1. Opening Hook
Remember when insurance meant safety and not statistical gymnastics? Well, Chola MS just reminded investors that accounting methods can make even a flat quarter look like “strategic repositioning.” The 1/n accounting saga finally ends this quarter — no more “one-seventh truths” in premium recognition. 🎭
With crop losses, provisioning prudence, and a few reinsurance experiments tossed in, the management insists “things will look up from Q3.” Translation: they’re praying the GST cut on auto parts does what Excel macros couldn’t. Read on — it only gets spicier from here.
2. At a Glance
- Gross Written Premium – ₹2,221 Cr:Growth by adjustment, not adrenaline.
- Combined Ratio – 115.3%:Insured profits? Nope, insured pain.
- PBT – ₹266 Cr:Profit squeezed between provisioning and prudence.
- ROE – 6.2% (non-annualized):That’s not a typo, it’s a reality check.
- Investment Corpus – ₹18,380 Cr:Money’s growing faster than premiums.
- Motor Market Share – 5.3%:They drive carefully but profitability didn’t.
3. Management’s Key Commentary
“Growth in business will be visible from Q3 onwards.”(Translation: Q2 was a traffic jam; we’ll accelerate once the accounting fog clears.)
“Loss of ₹323 Cr crop insurance business impacted GDPI.”(Translation: We didn’t lose money, we lost the right to lose money.)
“Claims ratio at 81.9%, higher than last year due to prudence.”(Translation: We’re conservative—so conservative we provisioned our profits away 😏)
“Our reserving levels are 10% higher than peers.”(Translation: Everyone else is optimistic; we’re professionally paranoid.)
“Investment yield improved with more corporate bonds.”(Translation: Moved from sarkari safety to spicy returns—don’t worry, still AAA drama.)
“Expect ROE between 16–18% long term.”(Translation: Someday. Maybe. When CoR stops eating the alphabet soup.)
“GST cuts will help margins.”(Translation: Please let tax policy do what pricing discipline couldn’t.)
4. Numbers Decoded
| Metric | Q2FY26 | H1FY26 | Commentary |
|---|---|---|---|
| GDPI (₹ Cr) | 1,835 | 3,647 | Accounting twist finally ends |
| GWP (₹ Cr) | 2,221 | 4,217 | Boosted by reinsurance inflow |
| Claims Ratio | 81.9% | 81.5% | Up 2–3% YoY – prudence tax applied |
| Combined Ratio | 115.3% | 112.1% (adj.) | Still allergic to 100% |
| PBT (₹ Cr) | — | 266 | Margins gasping for breath |
| Solvency | 2.11x | Capital comfort ≠ capital efficiency | |
| ROE (non-ann.) | 6.2% | Barely breaking even with “prudence” | |
| AUM (₹ Cr) | 18,380 | More yield hunting, less thrill finding |
(Chola’s numbers look stable… like a patient in ICU hooked to reinsurance oxygen.)
5. Analyst Questions
Q:How’s auto growth after GST cuts?A:“Things are looking up.”(Translation: A 5.4% growth after a 1.5% degrowth in peers = celebration mode engaged.)
Q:Combined ratio still too high?A:“We provision more than others.”(Translation: We save for apocalypse while others party.)
Q:ROE dropped sharply—still aiming for 16–18%?A:“Yes, directionally.”(Translation: Directionally north, velocity unknown.)
Q:Why shift into corporate bonds?A:“Better yield, same safety.”(Translation: Government bonds are like dal—safe but boring.)
6. Guidance & Outlook
Management promises visibility “from Q3 onwards,” assuming no new curveballs. Crop business loss? “Digested.” GST cuts? “Helpful.” Auto sales momentum? “Encouraging.”
They’re banking on:
