Go Digit General Insurance Limited — Q2 FY26

Go Digit General Insurance Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=1fYtzeeAfAs Published: 6 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Go Digit Q2 FI26 earnings conference call hosted by ICICI 0:08 8 seconds Securities. As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions 0:15 15 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero 0:23 23 seconds on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. 0:30 30 seconds Anuman Dave from ICICI securities. Thank you and over to you sir. 0:35 35 seconds Thanks Aar. Uh good evening ladies and gentlemen. Uh it's a privilege to host the senior management team of god digit general insurance. I now hand over the 0:44 44 seconds call uh to uh chairman Mr. Pamesh Over to you sir. 0:50 50 seconds Thanks Anuman and uh good evening everyone for uh joining our conference call uh for the Q2 results. Uh as always 0:59 59 seconds we'll try and quickly go through the presentation and uh then we'll spend time on the question and answers. 1:08 1 minute, 8 seconds Uh I'm now on slide one. Uh the premium in H1 has been 5649 crores. Market share in uh overall is 3.4. 1:19 1 minute, 19 seconds Motor is 6.5. Product portfolio continues to be good. 1:25 1 minute, 25 seconds Now we we have added couple of products in this quarter. Policies issued 7.6 cr since inception. AUM have now increased 1:34 1 minute, 34 seconds to 21,345 cr and uh customer satisfaction score continues to be good. We'll speak about 1:42 1 minute, 42 seconds uh the figures relating to financial performance in a bit more detail. Moving to the next slide. 1:51 1 minute, 51 seconds In quarter two we have done a premium of 2667 cr and uh as you can see this uh 2:00 2 minutes with the asteric at the bottom uh this is on a 1 by n basis. If we do it without 1 by n last year quarter 2 was 2:09 2 minutes, 9 seconds without 1 by n then this number would be 2739 cr compared to 2369 cr of last year. uh 2:20 2 minutes, 20 seconds our premium retention ratio has in uh is 79.1%. Loss ratio this quarter of 73%. 2:29 2 minutes, 29 seconds Combined ratio this quarter is 111.4. 2:34 2 minutes, 34 seconds If we compare it to last year and we do it without 1 by n which is applicable in this quarter quarter 225 this was 2:43 2 minutes, 43 seconds without without 1 by n then the combined ratio was improved to 109.9 2:50 2 minutes, 50 seconds compared to 112.2 two of same quarter last year. Profit before tax have 2:57 2 minutes, 57 seconds increased to 136 cr compared to 89 crores while profit after tax uh this 3:05 3 minutes, 5 seconds year is 117 crores. Last year you might recall we did not pay any tax. So PBT 3:11 3 minutes, 11 seconds and PAT was the same. This 117 is at a tax rate of 14% 3:18 3 minutes, 18 seconds uh in uh which we expect to be for the entire year and uh next year onwards we'll move to the full tax rate of 25%. 3:28 3 minutes, 28 seconds This tax rate is also mentioned in our in the slide below. 3:35 3 minutes, 35 seconds Uh the average uh roe on the IGAP uh net worth is 2.8% 8% non-anualized. 3:43 3 minutes, 43 seconds The net worth has increased to 4290 cr compared to 3805 cr of last year. 3:53 3 minutes, 53 seconds Solveny ratio is 2.26 which has increased from 2.18 of same 3:59 3 minutes, 59 seconds quarter last year. This year if uh you look at the below comments we are making one new disclosure this year. As you 4:08 4 minutes, 8 seconds know we always disclose IFRS results audited uh based on suggestions coming in from some of you. We are also saying 4:16 4 minutes, 16 seconds that uh this year as of 30th September we had deferred acquisition cost post 4:23 4 minutes, 23 seconds tax of 178 crores. Uh what this basically means is that this profit 4:30 4 minutes, 30 seconds should uh this deferred acquisition cost uh which has already been incurred in ICAP and which is there in IFRS uh will 4:40 4 minutes, 40 seconds benefit the profit going forward. We expect 710 cr out of 178 cr uh would 4:50 4 minutes, 50 seconds actually unwind in H2 by way of uh benefiting the I gap results. Obviously 4:58 4 minutes, 58 seconds in FRS uh this would not really make a change. Now some other points uh 5:06 5 minutes, 6 seconds relating to growth etc. which um uh we can cover in the next slide. 5:15 5 minutes, 15 seconds So when we look at uh the growth rate this year a growth rate uh without 1 by n is 15.6%. 5:25 5 minutes, 25 seconds The industry grew by 10% on a without 1 by n basis and our growth rate is 12.6% 5:34 5 minutes, 34 seconds 6% uh on a 1 byN basis overall when we look at uh motor odi TP and I am now looking 5:44 5 minutes, 44 seconds at towards the right hand side uh GWP growth for Q226 and comparing it with the industry which 5:52 5 minutes, 52 seconds is the last column in the below table you would actually see that uh we have grown in every single line of business 6:01 6 minutes, 1 second uh OD 12.6 6 against 5.6 of in the industry TP 8.6 against industry 7.4 6:09 6 minutes, 9 seconds health travel NPA 36 against industries 9 fire is as you know we have been focusing on commercial lines this has 6:16 6 minutes, 16 seconds grown at 60.8% against industries 27.6% 6% others is 6:23 6 minutes, 23 seconds only an area where we have degrone uh at minus 19% compared to industries degrowth of minus5. 6:32 6 minutes, 32 seconds So gross return premium from that p [clears throat] perspective the growth and market share continues to 6:40 6 minutes, 40 seconds be good. Now when we look at uh overall in terms of uh the premium which we have 6:48 6 minutes, 48 seconds not accounted for in our books uh due to 1 by n uh is 136 crores and uh however 6:57 6 minutes, 57 seconds all acquisition cost has already been provided for. So I think uh you would recall that uh since last year itself 7:06 7 minutes, 6 seconds from October to December 24 quarter we have been uh deferring the premium but 7:14 7 minutes, 14 seconds all acquisition cost are provided in every quarter results. So there's really nothing uh which has not been provided 7:22 7 minutes, 22 seconds for the impact of on this on H1C would we say about 0.2% 2% in the acquisition cost. 7:33 7 minutes, 33 seconds when we are looking at uh in terms of various growth items uh private car 7:39 7 minutes, 39 seconds business we continue to uh do well and when we look at our o OD versus TP 7:46 7 minutes, 46 seconds bifurcation for the industry and for us last year this number was 37% OD uh for 7:54 7 minutes, 54 seconds us and 63% TP uh industry was 41% OD and 8:00 8 minutes 59 TP this Here we have moved to 38% OD and 62% TP. So 1% reduction in TP, 1% 8:10 8 minutes, 10 seconds increase in OD while industry continues to be 41 and 59. Just to remind that uh 8:16 8 minutes, 16 seconds first second quarter was uh from a private car perspective the sales were not that great and sales only picked up 8:24 8 minutes, 24 seconds from 22nd September onwards when the GST was 8:30 8 minutes, 30 seconds reduced and the uh uh Navatraas period started. Uh I may add here that our 8:38 8 minutes, 38 seconds market share in motor is now 6.2% 2% and this is the highest we have had for any 8:46 8 minutes, 46 seconds quarter since the start of the company roughly about 8 years back. In uh case 8:54 8 minutes, 54 seconds of new cars from September 22nd to say 24th of October our premium in new car 9:02 9 minutes, 2 seconds sales uh we actually have a growth of about 24%. 