Q2 25/26

Oct 14, 2025

A very warm welcome to the ICICI Lombard General Insurance Company Limited's Q2 and H1 FY2026 earnings conference call from the senior management. We have with us today Mr. Sanjeev Mantri, MD and CEO of the company, Mr. Gopal Balachandran, CFO, Mr. Anand Singhi, Chief Retail and Government, Mr. Girish Nayak, Chief Technology and Health Underwriting and Claims, Mr. Sandeep Goradia, Chief Corporate Solutions International and Bancassurance, and Mr. Gaurav Varora, Chief Reinsurance, Underwriting and Claims for Property and Casualty. Please note that any statements or comments made in today's call that may look like forward-looking statements are based on information presently available to the management and do not constitute an indication of any future performance as futures involve risks and uncertainties which could cause results to differ materially from the current views being expressed. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjeev Mantri, MD and CEO, ICICI Lombard General Insurance Company Limited. Thank you, and over to you, sir. Thank you. Good evening to each one of you. Thank you for joining the earnings conference. Call of ICICI Lombard General Insurance Company Limited for quarter two. H1 financial year 2026. I would like to commence with a brief overview of the recent economic and industry trends which have shaped the operating environment over the past few months. Following that, our CFO, Mr. Gopal Balachandran will take you through the company's financial performance for the first half ended September 30. During the quarter ended June 2025, the Indian economy sustained its robust growth trajectory, registering a GDP growth of 7.8%, marking a five-year quarter high and surpassing expectations despite global uncertainties. The sovereign credit rating upgrade by S&P Global coming after 18 years reflects enhanced confidence in India's economic fundamentals, fiscal prudence, and related policies. Following on the heels of the 100 basis repo cut and targeted income tax incentives, the government has now unveiled a landmark overview of the GST framework which is expected to turbocharge consumer sentiment by rationalizing rates and simplifying compliance. The reforms are expected to make essential goods and services more accessible and affordable. This is expected to unlock stronger broad-based private consumption and accelerate economic activity. Collectively, these three policy actions are projected to inject nearly $2,200 to $3,100 billion into the economy. More importantly, these path-breaking reforms are expected to provide a significant boost to the non-life insurance sector. The exemption of GST from individual health insurance premium will make healthcare protection more affordable for households and is expected to increase the lives covered. In addition, the rationalization of GST rates in the automobile sector has lowered the overall cost of vehicle ownership. We truly believe that this will increase private mobility, enabling more Indians to own vehicles and encouraging upgrades to premium models. In line with our customer-first philosophy, we are committed to passing the complete benefit of lower GST rates to our policyholders. In conjunction with the above reforms, I would like to update on the Quarter 2 2026 numbers and dwell on the trends observed along with their impact to the general insurance industry. The health segment continues to remain the largest contributor to the industry and accounts for almost 40% of GDPI mix in H1 of 2026. While the market continues to be moderated due to the 1 by N accounting norm post September 2025, we have witnessed a significant uptick in the retail indemnity segment of the business. We remain confident that more individuals and families will continue to enter the health insurance fold and expand their coverage. Now coming to the auto sector in quarter two 2026, this is the data published by FADA. Auto industry has grown by 1.3%, the private car segment grew by 2.9% and the two wheeler segment has seen a modest growth of 0.5%. However, for the month of September 2025, private car sales grew at 5.8% and two wheelers at 6.5% compared to September 2024. Notably and more importantly, for the first nine days of Navratri period, the private car and two wheelers growth stood at 34.9% and 36% respectively when compared to the Navratri period for 2025, which is significantly positive even after adjusting to pent. These trends coupled with our dominant presence in the OEM space give us confidence for a positive momentum in the second half of the year while the global economic environment remains volatile and uncertain. India's strong macroeconomic fundamentals supported by pro consumption policy stance are expected to act as a buffer and continue to drive domestic economic momentum. Given the supportive regulatory environment, we expect general insurance industry to sustain its growth trajectory over the medium to long term. Now coming to the industry performance for the period ended September 30, 2025, the general insurance industry reported a GDPI growth of 7.3% for the period. Excluding crop and health segment, the GDPI growth stood at 10.5% for the referred period H1 2026. Speaking of specific segments within the industry, the commercial segment reported a growth of 14.2% for the period ending H1 2026. The growth was majorly driven by the fire line of business which witnessed a robust increase of 20.5% during the referral period and the same contributes to more than 50% of the commercial business. The motor segment growth for the industry stood at 7.6% for the period H1 2026. This segment continues to face significant pricing pressure as reflected by higher industry combined ratio for motor line of business. However, as also spoken already with the current momentum, we expect H2 of 2026 to reflect improved growth levels visible in the first half of the financial year. The health segment including MassHealth grew by 7.8% for the period ending H1 2026. Within this, the group line of business grew at 8.9% for H1 2026 whereas the retail health growth stood at 9.3% for H1 2026 impacted by the one by N accounting norm. Speaking on the underwriting performance of the industry overall, the combined ratio for the industry deteriorated from 113.9% in Quarter 1 Financial Year 2025 to 115% in Quarter 1 2026. The overall combined ratio for private players remained flat at 110.8% for the period Quarter 1 2025 versus 110.7% for Quarter 1 2026. Combined ratio for the motor line of business continues to remain elevated