Questions across 67 calls

Shreya Shivani

CLSA

ICICI Lombard General Insurance Company Limited

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

I have two questions. First is on the net commission rate for the quarter. It seems like it's slightly elevated when I compare it to the second quarter of last year. Could it be because of higher sales in the Retail Health segment? Have we changed our commission structure in that product or is it just because the product mix has shifted more towards that segment? That's the first question. Second, sir, majority of the rise in the combined ratio in this quarter has been because of the catastrophic losses. So, will we still hold on to our guidance of being able to touch 101.5% as a closing combined ratio in Q4 FY25? Given that the majority is from catastrophe and in case we don't see any more surge in claims, so just the guidance around that.

So, you are saying your catastrophe reinsurance will be priced worse off for us for the industry going ahead, right, because of the numbers?

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

Sir, I basically have a question on the Motor Segment where you guys have delivered quite well, particularly in the first two months of this quarter. Some color, if you can give about, I know you have said that more growth came from old vehicles than new vehicles. I am not sure if I got that right, if you can help me with that. Second, the thing with the motor segment is that the motor TP book has seen quite a strong growth. OD is the fastest for you, but TP growth was also very strong given that competition in this segment has been de - growing. Also, the loss ratio or the reserving triangle for a lot of competition for FY2024 saw a bit of worsening. So, i s there any dramatic shift in the industry dynamics or the competitive landscape or any color that you can give to us about the motor segment? And whether we can sustain this 20 % -25% plus growth rate in the motor segment, that will be useful.

And sir, just last one comment. Are you guys seeing any benefit from the Motor Vehicle Act , in sense of are you seeing faster claim intimation? Is there some change in the industry dynamics from that perspective?

ICICI Lombard General Insurance Company Limited CC-Mar24.pdf · 2024-04-17

I have three questions, sir. First is on the overall growth outlook. So health book for us has done quite well since past two years; since FY 2022, the growth has been north of 25%, 30%, 40%, right? So, expecting some moderation in growth going ahead, what will be the key drivers for growth in FY2025-26, which segments would be driving majority of the growth and how much higher than industry growth can we deliver in the years to come, given that in the Motor segment, though there has been an improvement and discipline ha s come in, but it's still quite a high combined ratio for one to expect us to grow very fast in the Motor segment. So that's my first question on key growth drivers and how much faster than industry can we grow in FY 2025-26. Second is on the Motor TP segment. Looking at the reserving triangles for the Motor segment, TP segment specifically, so there has been a much higher reserve release in accident year '18, '19, '20, I mean the trend looks much better than the prior year trend. So how should we read this data -- does this also significantly add to your FY 2024 loss ratio improvement on YoY basis apart from more new cars being sold? Third question is on the combined ratio, we've done quite well on the combined ratio side, for the fourth quarter that has gone by much better numbers over there. So going ahead, what is our guidance on combined ratio? And one question that I had also asked at the analyst meet about considering natural calamities as business as usual going ahead, does that change our combined rati o guidance in anyway?

So what you're saying basically by FY2025 we were targeting 102%, that can be 50 bps lower at 101.5 % unless there is some other? And what about the catastrophe events, are we still watching it or have we come to a conclusion on how we should be dealing with?

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

Thank you for the opportunity. Congratulations on a good set of numbers. I have two questions. Sir, f irstly, excluding all the calamities that we have seen in 9 months, your Combined ratio has come at 102.3%, right? And we had earlier given a guidance to reach 102% by FY 2025 end. So, clearly a much better growth in new vehicle sales has supported lower loss ratios this year. So, can you help us understand what is your revised guidance for the next year or next 2 years is on the combined ratio side given that we know that you are currently investing in the health portfolio and on the technology front etc. So, that will be the first question. And the second question, sir, can you quantify the loss ratio trend for Retail health and Group health? And there have been some covid cases in the Southern part of the country. How many cases do you have? Is it something that we should be concerned about for the fourth quarter? Just trying to understand if there's yet another thing tha t hits us in the next quarter?