9:07 9 minutes, 7 seconds So private car segment and two-wheeler continues to do well. Another data point which I think motor uh I would want to 9:15 9 minutes, 15 seconds share uh with you is that our mix of private car, two-wheer and CV in this 9:21 9 minutes, 21 seconds quarter is 45% in private car 30% in two-wheeler and commercial vehicle is 25%. 9:30 9 minutes, 30 seconds two-wheeler business uh most of it comes from the new two-wheers and uh as everyone knows in case of new 9:38 9 minutes, 38 seconds two-wheeler business while commission for 5 years is provided up front uh the 9:46 9 minutes, 46 seconds uh premium earned is over a period of 5 years. So OD premium you earned you put in the net premium in the first year 9:53 9 minutes, 53 seconds itself you earn it in the first year but TP premium of the future years goes towards uh earning in the future. So uh 10:02 10 minutes, 2 seconds when we look at this mix uh in our uh knowledge uh out of motor business of 10:10 10 minutes, 10 seconds this scale or uh similar to the scale which we have no insurance company has a 10:16 10 minutes, 16 seconds mix of 30% in two-heer business. Now on one side it gives you the AUM from a uh 10:24 10 minutes, 24 seconds investment income perspective but because the fact that you earn much lower premium in the first year but you 10:31 10 minutes, 31 seconds provide for the commission for 5 years up front this obviously has a very major impact on the P&L. Uh when we look at 10:40 10 minutes, 40 seconds this quarter two compared to last year we have done 117 cr of more two-heer 10:47 10 minutes, 47 seconds business. So last year we did 334 crores in Q2 and two wheeler and uh this year we have done this is new two-heer 10:55 10 minutes, 55 seconds business only I'm talking about this year we have done 451 cr this additional 117 cr has impacted our P&L to an extent 11:05 11 minutes, 5 seconds of 53 cr of loss because the growth is so strong proportion of two wheeler is really strong this has impacted our 11:14 11 minutes, 14 seconds quarterly combined ratio by 2%. So the impact of two wheeler business and high 11:22 11 minutes, 22 seconds growth is something which is really really substantial and we obviously have a fairly high market share on an all 11:30 11 minutes, 30 seconds India basis in case of two-heer uh other business um I would uh if there 11:38 11 minutes, 38 seconds are any questions I would actually cover in more details fire commercial lines um like marine engineering and liability 11:46 11 minutes, 46 seconds all of them put together we have grown by about 53%, fire I have already explained we grew by about 60% more than 11:55 11 minutes, 55 seconds two times the industry leading to an overall growth rate of about 12.6% after 1 by n. 12:05 12 minutes, 5 seconds Now moving forward uh in terms of uh the 12:10 12 minutes, 10 seconds motor mix as such uh as we know that uh new vehicle sales in H1 at least till 12:19 12 minutes, 19 seconds 22nd September was not that great compared to previous year which also was not that great for new vehicle sales. Uh 12:26 12 minutes, 26 seconds our mix uh as I said is 45 for private car, 30 for two wheeler and 25 for CV. 12:34 12 minutes, 34 seconds As per our analysis, every increase of 1% of private car mix from two wheeler will reduce the company's co by 0.1. So 12:43 12 minutes, 43 seconds we just trying to give this color to basically say product mix plays a very very important role. uh in the Indian 12:52 12 minutes, 52 seconds P&L obviously things change substantially when you move to IFRS where uh two-wheeler business would 13:00 13 minutes actually because the commission which you're paying up front will get deferred over the policy period. So this is something we just wanted to bring this 13:08 13 minutes, 8 seconds across uh because as I said we are seeing very high growth in the two wheeler business which obviously under 13:16 13 minutes, 16 seconds Indian accounting puts uh pressure on the profitability. 13:21 13 minutes, 21 seconds Now moving to the next slide in terms of combined ratio I've already covered that uh if we compare like to like our 13:29 13 minutes, 29 seconds combined ratio last year was 112.2 2 this year without 1 byN it will be 109.9 13:37 13 minutes, 37 seconds with 1 byN it will be 111.4 good news is from October 25 onwards 13:44 13 minutes, 44 seconds everything will be on 1 byN basis so uh we don't really have to look at two three numbers separately claims ratio uh 13:52 13 minutes, 52 seconds here is 73% and uh overall expense ratio has reduced 14:00 14 minutes to 38.4 4 profit after tax in uh quarter. The 14:07 14 minutes, 7 seconds last uh here is 136 out of which 19 crores is for the tax and 117 crores is 14:15 14 minutes, 15 seconds the profit after tax. 14:20 14 minutes, 20 seconds Going further I'll cover loss ratios in a bit more detail uh as always in the next slide. I think when we look at uh 14:28 14 minutes, 28 seconds investments u the AUM growth continues to be good. 14:33 14 minutes, 33 seconds Our leverage has slightly increased from 4.9 to 5.0 14:40 14 minutes, 40 seconds and uh I think uh if you look at also our overall capital gains in Q2 our 14:47 14 minutes, 47 seconds capital gains on debt uh have only been 1 9 crores. Uh so when 1 uh uh 4 crores 14:58 14 minutes, 58 seconds which basically means our uh yield on the debt fixed income portfolio for the quarter is about 1.9%. 15:05 15 minutes, 5 seconds So the yield continues to be uh good here on the fixed income when we look at 15:13 15 minutes, 13 seconds and this also is a disclosure I think we are making for the first time it was on the first slide uh but I thought I'll 15:21 15 minutes, 21 seconds cover it here as of 30th September we have a unrealized gains of 677 cr uh out 15:28 15 minutes, 28 seconds of which equities 326 crores including uh AIF and 81 bonds and others uh sorry 15:36 15 minutes, 36 seconds on the fixed uh on the other than equity portfolio is 351. 15:41 15 minutes, 41 seconds Moving to the next slide in terms of uh asset allocation you can actually see that our asset allocation has increased 15:49 15 minutes, 49 seconds to 7.3% in pure equity 81 bonds is 10.6 six and uh all others continue to be 15:58 15 minutes, 58 seconds fixed income continues to be a very strong portfolio in terms of rating and sovereign bonds. So I think the point I 16:07 16 minutes, 7 seconds just want to highlight because this is something which uh we have continuously you know discussed in various calls last 16:14 16 minutes, 14 seconds year as of September 25 24 for last year uh period we actually had an equity of 16:22 16 minutes, 22 seconds about 2.4% 4%. This increased to 6.4% as of 31st March which has further increased to 7.3% as of September 25. 