ICICI Lombard General Insurance Company Limited — Q4 FY26

ICICI Lombard General Insurance Co Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=HMswfnFW-EU Published: 4 weeks ago

0:01 1 second Ladies and gentlemen, good evening and a very warm welcome to the ICICI Lumbard General Insurance Company Limited's Q4 and FY 2026 earnings conference call. 0:13 13 seconds From the senior management, we have with us today Mr. Sanjiv Mantri MD and CEO of the company. Mr. Gopal Balachandran, 0:22 22 seconds CFO, Mr. Anand Singhi, Chief Retail and Government. Mr. Girishes Nayak Chief 0:30 30 seconds Enterprise AI and Technology Mr. Sep Gurada Chief Corporate Solutions International and Bank assurance 0:39 39 seconds Mr. Gorav Aurora chief commercial lines and motor underwriting and claims 0:45 45 seconds and Mr. Girishes Seagal Chief Health UW and claims customer service and operations. 0:54 54 seconds Please note that any statements or comments made in today's call that may look like forward-looking statements are based on information presently available 1:02 1 minute, 2 seconds to the management and do not constitute an indication of any future performance as the future involves risks and uncertainties which could cause results 1:11 1 minute, 11 seconds to differ materially from current views being expressed. 1:16 1 minute, 16 seconds As a reminder, all participants lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation concludes. 1:26 1 minute, 26 seconds Should you need assistance during this conference, please signal an operator by pressing star then zero on your touchtone phone. 1:34 1 minute, 34 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. 1:39 1 minute, 39 seconds Sanjie Mantri, MD and CEO ICIC Lumbard General Insurance Limited. Thank you and over to you sir. 1:47 1 minute, 47 seconds Thank you. 1:49 1 minute, 49 seconds Good evening to each one of you. Thank you for joining the earnings conference call of ICSA Lombard for quarter 4 and financial year 2026. 1:58 1 minute, 58 seconds I would like to commence with an overview of the economic and industry trends which have shaped the operating environment over past few months coupled 2:07 2 minutes, 7 seconds with insights on a company's performance and a key initiatives. Following that, our CFO Gopal Valatan will take you 2:15 2 minutes, 15 seconds through the company's financial performance for quarter 4 and financial year 2026. 2:21 2 minutes, 21 seconds The quarter gone by has been an eventful one. For the first two months, the Indian economy exhibited continued momentum of growth from the previous 2:30 2 minutes, 30 seconds quarter. Whereas the month of March 2026 has seen has been unprecedented in terms of the geopolitical challenges. The 2:38 2 minutes, 38 seconds ongoing conflict in West Asia has heightened global economic uncertaintity leading to volatility in energy prices and financial markets. These external 2:47 2 minutes, 47 seconds risks could have some spillover effects on the Indian economy warranting a measured and washful approach. That 2:54 2 minutes, 54 seconds being said, India's macroeconomic fundamentals today are considerably strong and more resilient than in previous periods of global stress. This 3:03 3 minutes, 3 seconds provides a degree of comfort in our ability to absorb external shocks. 3:07 3 minutes, 7 seconds Although we remain mindful of evolving global conditions, let me now dwell upon the ensuing quarter and the year gone by. Retail 3:16 3 minutes, 16 seconds sales of private cars, two wheelers and tractors remained positive for the year. 3:20 3 minutes, 20 seconds In accordance with the data reported by WAN for financial year 2026, the sales growth of private car and two wheeler 3:27 3 minutes, 27 seconds stood at healthy 11.9% and 13.2% respectively. 3:32 3 minutes, 32 seconds Pertinently for H2 2026 the sales growth of private car and two wheeler stood at 3:38 3 minutes, 38 seconds 17.8 and 21.5 as against 4.6 and 3.2 respectively in H1 2026 led by GST rationalization. 3:48 3 minutes, 48 seconds This continued momentum is also seen in quarter 4 2026 wherein the growth of private car and two-wheeler stood at a healthy 16.3 and 24.7% respectively. 4:00 4 minutes Also noteworthy was the fact that two wheeler sales surpassed surpassed their their pre-COVID peak and were at a decadal high. 4:10 4 minutes, 10 seconds Even the sales of commercial vehicle based the data reported by WAN have witnessed a growth of 20.2% in H2 2026 4:19 4 minutes, 19 seconds versus 14.9% for H1 2026 and a fullear growth of 12.9%. 4:28 4 minutes, 28 seconds Given the early trends of numbers reported by certain banks, credit growth is expected to be in double digit for quarter 4 2026 with broad-based 4:36 4 minutes, 36 seconds expansion across segments. Also, vehicle vehicle financing continued to be an important contributor to credit growth 4:44 4 minutes, 44 seconds broadly in line with the trends observed in retail automoil sales. 4:49 4 minutes, 49 seconds We believe that the above factors augment well for the industry in time to come. Moving to the regulatory update. 4:57 4 minutes, 57 seconds You may be aware that IRDA has mandated insurers to prepare and present their financial statements in accordance with 5:03 5 minutes, 3 seconds the applicable Indas effective 1st April 2026. View we view this as a positive 5:10 5 minutes, 10 seconds step as the enhanced disclosure requirements under India's framework will meaningfully improve transparency and align the reporting standards of Indian insurers with global practices. 5:22 5 minutes, 22 seconds While the regulator requires insurers to provide the reporting as per both India and Indian GAP for 2027 and 2028, it has 5:32 5 minutes, 32 seconds provided the insurer the option of seeking forbearance to transitioning the statutory accounting to India's for the 5:38 5 minutes, 38 seconds first year. We've examined the option provided by the authority and it believed it would be appropriate to seek 5:45 5 minutes, 45 seconds the forbearance in order to ensure that the transition is executed in a calibrated and oper operationally robust manner. 5:54 5 minutes, 54 seconds Another important initiative announced by the authority is the public insurance registry which is expected to become a 6:01 6 minutes, 1 second key pillar of India's digital public infrastructure. 6:05 6 minutes, 5 seconds As the framework evolves, PIR has the potential to support industry growth by improving penetration, driving 6:12 6 minutes, 12 seconds efficiency, elevating customer service and also enabling better risk selection across ecosystem. We believe that over 6:20 6 minutes, 20 seconds time it will also enhance transparency, strengthen trust and create enduring benefit for the policy holder, insurers and the broader financial system. 6:30 6 minutes, 30 seconds Let me now dwell upon the industry performance for the year ended March 31st, 2026. 6:36 6 minutes, 36 seconds The general insurance industry reported a GDPI growth of 9.2% for 2026. 6:43 6 minutes, 43 seconds Excluding crop and market segment, the gross GDPI growth stood at 13.3% for 2026. 6:50 6 minutes, 50 seconds Speaking of the specific segments within the industry, the commercial segment reported a growth of 12.2% for 2026. 6:59 6 minutes, 59 seconds However, if one was to break down this growth into H1 and H2, the growth was 14.2 and 9.6% respectively. 7:09 7 minutes, 9 seconds As one observes, the business witnessed elevated level of competitive intensity and pricing pressure especially in the 7:16 7 minutes, 16 seconds fire segment in the second half of the year leading to muted growth. 7:21 7 minutes, 21 seconds The renews of April 1st, 2026 also are being reported at a discount to the previous year reflecting that this trend 7:29 7 minutes, 29 seconds is likely to continue for quarter 1 2027 as well. On the positive side, however, we also would like to mention that the 7:38 7 minutes, 38 seconds in the reinsurance renewals for financial year 2027 have been soft. 7:45 7 minutes, 45 seconds The motor segment growth for the industry stood at 9.2% 2% for financial year 2026 with the momentum experience 7:53 7 minutes, 53 seconds post the GST rationalization the second half of the year has witnessed improved growth levels of 10 and a half with the first half which stood at 7.6%. 