Sbi Life Insurance Company Ltd — Q4 FY26

Sbi Life Insurance Company Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=8mcuLF2sT28 Published: 3 weeks ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the SBI Life Insurance Company Limited Q4 FY26 earnings 0:08 8 seconds conference call. As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:20 20 seconds Should you need assistance during this conference, please signal an operator by pressing the star key followed by zero on your touchstone phone. Please note that this conference is being recorded. 0:32 32 seconds I now hand the conference over to Mr. 0:34 34 seconds Amit Jingan, managing director and CEO SBI Life for his opening remarks. Thank you and over to you sir. 0:44 44 seconds Good afternoon everyone. It is a pleasure to welcome you all for the results update call of SBI life 0:51 51 seconds insurance for the year ended March 31, 2026. 0:55 55 seconds We appreciate and thank you for your valuable time and efforts in analyzing the results and participating in the earnings call. 1:05 1 minute, 5 seconds Updates on our financial results are available on our website as well as on the websites of both the stock exchanges. 1:14 1 minute, 14 seconds Along with me, Mr. Sanjit Sarangi, president and CFO. Shri Santos Chako, 1:21 1 minute, 21 seconds President Business Strategy. Shri Suubendu Bal, President and Chief Risk Officer. Shri Pitesh Chave, President 1:28 1 minute, 28 seconds and appointed actury and Miss Ismita WHMA, senior vice president finance and investor relations are present here. 1:39 1 minute, 39 seconds SBI Life delivered a strong performance during the year, demonstrating resilience in a dynamic operating 1:46 1 minute, 46 seconds environment. This was supported by a balanced approach to both product and distribution mix. The company maintained 1:54 1 minute, 54 seconds an optimal blend of protection and savings products aligned with the evolving customer needs while leveraging 2:02 2 minutes, 2 seconds a well diversified multi- channelannel distribution strategy spanning bank assurance agency and digital platforms. 2:11 2 minutes, 11 seconds This enabled consistent and broad-based growth across segments. 2:17 2 minutes, 17 seconds The year marked a significant phase for the life insurance industry driven by key regulatory developments including 2:24 2 minutes, 24 seconds GST exemptions measures supporting long-term sectoral growth and the regulators announcement 2:32 2 minutes, 32 seconds on transition to the Indian accounting standards framework aimed at enhancing transparency and quality of financial trans information. 2:44 2 minutes, 44 seconds The company has adopted a phased and well-governed approach to end as transition and proposes to seek 2:51 2 minutes, 51 seconds regulatory forbearance for an adoption from April 1, 2027 with comprehensive preparatory measures already initiated. 3:01 3 minutes, 1 second Looking ahead, the company remains confident in the long-term growth potential of the life insurance sector 3:07 3 minutes, 7 seconds in India and its ability to navigate the evolving landscape with continued focus on profitable and sustainable growth. 3:19 3 minutes, 19 seconds Now, let me give you some key highlights for the year ended 31st March 2026. 3:26 3 minutes, 26 seconds New business premium stands at rupees 425.5 billion with a growth of 20% and private market share of 21.4%. 3:38 3 minutes, 38 seconds Individual related new business premium stands at rupees 219 billion with a growth of 13% and private market share of 22.9%. 3:51 3 minutes, 51 seconds Gross return premium stands at rupees 1,2.9 billion with a growth of 19%. 4:00 4 minutes Profit after tax for the current year grew by 2% standing at rupees 24.7 4:07 4 minutes, 7 seconds billion as compared to the previous year. Value of new business stands at rupes 66.7 billion with a growth of 12%. 4:18 4 minutes, 18 seconds VB margin stands at 27.5% for the year ended March 31, 2026. 4:27 4 minutes, 27 seconds Indian embedded value for the company as on March 31, 2026 stands at rupees 87.9 4:36 4 minutes, 36 seconds billion. Our asset center management stands at rupees 4.9 trillion with a 4:42 4 minutes, 42 seconds growth of 9% over last year. solveny ratio of 1.90 as against the regulatory requirement of 1.50. 4:55 4 minutes, 55 seconds We will now update you on each of the key parameters in detail. Let me start with the premium. Individual rated 5:02 5 minutes, 2 seconds premium stands at rupees 219 billion with a yearon-year growth of 13%. while 5:10 5 minutes, 10 seconds retaining our leadership position with a 22.9% private market share and 16.5% 5:18 5 minutes, 18 seconds total market share. It grew by 12.9% 3 years CAGR outperforming the industry average of 8.5%. 5:30 5 minutes, 30 seconds Total new business premium is rupes 425.5 billion with private market share 5:37 5 minutes, 37 seconds standing at 21.4% and total market share is standing at 9.3%. 5:45 5 minutes, 45 seconds Group new business premium stands at rupees 127.7 billion with a contribution 5:51 5 minutes, 51 seconds of 30% in new business premium and yearon-year growth of 39%. 5:59 5 minutes, 59 seconds Renewal premium grew by 19% to rupees 587.3 billion which accounts for 58% of the gross return premium. 6:10 6 minutes, 10 seconds To sum up gross return premium stands at rupees,2.9 billion with a growth of 19% over corresponding previous year. 6:24 6 minutes, 24 seconds Annualized premium equivalent AP stands at rupees 242.7 billion registering a 6:30 6 minutes, 30 seconds growth of 13%. Out of this individual AP stands at rupees 20 221.1 billion with a growth of 13%. 6:42 6 minutes, 42 seconds During the year a total of 22.2 lakh new policies were sold covering 6:49 6 minutes, 49 seconds 22.7 million lives. The growth in some assured reflects a strong consumer confidence and increasing awareness of 6:58 6 minutes, 58 seconds financial protection. Individual and group new business sum assured grew by 7:04 7 minutes, 4 seconds 61% and 34% respectively year on year while rider sum is assured continued to 7:12 7 minutes, 12 seconds expand now accounting for 31% of individual sum is assured. 7:19 7 minutes, 19 seconds The company continues to advance its product diversification strategy through focused and wellsequenced initiatives. 7:28 7 minutes, 28 seconds During the year, product launches were aligned to key customer needs across child plans, protection solution, and 7:36 7 minutes, 36 seconds the nonpar guaranteed segment, resulting in encouraging traction. 7:42 7 minutes, 42 seconds For the year ended March 2026, guaranteed nonpart savings have garnered business of rupees 42.7 billion with a 7:52 7 minutes, 52 seconds contribution of 19% on individual AP basis. ULIP stands at rupes 144.2 8:00 8 minutes billion contributing 65% visa v 70% last year. 8:08 8 minutes, 8 seconds Protection business contributes 9% of APE and stands at rupees 22.4 billion. 8:15 8 minutes, 15 seconds We continue to maintain a strong focus on protection business which remains a key pillar of our growth strategy. The 8:24 8 minutes, 24 seconds protection segment recorded a yearon-year growth of 10% on AP basis. 8:30 8 minutes, 30 seconds Individual protection APE is at rupees 10.3 billion with a growth of 24% as 8:38 8 minutes, 38 seconds compared to the previous year ended March 2025. 8:42 8 minutes, 42 seconds It is noteworthy that the pure protection category saw a strong growth of 122% on an individual AP basis 8:51 8 minutes, 51 seconds reflecting rising awareness and demand for comprehensive financial protection. 8:58 8 minutes, 58 seconds While the individual sum assured in the protection segment grew by 62%. 9:04 9 minutes, 4 seconds Group protection AP stands at rupees 12.1 billion. Credit life AP has grown by 14% and stands at rupees 2.9 billion. 9:17 9 minutes, 17 seconds Individual AP for participating products stands at rupees 17.3 billion with an 9:24 9 minutes, 24 seconds exceptional growth of 133% yi. Also, par segment sum assured has shown a strong growth of 166%. 9:35 9 minutes, 35 seconds Retirement plans assist customers in building a substantial corpus of firms to maintain the desired lifestyle and manage expenses in their golden years. 9:46 9 minutes, 46 seconds Total annuality and pension new business underwritten by the company is rups 86.5 billion. 9:54 9 minutes, 54 seconds Moving to update on our distribution partners with strength of more than 59,000 CIFS. The bank assurance business 10:02 10 minutes, 2 seconds of SBI and RRBs contribute 60% of the total AP business. On an individual AP 10:10 10 minutes, 10 seconds basis, it stands at rupees 141.2 2 billion reflecting growth of 11%. SBI 10:18 10 minutes, 18 seconds branch productivity on individual AP stand on a individual AP terms stands at 10:26 10 minutes, 26 seconds rupees 6.0 million for the year registering a growth of 10%. 