16:33 16 minutes, 33 seconds And I also mentioned that uh we have been in hindsight lucky that we have been able to increase the equity 16:40 16 minutes, 40 seconds allocation along with increasing the AUM and we still have uh decent amount of 16:49 16 minutes, 49 seconds unrealized uh equity gains. Uh so that really is the news on the uh asset 16:56 16 minutes, 56 seconds allocation and uh in terms of uh 81 bonds etc there is very little uh 17:04 17 minutes, 4 seconds movement compared to the previous now moving to the loss ratios uh here I think if you look at in OD 17:13 17 minutes, 13 seconds loss ratio in quarter 2 is 71.3 uh% if you look at uh quarter 4 loss ratio in motor OD was 70.5. 17:25 17 minutes, 25 seconds In quarter 2 of uh 2526 loss ratio is 71.3 which has uh impact of roughly about 30 17:34 17 minutes, 34 seconds crores due to various floods. Uh on YTD basis our loss ratio this year continues to be no D2P 70.3%. 17:43 17 minutes, 43 seconds Loss ratio of TP is uh more or less at par with last year. No, no real change 17:51 17 minutes, 51 seconds in terms of uh TP release uh compared to last year in uh both uh H1 last year and 18:02 18 minutes, 2 seconds H1 of this year the increase in uh TP release would be less than 3% or 4% in 18:11 18 minutes, 11 seconds TP release. So um loss ratios and uh the results are driven by a normalized sort 18:18 18 minutes, 18 seconds of a TP release as well as normal investment income without any major uh 18:25 18 minutes, 25 seconds contribution of the capital gains and this as you know is something we we keep looking at. Then we look at health 18:33 18 minutes, 33 seconds business here the loss ratios increased compared to the previous quarter of uh 18:41 18 minutes, 41 seconds Q2 on a yearly basis. If you look at FY25 was 83.8 and F126 is 83.9 [clears throat] 18:50 18 minutes, 50 seconds in this quarter uh we wrote some government uh health business which last year was in Q3 and this business obviously the loss ratio is 90 to 95%. 19:01 19 minutes, 1 second If uh we had not written this business this quarter then the health loss ratio uh for quarter 2 would have been 80.8%. 19:11 19 minutes, 11 seconds And uh as you know we have uh most of our health business comes from uh group business including large portion coming 19:20 19 minutes, 20 seconds in from employer employee. So if you look at our overall health loss ratio with this mix, I would say uh I think we 19:29 19 minutes, 29 seconds are doing fairly okay here. The fire loss ratio is slightly 19:36 19 minutes, 36 seconds uh more than last year but uh the fire earned premium in this quarter uh on is 19:44 19 minutes, 44 seconds about uh 30 crores and uh this also includes some three large losses which have come 19:52 19 minutes, 52 seconds but uh overall loss ratio I would say continues to be good. Engineering also 19:59 19 minutes, 59 seconds we had a uh one large flood claim which loss ratio has increased but in engineering business uh the earning of 20:07 20 minutes, 7 seconds premium is only for the installments you have received. The future premium will continue to come and that obviously is 20:15 20 minutes, 15 seconds not included here. So that really is on the on the loss ratio side. Now moving 20:22 20 minutes, 22 seconds to FRS earning. Uh now here as we have discussed a bit in the past we essentially look at IGAP results which 20:31 20 minutes, 31 seconds is given at the top then we basically look at uh deferred acquisition cost which is number four which is 204 if we 20:40 20 minutes, 40 seconds combine the two it comes to 500 and if we provide for a full tax of 25% on this 20:49 20 minutes, 49 seconds then in H1 the profit on this basis would have been 400 crores uh 400 And sorry 400 only 20:58 20 minutes, 58 seconds 400 crores. uh without obviously looking at uh this discounting impact or investment gains. Investment uh 21:06 21 minutes, 6 seconds obviously due to spike in yields uh the investment mark to market in uh fixed income has number is much lower and this 21:16 21 minutes, 16 seconds number as on date if you look at would have already gone up but as I said we always look at I gap profit plus the 21:24 21 minutes, 24 seconds effort acquisition provided with uh full tax which is coming as I said to about 21:30 21 minutes, 30 seconds 400 crores and uh that is how we look at this And as I also said earlier, our 21:37 21 minutes, 37 seconds total number on deferred acquisition cost is 178 crores as on date. This 21:44 21 minutes, 44 seconds obviously number will keep changing uh as we write new business and out of which 710 crores will get uh earned in 21:55 21 minutes, 55 seconds uh in H2 uh in terms of profit. So I'm just quickly seeing if there's any point 22:02 22 minutes, 2 seconds I have missed. Um otherwise I think we are good to go now and happy to take uh 22:10 22 minutes, 10 seconds any questions now. Thank you. 22:14 22 minutes, 14 seconds Thank you very much. We will now begin with the question and answer session. 22:19 22 minutes, 19 seconds Anyone who wishes to ask a question may press star and then one on their touchstone phone. 22:25 22 minutes, 25 seconds If you wish to remove yourself from the question queue, you may press star and two. 22:31 22 minutes, 31 seconds [clears throat and snorts] Participants are requested to use handsets while asking a question. 22:37 22 minutes, 37 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 22:41 22 minutes, 41 seconds Again, to register for a question, please press star and then one. 23:00 23 minutes Participants you may press star and then one to ask a question. 23:05 23 minutes, 5 seconds Our first question comes from the line of Sankit God from Aendas Park. Please go ahead. 23:11 23 minutes, 11 seconds Yeah, thank you for the opportunity. Uh so my my question is on motor OD uh given given uh 70% loss ratio in general 23:20 23 minutes, 20 seconds is higher compared to what we have historically reported. Now with the GST thing and new sales improving um IDV is 23:29 23 minutes, 29 seconds coming down uh naturally loss ratios will deteriorate. So, so just wanted to understand uh this 70%age what you 23:37 23 minutes, 37 seconds reported and if you chase new business new new vehicle sales how much this loss ratios further can can increase because 23:45 23 minutes, 45 seconds of IDV value and premium realization coming down and and the second thing or on and and and in related to that uh can 23:53 23 minutes, 53 seconds you tell me whether it will be ROE accretive still because of the advanced premium or or the float what you will get just just that's that's that's one 24:00 24 minutes first question on OD part and and second question is on TP um is that uh how much 24:07 24 minutes, 7 seconds exposure you have uh in the TP the 25 percentage of the business to uh to CVTP segment where where the GST cut has been 24:16 24 minutes, 16 seconds from from 12 to 5 and you have full input credit benefit so so how how do you see this to play out incrementally 24:24 24 minutes, 24 seconds for you so that's that's the second question and and lastly uh uh lastly uh on on uh the reinsurance accepted number 24:34 24 minutes, 34 seconds uh which seems to be 288 crores uh have declined year on year. Any any major segment like crop or government health 24:43 24 minutes, 43 seconds or something which which led to or or your fire getting recognized more in direct not in reinsurance accepted led to that decline and how do we see this number playing out? 24:54 24 minutes, 54 seconds Thanks and so I think on the OD side the impact is more on the new vehicles because uh the pricing uh at least in 25:02 25 minutes, 2 seconds digit we do is uh more related to the burn cost and not directly related to IDV because we translate this to IDV. Uh 25:11 25 minutes, 11 seconds obviously since uh the festival season was starting uh the pricing changes have not been done by anyone in the industry. 