And the overall combined ratio guidance, I get it right that you may come back to us after maybe a quarter or two if there is any change in the guidance, for now it's 102% for FY25?

HDFC Life Insurance Company Limited

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

Ma'am, I just wanted to understand how the negotiations with the distributors usually pan out? So, for example, you guys have launched a majori ty of your 40 new products from 1 st October onwards. So , all of your distribution partners have agreed to certain terms and conditions? And they can come back and renegotiate with you after wh at time period? How does this usually pan out? That's my first question. And my second question, again, on the new products that have been launched. How much cut have we taken? I know that we did not reprice our non-par product in the second quarter. So how much repricing or how much cut in IRRs did we do when we launched the surrender value version of these products? Those are my two questions. Thank you.

Okay. So there has been no repricing since whenever the last was done, nothing in 1Q, nothing in 2Q in spite of the new surrender value regulations getting launched?

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

First is on the VNB walk. I know it is a very small number but there is some change in assumption. If you can give some details of which assumptions have, we changed? Is there any change that we should know about? Second, on the surrender value itself. It is very useful data that you have put across on slide 8 about how much surrenders you actually face in the different years. But given that the surrender format now is such that probably after third or fourth year the customer can actually get 100% of their principal back unlike earlier when it would be at 50% or 60%. So, in that situation, are you also accounting in for any change in customer behaviour? Or have you thought about how will you go about that?

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

First is on the VNB walk. I know it is a very small number but there is some change in assumption. If you can give some details of which assumptions have, we changed? Is there any change that we should know about? Second, on the surrender value itself. It is very useful data that you have put across on slide 8 about how much surrenders you actually face in the different years. But given that the surrender format now is such that probably after third or fourth year the customer can actually get 100% of their principal back unlike earlier when it would be at 50% or 60%. So, in that situation, are you also accounting in for any change in customer behaviour? Or have you thought about how will you go about that?

HDFC Life Insurance Company Limited CC-Dec23.pdf · 2024-01-12

I have two questions. First is on the slide on Tier-3-4 cities. Can you help us understand which channels do you th ink will help you grow better in those geographies, whether it's agency channel, whether it's the Banca or a combination of both? And also one question, as you expand into deeper geographies, what is the timeline that you think of when you will be able to deliver higher than industry growth now that you're pivoting your business model away into , driving it more into the smaller cities ? S econd is on the timeline for regulation. While we've you've mentioned a few things about the regulation, can you help us understand, is there any indicative timeline that you can give us that maybe it will get implemented in the next quarter half year or anything, any flavor around that would be useful? Thank you.

And on the timeline of the regulation, please?

Max Financial Services Limited

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

I have two questions. First you just mentioned refiling these products between or pulling these products back between 15th August to 25th September. So, last year 2nd Quarter was already a high base for you. On a total APE basis, it was a 36% YoY growth quarter. So, should we expect some disruption in growth in this quarter going ahead, how are you looking at it, will majority of the growth in the coming quarter be completely driven by ULIPs and protection and PAR and non-PAR will remain very subdued? Second, you've shared a data point on breakup of th e proprietary channel. That eCommerce is now 37% of the mix there and direct is 18%. What was this in last year 1st Quarter?

Of the 18, how much was direct last year in this quarter?

Max Financial Services Limited CC-Mar24.pdf · 2024-05-07

Congratulations on a good set of numbers. I have one question basically trying to understand that the great agency addition that you have done this year. Now Max has always had the highest agent productivity on the street. So for these agents, which have onboarded this year, as and by the end of FY '24, fair to say that the productivity increase would come through FY '25 or it takes more time than one year, if some clarity on that would be useful? And also another question is the banca channel this year only grew at 12%. And given that this base, what kind of improvement or that we could expect in FY '25 under no base of banca channel for this year? These are my two questions. Thank you.

Got it. And is it fair to say for the next year also, your agency and probably prop channel will manage to do better than banca or will we see better, some growth pickup in banca as well?

