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Business Standard
06-08-2025
- Business
- Business Standard
Shriram Life Q1 individual new business premium rises 21% on wider reach
Shriram Life Insurance Company Ltd reported a 21 per cent year-on-year growth in individual new business premium (NBP) in the first quarter of fiscal 2026, driven by a broader distribution footprint, higher average ticket size, and branch expansion, the company said in a statement on Wednesday. The NBP rose from ₹212 crore in Q1FY25 to ₹257 crore in Q1FY26. For Q1FY26, the average ticket size — the average premium amount per policy sold — for individual policies stood at ₹24,799, compared with ₹15,192 in Q1FY25. In comparison, the average ticket size for the private industry in Q1FY26 was ₹87,373. Casparus J.H. Kromhout, managing director and chief executive officer, Shriram Life Insurance, said: 'Shriram Life Insurance is guided by a clear vision — to deepen its presence in rural and semi-urban markets and reach every corner of the country. Our strategy is focused on making life insurance simpler and more accessible for everybody we serve.' Renewal premium across the individual business rose 25 per cent year-on-year to ₹323 crore in Q1FY26 from ₹259 crore in Q1FY25. Total premium for Q1FY26 increased 27 per cent year-on-year to ₹863 crore from ₹679 crore. SLIC's assets under management (AUM) grew 17 per cent to ₹13,799 crore in Q1FY26 from ₹11,841 crore in Q1FY25. The company sold 86,750 policies in Q1FY26. The solvency ratio for the quarter stood at 1.75. During the first quarter of FY26, the company settled 18,023 claims in both individual and group policies, compared with 15,924 claims in the same period last fiscal. In FY25, the company settled 98.31 per cent of individual claims, with 93 per cent of all non-investigated claims settled within 12 hours of receiving the last document. SLIC has been deepening strategic partnerships to broaden its reach into the remotest corners of the country, reinforcing its commitment to financial inclusion. 'We believe protection should not be a privilege, but a basic financial right for every Indian household — no matter where they live or what they earn. That's why these partnerships matter,' said Kromhout. With a network of 537 branches across the country, the company offers a range of affordable products including term, endowment, unit-linked insurance plans (ULIPs), and annuities tailored for rural and urban middle-class customers.
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Business Standard
11-06-2025
- Business
- Business Standard
Deferred annuity plans: Lock in steady retirement income with guarantee
Grant Thornton's recently published report titled India's pension landscape: A study on retirement reality and readiness highlights low engagement with annuity plans. It says 76 per cent of respondents had not invested in these plans, despite the role they can play in providing stable post-retirement income. How do they work? In a deferred annuity plan, the customer pays premiums, either once or over several years. This money is invested and grows over time. 'Once a person retires, the corpus turns into a source of income as the person receives payouts. A deferred annuity plan allows a person to get a steady income stream during retirement,' says Casparus J H Kromhout, managing director and chief executive officer (CEO), Shriram Life Insurance. A deferred annuity scheme has an accumulation stage and a payout stage. It is different from an immediate annuity scheme. 'In the latter, the policyholder pays the insurer a lump sum. The company starts paying the policyholder right away, usually within a month or a year,' says Kromhout. A deferred annuity can be either guaranteed-return or market-linked. Lock in returns As a country develops, its interest rates witness a secular decline. 'In a reducing interest rate scenario, a deferred annuity plan locks in the annuity rate in advance, mitigating interest rate changes,' says Maneesh Mishra, chief product and marketing officer, Bandhan Life. Guaranteed return plans provide predictability. 'They can offer investors a fixed return of around 6–7 per cent per annum. The annuity rates are locked in at the time of investment and are not affected by market movements,' says Vivek Jain, chief business officer of life insurance, Policybazaar. For market participation, individuals may opt for unit-linked insurance plan (Ulip)-based deferred annuity plans. 'They offer market-linked growth. At vesting — typically at age 60 — the investor can withdraw up to 60 per cent of the corpus tax-free. The remaining 40 per cent (or more) must be used to purchase an annuity. Alternatively, the entire corpus can be annuitised,' says Jain. A deferred annuity allows the corpus to grow tax-free. 'You only pay taxes when you take the money out. Such a plan helps build a savings habit. Fixed and indexed deferred annuities can protect your principal,' says Kromhout. Payouts impacted by inflation Guaranteed return plans make fixed payouts. 'Do not forget the impact of inflation on retirement expenses. A fixed annuity payout might not keep up with it,' says Abhishek Kumar, Sebi-registered investment adviser and founder, Some of these plans come with high fees. These plans also lack liquidity. 'They levy hefty surrender charges, which can significantly reduce the amount you get back,' says Kumar. For instance, in a policy surrendered within the first seven years, the policyholder may only get around 50 per cent back as surrender value. One would also have to pay tax on the entire surrender value, as it is considered taxable income during the year. Consider risk appetite, return Start by assessing your risk tolerance. 'Based on it, decide whether you want a fixed, indexed or variable annuity scheme,' says Kromhout. Consider the return the plan offers. It should match your retirement needs. Choose between a fixed payout for a set period (five, 10 or 20 years) and a lifetime payout. A fixed payout option usually pays more, but the buyer risks outliving the payouts. Married persons should consider including their spouse in the plan to ensure that payments continue for the latter's lifetime. Check the policy document for charges like surrender charges, annual fees and other costs. Should you buy? Guaranteed deferred annuity plans are suitable for risk-averse investors. 'People aged between 45 and 55, who want a steady income during retirement, should go for these plans,' says Kumar. Mishra adds that one may use deferred annuity to cover at least 60 per cent of expenses in retirement. Kumar says these plans work well for those who have other savings and are unlikely to need early withdrawals. Those who may need liquidity should avoid these plans. 'People who do not have a health cover in their retirement years should also avoid them, as they could end up blocking a large portion of their corpus in annuities and might face liquidity problems during a health emergency,' says Kumar. Finally, compare annuity plans from different insurers, focusing on their payouts and fees.
