Questions across 5 calls

Sanjeev Mantri

Firm not listed in source transcripts

ICICI Lombard General Insurance Company Limited

ICICI Lombard General Insurance Company Limited · 2026-07-15

So, and if I may also add, see, this verdict has come on June 11th and we are barely a month down, really very early days, but it has come from the highest court and we have to respect the judgement whichever way it comes. Gopal briefly spoke about the fact that we have been subjected to multiple judgement s and if you look back in time in terms of history from 2009, there was a Sarla Verma case which redefined the future prospect of Salaried Class , then 2012 there was Santosh Devi, National Insurance came in 2017, then in the recent past which you just referred to, there was Satinder Kaur which came in 2020 and also in 2021, Kirti case came in. So, there have been multiple cases which have come in the past which has redefined it. Past book, as things stand, and we are very confident in terms of saying that our reserving philosophy is holding us good, so there is no impact. It is on ly the sources of Quarter 1 that we have taken, but I would also be candid enough to admit that the factors which Gopal has just covered, this is purely on prudency as well as on a conservative basis, which is the way we have always conducted ourselves in Motor and in particular this time we spoke about why we have been able to do what we are on Motor and what has been in summation our performance vis -à-vis the market, but if there is a risk evident, it is important that we call it out, but while that is there, we are also equally equipped to manage it and a multiplication of 1.65 into the next three quarters would be unfair. We will have to wait for the situation as it evolves, we also will keep you all abreast of what it is.

It is another significant development which you are appraising, nothing more than that and we have taken that into the Qua rter 1 financial because it is prudent and we have always been conservative, but beyond that it will evolve and trust me the industry combined is 128 Sanketh. I mean you know that there will be things which will intervene 110% to make it better than where it stands and if that is the case then it will play out over time.

ICICI Lombard General Insurance Company Limited CC-Mar25.pdf · 2025-04-15

Yes. Thanks, Prayesh. With respect to the growth, even when I was reading in terms of what it is line by line, I had covered. But again, I'll talk about it. Motor per se, we are expecting on the new sale mid-single digit. We're also going by the numbers as has been put across by other OEMs as to what they are seeing, albeit the base on the Private Car in particular, is high. I also spoke about the fact that the Q4 FY2025, Two-wheeler numbers were negative, which was a bit of a surprise vis-a-vis what we saw in Q3 FY2025 and Commercial Vehicle, I would be more positive overall because government CAPEX and a lot of other activities, which in the last financial year had remained subdued, should get picked up. So net- net, Motor, we will see single digit, maybe just about double digit growth is what our prediction is. And look, all of these things can change real time. We'll keep you updated, but that's what our belief is. On the Health side, Prayesh, our own belief is we should see double digit growth. Now Health is two components, Retail Health and as well as the Group Health part of it. I'm more clearly talking about the Retail Health part, which will continue to see far more incremental business in terms of new to insurance, and also there would be whatever inflationary growth that comes out in terms of overall. So we would remain positive on Health. Also, Health with a 38.1% contribution, we will not be surprised if we see that contribution probably going to a 40.0% thereabouts and will continue to be the largest player. Last but not the least, in terms of the Commercial lines of business, we've had one of the most difficult years on Commercial lines, if you see. We've never seen a growth of this nature going to low single digit in the last 7 to 8 years. Clearly, it had multiple factors, Fire pricing, which we spoke about it. However, going forward, and you spoke about, and I'll probably talk about the other question that you put across, we saw a lot of semblance in the industry overall on the Fire side and on that basis, we do believe and we do see relatively much better numbers on Fire, and with the activity on CAPEX, which is coming through, Engineering line of business should also do well. So overall, Commercial, we would like to believe that we should be back to a double digit growth at the industry level.

Yes. So Prayesh, the simple answer is would we like to improve our Combined? Certainly, yes. And as Gopal mentioned, we saw a trajectory when we came in last year, the industry Combined had shown improvement, on the basis of that we felt we will go. We also would like to see a similar thing, but the deterioration happened, and the deterioration more so has happened in terms of Motor moving from 118.2% (in 9M FY2024) to 123.8% (in 9M FY2025) for a 9 month Combined. So that being said, we will let these things play out. And in our mind, the single factor that drives is are we able to generate ROAE? And that's what largely Gopal is speaking about it, as far as we as an entity is concerned.