at 125% for Quarter 1 2026. Our continued emphasis on profitable growth delivered a lower combined ratio of 102.9% in Quarter 1 2026, over 12 percentage points better than the industry average. I will now proceed to present the company's performance across three business segments for the period H1 2026. The company reported a degrowth of 0.5% in GDPI compared to the industry growth of 7.3% for the period H1 2026. However, excluding the crop and mass health segment, the company recorded a growth of 3.5% while the industry grew at 10.5% for the period H1 2026. In the Commercial Line segment, our growth stood at 6.5% for H1 2026 as compared to the industry growth of 14.2% for the period H1 2026. We continue to drive profitable growth through prudent underwriting, judicious risk reduction, and through our multichannel distribution. While growth in the fire segment in Quarter 1 2026 stood at 10.3%, we have been able to steadily increase growth in Quarter 2 2026 to 27.3%. Specifically, in the month of September 2025, we grew at 36.4% in the fire segment. We retained our leadership position in engineering, liability, and marine cargo line of business for the period ended H1 2026. Furthermore, we continue to play the role of a risk solution partner to our corporate customers while providing them best-in-class value-added services which helps them mitigate risk with holistic management solutions. In the motor segment, our growth stood at 2.2% for H1 2026 as against the industry growth of 7.6% for the period H1 2026, while our growth in the first five months of the financial year stood at 1.3%. The month of September 2025 witnessed a sharp uptick due to the festive demand and moderation of vehicle price attributable to the GST rate cut, taking our motor insurance growth to 6.5% in an increasingly competitive market environment witnessed over the recent quarters. We expect to maintain the growth momentum that kicked off in September while remaining focused on our journey of profitable growth underpinned by continuous distribution expansion and granular portfolio segmentation. Importantly, we continue to maintain our leadership position in this segment with a market share of 10.4% in H1 FY2026. We remain agile and are constantly taking conscious calls to optimize the portfolio profitability and as a result of these efforts, a portfolio mix for private car, two wheeler, and commercial vehicle which stood at 52.9%, 25.3%, and 21.8% respectively for H1 FY2025 has moved to a mix of 54.3%, 25.8%, and 19.9% respectively in H1 FY2026. In the health segment, we grew by 4.2% for H1 FY2026 as against the industry growth of 7.8% for the period. On an A1 by N basis, our retail business demonstrated strong growth of 25.2% for H1 FY2026, significantly outpacing the industry growth of 9.3% as of H1 FY2026. Consequently, our market share has improved from 3.2% in H1 FY2025 to 3.7% as of H1 FY2026. For the month of September 2025, the company has crossed 4% market share in retail health and this has happened for the first time. This performance has been driven by ongoing product innovation and sustained investment in strengthening our retail health distribution capabilities. This segment is expected to see an upward trajectory due to the GST reforms. The group health segment recorded a degrowth of 0.6% for H1 FY2026 over H1 FY2025 with a market share being at 8.7% as on H1 FY2026. The observed degrowth is attributable to a decline in business generated from the health benefit portfolio on account of muted disbursements in the unsecured and microfinance sectors. However, on the overall group health portfolio we continue to maintain a disciplined approach and in the month of September in particular we have grown at 10.5% as compared to industry degrowth of 1.8%. I would also like to apprise you of certain strategic initiatives that continue to drive operational excellence and customer centricity across the organization. IL Take Care app has further strengthened on ground claim support for our health customers. In H1 FY2026, the initiative touched over 58,000 customers, up from 34,000 in the same period last year. We received feedback from over 22,000 customers in H1 FY2026, 94.4% rated their experience as exemplary which has given us 4.5 as a rating over 5, highlighting the support during claims processing and assistance with hospital coordination. This reaffirms our focus on best-in-class service to our customers during the moment of truth, and that is all that matters. Our retail health claim settlement ratio within 30 days stood at 99.6% for H1 FY2026, placing us among the industry top performers and underscoring our commitment to prompt, efficient claim servicing. The company launched differentiated service desks in June 2025. These desks provide tailored servicing for two priority customer segments, senior citizens and high product density customers. By identifying these profiles at the point of contact and routing them to specialized customer relationship managers, we ensure conversations are empathetic, personalized, and value-driven. Over 96,000 calls were handled between June to September under this initiative, generating 3,000 cross-sell opportunities. Our belief is that differentiated care simultaneously builds loyalty and long-term value. Our IL Take Care app, a one-stop solution for insurance and wellness needs, has now crossed 18.4 million downloads, reflecting growing customer engagement and digital adoption. The gross written premium earned from IL Take Care app during the period H1 FY2026 was INR 2,088.2 million vis-à-vis the premium earning of H1 FY2025, which stood at INR 888 million. We have continuously enhanced our efficiency levels in motor claims. Our Preferred Partner network services 75.1% of our non-OEM claims for Q2 FY2026, up from 72.8% in Q2 FY2025. Furthermore, in the motor insurance own damage segment, 96.4% of our total claims were paid within 30 days for H1 FY2026. If we look at the industry numbers for the period Q1 FY2026, the same stood at 82.4%, clearly highlighting ICICI Lombard General Insurance Company Limited's superior claim settlement practice. Our unwavering focus on putting the customer first continues to reflect in our net promoter score for Q1 FY2026. We recorded an NPS of 72 for health claims and 66 for motor claims, demonstrating strong satisfaction levels and reinforcing our position as a customer-centric organization. We continue to demonstrate strong resilience in the face of rapidly evolving industry dynamics, underscoring our unwavering focus on delivering