8:03 8 minutes, 3 seconds The health segment including mass health grew by 15.4% for 2026 which makes it the fastest growing segment for last 8:12 8 minutes, 12 seconds five years for from financial year 2022 to 2026. 8:16 8 minutes, 16 seconds Within this the group has line of business view at 12.8% for 2026 whereas the retail health g growth stood at 19.9% for 2026. 8:27 8 minutes, 27 seconds Speaking on the underwriting performance of the industry overall the combined ratio of the industry deteriorated from 8:33 8 minutes, 33 seconds 113.2% in 9 month financial year 2025 to 119.3 in 9 month 2026. The overall combined 8:43 8 minutes, 43 seconds ratio for private players remained relatively flattish for from triple 1.2% for the period 9 month 2025 to triple 8:52 8 minutes, 52 seconds 1.5% for the period 9 month 2026. Due to fing combined ratio for the motor line of 8:59 8 minutes, 59 seconds business continue to remain elevated at 128.1% for 9 month 2026 with 123.8% 8% for the period ended 9 month 2025. 9:11 9 minutes, 11 seconds I will now proceed to present our company's performance across key business segments for 2026. The company reported a growth of 7% in gross 9:20 9 minutes, 20 seconds domestic premium income for 2026 compared to the industry growth of 9.2% for the same period. ICS Lombard 9:29 9 minutes, 29 seconds achieved a growth of 18.2% 2% and 15.7% in quarter 4 and H2 2026 respectively 9:37 9 minutes, 37 seconds against an industry growth of 10.9 and 11.2% over the same period. 9:44 9 minutes, 44 seconds However, as the crop and market segment the company recorded a growth of 10.2% 2% and for financial year 2026 by the 9:52 9 minutes, 52 seconds industry view at 13.3% for the same period. 9:59 9 minutes, 59 seconds In the commercial line segment, our growth stood at 5.4% for financial year 2026 as again compared to industry growth of 12.2% for 2026. 10:09 10 minutes, 9 seconds During H1 2026, our growth in commercial lines stood at 6.5% versus industry growth of 14.2%. 10:17 10 minutes, 17 seconds Wills for H2 2026 growth level stood at 3.8% versus industry growth of 9.6%. 10:26 10 minutes, 26 seconds ADM amidst competitive pressure we continue to drive profitable growth through prudent underwriting and judicious risk selection through our 10:34 10 minutes, 34 seconds multi- channelannel distribution. We continue to maintain leadership position in liability and marine cargo line of business for financial year 2026. 10:43 10 minutes, 43 seconds In motor segment, our growth stood at 7.6% 6% for financial year 2026 as again the industry growth of 9.2% for the same 10:51 10 minutes, 51 seconds period. In H1 of 2026 we grew at 2.2% in the motor segment versus the industry growth which grew at 7.6%. 11:01 11 minutes, 1 second However, H2 of 2026 we exceeded the growth level of industry by 1 and a half% in motor that is 12% which is the industry growth of 10.5%. 11:11 11 minutes, 11 seconds This momentum was evident in quarter 4 of financial year 2026 where we achieved a growth of 15% with while the industry grew at 10%. 11:22 11 minutes, 22 seconds Our portfolio mix for private carer and combined and commercial vehicles stood at 52.8 25.4 and 21.8% respectively for financial year 2026. 11:35 11 minutes, 35 seconds In the health segment for 2026, we grew by 20% as against the industry growth of 15.4% on a 1 byN basis. 11:46 11 minutes, 46 seconds For quarter 4 2026, the growth stood at a robust 38.2% as again the industry growth of 20.5%. 11:54 11 minutes, 54 seconds Our retail sales business continue to demonstrate strong growth of 51.1% 12:02 12 minutes, 2 seconds for 2026 significantly outpacing the industry growth of 19.9% in the same period. 12:11 12 minutes, 11 seconds Consequently, a market share has improved from 3.3% in financial year 2025 to 4.1% in financial year 2026. 12:21 12 minutes, 21 seconds For the year, the company has seen a 2x growth in the new retail health indemnity business source compared to the previous year. Our share of 12:30 12 minutes, 30 seconds long-term premiums in new business for retail health stands at 42.1% for financial year 2021, up from 28.5% 12:40 12 minutes, 40 seconds for financial year 2025. This performance has been driven by on ongoing product innovation and sustained 12:47 12 minutes, 47 seconds investment in strengthening our real health distribution franchise or retail health uh distribution franchise. 12:55 12 minutes, 55 seconds For the overall group health portfolio portfolio, we continue to maintain a disciplined approach with a focus on managing the book effectively. The group 13:03 13 minutes, 3 seconds health segment recorded a growth of 11% for financial year 2026 over 2025 with a 13:10 13 minutes, 10 seconds market share being 8.7% for financial year 2026. 13:15 13 minutes, 15 seconds We have kept a focus on augmenting cash flows through underlying long-term business in various line of business. 13:21 13 minutes, 21 seconds Our advanced premium in motor insurance has increased by over 15% in financial year 2026 with financial year 2025. 13:31 13 minutes, 31 seconds A market share in advanced premium excluding motor share stands at 12.5% for financial year 2026 up from 9.6% from financial year 2025. 13:44 13 minutes, 44 seconds Our discipent focus on profitable growth has helped us deliver consistent outcomes over time. When market fluctuations may impact performance in 13:52 13 minutes, 52 seconds individual quarters, our track record reflects our ability to navigate cycles and deliver value over the long term. If 13:59 13 minutes, 59 seconds we analyze the 10-year time horizon from financial year 2020 2016 to 2025, it is pertinent to note that the company's 14:08 14 minutes, 8 seconds average combined ratio stood at 102.9% reflecting sustained underwriting discipline across various market 14:15 14 minutes, 15 seconds conditions. This would compare favor favorably with the industry average of 115.3% over the same period. 14:24 14 minutes, 24 seconds Furthermore, our investment performance has also remained strong. Over the same 10 year uh 10 year horizon, we delivered 14:33 14 minutes, 33 seconds a robust average realized yield of 8.7% supported by prudent assent asset allocation and effective capital 14:40 14 minutes, 40 seconds management over multiple cycles. This in turn has translated into an healthy average return on equity of 19.1% over 14:50 14 minutes, 50 seconds the 10-year period which would compare favorably against the industry average ROE of 4%. 14:57 14 minutes, 57 seconds Reinforcing the strength and resilience of our overall business model and consistency of our execution. Our one 15:04 15 minutes, 4 seconds and one team philosophy continues to foster collaboration and operational excellence enabling a unified approach across the organization. 15:14 15 minutes, 14 seconds As a part of this philosophy, we'll now apprise you of certain key initiatives. 15:20 15 minutes, 20 seconds First, I would like to highlight a strategic capability we have built in house. One that materially strengthens 15:27 15 minutes, 27 seconds our execution engine. We call it IL1 force. 15:32 15 minutes, 32 seconds RL Force is an enterprise productivity platform which has been in operation for over a year and is used by over 10,000 15:39 15 minutes, 39 seconds sales employees. It is on track to become the single operating platform for all our 15,000 employees across the organization. 15:48 15 minutes, 48 seconds L14 indicates work execution, performance management, collaboration and recognition into a single platform, simplifying operations, reinforcing 15:57 15 minutes, 57 seconds execution, discipline, and driving accountability with real time enterprise wide wide visibility. 16:03 16 minutes, 3 seconds The platform enables structured partner engagement, task management, and real-time performance analytics across the partner life cycle. Its renewal 16:11 16 minutes, 11 seconds capability has improved conversion by 5% while enhanced engagement with and while enhanced engagement has doubled partner participation and expanded market reach. 16:23 16 minutes, 23 seconds Notably in health indemnity improved engagement led to a 2x increase in agent activation and a doubling of new retail business. 