Shriram General Insurance Company (SGIC), which used to primarily focus on used commercial vehicle insurance, is planning to grow its private vehicle insurance business.
“In the past, we focused mainly on commercial vehicles, but now we are building our private vehicles book. In the next two years, we want private vehicles to contribute 25% of our total book,” managing director and CEO Anil Aggarwal told FE.
SGIC, jointly owned by Shriram Group and Sanlam Ltd of Africa, reported a 25% year-on-year rise in gross written premium (GWP) to ₹1,061 crore for the third quarter of FY25, driven by a 27% increase in motor insurance premiums to ₹988 crore. At present, motor insurance contributes 93% of its total premium while fire, engineering and personal accident account for the rest.
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Aggarwal said the share of private vehicles in the total motor premium declined to 19% from 22% last year, while that of commercial vehicles rose to 81% from 78%.
“Within private vehicles, two-wheelers are more profitable than private cars,” Aggarwal said, adding that diesel vehicles have a higher claim ratio compared to petrol cars. “We are trying to balance growth with profitability by careful selection of vehicles.”
Used vehicles account for 87% of the total motor premium while new vehicles account for the rest. Aggarwal said the slowdown in new vehicle sales in both the commercial and passenger segments did not affect its premium growth.
For the first nine months of the current fiscal, SGIC’s GWP grew 23% year-on-year to ₹2,654 crore. Aggarwal said the company is on track to meet its GWP guidance of ₹3,750 crore for FY25.
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