The 2013-14 fiscal has turned out to be a great year for the Cholamandalam MS General Insurance Company. This JV between business conglomerate Murugappa group and Japan’s largest insurance group, Mitsui Sumitomo, has achieved a gross written premium (GWP) of Rs. 1855 crore. The profit after tax (PAT) surged to Rs.70 crore this fiscal, from Rs.60 crore last year. The combined operating ratio during the FY 2013-14 before absorption of motor and declined pool losses was 101.3 per cent. The solvency margin for this year stood at 1.61 (1.42).
Managing Director S S Gopalrathnam reckoned that the company’s strategy of identifying the niche markets and nurturing them had paved the way for the company’s handsome growth. He said the company targets Rs.2500 crore GWP, PBT of Rs.225 crore and PAT of Rs.180 crore. The company has added 4500 people in the retail side of the business and expects to add another 9000 next year.
Cholamandalam MS has grown at a pace of 14.5 per cent, much faster than the industry average of 12.5 per cent. This year the company’s health and commercial sector grew at 11 per cent and the company wants this to increase to 20 per cent. The company plans to achieve this target within five years. The company has settled claims of around Rs 100 crore(mostly cars) for the Uttarakhand floods.