Chola MS General Insurance elevates V Suryanarayanan as new MD

On the company's performance during the first quarter ending June 30, 2020, Gopalarathnam said they expect to record a degrowth following the nationwide COVID-19 enforced lockdown and added that conditions may improve from the third quarter onwards. "Q1,we (Chola MS) may be de-growing at around 14-15 per cent and industry's degrowth will be around 12-13 per cent...

(Eds: adding details) Chennai, June 30 (PTI): Cholamandalam MS General Insurance Company on Tuesday announced the appointment of V Suryanarayanan as its new Managing Director with effect from July 1. Suryanarayanan succeeds S S Gopalarathnam, who retires on Tuesday after serving the company for over 41 years, the city-based company said.

Cholamandalam MS General Insurance is a Joint Venture between diversified conglomerate Murugappa Group and Japan- based Mitsui Sumitomo Insurance Company Ltd. Suryanarayanan currently serves the company as its President and Chief Operating Officer and he will take over the new role on July 1.

Gopalarathnam said "after spending 41 years in Murugappa Group, last 19 years in Chola and 12 plus years in Chola MS as its MD and CEO, I will be retiring from service today." Commenting about his successor, he said "Suryanarayanan is an old veteran in the Murugappa Group and he came into Chola and has been in the company for 14 years. The last one year or so, he has been the president and COO. He is going to be the MD and CEO tomorrow".

On taking over the new responsibility, Suryanarayanan said it was an honour and privilege to take over the reins from Gopalarathnam. "The best edition of Murugappa Group and Chola MS shall continue even during my reign as the head of the company".

Gopalarathnam, a chartered accountant and company secretary, had joined the Murugappa Group in 1979 as a management trainee at TI Cycles and served in various capacities in finance and marketing functions. On the company's performance during the first quarter ending June 30, 2020, Gopalarathnam said they expect to record a degrowth following the nationwide COVID-19 enforced lockdown and added that conditions may improve from the third quarter onwards.

"Q1,we (Chola MS) may be de-growing at around 14-15 per cent and industry's degrowth will be around 12-13 per cent... We expect some kind of flattening in Q2.

Third quarter onwards we may expect some growth to happen. There is high possibility for motor insurance coming back to normal," he said. Gopalrathnam said the company's health insurance saw a good response for its COVID-19 related products.

On whether the company was looking at raising funds, he said there were no such plans for the current financial year. "Right now the solvency ratio (of the company) is at 1.70 and it is possible we may end up at 1.70-1.80 this financial year.

Therefore there is no need for capital for the current fiscal," he said..