Chola MS doubles PBT to ₹179 crore in Q1

BL Chennai Bureau Updated - July 29, 2024 at 12:29 PM.
V Suryanarayanan, Managing Director, Chola MS

Cholamandalam MS General Insurance Co Ltd (Chola MS), a joint venture between the Murugappa Group and the Mitsui Sumitomo Group (Japan), has doubled its profit before tax (PBT) to ₹179 crore from ₹89 crore the previous year. The company’s gross written premium (GWP) increased by 14 per cent to ₹1,945 crore, outpacing the industry’s average growth of 12.4 per cent.

Chola MS’s financial strength is also evident in its net worth, which stands at ₹2,625 crore, with 83 per cent attributed to accumulated profits. The Return on Equity (ROE) is 5.09 per cent (not annualised), according to a company statement.

During Q1, the company settled 1.3 lakh claims through its extensive network of over 15,000 garages and 12,000 hospitals.

“Chola MS remains committed to its pursuit of profitable & sustainable growth, diversifying its line-product mix, and improving its overall profitability,” said V Suryanarayanan, Managing Director, Chola MS.

Chola MS holds a 3 per cent market share among multiline insurers and a 5.37 per cent share in the motor insurance line. The company has increased its investment corpus to ₹17,056 crore, maintaining a high multiple of investment corpus to net worth and GWP. The solvency ratio stands at 1.92x, exceeding the regulatory requirement of 1.5 times.

Looking ahead, the company is fuelled by the ongoing technology transformation efforts aimed at enhancing growth, improving customer experiences, and increasing service quality, he said.

The company also announced that it has migrated its private car portfolio from the legacy ERP to a cloud-based environment (TCS Bancs), aiming to streamline and standardize customer journeys, enable flexible and smoother integration with channel partners, and position Chola MS for faster growth.

Published on July 28, 2024 10:05

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