10:33 10 minutes, 33 seconds As on 31st March 2026, agency individual AP stood at rupees 68.6 6 billion 10:41 10 minutes, 41 seconds growing 15% with agent productivity at rupees 2.6 lakhs. The channel witnessed 10:49 10 minutes, 49 seconds a shift in product mix. Non-UIP share increased from 34% to 39% for FY26 10:57 10 minutes, 57 seconds supported by robust 76% growth in agency individual sums issued. The company 11:04 11 minutes, 4 seconds added more than 1 lakh 20,000 agents on a gross basis. We opened 120 new branches this year. 11:13 11 minutes, 13 seconds This expansion is aligned with our vision to create infrastructure that supports the long-term development of 11:20 11 minutes, 20 seconds our agency channel. The other channels direct corporate agents, other bank 11:27 11 minutes, 27 seconds brokers, online and web aggregators grew by 22% and contribute 11% of total AP. 11:36 11 minutes, 36 seconds Banks other than SBI group are also growing at 22% on total AP basis. We are 11:44 11 minutes, 44 seconds investing in building our online business channel for the current year. 11:48 11 minutes, 48 seconds This channel has grown by 47% on AP basis. Moving to updates on profitability. 11:57 11 minutes, 57 seconds Our financial performance reflects the impact of GST and the revised labor law. 12:03 12 minutes, 3 seconds Taking these factors into account, the company's profit after tax for the year ended 31st March 2026 stands at rupees 12:12 12 minutes, 12 seconds 24.7 billion. Excluding this impact, profit after tax for the year ended 31st 12:19 12 minutes, 19 seconds March 2026 would have stood at rupees 31.2 billion with a growth of 29%. 12:28 12 minutes, 28 seconds Our solveny ratio remains strong at 1.90 as against regulatory requirement of 1.50. 12:37 12 minutes, 37 seconds Value of new business stands at rupees 66.7 billion reflecting 12% growth driven by 12:46 12 minutes, 46 seconds both volume growth and favorable shift in product mix. Despite the impact of GSC, we have sustained a healthy margin 12:55 12 minutes, 55 seconds of 27.5% for the year ended 31st March 2026. 13:02 13 minutes, 2 seconds Excluding GST impact, VB would have been rupees 70.3 billion representing 18% 13:09 13 minutes, 9 seconds growth with a VB margin of 29% and improvement of 150 basis points. 13:17 13 minutes, 17 seconds Embedded value for the company as on March 31, 2026 stands at rupees 87.9 13:25 13 minutes, 25 seconds billion with a growth of 15% over previous year. Excluding the one-time 13:31 13 minutes, 31 seconds impact, EV stands at rupees 813.6 billion with a growth of 16%. Return on 13:40 13 minutes, 40 seconds embedded value stands at 19.7% with embedded value operating profit 13:47 13 minutes, 47 seconds standing at rupees 138.6 billion. 13:52 13 minutes, 52 seconds Coming to operational efficiencies, our opex ratio stands at 6.1% 13:58 13 minutes, 58 seconds and total cost ratio stands at 10.6% 6% for the year ended March 31, 2026 as 14:06 14 minutes, 6 seconds compared to 5.3% and 9.7% respectively for the year ended March 31, 2025. 14:16 14 minutes, 16 seconds With respect to persistency of individual regular premium 13th and 49th month persistency stand at 87.9 14:26 14 minutes, 26 seconds and 69.1% showing an improvement of 53 and 107 basis points respectively. 14:36 14 minutes, 36 seconds As mentioned in my opening remarks, I set under management stand at rupees 4.9 trillion as at March 31st having growth at 9%. 14:49 14 minutes, 49 seconds DPM settlement ratio stands at 99.4% for the year ended March 31, 2026. 14:58 14 minutes, 58 seconds Our missselling ratio stands at 0.02% which is one of the lowest in the private industry. And this is achieved 15:07 15 minutes, 7 seconds through our consistent approach adopted at the company to ensure right selling to the customers. 15:16 15 minutes, 16 seconds Digitalization is transforming the life insurance industry enabling us to deliver enhanced services and a more 15:24 15 minutes, 24 seconds seamless experience to our customers. As we embrace the digital transformation, we remain committed to innovation and 15:33 15 minutes, 33 seconds excellence, ensuring that we stay ahead in an increasingly competitive landscape. 15:40 15 minutes, 40 seconds The company continues efficient usage of technology for simplification of processes with 99.7% 15:48 15 minutes, 48 seconds of the individual proposals being submitted digitally. 15:54 15 minutes, 54 seconds 57% of the individual policies are processed through automated underwriting. 16:02 16 minutes, 2 seconds In conclusion, by embedding resilience and continuous improvement at the core of our culture and by strategically 16:11 16 minutes, 11 seconds strengthening our key channels, we are well positioned for sustained growth. 16:16 16 minutes, 16 seconds Our unwavering commitment to delivering exceptional customer service not only deepens client relationships but also 16:25 16 minutes, 25 seconds enforces our reputation as a trusted and leading force in the market. Thank you all and now we are happy to take any questions that you may have. 16:38 16 minutes, 38 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 16:47 16 minutes, 47 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question. 16:58 16 minutes, 58 seconds Ladies and gentlemen, we will now wait for a moment while the question queue assembles. 17:06 17 minutes, 6 seconds Our first question comes from the line of Avin Singh from MK Global. Please go ahead. 17:13 17 minutes, 13 seconds Yeah, good evening. Uh, congratulations on great set of numbers. Uh, thanks a lot for the opportunity. Uh, couple of questions. Uh, the first one, if I see, 17:22 17 minutes, 22 seconds you know, persistency has done well across the cohort barring 61st month where it has seen a drop likely it would 17:29 17 minutes, 29 seconds be coming out of some eulip during the covid time the policy sold and possibly that is the explanation. But on that 17:37 17 minutes, 37 seconds context in that context I wanted to know is that operating action changes that are kind of a negative in the VM work 17:43 17 minutes, 43 seconds are they kind of auh leading to some bit of a reset in periodicity assumptions or 17:50 17 minutes, 50 seconds uh you know uh there are other factor to to behind this marginal operating uh uh uh changes. So that's one. Second again 17:59 17 minutes, 59 seconds if I look back how kind of a uh you know you have delivered over the last 10 years and you have presented in a slide I mean in terms of your AP market share 18:08 18 minutes, 8 seconds or individual uh AP market share or individual compounding but if we again we were to look back those 10 years and 18:16 18 minutes, 16 seconds break it into five and five possibly the first five of course coming from a lower base had a a very very strong growth on 18:23 18 minutes, 23 seconds all parameters including the kind of a margin expansion and all. Now if we look back uh uh you know now when the margin 18:32 18 minutes, 32 seconds is more or less stable but expansion part is difficult and of course the base of growth and everything is coming into 18:39 18 minutes, 39 seconds picture uh the growth is also going to be measured in this backdrop if I kind of I were to ask I mean what would be 18:47 18 minutes, 47 seconds your aspiration over the next five years again I'm not coming up to quarterly volatility but if I'm saying that okay what would be the number in terms of 18:55 18 minutes, 55 seconds your retail AP growth or kind of a where the VNV or margin is compound for the next five years what do you have to say 19:01 19 minutes, 1 second okay thanks I'm the first question to 19:10 19 minutes, 10 seconds person you are right that there is a person drop on account of the business done in the covid period so we know that 19:18 19 minutes, 18 seconds as far as assumption is concerned we as we always say that we we keep this uh external item separately and look into 19:26 19 minutes, 26 seconds the long-term um view. So, so as and we always keep mentioning that year and we 19:34 19 minutes, 34 seconds keep refine our assumption looking to reflect the current experience. So, there are some u changes in the mortality some on the person. We also 19:42 19 minutes, 42 seconds seen some improvement coming on account of the uh long-term uh protection improvement on the person. 19:49 19 minutes, 49 seconds So, that does reflect in the uh B&B assumption. But in this 50 basis point 19:56 19 minutes, 56 seconds is not a significant point. So not no I will say there are no significant change in assumption is a combination or minor 20:05 20 minutes, 5 seconds refinement across all the uh assumptions including demographic as well as expenses and other parties. 20:14 20 minutes, 14 seconds Coming to growth prospects, uh you are aware that the company 3ear CAGGR is at 20:21 20 minutes, 21 seconds uh 12.9% and last financial year we have grown by 13.2%. 20:28 20 minutes, 28 seconds uh going forward also we uh intend to maintain the growth rate at around 14% 20:35 20 minutes, 35 seconds which is which has been uh our CAGR for last 3 to 5 years and uh we will 20:42 20 minutes, 42 seconds continue to maintain this kind of growth rate uh in coming year also. 20:49 20 minutes, 49 seconds Okay. Okay. Then lastly if I can ask one more I mean with this part of course in your mix it is still a a smaller portion 20:57 20 minutes, 57 seconds but uh typically you have been more like a protection and guaranteed nonpart what is I mean your kind of a your own intent 21:05 21 minutes, 5 seconds or what is the demand factor that is kind of a bringing this uh a strong growth in par 21:13 21 minutes, 13 seconds product portfolio growth of this year has uh come on a lower base uh of the last year. Last year we had uh just a 21:21 21 minutes, 21 seconds couple of products. Uh this year we launched new products in the PAR category and we got very good customer 21:29 21 minutes, 29 seconds response uh in this category that has resulted in a very robust growth in the 21:35 21 minutes, 35 seconds PAR segment in the current year. Uh we have been a company which had dominant 21:42 21 minutes, 42 seconds sales of ULIP in the past. But as you are aware you have been attending these analyst meet for last couple of years. 