Generalinsuranceofindia Ltd — Q2 FY26

General Insurance Corporation of India Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=u4bHz3Ux7As Published: 6 months ago

0:00 Ladies and gentlemen, good day and welcome to GICD Q2 FI26 earnings conference call. As a reminder, all 0:08 8 seconds participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:17 17 seconds you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that 0:25 25 seconds this conference is being recorded. I now hand the conference over to Miss Nikita Atri from EY. Thank you and over to you ma'am. 0:34 34 seconds Thank you Hamshad. Good afternoon to all the participants on the call and thanks for joining Q2 FY26 earnings call for General Insurance Corporation of India. 0:44 44 seconds Please note that we have mailed out the press release and presentation to everyone and you can now see the results on our website. It has been uploaded on 0:52 52 seconds the exchanges as well. In case you have not received the same, you can write to us and we'll be happy to send it over to 0:59 59 seconds you. Before we proceed with the call, let me remind you that the discussion may contain forward-looking statements that may involve known or unknown risks, 1:08 1 minute, 8 seconds uncertaintities, and other factors. It must be viewed in conjunction with our businesses that could cause future results, performances, or achievement to 1:16 1 minute, 16 seconds differ significantly from what is expressed or implied by such forward-looking statements. to take us through the results for the quarter and 1:23 1 minute, 23 seconds answer our questions. We have with us Mr. Hitesh Jooshi, executive director, additional charge of CMD and other top 1:30 1 minute, 30 seconds members of the management at GIC. We'll be starting the call with a brief overview of the quarter gone by which will then be followed by a Q&A session. 1:39 1 minute, 39 seconds With that said, I'll now hand over the call. Doshi, over to you, sir. Good morning, ladies and gentlemen. 1:48 1 minute, 48 seconds Thank you for joining today's earnings call. I welcome you all and I'm pleased to provide an overview of GIC's financial performance for the Q2 FY26. 2:00 2 minutes The global operating environment remains marked by macroeconomic uncertainty, inflationary pressures and heightened geopolitical risk. These factors along 2:09 2 minutes, 9 seconds with the growing incidence of climate related events continue to shape pricing conditions and capital deployment across the region sector. At the same time, 2:18 2 minutes, 18 seconds market softening in key lines and improving investment yields are contributing to a more balanced operating landscape. 2:25 2 minutes, 25 seconds Against this environment, GIC has maintained a disciplined approach anchored in selective underwriting, calibrated portfolio management and a 2:32 2 minutes, 32 seconds stable risk appetite posture. This is reflected in our Q2 FYI26 performance where the command ratio improved to 2:40 2 minutes, 40 seconds 109.15% yearonear reflecting firmer pricing and a more favorable claims experience in four segments. 2:50 2 minutes, 50 seconds Catastrophic events and secondary periods remain key focus areas and we continue to refine our models and exposure frameworks accordingly. 2:59 2 minutes, 59 seconds Supported by strong capital adequacy, robust risk systems and enhanced analytical capabilities, we are well positioned to manage cyclical shifts 3:08 3 minutes, 8 seconds while preserving long-term profitability. 3:11 3 minutes, 11 seconds With clear strategic priorities and disciplined execution, we remain confident in our ability to address evolving competitive landscape and 3:20 3 minutes, 20 seconds capitalize on emerging opportunities. We will now move to a review of our financial performance for the quarter followed by question and answer session. 3:27 3 minutes, 27 seconds Gross premium income for Q2 FI26 today rupes 9,601.70 cr compared to rups 8,413.49 3:37 3 minutes, 37 seconds cr in the corresponding quarter of the previous year. 3:41 3 minutes, 41 seconds Investment income for the quarter to date rupes 3,791.67 cr is compared to rups 3,483.32 3:50 3 minutes, 50 seconds cr. Income claim ratio for the quarter was 81.5% is against 93.6% in the corresponding quarter. 4:03 4 minutes, 3 seconds Common ratio stood at 109.15% compared to 114.05% 05% in the same quarter last year. Adjusted command 4:12 4 minutes, 12 seconds ratio was 84.04% for half year FI26 is against 88.86% in the previous year. 4:22 4 minutes, 22 seconds Profit before tax stood at rupes 3,472.76 cr or quarter 2 FY26 as compared to rups 4:30 4 minutes, 30 seconds 2281.812 cr. 4:34 4 minutes, 34 seconds Profit after tax rose to rups 2866.79 cr as compared to rups 1,860.75 4:43 4 minutes, 43 seconds cr. Solveny ratio improved to 3.85 as of September 25 compared to 3.42 as at September 24. 