16:34 16 minutes, 34 seconds Our picture app, a one-stop solution for insurance and wellness needs, achieved 21 million downloads as of 31st March 16:42 16 minutes, 42 seconds 2026, reflecting the growing customer engagement and digital adoption. The GWP earned from the Takeare app during the 16:50 16 minutes, 50 seconds period 2026 was 51 5170 million with the corresponding premium earning for 2025 16:57 16 minutes, 57 seconds which stood at 2237.2 million. From a claim intimation perspective, 67% of the customers now 17:06 17 minutes, 6 seconds intimate their health reimbursement claims through the app. While 82% of the claim intimation of a travel product, Trip Secure Plus went through Take care 17:14 17 minutes, 14 seconds app. We will continue to focus on improving the service experience of a customer with a single simplified interface for their insurance 17:22 17 minutes, 22 seconds requirements. We continue to improve our efficiency level in motor claims too. 17:29 17 minutes, 29 seconds Our preferred partner network service 75.5% of our nonoem claims for quarter 4 17:34 17 minutes, 34 seconds 2026 respectively up from 74.1% for quarter 4 2025. For 9 months we recorded an NPS of 69 for motor claims. 17:46 17 minutes, 46 seconds In the retail segment 98.8% of our total claims were paid within 30 days for financial year 2026. For the 9 month 17:55 17 minutes, 55 seconds 2026 on a count basis the number stood at 99.9% with the corresponding number from the industry being at 82.1%. 18:04 18 minutes, 4 seconds For rind one 2026 we recorded an NPS of 73 for health claims demonstrating strong satisfaction level and 18:12 18 minutes, 12 seconds reinforcing our position as a customercentric organization. 18:16 18 minutes, 16 seconds IELTS has further strengthened our on ground claim supports for our health customers and our customer coverage improving by 25% over the previous year. 18:26 18 minutes, 26 seconds As a part of their feedback, 95% of our customer survey rated their experience as exemplary highlighting the support 18:33 18 minutes, 33 seconds provided during case processing and assistance with hospital coordination. 18:38 18 minutes, 38 seconds This reaffirms our focus on best-in-class service to our customers during the moment that truly matters. 18:45 18 minutes, 45 seconds The one and one call center initiative continues to deliver strong momentum in the company's transition toward the digital first do-it-yourself service 18:54 18 minutes, 54 seconds model. In March 2026, more than five lakh service engagements, 69% of the total service engagements were executed 19:02 19 minutes, 2 seconds digitally. Our differentiated service initiatives which we have spoken about in previous earnings call have resulted 19:09 19 minutes, 9 seconds in increase of our call center NPS to 74 in quarter 4 2026 from 60 in quarter 1 2026. 19:19 19 minutes, 19 seconds Before I close the current year marks an important milestone in the journey of ICI Lumbar. As we enter into our 25th 19:27 19 minutes, 27 seconds year of operations, we would like to take this opportunity to express our heartfelt gratitude to all our stake 19:35 19 minutes, 35 seconds stakeholders who have been truly who has truly supported us in our journey so far and we look forward to your continued 19:41 19 minutes, 41 seconds trust, encouragement and support in the years ahead. I will now request Gupal to take you through the financial numbers for quarter 4 and financial year 2026. 19:52 19 minutes, 52 seconds Thanks Anjie and uh good evening to each one of you. I will now give you a brief overview of the financial performance of the recently concluded quarter in the 20:00 20 minutes full financial year. We have uploaded the results presentation on our website. 20:05 20 minutes, 5 seconds You can access it as we walk you through the performance numbers with effect from October 1, 2024. Long-term products are accounted on a 1 byN basis as mandated 20:14 20 minutes, 14 seconds by the regulator IID. Please refer our investor presentation slide number 16 for the further details on comparison of financials on a on an n and 1 byn basis. 20:25 20 minutes, 25 seconds It may be noted that all the numbers that I will be speaking about are on a 1 byn basis unless otherwise mentioned. 20:31 20 minutes, 31 seconds On combined ratio our combined ratio on an n basis for fi26 was 102.4%. 20:38 20 minutes, 38 seconds As against 102.6% 6% in FI25. 20:42 20 minutes, 42 seconds Our combined ratio on a 1 byN basis for the current year was 103.4 as against 102.8% in FI25. 20:51 20 minutes, 51 seconds Excluding the impact of wage code of rupees 55 billion. The combined ratio for FI26 stood at 102.1%. 20:59 20 minutes, 59 seconds And 103.1% on a N basis and 1 byN basis respectively. Our combined ratio on a n 21:08 21 minutes, 8 seconds basis for quarter 4 was 10.5 as against 102.1 in quarter 4 of fi25. 21:15 21 minutes, 15 seconds Our combined ratio on a 1 by n basis for quarter 4 current year was 101.2 as against 102.5 in quarter 4 of last 21:24 21 minutes, 24 seconds year. On the investments, our investment assets during the quarter rose to rups 584.21 21 billion as at March 31, 2026, 21:33 21 minutes, 33 seconds up from rupes 582.96 billion as at December 31, 2025. 21:38 21 minutes, 38 seconds Our investment leverage net of borrowings was at 3.48 times at March 31, 2026 21:46 21 minutes, 46 seconds and at 3.6 times as at December 31, 2025. Investment income was at rupees 21:52 21 minutes, 52 seconds 47.42 billion in FI26 as against rupees 42.5 billion in FI25. 21:58 21 minutes, 58 seconds On a quarterly basis, investment income was at rupees 9.85 billion in Q4 this year as against rupes 8.77 billion in Q4 22:07 22 minutes, 7 seconds last year. During the quarter under review, the company has recognized we have a policy on impairment of uh investment assets. Uh basis that the 22:16 22 minutes, 16 seconds company has recognized an impairment on its equity portfolio investments of rupees.49 49 billion in this quarter for FI26 22:25 22 minutes, 25 seconds versus a small ride back that we had of almost about 3 crores uh that we had in quarter 4 of uh the last financial year 22:32 22 minutes, 32 seconds driven by the prevailing market correction. Now coming to profitability our profit before tax grew by 10.2% to 22:40 22 minutes, 40 seconds rupes 36.59 billion in FI26 as against rupes 33.21 21 billion in FI25 excluding the impact of the wage code 22:48 22 minutes, 48 seconds that I referred earlier of rupees 0.55 billion the PBT grew by 11.8% to rupees 37.14 billion in FI26 22:57 22 minutes, 57 seconds our PBT grew by 7.5% to rupees 7.18 billion in Q4 FI26 as against rupees 6.68 68 billion in Q4 FI25 on the profit 23:06 23 minutes, 6 seconds after tax. Therefore, consequently on a 1 byN basis, the PAD grew by 10.5% to 23:12 23 minutes, 12 seconds rupees 27.72 billion in FI26 as against rupees 25.08 billion in FI25. 23:21 23 minutes, 21 seconds Again excluding the impact of the wage code, the PAT on a 1 byN basis grew by 12.2% to rupees 28.14 billion in FI26. 23:30 23 minutes, 30 seconds On an end basis, PAT grew by 14.1% to rupees 27.61 billion in FI26. That's against rupees 24.19 billion in FI25. 23:40 23 minutes, 40 seconds On an end basis, excluding the impact of the wage code, the PAD grew by 15.9% to rupees 28.03 billion in FI26. 23:49 23 minutes, 49 seconds Our PAT on a 1 byN basis grew by 7.3% to 5.47 billion in Q4 this year as against 23:56 23 minutes, 56 seconds rupees 5.1 billion in Q4 last year. Same numbers on an end basis PAD grew by 15.6% to to rupees 5.39 billion in Q4 FI26 as against 4.66 billion in Q4 FI25. 24:10 24 minutes, 10 seconds Coming to return on average equity or ROE was 17.8% in FI26 as against 19.1% 24:17 24 minutes, 17 seconds in FI25 excluding the impact of wage code of rupees.55 billion. The ROE stood at 18.1% for FI26. 24:26 24 minutes, 26 seconds ROE for quarter 4 current year was at 13.3%. As again 14.5% in Q4 FI25. 24:34 24 minutes, 34 seconds Coming to dividend, the board of directors of the company has proposed a final dividend of 7 per share for FI26. 