India: Shriram Life Insurance declares 35% higher bonus

| 11 Jun 2024

Shriram Life Insurance has declared a bonus of INR2.01 billion (US$24 million), up 35% from INR1.49 billion year-on-year (YoY) on the back of robust growth in premium income.

This bonus payout will benefit 380,000 policyholders who hold various participating plans of Shriram Life Insurance, the insurance company said.

Mr Casparus J H Kromhout, MD & CEO, Shriram Life Insurance said, “Our surge in new business premium income in FY24 was led by a combination of factors which includes new partners, technology upgrades, and focused sales. We believe this growth must be shared with our customers, who are the fulcrum of our growth story.” 

As of 31 March 2024, Shriram Life sold around 4,46,730 policies compared to 2,90,156 policies in the year-ago period. 

It settled 58,800 claims in FY24. 

Its claim settlement ratio stood at 98%, Shriram Life said.

The company sources 41% of its business from the rural segment. 

The company’s assets under management stands at INR112.82 billion, up 25% from INR90.12 billion in the previous financial year. 

It recorded a profit after tax of ?158 crore for FY24.

Life insurance bonuses are additional amounts declared by life insurance companies on participating policies. 

These bonuses are essentially a share of the profits made by the insurer, distributed among policyholders. 

They come in various forms, such as reversionary bonuses, which are added to the policy's sum assured, and terminal bonuses, which are paid out at the end of the policy term or on the death of the policyholder, reported CNBC TV18.