4:53 4 minutes, 53 seconds Net worth excluding fair value change was rupes 46,669.38 cr as at September and 25 as against 5:02 5 minutes, 2 seconds rups 39,481.33 cr as at September and 24 while net worth including fair value change stood 5:10 5 minutes, 10 seconds at rups 88,79.19 cr as at September and 25 compared to 5:16 5 minutes, 16 seconds rups 90,97.1770 cr on the premium breakup domestic premium 5:23 5 minutes, 23 seconds for first half FI26 is was rupes 17,80.666 crores and the international premium was 5:32 5 minutes, 32 seconds rupes 4,999.05 cr. The percentage split was domestic 78% and international 22%. 5:41 5 minutes, 41 seconds The domestic premium witnessed a growth of 4.6% while the international premium grew by 8 9.4%. 5:48 5 minutes, 48 seconds This quarter reaffirms the strength of our strategic direction and our disciplined approach to navigating marketing conditions. As we move 5:56 5 minutes, 56 seconds forward, we remain focused on executing our strategy with rigor and delivering sustainable value to our stakeholders. 6:04 6 minutes, 4 seconds Thank you. We can move to the question and answer session. 6:08 6 minutes, 8 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star 6:15 6 minutes, 15 seconds and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. 6:26 6 minutes, 26 seconds Ladies and gentlemen, we will wait for a moment while the question cube assembles. 6:33 6 minutes, 33 seconds The first question is from the line of MW Kim from JP Morgan. Please go ahead. 6:41 6 minutes, 41 seconds Thank you for the opportunity. This is MW Kim from JP Morgan. Uh I would like to ask about the company's capital 6:48 6 minutes, 48 seconds deployment plan for next 12 or the 24 months as suggested in the first half of 6:55 6 minutes, 55 seconds 26 underwriting performance for major non-life insurance. The domestic underwriting is approaching to the peak 7:02 7 minutes, 2 seconds of deterioration signaling potential for the premium highs in the motor and the headlines. The overseas market is 7:10 7 minutes, 10 seconds showing some softening but the riskreward profile remains attractive with a much lower combined ratio outlook 7:17 7 minutes, 17 seconds compared to the domestic market. So my question is what do you see as the optimal underwriting mix between 7:25 7 minutes, 25 seconds domestic and overseas business? So that's my first question. Um and my next question concerns the risk management. 7:35 7 minutes, 35 seconds Um recently the company got another the year of the the A minus rating from the 7:42 7 minutes, 42 seconds AM best indicate relatively strong capital base and good risk management practices. So compared to the last two 7:50 7 minutes, 50 seconds three years has the company made an improvement in its risk management approach. If this is the case can you 7:57 7 minutes, 57 seconds share a little bit more detail? And finally um the one more question is about the what are the company's 8:05 8 minutes, 5 seconds expectation for January 2026 linear season and the outlook for the global reinsurance pricing cycle. Thank you. 8:19 8 minutes, 19 seconds Thank you Kim. I will uh first talk about the optimum uh international domestic portfolio mix. 8:27 8 minutes, 27 seconds uh it is very difficult to say what is optimum because the uh pricing environment during last two to three year has been fairly dynamic. Indian market has its own pricing dynamism. 8:40 8 minutes, 40 seconds Uh from a medium to medium-term perspective, GIC's objective has been to achieve domestic 8:48 8 minutes, 48 seconds versus foreign of 60 to 40. That is what guidance we have been giving to the analyst and the market. But then we have 8:58 8 minutes, 58 seconds to recognize that Indian market is growing at a much better pace than the international market. And uh while there 9:05 9 minutes, 5 seconds there is a commonality in the reinsurance market, there is also something unique about the Indian market in terms of reinsurance price adequacy. 9:13 9 minutes, 13 seconds So we would choose to react to the price adequacy evaluation and our cycle management and our portfolio 9:20 9 minutes, 20 seconds optimization. Uh while we will try to move towards 6040, we would not be really drawn towards 6040 in a very 9:28 9 minutes, 28 seconds major way. we will continue to choose our way through risk selection to move in the this broader direction of 6040. 