sustainable and long-term profitability. Our strategic direction is firmly rooted in our one aisle one team philosophy, which promotes collaboration, operational excellence, and a unified approach across the organization. In conclusion, GST and other regulatory reforms being positive for the general insurance sector, we are well positioned to ride this momentum responsibly, scaling our reach, sharpening our value proposition, and converting a more supportive demand environment into sustained high quality performance. I will request Gopal to take through the financial numbers for the recently concluded quarter and half year. Thanks Sanjeev and good evening to each one of you. I will now give you a brief overview of the financial performance of the recently concluded quarter and half year. We have uploaded the results presentation on our website. You can access it as we walk you through the performance numbers. With effect from 10-01-2024, long term products are accounted on a one by n basis as mandated by the regulator, IRDAI. Hence, H1 FY2026 or for that matter even Q2 FY2026 numbers are not comparable with the prior periods. Please refer to our investor presentation for further details. The gross written premium of the company was at INR 151.11 billion in H1 FY2026 as against INR 148.79 billion in H1 FY2025, a growth of 1.6%. GDPI of the company was at INR 143.31 billion in H1 FY2026 as against INR 144.09 billion in H1 FY2025, a degrowth of 0.5% against the industry growth of 7.3% excluding crop and mass health. GDPI growth of the company was at 3.5% as against industry growth of 10.5% in H1 FY2026. GDPI of the company was at INR 65.96 billion in Q2 FY2026 as against INR 67.21 billion in Q2 FY2025, a degrowth of 1.9% against the industry growth of 5.9% for the same period. Excluding crop and mass health, GDPI growth of the company was at 3.5% as against the industry growth of 9.8% in Q2 FY2026. Our GDPI during the quarter was mainly driven by growth in the preferred lines of business. The overall GDPI of our commercial line segment grew by 6.1% to INR 15.84 billion in Q2 FY2026 as against INR 14.93 billion in Q2 FY2025. On the retail side of the business, GDPI of the motor segment was at INR 25.11 billion in Q2 FY2026 as against INR 24.82 billion in Q2 FY2025, registering a growth of 1.2%. The advanced premium numbers was INR 39.13 billion as at September 30, 2025 as against INR 38.07 billion as at June 30, 2025. GDPI of the health segment was at INR 16.49 billion in Q2 FY2026 as against INR 15.29 billion in Q2 FY2025, registering a growth of 7.8%. Our agents, including the point of sale distribution count, was 147,408 as on September 30, 2025, up from 143,675 as at June 30, 2025. During the quarter, the industry witnessed multiple CAT events, mainly floods in various parts of the country, thereby impacting our combined ratio which was 104% for H1 FY2026 as against 103.2% for H1 FY2025. Excluding the impact of CAT losses of INR 0.73 billion in H1 FY2026 and INR 0.94 billion in H1 FY2025, the combined ratio was 103.3% and 102.2% respectively. Combined ratio was 105.1% in Q2 FY2026 as against 104.5% in Q2 FY2025. Excluding the impact of cat losses of INR 0.73 billion in Q2 FY2026 and INR 0.94 billion in Q2 FY2025, the combined ratio was 103.8% and 102.6%, respectively. Our investment assets during the quarter rose to INR 562 billion as at September 30, 2025, up from INR 554.53 billion as at June 30, 2025. Our investment leverage net of borrowings was 3.57 times as at September 30, 2025, as against 3.74 times as at June 30, 2025. Investment income was at INR 25.38 billion in H1 FY2026 as against INR 22.52 billion in H1 FY2025. On a quarterly basis, investment income was at INR 12.49 billion in Q2 FY2026 as against INR 11.24 billion in Q2 FY2025. Average capital gains net of impairment on investment assets stood at INR 6.16 billion in H1 FY2026 as compared to INR 5.21 billion in H1 FY2025. Capital gains net of impairment on investment assets stood at INR 2.36 billion in Q2 FY2026 as compared to almost a similar number of INR 2.37 billion in Q2 FY2025. Our profit before tax grew by 22.3% and stood at INR 20.71 billion in H1 FY2026 as against INR 16.93 billion in H1 FY2025, whereas profit before tax grew by 17.2% at INR 10.77 billion in Q2 FY2026 as against INR 9.19 billion in Q2 FY2025. Consequently, profit after tax grew by 22.9% and stood at INR 15.67 billion in H1 FY2026 as against INR 12.74 billion in H1 FY2025. PAT grew by 18.1% at INR 8.2 billion in Q2 FY2026, up from INR 6.94 billion in Q2 FY2025. Return on average equity was 20.8% in H1 FY2026 as against 20.3% in H1 FY2025. The return on average equity for Q2 FY2026 was 21.4% as against 21.8% in Q2 FY2025. Solvency ratio was at 2.73 times as at September 30, 2025, as against 2.7 times as at June 30, 2025, and continued to be higher than the minimum regulatory requirement of 1.5 times. Solvency ratio was at 2.69 as at March 31, 2025. The Board of Directors of the company has declared an interim dividend of INR 6.5 per share for H1 FY2026 as against INR 5.5 per share for H1 FY2025. As I conclude, I would like to reaffirm that we continue to stay focused on driving profitable growth and sustainable value creation while protecting the interest of our stakeholders and customers at all times. We'll be happy to take any questions that you have. Thank you. Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press STAR and then one on their touchtone phone. If you wish to remove yourself from the question queue, you may press STAR and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Prayesh Jain from Motilal Oswal. Please go ahead. Hi everyone. Congrats on a recent set of good set of numbers. Firstly, you know, just on this GST impact, right, the input tax credit will not be available for the health insurance piece. What was the impact of that and whatever the sales would have happened in Q2, and secondly, you know how going ahead, how are you kind of trying to offset this, whether through commission cuts or balancing it across. The product, other products that you have? That would be my first question. I think. September, it's just. About nine days and therefore to that extent I think it's honestly too premature to kind of call out in terms of what has been the impact. I think the key thing to look out is what we kind of spelled out as a part of the opening script. I think what we are seeing on ground, I think the demand momentum seems to be very, very promising and to that extent is what we have kind of clearly got reflected as a part of