25:18 25 minutes, 18 seconds I think we will uh revisit this in now in uh November uh to see u that how much 25:26 25 minutes, 26 seconds the increase in volume has been and can that offset uh for the loss of the uh 25:33 25 minutes, 33 seconds premium due to lower IDV and that is something we'll visit. One thing which I may may may want to add sit is that our 25:41 25 minutes, 41 seconds mix is in private car changing substantially because uh we now have a fairly robust renewal book. So the 25:49 25 minutes, 49 seconds renewal contribution will keep on increasing as we go forward and uh that is why when I mentioned that our OD 25:57 25 minutes, 57 seconds market share is highest in Q2 is 6.2 two this is really driven more by renewals than anything else otherwise as you know 26:05 26 minutes, 5 seconds July August until 22nd September uh they were not really great months from a new business perspective I think on TP in 26:15 26 minutes, 15 seconds the commercial vehicle uh because we are getting anyway the full input credit uh the OD component in TP as you know in uh 26:23 26 minutes, 23 seconds CV is uh very very low I think uh it would be less than uh 13% most of the premium is uh actually TP. So we don't 26:32 26 minutes, 32 seconds really see any major impact coming in from the uh from the drop uh in the GST. And we 26:41 26 minutes, 41 seconds also need to keep in mind that uh the TP the CV business is more renewals uh and 26:48 26 minutes, 48 seconds lower business rather than new vehicles where again it is the pricing is done more on a burn cost basis rather than 26:56 26 minutes, 56 seconds linking directly to the CV uh to the IDV and in older vehicles the OD premium 27:03 27 minutes, 3 seconds would be in single digit depending upon what kind of a vehicle. Now in reinsurance I think uh we have always 27:10 27 minutes, 10 seconds said that uh this business is done on a facultative basis which basically means that we have to see every single risk 27:18 27 minutes, 18 seconds and uh then actually see whether the pricing makes sense or not. It is very difficult for us to uh I would say 27:26 27 minutes, 26 seconds anticipate what this number will be going forward. But all I can um um assure uh you is that uh this business 27:36 27 minutes, 36 seconds will always be like written like the way we write direct business on a case-to-pace basis and we don't drive this business from a target perspective. 27:45 27 minutes, 45 seconds So this number has reduced as we grow more on the direct side especially on the retail commercial uh as the 27:53 27 minutes, 53 seconds distribution has now uh become fairly good and we uh we expect it to improve further. I think uh the the component of 28:02 28 minutes, 2 seconds retail in commercial lines will actually increase uh which automatically means that direct side of the business will 28:10 28 minutes, 10 seconds keep increasing. Um have I answered Shank all your three questions? 28:17 28 minutes, 17 seconds Yeah. Uh yeah. Uh it's understood. And and lastly if I can squeeze one uh see the opex trajectory seems to be uh means 28:25 28 minutes, 25 seconds absolute cost seems to be coming down um uh yearon year for every quarter. Uh at least I see that benefited your numbers 28:33 28 minutes, 33 seconds even in the current quarter. So, so, so just wanted to understand that uh 207 crores of optics what you reported uh I 28:42 28 minutes, 42 seconds mean is this trajectory of of decline in the optics will will continue and and if that is the case then what is the likelihood of the combined we can see 28:50 28 minutes, 50 seconds for the full year or or or you have any target in your number in your mind to to deliver in the current year. 28:56 28 minutes, 56 seconds So Shank as you know we don't give any forward guidance but what I can definitely say is that um as um I would 29:05 29 minutes, 5 seconds say as we are growing we obviously continue to invest heavily on the tech piece and uh the benefit of that then 29:12 29 minutes, 12 seconds translates into [clears throat] lower uh expenses because of higher productivity. 29:18 29 minutes, 18 seconds So I think uh the same philosophy will continue. uh we obviously uh would want to launch more and more product lines or 29:27 29 minutes, 27 seconds channels wherever we see opportunity but uh based on where we are all I can say is we don't see any sub any increase or 29:35 29 minutes, 35 seconds any major change in H2 on the management expense side uh so what will it be in 29:42 29 minutes, 42 seconds next year etc I think uh you are more intelligent than we are in building this into the model so I I'll leave that to you 29:50 29 minutes, 50 seconds okay Kavisha thanks Thanks for your answers. That's it for me sir. 29:55 29 minutes, 55 seconds Thank you. Our next question comes from the line of Rishies Tucker from Valuequest Investment Advisors. Please go ahead. 30:04 30 minutes, 4 seconds Yeah, thanks. Uh this is Aner from Valuequest. Uh couple of things team uh and congratulations on a good set of numbers. 30:12 30 minutes, 12 seconds on the growth outlook going ahead right so with the pick up in new sales that we've seen for the past month or so and with the reports of you know health 30:20 30 minutes, 20 seconds insurance growth also increasing uh do you see that going ahead growth for industry materially improving and 30:27 30 minutes, 27 seconds thereby our growth uh materially improving in in the times to come. 30:34 30 minutes, 34 seconds So Anurut I would say that um I think the MAC indicators are uh if you look at definitely on the motor side uh and 30:43 30 minutes, 43 seconds hopefully on theme side that uh also to credit loans etc that uh the growth in 30:51 30 minutes, 51 seconds H2 should be better than H1 that is macro sense we have say and u I'm sure you guys also track this much more 30:59 30 minutes, 59 seconds closely than we do so I also feel we also feel that under the new north uh motor vehicle act 31:08 31 minutes, 8 seconds uh north has actually suggested that the TP hike me rate hike actually go back to 31:15 31 minutes, 15 seconds uh if that happens that obviously also will be a um good uh news because as we 31:23 31 minutes, 23 seconds know ID has indicated in the recent some increase in the TP rates which we haven't really seen so based on 31:31 31 minutes, 31 seconds macroeconomy what is happening on motor DP etc. I think uh we definitely expect 31:39 31 minutes, 39 seconds to be better in terms of growth for the industry compared to what it has been 31:47 31 minutes, 47 seconds say in H1, right? And uh what would that mean for competitive intensity going ahead? 