24:41 24 minutes, 41 seconds This payment is however subject to approval of shareholders in the encing general annual general meeting of the company. The overall dividend for FI26 including the above proposed final 24:50 24 minutes, 50 seconds dividend is rupes 13.5 per share. Last year the overall dividend was rupes 12.5 per share. On solveny we continue to 24:59 24 minutes, 59 seconds exhibit a very healthy solveny ratio of 2.67 times at March 31st 2026 as against 25:06 25 minutes, 6 seconds 2.69 at December 31 2025 which continues to be higher than the minimum regulatory requirement. The solvency of course was 25:14 25 minutes, 14 seconds impacted by roughly about 14 basis points as an outcome of the marktomarket loss position that we had on the equity book as at March 31, 2026. As I 25:24 25 minutes, 24 seconds conclude, I would like to state that we are aligned with our ethos of driving profitable growth. Consistent and sustainable value creation for all our 25:31 25 minutes, 31 seconds stakeholders while ensuring that the interest of policy holders are at the forefront at all times. I would like to thank you all for attending this 25:39 25 minutes, 39 seconds earnings call and we will now be happy to take questions that you may have. Thank you. 25:44 25 minutes, 44 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 25:52 25 minutes, 52 seconds star and one on their touchdown telephone. If you wish to remove yourself from the question Q, you may press star and two. Participants are 26:00 26 minutes requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. 26:09 26 minutes, 9 seconds Our first question comes from the line of Supratin Duta from Jeff. Please go ahead. 26:18 26 minutes, 18 seconds Hello. Um, thanks a lot for the opportunity. My first question is on the competitive environment in the industry. 26:25 26 minutes, 25 seconds Uh, there have been articles recently indicating that competition in the commercial lines have been fairly elevated to indicated that you know the 26:32 26 minutes, 32 seconds motor lines combined ratio remains elevated. So if you could give us an idea about you know how competitive environment in the different segments is 26:42 26 minutes, 42 seconds panning out that would be helpful and is there any improvement due to now uh the um guidelines kicking in. So that's my 26:50 26 minutes, 50 seconds first question. The second question coming to the loss ratio side uh this year fourth quarter motor TTP loss ratio 26:58 26 minutes, 58 seconds has been significantly lower than what we have seen in the last uh years in uh fourth quarter motor TPT loss ratio. So 27:06 27 minutes, 6 seconds just wanted to understand you know what has played out for this uh significant improvement versus the run rate that we 27:12 27 minutes, 12 seconds have seen previously and why is the pop loss ratio negative if you could give some color on that. Lastly on IFRS Gopal 27:21 27 minutes, 21 seconds you know would it be possible for you to give us some understanding or clarity regarding you know how your PAT under 27:28 27 minutes, 28 seconds IFRS would look versus the IGAP pat um that would be very helpful. Thank you. You'll take the second one first. 27:35 27 minutes, 35 seconds Maybe I can take the second and the third and then maybe I can ask maybe Sanjiv can respond the first one. Um I think on the loss ratio supraim I think 27:44 27 minutes, 44 seconds uh this obviously comes to us every quarters and I think our response will still remain the same as in to say that one you have to keep looking at motor as 27:52 27 minutes, 52 seconds a category as compared to one looking at separately uh motor own damage and third party. That's one. Second, I think we would continue to again request all of 28:01 28 minutes, 1 second you to keep looking at numbers more on uh full year basis as compared to let's say any given quarter. And uh just to 28:08 28 minutes, 8 seconds kind of refresh what we have been telling the street is I think the range that we're comfortable on motor is between 65 to 67. I think that is the 28:17 28 minutes, 17 seconds range that we have maintained and if you could have seen for the full year current year I think we ended at roughly about 66.3%. 28:24 28 minutes, 24 seconds it's well within that range and hence to that extent I think that's the range that we would be kind of tracking pretty closely. Uh so in that sense there is 28:33 28 minutes, 33 seconds nothing that has kind of changed. Uh if you ask us has has any of our reserving philosophy undergone a change the short 28:40 28 minutes, 40 seconds answer is no and we continue to kind of maintain prudence uh in terms of maintaining our uh loss reserves. So hence uh I think we keep looking at 28:50 28 minutes, 50 seconds numbers more on full year basis as compared to any given quarters. So that's one crop. Uh I think again uh time and again we have kind of talked 28:58 28 minutes, 58 seconds about it because generally again just to kind of refresh most of the businesses in crop get booked around quarter 2 and somewhere around quarter 3 and maybe 29:06 29 minutes, 6 seconds early quarter four because those are typically the two seasons that largely get exhibited. In our case, we had predominantly a large exposure on crop 29:14 29 minutes, 14 seconds largely from one state of which a large part of our premium was something that had got kind of booked roughly around quarter two of the year and as we have 29:22 29 minutes, 22 seconds said it obviously takes time for the season to kind of play out in terms of actual loss experiences and in any in any quarter when you see that experience 29:30 29 minutes, 30 seconds play out then to that extent obviously and if you recollect even at the time of booking the uh policies we obviously follow a very very conservative approach 29:39 29 minutes, 39 seconds of providing for almost 100% % loss ratio at the time of writing the risk and as the actual experiences play out obviously to that extent in case if you 29:47 29 minutes, 47 seconds see some kind of a positive change then to that extent that gets reflected again in the given uh quarter and hence to that extent is why possibly you are 29:55 29 minutes, 55 seconds seeing that number uh in line with the loss ratio outcomes for quarter 4 here again I would continue to urge that you 30:02 30 minutes, 2 seconds should again look at the numbers more on a full year basis on a full year basis is pretty much kind of range bound whether you look at FI25 or whether 30:09 30 minutes, 9 seconds whether you look at FI26. Um on India's I think uh uh in line with what we had also kind of put out as a part of the 30:17 30 minutes, 17 seconds opening uh transcript um at this point of time uh given the state at uh which 30:24 30 minutes, 24 seconds uh so one if you ask us is the now now that is now there is a definitive uh uh date uh in so far as uh transitioning to 30:32 30 minutes, 32 seconds India is concerned so hence that's a very very welcome step in so far as the overall uh industry is concerned. I think that's what rightfully so the 30:39 30 minutes, 39 seconds regulator has done it. Um in terms of uh uh our own transition I think we do have uh we have been working on a plan of 30:46 30 minutes, 46 seconds action in terms of getting our uh processes internally uh up and ready so that we are able to kind of start 30:53 30 minutes, 53 seconds reporting uh numbers to all of you uh uh whenever we are kind of ready for it. Um at this point of time I think we will 31:01 31 minutes, 1 second continue to kind of give uh in line with what we have done even in the past we have been submitting performer numbers uh for the last two years. So we will 31:08 31 minutes, 8 seconds continue even for 262 27 on a quarterly basis in line with the requirements we will continue to submit uh India India's 31:16 31 minutes, 16 seconds based results to the regulator and maybe we will come back to all of you at an appropriate time uh and then we will 31:23 31 minutes, 23 seconds possibly start talking about more specifics in terms of the impact that it does on both uh the combined ratios and maybe the return on equity objectives 31:32 31 minutes, 32 seconds because those are the two two things that the market obviously kind of wants to hear from us. So we will come back on that uh and maybe on the first point so also you know from the just to close out 31:41 31 minutes, 41 seconds the FRS part and we've always said in the past also that uh the year of adoption there would be a significant 31:48 31 minutes, 48 seconds decline combined ratio it can be in the range of 300 basis to you know maybe 400 450 basis point but look that's only the 31:57 31 minutes, 57 seconds accounting part of it economic value over a period of time it is expected to converge and have the same uh you know 32:05 32 minutes, 5 seconds uh value creation for the company as it happens. So, so our stand pretty much remains same and yes from next quarter 32:12 32 minutes, 12 seconds one we would end up doing our submission on that count. Uh with respect to super on the comp competitive pressure that is there and we spoke about that also when 32:20 32 minutes, 20 seconds we were giving the overall briefing for the year that has gone by yes it has intensified on commercial business. uh 32:28 32 minutes, 28 seconds at the same time the the capacity overall on the reinsurance side was very high available and we've been able to see to some extent it getting negated. 