clearly increased volume of retail health policies getting sourced. I think the key to look for is how do we see, let's say things playing out over the next couple of quarters. We are very, very optimistic in terms of how this particular reforms is likely to kind of play out. In that context is how we have kind of looked at even let's say possibly the eventual impact of any input tax credit on sourcing. Obviously to that extent I think we have kind of, I think which is there. We have clearly communicated that it will be a part of the overall distribution cost in terms of how do we kind of manage the cost of sourcing. In that context is what even any related input will be part and parcel of that. That's the way how we are looking at it. More importantly, as I said, I think what we are quite excited and optimistic is the relative scale up that one expects consequent to this reform that has got announced. Absolutely. I think, Gopal, just to put across, we've been always discussing, debating in terms of what the sweet spot can be. Can it be 12%? Can it be this? Eventually, this stimulus which has come has been the biggest marketing in terms of letting the customer, every Indian, know how important health insurance is. This move is very significant in terms of managing our cost structure, something which any which way there was always a need. I think the industry is working to make it much more reasonable, and it's also a win-win because the volumes that will come on account of that will also see that our partners have enhanced income which will come. There is a clear play which is evident, and for us as a multi-line company, more so it puts us in a very comfortable spot because we've got other lines also. This is one component, the whole thing, and we are seeing tremendous tailwind. You can see our own growth numbers on retail indemnity which have been way ahead of the industry. This further stimulus that comes in also gives us an ability to scale at a much faster speed with responsible underwriting. The guardrail which will continue to guide us is that we underwrite in a responsible manner, and then the rest should flow out and get evened out with the volumes that will come through it. Sure. Just further on that, you know, Gopal or any, any impact that you would have seen in Q2? I understand it's just for nine days, but you. Would that have elevated the cost? Ratios in this quarter in two for the health segment, and also are you looking to increase the distributor? Are you looking to cut the distributor commissions, any communications or any negotiations that would have been started in that regard. I think, as we keep saying, Prayesh, when you look at the sourcing objective, particularly in the context of retail health, we have always kind of looked at it in the context of the combined ratio of the book that we are kind of wanting to write. There, if you see even on the loss experiences, pretty much even if you look at quarter two or even for the matter of fact half year, the loss experiences have pretty much played out in line with our expectations. To that extent, the portfolio is kind of doing well. Linked to that is our cost of sourcing, which is obviously a part and parcel of the overall combined numbers, which is what I called out at this point of time. The way we are looking at it is whatever cost that we would incur as a part of sourcing will pretty much factor in also the related possible loss that one is expected to see consequent to any loss of input credit that we will see in the context of retail health. What is more relevant is what even Sanjeev was kind of articulating. We will be pretty much pleased to look at how things will play out for quarter three. This is something that even the distributors will start kind of seeing the impact and the benefits. The increased volumes automatically translate into a better revenue stream for them. Therefore, when they look at their overall distribution income, they would kind of clearly realize that they are clearly far better off in terms of where they are. At this point of time, no significant changes to, let's say, whatever our overall cost of sourcing has been. Anything that we would incur as a cost of sourcing would also include the elements of input tax disallowance possibly that we will see on the retail health book. Got that, Gopal? The other question was if I look at the NWP to GWP, that ratio has inched up. Any change in reinsurance strategy which has kind of moved that, or it's just a product mix kind of. You have the answer preshow. Therefore, to that extent is what we keep saying. I think our business is obviously kind of cyclical on different lines of businesses. As you would have seen in quarter two last year, I think we did have a relatively higher proportion of crop mix, which obviously has a relatively lower retention compared to that. If you would have seen quarter two of this year, I think our proportion of crop is definitely much lower to that extent and therefore to that extent. The fact that retail health for us has kind of done very well. It was Q2 of last year when we had kind of largely launched anybit as a solution, and through the next 12 months as we speak is where we have been able to kind of witness an improvement in sourcing, which is what we spoke about. Also, market share in the month of September exceeding more than 4%. Given the fact that that has also kind of done well, where predominantly we kind of end up retaining a large part of the risk on the net. Hence, short answer, no change to the thought process in terms of reinsurance philosophy. More the outcome on the net premium to gross premium is purely a function of the change in the business mix that one has seen between quarters. Last question. Sorry to interrupt. Sir, may we request you return to the question queue for follow up questions. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to only two participants. If you have any follow up questions, you may rejoin the queue. Our next question comes from the line of Madhukar Lada from Nuama Wealth Management. Please go ahead. Hi. A couple of questions from my side. First, if I look at the commission ratio, that's in stock significantly in Q2. Is it probably more product mix, and is it also because of longer term products that we're writing? Is it because of that? Second, on motor OD we see an inch up in the loss ratio and very high competitive intensity, and we're losing sort of market share also in that line of business. With the GST cut, what would you expect from here? Should we expect the competitive intensity to come down and some market share recovery happening over there, and why are our loss ratios going up despite we being more conservative in this line of business? Madhukar, I think on the first part, as we keep saying, one is what you rightly answered and what I kind of talked about. I think there is always an element of change in the business mix in terms of what you look at in quarter two versus, let's say, quarter one or even, for the matter of fact, when you look at even vis-à-vis a comparable quarter. The larger way that we have always looked at is in the context of the overall expense of management, which, as a company, as we keep saying, is something that we are very, very conscious of. Even if you look at it on a half yearly basis, I think our expense of management numbers are well within the limits of the 30% threshold that one has put out. Hence, in that context, I think we are pretty much on course in terms of what we want to do. At the end of the day, commission ratios, whichever way you look at it, will also be a function of what mix of business you end up doing, more in terms of new renewal. In the context of retail health that we spoke about, I think that's kind of doing well in terms of the overall loss experience. A large part of the book that we have sourced also comes in the context of new growth, and that would entail some amount of cost of sourcing. A lot of factors. If you ask us, I think what we are quite comfortable with is the fact that I spoke about in the context of making sure that we stay within the guardrail of within the 30% limit on overall expense of management. To your second point, is there. Any impact of GST ITC not available. Which is what I called out, I think at least so far as quarter two is concerned, which is why I kind of also responded to Prayesh's question. I think at this point of time, honestly the commission ratio does not have any factor, any significant impact at least insofar as the impact of GST is concerned. To the second point on the motor own damage loss ratios, I think this is something that I keep talking every quarter. I think we should keep looking at it. One is of course is quarter to quarter a right comparison. Honestly, as we keep saying there are various factors or nuances that go into the loss ratio numbers. Secondly, as we have always mentioned in the past, I think the better way to look at it is more in terms of motor as a category and that too more on ideally on a year to date basis. If you recollect, just to refresh, the overall motor loss ratio range that we have spoken about to the streets has been in the range of 65% to 67% and even if you look at the first half numbers for overall motor, I think the overall loss ratio stands at, if I remember the numbers correctly, it's about 66.6%. It's well within that range of 65% to 67% in terms of what we want to operate and hence. Yes, between periods there can always be, let's say, some bit of volatility to the overall loss numbers. Honestly, I think what we are again comfortable with is within the range that one is operating at and also. Madhuka, just to add to this for you and everybody else who are on the call, is also the configuration of business. If you see, relatively, if the new business is on the higher side, the loss ratios do tend to get lower, while the old one, the loss ratios are high. There's a mix that comes in, and you know that the growth, if we leave aside what happened prior to September 22, was very muted. We were seeing a lot more growth coming from the old vehicle where loss ratio can be a bit more elevated. There's an element also which gets played out, and there is also Q2, a little bit of CAD part that comes into play, which makes the loss ratios look elevated. There's a combination which has got us. We don't see any challenge. We continue to maintain our discipline, and we are excited about the fact that the industry may probably see record numbers in the coming quarter. Yeah, okay. Yeah. On the comparative intensity. Sorry to interrupt. Sorry to interrupt. May we request to return to the queue for follow-up questions, please, as there are several other participants waiting for their turn. Thank you. Our next question comes from the line of Sanket Koda from Aventus Park. Please go ahead. Thank you for the opportunity, Gopal. Given GST cut, IDV will come down. It is fair to assume that your motor OD loss ratios invariably will go up because of the vehicle GST cuts. Do you think the ROE depletion which could happen because of the higher loss ratios in motor OD can be more than compensated or at least compensated by the extra float either in the form of advanced premium or the premium you'll collect because of the new sales, because it will be good enough to see the positive rub off on the profitability? Related to that, on the TP side, given GST on CV has been reduced and you have input credit benefit, it is kind of a price hike to you guys. I am just wondering, given we were never such a strong player in the CV segment, and given we are seeing a bit of uptick in the CV segment in the second. Quarter compared to 1Q. Change a bit of strategy on CV going ahead or not. That's largely the question. I have on motor, please. Yeah, I think possibly Sanket, you actually answered what you wanted to ask. To that extent, I think pretty much what you kind of asked. I think on the motor own damage side, again, let's look at it in the context of what's happening on ground. I think there seems to be clearly a lot of festive cheer. There clearly is an element of pent-up demand and therefore pretty much similar to what I spoke in the context of health. I think what we are again, then this is there in terms of the data that was released by FADA, which is what we kind of also put out as a part of the opening transcript. Clearly, there seems to be renewed momentum on ground in terms of increased volume of vehicle sales. That's an area from an ICICI Lombard standpoint where we clearly have an edge. That's the reason why we specifically also called out to say that relative to what one had experienced in the first five months, when you look at particularly for the month of September, I think we have been able to get back a lot of our lost momentum. To that extent, I think we believe we are positively placed insofar as the opportunity for the future is concerned. On the impact on the possible deduction, of course, as we have again articulated as a responsible institution, we will obviously make sure that whatever is required to be passed on to the