9:37 9 minutes, 37 seconds Your second question was regarding the improvements that we have carried out in our uh risk analysis. Uh we would like to say that it is a continuous process 9:46 9 minutes, 46 seconds as to how the loss trends are evolving whether it is in domestic market or regional market or international markets 9:53 9 minutes, 53 seconds also the additional versus cat and also uh the pricing trends. So whatever algorithms we have in our internal 10:02 10 minutes, 2 seconds pricing uh evaluation and pricing tools we keep on refining it. If you have anything more specific maybe we can uh 10:10 10 minutes, 10 seconds discuss it maybe we can take it offline as to what we are doing internally. 10:15 10 minutes, 15 seconds Coming to January 26th uh renewal uh given that we have we are coming off from the January 23 10:24 10 minutes, 24 seconds uh unprecedented hardening that the reinsurance market witnessed across the globe uh very very significant hardening 10:31 10 minutes, 31 seconds which was not witnessed in last at least maybe two to three decades. So coming from that huge I mean that huge price 10:38 10 minutes, 38 seconds correction the softening is going on at the same time we believe that uh underwriting discipline is being 10:45 10 minutes, 45 seconds maintained by the market. So there will be softening and there can be pockets where uh there can be a little divergent 10:54 10 minutes, 54 seconds trend and again the client experience the particular uh dose history of a client will be a major factor in how the 11:02 11 minutes, 2 seconds account will be treated. I hope I have answered and maybe you can have a follow-up question if you like. 11:09 11 minutes, 9 seconds Uh yeah, thank you so much for the detailed explanation. All answers are very helpful. Yeah, thank you. 11:16 11 minutes, 16 seconds Thank you. 11:18 11 minutes, 18 seconds Thank you ladies and gentlemen. In order to ask a question, you may press star and one. I 11:25 11 minutes, 25 seconds repeat, to ask a question, please press star and one. 11:30 11 minutes, 30 seconds The next question is from the line of Ainas Singh from MK Global. Please go ahead. 11:37 11 minutes, 37 seconds Yeah. Hi, good afternoon. A couple of questions sir. Uh the first one is if I look at life particularly domestic side 11:46 11 minutes, 46 seconds uh the combined ratio in this half is still 114 or percent. 11:51 11 minutes, 51 seconds Now is it an outcome of you know uh that uh the pricing environment 11:59 11 minutes, 59 seconds or is it due to maybe the payouts or some adverse kind of a development as far as mortality is concerned in this 12:08 12 minutes, 8 seconds year. that is on life because I mean uh at 114 115% and particularly when life is not something that you have been a 12:16 12 minutes, 16 seconds very very uh kind of a big this 114% looks a bit on the highest reasonably on the higher right so that's on life the 12:23 12 minutes, 23 seconds other question is on I mean if I mean uh this obligatory 12:30 12 minutes, 30 seconds season is to go I mean then uh how do you see your domestic business uh 12:37 12 minutes, 37 seconds resetting I I mean will there be a reset once and then you come back to normal growth or you are confident of kind of a 12:46 12 minutes, 46 seconds maintaining uh your current domestic business even if the obligatory safe and has to be abolished. Thank you. 12:56 12 minutes, 56 seconds Thank you G. Coming to the life that combined ratio that you are talking about 114 I think this has been touched 13:04 13 minutes, 4 seconds in quarter one also and it is thanks to the reserve strengthening and I will request Mr. Cindi to fill in the details. Who is our actuary for life? 13:16 13 minutes, 16 seconds Yeah. Hi. Uh uh are you audible? Yes. Yes, I can hear you sir. 13:23 13 minutes, 23 seconds Yeah. Uh so so good afternoon. Uh so I'm appointed actually live. Yes. So your concern is correct. It is you know 114%. 13:31 13 minutes, 31 seconds The primary reason is you know strengthening of you know our and last time also we discussed that and uh you will see a similar kind of trend you 13:39 13 minutes, 39 seconds know a loss of 100% in the coming two or three quarters. The reason being you know we you know price some of the products long time back and you know 13:48 13 minutes, 48 seconds postcoid we started doing the NRDS you know experience analysis so some of our businesses are not you know as per our expectation as per our what we estimated 13:57 13 minutes, 57 seconds the mortality. So obviously we have to strengthen our resource. So as far as if I go a little bit detail as far as earn 14:05 14 minutes, 5 seconds premium is concerned there is 11% growth uh compared to last year's because last year it was 880 crores around now it is 14:13 14 minutes, 13 seconds around 975 crores. Uh similarly as