32:37 32 minutes, 37 seconds Uh will this continue? My my own belief is market forces will play out but our own understanding is when we see 32:45 32 minutes, 45 seconds intensive competition the selection has to get sharper uh because it's will we 32:52 32 minutes, 52 seconds compete in the market? Answer is yes. uh but uh what we've been able to write and what we will write we will be creating 33:00 33 minutes differentiation if you remember last year even in you know over quarters we had said that there was a marginal loss 33:07 33 minutes, 7 seconds of uh market share for us on the fire side purely was on account of the fact that uh we will do what is comfortable and the output is in some ways here to 33:16 33 minutes, 16 seconds see these are all very exposure-driven products and you have to be cautious of what you pick and what you don't and we 33:22 33 minutes, 22 seconds continue to follow at uh there is no overarching worry. We are very well placed as an institution in terms of 33:29 33 minutes, 29 seconds what practices we have to counter any such measures that come up in the market and overall insurance general insurance in particular have seen uh these kind of 33:39 33 minutes, 39 seconds conduct at multiple levels and we are well pleased about it. On motor also in a similar vein uh yes the industry is been uh stretched at multiple counts. 33:49 33 minutes, 49 seconds the combined ratio which I just spoke about for the 9 months stayed at 128 clearly not a workable one we continue 33:56 33 minutes, 56 seconds to pick and choose and deliver uh a result which is differentiated from the market it's purely led by on 34:05 34 minutes, 5 seconds multiple count distribution and underwriting practices which differentiates in own damage as well as third party which briefly you know Gopal 34:14 34 minutes, 14 seconds spoke about thank you understood perfectly thank Sure. Thank you. Thanks. 34:23 34 minutes, 23 seconds Thank you. Our next question comes from the line of Pra Jen from Motila Losal. Please go ahead. 34:31 34 minutes, 31 seconds Yeah. Hi everyone. Uh two questions from my side. Firstly, if I just wanted to take a view on your solvency which is 34:39 34 minutes, 39 seconds like uh very high at 2.7. How do you think that you will uh whether you because you've been generating good 34:46 34 minutes, 46 seconds profits over the past few years and in fact from FI22 to FI25 and even now the solveny has been 34:55 34 minutes, 55 seconds increasing. So how do you see you know whether you can utilize the solvency better in terms of paying out dividends or in any other form uh to kind of 35:04 35 minutes, 4 seconds because and unless the growth is really exceptional we I'm sure that we wouldn't need that kind of excess solveny on the 35:11 35 minutes, 11 seconds balance sheet that's question number one second you know we've been talking about motor TP price hike and uh you know 35:18 35 minutes, 18 seconds we've discussed this in the last call last few calls as well but given the trajectory on the motor TP loss ratios 35:24 35 minutes, 24 seconds at about 63 3.2 in FI25 and 63.8 this year for you. Do you think that uh you know motor DP price hike can uh come in? 35:34 35 minutes, 34 seconds Um and my last question is on on the health insurance point. Uh uh Gopal if you could split up the loss ratios for retail retail and group. 35:46 35 minutes, 46 seconds Yeah. Yeah. So maybe yeah. Uh so uh so pre uh uh so the first one I think uh um 35:54 35 minutes, 54 seconds I think as a company uh what we have always maintained is uh uh sufficient uh 36:01 36 minutes, 1 second margins when it comes to solveny because uh in uh the Indian market is still on solvency one regulation I think of 36:09 36 minutes, 9 seconds course there is a road map to maybe eventually transition to risk based capital which again as what as what the regulator has rightfully done on India 36:16 36 minutes, 16 seconds as I'm sure they would possibly try and do a similar thing even on a transition to risk based capital as well. So obviously one will have to wait and see 36:24 36 minutes, 24 seconds how that plays out but till that point of time I think the Indian market continues to be guided by solvency one 36:31 36 minutes, 31 seconds uh which uh as I said still mandates uh capital ask to be maintained bases the gross exposures that you have as an entity and hence to that extent we'll 36:39 36 minutes, 39 seconds have to be uh mindful of and prudent uh in terms of the levels of solvency that we carry as an institution. Um having 36:46 36 minutes, 46 seconds said that I think uh to your point on uh the last few years I think uh fair observation but if you see I think last 36:55 36 minutes, 55 seconds couple of years in specific I think we have been relatively uh lower uh when it comes when it comes to growth but that's 37:03 37 minutes, 3 seconds something that we have already seen a clear positive uh reversal of trends emerging for us and with the momentum 37:10 37 minutes, 10 seconds that that we have kind of seen in all fairness one would obviously want to kind of make sure that we are able to kind of get it extended uh even as we 37:18 37 minutes, 18 seconds head into FI27 and the moment you will see as what you have seen uh let's say even uh in the second half of this year 37:25 37 minutes, 25 seconds growth kind of coming back uh so to that action obviously one will uh look at consuming some part of uh the solveny 37:32 37 minutes, 32 seconds that we have and three ours solveny is also guided by obviously a mix of what is it that we want to drive in terms of 37:40 37 minutes, 40 seconds the growth objective and two at the same time make sure that we are kind of appropriately kind of rewarding uh the investors who have kind of obviously 37:48 37 minutes, 48 seconds placed faith in us and in that context I think if you would have seen historically we do have a board governed 37:55 37 minutes, 55 seconds uh dividend distribution policy in place uh on an average I think what we have been able to kind of distribute uh is 38:02 38 minutes, 2 seconds roughly about uh 25% of our PAT and this year again as what we had kind of put out in our opening transcript roughly 38:09 38 minutes, 9 seconds about 13 and a half rupees per share for the full year roughly translates to almost about 25% of for profit after tax. Uh so hence it's obviously will be 38:17 38 minutes, 17 seconds a continued combination of both uh rewarding the shareholders appropriately and at the same time making sure that we are able to use the capital for uh 38:25 38 minutes, 25 seconds growth. And the three the third part as I said we will obviously kind of keep a watch on the transition to risk based capital. So that's one uh to your point 38:33 38 minutes, 33 seconds on the breakup for the health loss ratio numbers I think yeah thankfully this time the question has come ahead of time so so maybe we'll answer it. Uh so I 38:41 38 minutes, 41 seconds think uh Q4 of last year this right now I'll give you the numbers for quarter 4 employer employee book uh the last last 38:48 38 minutes, 48 seconds year Q4 the loss ratio was uh 98% and this year that number is almost the same at 981%. 