REC Limited

REC Limited CC-Jun24.pdf · 2024-08-01

Thank you for the opportunity. I have two questions. Sir, first is on the infra segment. So till last year we had an idea of the projects that you were disbursing for, I mean Mumbai Metro and Bangalore Metro some of the projects. Can you give us some details of what kind of projects we have disbursed for in 1Q? Are they PPP model or are they still government projects that you are basically participating in? That's first. And sir, second on your Gross Stage 3. So it looks like Lanco Amarkantak we have still not removed from gross GS 3 right? So when something like that happens that you've already written back the provisions which you did last quarter but probably all approvals have not come through and that's why you've not removed Lanco from GS 3. So, in that case, if this gets delayed any further, will you have to build more provisions for this or how does the accounting work in such a situation? If you can help us understand that. Thank you.

Got it, sir. Thank you. And just one last clarification. So, the projects which are probably closer to resolution right now, which we should pay attention to Sinnar and Hiran maye or Nagai also something that we should probably keep an eye on.

REC Limited CC-Mar24.pdf · 2024-05-08

Most of my questions have been answered. Sir, one question was that during the press meet, you had mentioned that there are about 9 or 7 projects which have to be liquidated this year. These are your bad assets. So what is the approximate size of these out of the INR138 billion Stage 3 we have, what is the size of these? That's my first question. Second, just going back to the same regulation point only, I had some interaction with some industry experts who said that if these regulations on asset provision lead to lower liquidity availability or in the market or higher lending rates, private CapEx is something that could be impacted. So that really goes -- I mean, that becomes very counterintuitive to what the government and then what the regulators are trying to do. One is trying to push CapEx and other regulation may end up leading to impairment of private CapEx coming in. Any comments on that? And what kind of feedback are we going to push RBI towards on the same?

Sir, and just one question. So these -- it's a clarification on the regulations. So the regulation talks about only the project finance. So say, a bank is doing a bridge finance kind of a loan for a renewable project before the project finance comes in. S o that bridge finance kind of a loan, even though you're doing it for a CapEx plan, that doesn't get covered under this regulation, right?

Star Health and Allied Insurance Company Limited

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

Sir, I have one question regarding the larger healthcare ecosystem. So, last year we had heard that the hospital rates had revised upwards after the COVID and they never corrected, and they remained elevated. Has there been any movement in hospital rates, hospital prices that you are seeing this year, this quarter, any trend that you can help us understand? And as in, is that one of the reasons why you're taking another price hike? That's my question, yes.

Sir, is there any colo ur that you can give us on whether the hospital prices are worse or increasing in the metro, Tier-1 cities, more in Tier-3-4 cities, or does it vary by geography? Or do you see all India pan-India there is an increase in pricing or jack up in pricing for hospitals? Is there any colour you can help us with on this?

SBI Life Insurance Company Limited

SBI Life Insurance Company Limited CC-Jun24.pdf · 2024-07-24

I have two questions. First is on the Banca channel, SBI Channel, I know in last quarter also they were slow. But in general, the trend for this channel last year through the fourth quarter it didn’t decline but the growth sort of slowed down. So , has there been any SBI stance over insurance or anything that you can share on that? Second is on the competitive landscape, a fter last year ’s taxation change had entered Tier-III-IV geographies which is your home turf in a way. So , are we seeing any increased competition in your geographies, any color you can give around that?

So even incrementally right now you’re not seeing any increased competition or is that what you’re trying to indicate?

SBI Life Insurance Company Limited CC-Dec23.pdf · 2024-01-25

Congratulations on a good set of numbers. Sir, I have two questions over here. So, we've seen many players are now refocusing or pivoting their business model to enter into the Tier 2, 3, 4 cities, ri ght? So clearly, the competition in these geographies are set to rise. Sir, in the backdrop of this, knowing that next year onwards, many more private players who were more metro city focused are going to be in your geographies, what gives us an edge in competition versus these players, what would be our guidance for next year, or at least for the medium term, if you can help us understand that, it will be useful? Sir, second is on the surrender value regulation. While we understand that things are currently under discussion, but what is your view on how things are moving? What will be the timelines? And what could be the impact on your overall margins with the way the regulation comes in? These are my two questions.