21:51 21 minutes, 51 seconds Our focus has been to improve the product mix in favor of uh nonulip products also. And if you look at the 22:00 22 minutes product launches in last couple of years we have very good product launches uh in all three uh non-par segment par segment 22:08 22 minutes, 8 seconds and also in the protection segment. So uh this is our effort to improve uh the profitability of uh the company also uh 22:18 22 minutes, 18 seconds by having a healthy product mix and we are happy that uh our strategy and our product launches are helping achieve this objective. 22:31 22 minutes, 31 seconds Thank you. Thank you. 22:34 22 minutes, 34 seconds Thank you. Our next question comes from the line of Supraim Dutta from Jeff. Please go ahead. 22:42 22 minutes, 42 seconds Hi. Uh, thanks a lot for the opportunity. Hello. Can you hear me? Uh, can you please be louder? 22:50 22 minutes, 50 seconds Yeah. Uh, is this better? Yeah. 22:54 22 minutes, 54 seconds Yeah. Uh, so thanks a lot for the opportunity. My first question is on you know what are you seeing with respect to customer behavior over the last two 23:02 23 minutes, 2 seconds months given you know you have been typically a ULIP heavy company and last two months we have seen pretty significant volatility in the equity 23:11 23 minutes, 11 seconds markets um just wanted to understand how are customers reacting uh to that volatility and you know how is that shaping ULIP demand and how in this 23:20 23 minutes, 20 seconds environment hence uh looking into FI27 how are you thinking about the product mix and product strategy um given you 23:28 23 minutes, 28 seconds know you have a growth aspiration of 14% like you highlighted. So that's the first question. Second you know um again 23:36 23 minutes, 36 seconds um you know like you rightly pointed out at the start that you know you have been looking at changing the product mix for the last two years in favor of nonpar 23:44 23 minutes, 44 seconds products. just wanted to understand what is the share of protection now within SBI bank versus two years back and what 23:53 23 minutes, 53 seconds proportion of these policies you know overall in the SBI channel are being sourced through you yono if you could give us some color there that would be 24:01 24 minutes, 1 second very helpful thank you so talking about the uh customer behavior in last couple of months there 24:11 24 minutes, 11 seconds uh you are aware the uh geopolitical events that are uh taking place and that 24:18 24 minutes, 18 seconds definitely is having some impact on the market on the performance of the equity market also and uh there are uh effects 24:25 24 minutes, 25 seconds seen on the fixed income side also but at the same time if you look at the equity market there are robust uh 24:34 24 minutes, 34 seconds inflows into the mutual funds also and overall people wherever they are seeing value they are investing uh that is what 24:43 24 minutes, 43 seconds we have uh seen in the company uh our growth in February and March has been uh 24:51 24 minutes, 51 seconds decent enough and we have been able to meet uh our guidance uh for the year uh despite these events. So going forward 25:01 25 minutes, 1 second also we uh expect to continue to have a good uh sales growth in the coming 25:09 25 minutes, 9 seconds quarter in coming year as well depending of course upon uh monthto-month variation and we do not uh pay much 25:17 25 minutes, 17 seconds attention to monthtomonth and we like to keep our focus on our uh yearly goals and midterm goals. So uh that is 25:26 25 minutes, 26 seconds regarding your uh first question SBI our share is 4% 4% of shares pure 25:34 25 minutes, 34 seconds protection credit life is over and above that uh and broadly that number has been flat uh but the mix has changed 25:43 25 minutes, 43 seconds favorably from trop towards higher proportion of pure protection so uh the premium numbers are not seen as a 25:51 25 minutes, 51 seconds proportion obviously absolute numbers have grown but share has remained broadly constant but some assured we have seen significantly higher results 26:00 26 minutes in the SD number of policies also number of policies and some assured also basically because of protection you have significantly higher 26:09 26 minutes, 9 seconds understood and you know if I could you know ask one last question so on the ULIP side uh you know are you selling 26:16 26 minutes, 16 seconds the higher some assured ulips as well you know the 20 30x some assassured uh products or is it the you know you're 26:23 26 minutes, 23 seconds selling only the PL vanilla 10x cover products you know you could give us some clarity there. 26:30 26 minutes, 30 seconds No as of now we do not have uh hired some assured ulips. 26:35 26 minutes, 35 seconds Okay but do you plan to launch that this year? 26:38 26 minutes, 38 seconds We will look at the opportunity and decide in due course. Got it. Thank you. 26:47 26 minutes, 47 seconds Thank you. Our next question comes from the line of Shria Shawani from Namira. Please go ahead. 26:54 26 minutes, 54 seconds Yeah, thank you for the opportunity. Um, I had uh two questions. First is on the 27:01 27 minutes, 1 second uh banka channel uh sales in the last quarter in the fourth quarter. Um it it's actually degrone y uh is it to do 27:10 27 minutes, 10 seconds with the fact that March may have been March is was a slower month for us um uh was it coming from that um or was there 27:19 27 minutes, 19 seconds any other reason? Second question is uh there was a uh media interview by the department of financial services 27:26 27 minutes, 26 seconds secretary where he yet again raised the topic of uh banks should be open architecture etc etc. Um do we have is 27:35 27 minutes, 35 seconds there anything you can share with us because um um obviously it's a big part of our distribution um uh mix and also 27:44 27 minutes, 44 seconds uh what is our strategy on the distribution channel in case uh such a decision is finally taken by or mandated by the government. 27:54 27 minutes, 54 seconds So first uh talking about the Q4 there uh you would have noticed that the entire insurance sector had a sluggish 28:03 28 minutes, 3 seconds kind of Q4 and uh that may be related to various events uh taking place geopolitically across the globe and our 28:12 28 minutes, 12 seconds growth coming to our growth uh in Q4 uh as I already said that instead of looking monthto-month and quarter 28:20 28 minutes, 20 seconds toquarter growth we like to focus on the annual numbers and we are happy that we have been able to uh meet more or less 28:29 28 minutes, 29 seconds our uh annual guidance of 13%, we have maintained our uh 3ear cagr slightly higher than that in fact and uh banka 28:38 28 minutes, 38 seconds channel also has been able to uh meet our internal uh budget of for set for 28:45 28 minutes, 45 seconds the uh year. uh regarding your uh other uh query uh I would like to emphasize 28:53 28 minutes, 53 seconds that uh SBI life is now a 25 year old company and uh in this long journey we 29:01 29 minutes, 1 second have established various very robust system uh and procedure and we have seen 29:08 29 minutes, 8 seconds various regulatory changes coming at different point of times. uh you will appreciate that the company has been a 29:16 29 minutes, 16 seconds able to navigate all these regulatory changes with ease and we have been growing at a consistent rate. Uh we are 29:25 29 minutes, 25 seconds not aware about uh this particular topic as of now. Uh but we are very sure that 29:31 29 minutes, 31 seconds any uh regulatory ch uh changes we will be able to uh meet with a robust response. 29:41 29 minutes, 41 seconds Right. and and sir any just just strategy on other channels the I I know you've added a lot of agents and um new 29:49 29 minutes, 49 seconds branches but on the other line item um what are the channels we would incrementally be focused on irrespective 29:56 29 minutes, 56 seconds of what happens with the banker channel so agency channel uh for the last two years we have been uh strengthening a 30:04 30 minutes, 4 seconds lot and in fact the contribution of agency channel in our uh distribution mix has improved improved in last couple 30:12 30 minutes, 12 seconds of years. In addition to the agency channel where we are opening more number of branches, adding more agents, having 30:20 30 minutes, 20 seconds better productivity, we are also uh focusing upon our emerging business channel. Although as of now it is a um a 30:29 30 minutes, 29 seconds small channel but the growth rate and the investment being made in this uh particular channel are giving us good 30:37 30 minutes, 37 seconds result. We will continue to invest in our direct channel uh on our website uh and direct channel sales and we are sure 30:47 30 minutes, 47 seconds that this is also going to uh be a good formidable force in coming future. 30:55 30 minutes, 55 seconds Got it. Uh this is useful. Thank you and all the best. 30:59 30 minutes, 59 seconds You thank you. Our next question comes from the line of Pra Jen from Motila Los Financial Services. Please go ahead. 