India · Delayed Price · Currency is INR Cholamandalam Financial Holdings Earnings Call Transcripts
Fiscal Year 2026
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Cholamandalam MS General Insurance reported higher claims and combined ratios for FY 2026, impacted by crop insurance loss and competitive motor segment pressures, but remains focused on improving profitability and regaining growth in key segments. ROE stood at 10.4% with a medium-term target above 15%.
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Q3 FY26 saw GDPI of INR 2,067 crore, with profitability impacted by loss of crop insurance and higher motor claims provisioning. Management expects improvement in combined ratio and ROE as corrective actions take effect and plans to regain crop business in upcoming tenders.
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Gross direct premium and profitability were impacted by crop business loss and higher motor claims, but growth is expected to recover from Q3 as base effects fade. Investment yield improved via higher corporate bond allocation, and management targets a return to 16-18% ROE.
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Q1 FY26 GWP rose to INR 1,997 crore, with profit at INR 145 crore and a strong solvency ratio. Claims and combined ratios were elevated due to higher reserving and large fire claims, while crop insurance premium dropped sharply. Management targets stable full-year GWP despite industry headwinds.
Fiscal Year 2025
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Gross written premium grew at 1.5x–1.6x industry rates, with Q4 PBT at INR 195 crore and full-year ROE at 18.5%. Combined ratio improved to 107.85% (excl. one-by-one), and technology investments and portfolio adjustments are expected to further enhance profitability.
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Q3 FY25 saw 8% GDPI growth, outpacing industry, with strong motor segment gains and higher car insurance share. Combined ratio improved year-over-year, while health loss ratios rose due to group business expansion. Regulatory changes in accounting and NatCat events impacted results.
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Gross direct premium grew 9.2% in Q2 and 11.5% for H1, outpacing industry growth. Motor and other key segments performed strongly, with improved claims ratio and stable expense management. Regulatory changes and tech investments remain key focus areas.
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Gross direct premium grew 14.2% YoY, outpacing industry, with strong commercial and health lines. Profit before tax doubled, and combined ratio improved. Double-digit motor growth is expected for the year, with digital transformation and prudent risk management underway.