38:57 38 minutes, 57 seconds On the retail uh indemnity book uh the loss ratio for Q4 last year was 64.8 and this year quarter 4 the loss ratio on the indemnity book is at 57.6. 39:09 39 minutes, 9 seconds Now the same year numbers on a full year basis employer employee book for last year has been at 97.2 39:16 39 minutes, 16 seconds and this year full year the employer employee book loss ratio stands at about 91.9 on the retail indemnity full year last 39:25 39 minutes, 25 seconds year was 67.9 this year full year is at about 64.6 six uh so just that for now to kind of 39:32 39 minutes, 32 seconds summit again on the indemnity book I think the range that we have spoken about is between 65 to 70% and that's what we have kind we have been kind of 39:39 39 minutes, 39 seconds largely talking through even in the past several quarters and broadly if you see the experience that one has seen the good part is I think one we have been 39:47 39 minutes, 47 seconds able to book build a book uh which is pretty much to our liking and it has kind of played out both in terms of growth in market share and also staying 39:56 39 minutes, 56 seconds within the loss ratio range so those are the responses to the two questions maybe the most third party. 40:01 40 minutes, 1 second So yes uh I think uh possibly it's been almost 5 years now since the uh industry 40:09 40 minutes, 9 seconds has uh got a hike uh at the loss ratio at the industry level as far as motor TP is concerned is at around 85 and 40:18 40 minutes, 18 seconds thereabouts. uh which is significantly you know elevated uh where we are we have been able to uh if you see and 40:27 40 minutes, 27 seconds Gopal briefly spoke about it we have to also reconfigure our portfolio to get aligned and drive the efficiency uh 40:34 40 minutes, 34 seconds which we've been able to reflect uh it does at time lead to a loss and whenever we end up having discussions uh whether individually or collectively there's so 40:42 40 minutes, 42 seconds much of you know questioning as to why has the market share gone gone up that is what it takes to reconsider. Uh we've 40:51 40 minutes, 51 seconds also recalibrated our practice in terms of ground surveillance and doing what is required uh to avoid fraud which 40:58 40 minutes, 58 seconds probably we would easily say is among the lowest in the industry. There's no way we can claim to eliminate it. So there are multiple factors that go about 41:06 41 minutes, 6 seconds it. We remain desirous of the fact that yes the TP hike for the industry is overdue and uh sooner than later that 41:16 41 minutes, 16 seconds should play out. uh but we can only control what is in in our hand. This one definitely is not. And in line with that 41:24 41 minutes, 24 seconds we continue to forge our own uh understanding and deliberation to penetrate market at multiple counts and 41:31 41 minutes, 31 seconds make it work for us uh as a company and uh from an industry standpoint sooner than later we do hope the relief comes through. 41:42 41 minutes, 42 seconds Thank you. Thank you so much. Thank you. Thanks. Thank you. 41:48 41 minutes, 48 seconds Our next question comes from the line of Sankit Koda from Aventis Park. Please go ahead. 41:54 41 minutes, 54 seconds Uh yeah, thank you. Thank you for the opportunity. Uh so so my my my first question is is that last year we we kind of lost market share in commercial 42:02 42 minutes, 2 seconds lines. Um and um and uh given given the market is soft as you highlighted uh is it fair to say that uh we we will claw 42:11 42 minutes, 11 seconds back kind of a market share in the software market or we will remain as cautious as we were last time and and and in and and and in in in these lines 42:20 42 minutes, 20 seconds just wanted to understand given given the soft market growth outlook uh given given um your second half growth is 16%age 42:28 42 minutes, 28 seconds uh and maybe crop being a new tendering uh uh tendering uh year uh how do you see growth of the 16 percentage to 42:36 42 minutes, 36 seconds continue for the next year uh and any any color if you can give on that those lines will be very useful that that's my first question maybe maybe I will ask 42:44 42 minutes, 44 seconds another one later okay no so no sit I think uh last year uh I'm saying when you're saying last 42:52 42 minutes, 52 seconds year before the one which you just given the result it's a financial 25 we were we didn't lose market share we had gained by 0.1 we had a quarter here we 43:00 43 minutes missed but overall we had gained We talking about a market share which is in the range of 13.7 which was year before last. This year we have closed 43:08 43 minutes, 8 seconds by8.7 basis point lower. Uh and it's driven through multiple configuration when we meet up personally for I more 43:16 43 minutes, 16 seconds than happy to sit run through that uh these that kind of a share that we draw these fluctuations to ensure that we 43:24 43 minutes, 24 seconds select right can happen. uh but uh the commercial practice that we have is very unique uh in the industry and it's not 43:32 43 minutes, 32 seconds driven by what business we're able to write. It's about how we are able to even manage claims. Uh there's a significant contribution on large 43:40 43 minutes, 40 seconds corporates to mid and to small. Honestly speaking from an entity standpoint we have been we have done a much more uh uh 43:48 43 minutes, 48 seconds you know recent job on the large corporate side and over last two to three years which we have been briefing to you it's been a more distributionled 43:55 43 minutes, 55 seconds growth and we've been able to diversify our port our portfolio in a in a significant manner. We do we do believe 44:03 44 minutes, 3 seconds that uh we are we have a very significant edge in the overall practice and we will be able to uh have a you 44:12 44 minutes, 12 seconds know a reasonable presence as far as commercial is concerned. I don't want to jump the gun to say uh where the market share will be but we will be a very 44:20 44 minutes, 20 seconds relevant player and it's not uh easy to see us losing foothold on that on an overarching basis. crop coming into 44:29 44 minutes, 29 seconds play. We will uh and yes the market opens up significantly. We are still awaiting the details in terms of on what 44:36 44 minutes, 36 seconds contours this market will open as in when those guidelines come in. Uh we'll be able to comment as to what it is but 44:45 44 minutes, 45 seconds we've always maintained our stand that crop will be purely on selection. this is of what we feel is appropriate rather 44:53 44 minutes, 53 seconds than a targeted statement where we say you know that's not the way we look at it. Uh do we want to participate? It's a 45:00 45 minutes bold yes. Do we want to you know chase it? The answer is no. Uh we we very well 45:07 45 minutes, 7 seconds placed overall to and we're excited actually in terms of the opportunity that will present itself. Our current 45:14 45 minutes, 14 seconds crop number wizard is what was there year before last or this year I'll virtually have and uh uh there is some play available for us to make it count in this year. 45:27 45 minutes, 27 seconds Yeah. Yeah. Sorry. 45:30 45 minutes, 30 seconds Oh, sorry. You're saying something. Go ahead. Please go ahead. 