31:10 31 minutes, 10 seconds Yeah. Hi. Uh a few questions. Firstly, uh you know just extending the previous question. Is there has there been any 31:17 31 minutes, 17 seconds communication uh from RBI in any form about open architecture or in form of uh offering 31:25 31 minutes, 25 seconds more products at the bank assurance channel? uh because the interview kind of stated that uh that there has been 31:33 31 minutes, 33 seconds some communication or request gone to uh the banks to adopt open architecture. Uh 31:40 31 minutes, 40 seconds second is if I look at your cost ratio right from FI24 your OPEX was at 4.9 has gone up to 6.1 31:48 31 minutes, 48 seconds total was 8.9 has gone up to 10.6 six uh and within that main thing uh I think 31:56 31 minutes, 56 seconds the product mixes product mix shifts possibly to a certain extent but also you have opened more branches and uh you 32:03 32 minutes, 3 seconds know the agency channel has seen a very stronger growth so you know how do you see the cost ratios moving from here on whether there is any uh you know do you 32:12 32 minutes, 12 seconds think that you'll be capped at 10.6 six or this ratio will kind of keep moving uh higher and thirdly when while you 32:20 32 minutes, 20 seconds talk about a 14% kind of AP growth what would be your thoughts on margins going ahead with respect VNB margins going 32:29 32 minutes, 29 seconds ahead and those are my three questions thanks so RBI guidelines are uh draft 32:36 32 minutes, 36 seconds guidelines in fact are in public domain for last couple of months and they are supposed to come in force from 1st of 32:43 32 minutes, 43 seconds July I it does not talk of open architecture and uh we do not have any additional information other than uh 32:51 32 minutes, 51 seconds what is in the public domain. Uh as far as cost ratio uh is concerned uh the impact on cost in this particular year 33:00 33 minutes last financial year is substantially coming from uh the GST impact uh as I already talked in my uh opening remarks. 33:09 33 minutes, 9 seconds The other factors regarding opening more number of branches having higher uh IT spends for customer ease and 33:18 33 minutes, 18 seconds the other processes and spends on training our agency force and our CIF et sector. Uh those are the regions which 33:27 33 minutes, 27 seconds have resulted in slightly higher uh cost ratios. But going forward I think these things have already panned out and other 33:36 33 minutes, 36 seconds than uh strengthening it there is no other major expense planned in the near future. 33:47 33 minutes, 47 seconds Uh so my just that extending that question uh you know uh so uh GST is now 33:55 33 minutes, 55 seconds kind of a GST is not one time right GST is going to be there for some time know it's a permanent thing right unless we 34:03 34 minutes, 3 seconds kind of really do some cost savings which will bring down our costs right so from that perspective how do you see the 34:11 34 minutes, 11 seconds cost and my last question was on BNB margin trajectory going ahead so that is what I said that uh now the 34:18 34 minutes, 18 seconds GST is already in this cost of 10.8%. So that has already been built in we do not 34:26 34 minutes, 26 seconds see costs going higher on account of this particular thing. uh Pesh would you like to talk about the margin? 34:32 34 minutes, 32 seconds So I think the margin also if you see the we have reflected the 27.5 margin of difference we already accounted for all 34:40 34 minutes, 40 seconds the impact of GST and last time also we mentioned that we working to enhance the product mix and profile mix and we are 34:49 34 minutes, 49 seconds very sure that profile enhancement in the profile mix will able to absorb this uh impact of GST. Even you see the VM 34:57 34 minutes, 57 seconds work closely we have offset so the the beta product makes and 35:04 35 minutes, 4 seconds some benefit coming from the inest moment has able to offset this impact of GST so that's the reason 27.5 we uh 35:13 35 minutes, 13 seconds refracting into as MDR also mentioned that we are expensive reflected and we are 35:20 35 minutes, 20 seconds uh looking to better product from current level with the growth of 14% %. 35:26 35 minutes, 26 seconds So we expect that our margin will be continue to be uh similar range that we maintain about 26 to 28% range that we 35:35 35 minutes, 35 seconds saying and our interview is to report the margin uh above 27% kind of things. 35:42 35 minutes, 42 seconds You will appreciate that despite the uh GST impact and other one-time impacts uh we have been able to report VB margin at 35:51 35 minutes, 51 seconds the higher end of the range of 26 to 28% that we had uh set at the start of the 35:58 35 minutes, 58 seconds financial year. So we stick stuck to our range and we will continue to maintain that kind of margins in coming years also. 36:08 36 minutes, 8 seconds Absolutely. Commendable sir there but you know with all the cost with all the one-time impacts in the margins in this 36:15 36 minutes, 15 seconds year and now we moving more favorably to a wanting to move our products more favorably uh should we shift our guidance to 27 to 29 versus 26 to 28. 36:27 36 minutes, 27 seconds So I think we said 27 to 28 and we will stick to that. Got that. Thank you so much sir. 36:37 36 minutes, 37 seconds Thank you. Our next question is from the line of Madukar Ladha from JP Morgan. Please go ahead. 36:45 36 minutes, 45 seconds Hi uh uh good evening. Uh congratulations on good numbers in a sort of difficult operating environment. 36:52 36 minutes, 52 seconds So first question in the EV walk we see a very strong positive uh operating uh variance. 37:01 37 minutes, 1 second uh if you can quantify uh how much is expenses uh persistency and mortality 37:09 37 minutes, 9 seconds and if we have such a strong positive variance then why are we strengthening uh our assumptions u you know in in the 37:19 37 minutes, 19 seconds VNB. So I I I wanted to get a better sense of why are we seeing this uh divergence 37:26 37 minutes, 26 seconds uh in EV and then in uh VND. Um and uh second our solvency 37:35 37 minutes, 35 seconds uh is now at about 190% we work at a 180% uh solveny. So in terms of uh 37:43 37 minutes, 43 seconds capital uh what are your thoughts uh you know uh any additional need and how will 37:50 37 minutes, 50 seconds you sort of uh bridge that gap if if uh required. Uh yeah those would be my two questions. Thanks. 38:00 38 minutes So first on your question on the EV work that we always mention that as a company we 38:07 38 minutes, 7 seconds said our assumption we always have the longer term view and we ensure that it is sustainable in longer term uh and that's always give 38:17 38 minutes, 17 seconds us the very parity variance and if you see year on year we keep reporting the parity variance uh by we have quality of 38:25 38 minutes, 25 seconds businesses and this is not coming because we have using different conservative our food and resumption. This is because our quality of business uh is reflecting 38:34 38 minutes, 34 seconds much better than what we look into. So if if I uh say most of the quality variance coming on account of 38:42 38 minutes, 42 seconds the mortality, profit and person and lesser on the uh uh expenses. So that's 38:49 38 minutes, 49 seconds a good question coming from uh if I link with the VNB strengthening is 2% is not 38:56 38 minutes, 56 seconds a significant uh strengthening happen and you appreciate that the products that we currently looking into in 39:04 39 minutes, 4 seconds selling in the new business and what has been reflected in our existing book both are significantly slightly different is 39:11 39 minutes, 11 seconds not exactly same. So it may not be fair to correlate the assumptions in the VNB with that of operating variance in EV 39:21 39 minutes, 21 seconds generally refract. So there are maybe one or two product line uh which we have tried to uh 39:29 39 minutes, 29 seconds increase or promote their minor refinement we did in the uh uh assumption for VNB and that's also I 39:38 39 minutes, 38 seconds will say it is very emerging trends and as a company we always uh look into and adopt this assumption so that's 39:47 39 minutes, 47 seconds you see the VNB and EV as far as solvency is concerned And uh you see the company is uh generating uh 39:56 39 minutes, 56 seconds good cash across and strengthening its capital waste through uh internal approvals only. We have not raised any 40:03 40 minutes, 3 seconds fresh capital uh for strengthening our uh margin and this is efficient use of 40:10 40 minutes, 10 seconds capital that is uh resulting in uh solvency of 1.90 against uh the regulatory requirement of 1.50. 40:21 40 minutes, 21 seconds uh going forward uh uh we are assessing the impact of uh uh the IND as uh RBC 40:30 40 minutes, 30 seconds also that is uh being discussed at the regulator level regulatory level for introduction in uh uh near future. So we 40:39 40 minutes, 39 seconds are keeping a very sharp eye and we will take appropriate calls at appropriate time. 40:45 40 minutes, 45 seconds Just one final followup. Uh can you split the economic variance uh between uh your debt and equity? 40:55 40 minutes, 55 seconds So see our economic variance is more or less uh the sensitivity that we explain EV. So majorly you see the equity fall 41:04 41 minutes, 4 seconds and so major share coming from the equity and other part is coming from the bond. So if you total 3.66 66 if you say 41:13 41 minutes, 13 seconds around two two 2.15% coming from the equity and balance is from the bond. 41:20 41 minutes, 20 seconds Understood. Understood. Got it. Uh all the best. Thank you. 41:28 41 minutes, 28 seconds Thank you. Our next question is from the line of Sankit Koda from Aendis Spark. Please go ahead. 