Congrats on great set of numbers. First question is just on the numbers front. There's some reversal of expense. Could you explain that; on the shareholders' account.
No, GAAP. Indian GAAP.
Questions across 18 calls
Prayesh Jain
Motilal Oswal Financial Services
Niva Bupa Health Insurance Company Limited
Firstly on claims, could you break down your claims ratio into what was the loss ratio in H1 on retail and what was the loss ratio on group in H1 versus the same thing for last year?
Yes, I was just clarifying, this is on IFRS basis, right?
Computer Age Management Services Limited
Firstly, just on this renegotiations with AMCs, there is a 3 to 5 basis points impact, what we've heard from all the AMCs that is likely to come, and they have indicated they'll be passing it on to distributors. But any negotiation that has happened with you guys on the commission changes -- sorry, on the RTA fee changes that should come through because of that change?
Structurally, we've been talking about the 3.5% to 4% d ecline in yields every year. Should we start thinking about this for FY '27 and FY '28 basis and that should be the way? Or how should we think about the yield drop on a regular basis?
Go Digit General Insurance Limited
Yes, hi, can you hear me.
Just a couple of questions. Firstly, from a strategy perspective, how do you see the product mix shaping up for us in FY27? Where are we concentrating like 2-wheeler was one growth area -- focus area for us in FY26. How do you see that mix across categories changing in FY27, which are the areas that we will be focusing on? Second question, again, from the motor side, what do you really think that will kind of bring out a motor TP price hike because across some of the key players, I think motor TP loss ratios have improved in this year. But what really can push the regulator towards a motor TP price hike? Those would be my questions? Thanks.
Yes. Sir, just one question on your -- the mix of 2-wheeler going up. Structurally, how has been the trend with respect to loss ratio of 2 -wheeler passenger car and commercial vehicles in the last 2, 3 years? There are various parameters around quality of vehicles going up, quality of roads going better, but on the other hand, the value of the vehicles have gone up, which would lead to higher claim costs. So just structurally, if you can help us understand how have things changed between 3 years back to today in different categories of vehicles?
Perfect. Sir, my second question is in the Health segment, where you alluded to the fact that the pricing semblance has to come back. But has it come back? And do you think that it would be like this year, given that EoM regulations are still yet to be met this year, the pricing pressure will continue and probably early next year, the pricing semblance might come on the group health pricing.
SBI Life Insurance Company Limited
Yes, hi. A few questions. Firstly, just extending the previous question. Has there been any communication from RBI in any form about open architecture or in form of offering more products at the bancassurance channel because the interview kind of stated that there has been some communication or request gone to the banks to adopt an open architecture. Second is, if I look at your cost ratio, right, from FY24 your opex was at 4.9, has gone up to 6.1. Total was 8.9 and gone up to 10.6. And within that main thing, I think the product mix shift possibly to a certain extent, but also you have opened more bra nches and the agency channel has seen a really stronger growth. So how do you see the cost ratios moving from here on, do you think that you would be capped at 10.6 or this ratio will kind of keep moving higher? And thirdly earlier, while you talk about a 14% kind of APE growth, what would be your thoughts on margins going ahead with VNB margins going ahead? Those are my three questions. Thanks.
Sir, just extending that question. So GST is not onetime, right? GST is going to be there for some time, it's a permanent thing, right, unless we kind of really do some cost savings, which will bring down our costs, right? So from that perspective, how do you see the cost ratio? And my last question was on VNB margin trajectory going ahead?
Hi. Congrats on a great set of numbers. Just coming to the channel performance, how do you see the SBI as a channel growing from here on? It's been showing a very strong momentum in the last few months. Do you see this momentum getting stronger going ahead? How should we think about SBI as a channel and what are the kind of levers we have there to grow this business more aggressively?
The 13%-14% guidance is for the full year APE growth?
A couple of questions. Firstly, on commission costs that have gone up , what could be the reason for that? Secondly there is a slowdown in annuities as well. Could you highlight the reason for that? What is the outlook there?
And just lastly in the surrender charges, you are saying that if your product mix remains the same and the new products are launched from October, your margins would not be impacted. Is that a fair assumption to go with?
HDFC Life Insurance Company Limited
The question is on HDFC Bank channel, and I think that's been discussed quite a bit, but just one more angle to it. Whether commission that the competitors are paying to HDFC Bank, does that also come into equation where the share has come down come down for us? Second, when you say that the capital raise will give you additional solvency of 900 basis points, do you also build in the additional debt that you can raise via the bonds to build that capital? And lastly, on commission regulations if any that comes through, then how would kind of things play out with your primary partner, which is HDFC Bank?
Yes, so together these two capital raise options could positively impact solvency by 1,300 bps, right?
Nippon Life India Asset Management Limited
Congrats on a good set of numbers. Firstly, just a probably naïve question here. But when you, gold ETFs and silver ETFs basically purchase, what natu re of gold and silver and then?
And you cannot take any exposure to derivatives on this?
Life Insurance Corporation Of India
Just on the previous participant's question, your adjusted net worth from H1 FY25 to H1 FY26 has jumped while your value of in-force business has gone down. What explains this different movement in both the elements?
Okay. MTM is the main factor contributing to both the elements.
Sorry to harp on this VNB thing again. So on the par side, have we moved from 7.5% sharing to 10% sharing. And you've been alluding to the fact that the mix has been adverse in the par side, which has kind of dented the margins. Could you give some more granularity as to what is the kind of mix that is impacting whether it's the tenure of the products or it's the different nature of the product that's kind of impacting this? That would be my first question. I'll ask other questions later.
And we have moved to 10% sharing, right?
Nuvama Wealth Management Limited
Congrats on good set of numbers. Just a few questions. Firstly, on this Asset Services side, while we have seen that the assets under custody and assets under clearing has more or less been flattish sequentially in Q4, but we still have seen a very good jump in revenues. What will be that attributed to?
Okay. Got it. Now coming to the private segment, where we have seen transaction revenues holding up pretty strong, it's at about INR90 crores in this quarter. What would you attribute to this? Would it be unlisted shares that has created this or how should we look at it?
Good morning, Ashish and Bharat. Great set of numbers. A few questions. Firstly, on wealth, could you give me some understanding on the breakdown of your managed products category and what is the kind of share of insurance or some other products, the breakdown will really help us understand as to how things are moving. And the yield pressure in the wealth segment is primarily just because of NII going down right, nothing else to be kind of looked back there. So that's on wealth. On private, again, breakdown of AUM with respect to especially the ARR AUM that is from which segment does it come through that will help us understand better. And again , the yields have been declining consistently. It's not that just the recent quarter or anything else. But how should we look at it from a structural standpoint whether the yields have to be assumed at the current levels or it can see further decline. Bharat did allude to it, but your view going ahead is something that we'll look here. And also, there is some weak net new money in this business. And last question would be on asset services. What is the kind of split between d omestic and international here and is there any concentration risk in the international piece? Those would be my questions.
Just one question there on net flows on the private side.
Anand Rathi Wealth Limited
Yes, hi. Congratulations a good set of numbers. Sir, just one when you give your guidance, what is the kind of mark-to-market and flow assumptions that would have got built into your forecast?
Just trying to understand this, even when we are sitting with the RM to discuss his end of FY'26 aspiration of an AUM, he would have or he would want to see from you what is the kind of market returns we should build for his AUM numbers. And he would give you a flow number that he would be able to get from his existing customers or from the new customers. So that is what I was looking for as to -- that could be -- because the M2M number could be similar for all the 300- plus RMs that you have. So that should be similar, right?. Otherwise, everybody would assume their own set of mark-to-market and with the aspirational targets.
Congrats on at great set of numbers. Just a couple of questions. Firstly, when you were mentioning about your alpha generation, you mentioned your performance versus the NIFTY. But could you also give some colo ur as to how many of your portfolio schemes would have outperformed their respective benchmarks. And what would be the average data over their respective benchmarks?
2.9%.Okay. Great. And the other thing is from a structural product, how do you see the share of your structured products, say, over the next three, five years, how do you see that kind of changing?
Star Health and Allied Insurance Company Limited
Just to continue on the point of loss ratio and combined ratio, at the beginning of the year we had mentioned our aspirations to improve the loss ratio by 50 basis points YoY and combined by 100 basis points which seems to be a stretch now. Any color on what kind of combined ratio or loss ratio should we expect for the full year of FY'25? Also Anand, you mentioned about price hikes. Would you also consider another price hike in Family Health Optima? One more question on the group business. While you mentioned that group business is high for us, but I would assume that a large portion of that group business is banca -based because your contribution from banca is almost like 8%, so in that sense that particular piece of business ideally has a lower loss ratio versus the employer, employee. In that sense it would be great if you could give us a split between the employer, employee and banca -led products and relatively how the loss ratio kind of impact happens from the banca channel because that is something which has seen a significant increase rather than the employer, employee.
Anand, my question was very specific on the banca share. The banca is already at 8% and that is the kind of mix on the group business. Wh y should the group loss ratio be impacted by increase in banca because that's generally a lower loss ratios business? That was my understanding. Correct me if I'm wrong.
Central Depository Services (India) Limited
Sir, firstly could you spell out the rationale for cutting the transaction charges?
Just trying to get this again, but I'm extrapolating what you have done right now to the True to Label charges and I think this cut was announced after the True to Label charges announcement?