consumers in the form of the reforms that have been entailed is pretty much on course to make sure that all of those things will be completely passed on. That's what we have done. Of course, as you rightly said, there are those various factors depending on what volumes or what type of vehicles our customers are wanting to buy, which will be a factor to determine how some part of the impact will get paid out. Our own efficiency that we can bring about in the context of the business mix that we write will also be an element that will to some extent take care of some of the possible impact that one would see on the book, assuming we don't do anything on the drop in the value of the vehicle. Three is obviously again a function of the claim efficiencies. I think as an organization, we have time and again spoken about the various claim intervention initiatives that we have worked on, all of this, which is why we called out even at the time when these announcements were made, we had said that all said and done. I think from an ICICI Lombard standpoint, we should be able to kind of take some of these impacts within the overall scale of operations. The key thing to look out for will be how does things play out over the next couple of quarters, which is where we are kind of very, very positive and optimistic in terms of how do we see things playing out on ground. On the impact side, I think we think this is something that we should be able to kind of manage within the overall scale of operations. Got it, Gopal. Lastly, on data, keeping this reinsurance accepted business INR 462 crore, what we did in the second quarter or even a much bigger number in the first half, it is largely related to which line of business, and this number will continue even in the second half. Again, Sanket, this question just does keep coming to us at different time points. I think as what we have clearly maintained is pretty much similar to what we have kind of talked about in the context of crop. I think these are opportunistic. These are opportunistic calls that we take purely from an underwriting standpoint. Whatever fits within our underwriting acceptances criteria is what we end up writing, whether it is for direct or even for the matter of fact as reinsurance acceptances. Each of these, even if you look at it on a full year basis, for example, last year our overall proportion of reinsurance acceptances to the total volume of gross premiums that we would have underwritten as a company has been clearly a single digit number. When you start looking at some of these numbers, particularly vis-à-vis a quarter, there can always be aberrations when you start looking at it in the context of percentages. If you ask us from a thought process or let's say from a philosophy standpoint, purely guided by the underwriting filters that we kind of put in terms of risk acceptance, and do we expect each of these to suddenly become a very large proportion of our overall gross premium? The short answer is no. It will be well within the defined limits that we have as an institution. Got it. Gopal, thanks for the answers. Thanks, Ankit. Thank you. Our next question comes from the line of Nitesh from Investec. Please go ahead. Thanks for the opportunity. My question is on retail health insurance. Can you share loss ratios in? The retail health insurance and group health insurance for the quarter and second is what is the share of agency and non-agency channel in the retail health insurance. I'm trying to understand how we have. Been able to show pretty strong growth in retail health insurance over last one year. I was just waiting for this question to be asked in the context of the split between loss ratios on retail indemnity and let's say the corporate health. I'll just first give the numbers for quarter two last year and first I will give the group health or let's say the employer employee health numbers. Q2 last year employer employee or group health numbers was 98% on the loss ratio. This number for quarter two of the current year stands at about 93.7%. On a half yearly basis again employer employee loss ratio H1 last year that number was 98%. This number for H1 of the current year is at 94.6%. That's employer employee health. On retail indemnity, again in the same order, quarter two last year the loss ratio was 70.3% and H1 of last year was 71.4%. If you look at quarter two of the current year, the loss ratio on retail indemnity stands at 65.4% and on a half yearly basis it stands at about 69.7%. Now just to kind of again refresh on the retail indemnity book, pretty much similar to what I spoke about on overall motor where to the streets, we have been generally talking about a loss ratio range that you are comfortable at 65 to 67%. Even on retail health indemnity, the range that we have been speaking about is to maintain the loss ratio in the range of 65 to 70%. If you see on a half yearly basis on the retail health indemnity book, the loss ratio is within that range of 65 to 70%. That's where we are in terms of the split of the loss ratio numbers on the split of the business between agency and other than agency. Generally the proportion of the book that we do through agency is about two-thirds roughly and the rest of the book will be the balance one-third. Both channels are growing at a. Similar pace or agency has been relatively. Faster at this point of time. Both of them are in very high zone because the overall growth itself of the book is in the 50% range if you look at NBC. There's significant traction that we see and we are excited about both the opportunities, whether agency or non-agency. Sure, sure. Thank you. That's it from my side. Thanks Nitesh. Thank you. Our next question comes from the line of Avinash Singh from MK Global. Please go ahead. Hi, good evening. Thanks for the opportunity. Two questions. First, can you please sort of provide? Some color on your market share in motor in terms of new and renewal? I'm asking because if I understand correctly, your pricing is reasonably higher than aggressive competitors and you have a kind of a strong acceptance at the dealer points. In that context, I wanted to understand if there is a wide divergence in market share in the new vis-à-vis renewal market in motor. That's one. Second, now with this GST thing in action in terms of growth driver at the industry level, do you think industry at the aggregate level is going to return to a strong growth phase probably in the next year or so? In the recent year, motor vehicle sales have been one kind of pinpoint. You also had some of