41:36 41 minutes, 36 seconds Yeah. Uh thank you for the opportunity. 41:38 41 minutes, 38 seconds uh sir you you you said that our growth most likely will be in the range of 14 odd percentage for next few years uh but 41:46 41 minutes, 46 seconds but if I look at your bank growth uh maybe for last 3 years uh it has been stuck in that range of 9 to 11 odd 41:54 41 minutes, 54 seconds percentage so so just wanted to understand if the 14% growth has to be delivered then then there should be heavy lifting of the growth from the 42:02 42 minutes, 2 seconds other channels either agency or other relationships so so just wanted to understand if you want to give a color of that 14 that 11% trend to continue in 42:11 42 minutes, 11 seconds bank and and and and it will be largely driven by the other channels in in a way to to to to drive the growth. That's that's my first question sir. 42:21 42 minutes, 21 seconds So as already being guided for last two years we have been telling that we are strengthening our uh agency channel by 42:28 42 minutes, 28 seconds opening more number of branches by having more agents by improving agency uh agents productivity etc. So the clear 42:37 42 minutes, 37 seconds focus is on further strengthening the agency channel and uh tapping all the opportunities that are available uh in 42:45 42 minutes, 45 seconds this particular channel. We already have a robust share of uh agency business in the industry and we want to further 42:52 42 minutes, 52 seconds strengthen it. Uh we have al also guided that in the distribution mix also we would like to have uh greater share of 43:00 43 minutes agency channel and that is al already taking place. If you look at the uh distribution mix in last couple of 43:07 43 minutes, 7 seconds years, so this 14% will be an optimum mix of the agency growth and the banker growth. 43:15 43 minutes, 15 seconds So then is it fair to say that the bank banker growth in that range of 10 to 11 is is is the realistic number going ahead for for for us? 43:25 43 minutes, 25 seconds I mean uh we uh do not diverge the different channels growth targets as such. 43:34 43 minutes, 34 seconds uh but uh this is the kind of base that we have been growing in despite all the circumstances and all and you can say that 43:42 43 minutes, 42 seconds no sir the reason I'm asking yes sir the reason I'm asking this question is that uh if I assume uh uh 43:49 43 minutes, 49 seconds the the the nominal GDP growth or or uh uh inflation growth uh with the natural increase in the ticket size that will be 43:56 43 minutes, 56 seconds in the range of 8 to 10 percentage so which means that a penetration in the banka channel largely being achieved the the growth growth in Bangkok will be 44:04 44 minutes, 4 seconds predominantly driven by the ticket size increase. That's that's that's the reason I was asking that more realistic growth penetration being largely achieved. It's more more ticket size 44:13 44 minutes, 13 seconds growth like 8 to 10 percentage or 10 to 11% is kind of a number. 44:17 44 minutes, 17 seconds No, our focus is also on the protection side. So I will not say that the growth is coming only from the ticket size increase. If you look at the number of 44:26 44 minutes, 26 seconds policies also uh the protection segment is growing where the ticket size is very small and uh there also we are getting 44:34 44 minutes, 34 seconds substantial number of uh policies that has resulted in good protection growth also. So uh it uh we do not look at from 44:45 44 minutes, 45 seconds quarter to quarter and monthtomonth number but we uh set our annual targets and medium-term targets and uh go around 44:53 44 minutes, 53 seconds doing business on those lines and the end remains to further strengthen the penetration of customer base of bank. We are not saying we have 45:02 45 minutes, 2 seconds saturated the customer base of bank. The opportunities are yeah opportunities are uh there and we are tapping all the available opportunities in the best possible manner. 45:13 45 minutes, 13 seconds Understood sir and and and and my second question is again on the margin. Uh sir sir at the start of the year you guided 45:19 45 minutes, 19 seconds 26 to 28 but but at the start of the year you did not have a GST impact. Uh but if you if I negate the GST impacted 45:26 45 minutes, 26 seconds you actually ended up reporting 29 uh uh instead of 27 and a half. So which means you you underguided probably on on the 45:35 45 minutes, 35 seconds margin. So so so just wanted to understand uh this 27 to 28 what you're trying to guide uh now has has an upside 45:43 45 minutes, 43 seconds either because of the product mix or or costly was to play out in in the next year. 45:48 45 minutes, 48 seconds So this is a matter of perception you can say overguide underguided or you can say overd delivered. This is matter of perception only. 45:58 45 minutes, 58 seconds Okay. 46:00 46 minutes So the realistic margins maybe maybe better than 28 is is is what I wanted to check rather than being little conservative in that sense. It's no it's 46:09 46 minutes, 9 seconds not able to conservativeness. So you see the the only reason uh to over uh to deliver this margin despite the GST 46:17 46 minutes, 17 seconds impact is as a company we are working on to improve the product mix. Correct. 46:22 46 minutes, 22 seconds That's really able to that's the reason we are able to absorb almost absorb uh the heat on the margin. Why we giving 46:30 46 minutes, 30 seconds the higher ranges is as you said that with the higher base we are trying to grow with the 14% and at the same time we are also trying to achieve the better 46:39 46 minutes, 39 seconds product mix. So making a combination that a product M which give a better margin and hence better value as well as 46:47 46 minutes, 47 seconds maintain the that 14% growth is such a higher volume uh is not a very uh easier 46:54 46 minutes, 54 seconds task and thus the range uh what we give it give us some flexibility to play around uh to maintain the good growth 47:03 47 minutes, 3 seconds rate as well as maintain the the market that's the reason we we are trying to do that it's not about that uh we giving a 47:10 47 minutes, 10 seconds prudent or conservative guidance on the part. 47:13 47 minutes, 13 seconds So both growth and profitability uh we keep a very sharp eye and uh we adjust accordingly. 47:21 47 minutes, 21 seconds Understood sir. And and lastly sir uh two things. One one is uh in protection can you give your premium mix or AP mix 47:28 47 minutes, 28 seconds broken individual protection I need to say broken down into pure term and RWRP and whether whether RWRP as a product 47:37 47 minutes, 37 seconds has seen a natural uh uh natural lower demand because of the GST benefit which is available in pure term compared to 47:44 47 minutes, 44 seconds RWRP. That's that's one thing and second uh last time in the call you you said that you were working on regular pay deferred annity plan if you can give a 47:53 47 minutes, 53 seconds bit of guidance uh or or or or a color how how far you have come with the product whether you are okay to launch that particular product in the current year or not. 48:01 48 minutes, 1 second So we our interview is to launch this different product in the this quarter itself. Uh so we are aiming to go to by 48:11 48 minutes, 11 seconds by June we should launch a different entity otherwise we'll go to the next quarter. 48:17 48 minutes, 17 seconds Understood sir and on the protection side sir protection size the number will give offline uh to you. 48:25 48 minutes, 25 seconds Okay. Okay. Understood. Thank you sir. That that's it from my side. Thank you. 48:30 48 minutes, 30 seconds Thank you. Our next question is from the line of Shobit Sharma from HDFC Securities Limited. Please go ahead. 48:38 48 minutes, 38 seconds Yeah, hi sir. Thanks for the opportunity and congrats on a great set of numbers. 48:42 48 minutes, 42 seconds So my first question is on your agency channel. That channel has consistently grown year on year for last 2 three years and have provided stability to your overall growth. So what gives you 48:50 48 minutes, 50 seconds the confidence? I understand you you mentioned about the new agent additions and the new opening of the branches. So uh can you give us some color around the these agents who have been recruited? 