very reasonable figures and we don't see much scope for reduction there. But the ICR, yes, we would be looking at reducing and our focus is to get the combined ratio less than 110%. Less than 110% is possible by FY '25? Again, it's a forward-looking statement. I said we are always endeavouring towards working towards this target. That is our target in the long run, yes. And can you mention about ROE also? What do you expect in FY '25-'26? These are all forward-looking statements. I think it would be difficult for us to mention them. But I would ask our CFO to answer, to take that question. Yes, just a ballpark. Actually, we always target to have a ROE above 10. So that is what we are aiming at. It's a target. Above 10. Okay. Got it. Thank you. The next question is from the line of Bunty Chawla from IDBI. Please go ahead. Thank you, ma'am. Just as you have said that the outlook is to bring below 110%, though in the long term, not in near future. But what are the triggers that should support bringing down this kind of a combined ratio? Yes, as I mentioned, the commission ratios and expense ratios are at very reasonable figures and probably some of the best figures in the industry. If you see for the nine months ended, our commission ratio, despite giving added incentives to our sales force, under the EOM guidelines issued by IRDA, our commission ratio for nine months was 8.74% and expense ratio was 13.84%. So combined with about 22%. The ICR is of course one factor which we are working extensively on. The nine month period ICR was 98.07%. Again, this was impacted predominantly due to the catastrophic claims and we are constantly endeavouring to settle these claims as early as possible and to update the provisions in line with the updated survey report. We are endeavouring to focus on improving the ICR of our motor portfolio as well as our health portfolio. These are two main components and a focus on these two prominent portfolios will help the overall ICR to improve as well as the combined ratio to come within the targeted endeavour. Ma'am, continuing with this, as you said catastrophic losses of around INR650 crores has impacted this. So if I need to understand what was the same number last year, nine months, so that if I equalise this number then I will get the ICR on an equivalent basis.

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So currently the provisions that we have made for these catastrophic perils is about INR659 crores and last year at the same time it was about INR202 crores. So there is a good increase of nearly INR479 crores on account of this. But like I said it is a constant endeavour to ensure that the claims are settled fast as and when we settle the claims the provisions get released. So hopefully by the end of the fourth quarter our performance for catastrophic perils will improve. So ma'am, if I reduce this INR650 crores minus INR200 crores, so approximately INR400 crores, if I adjust this, so your combined ratio should come last year around 116, right. So my query is how, what are the triggers or the steps or any outlook you can give from 116% to 110%, what are the things we are doing so that it should come down. See, like I mentioned the two main portfolios are health and motor and we are constantly endeavouring to improve the performance here. For instance, if you see in the motor performance, our OD ratio at the end of last year December was about, own damage was about 130%. So this is, you know, with a lot of focus on improvement here, this is now improved to about 118%. And our health portfolio also has improved, you know, from about, especially the group Mediclaim insurance, it has improved from about 108% to 103%. So these are constant endeavours which we are making, but at the same time for the motor third party claim ratio, that has gone up slightly, because we have seen that there has not been much increase in the motor TP premium over the last few years, it has been stagnant. And whereas, you know, after the COVID period, the quotes are now back in full flow and awards have increased and due to inflation, the average, you know, award amounts have also increased. So the TP ratio has, you know, gone up a little bit. We are, again, you know, it's a constant endeavour to ensure that we do a lot of settlement of these third party claims also and trying to improve the ratio there also. So these are, you know, a little bit of improvements in the motor OD ratio, in the health group ratio, but countered by the third party claims which have slightly gone up. So that's the overall impact on our ICR.

Okay. Lastly, in any segment, do we have taken any price hike or premium hike during this quarter or any of the segments, fire, marine, motor, any?

So yes, in health, we had increased our premium rates after nearly six years. I remember mentioning this in the last investor meet also that our health retail rates had gone up after a break of nearly six years, we had increased our rates. So the new policy rates had gone up from 1st of April and the renewal rates had gone up from 1st of July. Then there was a policy Asha Kiran where the rates had gone up from August onwards. So these are the rates which have gone up as and when the renewal takes THE NEW INDIA ASSURANCE CO. LTD. The New India Assurance Company Limited fa. fT471*fr ani-114"61te.s Februaty 21, 2024 place. So obviously that increase would have happened in the last quarter also for these retail policies. Plus, in addition, we have seen an increase in, due to the various impacts of the catastrophic perils over the last few years, the rate for STFI, that's the storm, flood, etcetera, in property, that has gone up by in the range of, you know, 15% to 25% depending upon the region. So that has overall impacted the property rates by in the range of 3% to 5%. So yes, we have seen an increase of rates in these two segments.

