Chola MS aims at Rs 950 crore GWP in 2010-11

Cholamandalam MS General Insurance Company (Chola MS) today said it is aiming at a gross written premium (GWP) of Rs 950 crore and a profit of Rs 20 crore during the current fiscal.

"In 2009-10, we had earned GWP of Rs 785 crore and earned Rs two crore profit, but this year we are targeting a profit of Rs 20 crore from Rs 950 crore GWP," Chola MS Managing Director S S Gopalarathnam said here today.

GWP is the total premium earned by a general insurance company over a period of the contract and before the premium outgo by the company to the reinsurance company for risk mitigation.

Gopalarathnam said its focus would continue to be on motor insurance and health would remain the focus area.

"Motor contributes about 60 per cent of total premium and health is 20 per cent. We are not encouraging asset insurance (fire, marine and engineering) as discounts have reached 90-93 per cent compared to pre-detariff rates," he said.

Chola MS said it would focus in rural insurance products.

"We will penetrate further in the rural market through products like Rastriya Swasthya Bima Yojana. We will bid for more states. We have already covered 1.4 million familes in West Bengal, Jharkhand and Bihar," Gopalarathnam said.

Meanwhile, Chola MS will launch seven new products in the next six months and the new health products would be costlier.