49:00 49 minutes Are these from the industry or are these new to the insurance uh business? Uh and secondly, if you can give us some qualitative comments about the uh 49:09 49 minutes, 9 seconds branches which has been opened in last 2 three years, what's the business contributed by them and or if you can give us some color around the contribution of these uh newly hired 49:17 49 minutes, 17 seconds agents over the last 2 three years are new to the insurance industry. There is no open architecture in on the agency 49:26 49 minutes, 26 seconds side. So we uh have very robust system of hiring and training agents and we are 49:33 49 minutes, 33 seconds happy that uh the agent uh increase is also being equally met with the uh agent 49:41 49 minutes, 41 seconds productivity. So the good growth number is coming both uh from the side of increased number of agents as well as 49:49 49 minutes, 49 seconds increased productivity. So as I already said that uh we want to tap the opportunities available on the agency 49:56 49 minutes, 56 seconds side. We are happy that today uh we have one of the strongest agency uh force in the market uh in the private industry 50:06 50 minutes, 6 seconds and uh the largest player also and substantial portion of the industry mobilization is coming through SBI life. 50:13 50 minutes, 13 seconds We'll uh continue to focus on this particular channel and our training methods to our agents. uh to 50:22 50 minutes, 22 seconds further uh tap the opportunities that are available here. 50:28 50 minutes, 28 seconds So any number around the uh business contribution from the branches which you opened in the last 2 three years or the contribution of agents whose vintage is less than 3 years. 50:37 50 minutes, 37 seconds uh we do not disclose those kind of numbers and uh you will appreciate that of course uh any branch which is newly 50:45 50 minutes, 45 seconds opened it takes some time to break open uh break even but uh these branches are well on track we are satisfied with the 50:53 50 minutes, 53 seconds contribution that is coming through these branches okay sir second question is on your NOP count so last three years we have not seen the NOP count growing on the 51:02 51 minutes, 2 seconds individual business side uh we had seen a very strong growth in Q3 on the NOP side But in Q4 again it has turned 51:09 51 minutes, 9 seconds negative. So when can we expect a growth to be led by NOP instead of the growth in the ticket sizes. And last question is on the GST impact. So I I I believe 51:18 51 minutes, 18 seconds that the GST impact which we have seen during this year was actually a permanent was actually permanent in nature and we would have made changes in our actual assumptions. So how should we 51:26 51 minutes, 26 seconds think about the impact from next year onwards? Should we should we see a similar kind of impact of 1.5% on over on an overall margins or it would be on 51:34 51 minutes, 34 seconds a higher side because this year we had a impact for only the second half of primarily. 51:39 51 minutes, 39 seconds So see uh GST impact has already accounted for in the margin 27.5 is expected only and this is for the 51:47 51 minutes, 47 seconds business done after 2nd se September. So maybe next another half year we'll see some impact but I think 51:56 51 minutes, 56 seconds this uh uh this will more or less similar label for the 6 months overall uh and that we have adjusted and we are 52:04 52 minutes, 4 seconds working to uh do the prop product mix profile so that offset that so that's the reason we 52:12 52 minutes, 12 seconds saying with the GST impact considering into reflecting our cost and all we are able to deliver the margin that we just given the guidance to 26 to 28 8% range. 52:23 52 minutes, 23 seconds So there were no adverse impact going to be reflected on account of GST. Uh so that's the part and assumption GST 52:31 52 minutes, 31 seconds basically in absence of the input cost uh we are absorbing the commission GST 52:38 52 minutes, 38 seconds payable and commission of agents and uh distributor. So that's already reflected in that. 52:47 52 minutes, 47 seconds Okay. And on the NOP side, I think NOP we are giving this thing and we are 52:56 52 minutes, 56 seconds hoping that once we come with the different NT pro part that also will help us to increase some of the NOP 53:03 53 minutes, 3 seconds because we appreciate the single PM most of the high ticket size but when you come to the deferred regular pay 53:12 53 minutes, 12 seconds I think t will be much lower than single premium and the more earning people will buy these things. So we expect that will help us not only to grow the nut uh 53:21 53 minutes, 21 seconds business but also increase the number of nuts that will buy the policy from us. 53:29 53 minutes, 29 seconds So you mean to say NOP uh for growth in next year would be driven by the annuity product which we'll be launching in in this quarter or the next quarter. 53:37 53 minutes, 37 seconds No, we are not saying that. We are saying that will help us to increase the overall annot. 53:46 53 minutes, 46 seconds I think we we have have the complete suit of the uh NOT we have the deferred entity in single PM we have the defer uh we have the immediate annot uh and we 53:56 53 minutes, 56 seconds have the NPS nuity and within the N we offer certain option now we are lagging only on the regular pay different nut so 54:03 54 minutes, 3 seconds by lancing that N we'll have a complete suit of N product available to the customer and we expect that complete 54:10 54 minutes, 10 seconds suit will help us to grow the this line of business I think the confusion is he's talking 54:17 54 minutes, 17 seconds about NOP not only NO so overall NOP will also increase through other products and protection products will especially help in increasing the number 54:26 54 minutes, 26 seconds of NOP okay sir got it thank you and all the best 54:33 54 minutes, 33 seconds thank you our next question is from the line of Deepanjan Gosh from city please go ahead uh hi good evening sir uh so my first 54:42 54 minutes, 42 seconds question uh on the VNB mix uh now I know that you don't give the margins across channels and every channel has a 54:52 54 minutes, 52 seconds different uh product mix but let's say if you were to take FI26 for the last 2 years and assume a similar product mix 54:59 54 minutes, 59 seconds channel mix cost structure what would be the VNB contribution across some of these channels or out some qualitative 55:06 55 minutes, 6 seconds color in terms of divergence between AP mix and VNB mix uh across channels u at least qualitatively uh the second 55:14 55 minutes, 14 seconds question is on the credit protect business uh for FI26 uh the growth seems to be a little bit on the uh little bit on the softer side. 55:24 55 minutes, 24 seconds Uh so going into uh next year I just wanted to get some color on uh what are the attachment rates or SPI or what are 55:32 55 minutes, 32 seconds the efforts that you're really undertaking to uh grow this uh uh business because it's a relatively high margin business I would assume. Uh and 55:40 55 minutes, 40 seconds finally the third question um the third question is on the operating releases. 55:46 55 minutes, 46 seconds Now if I look at the last 10 years uh X of COVID I mean uh in almost all the years you would have delivered a 55:52 55 minutes, 52 seconds positive uh release. So just in terms of uh the assumptions that you have built in the backbook we transition to FRS and 56:01 56 minutes, 1 second I understand you are taking a forbearance uh but does this sort of uh you know robust risk management uh or prudent underwriting that would have 56:09 56 minutes, 9 seconds done uh give you any sort of benefit uh relative to any other uh company uh should have probably taken a differentiated uh strategy on this 56:18 56 minutes, 18 seconds assumptions. And one question on the data keeping question uh if you can uh break the operating variance into 56:25 56 minutes, 25 seconds mortality, persistency and expense and others. So I will start with the last question. 56:34 56 minutes, 34 seconds I think that I explained that most of the um operating variance is coming on account of the mortality and consistency 56:42 56 minutes, 42 seconds and lesser is coming on the expenses. So this is the things. Second uh and your 56:49 56 minutes, 49 seconds your question to the channel wise margin I think we don't uh disclose that and we don't look into the specific the pro we 56:57 56 minutes, 57 seconds don't drive the particularly the product mix with the particular channel we offer the product to all the channel we we pay the similar commission to the different 57:05 57 minutes, 5 seconds channel and then uh do that and that's the reason we don't disclose this and even don't look into those on the margin perspective or the which channel we 57:14 57 minutes, 14 seconds typing this because we look into the longer term and company with margin creation on that. Third question 57:21 57 minutes, 21 seconds if I remember correctly on your actual resumptions and pity variance. I 57:29 57 minutes, 29 seconds think this that I mentioned earlier the most of the operating party variance over the years including the covid periods reflect the two set of things. 57:38 57 minutes, 38 seconds One is the quality of business that company writing and the underwriting is one of the part. So if you write a better quality of business you expect the experience will be much better. 