these schemes fading out. Of course, does not matter for you much, but like crop insurance and all that have been seeing a bit of a decline. At the aggregate level, what could. Be done in terms of value terms, premium driver for the industry probably in FY2027. Thanks. Avinash, honestly I think what we can talk about is more at an aggregate level in terms of motor as a category in terms of market share which is there. If you look at the first half of last year we had a market share of roughly about 10.9% and if you look at the first half of the current year we have a market share of roughly about 10.4%. This is both half year to half year. Within that, I think we keep kind of toggling between new and renewal. Honestly I think too difficult to kind of call out specifically what could be the market share because that could keep changing depending on what kind of a mix of the portfolio that one wants to kind of underwrite. That's the reason why we are specifically calling out in terms of what would be a market share between new and what would be a market share between the renewal book. To your second point on do we expect the demand on ground to sustain even for the next year? I think honestly we will obviously play through the quarters in terms of how one sees demand playing out, which is what we called out even on the opening transcript. The good part is I think the pace of reforms that has been exhibited across the various regulatory authorities I think has clearly set the tone on ground. That's also kind of reflective in terms of the outcomes that one has seen in the initial few days of let's say the quarter ended September. The good news is I think I'm sure all of you are also equally tracking in terms of what's happening on ground, particularly with respect to the volume of vehicle sales that's playing out at the initial indications. Even if one was to see in the months of October, I think the demand definitely is kind of continuing and therefore there is a clear expectation with some of these, some of these actions, reforms that has been exhibited, as I said, by the various regulatory authorities looks to be very, very kind of conducive for the momentum to kind of sustain over the next few quarters. Honestly we will keep coming back to all of you in terms of what do we see on ground across various quarters. At least clearly the as what one said, the tone that has been set clearly looks quite promising when you look at the road ahead. No, absolutely right. Even if you look at, in a bit of, you know, you get to the second layer of number, the total incremental accretion in motor has been around INR 3,300 crore, and you see the distribution of that pie, you realize that one PSU itself has ticked up more than INR 1,000 crore. It has been a very skewed one where things have moved not in a distributed manner. Whenever something like this is there, we will have to be very, very picky. We still continue to be number one player as far as motor category is concerned. We do acknowledge the fact that the loss of 0.5% is more tactical where we do believe if it's not making sense, we will let it pass. We also are aware that no one can keep doing something like this over sustained quarters after quarters. We need to be patient. Just to add on to the fact, clearly yes, new is a strength that we do see tremendous tailwind, and we spoke about it very categorically. Will that lead to motor industry per se showing a better growth? The belief and the answer is clearly we do believe so, but it has to pan out on a more consistent basis. The only element that we want to adjust at this point of time is there was a pent-up demand which also was there because post August 15 there wasn't much happening in the market. Our math says even adjusted to that, the hike band in the market is very high, and we will stay connected. I'm sure those numbers are which you all are very well aware of. We see a significant opportunity in quarter three and probably even H2 of this financial year, and this should augur well for the industry even for next financial year if that's what your question is. Thanks. Any view on motor TP tariffs? Your guess will be as good as ours. We keep hearing that something is on the anvil and the industry's demand per se on seeing some bit of a hike or adjustment or realignment of motor TP is there in every single forum, and we do expect and believe that we will hear a positive news on that sooner than later. Thank you. Thank you. Very clear. Thanks Abhinash. Thank you. Thank you. Our next question comes from Shreyash Ivani from Nomura. Please go ahead. Yeah, hi. Thank you for the opportunity. I just have one question. This is on the commercial segment. There have been many media articles, whether it be fire, marine, crop, there is increased competition in the segment. Now I understand that you guys are still growing quite well. However, if I look at your underwriting profit in the fire book 1H over 1H, it's down. The underwriting profit in the miscellaneous corporate book, it's turned loss making in this 1H versus previous 1H. Is it fair to assess that there has been some impact on our book because of the competition or the price war that's going on in the segment in spite of the growth that we've been delivering? That's the only question I have. Shreya, I think particularly on commercial lines, the portfolio inherently is subject to an element of volatility when you look at it purely from an absolute underwriting outcome. The reason why one is saying this is I think increasingly you are getting to experience a lot many more catastrophic events play out or as a matter of fact, even if you possibly experience any large risk event, then to that extent you may possibly see the outcome of the underwriting book kind of reflecting an outcome which for a particular given period could be adverse compared to any other relative reference quarters. Having said that, I think from our standpoint, which is what we have been talking through consistently, our approach or thought process to writing risk has been to kind of keep looking for prudent, profitable risk selection portfolio that's not just across commercial, even across other lines of businesses. That's the reason why I think at an aggregate level, in the initial few months we actually have been kind of losing again, some market. The good news is things seem to be kind of looking up quite positively for us when you see the month of September. Hence to that extent we continue to stay looking for profitable risk selection opportunities, outcomes on