31:54 31 minutes, 54 seconds Right? Because intensity seems to have been fairly high even from the PSU front and all over the last few months. But if overall industry growth improves does 32:03 32 minutes, 3 seconds that mean that there should be some ebing of intensity and thereby benefiting players like us? 32:10 32 minutes, 10 seconds So the way we see it is that no u we have been seeing this massive market uh 32:17 32 minutes, 17 seconds competition in in u intensity in the last four five years four years now already postco and I think if you look 32:26 32 minutes, 26 seconds at uh our actual performance we normally have grown faster than the industry and uh overall profitability whether you 32:33 32 minutes, 33 seconds look at in terms of roe look at in terms of loss ratios we already covered operational expenses etc missions are 32:40 32 minutes, 40 seconds obviously driven more from the market side. Uh we we we are okay at this stage. We don't really worry too much 32:48 32 minutes, 48 seconds about uh what is happening because uh some things are not in your hands but how you react to is in your hands and 32:55 32 minutes, 55 seconds you don't have to really listen to what I am saying. You just see what our management has really delivered in the last four years. uh especially on uh 33:04 33 minutes, 4 seconds without any hike in TP rates. um lower new vehicle sales uh car sales especially in the last 2 years uh 33:14 33 minutes, 14 seconds intense pricing competition in fire last year in the first 9 months and so I think uh all of that will continue to 33:23 33 minutes, 23 seconds happen and uh we have to do what we have to do but uh if you ask my personal opinion I would say the roe of the 33:32 33 minutes, 32 seconds industry has been deteriorating in our 15th February uh invest meet and the deck was also uploaded. We had actually 33:40 33 minutes, 40 seconds shown that lot of players in the industry have been depending upon massive TP increase uh TP reserve 33:46 33 minutes, 46 seconds release and also massive capital gains uh which they were realizing which is helping them on the profit side. If you look at our case, I think last year there was hardly any capital gains. 33:58 33 minutes, 58 seconds Obviously not much capital gains motor released this year is just as I said in 34:04 34 minutes, 4 seconds H1 2 3% more than uh last year. So we will continue to drive uh growth 34:12 34 minutes, 12 seconds wherever uh we see an opportunity and also look at uh core profitability which is not driven by either of the two 34:20 34 minutes, 20 seconds things and I would say one of the examples I look at our motor overall 34:26 34 minutes, 26 seconds business in say quarter 2 is 55% of the gross premium if you go back four years motor used to be 75%. 34:36 34 minutes, 36 seconds Out of 75% commercial vehicle be two is 50% of the overall premium. Now 34:42 34 minutes, 42 seconds commercial vehicle is 25% of motor of 55. So if you see it from that perspective from 45% of gross return 34:51 34 minutes, 51 seconds premium CV has actually now fallen close to about 17 to 18% in gross return premium. So the way we can move uh from 35:01 35 minutes, 1 second one product line to another uh I think is uh something which you can actually see. Second point I would say in fire 35:08 35 minutes, 8 seconds and commercial lines uh marine liability and fire as I said we are growing by more than 50%. 35:16 35 minutes, 16 seconds uh so that number also is looking good and in health despite having 70% of the 35:23 35 minutes, 23 seconds premium coming in from employer employee if we exclude the government health business in Q2 a loss would have been 35:30 35 minutes, 30 seconds 80.8 date and uh put this mix that I just said and any insurance company will 35:37 35 minutes, 37 seconds actually say their loss ratio will be much more than what it is for us. So we will continue to drive ourselves in this 35:44 35 minutes, 44 seconds direction. Not really worry too much but uh hope is that based on what I just explained looking at from where the 35:52 35 minutes, 52 seconds profits are coming my sense is that uh uh pricing has to improve as we go forward. 36:00 36 minutes Got it. Thanks. Uh last question was on this 700 crores of defer acquisition cost benefit that you mentioned in H2. 36:08 36 minutes, 8 seconds What would that comparable number be for last year? H2. We didn't really declare this last year. 36:14 36 minutes, 14 seconds I think we only declared this on now. U so I don't have this number and uh we 36:20 36 minutes, 20 seconds will going forward. Uh no, we will declare this but maybe you may want to connect to our investor team uh offline 36:28 36 minutes, 28 seconds to to see what this number is. But uh going forward we obviously will be declaring this every quarter and as I 36:36 36 minutes, 36 seconds said this has come uh from uh suggestion from some of you and also we felt that this is a very good bridge to IFRS 36:44 36 minutes, 44 seconds results in terms of what the profitability is. 36:48 36 minutes, 48 seconds Right. Right. Perfect. Sure. Uh thanks a lot and all the best. Thank you. 36:54 36 minutes, 54 seconds Thank you. Our next question comes from the line of Dish Punjabi from Banyan Tree Advisers. Please go ahead. 37:01 37 minutes, 1 second Uh yeah hi thanks for the opportunity. 37:03 37 minutes, 3 seconds Uh my first question was on motor OD in the two-heer segment. Uh like you mentioned we have been doing well over there and market share has been increasing. It's like 30% of the book. 37:14 37 minutes, 14 seconds So can you talk about the uh levers that have led to this like in terms of the product or pricing uh distribution or whatever else it may be. 37:25 37 minutes, 25 seconds So I would say I think um one obviously is that the on the distribution side u uh things have been um uh expanding we 37:34 37 minutes, 34 seconds are continuously expanding. I think on the uh OEM side in private car uh some of our partners have moved to direct price fetching some of them have not. 37:45 37 minutes, 45 seconds Wherever I think uh direct price fetching has taken place we have seen improvement in our uh market share there. uh two-heer business I think 37:54 37 minutes, 54 seconds because we have been very consistently building this over a longer period I think uh we we keep on adding more and 38:01 38 minutes, 1 second more partners uh more importantly as I as I said earlier and I just want to 38:08 38 minutes, 8 seconds repeat it private car portfolio really is driven through renewals and last year 38:14 38 minutes, 14 seconds if you recall October and November so the sher was in October navatras Diwali was in November 38:22 38 minutes, 22 seconds There was very massive sales in these two months. We have a very strong base coming in from there. So renewals are 38:31 38 minutes, 31 seconds continuously now increasing in importance for us. So that also helps us to to improve and increase our market 38:40 38 minutes, 40 seconds share. Uh our agency and retail business also in motor is doing quite well. uh and uh that obviously helps also because it also has a very high renewal ratio. 