Shriram Life Insurance Annual Reports, Balance Sheet and Financials

Shri Ram Life Insurance Limited Standalone Balance Sheet (Rs in Crores)

Shri Ram Life Insurance Limited Standalone Profit & Loss Statement (Rs in Crores)

Shri Ram Life Insurance Limited Standalone Cash Flow Statement (Rs in Crores)

Summary of the Cash Flow Statement for the years 2025 and 2024:

Operating Activities:
Cash generated from operating activities stood at ₹1,320.03 crore in FY2025, compared with ₹1,478.01 crore in FY2024, showing a slight decline. The primary source of operating cash was premium received from policyholders, which increased significantly to ₹4,236.23 crore from ₹3,521.12 crore, indicating growth in insurance business. However, higher claim payments (₹1,393.73 crore vs ₹967.78 crore), commissions and brokerage (₹593.95 crore vs ₹370.79 crore), and other operating expenses (₹909.79 crore vs ₹689.77 crore) reduced the net operating cash flow. Although operating cash flow remained strong, rising claims and operating costs indicate increasing expense pressure as the business expands.

Investing Activities:
Investing activities resulted in a net cash outflow of ₹1,159.81 crore, although this was lower than the previous year 's outflow of ₹1,368.42 crore. The major driver was large purchases of investments amounting to ₹14,084.86 crore, which is typical for life insurance companies that invest premium income in financial instruments. These investments were partially offset by sales of investments (₹4,713.62 crore) and repayments received (₹7,553.24 crore). The company also earned ₹785.72 crore from rent, interest, and dividends, showing strong income from its investment portfolio. Overall, the investing section reflects an aggressive investment strategy aimed at building long-term assets.

Financing Activities:
Financing activities resulted in a net cash outflow of ₹84.63 crore, slightly higher than the ₹63.77 crore outflow in FY2024. The company raised a small amount through equity issuance (₹2.90 crore) but paid ₹87.53 crore in interest/dividends, which explains the net outflow. This indicates that the company is returning cash to shareholders or servicing financial obligations while relying mainly on operating cash rather than external financing.

Overall Liquidity Position:
Despite heavy investments and dividend payments, the company managed to increase its cash balance by ₹75.59 crore, reflecting healthy cash generation from operations. The business model—collecting premiums and investing them in financial assets—is evident from the strong operating inflows and large investment activity. The increase in claims and operating costs, however, should be monitored as they could affect future cash generation if the trend continues.

Financial ratios of Shriram Life Insurance Limited.

Summary of Financial Ratios of Shriram Life Insurance Limited for year 2025 and 2024.

Net Retention Ratio

The Net Retention Ratio decreased slightly from 99.8% in 2024 to 98.4% in 2025. This indicates that the company retained a slightly lower portion of the risk and transferred a marginally higher share to reinsurers. Although the ratio remains very high, showing that most of the risk is still retained by the company, the small decline suggests a cautious approach toward risk management through reinsurance.

Expense of Management to Gross Direct Premium Ratio

The Expense of Management to Gross Direct Premium Ratio increased from 31.60% in 2024 to 36.00% in 2025. This indicates that management and administrative expenses have risen relative to the premium collected. The increase may be due to business expansion, higher operational costs, or investment in distribution and infrastructure, but it also reflects reduced operational efficiency in controlling expenses.

Commission Ratio (Gross Commission and Reward Paid to Gross Premium)

The Commission Ratio increased from 11.00% in 2024 to 14.50% in 2025. This suggests that the company paid higher commissions and rewards to agents and intermediaries for generating business. The increase may indicate stronger reliance on distribution networks to boost sales, but it also increases the overall cost of acquiring new policies.

Ratio of Policyholders’ Fund to Shareholders’ Funds

The Ratio of Policyholders’ Fund to Shareholders’ Funds increased significantly from 1211.00% in 2024 to 1421.30% in 2025. This shows that the policyholders’ funds are much larger compared to shareholders’ funds, which is common in life insurance companies. The increase indicates growth in policyholders’ liabilities and funds, reflecting expansion in insurance business and higher premium collections.

Ratio of Surplus to Policyholders’ Funds

The Ratio of Surplus to Policyholders’ Funds declined sharply from 2.00% in 2024 to 0.4% in 2025. This indicates that the surplus available relative to policyholders’ funds has reduced significantly. The decline may suggest lower profitability, higher claims, or increased expenses affecting the overall surplus position.

Profit After Tax to Total Income Ratio

The Profit After Tax to Total Income Ratio decreased from 3.6% in 2024 to 1.3% in 2025. This reflects a considerable decline in profitability relative to total income. The drop may be due to higher operating expenses, increased claims, or higher commission payments, which have reduced the company’s net profit margin.

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

This ratio increased from 1.5% in 2024 to 2.1% in 2025. It indicates that the proportion of funds invested in real estate and loans has increased slightly compared to total cash and invested assets. This suggests a gradual diversification of the investment portfolio into real estate and lending activities.

Total Investment / (Capital + Reserve and Surplus)

The Total Investment to Capital and Reserves Ratio increased from 1280.3% in 2024 to 1451.6% in 2025. This shows that the company’s investments are significantly larger relative to its capital and reserves. The increase reflects a growing investment portfolio funded largely through policyholders’ funds, which is typical in life insurance operations.

Total Affiliated Investment / (Capital + Reserve and Surplus)

The Total Affiliated Investment Ratio increased from 36.2% in 2024 to 50.4% in 2025. This indicates that investments in affiliated or related entities have increased relative to the company’s capital and reserves. While this may strengthen strategic relationships within the group, higher affiliated investments may also increase concentration risk.