Shriram Life Insurance is the Shriram Group company catering to the Life Insurance business of the Group. Let us first know briefly about the Shriram Group businesses and then we will move on to study Life Insurance Business.
Shriram Group
a) Shriram Group, established in 1974, is among the leading corporate houses in India and is a major player in the Indian financial services sector.
b) Shriram Group’s presence in financial services is diverse ranging from Commercial Vehicle Financing, Retail Financing, Enterprise Financing to small business, Housing Finance, Equipment Financing, Life Insurance, General Insurance, Retail Stock Broking, Distribution of Financial Products, and Wealth Advisory Services. Financial Services Companies in the Group manage assets of around INR 1,500.
Partnership with Sanlam to start Insurance Business
Sanlam, a leading financial services group and one of the largest insurers in South Africa has partnered with Shriram Group in both its Life and Non-Life Insurance ventures. The effective leveraging of the network and brand equity of Shriram Group and strategic guidance by the Sanlam Group has facilitated a steady growth of the insurance companies.
Shriram Life Insurance Business
Started in the year 2005, they offer different life insurance plans for their customers which include Individual Plans, Online Plans, and Group Plans. To know more about the plans you can visit. Shriram Life Insurance has a branch network of 588 branches and has an advisor force of 4455.
Financials Metrics
1. New Business Premium- We know when we purchase a policy we pay the premium. That premium when added together from all the users who have taken policy in a given year is known as New Business Premium.
2. Renewal Premium – This is the premium of all the policyholders who have taken insurance policy prior to the current year in which we are calculating the premium. This is an important factor because sometimes people take the policy and then say after 1Y, 2Y or any other year discontinue the premium.
3. Solvency ratio- It is similar to D/E in other businesses. The IRDAI requires life insurers to maintain a minimum Solvency Ratio of 150%. As compared to the minimum requirement of 150%, the Company’s Solvency Ratio, as of 31st March 2019, was 182%.
Market share of the Shriram Life Insurance business
a) As of 30.09.2020, there is a total of 24 Life Insurers in India.
b) The total premium as of 30.09.2020 stands at 1,24,727 Crores. This is the total premium collected in the first 6 months of FY20-21.
c) LIC has a total premium of 89980 Crores (72%).
d) Private players have a total premium of 36709 Crores (28%). Among Private Players, SBI Life (24%), HDFC Life(23%), ICICI Life (12%), Aditya Birla (6%) are the top players in terms of market share.
e) For the first 6M FY20-21 Shriram Life Insurance has only 248 Crores of premiums. This translates into 0.067% market shares among private players.
Source: Link
Shriram Life Insurance FY20-21 Analysis:
(i) The domestic life insurance industry registered 7% growth for new business premium in financial year
2020-21, largely driven by growth in Individual & Group Single premium policy. While private insurers saw their growth at 16 %, Life Insurance Corporation of India (LIC) registered growth at 3 % in last financial year.
(ii) Shriram Life Insurance’s Individual New Business saw a growth of around 15% as compared to 14% growth for private industry and 10% growth for LIC.
(iii) In FY21, the total premium income of the company was Rs. 2019 Crores as compared to Rs. 1729 Crores in the previous year.
(iv) Shriram Life Insurance has the Solvency Ratio of 190%, against the requirement of 150%.
(v) This year Shriram Life Insurance has declared a dividend of Rs.1.67 per share.
(vi) As on 31.03.2021, Shriram Life Insurance has a branch network of 455, and has active advisor force and POSPs of 3784 and 90 respectively.