So just one clarification, you said increase of premium rates, it was around 3% to 5% you said. Is it right?

In property, yes. Overall impact of the increase in STFI, that has resulted in the net property rates going up by 3% to 5%.

No, no. On the health side, there has been an increase after six years of premium rates. So just the rate at which...

The increase has happened depending upon the different ages, the different age bands, and that has ranged from 20% to 30%.

20% to 30%. Okay. Thank you. Thank you very much.

Welcome.

The next question is from the line of Shreya Shivani from CLSA. Please go ahead.

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?

Yes, I'll answer your second question first. Yes, you're right. The impact on the solvency has been predominantly due to these increased catastrophic claims. And our internal guidelines and we want to take the solvency at anything above 2. That is our endeavour and our target. So that was the second question. Regarding the first question, your question on the health insurance, you wanted to know the ICR of the employer-employee relationship. That's what we call the group Mediclaim. That was last year at 108% at this point of time, 31st December 2022. It is now, at the end of 31st December 2023, it has improved to 103%. fu~-Au TtnItty

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?

No, we will not be raising capital. If you see our net worth is at, one second, our net worth is at 19,000. It's at 20,754, but on fair value, it is 44,690. So it's nearly two and a half times. So the fair value change is not counted for solvency, but our actual net worth including the fair value change is 44,690.

We got it. We got it now. This answers all my questions. Thank you so much.

You're welcome.

Thank you. The next question is from the line of Dev from Haitong. Please go ahead.

Okay. My question was on the lines of — in the commercial line of business, mainly fire and marine, the growth has not been coming on a nine-month or over nine-month period. You've also mentioned that that was — I guess that was probably because of the prudence that you have got into the system of underwriting and bringing in profitability. So, is that the only reason why the growth has been weak -- somewhat weak in the commercial line of business? And is there anything that we intend to undertake to improve this kind of growth in these lines at least?

See, the growth in the fire segment has been about 6.26%. And the growth in the engineering segment, it is in the range of about 15%. There has been a lot of investment in the infrastructure. So, we are seeing a lot of increase in the projects, policies coming which fall under our engineering policies. So, we are seeing many large projects -- many new projects for which we are issuing engineering policies. As regards fire, yes, we have been quite prudent in underwriting these — the policies. And, like, we are focusing on growing in the right segments. So, yes, we have taken a conscious decision in some areas which have been continuously loss-making for many, many years. So, we have taken that conscious decision possibly not to renew or to renew at harder terms which the client may not have accepted. But, yes, there is a lot of competition also in these segments. So, yes, in fire, we have seen a growth of 6.26%. It has grown from INR4,900 crores to about INR5,264 crores. Engineering growth has also been there of one second. In engineering, we have seen a growth of from about INR700 crores to INR772 crores.

Okay. Okay. Got it. Got it. That's helpful. Thank you.

Thank you. The next question is from the line of RK Khandelwal, who is an Individual Investor. Please go ahead. 0 THE NEW INDIA ASS,P4:,.<CE CC• -_- - -41,112471T refT. February 21, 202-1

Sir, you have substantial investment in your portfolio where market value has increased substantially. Do you have any plan to dispose of some of the shares to earn long-term capital gain and distribute among the shareholders?

I will request my CFO, Mr. Francis Titus, to answer this question. Yes. As you said, we have a lot of fair value reserve account, but we will use it judiciously. It will be, as and when the requirement is there, only that time only we will be monetizing those shares. So, we cannot be selling it off all at one and giving it to the shareholders at one instance. No, no. At present, market value is high and since your portfolio has increased substantially two, three times and you have a substantial gain, therefore I say part of the gain can be used. Yes, Yes. That we are already doing it. We are already doing that to that extent required. So, that is already being done. That is why also we have the profits during the period. Also, there are underwriting losses. You have some plan in future also in the coming year, coming fourth quarter? Yes, yes. We have the targets, internal targets. So, that has been taken care. Okay, okay. Mr. Khandelwal, do you have any other questions? No, no. It's all right. Thank you. As there are no further questions from the participants, I would now like to hand the conference over to Ms. Neerja Kapur, Chairman and Managing Director of the New India Assurance for closing remarks. Thank you, Sager. And thank you, Arvind and your team from Veritas Reputation for organizing this conference call. I would like to thank all the participants again for attending our call, taking time out from their busy schedules. If you have any further queries, I will request all of you to please get in touch with us. We would be happy to address them all. Thank you once again.

Thank you. On behalf of the New India Assurance Company Limited, we conclude this conference. Thank you for joining us. You may now disconnect your lines.