Questions across 39 calls

Madhukar Ladha

Nuvama Wealth Management

Nippon Life India Asset Management Limited

Nippon Life India Asset Management Limited CC-Sep24.pdf · 2024-10-24

Congratulations on a great set of numbers. So just a couple of questions from my side. I don't know whether you've already addressed this because I missed a little bit of the call. First, is there some reduction in Q -o-Q equity yields? And I just wanted to get a sense of what is driving that? And if you could also give your segment-wise yield, that would be useful. Second, what is driving such a strong other income? And third, even if I adjust your tax amount by the INR 29.5 crores of that deferred tax liability, our tax rate for the quarter is still quite low. So what is happening there? If you could help us with that.

Got it.

Nippon Life India Asset Management Limited CC-Jun24.pdf · 2024-07-19

Congratulations on a great set of numbers. So just a couple of quick questions. One, why has staff cost gone up so sharply? And so from INR 89 crores last year in Q4, we've gone to INR 105 crores. And even on a YoY basis, the jump is very material. So wanted to understand that. And what should we sort of be building in for the rest of the year? And second, the AUM is growing really rapidly. And incrementally, are we able to pass on the lower sort of TER in terms of lower distribution cost to our customers? Or are we losing out in terms of incrementally what we are able to keep for us? We are, obviously, but is there any way to stabilize those yields? What's the thought process on that?

You said excluding employee costs, the other costs will go up 12%, 13%. I didn't get...

Max Financial Services Limited

Max Financial Services Limited CC-Sep24.pdf · 2024-10-23

Just I am not sure whether any of the previous participants have touched upon this. But can you talk a little bit about what is driving growth within the proprietary channel, so the online channel and the agency channel , if you could give what is the growth for each online direct and the agency?

So, I just wanted to get a sense of what is driving growth within proprietary channels, the online agency and direct sub -sort of channel growth out there. And second, if you look at the new business strain, that has also gone up substantially. I mean, it is good to see that the back book surplus has grown , but new business trend has actually gone up quite sharply in this quarter and in the first half. So, any particular reason on that ? Is it more resolving driven or is it more sort of higher commission payouts or something of that sort of actually payouts going up o ver there? Some color on that will be helpful. And can you break down the economic variance between fixed income and equity?

Max Financial Services Limited CC-Jun24.pdf · 2024-08-14

So, just quickly, first, on your overall growth guidance, so as I understand in the beginning of the year, VNB growth, you're saying mid-teens sort of a number but obviously the surrender values can have some impact on the margins. And from a top line perspective, how are we seeing the year play out? Second, on your EV, can you quantify what is the magnitude of economic variance in Q1 because back -of- the envelope there seems to be another negative variance in this quarter. Could you confirm if that is correct, and if that is the case, then what is really causing that? And thi rd, sort of our calculations indicated that if nothing is done on the new surrender values, the company level margin impact could be in the range of 300 to 400 basis points, but what you're talking about is lesser, right about 100 to 200 basis points. So, I wanted to understand what are you exactly building in 4Q and what the difference can be between my understanding and your understanding?

ICICI Prudential Life Insurance Company Limited

ICICI Prudential Life Insurance Company Limited CC-Sep24.pdf · 2024-10-22

Just a couple of them from my side. First, can you quantify the impact of not readjusting the IRRs on the non -par products in Q2? So, that could give us some sense of what the more normalised margin in Q2 and first half would be? Second, our renewal premium continues to sort of lag and is just growing at about 3% plus we are also seeing continued outflows, so can you give us some sense of when this actually stops? Yes, those would be my two questions thanks.

Right, and just as a follow up, I remember that in Q4 last year because of these, you had gotten a negative sort of persistency variance in your EV walk and one of the reasons was obviously the ULIP, right and increase in mass surrenders, given that this seems to have continued into this year. So, do you expect a higher sort of impact, I mean, another negative impact coming through in this year as well? Has that been accounted for in your EV calculation for first half? And what is your economic variance? Can you give me that number? What is the positive economic variance in first half?

ICICI Prudential Life Insurance Company Limited CC-Jun24.pdf · 2024-07-23

So, a couple of questions from me. One, your bank channel has done quite well. There is a growth of about 33%/34% of that. So, what's driving the growth? Some color on how ICICI Bank has done? Are we still in the 80 to 100 crores type of range? Or is there any sort of pickup of the new businesses there? Second, you mentioned about the 446 crores expense allocation methodology change, which has resulted in policy liabilities coming down. Is this more like expenses getting allocated to par policies, which is sort of helping this? And also, finally, on the annuities side of the business, annuities seen a very good growth, whereas protection on a year-over-year basis, retail individual protection is very muted. So, I wanted to understand what's wrong, what's not working with protection, and what sort of growth should we be looking at for the year, and what's actually doing very well for annuities, and how we are able to grow that piece of the business so well? So, those would be my questions.

And one final follow-up. To maintain this VNB margin of 24%, what is sort of the full-year growth that you have built in in your assumptions? Because you work on unit cost method for the year, right? So, that would at least give us some idea on how to think about margins versus our sort of projections on APE growth.

