Cholamandalam MS General Insurance Company Limited, a joint venture between the Murugappa Group and Mitsui Sumitomo Insurance Group of Japan, has raised around Rs 50.05 crore crore from its promoters. The infusion will help the company to achieve its gross written premium (GWP) of around Rs 2,000 crore this year.
According to a company release, the capital was raised through a rights issue for growth in line with its business plan for the financial year 2012-13.
Currently, Murugappa Group holds 74 per cent in the company while the rest is with MSI. The fund-raising was also in the same proportion, according to a company spokesperson. The net worth of the company, which was Rs. 325.7 crores in March 2012, has increased by Rs 50 crore to Rs 375.7 crore after the infusion.
SS Gopalarathnam, managing director, Chola MS, said that the company had reported a 40 per cent growth last year and this additional capital infused in its business will be utilised for business growth and expansion. “We plan to get close to a GWP of Rs 2,000 crore for the current year,” he added.
Chola MS has achieved a GWP of Rs 400 crore during the April-June 2012 period, registering a growth of around 25 per cent over the same period last year.
Currently 90 per cent of the GWP is contributed by the retail segment, which was only a two-third 24 months ago, he said, adding that company had realigned the business and portfolios due to discounts and price pressures in the commercial space.