38:53 38 minutes, 53 seconds So it's really a mix of renewals, some pricing in private car with OEMs which who have gone on direct price stretching 39:01 39 minutes, 1 second and uh expanding distribution network uh in OEMs both for two-wheeler and four-wheeler. 39:09 39 minutes, 9 seconds Sure. I just had two more questions. Uh one was regarding the group health segment. uh how are how is the pricing intensity over there right now uh is it 39:18 39 minutes, 18 seconds has it improved and second is uh like if the impact of the 1,700 crores of deferred acquisition can be quantified 39:27 39 minutes, 27 seconds to the P&L uh for H2 uh that would be very helpful. 39:32 39 minutes, 32 seconds So I already said that 710 crores out of 1700 crores will unwind in H2. Uh I 39:39 39 minutes, 39 seconds think on the pricing side um maybe September was slightly better in uh group health. Uh but uh I would not 39:48 39 minutes, 48 seconds really say that the pricing has substantially improved. Uh and that obviously also shows in the loss ratios 39:56 39 minutes, 56 seconds of all the companies. U I think on the employer employee we we would still not be growing compared to last year and uh 40:05 40 minutes, 5 seconds last year we obviously had degrone. So uh but again I think uh as a overall premium this would become hopefully this 40:13 40 minutes, 13 seconds year 18 to 20% of the gross return premium of the industry. So if the loss ratios continue to go up and you have 40:22 40 minutes, 22 seconds also seen in the industry uh lot of companies which were benefiting with old tariffs with the hospitals lot of that 40:29 40 minutes, 29 seconds also getting revised. uh our sense is that uh uh loss ratios which people 40:36 40 minutes, 36 seconds expect will follow in health u it might not be that if the tariff rates increase are happening because for a lot of 40:44 40 minutes, 44 seconds companies tariffs are getting increased after 3 4 years. So uh we feel that uh 40:50 40 minutes, 50 seconds group health should really see some increase in pricing and uh as and when that happens then we of course would be 40:58 40 minutes, 58 seconds delighted to increase our uh market share in that segment. Thank you that was very helpful. 41:07 41 minutes, 7 seconds Thank you. 41:09 41 minutes, 9 seconds Thank you. Our next question comes from the line of Nidesh from Invest. Please go ahead. Uh thanks for the opportunity. 41:18 41 minutes, 18 seconds So my question is on motor OD. So in motor OD we have seen our loss ratios have increased uh which you have explained the share of uh renewal. 41:27 41 minutes, 27 seconds Uh so in future also as a share of renewal business is expected to further go up. Do you expect further increase in loss ratios? 41:36 41 minutes, 36 seconds Uh so I think Nesh has know we have already always said that we basically look at loss ratio and acquisition cost 41:44 41 minutes, 44 seconds together. So in new as we as everyone knows in new cars the acquisition cost is fairly high uh but loss ratios are 41:52 41 minutes, 52 seconds much lower. In case of renewals acquisition cost is lower but loss ratio would be a bit higher. When we put both 42:00 42 minutes of them together uh the way we drive ourselves is that on that basis we are actually doing fine. 42:09 42 minutes, 9 seconds Now whether the mix will change or not I would say that we should all of us are hoping and I already said that we expect 42:17 42 minutes, 17 seconds in H2 new vehicle sales to be better than what it was in H1 and if that happens then obviously the mix could be 42:25 42 minutes, 25 seconds more towards new vehicles uh compared to non-new vehicles OD premium uh because 42:32 42 minutes, 32 seconds as I already said that first half things were not really know that good secondly I think uh OD claims can also nit be 42:40 42 minutes, 40 seconds very uh seasonal and uh if I just look at and this is just making a um a comment uh for the month of say October. 42:50 42 minutes, 50 seconds If you look at October number of OD claims compared to September say for digit uh we have actually seen a 42:57 42 minutes, 57 seconds reduction in uh number of claims by roughly about 10 11%. 43:02 43 minutes, 2 seconds So there will always be a bit of a seasonality uh both in terms [clears throat] of claims which are driven more by flood or May which 43:11 43 minutes, 11 seconds typically is a holiday period where we see very high number of claims and also what the new vehicle sales will be like. 43:19 43 minutes, 19 seconds So one can't uh in in our view assessment one cannot put all of these into some sort of a projection to say what is likely to happen in Q3 and Q4. 43:30 43 minutes, 30 seconds Personally, if you ask us, we would be happy that if new business share increase because we want the economy to do well, we want to write more new vehicle business. So, we would not want 43:38 43 minutes, 38 seconds to be in a situation where new vehicles continues to suffer uh and we are happy writing more renewals. 43:46 43 minutes, 46 seconds Yes, sure. Sure. And uh can you explain what uh what steps you are taking on the claims front in the in the motor 43:53 43 minutes, 53 seconds business uh in terms of garage network etc. and uh because some of their peers are sharing data that how much of the 44:01 44 minutes, 1 second claims are getting adjusted through their preferred guid network. So if you can speak about the steps that you are taking on the claims claims front 44:09 44 minutes, 9 seconds I would not try and tell you how we cook the meal just look at the loss ratio and 44:16 44 minutes, 16 seconds you assume we do nothing compare our loss ratios in ODI with whichever companies who are doing all this steering and discounting and all that 44:25 44 minutes, 25 seconds stuff. We have seen this story play on the health side. Maybe motor is the is the new my co is telling me not to say all this. 44:35 44 minutes, 35 seconds So I would say nitro whether we look at fraud uh as an example and we covered that in detail in February. Uh I think 44:44 44 minutes, 44 seconds network obviously we have much more heft in network because as I said earlier our non-deer channel business is also 44:52 44 minutes, 52 seconds increasing. So all these things you have to continuously do. Continuously means continuously. I can even tell you we 45:00 45 minutes track on a daily basis number of claims in OD seen by a loss assessor. We have 45:07 45 minutes, 7 seconds this productivity on a daily basis. So all these details which we get into then it lead to that sort of a outcome uh 45:16 45 minutes, 16 seconds which know all of us want and we obviously want to continuously improve but I our nature is not our philosophy 45:23 45 minutes, 23 seconds has not been to unnecessarily you know speak about some of these things we try and cover this some of these areas in our annual meet and we'll we'll 45:31 45 minutes, 31 seconds obviously cover that but all these things happen on a continuous basis and everything is tracked by the management 45:38 45 minutes, 38 seconds Sure sir. Very helpful. That's it from my side. Thank you. Thank you. 45:46 45 minutes, 46 seconds Thank you. Our next question comes from the line of Deepen Goo from Cityi. Please go ahead. 