ICICI Prudential Life Insurance Company Limited CC-Sep23.pdf · 2023-10-17

First on the GTI bit again, you mentioned that one-third is, so the total protection, one-third is from GTI, one -third is Credit Protection, and then one -third is a Retail Protection. For what period is this? Is this for FY ’23? Or is it for the first half of FY ’24? I understand that these are rough numbers. And given the pres sures that we are seeing in GTI in terms of pricing, how much do we really see this business to grow this year, if you could help us just get a sense of what sort of growth we could get here? And given the pressure in pricing, are we seeing also margins come off substantially over here is another question that comes to my mind. And frankly, I also know that VNB development of the business that we had written earlier, are we seeing any negative variances due to this pricing pressure currently in this business? Are we seeing any negative operating variants over here? So, on the GTI, these are some of the questions and you mentioned that on the more than 5 lakh rupees ticket size, there is certain movement towards ULIP and then you also mentioned another category. Can you just explain that? And finally, if you could quantify how much is the more than 5 lakh ticket size in the first half versus second half of last year and how much have we done in the current year, that would also be helpful.

Just one thing Dhiren, can you give me the GTI number for FY2023?

HDFC Life Insurance Company Limited

HDFC Life Insurance Company Limited CC-Sep24.pdf · 2024-10-15

Vibha, you mentioned in your comments that you deferred pricing on few of the non-par products. I wanted to get a sense of what was the impact on this quarter's margins or the first half ’s margins because of that? And th e 100 basis points that you're talking about would be versus the margin of last year, right? So that was question number one. Also, if I look at your distri bution mix, it seems that the bancassurance channel, the growth is there, but it's a little softer. So just wanted to get a sense of what has played out. So , on a year -over-year basis, growth was a little softer in the bancassurance channel side. So, yes , those would be my 2 questions.

And if I were to just ask what was the impact of not repricing the non-par in this quarter, just to get a sense of normalized margins before we go into increased surrender value regime?

HDFC Life Insurance Company Limited CC-Mar24.pdf · 2024-07-15

I wanted to get a sense of this new slide about surrenders that you have added in the presentation. I wanted to understand what paid-up policy actually means . These are non - surrendered policies, but they have stopped paying premiums. How does that really flow into your VNB ? M aybe you could clarify that part a little bit and then I can ask my follow -up questions on this?

Okay. Just a follow -up on this. When a paid -up policy holder , he's probably paid up for two years and then stopped paying premium , w hen the policy matures for him , that's what you mean, he will not surrender the policy and the policy will mature in a partly paid status. What benefit does he get at that point of time?

HDFC Life Insurance Company Limited CC-Jun24.pdf · 2024-07-15

I wanted to get a sense of this new slide about surrenders that you have added in the presentation. I wanted to understand what paid-up policy actually means . These are non - surrendered policies, but they have stopped paying premiums. How does that really flow into your VNB ? M aybe you could clarify that part a little bit and then I can ask my follow -up questions on this?

Okay. Just a follow -up on this. When a paid -up policy holder , he's probably paid up for two years and then stopped paying premium , w hen the policy matures for him , that's what you mean, he will not surrender the policy and the policy will mature in a partly paid status. What benefit does he get at that point of time?

Central Depository Services (India) Limited

Central Depository Services (India) Limited CC-Jun24.pdf · 2024-08-05

Congratulations on a good set of numbers. Quick one question. From October the SEBI circular on True to Label will also come into effect. So how are you planning to approach that? I believe you'll probably have to revise your charges, transaction charges, especially as a result of that. So, I wanted to understand how that will work? Second, also wanted to understand how real-time settlement really impacts transaction charges? has there been any thought process around that or any developments around that? So, these two would be my questions?

On the real-time settlement.

Star Health and Allied Insurance Company Limited

Star Health and Allied Insurance Company Limited CC-Jun24.pdf · 2024-07-31

First, in volume terms, can you tell me what is the renewal rate? And second, what is the total volume growth year-over-year? Yes, that's my first question. And second, can you tell me what is the equity percentage in the investment book? And what were the capital gains this year versus last year? And lastly, you've reclassified the channel mix, you've got ABCD now. So, if you could give me comparable numbers on a year-over-year basis and also similar numbers for FY '23 and '24, that would be helpful.

So, 12% of portfolio and gain, so this is on cost basis you are saying, and then 11%, 12% additional? I didn't understand that, I'm sorry.

Star Health and Allied Insurance Company Limited CC-Sep23.pdf · 2023-10-31

A couple of them. I'm not sure whether you answered this question or not, on the Star Family Health Optima what was the renewal rate in terms of numbers, so I understand that the average price hike is 25%. But in terms of volume, what would be the renewal rate , second there's a lot of news on the industry coming together and forming a cashless network for all the health insurance and private insurance companies together even the PSU ones. So, how would that impact the industry especially , see one of your moats is that you have this strong hospital network and cashless network would that reduce your competitive advantage given that now all players would have access to that network and could offer that to customers . So, those two would be my questions.

