MSIG to share its expertise and sales promotion techniques to help the JV grow its retail business
Mitsui Sumitomo Insurance group (MSIG), a Japanese insurance company, is willing to increase its equity capital in Cholamandalam MS General Insurance Company (Chola MS), its joint venture with the Murugappa Group – reported Economic Times. At present MSIG holds a 26% stake in the Indian company.
Chola MS has lifted its gross underwritten premium to INR6.8 billion in 2008-09, and at the same time scaled up its network to 113 offices. As a result, MSIG is pinning its hopes on the Indian market and expects the joint venture to become the biggest overseas firm in the near future – reported the newspaper.
Unfolding strategies for the JV at a press conference, Toshiaki Egashira, president and chief executive officer of MSIG, said: I am very much satisfied with the progress of our JV, which achieved a 30% growth in GWP in 2008-09, which is much beyond the average expected growth in the general insurance industry in India. While it achieved a 16% the first quarter of this year, it has been unexpectedly negative in Japan. If the Indian Government permits, we are willing to increase our capital investment in this joint venture company in the future.