Shriram Life Insurance Annual Reports, Balance Sheet and Financials

Shriram Life Insurance Company Limited Balance Sheet (Rs in Thousands)

Shriram Life Insurance Company Limited Profit & Loss Statement (Rs in Thousands)

Shriram Life Insurance Company Limited Consolidated Cash Flow Statement (Rs in Thousands)

Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flow from Operating Activities

Premium Received from Policyholders:

2024: ₹3,50,69,810 thousand

2023: ₹2,540,37,870 thousand

This represents the cash inflows from policyholders, including advance receipts. The substantial increase indicates a significant growth in the business and new policies written.

Other Receipts:

Proposal Deposits:

2024: ₹401 thousand

2023: ₹-5,626 thousand

Proposal deposits reflect initial deposits made by policyholders. A positive figure in 2024 indicates an inflow, compared to an outflow in 2023.

Policy Deposits:

2024: ₹1,40,974 thousand

2023: ₹-4,54,217 thousand

Policy deposits are additional funds deposited by policyholders. There is a significant inflow in 2024 compared to an outflow in 2023.

Linked Income:

2024: ₹1,00,469 thousand

2023: ₹95,875 thousand

Linked income relates to income from linked insurance products, showing a slight increase.

Miscellaneous Income:

2024: ₹7,94,264 thousand

2023: ₹4,25,431 thousand

This includes various other income sources and has seen a notable increase.

Payments:

To Re-insurers:

2024: ₹-56,861 thousand

2023: ₹-85,163 thousand

Payments to re-insurers, net of commissions and claims/benefits, decreased, indicating lower re-insurance costs.

Claims/Benefits:

2024: ₹-94,97,343 thousand

2023: ₹-75,64,808 thousand

Payments for claims and benefits increased, reflecting higher policy payouts.

Commission and Brokerage:

2024: ₹-37,07,729 thousand

2023: ₹-14,07,037 thousand

Payments for commissions and brokerage saw a substantial increase, possibly due to higher sales volume.

Operating Expenses:

2024: ₹-69,89,023 thousand

2023: ₹-56,00,647 thousand

Other operating expenses increased, indicating higher operational costs.

Deposits, Advances, and Staff Loans:

2024: ₹4,39,122 thousand

2023: ₹-9,59,240 thousand

There was an inflow in 2024, contrasting with an outflow in 2023, indicating a reduction in such advances.

Income Taxes Paid:

2024: ₹-4,88,004 thousand

2023: ₹-2,59,377 thousand

Increase in income taxes paid, reflecting higher taxable income.

GST Paid:

2024: ₹-84,650 thousand

2023: ₹-46,494 thousand

GST payments increased, indicating higher taxable transactions.

Loans Against Policies:

2024: ₹-5,58,377 thousand

2023: ₹-3,87,382 thousand

Increase in loans against policies, indicating higher borrowing against policies.

Net Cash Flow from Operating Activities:

2024: ₹1,51,63,053 thousand

2023: ₹91,55,102 thousand

Significant increase in net cash inflows, reflecting overall growth and improved operational efficiency.

Cash Flows from Investing Activities

Purchase of Fixed Assets:

2024: ₹-1,93,187 thousand

2023: ₹-1,42,317 thousand

Increased investment in fixed assets, indicating expansion.

Sale of Fixed Assets:

2024: ₹42,729 thousand

2023: ₹29,613 thousand

Increased proceeds from the sale of fixed assets.

Purchases of Investments:

2024: ₹-2,59,10,088 thousand

2023: ₹-1,66,68,401 thousand

Significant increase in investment purchases, indicating a higher allocation of funds into investments.

Investment Income:

2024: ₹60,81,290 thousand

2023: ₹50,10,775 thousand

Increase in income from investments, reflecting higher returns.

Sales of Investments:

2024: ₹62,78,404 thousand

2023: ₹32,19,590 thousand

Increase in proceeds from the sale of investments.

Net Cash Flow from Investing Activities:

2024: ₹-1,37,00,852 thousand

2023: ₹-85,50,740 thousand

Higher net outflow, indicating increased investment activities.

Cash Flows from Financing Activities

Proceeds from Issuance of Share Capital:

2024: ₹31,762 thousand

2023: ₹4,664 thousand

Increase in proceeds from issuing share capital.

Interest/Dividends Paid:

2024: ₹-6,88,800 thousand

2023: ₹-5,38,125 thousand

Increase in interest and dividends paid, reflecting higher financing costs.

Net Cash Flow from Financing Activities:

2024: ₹-6,57,038 thousand

2023: ₹-5,33,461 thousand

Increased net outflow, indicating higher financing expenses.

Net Increase in Cash and Cash Equivalents

2024: ₹8,05,163 thousand

2023: ₹70,902 thousand

Significant increase in net cash inflow, indicating improved cash management.

Cash and Cash Equivalents at Year-End:

2024: ₹30,46,379 thousand

2023: ₹22,41,216 thousand

Higher ending balance, reflecting overall positive cash flow.

Components of Cash and Cash Equivalents

Cash on Hand: Minimal change, indicating stable cash reserves.

Balances with Banks:

In Current Accounts: Increased, indicating more readily accessible funds.

In Deposit Accounts Free of Lien: Increased, reflecting higher secured deposits.

Financial Ratios of Shriram Life Insurance Company Limited

Here is a summary of the financial and operational metrics for Shriram Life Insurance Company Limited for the year 2024 & 2023:

Net Retention Ratio

2024: 99.80%

2023: 99.70%

Insight: A high net retention ratio indicates that the company retains a significant portion of its premiums, reflecting stability in its risk retention strategy.

Expense of Management to Gross Direct Premium Ratio

2024: 31.60%

2023: 28.60%

Insight: The increase in this ratio suggests higher management expenses relative to gross direct premiums, which might impact profitability if not managed effectively.

Commission Ratio (Gross Commission Paid to Gross Premium)

2024: 11.00%

2023: 5.90%

Insight: The significant rise in the commission ratio indicates higher commission expenses relative to gross premiums, potentially reflecting changes in distribution strategy or increased reliance on intermediaries.

Ratio of Policyholder 's Liabilities to Shareholder 's Funds

2024: 1211.00%

2023: 1091.10%

Insight: An increase in this ratio suggests a higher level of policyholder liabilities compared to shareholder funds, indicating increased obligations towards policyholders.

Growth Rate of Shareholders ' Fund

2024: 13.50%

2023: 13.70%

Insight: The slight decline in the growth rate of shareholders ' funds suggests a marginally slower pace of equity growth, which could impact the company’s ability to raise capital.

Ratio of Surplus to Policyholders ' Liability

2024: 2.00%

2023: 1.80%

Insight: The increase in this ratio indicates a higher surplus relative to policyholders ' liabilities, reflecting improved financial strength and ability to cover policyholder claims.

Profit After Tax/Total Income

2024: 3.60%

2023: 5.00%

Insight: The decrease in this ratio indicates lower profitability relative to total income, suggesting increased expenses or reduced income.

(Total Real Estate + Loans) / (Cash & Invested Assets)

2024: 1.50%

2023: 1.40%

Insight: A slight increase indicates a marginally higher allocation of assets to real estate and loans relative to cash and invested assets, potentially affecting liquidity.

Total Investments / (Capital + Surplus)

2024: 1280.30%

2023: 1142.30%

Insight: The increase suggests a higher investment base relative to capital and surplus, indicating an aggressive investment strategy which could enhance returns but also risk.

Total Affiliated Investments / (Capital + Surplus)

2024: 36.20%

2023: 41.30%

Insight: The decrease indicates a lower proportion of affiliated investments, which could reduce exposure to related party risks.

Dividend History