Chola MS infuses Rs 50 crore capital

Cholamandalam MS General Insurance Company Limited (Chola MS) has infused Rs 50 crore capital to meet its target of achieving new business premium of Rs 900 crore for 2010-11.

The paid-up capital of the Chennai-based general insurer before infusion was Rs 217 crore while authorised capital was Rs 250 crore.

Speaking to Business Standard, SS Gopalarathnam, managing director, Chola MS, said the company had set a target of 12-13 per cent growth next fiscal. “We are likely to close the current fiscal with a turnover of around Rs 800 crore,” he said.

In September last year, the company had set a target of Rs 900 crore for the current fiscal but revised it to Rs 800 crore. “This was due to group health exposure, which the company had cut down. Going forward we want to move away from this segment,” he said.

The growth drivers for the next fiscal would be largely motor, selling and servicing policy through Internet, and retail. The insurer is also betting big on bancassurance. “Our target for the next fiscal is around Rs 300 crore through this channel,” he added.