45:52 45 minutes, 52 seconds Hi. Uh good evening everyone. So a few questions from my side. Uh first you mentioned that the uh nonmp employer 45:59 45 minutes, 59 seconds employee mix within group is like 70% currently. uh if I recall correctly it used to be more like um uh 80 80 sorry 46:08 46 minutes, 8 seconds the employer employee mix is like 70% currently if I recall correctly it used to be like uh 80 85% few quarters back 46:15 46 minutes, 15 seconds so given that your non-employed employee has increased um just wanted to understand despite that the uh claims 46:23 46 minutes, 23 seconds ratio on the health part excluding the government business is more like stable yi so just you know in the employer employee business uh given your uh focus 46:32 46 minutes, 32 seconds focus on more small businesses and corporates. Uh how has the loss ratio been trending in that uh part of the segment? Just want to get some clar on 46:41 46 minutes, 41 seconds that. Uh second uh at the start of the call you mentioned your motor business growth since uh or rather post GST cuts. 46:50 46 minutes, 50 seconds uh but if you were to compare let's say uh festive to festive on an apples to apples basis um uh can you give some 46:57 46 minutes, 57 seconds color on how the growth rate would be in that case uh across the auspicious um dates and lastly uh in terms of the 47:07 47 minutes, 7 seconds motor mix you mentioned just wanted to clarify is it for the second quarter or first half and if you can give the corresponding data point for the last uh 47:16 47 minutes, 16 seconds year's base what Oh sorry what is the last question thean I didn't uh 47:23 47 minutes, 23 seconds yes sir you mentioned the motor mix between PV two wheeler and CV so just wanted to understand if it's for 2Q or 1 47:30 47 minutes, 30 seconds and the same for the last year sure so last year it was 41% in private car which has increased to 45 47:39 47 minutes, 39 seconds was 27% last year which is increased to 30 and in CV it was 32% last year in this quarter I'm only giving Q2 figures which is reduced to 25% this year. 47:52 47 minutes, 52 seconds Now in terms of new motor business, uh I would just maybe want to remind everyone that September 24 we actually had shroud 48:01 48 minutes, 1 second during this period. Navaratras and Dasher was in October and if Diwali I remember off hand was in 4th of 48:08 48 minutes, 8 seconds November. So basically we should not be looking at September to September numbers because last year was a bit 48:16 48 minutes, 16 seconds different from that perspective. Now having said this when we are looking at the vehicle sales post 22nd September 48:24 48 minutes, 24 seconds new vehicle sales and lot of this moan data is also available uh because we have to look at retail sales and not really look at sales which the 48:32 48 minutes, 32 seconds manufacturers or it is coming from the OEMs no we are not looking at the dealer billing we are looking at wan 48:39 48 minutes, 39 seconds registrations so two-heer has been very strong even if we look at October to October comparison this year number of 48:46 48 minutes, 46 seconds two wheeler sales have been very good and two-wheeler sales even in the H1 were pretty decent. When we look at 48:53 48 minutes, 53 seconds private cars in terms of number of units there is one big difference which we are seeing and it is expected to continue 49:01 49 minutes, 1 second that last year post Diwali the sales had dipped a lot. This year when we talk to dealers and everyone lot of cases the 49:10 49 minutes, 10 seconds inventory is also not there for some of the models which are highly sought. So the expectation from the dealers and 49:17 49 minutes, 17 seconds everyone is that the next 3 4 days also will be very strong and people expect that the existing deliveries will 49:25 49 minutes, 25 seconds continue till 7th of November. So we should ideally compare two wheelers 49:31 49 minutes, 31 seconds festival period of last year for this year at least till 7th or 10th of November rather than know just look at 49:40 49 minutes, 40 seconds at this period because of the reasons I I have mentioned. Now coming to non-employer employee uh I would say 49:48 49 minutes, 48 seconds that it used to be as you said it used to be higher. It has reduced. It's a mix of both uh reasons that uh non-employer 49:57 49 minutes, 57 seconds employees actually growing uh decently while uh the other business is uh the 50:04 50 minutes, 4 seconds employer employees not seeing that sort of a growth. However, one would not I would not suggest the pangjan to see it 50:12 50 minutes, 12 seconds on a quarterbyquarter basis but one should see it more on a YTD basis. Uh but uh and also in non-employer employee 50:20 50 minutes, 20 seconds because of one by we obviously cannot book all the business. So that benefit also doesn't really flow in in the combined ratio. 50:31 50 minutes, 31 seconds Got it. Got it. Uh thank you sir and all the best. Thanks Aanjan. 50:37 50 minutes, 37 seconds Thank you. Our next question comes from the line of Vinod Rajamani from Nirmal Blank. Please go ahead. The uh uh thank 50:45 50 minutes, 45 seconds you for the opportunity. I had uh two questions more at an industry level. So uh the uh if I look at the sales of uh 50:53 50 minutes, 53 seconds vehicles uh I know it's it's early days yet but uh uh the proportion of uh you know the um uh the EV vehicles whether 51:02 51 minutes, 2 seconds we the uh ICE vehicles has been rising uh this might be a this might be a larger it may have a it may have played 51:10 51 minutes, 10 seconds out more in terms of two wheelers but even in four-wheelers uh even in passenger vehicles there is this slight 51:17 51 minutes, 17 seconds you know this increase in uh in um uh EV vehicles and the the issue with EV vehicles which the loss assessor say is 51:25 51 minutes, 25 seconds that there is a greater probability of uh you know total loss because it's completely sensor based and so on visav 51:32 51 minutes, 32 seconds say uh say uh the uh ice vehicles. So uh if this trend continues uh of you know uh the proportion of uh say uh ICE 51:41 51 minutes, 41 seconds vehicles reducing uh do you think the industry is kind of equipped in terms of pricing because uh know the there is a 51:48 51 minutes, 48 seconds greater chance of uh total loss in terms of uh and and and also the number of moving parts are less so uh there would 51:55 51 minutes, 55 seconds be uh lesser spare parts and so on. So uh with regard to say uh EV that that is question number one. So my question is 52:04 52 minutes, 4 seconds more at an industry level. Do you think the industry is pricing this well? Uh the second is on this uh health uh with 52:11 52 minutes, 11 seconds this CGHS kind of ruling happening uh the price rationalization as far as CGHS is concerned. Uh do you think the um the 52:19 52 minutes, 19 seconds uh health group say employer employee could benefit uh in terms of uh lesser kind of uh you know uh lesser issues uh 52:29 52 minutes, 29 seconds as far as hospitals are concerned. So that these are the two questions I have. 52:34 52 minutes, 34 seconds Thanks Vinote. So I think u you have u I would say uh explained the challenges in electric vehicles well. I think in uh 52:43 52 minutes, 43 seconds two wheeler if you look at new two wheelers have 5 years of TP and one year of OD and the OD premium itself is much lower uh in percentage or in proportion. 