Understood.

Bajaj Finserv Limited

Bajaj Finserv Limited CC-Jun24.pdf · 2024-07-25

Most of my questions have been answered. Just a couple of ones which are left. One on the Vidal acquisition, now that you've acquired Vidal, are you seeing other insurance companies associated with Vidal withdrawing business from there because that was one of the fears that the market and I also had. Second, you've done a pretty large government health transaction last year, the Gujarat government transaction and you would be competing about a year. So maybe you could talk a little bit about your experience and your learnings? And how would you sort of see that business in terms of whether you would still like to continue or what sort of changes that you would like to add in terms of making that business more profitable. Yes, any comments and colour around that would be helpful. These would be my 2 questions.

Got it. And the next one on the...

ICICI Lombard General Insurance Company Limited

ICICI Lombard General Insurance Company Limited CC-Jun24.pdf · 2024-07-19

So, a couple of things. First, you know, I know it's early days, but maybe you can talk a little bit about the health product , what's the kind of numbers that you are seeing and what are you sort of building in your mind as a target for this year? And second, you have done very well on the investment income side . So, I am not sure whether you gave this number out or not, but what is the capital gain amount and if you can split the investment income in capital gains and normal gains? And then in the opening remarks, you had mentioned about the numbers for private car , two-wheeler and CV . If you could just repeat the CV number, what is it for the industry and what is it for us? So, those would be my questions.

Sorry, Gopal. Gopal, I wanted the number of new CV growth was for the industry and what is it for ICICI Lombard?

ICICI Lombard General Insurance Company Limited CC-Sep23.pdf · 2023-09-30

A couple of questions. One, we are seeing a good increase in the crop business, better doing this year. What is the philosophy behind that? I remember in the past you wanted to avoid that business and I also know that you got this business again from Bharti Axa. Is that only those states or are you also growing in some of the other states? Second, I am just going back to the guidance of 102%. Given that your performance is strong – in the first half itself, you are at 102.7 % – are you being a little conservative over here? And finally, most of the industry is not meeting the EOM norms right now. What regulatory action can we expect and what would you say by when will the regulators start looking at this and implementing this?

Just a follow up on this, sir. Are we seeing a heightened competitive intensity in the group health segment also to meet the EoM norms?

SBI Life Insurance Company Limited

SBI Life Insurance Company Limited CC-Sep23.pdf · 2023-10-27

So, a couple of questions. Number one, see market conditions are good and that helped you achieve a pretty good growth in Q2 and partly also offset the bad performance or the subpar performance in Q1. So, but market conditions now are not that good, right? So, markets have become a lot more -shaky. So, in that context, if ULIP does not do well and even the IRRs on some of the non -par products have come off given the interest rate curve has flattened quite a bit. Would you see that as a challenge in the second half to growth, right? So that's question number one. Second, a very large growth has come also in your group APE, if I'm correct. So in first half, the growth from group APE is pretty solid and a lot of it happened in Q2. So it will be important to just understand where is it coming from? How much is sort of credit life and how much is GTI? And if a lumpy GTI business has contributed to this? And third, we've got some feedback that commissions for the agency channel have also gone up, in general commission rates have gone up. So how are we reacting to the market condition? And how has this sort of managed to get such a good growth in agency? Yes, these would be a few of my questions. Thank you.

Right. Sir, just a follow -up. See, your ULIP is predominantly debt, so almost, I guess, about 68% of the linked AUM is debt AUM, still market conditions have such a big impact. So that's the conundrum, which I'd like to just, if you can explain that a little bit that how are we selling this to be a market product, but with equity component being much lower?

UTI Asset Management Company Limited

UTI Asset Management Company Limited CC-Sep23.pdf · 2023-10-19

Thank you for taking my question . Frankly, most of my questions have been answered. Just one on the wage increase. What would be our guidance for the year because we would have expected some sort of moderation, but still on a QoQ basis, salary costs are up by 5%. We expected some sort of operating leverage to play out of here.

Got it. And the other thing while you explain ed the yield decline not being that related to sort of equity but we are seeing net outflows from equity as well. Isn't that hurting our book? What will that have sort of resulted in lower equity and hybrid yields. Vinay Lakhotia I think equity yields are more or less flat at around 72 to 73 basis points. But yes, if the stock AUM is redeemed and is being replenished by fresh inflow , it’s definitely going to impact the yield. That has been the trend in the earlier quarters and not in this particu lar quarter. Going forward, if the stock AUM is being replenished at a faster rate, yield compression might be there.

HDFC Asset Management Company Limited

HDFC Asset Management Company Limited CC-Sep23.pdf · 2023-10-12

Hi, good evening. Congratulations on a good all -round operating performance. And most of my questions have been answered. Just a couple of small ones. One, you've given your active equity AUM. And you also mentioned, what the industry number was in the beginning, but I missed that. So , can you give me, what your market share is? And how that has moved in active equity AUM, maybe last couple of years, what has happened in there?

That is -- isn't that the total -- on a total AUM basis?