Sure, sure. So, does that also mean that you will also expand your presence in SBI branches? And sir, any guidance for growth for next year?

ICICI Prudential Life Insurance Company Limited

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

Congratulations for delivering a good set of growth numbers over here. Sir, my question is again on the margins itself and 24% margins, while the quarters of 50% mix coming from ULIP is quite good, going ahead, two questions over here, is there any artificial limit that we maintain on the product mix on the ULIPs or is it just going to be dependent on what is the flavor of the season and what is selling more? And second is this 24%, I mean, one can expect this to continue for another quarter, but after once second half starts, that is after October begins, where should we see the trajectory? If you could give us some numerical, some numbers around it, maybe 50 bps contraction, any numbers that you can help us with on where would this 24% be in third quarter or maybe nine month or FY2025, that would be very useful.

Nippon Life India Asset Management Limited

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

Congratulations on a good set of numbers. I had a question on the SIP flows. And is there any color that you guys gave out on which is your segment where majority of the flows come into, not in terms of the tenure or anything that comes out in the B30 but i n terms of the product segment? And any color on how those -- has there been any change or any need in that segment where the SIP flows were coming? Has that shifted to any other direction? Any of those -- any color on that will be useful.

Sure, sir, and just that you mentioned B30, so should we expect whatever market share you have in B30 market, similar would be the trend with SIP flow or how should we look at that one then?

Nippon Life India Asset Management Limited CC-Mar24.pdf · 2024-04-24

Most of my questions have been answered. I just wanted clarity on the staff cost, did you mention that it’s the major increase that will happen next year onwards will be on account of ESOPs and not really any addition to the staff counts, right? I should assume the staff count to remain at the 1,000 level for the next foreseeable future. Or will there be some additions on that side as well?

And just also on the admin cost, is there anything? The pickup for the last two years has been strong on this cost. Is this in line with the growth in business or was there anything incremental that has happened?

The New India Assurance Company Limited

The New India Assurance Company Limited CC-Dec23.pdf · 2024-02-21

Yes, thank you for the opportunity. I have two questions. First is on the loss ratio for the health segment. Can you help us break up the loss ratio in the health segment between retail policies and group policies, specifically the employer-employee segment? And my second question is on the solvency ratio. So the solvency ratio for the nine months came in at 1.72. What is our internal target of where we want to keep it or where we are comfortable? I know the regulatory requirement is 1.5 times. And is my understanding correct that the higher claims that must have come through is what has dragged the solvency because the growth has roughly been only 10%-11%, right? So is that understanding correct?

And retail? Retail segment, which is your indemnity, retail policies? Yes, we are seeing the ICR at about 98%. Okay, that is 98%. And just one follow-up on the solvency ratio. So you will be raising capital or any plans because you're clearly under 2, like significantly under 2, which is your internal target?

Power Finance Corporation Limited

Power Finance Corporation Limited CC-Dec23.pdf · 2024-02-08

Thank you for the opportunity. Madam I have two questions and it is mostly regarding the loan book and disbursals so particularly coming to the disbursals for the LPS scheme? Till September 2023 you had mentioned that for the standalone book the sanctions under LPS has been Rs.705 billion of which disbursals were Rs.315 billion and right now you updated that the disbursals till December is at Rs.333 billion right so what was the reason that the di sbursal in this quarter under this LPS scheme was lower and effectively half of the disbursals are less right of the amount that you have sanctioned so what is the reason? Should I expect a slower disbursal under the DISCOMs for the next quarter also becau se that is the only way we can get to the loan growth for FY2024 that you are mentioning that you will repeat FY2023 loan book in FY2024 that is 13% loan book which means we will slow down in the Q4, I want to understand the dynamics of this and madam on F Y2025 given that we still have growth drivers with many of the segments probably infra segment also which the disbursals have started happening now can we get any guidance in FY2025 that will it be much better than FY2023 or FY2024 which you are indicating will be at 13% growth so largely my questions are around these?

Got it m adam and any guidance for FY2025 because as you were saying that LPS scheme disbursals will slowdown so FY2024 we should only expect 13% growth anything on FY2025?