ICICI Lombard General Insurance Company Limited CC-Sep24.pdf · 2024-10-18

So, overall, you are right. The CAT event in Q2 has impacted the loss ratio by 1.9% and thereabouts. Otherwise, overall the combined ratio of the Company, if net of CAT event is looked at, has shown an improvement. In terms of the guidance, as things stand, we have no reason to change the guidance at this point of time. We very keenly will look at the industry numbers also as they come out on the Q2 and the H1 P&L. I spoke about in my own script which I said that the Q1 number for the industry has come out relatively status quo while we used to have a year on year improvement last year and that also has come on account of elevated loss ratio and little bit of impact on account of expenses. We stay committed. At this point of time, we have no reason to deviate from it. We do look at the intensity in the landscape that you see in the commentary overall as to what is happening on the commercial end of business. We grew GHI business at almost 31% and thereabouts and the Q2 again you look at the numbers, we have gone down and we clearly do understand that these are all changes. The fire business has gone through a bit of a concern in terms of where the discounting has increased again. We have abstained from any wild participation and still we have been able to maintain the market share on each of these business lines. So, yes, we stay committed to that, but we continue to watch the market scenario.

So, on the second point on the motor outlook, you are right. The overall numbers that have come out for the industry has been muted, and there is nothing new that we are talking about. It's all over, every possible channel as to where the industry is. But I must also highlight one fact that on private car in particular, which contributes more than 50% of our portfolio as far as motor is concerned, it's on a very high base. We have had a very secular run on private car as an industry, almost when COVID was still there and then it kind of continued for a while. So, on a very high base, if it is flattish also, it does not overtly concern us. Yes, two- wheeler has shown better numbers, but two-wheeler also had recovered only 80%-85% of pre-COVID levels while private car has moved in the zone of 130% to 140% of what it was pre-COVID peak. Commercial vehicles, mixed bag, but which can be a proxy in many ways to the industrial activity, which takes place. We do believe it can pick up in end of Q3 or maybe by Q4. So overall, yes, we are expecting single-digit growth in H2, but that itself should suffice. This also is the backdrop that as an industry we have not had much of a TP hike for almost the last three years, if I may say. It's a combined factor, but we stay committed to harness what works for us. We are excited with H2 also and the festive season has just got started. Footfalls have been high, the sales numbers are still building up, probably we will have a much better sense how the festive season goes by November mid and thereabout once the Diwali part is over.

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

Thanks, Shreya. Yes, clearly, not couple of months, I think the full quarter, the team has been able to do pretty well as far as motor segment is concerned. But look, we always maintained a very steady line that being a multi-line, multi-product company, in that sense, we will go where we believe there is value. At some point in time, if we go back in time in terms of our quarter 1, quarter 2 call last year, you had seen that we had retracted significantly because it was not making commercial sense to pursue what was going on. We spoke about the industry numbers for FY2024. There is a bit of a semblance in terms of the loss ratio which is there. We see an overall industry-wide some improvement, while still it stays concerning. We were able to leverage that part of it. With respect to the new and old, new sales per se, as I said, the FADA number has given a very muted number, but overall supply has increased and that should hold good in the ensuing quarter when you have festive season coming in. For us, again, from deep mining, we were able to do a much better job on getting the old book. So you are right. Our new grew at around 16%, 17%, but the old book has g rown at almost 33%. So , that's what has given value for us as a company. Question on the last one, I can leave it to Gopal if he wants to add something, is this sustainable? I mean, this kind of a market share gap, I don't think sustainable will be a right thing. But we will continue to stay vigilant. If there is a value on the table for us, you will see us operating with same intensity. It's not that we were not gaining market share, we were not doing what was required. We will continue doing the right things and hopefully the outcome will fall in place, but yes, on motor, overall as a segment , we continue to remain committed as an entity. Gopal, you would like to add something?

No, actually, Shreya, it's early days, but we do see overall on a sequential basis claim intimation on faster note than what it used to be, but can we be conclusive about it as yet? No, but overall early signs are positive in the direction that augurs well for the industry, not only us.

ICICI Lombard General Insurance Company Limited CC-Dec23.pdf · 2024-01-16

As far as the combined ratio guidance is concerned, Gopal will share with you in detail the loss ratios that you're seeking on the retail as well as the group health side . Clearly, we stick to the guideline of what we had mentioned that we will go to 102 over a period of time. In terms of revision, clearly from an industry standpoint, again we are seeing ourselves doing reasonably well, but does this lead to make us believe that the guidance can go through a change at this point, we would say we hold to this. We want to see this trend holding up over next maybe a quarter or two. And then we'll come back to the market if we believe there is a revision to be done on that. In terms of retail and GHI trending by, we have seen improvement over what we have achieved over the last quarter. Gopal will share the numbers and details.

As of now, no cause of concern.