far as you know paid claims are concerned again there is a growth obviously we are writing more business so obviously we 14:21 14 minutes, 21 seconds are expecting more paid claims to be coming in. So why the ratio is going you know above 100%. The reason we you know we have started strengthening our 14:29 14 minutes, 29 seconds resource you know based on our experience and this will continue for you know we hope it will continue for another two or three quarters. Uh so 14:37 14 minutes, 37 seconds that's the main reason of loss issues being you know 114% for domestic business and sir if you can clarify the worse 14:46 14 minutes, 46 seconds mortality experience uh than your kind of a built-in or expectation is it 14:52 14 minutes, 52 seconds coming in uh you know uh retail uh protection or is it part of I mean you 14:59 14 minutes, 59 seconds know uh credit life or group protection uh so yeah so so again you know uh if If you 15:06 15 minutes, 6 seconds you know if we just go a little bit details again we just divide our business into a long-term business and a short-term business. So short-term 15:15 15 minutes, 15 seconds business obviously it is like a one-year term insurance kind of a business like a non-life business. Now here the main uh you know the reason is it is coming from 15:24 15 minutes, 24 seconds the long-term business. Now long-term means it's an individual kind of a business. For example, companies have been writing individual term insurance 15:31 15 minutes, 31 seconds and domain other kind of a plans. It's on a long-term basis. So we already you know gave those rates and obviously we expected that our experience would be 15:39 15 minutes, 39 seconds better but now we can't change it. That is number one. And when I'm talking about long-term you know it consist of not only long-term business individual but it consist of credit business also. 15:49 15 minutes, 49 seconds As you also know that credit life business it's a long-term business you know the term holdings from you know 5 years to 20 years. So obviously if we 15:56 15 minutes, 56 seconds combine both our experience has not been favorable so far. So obviously we don't have any other option rather you know uh 16:03 16 minutes, 3 seconds except uh strengthening our resource. So that's the main primary reason for that and this will continue for next you know 16:11 16 minutes, 11 seconds two or three quarters that is what we are expecting. Got it sir. Got it. Got it. Yes sir. 16:17 16 minutes, 17 seconds Ain G I come to your second question regarding obligatory. Uh the first we would like to say that it is not 16:25 16 minutes, 25 seconds expected that this entire obligatory would be removed by the regulatory in one go. That is the broad expectation. 16:32 16 minutes, 32 seconds Secondly, in view of the emerging IFRS and RBC regimes uh we can expect that there will be better capital planning 16:39 16 minutes, 39 seconds and deployment and uh uh usage of reinsurance by the market. So if any uh any any reduction in obligatory is 16:47 16 minutes, 47 seconds likely to result into diversion of business rather than uh say elimination of business for us some of it I mean 16:54 16 minutes, 54 seconds quite a substantial part of it may come to us on a voluntary basis. Apart from that uh as we have been mentioning that 17:02 17 minutes, 2 seconds since we got our rating restoration of a minus in October 24 which we could not fully avail of during our January 25 renewal which we hope to leverage during 17:11 17 minutes, 11 seconds January 26 renewal. So uh I think reset will be a very strong and harsh word to to frame the situation which might emerge due to any change in obligatory. 17:22 17 minutes, 22 seconds We are fairly confident that we will sail through smoothly uh due to any change in this. Thank you. 17:28 17 minutes, 28 seconds Got it. Got it. Okay. Thank you sir. All the best. 17:33 17 minutes, 33 seconds Thank you. The next question is from the line of Harsha from Misus Advisers. Please go ahead. 