45:32 45 minutes, 32 seconds No, no, sorry. Sorry. you when I meant uh April last year you lost market share in commercial lines because you believed 45:39 45 minutes, 39 seconds the market was too soft and and if you are assuming it is too soft again maybe maybe full year you caught it up but but but given April is very strong in the 45:47 45 minutes, 47 seconds renewal for for uh fire whether whether whether whether whether it will have any implication in oneq growth or or April 45:55 45 minutes, 55 seconds growth which is which is significantly very big and lastly yeah go ahead lastly on crop crop just 46:02 46 minutes, 2 seconds just wanted to add that uh whether whether you confined till till last three years to to one state uh maybe I don't know what final controls will be 46:11 46 minutes, 11 seconds but but it is fair to say that you you will be expanding beyond a particular state in in in the current year or not broadly broadly that's that's way you 46:18 46 minutes, 18 seconds are strategically thinking in those lines or not is the point I wanted to check yeah yeah so so one state uh worked out 46:25 46 minutes, 25 seconds because it was in line of what we wanted to do it is not a plan that will continue to be a one state p we will go 46:33 46 minutes, 33 seconds uh wherever ever it makes uh you know uh uh commercial sense and we believe that it is appropriate and crop obviously can play out the way it is. We are still 46:42 46 minutes, 42 seconds awaiting structure. So there is there is we are open to whatever that comes up our way to be very honest on that point 46:49 46 minutes, 49 seconds and on the commercial part in terms of uh uh what you were saying look the growth of the industry itself will get 46:58 46 minutes, 58 seconds impacted and we are we are a sub we are an offshoot of that. So uh uh we can do better, we can do worse depending on how 47:06 47 minutes, 6 seconds it pans out. Uh uh but overall if you remember in H1 uh we had a 47:13 47 minutes, 13 seconds uh much bigger loss with what happened in H2. So uh we've also done what is required uh so what cannot get you know 47:22 47 minutes, 22 seconds what cannot be acquired through uh large corporates we have played out in distribution has taken its own play but we are very well entrenched uh so we 47:31 47 minutes, 31 seconds should be fine on the commercial part also overall as an entity understood so from growth point of view given 47:38 47 minutes, 38 seconds sorry to interrupt we request you to please the growth on commercial because of fire being there the industry itself may have 47:46 47 minutes, 46 seconds challenges is on growth. Uh let me uh put this very clearly. Uh but it doesn't mean that uh it put us at a significant 47:54 47 minutes, 54 seconds disadvantage as anybody else. It would be probably single digit. 47:59 47 minutes, 59 seconds Sorry just to squeezing I was asking that second half our growth was 16%age though weak in first half. So this 16% 48:06 48 minutes, 6 seconds growth run rate uh you expect to continue largely 4527. 48:12 48 minutes, 12 seconds I mean there is so much happening all around that uh uh how do we predict that but yes uh Gopal mentioned that very briefly we're very confident of moving 48:21 48 minutes, 21 seconds into the quarter 1 and quarter two on a positive note overall as things stand yes we but how does the industry play 48:28 48 minutes, 28 seconds out overall uh we will have to watch at that uh uh we also presume that the the the tailwind which got huge amount of 48:37 48 minutes, 37 seconds GST cut which led to a very robust quarter four uh would continue to play out definitely we'll be well placed for 48:45 48 minutes, 45 seconds a growth. We we are excited with that opportunity but we'll have to wait in terms of how the market plays out. Yeah. Thank you. 48:52 48 minutes, 52 seconds Okay. Yeah. Thanks. Yeah. Thank you. 48:59 48 minutes, 59 seconds Our next question comes from the line of Nidesh from Invest. Please go ahead. 49:05 49 minutes, 5 seconds Thanks for the opportunity sir. My question is on motor. So in motor in H1 we view lessers in the market in H2 we view faster in the market. So what drove 49:14 49 minutes, 14 seconds that and what is the outlook of our growth with industry growth in FI27 on on in the motor segment. 49:22 49 minutes, 22 seconds Yeah. Okay. So D I think uh yes H S H S H S H S H S H S H S H S H S H S H2 was better. There was also uh a significant play that came out on account of new 49:30 49 minutes, 30 seconds sales uh for the country doing better and uh there is no denial in you know there's nothing which we can say uh that 49:38 49 minutes, 38 seconds we tend to do better when new sales are uh very high and we have seen that new grew at almost 18.8% 49:47 49 minutes, 47 seconds uh for us with this 13.4 on the old side. 49:52 49 minutes, 52 seconds on the outlook of financial year 27 um we'll have to see we do expect a higher singledigit growth at the industry level 50:00 50 minutes and if that happens it would be again uh good for us and other thing which worked out last year was the growth of two 50:06 50 minutes, 6 seconds biller by when I was talking I said that it was at a decade high in terms of the overall growth that happened we for last 50:15 50 minutes, 15 seconds three four years we have been saying that we have not beaten the pre-COVID number on two billers that itself is again a big plus uh overall on the uh 50:24 50 minutes, 24 seconds motor side. I think the only thing that I'll just add this just to what Sanji was saying I think one of the thing initiatives that we have will also been 50:30 50 minutes, 30 seconds speaking in our earlier calls is our relentless focus on improving retentions uh and uh we will be very again happy to 50:39 50 minutes, 39 seconds kind of uh indicate that uh for the full year I think at an aggregate let's say company level a large part of which will 50:47 50 minutes, 47 seconds be predominantly let's say retail business lines I think we have seen an improvement in our overall retention numbers go up by almost about 5 percentage points 50:54 50 minutes, 54 seconds U so hence that is something that we will continue to stay focused on even as we head into FI27. So that will be an important lever uh that we would 51:03 51 minutes, 3 seconds obviously kind of uh uh work on uh beyond of course the point that Sanjay made in so far as new vehicle sales is concerned. 51:13 51 minutes, 13 seconds So basically the growth acceleration that we have seen is a function of growth new vehicle sales going up and competitive intensity reducing and we 51:21 51 minutes, 21 seconds gaining market share on a lack basis. Uh so yeah so new and old and I think like this sometime in quarter one last year 51:28 51 minutes, 28 seconds that we had uh as a company extensively worked on the retention part a lot of work was done on multiple counts uh by 51:38 51 minutes, 38 seconds us and that's what Gopal is referring to when he's saying that we are a delta of higher retention of our customers. 51:46 51 minutes, 46 seconds Sure. So and that so should we expect cube H2 trend to play out next year also that we will grow faster than the 51:53 51 minutes, 53 seconds industry or uh are I think I think let me put it this way we we will we are well placed 52:01 52 minutes, 1 second overall but uh there are multiple factors see I mean if there's there is a challenge on the energy if the uh if uh 52:09 52 minutes, 9 seconds the Indian mentality moves into the savings part of it rather than spending the motor sales or auto sales which probably all of you are well aware of it actually ends up getting really muted. 52:19 52 minutes, 19 seconds We'll have to see how that part comes in. Uh but we would say that uh the momentum on quarter 3 to quarter four 52:26 52 minutes, 26 seconds and so effectively in quarter one should play out. Uh I would say yes we are going with a very positive mindset at this point of time. 52:34 52 minutes, 34 seconds Sure. Uh that's it for myself. Thanks. Thanks. Thanks. 52:39 52 minutes, 39 seconds Thank you. Our next question comes from the line of Avin Singh with MK Global. Please go ahead. 52:47 52 minutes, 47 seconds Yeah. Hi. Uh thanks for the opportunity. Uh good evening. A couple of question. 