Total Available Shares: | 1000 |
Face Value: | ₹ 10 Per Equity Share |
ISIN: | INE227H01016 |
Lot Size: | 50 Shares |
Current Unlisted Share Price: | ₹ 400 Per Equity Share |
Shareholder’s Name | No. of Shares | % of total Shares |
Shriram Capital Limited | 13,37,43,744 | 74.56 |
Sanlam Emerging Markets (Mauritius) Limited | 4,12,56,250 | 23 |
Particulars (in Cr) | Mar-16 | Mar-17 | Mar-18 | Mar-19 | Mar-20 | Mar-21 |
Number of new policies | 266976 | 200691 | 247183 | 276483 | 274750 | 295985 |
New Business Premium | 694 | 734 | 810 | 813 | 700 | 880 |
Renewal Premium | 328 | 474 | 687 | 886 | 1029 | 1138 |
Sum Assured in Force | 80376 | 81915 | 96070 | 106456 | 105770 | 122866 |
Funds under Management | 2528 | 3076 | 3544 | 4196 | 4801 | 6261 |
Expense ratio | 51% | 42% | 34% | 31% | 36% | 30% |
No. of Offices | 568 | 604 | 609 | 588 | 529 | 455 |
Number of Insurance Agent | 4422 | 4508 | 4498 | 4455 | 4436 | 3784 |
Profit Before Tax | 23 | 16 | 93 | 55 | 26 | 111 |
Profit After Tax | 19 | 17 | 88 | 63 | 35 | 106 |
No. of shares | 17.50 | 17.50 | 17.50 | 17.53 | 17.53 | 17.9 |
EPS | 1.09 | 0.97 | 5.03 | 3.59 | 2 | 5.9 |
Peer | Premium (Cr) | Mcap | Mcap/Premium |
HDFC Life | 20242 | 135593 | 6.69 |
ICICI Life | 13000 | 78000 | 6 |
SBI Life | 20625 | 96932 | 4.69 |
Shriram Life | 885 | 4700 | 5.31 |
Please find below the procedure for buying Shriram Life Insurance Co. Ltd Unlisted Shares at UnlistedZone.
Please find below the procedure for selling Shriram Life Insurance Co. Ltd Unlisted Shares at UnlistedZone.
Lock-in period of Shriram Life Insurance Co. Ltd Unlisted Shares depends upon category of investors.
DIS - Delivery Instruction Slip is the way through which an investor can sell or transfer the Shriram Life Insurance Co. Ltd Unlisted Shares from his/her demat account to any other demat account. There are two Types of DIS Slip.
In the last 4-5 years, the unlisted share market has become quite big and as a result of that, the ticket size has reduced from usual 5-10 Lac to 35-50k in today's scenario. So, via our UnlistedZone platform, if somebody wants to buy Shriram Life Insurance Co. Ltd Unlisted Shares then minimum investment would be 35-50k.
Yes, buying and selling of unlisted shares in India is 100% legal.
If you sell your shares within 2 years, then you will have to pay Short-term Capital gain on unlisted shares. Short-Term Capital Gain is added in your Income. So, as per individual tax slab you need to pay capital gain tax.
If you sell your shares after 2 years, then you will have to pay Long-term Capital gain on unlisted shares LTCG is 20% with indexation benefits.
After listing of shares, the unlisted shares which you have bought through unlisted market, will be taxed at listed rates, if sold through exchange. So, taxes of listed market will be applicable. And, to calculate holding time, for determining LTCG or STCG, the purchase date of unlisted shares will be applicable.
If you buy Shriram Life Insurance Co. Ltd Unlisted Shares from UnlistedZone then these shares can checked in two ways. However, before we tell you the process of checking of shares, it is intimated that as per SEBI regulations, the shares can be transferred in demat account only.
Check credit of Shriram Life Insurance Co. Ltd Unlisted Shares Instantly?
The Shriram Life Insurance Co. Ltd Unlisted Shares are credited in demat account same day of transferring funds in our company's bank account.
The price of Shriram Life Insurance Co. Ltd Unlisted Shares can be checked in two ways. First, you can join our telegram channel where on daily basis we share the latest prices of all the unlisted shares in the morning and secondly, you can register on UnlistedZone.live platform to see the historical graphs and prices of all the shares at one place.
If you see the thesis of investment in the unlisted shares then it is being done mainly to take the advantage of IPO market. And, if the IPO plans of company get delayed due to market conditions or any other reason then demand suddenly drops in the market. The unlisted market works mainly on demand and supply and if there is no IPO news then getting exit would be difficult.
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We at UnlistedZone do the valuation based on 2 methods.
As an investor in the unlisted space, we would always recommend that you must check all the risk parameter carefully before investing in the unlisted space.
We source shares either from the employees or initial investors looking to liquidate their Shriram Life Insurance Co. Ltd Unlisted Shares.
Pre-IPO shares means which are planning for an IPO in near future. So, all the shares which are traded on the platform are not Pre-IPO Shares. However, if the company's business is going good and then demand will always be there in the unlisted space, so even if the IPO does not come, the investors can easily liquidate their Shriram Life Insurance Co. Ltd Unlisted Shares in the unlisted market itself.
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