17:41 17 minutes, 41 seconds Good afternoon sir. Uh thank you for taking my question. Uh sir I would like to understand uh about your outlook on 17:50 17 minutes, 50 seconds different segments like where do you see fire uh and I wanted to specifically ask about health because of the reduction in 17:58 17 minutes, 58 seconds the GST. So how do you see the premiums coming in uh from health life going 18:04 18 minutes, 4 seconds forward and the your outlook in totality of gross premium that how do you expect the gross premium to grow in say next 18:14 18 minutes, 14 seconds two years ahead from now I would like to say that broadly our 18:21 18 minutes, 21 seconds growth in the segment should mirror the market growth to a great extent health is a class which uh doesn't necessarily 18:29 18 minutes, 29 seconds require reinsurance but there can be treaties which are trying to optimize the capital capital 18:36 18 minutes, 36 seconds structure of a particular insurance company. I will hand over to Mr. Sanjay Mukkashi our chief underwriting off 18:43 18 minutes, 43 seconds officer to talk in more detail. Uh yes uh Mr. Harsha this is Sanjay Mkashi here you asked about uh fire insurance. Yes. 18:54 18 minutes, 54 seconds Uh this particular component is a major component in our uh business uh business 18:59 18 minutes, 59 seconds mix. So uh uh our our growth will also uh depend upon uh uh fire fire segment 19:09 19 minutes, 9 seconds but it will come largely from the uh from the foreign fire. As Mr. Jooshi uh while answering previous question uh 19:18 19 minutes, 18 seconds mentioned that uh we got our rating restored to a minus by AM best last year. So uh uh we could not uh since the 19:28 19 minutes, 28 seconds rating was restored in October, we could not fully leverage that rating during last renewal season. But uh for 11 one 19:35 19 minutes, 35 seconds uh uh renewal season upcoming renewal season we are expecting uh we are expecting that uh we will see uh uh 19:44 19 minutes, 44 seconds growth. Of course this will be a measured growth. Uh there won't be any change in terms of our uh risk selection 19:51 19 minutes, 51 seconds or underwriting uh approach approach to it. Uh this also is a comment uh in 19:58 19 minutes, 58 seconds totality for what uh growth we are we are expecting. uh you mentioned about health and Mr. Zooshi uh mentioned that 20:07 20 minutes, 7 seconds uh uh health is going to be a driver of insurance growth in the domestic market but uh it may not essentially uh drive 20:15 20 minutes, 15 seconds our growth. It will entirely depend upon what kind of uh reinsurance requirement the insurance companies may have uh going forward. 20:26 20 minutes, 26 seconds Okay, understood sir. And uh how do you see combined ratio going forward sir? 20:30 20 minutes, 30 seconds Maybe FYI 20 can you give just a ballpark number of FY 26 27 I think whatever we have guidance given 20:39 20 minutes, 39 seconds earlier that broadly remains the direction we have chosen is maintained and we continue to stick to the same guidance 20:48 20 minutes, 48 seconds that would be all from my side thank you thank you thank you a reminder to all participants you may press star and one to ask a Question. 21:01 21 minutes, 1 second Ladies and gentlemen, to ask a question, please press star N1. Now 21:11 21 minutes, 11 seconds the next question is from the line of Karthik K, an individual investor. Please go ahead. 21:20 21 minutes, 20 seconds Hi. U thank you for the opportunity. Uh good afternoon to all. So I have like u couple of questions. uh one is see we 21:29 21 minutes, 29 seconds have uh you know good solveny ratio and our risk management uh everything has improved so what's the outlook I mean uh 21:38 21 minutes, 38 seconds is there any chance for upgrade going forward in the next year uh are you talking about upgrading our 21:47 21 minutes, 47 seconds credit rating from A to A plus yeah something like that yes I think it will be a while before we can 21:56 21 minutes, 56 seconds pitch for that because it involves say certain uh uh more stringent evaluation of the entire uh operations right from 22:05 22 minutes, 5 seconds say balance sheet to P&L to competitive position to the ERM framework. So uh going by where we stand today I think we 22:13 22 minutes, 13 seconds are decently positioned to avail of avail and exploit the opportunities available on the international business. 22:20 22 minutes, 20 seconds So presently it is not really a target for us because it requires as I said also higher capital adequacy. So uh the 22:29 22 minutes, 29 seconds the solvency that you are seeing is essentially based on the framework as prescribed by IRD which is a formula 22:35 22 minutes, 35 seconds based uh solveny calculation. If you really go to how the international credit credit rating agencies evaluate 22:44 22 minutes, 44 seconds the balance sheet they are already on a mark to mark basis. So, so while our solvency might materially change due to 22:52 22 minutes, 52 seconds our various operations, the underlying economics and driver of the riskbased capital doesn't show up so much volatility in our solvency. 