Chola MS targets Rs 2,500 cr premium

To focus on health and corporate insurance

Cholamandalam MS General Insurance Company Ltd (Chola MS), a joint venture of the Murugappa Group and Japan-based Mitsui Sumitomo Insurance Group, is aiming to clock a gross written premium (GWP) of Rs 2,500 crore in the current fiscal.

The company posted a GWP of Rs 1,855 crore for the financial year ended on March 2014, and is planning to launch new products in health and motor businesses.

Announcing results for the year ended March 31, 2014, SS Gopalarathnam, managing director of Chola MS, said, “In the financial year 2014-15, we are targeting GWP of Rs 2,500 crore and an operating profit before tax of Rs 225 crore. We also aim to be positive on underwriting with a targeted combined operating ratio (COR) of 99.9 per cent. This will lead to continuous growth and accelerated profits.”

The COR during the fiscal 2013-14 before absorption of motor and declined pool losses was 101.3 per cent, and the PBT was Rs 101 crore for the year. "We also plan to launch new products in health and motor businesses. There are also plans to add 9,000 agents during in the current fiscal, said  Gopalarathnam.

The company would put more focus on health insurance and corporate insurance business and it is expected health insurance would grow to 25 per cent in five years from 11 per cent now. The corporate business would also grow to around 20 per cent from the existing 10 per cent, he added. On the retail front, Chola MS added over 4,500 agents in 2013-14.