNDS: | |||
Share Capital | 176.39 | 175.73 | 175.31 |
Reserves and Surplus | 548.63 | 471.46 | 446.82 |
Credit/(Debit)/ Fair Value Change Account | 29.04 | (33.47) | 15.37 |
SUB TOTAL | 754.05 | 613.72 | 637.49 |
Borrowings | - | - | - |
Deferred Tax Liability | - | - | - |
POLICYHOLDERS’ FUNDS: | |||
Credit/(Debit)/ Fair Value Change Account | 44.50 | (45.88) | 14.19 |
Policy Liabilities | 5,298.24 | 4,119.66 | 3,269.54 |
Insurance Reserves | - | ||
Provision for Linked Liabilities | 480.08 | 413.91 | 515.54 |
Funds for discontinued policies | |||
(i) Discontinued on account of non-payment of premium | 20.16 | 19.45 | 13.86 |
(ii) Others | - | - | - |
Sub Total | 5,842.98 | 4,507.15 | 3,813.13 |
FUNDS FOR FUTURE APPROPRIATIONS | 34.71 | 31.27 | 8.16 |
TOTAL | 6,631.74 | 5,152.14 | 4,458.78 |
APPLICATION OF FUNDS | |||
INVESTMENTS | |||
Shareholders’ | 634.77 | 536.00 | 563.46 |
Policyholders’ | 51.27 | 3,831.61 | 3,096.59 |
Assets Held to Cover Linked Liabilities | 500.24 | 433.37 | 529.40 |
Loans | 63.03 | 43.15 | 22.34 |
Fixed Assets | 65.18 | 68.54 | 64.09 |
Current Assets | - | ||
Cash and Bank balances | 196.01 | 115.25 | 146.47 |
Advances and Other Assets | 369.10 | 358.16 | 292.22 |
TOTAL CURRENT ASSETS | 565.11 | 473.41 | 438.69 |
Current Liabilities | 264.43 | 210.36 | 238.25 |
Provisions | 58.46 | 23.57 | 17.54 |
TOTAL CURRENT LIABILITIES | 322.89 | 233.93 | 255.78 |
NET CURRENT ASSET (C) = (A-B) | 242.22 | 239.48 | 182.91 |
Miscellaneous Expenditure | - | - | - |
Debit Balance In Profit & Loss Account (Shareholder's Account) | - | - | - |
Deficit in the Revenue Account (Policyholders’ A/c) | - | - | - |
TOTAL | 6,631.74 | 5,152.14 | 4,458.78 |
DIVIDEND HISTORY
PARTICULARS | 2021 | 2020 | 2019 | 2018 |
Dividend (In Rs.) | 1.67 | 0.52 | 1 | 0.93 |
PERFORMANCE OF THE COMPANY
Number of new policies (including Group) added in FY 2021 was 2,95,985, 7.73% increased, as compared to 2,74,750 number of new policies added in FY 2020.
The total premium income of the company for FY 2021 was Rs. 2,018 Crores. It increased by 16.71% from Rs. 1,729 Crores in FY 2020.
The results in the Non Linked business for FY 2021was a surplus of Rs. 84.47Crores after tax, FY 2020surplus was of Rs. 104.94 Crores. Decreased by 19.5%
The results in the linked business for FY 2021 was a surplus of Rs.10.78 Crores. In FY 2020 there was a surplus of Rs. 6.56 Crores. Increased by 64.33%.
The Profit & Loss Account (Shareholder’s account) for FY 2021 showed a profit of Rs. 106.19 Crores after tax which includes transfer from Policyholder’s Account of Rs. 79.60 Crores. For FY 2020 the profit was Rs. 35.30 Crores after transfer of Rs. 88.57 Crores from Policyholder’s Account. Profit increased by 200.82%.
On Individual APE (Annualized Premium Equivalent), the Company grew from Rs. 453 Crores in FY 2020 to Rs. 513 Crores in FY 2021, growth of 13%, as compared to 8% growth for Private Industry & 3% de-growth for LIC.
The company has given dividend each year from FY 2018 to FY 2021. However, the dividend per share for FY 2021 was Rs.1.67, less than the dividend per share of Rs. 0.52 for FY 2020.
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