23:03 23 minutes, 3 seconds So I I'm not sure whether I mean I have communicated adequately but the the point is that I formula is based on book 23:12 23 minutes, 12 seconds value and uh rating agencies already look at market value so they will not react to higher solveny as per the 23:19 23 minutes, 19 seconds domestic regulatory regime but if you include the fair value changes fair value of all the or market 23:28 23 minutes, 28 seconds holdings now the solveny will be much more higher right from current 3.85 85. 23:33 23 minutes, 33 seconds Absolutely that is from the Indian regulatory position and evaluation as per IDI uh regulations but rating 23:41 23 minutes, 41 seconds agencies are already factoring that in global rating agencies already factor in mark to market of the entire portfolio. 23:48 23 minutes, 48 seconds Okay. So even if we uh adopt the IFRS 117 and that's the new accounting standard. So even then we will not be 23:56 23 minutes, 56 seconds able to be uh you know gearing up for an upgrade. No, no. 24:02 24 minutes, 2 seconds Okay, that is all. Yeah, please go ahead. 24:09 24 minutes, 9 seconds No, you are saying something. I mean, all the factors as I said balance sheet, 24:16 24 minutes, 16 seconds P&L, competitive position and ERM framework are adequately factored in by the rating agency and that is independent of the local regulator evaluation. 24:26 24 minutes, 26 seconds Okay, got it sir. So uh the next question see we have uh increased the operation expenditure this this uh specific quarter and even for the half 24:35 24 minutes, 35 seconds year know any specific reasons for the increase I mean did we do any capital I mean any major expenditure for 24:43 24 minutes, 43 seconds no there is one particular yeahic yeah there is one particular demand on the value added tax from in a foreign 24:52 24 minutes, 52 seconds jurisdiction on our branch which we feel is absolutely unjustified and we are going into appeal. So that is the figure which is distort distorting uh to the 25:01 25 minutes, 1 second extent of something like 60 cr rupees that is jacking up our um to that extent. 25:09 25 minutes, 9 seconds Okay. Got it. Got it. 25:11 25 minutes, 11 seconds So it is a one-off thing and it will be appealed. 25:14 25 minutes, 14 seconds Okay. So uh last question I have is like the growth uh in terms of know the GST reduction all that. So where do we see 25:21 25 minutes, 21 seconds growth in the H2 I mean the later second half of the current financial year? 25:29 25 minutes, 29 seconds I would like to say that whatever GST impact is there is will be more visible more visible in the on the direct side 25:36 25 minutes, 36 seconds and uh it will be factored in there and whatever is the RA growth that we will be mirroring the RA growth of the market 25:44 25 minutes, 44 seconds broadly speaking okay so you're not expecting any bump or any uh increase uh this second half of 25:52 25 minutes, 52 seconds the year in terms of if there is a b if there is a bump in the direct side, it will definitely result into some domino effect on reinsurance side. 26:04 26 minutes, 4 seconds Okay. So, thank you and all the best. Thank you. Thank you. 26:11 26 minutes, 11 seconds Ladies and gentlemen, in order to ask a question, please press star and one. 26:15 26 minutes, 15 seconds Now, to ask a question, you may press star and one. 26:22 26 minutes, 22 seconds The next question is from the line of Dish Adwani from Reliance General Insurance. Please go ahead. 26:29 26 minutes, 29 seconds Um, hello sir. Actually, I wanted to know about the fair value change uh numbers for Qpm 26 versus QF2. 26:44 26 minutes, 44 seconds Change. Can can you can you make it more elaborate what exact? 26:49 26 minutes, 49 seconds Yeah, actually uh as in uh the net worth including fair value change what is that 26:56 26 minutes, 56 seconds for the current quarter or for the H1 U F26 27:05 27 minutes, 5 seconds like last year it was 40,117 uh odd kores for uh fair value change 27:14 27 minutes, 14 seconds for the quarter it is uh 42,39.82 82 cr okay 27:22 27 minutes, 22 seconds in that quarter end this is the figure 4239.82 8 to Okay. All right. Thank you. 27:33 27 minutes, 33 seconds Thank you. 27:36 27 minutes, 36 seconds Ladies and gentlemen, in order to ask a question, you may press star and one. 27:42 27 minutes, 42 seconds I repeat, to ask a question, please press star and one. Now 27:51 27 minutes, 51 seconds ladies and gentlemen, you may press star and one to ask a question. 28:00 28 minutes I repeat, to ask a question, please press star and one. 28:08 28 minutes, 8 seconds The next question is from the line of Kartiken K and individual investor. Please go ahead. 