Chola MS General Insurance Reports GWP of ₹ 1945 Cr; doubles PBT to ₹179 Cr

National, 28 July 2024 : Cholamandalam MS General Insurance Company Ltd (Chola MS), a joint venture between Murugappa Group and Mitsui Sumitomo Insurance Group (Japan), today announced unaudited financial results for Q1-FY25. The company achieved a Gross Written Premium (GWP) of ₹1,945 crore, a growth of 14.3% compared to the industry average of 12.4%. Chola MS reported an increase in Profit before Tax (PBT), reaching ₹179 crore, doubling from ₹89 crore in the same period last year.

The company’s financial strength is further reflected in its net worth, which stands at ₹2,625 crore, with 83% attributed to accumulated profits. The Return on Equity (ROE) stood at 5.09% (not annualized).

Key Highlights

●       In the quarter, Chola MS added several new partnerships including those with Bajaj Finance Ltd.

●       Chola MS holds a 3% market share among multi line insurers. It has a 5.37% share in the motor line.

●       Chola MS has migrated its private car portfolio from the legacy ERP to a cloud architecture environment (TCS Bancs). This lays the foundation for streamlining and standardizing customer journeys, flexible and smoother integration with channel partners, and positions Chola MS to look for faster growth.

●       The company settled 1.3 lakh claims during Q1 through its extensive network of 15,000+ garages and 12,000+ hospitals.

●       The Company has increased its investment corpus to Rs.17056 Crores and enjoys a high multiple of investment corpus to net-worth and GWP.

●       The solvency ratio stood at 1.92 x, exceeding the regulatory requirement of 1.5 times.

 

In a strategic move towards digital transformation, Chola MS has made investments in data analytics and artificial intelligence (AI). As part of this initiative, Chola MS has adopted the use of Artificial Intelligence in its motor claims servicing through its SAHAI application for motor damage assessment and easy claims settlement. 94% of motor claims settled through this application stands testimony to hassle-free claim settlement.

Sharing details about the quarterly performance, Mr. V. Suryanarayanan, Managing Director, Chola MS, said, “Chola MS remains committed to its pursuit of profitable & sustainable growth, diversifying its line-product mix, improving its overall profitability and enhanced returns to investors. Looking ahead, the company is fueled by the ongoing technology transformation efforts aimed at enhancing growth, customer experiences and enhanced service quality. We would like to thank our policyholders, business partners, reinsurers, shareholders and the regulators for their continued trust, support, encouragement and patronage.”