Cholamandalam MS General Insurance Company (Chola MS) has reported a decline in its profit after tax (PAT) by 28.3% in the second quarter of the financial year 2025-26. The company’s PAT stood at Rs 119 crore in Q2 FY26, compared to Rs 166 crore in the corresponding quarter of the previous year.
The decline in PAT is attributed to a significant increase in claims and a rise in operating expenses. The company’s gross written premium (GWP) grew by 12.1% to Rs 2,441 crore in Q2 FY26, compared to Rs 2,177 crore in Q2 FY25. However, the growth in GWP was outpaced by a 24.1% increase in claims to Rs 1,664 crore, resulting in a decline in underwriting profit.
The company’s combined ratio, which is a measure of claims and expenses as a percentage of premium, deteriorated to 104.5% in Q2 FY26, compared to 97.4% in Q2 FY25. The increase in combined ratio was primarily due to a rise in claims ratio, which increased to 68.1% in Q2 FY26, compared to 61.4% in Q2 FY25.
Despite the decline in PAT, Chola MS reported a growth in its retail segment, with a 15.1% increase in GWP to Rs 1,441 crore in Q2 FY26. The company’s commercial lines segment also reported a growth of 8.5% in GWP to Rs 1,000 crore in Q2 FY26.
Chola MS has a strong distribution network with over 109 branches and more than 9,000 agents across the country. The company has also been investing in digital channels to increase its reach and improve customer experience.
The company’s managing director and CEO, V Suryanarayanan, stated that the decline in PAT was due to a one-time increase in claims and that the company is taking steps to improve its underwriting profitability. He also mentioned that the company is focusing on growing its retail segment and improving its digital capabilities to drive growth in the future.
Overall, while Chola MS reported a decline in PAT in Q2 FY26, the company’s growth in GWP and its strong distribution network are positives. The company’s focus on improving its underwriting profitability and investing in digital channels is expected to drive growth in the future. However, the company needs to be cautious about the rising claims and operating expenses, which could impact its profitability in the coming quarters.