28:14 28 minutes, 14 seconds Sir uh one followup I mean that I have is like we have the commission right for this quarter has increased 28:21 28 minutes, 21 seconds uh so is it because of health uh improving I don't know the combined improving in the health is that the reason why the commissions increase 28:30 28 minutes, 30 seconds Mr. Moasi will respond thank you yeah Mr. Karthikan uh commission increase is not because of health. It is 28:38 28 minutes, 38 seconds actually because of uh some of the uh uh entries uh reversal entries or adjustment entries that we have carried 28:46 28 minutes, 46 seconds out during this uh quarter uh and also previous uh quarters but uh if you see they will get evened out uh during the 28:55 28 minutes, 55 seconds rest of the year that's that's uh in a way nature of our business and accounting. 29:01 29 minutes, 1 second Okay. So the the 25% uh premium uh that will not be showing up in the next coming quarters right that will get even out. 29:09 29 minutes, 9 seconds Yes. Yes. Please see Mr. Karthik the core core commission level doesn't fluctuate so much. It is the commission 29:18 29 minutes, 18 seconds entries on account of profit commission and sliding commission which is adjusted after a leg for a previous year that is booked in the current quarter. 29:27 29 minutes, 27 seconds So any volatility in that is not because of underlying business changes but because of certain accounting entries getting booked after a leg. 29:38 29 minutes, 38 seconds Got it sir. Thank you. Thank you. 29:42 29 minutes, 42 seconds Thank you ladies and gentlemen. In order to ask a question please press star N1. 29:50 29 minutes, 50 seconds The next question is on the line of Hersha from Meris' advisor. Please go ahead. 29:56 29 minutes, 56 seconds Uh sir just a followup question uh I just wanted to confirm that in I think in Q1 sorry Q4 FYI 25 you had guided for 30:06 30 minutes, 6 seconds 34% growth is that correct or I I'm mistaken here sorry I I didn't catch properly in Q4 of 30:15 30 minutes, 15 seconds FI25 you you have you have you guided for 34% here on your group for FI26 as well or 30:24 30 minutes, 24 seconds am I mistaken 34. 30:29 30 minutes, 29 seconds No, no, I don't think that kind of growth cannot be imagined. I mean that is uh No, you are saying 34%. Is it? 30:39 30 minutes, 39 seconds Yes. No. No. No way. 30:43 30 minutes, 43 seconds Okay. So, can you just uh provide a number sir here please? 30:50 30 minutes, 50 seconds See the thing is as we have been mentioning that uh as far as Indian market is concerned uh our growth will 30:57 30 minutes, 57 seconds mirror the growth of the Indian reinsurance market and uh what we talked about earlier that in October 24 we got a rating restoration so we'll be able to 31:06 31 minutes, 6 seconds leverage it so on a relatively say if I might use the word small base of say 22% of foreign business it might see a 31:13 31 minutes, 13 seconds double digit growth uh but then then that January their business will get booked over a period of next 6 to 8 quarters. 31:25 31 minutes, 25 seconds So it may not be so very visible even if there is a very very significant say growth 31:32 31 minutes, 32 seconds it takes time to get uh and it it it shows in accounting figure with a particular leg. Yeah. 31:39 31 minutes, 39 seconds Okay. Okay. Okay. That was very much helpful. Thank you sir. Thank you. Thank you. 31:45 31 minutes, 45 seconds Thank you. Ladies and gentlemen, in order to ask a question, you may press star and one. 31:53 31 minutes, 53 seconds I repeat, to ask a question, please press star and one. Now, 32:01 32 minutes, 1 second ladies and gentlemen, in order to ask a question, please press star and one. 32:10 32 minutes, 10 seconds As there are no further questions, I would like now like to hand the conference over to the management for closing comments. 32:18 32 minutes, 18 seconds Thank you all for being present for this call. As we have been mentioning that there are certain structural changes 32:24 32 minutes, 24 seconds which we embarked on following our uh rating downgrade in July 2020 and which bore fruit by way of a restoration of 32:33 32 minutes, 33 seconds rating in a period of just over four years. The same path that we have followed, we have charted out for ourselves in terms of underwriting 32:41 32 minutes, 41 seconds discipline, pricing, adequacy, portfolio rebalancing and cycle management. We'll continue to stick to this path which we which we are convinced given the 32:50 32 minutes, 50 seconds trajectory of the financial performance that we have witnessed during last four years. It is creating value. It will continue to create value and we'll keep 32:57 32 minutes, 57 seconds on evolving. We will keep on responding by way of evolution of our underwriting processes and we hope to deliver growing value. Thank you. 33:10 33 minutes, 10 seconds Thank you on behalf of EY that concludes this conference. Thank you for joining us.