52:51 52 minutes, 51 seconds The first one uh a bit I would uh say if you can uh clarify my understanding this 52:58 52 minutes, 58 seconds 49 cr kind of a charge that you have taken for diminish in value of investment uh provisions in this quarter 53:05 53 minutes, 5 seconds is it largely driven by the equity market fall or bond or kind of a both. 53:11 53 minutes, 11 seconds So that's one and second in motor TP of course you have experienced a lot of things. Uh now my question is that okay 53:18 53 minutes, 18 seconds we have not seen a sort of a price hype but what had changed for you that you have kind of a accelerated your growth 53:25 53 minutes, 25 seconds in CV segment. Now typically from whatever we hear it is a CV by and large where the price revision is required and 53:32 53 minutes, 32 seconds it's not so profitable but in Q4 uh it seems that you have gone uh a lot higher in terms of you know uh that CV. So what 53:40 53 minutes, 40 seconds has change there? What kind of a strategy is there? And for the full year around 780 crores of motor third party reserve will get uh is that number I'm 53:49 53 minutes, 49 seconds seeing correctly. Thanks the last one. 53:52 53 minutes, 52 seconds So maybe I can take the last one. Uh so Ain again again we will keep saying uh you should keep looking at the loss 54:00 54 minutes ratio range that we have spoken about for motor as a category which is between 65 to 67. an absolute amount of uh 54:08 54 minutes, 8 seconds reserve number that you spoke about honestly uh in our sense is something that uh would not necessarily be a right 54:16 54 minutes, 16 seconds metric to kind of track. A better metric will be to keep looking at the loss ratio outcome which is the range that we have kind of spoken about between 65 to 54:23 54 minutes, 23 seconds 67. Now the good part is I think uh I think what has worked for us I think is I think we have seen a clear rebound of 54:32 54 minutes, 32 seconds growth and at the same time we have been able to maintain the loss ratio expectations that we have set out. Uh so 54:39 54 minutes, 39 seconds hence to that extent I think uh is where we have been able to deliver both on growth as well as in so far as the loss outcomes and that's something that we are very very happy with and we are very 54:47 54 minutes, 47 seconds very positive uh when we kind of head into uh FI 27. Um and as I said uh in response to the earlier question is 54:56 54 minutes, 56 seconds there any change in the thought process of any of our reserving philosophies of reserving processes? Absolutely no. We 55:03 55 minutes, 3 seconds continue to maintain prudence. We continue to maintain margins uh for any levels of uncertaintity that we see in 55:11 55 minutes, 11 seconds any of the book and more so in the context of motor third party which has got a longtail uh uh longtail periods of 55:18 55 minutes, 18 seconds loss development. So hence to that extent uh that's in response to the point on motor third parties. uh to your first point uh or to to the on the first 55:27 55 minutes, 27 seconds question with respect to the 49 crination in the value of investments. I think this is what I kind of uh mentioned even as a part of the opening 55:34 55 minutes, 34 seconds uh transcript. Uh we have a policy on impairment of investments uh that we kind of have in the context of uh equity 55:42 55 minutes, 42 seconds investment specifically and consequent to what we have seen the market conditions getting exhibited in quarter four of this year. We have obviously 55:50 55 minutes, 50 seconds valuated stocks that we hold and bases the policy that we have we have done an impairment of about 49 crores. All of 55:57 55 minutes, 57 seconds this 49 crores is in with respect to the policy on dimination in the value of equity investments. 56:02 56 minutes, 2 seconds Yeah. Okay. So now the uh CV growth I think you're absolutely right. Uh it's done better but there are you know 56:10 56 minutes, 10 seconds multiple moving parts. I don't want to get into details. We can do it probably when we meet a vinach uh and talk about it. uh we've done better but the overall 56:19 56 minutes, 19 seconds contribution of CV to the book has still been range more at 22%. 56:23 56 minutes, 23 seconds uh you see multiple you know things and there's one more aspect that's the cost of acquisition that comes into play and if we see moderation we see an 56:31 56 minutes, 31 seconds opportunity we are also scanning the market adding new vectors and something looks viable we end up doing it we've also created a significant edge with the 56:40 56 minutes, 40 seconds with the market through a fleet management system which we are working for last almost uh you know 18 to 24 months and that has also started giving 56:48 56 minutes, 48 seconds us some bit of an advantage uh as to what we can do in commercial vehicles uh it's it's overarching it's still come 56:55 56 minutes, 55 seconds range bound and we do believe that the overall growth in CV market also for H2 was at a reasonable level which we have 57:04 57 minutes, 4 seconds given in the numbers in the details which also again presented us with an opportunity to do what is required uh overall on the practice side if you see 57:12 57 minutes, 12 seconds where ICS and Lombard is certainly private car and two-heer is uh our you know our strength but CV we continue to 57:22 57 minutes, 22 seconds uh exhibit uh a lot more intensity but the outcome used to be moderate uh for us and for last uh couple of quarters 57:32 57 minutes, 32 seconds it's come into play and I sincerely hope that we'll have a similar trend going forward next year or this year rather 57:41 57 minutes, 41 seconds thank you thank you thank you our next question comes from the line of Nishan Chawat from Kotup 57:50 57 minutes, 50 seconds please go ahead Hi. Uh this is slightly open-ended. Uh uh the regulator is uh you know looking 57:59 57 minutes, 59 seconds at uh uh you know newer set of guidelines on commissions uh you know probably capping commissions or 58:06 58 minutes, 6 seconds deferring them uh you know assuming that you know this kind of leads to some amount of tightening. How do you see 58:14 58 minutes, 14 seconds this impact on the industry and for yourself? uh nish I think we've always maintained you know uh an an environment 58:21 58 minutes, 21 seconds with uh where the regulator enforces it in the past also we have said that there are quite a few players who have sought dispensation or have not followed the 58:29 58 minutes, 29 seconds guideline and that does not occur well any tightening on a uniform basis across the industry uh would place ICSL 58:38 58 minutes, 38 seconds at a significant advantage uh uh because we've remained within the limits of expense of management and uh if others 58:45 58 minutes, 45 seconds fall in this we can only see uh better time ahead for us as an industry. the the only thing that remains is uh it 58:52 58 minutes, 52 seconds should be practiced across the industry at a uniform bas on a uniform basis and so it's a welcome sign uh if it comes 59:02 59 minutes, 2 seconds out we always also mention the fact that we believe the expense of management should be on a single slab basis so that 59:09 59 minutes, 9 seconds there's clarity of execution and let the market forces decide as to what works for each one of them every single 59:16 59 minutes, 16 seconds business line so so what is the latest in terms of you know regulatory engagement on EOM. Is there any revision expected around the corner along with this separately? 59:27 59 minutes, 27 seconds We can we can only say that whatever is accessed by each one of you is what we access and the we await for what the 59:35 59 minutes, 35 seconds regulator has in mind. We don't want to do any second guessing but uh any tightening on account of that would be welcome by us because it puts the 59:43 59 minutes, 43 seconds industry in uh good path with respect to policy holder and also for us as an institution. 59:51 59 minutes, 51 seconds Got it. Got it. Thank you very much and all the best. Thank you. 59:56 59 minutes, 56 seconds Thank you ladies and gentlemen. We will take that as a last question for today. I would 1:00:04 1 hour, 4 seconds now like to hand the conference over to Mr. Sanjie Mantri for closing comments. Over to you sir. 1:00:10 1 hour, 10 seconds Thank you so much for joining in. Uh we look forward to the new financials the renewed hope. We've definitely as a team 1:00:18 1 hour, 18 seconds uh been excited as to how we've been able to close H2 over H1 and more so Q4 over the rest of it. Uh we are positive 1:00:27 1 hour, 27 seconds in terms of how things can work out for general insurance industry at large and with the reforms that the regulator has 1:00:33 1 hour, 33 seconds put in place. Uh but at the same time we hope that the the world moves to a in a in a much more you know peaceful manner 1:00:42 1 hour, 42 seconds in times to come. So thank you so much and all the best to each one of you for joining in. Thank you so much. Thank you. 1:00:50 1 hour, 50 seconds Thank you on behalf of ICICI Lumbard General Insurance Company Limited. That concludes this conference. Thank you all 1:00:57 1 hour, 57 seconds for joining us. You may now disconnect your lines.