Shriram Life Insurance Shares

Annual Report Summary

The document is the 16th Annual Report of Shriram Life Insurance Company Limited for FY 2020-21.

About Shriram Life Insurance:

• Shriram Group, established in 1974, focuses on financial services that reach a large number of common people.
• Shriram Capital Limited (SCL) is the overarching holding arm of the financial services entities of the Group.
• The Sanlam Group, a leading financial services group and one of the largest insurers in South Africa, is a partner of the Shriram Group.
• Branch Network over 3,950, Manpower strength over 74,500 and Customer base around 218 lacs.

Financial and Operational Review:

• Number of new policies (Including Group): 295,985 in FY 2020-21 compared to 274,750 in FY 2019-20.
• Premium Income: Rs. 2018 Crores in FY 2020-21 compared to Rs. 1729 Crores in FY 2019-20.
• Funds under Management: Rs. 6261 Crores in FY 2020-21 compared to Rs. 4801 Crores in FY 2019-20.
• Expense ratio was 30% for FY 2020-21 compared to 36% in FY 2019-20.
• Profit Before Tax: Rs. 111 Crores in FY 2020-21 compared to Rs. 26 Crores in FY 2019-20.
• Profit After Tax: Rs. 106 Crores in FY 2020-21 compared to Rs. 35 Crores in FY 2019-20.
• The Solvency Ratio was 180% as at 31st March, 2021.
• The Board has declared a final dividend of Rs. 1.67 per share.

Business Performance:

• The domestic life insurance industry registered 7% growth for new business premium in FY 2020-21. Shriram Life Insurance saw around 15% growth for individual new business. The company's total premium income was Rs. 2019 Crores.

Rural and Social Sector Obligations:

• The Company has met its Rural and Social Sector obligations for FY 2020-21. Rural business achieved 45% versus a prescribed requirement of 20% of overall business. Social business insured 3,237,341 social lives versus prescribed 199,170 (5%) social lives.

Other Key Highlights:

• The company has a branch network of 455 branches with 3784 active advisors and POSPs.
• IRDAI has approved 144 products/riders, with 42 available for procuring new business. 7 new products were launched, and 3 were withdrawn in FY 2020-21.
• The Company has an Internal Control System commensurate with its operations.
• Mr. Gaurav Trehan resigned as Director. Mr. Casparus Jacobus Hendrik Kromhout and Mr. Manoj Jain were re-appointed as MD & CEO and MD, respectively. Mr. Ganesh Vaidyanathan resigned and Mr. Brahmaiah Telaprolu was appointed as Chief Financial Officer.
• The company has a policy on Board Appointment and Performance Evaluation. The Board of Directors has carried out an annual evaluation of its own performance, Board committees, and individual directors.
• Four Board Meetings and twenty-eight Committee Meetings were convened and held during the year.
• The Directors confirm that the annual accounts follow applicable accounting standards and present a true and fair view.
• The Company has constituted a CSR Committee and has uploaded its CSR policy on its website.
• M/s. G.D. Apte & Co. and M/s M Bhaskara Rao & Co are the Joint Statutory Auditors of the Company.
• The Company's Corporate Governance Framework includes several Board Committees: Audit and Actuarial Committee, Investment Committee, Risk including ALM Committee, Policyholders' Protection Committee, Compensation Committee, Nomination and Remuneration Committee, Corporate Social Responsibility Committee, With Profits Committee, Management Committee, Outsourcing Committee.
• The 16th Annual General Meeting (AGM) will be held on July 23, 2021, via Video Conferencing (VC).
• The company has a Whistle Blowing Policy in place.
• The company's foreign partner has influenced its technology plan, and company personnel have undergone orientation at the partner company. Foreign exchange earnings were Rs.5.89 crores, while foreign exchange outgo was Rs.4.05 Crores net of TDS.

Appendices:

• Annexure 1 details contracts with related parties.
• Annexure 2 presents the Secretarial Audit Report.
• Annexure 3 extracts the Annual Return.
• Annexure 4 provides the Report on Corporate Governance.
• Annexure 5 is the Annual Report on CSR activities.