First and foremost I hope this message finds you and your family in good health. I ampleased to connect with you through this annual report and share your Company'sperformance during FY 21. The year that has gone by witnessed significant global politicaland economic developments centered around several major events including the COVID-19pandemic the U.S.-China trade war and the U.S. presidential election.
The global economy was fraught with challenges due to the pandemic in particular withmany countries suffering immense impact. Significant reductions in income a rise inunemployment and disruptions in the transportation service and manufacturing industriesare among the consequences of the disease. The situation in India has been no differentas we find ourselves staring at the worst ever recession since independence. Just as theglobal & domestic economy showed signs of recovery that began in the third quarter of2020 a resurgence in infectious cases in many parts of the globe renewed calls forlockdowns and curfews threatened to weaken or delay a potential sustained economicrecovery into mid to late 2021. In India the second wave has disrupted economic recoverywith major economic indicators showing signs of stress more specifically the servicessector and MSMEs.
FY 21 has been extremely challenging for the financial services industry especially onaccount of the worldwide economic slowdown coupled with stressed borrowers and aliquidity crunch in the market. After battling disruptions during the first quarterIndia's non-banking financial companies grew at a slower pace in the second and thirdquarters of the year largely aided by the liquidity enhancing measures announced by theGovernment. In the insurance sector the general insurance industry in which your Companyoperates registered a tepid 2% growth for the last fiscal year primarily driven by growthin health insurance and fire insurance segments even as the dominant motor and cropinsurance segment declined. Fire protection insurance grew 30% health insurance reporteda 13.5% rise while motor and crop insurance dipped 6.2% and 3.4% respectively. A positivedevelopment during the year is the Government's initiative permitting FDI limit upto 74%.
Amidst the challenging external environment your Company and its subsidiariescontinued to deliver consistent performance through its diversified business model duringthe year. In terms of consolidated financial performance total income stood at Rs 13905Crore and profit after tax was Rs 1764 Crore for FY 21. At standalone level total incomewas Rs 58 Crore and profit after tax was Rs 22 Crore for the same period. The Board ispleased to recommend a dividend @ 55% for FY 21.
The NBFC subsidiary Cholamandalam Investment and Finance Company Limited (CIFCL)closed the year with disbursements of Rs 26043 Crore and business assets under managementof Rs 69996 Crore. Profits after tax grew by 44% to Rs 1515 Crore. CIFCL had offeredmoratorium to its customers based on their eligibility for EMIs falling due between March1 2020 to August 31 2020. Further the Company had offered resolution plans to itscustomers pursuant to RBI's guideline on Resolution framework for COVID-19 relatedstress'. CIFCL's liquidity position remains strong with a capital adequacy at 19.1% as atend of the year. Among the key business segments Vehicle Finance business continues to bethe major portfolio of CIFCL registering a decline of 13% on disbursement during the yearprimarily due to drop in industry volumes across vehicle segments caused by the pandemic.While Home Loans disbursement grew 2% year on year disbursements in Loan against Propertysegment registered a marginal decline of 1% during the year.
The Gross Written Premium of our insurance subsidiary Cholamandalam MS GeneralInsurance Company Limited (Chola MS) largely remained flat at Rs 4705 Crore as againstthe industry growth of 2% and the profits after tax was Rs 276 Crore during FY 21.Growth in FY 21 was impacted by the nation wide lockdown affecting economic activity forwell over six months and recovery in the last few months helped the insurance businessbounce back. The business achieved portfolio diversification by strong growth in propertylines and also achieved mix diversification within motor lines. The COVID year also meantthat we had a lot of health claims impacting our results by over Rs 130 Crore. Claimsettlement ratio which is value of claims settled to the claims made of Chola MS is 75%which is the second best in the industry displaying our commitment to timely andtransparent claims servicing to policy holders. To meet the diverse needs of our retailcustomers Chola MS also distributed Covid-19 linked health products and the standardArogya Sanjeevani products during the year.
Cholamandalam MS Risk Services a company offering risk management solutionsstrengthened its order book by bagging few long term contracts aggregating to Rs 38Crore during the year. As a key product offering in line with the emerging environmentthe business launched a digital division to explore and supplement the existing coreservices. The Company reported income of Rs 44 Crore and profit after tax of Rs 2Crore for FY 21.
The pandemic no doubt has caused redesign of our lives in a number of waysparticularly the need for easy access to financial products and services. In alignmentwith customer needs and to enhance operational efficiency our technology teams continuedto implement various digital initiatives. Further a host of response measures have beenestablished to ensure a safe and healthy environment for employees and customers.
I am indeed most grateful to our Board of Directors for their support and counsel. Onbehalf of the Company
I welcome Mr. Vellayan Subbiah to the Board. I am confident that Mr. Vellayan'sexpertise and experience in the financial services industry will be of immense benefit tothe Company. Mr. V Ravichandran stepped down from the Board during the year. I would liketo thank Mr. Ravichandran for his support and guidance during his tenure as a Boardmember.
Although uncertainty continues to cloud the economic outlook operating conditions areexpected to improve from the latter half of 2021 as the second wave subsides andvaccination levels improve. Our businesses are well positioned to sustain their growthtrajectory and will continue to prioritize effective and efficient customer service.
I thank all our employees for their sincere efforts and commitment during thischallenging year. I also take this opportunity to express my gratitude to all ourstakeholders customers business partners and vendors for their continued trust andsupport reposed on us.
M M Murugappan