underwriting. Whether you take fire, whether you take miscellaneous corporate or for the matter of fact, anything from an absolute basis will be purely a reflection of some of the loss events that could have got played out in that particular quarter. The real reflection is, I think, as what we keep saying on the overall commercial lines book, I think that's a book that has inherently generated us good cash flows. It has also enabled us to kind of generate better ROEs. Overall the book that we have been writing has been a decent combined ratio outcome. That's something from a philosophy standpoint that we stand committed. As I said, in a given quarter or so from an absolute outcome will be purely a function of some of the loss events. What time period should I look if I want to understand the fire? Performance. Time period, I think submission of quarters which is there the past three years. Also, if you look at where the averages can give you a very decent indication in terms of where the loss ratio resides. A quarter to quarter movement, as Gopal explained, can be very dangerous to take a call. The long and short which we can put across very confidently is there was a cat event, there was one or two large losses which is kind of reflected. It can play out over a couple of quarters and you will see a moderation in the loss ratio overall in time to come. The best way to look at is dig in the past and see submission. If you look at last 16, 10 quarters, 12 quarters, how does the loss ratio moves? You will get a very clear indication that this is what broadly the range is in our mind. This is absolutely nothing. In fact, I can share with you that the rate which is there on the risk basis, we realized more than 20% than what we used to. I would also put across the fact that this was a lower base last year. If you see the commentary that we had on fire, the industry was not pricing it appropriately. Some bit of semblance has come and that has helped each of the industry players, including ourselves. What we pride is not on the incremental risk but the selection of risks that we want to write. That is what can be a big differentiator over submission of quarters. Got it. This is very useful. Thank you, and all the best. Thanks, Shreya. Thank you. Thank you. Our next question comes from the line of Neeraj Toshniwal from UPS Securities. Please go ahead. Hi everyone. I think a lot of debate has already happened on this. To get more sense on how should one think about, you know, second half in terms of growth and combine both, any color will be more helpful because definitely nine days have been positive. To get a sense of you. Because we will be obvious also in terms of one by N impact which started from last first October, which will also be a, you know, positive thing to support growth. How should one think about growth? Obviously, in terms of underwriting profits. Overall profits. Thanks, Neeraj. Finally, hopefully from next quarter onwards we don't have to really kind of talk about this. NN1 by N. Therefore, to that extent, I think for all of us, there will be one set of numbers that we will kind of start looking at it collectively. Having said that, if you look at the narrative that we have largely spoken nearest to all of you, I think on ground, which is what we kind of have been calling out, we are very, very excited and pleased with how some of the regulatory actions are getting translated in terms of reforms on ground. Hence, to that extent, from an ICICI Lombard standpoint, we are very, very well poised to capitalize this opportunity of growth across streams of businesses. To that extent, possibly the extent of market share loss that one had seen, particularly over the last couple of few quarters, one definitely expects that particular trend line to start getting reversed. To that extent, in line with what we have been saying, we should logically start getting incremental market share vis-à-vis the industry overall growth numbers. That's more from an overall growth standpoint. When it comes to more combined ratios, ROEs, both Sanjeev and all of us in general, what we have been talking about is to try and sustain that ROE in that range of 18 to 20%. Even if you look at it, whether you look at quarter two or even for the matter of fact, if you look at half year, we have largely been able to kind of stay around the range of 18 to 20% from an ROE. Therefore, even as we head into the second half, we will be extremely mindful of making sure that we are able to sustain this. All of this, we will obviously keep a very, very close watch in terms of how the industry is also kind of declaring their numbers. We do understand that some companies have started declaring results for quarter two and we will see the directional trend on how it plays out. From our standpoint, Sanjay, Sanjeev, if you want to add anything. I think we've spoken and this is well spoken. I think nothing more to add to this. Got it. Just one bookkeeping. What is the yield right now and the duration of the book and the long term portfolio now versus last year. The duration of the book is about 4.74 years, and yield on the book YTM is about 7.39%. On the long term portfolio, if we have that data handy, a long. Term portfolio, are you referring in the context of on the business side, yes. On end to one by n, I think that's the number that we have called out separately, Neeraj, in our investor deck. If you look at the total long term premium that could have got recognized as premium on a half yearly basis, it's roughly about INR 6.2 billion. For the quarter, that number stands at roughly about INR 3.6 billion. That is helpful. Thank you. Thanks, Neeraj. Thank you. Thank you. Ladies and gentlemen, we will take this as the last question for today. I now hand the conference over to the management for closing comments. Great. Thank you so much for joining in. We run into festivities going forward, so we would wish each one of you and your family members a great, safe, happy Diwali. These are exciting times for us as an industry. While there are some questions in terms of how it will evolve, we truly believe that directionally H2 would see far more tailwinds. We will stay connected. We look forward to meeting with each one of you as and when you are back with your respective holidays. Have a great time with your families and be safe, be happy. Thank you so much. Thank you. Thank you on behalf of ICICI Lombard General Insurance Company Limited. That concludes this conference. Thank you all for joining us. You may now disconnect your lines.