Cholamandalam Financial Holdings Ltd.Insurance GWP +6.7%, CR 120.4%

Cholamandalam Financial Holdings held its Q1 FY27 call mainly on its general insurance investment, Chola MS. Chola MS reported gross written premium of ₹2,130 Cr, up 6.7%, and gross direct premium of ₹1,860 Cr, up 2.6%, below management's expectations as commercial lines fell 8.6% and health and motor were pressured.

Motor grew 5.7%. The combined ratio was 120.4% and the claims ratio 85.6%, hurt by motor reserve strengthening, elevated own-damage claims and a large ₹12.4 Cr fire loss, leaving an operating profit of ₹71 Cr and profit before tax of ₹116 Cr helped by ₹380 Cr of investment income. Management said the current motor own-damage loss ratio is not acceptable and aims to bring it below 80% over time. It took no provision for the Supreme Court homemaker compensation ruling, which is under review, and expects pricing discipline in property insurance after June's catastrophe events. The solvency ratio was 1.93 times, and Ind AS implementation is scheduled for April 2027.