52:54 52 minutes, 54 seconds So two wheeler is something where it is lot more manageable. 52:58 52 minutes, 58 seconds when we look at cars uh I would say electric cars uh definitely have much higher claims ratio uh and especially in 53:08 53 minutes, 8 seconds case of floods uh the repairability becomes much lower uh especially if the batteries can't be repaired and we have 53:15 53 minutes, 15 seconds seen in case of two wheelers also that not all manufacturers are in a position to repair the battery uh based on um 53:23 53 minutes, 23 seconds what we see in the market our senses lot of players are not pricing uh electric cars uh appropriately and uh 53:33 53 minutes, 33 seconds maybe our market share in electric cars new cars is substantially lower than in non-electric cars. So I'm not saying 53:41 53 minutes, 41 seconds others are wrong or we are right. All I'm saying is based on our understanding actually we are we are seeing reduced 53:48 53 minutes, 48 seconds market share in electric new electric cars compared to uh what we we expected it to be uh or for non-electric cars. 53:58 53 minutes, 58 seconds Now uh on the health side I think the initiative of the industry to jointly discuss with hospitals rates I would say 54:07 54 minutes, 7 seconds is a very welcome initiative because this is good both for the hospitals where there'll be transparency in terms 54:14 54 minutes, 14 seconds of pricing so they know that uh what they'll get they don't have to negotiate with individual companies and for 54:20 54 minutes, 20 seconds companies also the disputes will likely to come down. However, we should again keep this in mind that there are more 54:28 54 minutes, 28 seconds than 12 13,000 hospitals and even if we look at the top 700 800 hospitals which 54:34 54 minutes, 34 seconds contribute probably to 35% of the claims uh especially in the metropolitan areas this will take some time for the uh 54:43 54 minutes, 43 seconds general insurance council to reach uh but once it reaches transparency I would say is good for the customers and all players in the industry and one can then 54:52 54 minutes, 52 seconds also price it properly uh but we are still some time away from reaching uh some sort of a scale or tipping point 55:01 55 minutes, 1 second where one can say that this will benefit the industry or not. 55:07 55 minutes, 7 seconds Yes, thanks for the detailed response sir. Uh just one qu uh you know followup what how would you kind of uh in terms 55:13 55 minutes, 13 seconds of the loss ratio say on a u ICE vehicle versus an EV vehicle how would you kind of if you had to give a rough uh if you 55:21 55 minutes, 21 seconds had to give a a kind of rough number how how would they be what would be the difference is what I'm uh interested in knowing 55:29 55 minutes, 29 seconds so we know this will depend upon the uh what percentage of claims are coming due to floods essentially 55:38 55 minutes, 38 seconds So I would say that uh giving a number would mean that I would have to assume what percentage of claims will come from the floods. But in case of flood related 55:47 55 minutes, 47 seconds claims if I have to put a number the loss ratio of electric vehicles can in cars can be 20 to 25% higher than non-electric cars. 55:58 55 minutes, 58 seconds Thank you sir. That's all I want to know. 56:00 56 minutes Yeah. Yeah. That's all I that that's something I was Yeah. 56:03 56 minutes, 3 seconds Yeah. when it comes if you want more details thinking of starting insurance company happy to chat on the side. 56:09 56 minutes, 9 seconds Yes. Thank you. 56:14 56 minutes, 14 seconds Thank you. As there are no further questions I now hand the conference over to the management for closing comments. 56:22 56 minutes, 22 seconds So I just uh I think wanted to thank everyone for uh joining the call. This was our sixth uh quarterly call and uh 56:31 56 minutes, 31 seconds since we have 2 minutes I'll just want to repeat uh our philosophy for so that we also know it gets reinforced within 56:39 56 minutes, 39 seconds us as well as it also gets conveyed to all of you. I [snorts] think uh we don't give forecast not because we don't want 56:48 56 minutes, 48 seconds to but because our product mix etc changes substantially. We gave you a good indication of this in com uh in CV 56:56 56 minutes, 56 seconds vehicles. We also explained how if pricing goes at slightly at a threshold level for us then we start seeing very 57:05 57 minutes, 5 seconds high growth which we are seeing in commercial lines. Secondly, we this time have declared uh a deferred acquisition 57:13 57 minutes, 13 seconds cost transparently because uh in FRS uh this is uh included we when we look at 57:20 57 minutes, 20 seconds IFRS your profit we look at I gap profit and add uh deferred acquisition cost uh 57:27 57 minutes, 27 seconds to that and then take 25% profit. So you know clearly that uh this uh profit of 57:36 57 minutes, 36 seconds uh coming of deferred uh acquisition cost uh will actually come it is for real and it will come in high gap. Uh 57:43 57 minutes, 43 seconds the third point uh which I which we always do and maybe I should repeat it is to say uh though the premium comes by 57:52 57 minutes, 52 seconds 1 by n but we provide all acquisition cost in our quarterly results there is uh no liability which is not provided for in terms of uh 1 by n in our case. 58:04 58 minutes, 4 seconds Fourth is product mix and motor plays a very important role. We gave you example of uh two-heer business where an 58:12 58 minutes, 12 seconds increase of roughly about 117 crores uh compared to last year in Q2 it led to a 58:19 58 minutes, 19 seconds additional loss of 53 crores because commission has to be provided up front. 58:25 58 minutes, 25 seconds Fourth, uh that we always look at core insurance profitability which basically 58:32 58 minutes, 32 seconds means normalized TP reserve released and normalized uh investment income without substantial 58:42 58 minutes, 42 seconds uh capital gains and uh that is how we continue to drive business and uh 58:49 58 minutes, 49 seconds whether it is direct or inward facultitative or whatever uh we will uh 58:55 58 minutes, 55 seconds always take steps if we find a business or a segment is not giving us the desired profitability, we always take corrective action in those areas. 59:06 59 minutes, 6 seconds Lastly, we are happy that in Q2 we are now uh we have the highest ever market share of 6.2%. 59:13 59 minutes, 13 seconds So for for a company which was seen only a TP player 5 years back, I think our TP and OD market share is coming close. 59:21 59 minutes, 21 seconds Again, I'm not saying this is good or bad. I'm just saying that how fast the mix can change in case of digital. 59:28 59 minutes, 28 seconds Thanks everyone for joining the call. Have rest of the good day. Thank you. Thank you. 59:36 59 minutes, 36 seconds Thank on behalf of ICICI securities. 59:39 59 minutes, 39 seconds That concludes this conference. Thank you for joining us and you may now disconnect your lines.