The joint venture between Japan's Mitsui Sumitomo insurance group and the Murugappa group, Cholamandalam MS General Insurance Company (Chola MS), announced on Thursday that it is reentering the crop insurance business and will be increasing its overall market share among multi-vertical players to 5% from the current 2.87% over the course of the following three to four years.
V Suryanarayanan, MD at Chola MS, told FE that the company would continue to grow ahead of the industry. “Our aspiration is that over the next three to four years, we will be able to reach the target of 5%.”
Regarding the intention to return to the crop insurance market, Suryanarayanan stated that the main reason for their withdrawal in 2018–19 was the failure to receive premium payments from the state governments. The governments are demonstrating commitment, and there are now a lot more enabling provisions. In the end, the money needed to cover the claims should go to the insurance companies.
The company had a portfolio of Rs 580 crore in crop insurance at the time of leaving and held 10–11% of the stock. The crop insurance market is currently worth roughly Rs 25,000 crore.
With a gross written premium (GWP) of Rs 6, 200 crore at the end of FY23, the Chennai-based company outperformed the sector with a YoY rise of 27.6%. With a net worth of Rs 2,160 crore, a solvency ratio of 2.01 times, and an annual net profit of almost Rs 200 crore, the company exceeded the statutory minimum of 1.5 times. With high multiples of investment corpus to net worth and GWP, the company has increased its investment corpus to Rs 14,715 crore.
The Chennai-based company ended FY23 with a gross written premium (GWP) of Rs 6, 200 crore, logging a YoY growth of 27.6%, against the industry growth of 16.2%. The company earned a net profit of around Rs 200 crore for the year with a net worth of Rs 2,160 crore and a solvency ratio of 2.01 times, against the regulatory minimum of 1.5 times. The company has grown its investment corpus to Rs 14,715 crore and enjoys high multiples of investment corpus to net worth and GWP.
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