57:47 57 minutes, 47 seconds Secondly also look into the how you see your uh sustainability in longer term. 57:53 57 minutes, 53 seconds So when we set the assumption we take a longerterm view and each and every time we see that whenever we see the credible 57:59 57 minutes, 59 seconds experience emerging and just mandate to uh review our assumption modify we so 58:07 58 minutes, 7 seconds even the last year we have capitalized quite a few particularly part of the person side we capitalized some of the assumption and 58:15 58 minutes, 15 seconds that's the reason this year the person variance is slightly lower lower to that and we will continue to do that our view 58:23 58 minutes, 23 seconds is to uh report the numbers and view is to not only the pricing and reporting as well keep a longerterm sustainable view 58:31 58 minutes, 31 seconds on that perspective. So this is third question. I I I don't want to comment uh how this will play out in IFS 17 to us 58:41 58 minutes, 41 seconds and how is the other in the market. We normally avoid comparing our performance versus others. But definitely uh if 58:49 58 minutes, 49 seconds company is having the longerterm sustainable assumptions that will have the better place and that will also 58:56 58 minutes, 56 seconds reflect in IFRS regime as well. And on the bankana credit life we think 14% is 59:04 59 minutes, 4 seconds reasonable growth is faster than the bank's close growth. We have increased our attachment in home loans by substantial number. 59:14 59 minutes, 14 seconds Sorry just one small followup uh if I heard correctly you mentioned that your persistency variance this year is little 59:21 59 minutes, 21 seconds lower than last year and I think last year you were around uh 2 and a half to three billion. So that basically means 59:29 59 minutes, 29 seconds that for this year you almost had like 8 n billion of positive mortality varants. I mean is that a right understanding? 59:35 59 minutes, 35 seconds No I'm not saying that. What I what I try to tell you that each and every time whenever we see the credible experience 59:43 59 minutes, 43 seconds and continuous priority whereas coming into that will uh revise and do that and 59:50 59 minutes, 50 seconds when you revise you'll get certain uh gap and perspect. 59:56 59 minutes, 56 seconds Got it. Um uh thank you and all the best. Yes. 1:00:02 1 hour, 2 seconds Thank you. Ladies and gentlemen, in order the management is able to address questions from all participants in the queue, you are requested to please restrict yourselves to one question 1:00:10 1 hour, 10 seconds only. You may rejoin the queue if you have any further questions. 1:00:15 1 hour, 15 seconds Our next question comes from the line of Nirajnal from UBS. Please go ahead. 1:00:21 1 hour, 21 seconds Yeah. Hi. Uh just a follow up on the great life. uh this quarter we see a big uh impact on the group credit it's 1:00:28 1 hour, 28 seconds largely coming from GPI uh is the right understanding or how is the credit quarter on quarter and why this quarter 1:00:37 1 hour, 37 seconds no this quarter the uh GTI business has come as compared to the credit life so that is the reason the quarter four 1:00:45 1 hour, 45 seconds growth in the uh group credit group business has uh actually gone up 1:00:53 1 hour, 53 seconds Okay. And do we have numbers on how much is life and how much is g? 1:00:58 1 hour, 58 seconds No quarterly I don't have number. We will give you separate. 1:01:02 1 hour, 1 minute, 2 seconds Okay. And on the target mix I think we have we mentioned that we will be likely around 60 40 60 and 40 noners. I think we have already kind of achieved that. 1:01:12 1 hour, 1 minute, 12 seconds So the mix will largely remain stable in terms of nonvailable uh toggle around between nonpar and bar. uh is the pair 1:01:20 1 hour, 1 minute, 20 seconds understanding or we can further see units. 1:01:25 1 hour, 1 minute, 25 seconds Yeah. No, we are driving as already uh in the initial remarks MD has commented that we are driving for a right product 1:01:33 1 hour, 1 minute, 33 seconds mix in the longer run perspective. So today we are at uh uh 6634. 1:01:38 1 hour, 1 minute, 38 seconds So depending upon the market, depending on the customer's choice, we are offering the products across geographies. So we will continue to drive the better productivity or a 1:01:46 1 hour, 1 minute, 46 seconds balanced product mix rather going forward. So we will see how the experience will evolve but yes we are looking into the better product mix going forward. 1:01:56 1 hour, 1 minute, 56 seconds Okay. I was coming from ET it's already 59 uh and 59 and coming from longer. 1:02:04 1 hour, 2 minutes, 4 seconds Yeah IRB basis it is 66. 1:02:07 1 hour, 2 minutes, 7 seconds I spoke about individual AP basis. So we talking about AP. So that is 6634. Yeah. 1:02:15 1 hour, 2 minutes, 15 seconds And nonpart savings are taking or not taking any uh I had to kind of like 1:02:22 1 hour, 2 minutes, 22 seconds others have been GPU GP pack what is our strategy here because growth while everybody has seen a decline our decline 1:02:30 1 hour, 2 minutes, 30 seconds has been little moderate compared to yours any commentary here or the strategy going forward. 1:02:37 1 hour, 2 minutes, 37 seconds So I think nonpar if I answer correctly your question on the nonpar IR perspective. So I think the we continue 1:02:45 1 hour, 2 minutes, 45 seconds look into the interested movement and reprise the product. I think currently if you see the a lot of volatility the a 1:02:54 1 hour, 2 minutes, 54 seconds curve and this is a is not sustainable this is holding up but in the meantime uh we have launched a new uh nonpar 1:03:02 1 hour, 3 minutes, 2 seconds products that replace our existing manpower product and that reflect the current air. So to some extent we have pass on this uh uh some benefit to the 1:03:11 1 hour, 3 minutes, 11 seconds customer uh by launching this new product but we'll continue monitoring and regular monitoring I keep saying that as a company will keep doing this 1:03:19 1 hour, 3 minutes, 19 seconds adopting the dynamic approach in as per interest sensory product is concerned and this is the whenever we see this 1:03:27 1 hour, 3 minutes, 27 seconds sustainable thing we'll repric and pass on to the uh benefit to the customers. So we try to balance between those. 1:03:36 1 hour, 3 minutes, 36 seconds So uh thank you and all the thank you. The next question is from the 1:03:45 1 hour, 3 minutes, 45 seconds line of Nidesh Jen from Invest. Please go ahead. 1:03:49 1 hour, 3 minutes, 49 seconds Uh so thanks for the opportunity is the question is on VNB margin. Uh so if you look at the full year VNB margin there is a 150 basis point impact of GST. Uh 1:03:58 1 hour, 3 minutes, 58 seconds so that is for half year. So does it mean that for the full year the impact would be around 300 basis point and our starting margin let's say on a l to 1:04:06 1 hour, 4 minutes, 6 seconds basis is 26%. If if the GST would have been implemented for the full year which means that we have to show V margin 1:04:13 1 hour, 4 minutes, 13 seconds expansion from 26 26% in FI27. So that is the first question. 1:04:20 1 hour, 4 minutes, 20 seconds No this is not the case. So if you see the business return the fourth September is much higher than the H1. Secondly 1:04:30 1 hour, 4 minutes, 30 seconds that mention in this when you declare the result on September result we have already incorporated the 1:04:38 1 hour, 4 minutes, 38 seconds uh GST impact in in terms of the commissions on the renewal commission for the business return prior to the uh 1:04:45 1 hour, 4 minutes, 45 seconds 22nd September as well. So if I summarize I say that all the business return after 22nd September the GST 1:04:52 1 hour, 4 minutes, 52 seconds impact uncommission refractive are both init first year commission is renewal and for the business return prior to 1:05:00 1 hour, 5 minutes 22nd September the GST impact on commission and renewal has been thirdly 1:05:07 1 hour, 5 minutes, 7 seconds uh we have incorporated the expenses uh actual expenses including GST when you report these things. So most of the part 1:05:16 1 hour, 5 minutes, 16 seconds of the uh impact of GST in terms of the comm renewal commission full commission new business and expand only the left with 1:05:24 1 hour, 5 minutes, 24 seconds the first half first year commission for the business return till 22nd. So it it will not be and if I remember correctly 1:05:31 1 hour, 5 minutes, 31 seconds we quantified this number expecting the annual impact maybe uh maybe around 1.8 1:05:38 1 hour, 5 minutes, 38 seconds 8 1.9 kind of things uh if yes would have been implemented from the beginning itself. 1:05:45 1 hour, 5 minutes, 45 seconds Sure. Sure. And second as we move towards a non-banker channel over next two to three years or or the share of non-banker channel increases in our 1:05:53 1 hour, 5 minutes, 53 seconds overall mix uh will on a serus par basis uh will that have a negative impact on margin because we believe that banka 1:06:00 1 hour, 6 minutes would be a slightly higher margin channel versus non-banka. So will that will if we don't do anything on the product mix side will that have will 1:06:08 1 hour, 6 minutes, 8 seconds that have a negative impact on our overall margins? No, I I don't think uh and we don't think there will be any ne 1:06:14 1 hour, 6 minutes, 14 seconds negative impact for things. In fact, any channel addition will bring value to to table by way of the our fixed expenses 1:06:23 1 hour, 6 minutes, 23 seconds will get amortized and quality happen. I I think that going to aid the value to the company and there would not be any negative impact on the margin. 1:06:34 1 hour, 6 minutes, 34 seconds Sure sir. Thank you sir. That's it from my side. Thank you. 1:06:40 1 hour, 6 minutes, 40 seconds The next question is from the line of Hershel Meta from Asian market securities. Please go ahead. 1:06:48 1 hour, 6 minutes, 48 seconds Thank you for the opport. 