Shriram General Insurance Company, a joint venture between Shriram Capital and Sanlam of South Africa, has no immediate plans to launch an initial public offer, said Anil Aggarwal, managing director and chief executive officer.
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“We may plan to go public after two or three years and not now,” Aggarwal said.
The company, which offers general insurance products ranging from motor, travel, home and personal accident cover, reported a net profit of Rs 121 crore in the latest quarter of FY24. The company’s profit climbed 22 percent to Rs 455 crore in fy24.
The gross written premium (GWP) during the latest quarter rose 30 percent to Rs 876 crore. Total assets under management were Rs 12,064 crore.
Motor insurance
Amid tight competition in the insurance space, Aggarwal said Shriram General Insurance has a stronghold in some segments including motor vehicle cover.
“When we came with the motor insurance model in 2008, nobody was in the motor insurance business. We were not among the top players as our focus was always to protect the bottom line rather than the top line,” said Aggarwal.
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Additionally, Aggarwal said the insurer plans to hire 500 more employees in FY25 and add 25 branches.
“Currently we have 70,000 agents and we want to add 20,000 more financial advisors in FY25,” Aggarwal said.
Sanlam, which is a major shareholder in the company, plans to increase its holding.
“Currently, Sanlam holds around something less than 51 percent and KKR has 9.99 percent, and the rest is with Ajay Piramal and the Shriram Group. Sanlam has already taken a little bit more stake and it is pending for approval,” said Aggarwal.
Go Digit General Insurance became the latest insurer in India to tap the primary market with its Rs 2,614.65 crore IPO on May 23. The issue was a mix of fresh shares worth Rs 1,125 crore and an offer for sale of shares for Rs 1,489.65 crore.
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Life Insurance Corporation (LIC) of India, was listed on the exchanges on May 22, 2022. Its IPO was subscribed 2.95 times, receiving bids for 478.3 million shares against 162 million shares offered.
