The Hindu Business Line : Chola MS net down at Rs 7 cr

Chennai, May 21 Cholamanadalam MS General Insurance reported a marginal fall in net profit to Rs 7 crore for 2008-09, from Rs 7.2 crore in the previous year.

However, its pre-tax profits were 14 per cent higher at Rs 12 crore. It earned a premium income of Rs 685 crore for the year.

Mr Gopala Rathnam, Managing Director, Chola MS General Insurance, said the company would have posted better profits but for higher losses from the motor pool.

Motor pool is a consortium of general insurance companies that share the losses arising out of insuring third party risks.

He said that the insurer expects to save about Rs 6-10 crore by taking up a ‘war on waste’. This includes raising productivity of agents and employees, rationalising of branch locations from higher to lower rentals, cutting IT expenses and administration costs.

“We don’t plan to add new branches or agents this year,” he said.

Chola MS General has set a target of doubling its profits for the current financial year. By focusing on motor portfolio, the company earned Rs 100 crore premium income in April.

It expects to launch add-on covers in the motor segment as soon as it gets approval from the Insurance Regulatory and Development Authority.

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