1:06:51 1 hour, 6 minutes, 51 seconds So firstly, as you know like since we are in the early days in the please be a louder now. 1:07:00 1 hour, 7 minutes Can you be can you be a bit louder please? Hello. Is it better now? Yeah. 1:07:05 1 hour, 7 minutes, 5 seconds Yeah. So, so my first question was that like we know that we are in the initial days of IFRS but if you can use some initial thoughts on you know how the 1:07:12 1 hour, 7 minutes, 12 seconds KPIs will be for life under the IFRS. So that was one and secondly like our strategy has been to focus on additional 1:07:20 1 hour, 7 minutes, 20 seconds products and everything that we have seen growing significantly higher than nonpar uh but given the backdrop that we have recently launched a nonpar product 1:07:27 1 hour, 7 minutes, 27 seconds in Jan how do you expect nonparity to move from here on? 1:07:34 1 hour, 7 minutes, 34 seconds See as far as the IFRS is concerned uh we are uh prepared and as you know we have submitted the uh performer to the 1:07:41 1 hour, 7 minutes, 41 seconds regulator for the last two financial years and as already mentioned in the initial remarks we are uh going to have 1:07:48 1 hour, 7 minutes, 48 seconds a forbearance for this fiscal and next year onwards we will be prepared to launch into the FRS regime and we don't 1:07:56 1 hour, 7 minutes, 56 seconds see uh anything as of now to bring in on a KPI into the uh uh company's uh 1:08:03 1 hour, 8 minutes, 3 seconds performance or to disclose at any point of time during this financial year. Uh so we will see first how it will evolve 1:08:10 1 hour, 8 minutes, 10 seconds in the over the next two to three years time and then to bring in because it has got uh implications into the business 1:08:18 1 hour, 8 minutes, 18 seconds because we cannot just bring the KPIs to the business which will be definitely look into different aspects as far as 1:08:24 1 hour, 8 minutes, 24 seconds IFRS is concerned. Uh second part uh you asked about uh uh product uh you I think 1:08:36 1 hour, 8 minutes, 36 seconds how we going to I see par product still we have contribution is around 7% on that perspective and ampar we have 1:08:45 1 hour, 8 minutes, 45 seconds launched uh even different so we do believe that the new launch in a par we see a lot of attraction on that that 1:08:53 1 hour, 8 minutes, 53 seconds will also bring uh the moment in An par and again if interest rate is going to be established at current level we will 1:09:01 1 hour, 9 minutes, 1 second repric and be better return so that also help us to improve the uh growth of the 1:09:08 1 hour, 9 minutes, 8 seconds nonpar business as such sir thank you 1:09:17 1 hour, 9 minutes, 17 seconds thank you our next question is from the line of s from Philip Capital please go ahead Yeah. Um, thanks for the opportunity. 1:09:27 1 hour, 9 minutes, 27 seconds Hope you can hear me. I'm audible. Wait. So, you are audible. 1:09:33 1 hour, 9 minutes, 33 seconds Yeah. Okay. Um, so just a two data keeping questions. One was on uh online uh channel growth that was very strong 1:09:42 1 hour, 9 minutes, 42 seconds until 9 months. Um, so like 45% YI basis. Um, so uh anything on the 1:09:49 1 hour, 9 minutes, 49 seconds discrete Q4 number or the 4 year number that will be helpful. And the second is on uh attachment rate on the um uh 1:09:58 1 hour, 9 minutes, 58 seconds credit life uh portion. So what is attachment rate on home loans? Uh so if you can just give two uh data points. 1:10:05 1 hour, 10 minutes, 5 seconds Thank you. So as far as our online business which is purely on our own website it is almost in the similar range of 48 to 50% growth which we have 1:10:14 1 hour, 10 minutes, 14 seconds done for the full financial year and that uh we will be continue to focus more on this channel on our own and as 1:10:22 1 hour, 10 minutes, 22 seconds far as the attachment ratio of credit life I think it is going in the similar uh what we have been doing it for the uh previous years around 1:10:31 1 hour, 10 minutes, 31 seconds 50% of uh okay thanks trying to thank think thanks to the event. Yeah, 1:10:40 1 hour, 10 minutes, 40 seconds thank you. The next question is from the line of Gorav from MLP. Please go ahead. 1:10:48 1 hour, 10 minutes, 48 seconds Yes. Hi sir, good evening and thanks for the opportunity. Uh sir, the question was with regards to the cost ratio. So uh if I look at the operating expense 1:10:56 1 hour, 10 minutes, 56 seconds ratio is moved up from 5.3 to 6.1 in in FI26 uh versus last year. uh and you explained that this is uh due to GST uh 1:11:05 1 hour, 11 minutes, 5 seconds the impact of GST embedded in the cost now so uh uh is it only from September to March uh you know the cost impact 1:11:13 1 hour, 11 minutes, 13 seconds that that we're looking at here. So uh let's say for FI27 given that uh the entire uh year will have GST impact so 1:11:21 1 hour, 11 minutes, 21 seconds uh hypothetically I mean is this 6.1 only reflective of 6 months of of GST or this includes the full year impact of of GST? 1:11:31 1 hour, 11 minutes, 31 seconds So this is obviously the f second half of this year half year of this fiscal uh impact of the GST. Next year it will be 1:11:38 1 hour, 11 minutes, 38 seconds full year. The other oneoff item I think you must have heard in the last uh call that there is one of item which is the 1:11:45 1 hour, 11 minutes, 45 seconds labor code. So that has also this year is impacting this uh grow increase in the operating expenses but we are 1:11:53 1 hour, 11 minutes, 53 seconds confident that it will not go under our radar rather in the uh way we are managing the expenses of the company it will continue to be in that range. 1:12:04 1 hour, 12 minutes, 4 seconds Sure. So sir if uh if you can just quantify the deviation from 5.3 to 6.1 that we see how much of that is 1:12:11 1 hour, 12 minutes, 11 seconds attributable to GST and how much of that is attributable to new labor code if you can just quantify that I can just tell you uh that if the labor 1:12:19 1 hour, 12 minutes, 19 seconds code or the GST would not been there then the the OPEX ratio would have been around 5.5 against 5.3. 1:12:29 1 hour, 12 minutes, 29 seconds Okay, understood sir. 1:12:32 1 hour, 12 minutes, 32 seconds Got it. So uh safe to say that next year it it may go up slightly given that this only has six months of GST but it won't 1:12:39 1 hour, 12 minutes, 39 seconds go materially up from here. Is that the right way to read it? 1:12:43 1 hour, 12 minutes, 43 seconds It not not necessarily because you know the uh OPEX is not only one of item of the GST which will impact there are 1:12:51 1 hour, 12 minutes, 51 seconds other measures which we take. So that will also help to rationalize the cost and then you know we also look into the 1:12:59 1 hour, 12 minutes, 59 seconds economics of the expenses where we want to do whether we want to do or not but yes as far as the growth is concerned we 1:13:06 1 hour, 13 minutes, 6 seconds are very focused that we will spend our money on the investments particularly on the uh branches IT infrastructure that 1:13:14 1 hour, 13 minutes, 14 seconds will continue but it will not have much impact as far as the opex is concerned for the company. 1:13:21 1 hour, 13 minutes, 21 seconds Understood. Perfect. And sir man uh uh the next question is on on the channel mix. Uh while this year we saw other 1:13:29 1 hour, 13 minutes, 29 seconds channels contribution share uh improving uh for next year also do you expect the other channel contribution share to improve and let's say from from a two to 1:13:38 1 hour, 13 minutes, 38 seconds three year perspective uh uh what would be the uh let's say SBI contribution or any target sort of your maintaining uh 1:13:45 1 hour, 13 minutes, 45 seconds uh to reduce the contribution from SBI going forward. So we are not targeting any reduction uh from SBI. What we are 1:13:54 1 hour, 13 minutes, 54 seconds targeting is uh tapping additional opportunity on the agency and the emerging business channel and uh in line 1:14:02 1 hour, 14 minutes, 2 seconds with that the higher growth coming from these uh two segment will improve their contribution in the overall distribution 1:14:11 1 hour, 14 minutes, 11 seconds mix. We are not targeting any reduction from SBI. 1:14:16 1 hour, 14 minutes, 16 seconds Understood. Understood. So with with the uh effect of diversification where would you see the overall mix let's say X 1:14:22 1 hour, 14 minutes, 22 seconds bankanka U and within banka maybe XBI what what would be let's say target share of of these uh uh these other 1:14:31 1 hour, 14 minutes, 31 seconds segments they would want to keep so in last two years we have seen approximately 3 to 4% shift from banker 1:14:39 1 hour, 14 minutes, 39 seconds to agency uh and agency and emerging businesses and all and uh we expect the similar uh trend in coming BS. 1:14:49 1 hour, 14 minutes, 49 seconds Understood. That that's all from my side. So thank you. 1:14:54 1 hour, 14 minutes, 54 seconds Thank you ladies and gentlemen. We will take that as the last question for today. I would now like to hand the conference over to Mr. Amit Jingrand for closing comments. Over to you sir. 1:15:05 1 hour, 15 minutes, 5 seconds Thank you everyone for your time and queries. uh you may get in touch with our investor relation team in case you 1:15:12 1 hour, 15 minutes, 12 seconds have any follow-up questions and we will be happy to uh respond to that. Thanks again. God bless everyone. 1:15:22 1 hour, 15 minutes, 22 seconds Thank you. On behalf of SBI Life Insurance Company Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.