Shriram Life Insurance to open 5 more branches in Gujarat

AHMEDABAD: Private Insurer - Shriram Life Insurance, a part of diversified Shriram Group, would add five more branches in Gujarat by the end of the fiscal year 2013-14. Currently, Gujarat contributes 7% of its total premium collection.

“We already have 5 branches in Gujarat and we aim to have additional 5 branches by the next year to penetrate into the state. I expect Gujarat to attain the top position for us in non-southern markets.” said Manoj Jain, CEO Shriram Life Insurance. At a press meet at Ahmedabad, Mr Jain said that Shriram Life Insurance premium collection stood at Rs 600 crore for the FY 2012-13.

He further said “Our objective is to reach out to the rural Gujarat with Bima Gram. The concept involves identifying a village with less than 5000 population and covering 70% households with at least one insurance policy.” According to him, this activity may take two months to one year to cover a village and having covered 3/4th households, in the village under the project of Shriram Bima Gram.

“Through this activity we also plan to aid the development of the village through activities like installing water storage tanks, hand pumps or building toilets, school rooms etc. as per the need of the village.” said Mr. Jain. Last Year, FY 2012-13, the company sold one out of every two policies in rural India. “Financial inclusion is a part of the company’s manifesto”, he adds.

Shriram Life, a dominant life insurer in South and is currently looking to tap market share in north and west India too. ”Gujarat is one of the most important states for Life Insurers”, says Manoj adding that the state has one of the highest rates of savings in the county and with the kind of extraordinary growth the state has seen in last decade is unparalleled.

The company recently announced its first half yearly results with a YoY growth of 145% on the pre-tax surplus. Retained earnings have climbed to 174 crore at the end of the quarter. The company sold 0.62 lakh policies, a growth of 10% over last year. “We aim to sell more than 2 Lakh policies and a 30% growth in new business premium in the current financial year, Manoj added.